Trading Update

Fonix plc

("Fonix" or the "Company")

Trading Update

Strong growth across the UK and internationally

Fonix plc, the mobile payments and messaging provider, is pleased to provide an update on trading for the 6 months ended 31 December 2025 (the "Period").

Financial highlights:

●     Gross profit and adjusted EBITDA¹ in H1 FY26 have grown in line with management's expectations.

●     Gross profit for the Period increased by 7.1% to £10.5m (H1 FY25: £9.8m).

●     Adjusted EBITDA¹ grew by 6.4% to £8.3m (H1 FY25: £7.8m). Costs include £0.1m of exceptional legal and consultancy costs associated with preparations for future international expansion, which have not been added back.

●     Fonix intends to pay an increased interim dividend in March 2026, in line with the Company's progressive dividend policy to pay out at least 75% of adjusted earnings per share.

Operating highlights:

●     International expansion:

○     In Portugal, Fonix launched full commercial services in late September with a leading broadcaster. The services are scaling well, supported by Fonix's sector expertise and tailored to local market dynamics, and discussions with other leading broadcasters are progressing strongly. Portugal is the second overseas European market after Ireland, in which Fonix has launched.

○     Connectivity with all mobile networks in a new third overseas European market is now complete. A three-month pilot of interactive services is scheduled to launch in H2 FY26 with a leading broadcaster - the first offering of its kind in this country.

○     A legal entity has been established and the first local hire completed in a fourth overseas European market. Engagements with mobile network operators and leading broadcasters are progressing well, with services expected to launch in FY27.

●     Product progress:

○     PayFlex expansion: Expanded rollout across all brands of two leading UK radio broadcasters during Q2. The first Irish customer is expected to roll out PayFlex in Q3.

○     CompsPortal: First customer launch completed in December 2025, with a strong pipeline of further prospective customers.

○     RichMessaging: successful pilot of RCS messaging with a leading UK broadcaster.

●     Total payment volume ("TPV") of mobile payments in the Period was up 7% to £160m (H1 FY25: £150m).

●     100% platform uptime throughout the Period.

●     Fonix's key business segments of payments and messaging have both grown in the Period and the business retains a growing pipeline of client prospects going into H2 FY26.²

Outlook:

Fonix enters the second half of FY26 with positive trading momentum and the strongest trading run-rate to date from its existing client base, alongside excellent progress in international markets.

Portugal continues to gain momentum following the successful commercial launch in September, with a growing pipeline of opportunities across additional media broadcasters. The Company is targeting the launch with at least one further customer during the current financial year, although timing remains dependent on client scheduling priorities.

Beyond Portugal, the Company has a strong pipeline of opportunities in other international markets, which the Board expects to begin contributing strongly to growth from FY27.

In the UK, the Board notes that it has not yet seen any negative impact from the Government's scheduled tax changes imposed on gaming operators, which now represent less than 7% of total gross profit, although some customers have commented on the potential adverse impact on their UK offerings.

In parallel, the Company has a growing pipeline of opportunities across its new product innovations, particularly in the UK, as it continues to extend its capabilities beyond traditional SMS into multi-channel interactivity and seamless payment experiences.

Rob Weisz, CEO, commented:

"We've had a strong first half, with trading momentum building across both the UK and international markets. Entering the second half of the year with the strongest UK trading run-rate in the Company's history we continue to demonstrate our ability to nurture growth from existing customers through a combination of ongoing product innovation and consultative partnership as well as a focus on our new business lines.

"Our international expansion is gaining traction, with Portugal scaling well and further European opportunities progressing. At the same time, continued innovation across our product portfolio is opening up new use cases and supporting higher revenue per end consumer. With a growing pipeline and a highly reliable platform, Fonix is well positioned for the next phase of growth and the Board remains confident in meeting expectations for the full year."

Notes:

All financials based on unaudited figures.

¹ Adjusted EBITDA excludes share-based payment charges along with depreciation, amortisation, interest, research and development tax credits and tax from the measure of profit.

² All financial numbers contained within this announcement are unaudited.

Enquiries

Fonix  plc                                                                                                                        Tel: +44 20 8114 7007

Robert Weisz, CEO

Michael Foulkes, CFO

Cavendish Capital Markets Limited (Nomad and Broker)              Tel: +44 20 7220 0500

Jonny Franklin-Adams / Seamus Fricker (Corporate Finance)

Sunila de Silva/ Harriet Ward (ECM)

About Fonix

Founded in 2006, Fonix is a leading provider of mobile payments and messaging solutions, enabling businesses to connect, engage, and transact seamlessly through mobile technology.

Fonix helps organisations across media, charity, entertainment, and enterprise sectors drive revenue and enhance audience engagement.

Headquartered in London, Fonix is a fast-growing, innovation-driven company, trusted by industry leaders such as ITV, Bauer Media, RTÉ, Global, Comic Relief, and BBC Children in Need. With a strong focus on technology and consumer experience, Fonix continues to shape the future of mobile payments and interactivity.