Superloop (ASX:SLC) Share Price Cools As Profit Surge Meets Rich P E

Superloop stock closed at A$3.06 on 21 August, capping a weak three month stretch with the price down about 13% over 90 days. The market has been cooling on the story just as the company has delivered a clean profit and cash flow step up.

The headline from these FY26 results is simple. Superloop is now a profitable, cash generative telco with A$664.3m in revenue and A$17.5m in net income over the last year. However, it still trades on a rich trailing P/E of about 89.9x. Short term price softness sits against an earnings profile that now needs multi year proof.

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FY 2026 Earnings Summary

• Revenue (FY 2026 vs. FY 2025 TTM): A$664.3m vs. A$546.5m (up about 21.6% year on year)
• Net Income (FY 2026 vs. FY 2025 TTM): A$17.5m vs. A$1.2m (a substantial year on year increase from a low base)
• Basic EPS (FY 2026 vs. FY 2025 TTM): A$0.0341 vs. A$0.0024 (a substantial year on year increase per share)
• Gross Margin (FY 2026 vs. FY 2025): 35.3% vs. 34.7% (a modest margin uplift alongside revenue growth)

Prefer clean visual charts instead of dense tables of numbers? See Superloop’s full financial picture with a clear view of its latest valuation setup in the company report for Superloop.

Superloop bull case powered by earnings milestones

Bulls argue Superloop is now a scaled fibre owner with repeatable earnings rather than a speculative telco. FY26 goes a long way to backing that up. Revenue of A$664.3m, underlying EBITDA of A$123m and NPAT of A$17.5m all align with the “Double Down” plan targets for higher revenue, better margins and positive profit. Free cash flow of A$84.4m, roughly 50% higher than last year, and capex at about 5.7% of revenue support the claim that the model is less capital hungry. Customer adds of 205,000, including a record 116,000 in consumer, and NBN share of about 8.5% show the broadband growth story is tracking. Wholesale gross margin around 69% and Smart Communities gross margins of 70% to 75% reinforce the thesis that owning fibre infrastructure can support healthy economics.

Bear case on expectations, competition and integration

Bears worry that Superloop’s growth story is tightly tied to ambitious targets, competitive broadband pricing and clean M&A execution. The new “SuperCharge29” plan, which sets goals of more than A$1b revenue, more than A$200m EBITDA and a 3 year EPS compound annual growth rate above 30%, raises the execution bar. Any slip in customer additions or margins would matter more now, especially with recent share price softness and returns down about 13% over 90 days. Consumer margins were diluted in the second half due to heavy promotional activity and industry wide fee changes, which shows how pricing tactics can pressure profitability even when revenue is rising. The Lynham Networks deal adds 56,000 contracted lots and expected EBITDA, but still needs integration and delivery of planned synergies, so M&A risk has not cleared.

See how Superloop’s shift to higher margin fibre, heavier broadband customer growth and fresh SuperCharge29 targets line up with what the street is expecting by checking the consensus price target analysis for Superloop.

Own Your Next Investing Edge

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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