Swoop grows revenue 41% & boosts Melbourne fibre plan

Swoop has reported higher first-half revenue and is targeting margin gains and cost reductions as it expands fibre infrastructure in Melbourne.

The challenger telecoms provider posted revenue of AUD $64.1 million for the first half of FY26, up 41% year on year. Revenue from its Internet, Data and Mobile services rose 27% organically to AUD $56.1 million.

Underlying EBITDA was AUD $6.5 million. Swoop attributed the result to sales across its core NBN and mobile products and an increase in recurring revenue.

It also said its NBN market share has tripled over the past 12 months, but did not disclose a specific figure.

Chief executive Alex West said the period showed momentum in the company's approach to organic growth and operations.

"Our 41% revenue growth highlights the increasing demand for reliable internet and mobile services," West said.

"We have continued to deliver record sales across our core product suite while strengthening customer satisfaction and expanding our NBN market share. This reflects both the quality of our network and the strength of our operating model," he said.

Margin and costs

Swoop is targeting a gross margin uplift of between 5% and 10% across the business.

The plan combines technology investment and changes to supplier arrangements, including contract renegotiations and one-off investments in what it describes as key technology growth platforms.

Swoop expects the full benefit of its margin initiatives to be realised in FY27. The same timeline applies to a separate operating cost reduction programme.

The cost programme targets reductions of between 10% and 20% across multiple parts of the business. Swoop did not provide a category breakdown.

"These initiatives are designed to strengthen margins and position the business for enhanced profitability in FY27 and beyond," West said.

Funding position

Swoop ended the half with AUD $16 million in available funding as at 31 December 2025, including AUD $6.2 million in cash.

During the period, it divested its Vonex shareholding for AUD $6.2 million and completed a AUD $10 million entitlement offer in December 2025. That total includes AUD $0.7 million in commitments received after the balance date.

The funding update comes as Swoop continues its infrastructure build-out in Melbourne. It said its Melbourne Fibre Project is underpinned by around AUD $60 million in long-term contracts.

Melbourne fibre build

The Melbourne programme includes providing Swoop-owned fibre infrastructure to a Nasdaq-listed global technology company and other customers. Swoop did not name the technology company.

The build expands Swoop's footprint across what it describes as digital infrastructure zones in greater Melbourne. It presented the project as part of a broader push into owned network assets, alongside its fixed wireless and fibre infrastructure.

Swoop operates across data, mobile and voice services, selling to channel, business and residential customers. It positions itself as a challenger brand in the Australian market.

"With strong revenue momentum, disciplined cost management and continued investment in our fibre infrastructure, Swoop is well positioned for sustained growth," West said.

"Our focus remains on operational excellence, margin expansion and delivering long-term shareholder value, with FY27 expected to reflect the full benefits of the initiatives currently underway," he said.