Interim Results

17 March 2026

Fonix plc

("Fonix", the "Group", or the "Company")

Interim Results for the six months ended 31 December 2025

Strong H1 performance with continued delivery of innovation and European expansion

Fonix, the UK focused mobile payments and messaging company, is pleased to announce its unaudited interim results for the six months to 31 December 2025 (the "Period").

Financial Highlights

Operational Highlights

· International expansion:

○ In Portugal, engagement with additional major broadcasters is progressing well, reflecting growing momentum in the market. Fonix launched services in the country in late September with a leading national broadcaster, and the launch has delivered encouraging early traction, supported by Fonix's sector expertise and solutions tailored to local market dynamics. Portugal represents Fonix's second European market launch, following its successful expansion into Ireland.

○ A pilot of interactive services is now live with a leading broadcaster in a third European market, representing the first offering of its kind in that country. The pilot remains at an early stage, and the Board will provide a further update as it progresses and additional data becomes available.

○ Fonix has commenced expansion into a fourth European market, a large and well-established territory with a mature interactive services ecosystem and significant scale potential. During the period, the Group established a local presence, incorporating a legal entity and appointing its first in-country hire, alongside the addition of further industry and market expertise within the wider Group to support market entry and customer engagement. Engagements with major mobile network operators and leading broadcasters are progressing positively, with service launch targeted for FY27.

· Product progress:

○ Campaign Manager: A number of infrastructure enhancements were delivered during the period, including upgrades to the Winner Picker functionality to manage increased peak-time volumes, support for additional time zones to facilitate international expansion, and broader code base improvements to enhance resilience, scalability and long-term maintainability.

○ PayFlex expansion: PayFlex is now live with our first Irish broadcaster, alongside two existing UK broadcaster deployments. Subject to local regulatory requirements, the Group intends to roll out PayFlex progressively across its SMS billing customer base.

○ CompsPortal: The first customer launch was successfully completed in December 2025, with encouraging early levels of user engagement. During the period, the Group continued to enhance product capabilities, improving integration, performance and the overall customer experience. Further customer deployments are expected as the product continues to develop.

○ RichMessaging: a second successful pilot of RCS messaging was delivered with a leading UK broadcaster during the period. Building on this progress, a broader expanded trial is now underway to further validate use cases and commercial potential.

· ITV has extended its contract with Fonix for live broadcast interactivity services, with the partnership now entering its tenth year.

· Fonix continues to maintain a high level of client retention, with over 99% of income of a repeating nature.

· 100% platform uptime throughout the Period.

· Fonix's key service lines have each grown in the Period and the business retains a significant pipeline of enterprise prospects going into H2 FY25.

· Increased interim dividend of 3.1p (FY25: 2.9p) per share, in line with the Group's progressive dividend policy to pay out at least 75% of adjusted EPS.

Outlook

Fonix enters the second half of FY26 with continued positive momentum across its core UK and Ireland markets and encouraging progress internationally. All key service lines have grown in the period and the business retains a strong pipeline of enterprise opportunities.

Portugal continues to develop well, with engagement progressing with additional broadcasters. The pilot in a third overseas European market is underway, while foundational work in a fourth territory is advancing, with operator engagement and regulatory processes progressing and launch targeted for early FY27.

Product innovation remains central to the Group's strategy. PayFlex is contributing to gross profit growth, CompsPortal development continues and expanded RichMessaging trials are in progress as these capabilities are integrated into a unified product roadmap.

While the Board remains mindful of UK tax changes affecting certain gaming operators, the sector represents less than 6% of Group gross profit. A number of operators are expected to continue operating and adapt their models, with volumes historically consolidating among remaining providers. The Group's diverse geographical footprint, broad customer base and high levels of recurring income provide resilience, and any downside impact is expected to be absorbed within the broader growth trajectory of the business.

The Board remains confident in the Group's strategy and its ability to deliver sustainable gross profit growth and long-term value for shareholders in line with market expectations.

Notes

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

2 Adjusted PBT is profit before tax excluding share-based payment charges and R&D tax credits.

3 Adjusted EPS is earnings per share excluding share-based payment charges.

4 Underlying cash is actual cash excluding cash held on behalf of customers.

Rob Weisz, CEO, commented:

"We have delivered a strong first half, with gross profit up 7.1% and continued momentum across both the UK and our international markets. Growth has been supported by ongoing product innovation, format evolution among customers and the strength of our long-standing partnerships, resulting in all key service lines expanding during the period.

International expansion is progressing well, with Portugal gaining traction and further European markets advancing in line with our strategy. At the same time, PayFlex, CompsPortal and RichMessaging are enhancing our product capability and supporting sustainable gross profit growth as we integrate these solutions into a unified roadmap. With a strong pipeline, high levels of recurring income and a highly reliable platform, the Board remains confident in meeting expectations for the full year and in the Group's long-term growth strategy.

We are also conscious of the rapid development of artificial intelligence technologies and the potential implications for software-led businesses. Fonix's platform is not a traditional SaaS model but operates as a specialist mobile payments intermediary embedded within mobile network operator infrastructure and long-standing broadcaster ecosystems. These operator integrations, regulatory frameworks and commercial relationships create significant structural barriers to entry around our core platform. At the same time, we are actively leveraging emerging AI capabilities within our own development and operational processes to enhance product functionality, optimise campaign performance and improve customer outcomes."

Enquiries

Fonix plc Tel: +44 20 8114 7000

Robert Weisz, CEO

Michael Foulkes, CFOO

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.

CEO's review

The first half of the financial year has been one of strong operational and financial progress for the Group. We have delivered robust growth in our core UK and Ireland markets, continued to execute against our international expansion strategy, and made significant advances in product innovation that strengthen our long-term competitive positioning.

Performance in the period demonstrates the continued strength of our core markets, supported by new product initiatives, format evolution among our customers and sustained consumer engagement.

At the same time, we have laid important foundations for our next phase of European expansion and continued to invest in the people, infrastructure and technology required to support sustainable long-term returns for shareholders.

The Board is mindful of the wider geopolitical environment and the potential inflationary pressures that have affected many sectors in recent years. However, the Group's business model has limited direct exposure to energy or commodity costs and operates primarily through low-value consumer transactions embedded within media and entertainment formats. Historically these formats have demonstrated resilience across economic cycles, supported by their broad consumer appeal and the relatively small individual transaction values involved. As a result, the Board believes the Group remains well positioned to navigate periods of macroeconomic uncertainty.

Growth pillars

To align with our evolving priorities, we have refined our growth strategy to three key pillars:

1. Driving revenue growth through technological innovation

Innovation remains at the core of our strategy and continues to underpin both growth and resilience.

PayFlex rollout The Group's PayFlex product has now been rolled out across a significant proportion of our portfolio and is making a meaningful contribution to gross profit growth. As a differentiated capability combining traditional SMS billing flows and real-time online payments within live campaign environments, PayFlex is delivering high and increasing conversion rates on eligible transactions. In the medium term, we believe PayFlex will increase customers' transaction volumes by up to 2-3%, further strengthening our defensive market position.

CompsPortal launch In December, we launched our first CompsPortal customer with a major UK TV broadcaster. Early consumer engagement and conversion metrics have been very encouraging. We are continuing to enhance the feature set and broaden the available payment options, further optimising the user journey.

RichMessaging (RCS) trials Alongside PayFlex and CompsPortal, we have undertaken a series of RichMessaging (RCS) marketing trials, embedding rich, conversational messaging experiences into Fonix's campaign management processes to support live broadcast interactive services. The results have shown high levels of consumer engagement and strong conversion performance.

We can already reach approximately 75% of UK users through RCS messaging. We are now progressing extended trials with a broader group of customers and evolving the product to address a wider range of user journeys.

2. Client and sector led international expansion

International expansion remains a key growth pillar, and we have made substantial progress during the period.

Portugal - second overseas European market We launched into the Portuguese market in late September and have seen strong early growth. We are currently working with a large national radio broadcaster introduced through an existing UK and Ireland client relationship, demonstrating the power of our client-led expansion model.

The broader opportunity in Portugal is significant. Several leading TV and radio broadcasters currently operate competition services solely through premium rate telephone numbers and do not yet offer SMS or RCS entry mechanics. This mirrors the historical structure of the UK and Ireland broadcast competitions markets prior to the introduction of SMS.

We have a meaningful pipeline of broadcaster prospects in Portugal and believe the market has the potential to develop into a territory comparable in scale to Ireland over time.

Third overseas European market - pilot launch At the end of February, we launched a pilot competition across a small number of radio stations within a major broadcaster group in a third European market. Interactive services are relatively new in this territory and the pilot has been intentionally limited in scope. While it is too early to assess the pace of development, the broadcaster has a significant national footprint and, with effective execution, we believe the long-term opportunity could be material.

Fourth overseas European market - strategic investment phase In parallel, we have begun a significant investment into a fourth European market with a large but currently underserved broadcaster interactivity sector. We believe this market has the potential, over time, to be comparable in scale to the UK.

During the period, we established a formal legal entity, made our first in-country hire, and are progressing operator contracts and regulatory licence approvals. We have also strengthened our wider Group capability by bringing in industry expertise with deep knowledge of this territory, which we expect will materially enhance our market entry strategy.

3. Create sustainable, long-term profitability for shareholders

The Group delivered strong gross profit growth in the period, supported by continued momentum in the UK and Ireland. Performance in our core markets has been driven by a combination of factors, including the contribution from new product lines, format changes that have increased addressable audience sizes, larger prize funds, organic growth among existing customers and the introduction of higher baseline entry price points by certain customers. Together, these drivers reinforce the structural quality of our earnings and support continued sustainable gross profit generation.

We were also pleased to have extended our contract with ITV. Our relationship began in 2017 with carrier billing services, expanded in 2018 with charity services including Soccer Aid, and further evolved in 2023 with the addition of premium SMS services under our main commercial contract. The latest extension will see our partnership approach a decade in duration and enter its fourth year of delivering all key live broadcast interactive services for ITV. Long-standing relationships of this nature demonstrate the strategic importance of our services and provide strong visibility of future earnings.

We have seen a small number of gambling customers cease services in advance of changes to the UK tax regime due in April 2026. Gambling now represents less than 6% of Group gross profit and we therefore expect the impact to be manageable. Historically, when operators exit the market, a proportion of transaction volumes migrate to remaining providers, and we would expect to see some reallocation of carrier billing traffic over time.

People

Our progress is underpinned by the quality and commitment of our people.

During the period, we made our first in-country hire in our fourth European market and added wider industry expertise with significant knowledge of that territory to the Group. These hires strengthen both local execution capability and strategic oversight as we expand internationally.

We continue to invest selectively in product, technology and commercial talent to ensure we have the depth and experience required to support increasing geographic scale and product sophistication.

Financial Review

Key performance indicators

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

2 Adjusted PBT is profit before tax excluding share-based payment charges and R&D tax credits.

3 Underlying cash is actual cash excluding cash held on behalf of customers.

4 Adjusted EPS is earnings per share excluding share-based payment charges.

Gross Profit

Gross profit is the business' most important financial indicator as this represents the Group's share of revenue for processing mobile payments and SMS messages.

Gross profit for the period increased to £10.5m (H1 FY25: £9.8m) growing 7.1% on the previous period. This was driven by 6% growth in mobile payments, 20% growth in mobile messaging, and 1% growth in managed services. Geographically, gross profit grew by 6% in the UK and 24% across the rest of Europe, with strong growth in Ireland alongside new services in Portugal. The more modest growth in managed services reflects the absence of significant new charity campaign launches in the period, as the Group's current international and product strategy is primarily focused on scaling broadcaster and media sector opportunities.

Growth in the mobile messaging business line reflects increased demand from enterprise messaging customers leveraging the Group's robust and reliable UK mobile network operator connections to deliver high-volume communications to UK consumers on behalf of their own corporate clients. In addition, demand from media customers increased during the period, driven by higher campaign volumes and continued adoption of messaging as a core engagement channel.

The Directors therefore monitor results and performance of the Group based upon the gross profit generated, which is considered the more meaningful measure of performance than revenue.

Revenue for the period grew by 9% to £42.3m (H1 FY25: £38.8m), slightly outgrowing gross profits growth due to changes in the customer and product mix.

As a result of the change in the revenue mix, blended gross profit margins decreased slightly to 24.9% (H1 FY25: 25.2%).

Total payment volumes (TPV) increased to £160m (H1 FY25: £150m), mirroring aggregate growth in the company's mobile payments business line.

Adjusted Operating Expenses

Operating costs have increased in the period where the business has made additional strategic investments in product and internationally focused resources. Adjusted operating costs increased 16% in the period to £2.27m (H1 FY25: £1.95m). The increase largely relates to additional staff costs, hosted IT infrastructure and external legal fees. Costs include £0.1m of exceptional legal and consultancy costs associated with preparations for future international expansion, which have not been added back.

Staff related costs and incentives increased to £2.5m (H1 FY25: £2.1m) in the period reflecting the additional investment in product and exploring international markets. Average headcount for the period was 57 (H1 FY25: 50).

Software development costs of £717k (H1 FY25: £600k) were capitalised in the period, representing 64% (H1 FY25: 66%) of development costs. The modest reduction in the capitalisation rate reflects a slightly greater emphasis on UX and performance enhancements in the current period. The capitalisation of current period development spend was offset by an amortisation charge of £525k (H1 FY25: £412k). Development costs are amortised on a straight-line basis over 3-years.

Adjusted EBITDA

The growth in gross profit and the continued control of costs has resulted in an equivalent increase in adjusted EBITDA, which is up 6.4% at £8.3m (H1 FY25: £7.8m) for the period. To provide a better guide to the underlying business performance, adjusted EBITDA excludes share-based payment charges along with depreciation, amortisation, interest, R&D tax credits and tax from the measure of profit.

Finance income and expenses

Finance expenses which relate to the unwinding of the discounted lease liability were £6k (H1 FY25: £12k).

Interest income on bank deposits fell due to the decrease in base interest rates.

Corporation tax

The Group's effective corporation tax rate increased modestly during the period, primarily driven by changes in the geographical mix of profits subject to differing local tax rates. The rate was also impacted by non-deductible legal and professional costs incurred in relation to the Group's expansion into new international markets. In addition, R&D tax credit claims were lower year-on-year following changes to the UK R&D tax framework, including the restriction on relief for certain overseas development activities, which has reduced the level of qualifying expenditure recognised in the period.

Adjusted earnings

Whilst adjusted EBITDA increased by 6.4% year-on-year, adjusted earnings per share rose only marginally, reflecting lower interest income, higher amortisation associated with increased capitalised software investment over the past three years and a modest rise in the effective corporation tax rate.

Statement of Financial Position

The Group had net assets of £10.9m at the period end (H1 FY25: £11.2m), including capitalised software development costs with a carrying value of £2.2m (H1 FY25: £1.8m). The movement in net assets reflects profits after tax less dividend payments and small movements related to employee share options exercised.

The Group pays out monies to customers (merchants) once reconciliations have been completed and the equivalent monies have been received from mobile network operators. As a result, the Group often holds significant amounts of customer related receivables, payables and cash, which can vary substantially from period to period, depending on timing of customer campaigns and mobile operator outpayments.

Current assets at the period end totalled £79.9m (H1 HY25: 73.2m). Trade and Other Receivables, which include amounts receivable on behalf of customers, increased during the period, primarily reflecting higher trading volumes year-on-year in the final months of the period.

Current liabilities increased to £71.1m (H1 FY25: £63.7m) primarily driven by higher trading volumes year-on-year in the final months of the period.

Non-current liabilities remained largely unchanged at £0.3m (H1 FY25: £0.3m).

Cash and underlying cash

The board distinguishes between actual cash, which includes cash held on behalf of customers, and underlying cash, which excludes cash held on behalf of customers.

Underlying cash far better represents the free cash flow available to the business. Underlying cash decreased to £9.2m (H1 FY25: £11.0m), primarily reflecting additional shareholder distributions in the current period, together with a £3m special dividend paid in H2 FY25.

Actual cash, which includes cash held on behalf of customers, varies substantially from period to period and is particularly sensitive to the timing of mobile network operator payments at month end, as well as pass-through outpayments for customer charity campaigns. Actual cash held at the period end was £27.1m (H1 FY25: £25.0m) in the period, primarily reflecting higher customer monies held as a result of increased trading volumes year-on-year in the final months of the period.

Dividend declaration

We are pleased to declare our increased interim dividend of 3.1p per share, in line with the Group's progressive dividend policy to pay out at least 75% of adjusted EPS to shareholders in the form of an ordinary dividend each period. The interim dividend will be paid on 2 April 2026 to shareholders on the register on 27 March 2026 (record date), with an ex-dividend date of 26 March 2026.

Outlook

Fonix enters the second half of FY26 with continued positive momentum across its core UK and Ireland markets and encouraging progress internationally. All key service lines have grown in the period and the business retains a strong pipeline of enterprise opportunities.

Portugal continues to develop well, with engagement progressing with additional broadcasters. The pilot in our third European market is underway, while foundational work in our fourth territory is advancing, with operator engagement and regulatory processes progressing and launch targeted for FY27.

Product innovation remains central to our strategy. PayFlex is contributing to gross profit growth, CompsPortal development continues and expanded RichMessaging trials are in progress as we integrate these capabilities into a unified product roadmap.

The Board remains confident in the Group's strategy and its ability to deliver sustainable gross profit growth and long-term value for shareholders.

Robert Weisz

Chief Executive Officer

Unaudited interim results for the 6 months ended 31 December 2025

Consolidated Statement of Comprehensive Income

For the 6 months ended 31 December 2025

1 Adjusted operating expenses excludes share-based payment charge, depreciation and amortisation

Consolidated Statement of Financial Position

As at 31 December 2025

Consolidated Statement of Changes in Equity

For the 6 months ended 31 December 2025

Consolidated Statement of Cash Flows

For the 6 months ended 31 December 2025

Statement of Underlying Cash Flows

For the 6 months ended 31 December 2025

The Group's mobile payments segment involves collecting cash on behalf of clients which is then paid to clients net of the Group's share of revenues or fees associated with collecting the cash. The Group's cash balance therefore fluctuates depending on the timing of "pass through" cash received and paid.

The analysis below shows the movements in the Group's underlying cash flow excluding the monies held on behalf of customers. The underlying cash is derived from actual cash by adjusting for customer related trade and other receivables less customer related trade and other payables and customer related VAT liabilities.

Notes to the preliminary financial information

1. Basis of preparation

The financial information relating to the half year ended 31 December 2025 is unaudited and does not constitute statutory financial statements as defined in section 434 of the Companies Act 2006. It incorporates the results of the Company and its subsidiaries (together, the "Group").

The Company is a public limited company incorporated and domiciled in England & Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange. The subsidiaries were incorporated during the period and are consolidated from the date on which control was obtained by the Group. As a result, the interim financial information has been prepared on a consolidated basis for the first time. The presentational currency of the Group is Sterling. Results in this financial information have been prepared to the nearest £1,000.

Whilst the financial information included in these interim accounts has been prepared in accordance with IFRS, they do not contain sufficient information to comply with IFRS. In addition, this report is not prepared in accordance with IAS 34.

The Profit before interest, tax, depreciation, amortisation, share-based payment charge and exceptional costs is presented in the statement of total comprehensive income as the Directors consider this performance measure provides a more accurate indication of the underlying performance of the Group and is commonly used by City analysts and investors.

The comparative financial information for the year ended 30 June 2025 has been extracted from the annual financial statements of Fonix plc. These interim results for the period ended 31 December 2025, which are not audited, do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial information does not therefore include all of the information and disclosures required in the annual financial statements.

Full audited accounts of the Group in respect of the year ended 30 June 2025, which received an unqualified audit opinion and did not contain a statement under section 498(2) or (3) of the Companies Act 2006, have been delivered to the Registrar of Companies.

2. Going concern

At the time of approving the financial information, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Fonix is not externally funded and accordingly is not affected by borrowing covenants. In addition the cost of capital represents the dividend distributions and share buy-backs, which are discretionary.

At 31 December 2025 the Group had Cash and Cash Equivalents of £27.1 million (31 December 2024: £25.0 million) and Net Current Assets of £8.8 million (31 December 2024: £9.5 million). The business model of Fonix is cash generative, with increased sales impacting positively on the working capital cycle and profits from trading activities being rapidly reflected in cash at bank.

Accordingly the Directors continue to adopt the going concern basis of accounting in preparing this financial information.

3. Segmental reporting

Management currently identifies one operating segment in the Group under IFRS 8 - being the facilitating of mobile payments and messaging. However, the Directors monitor results and performance based upon the Gross Profit generated from the Service lines as follows:

Differences between the way in which the single operating segment is reported in the financial information and the internal reporting to the Board for monitoring and strategic decisions, relates to the recording of revenue in line with IFRS 15. The IFRS adjustments do not impact on the calculation or reporting of Gross Profit.

Gross profits can be attributed to the following geographical locations, based on the end user and the associated mobile network operators' location:

4. Revenue

The Group disaggregates revenue between the different streams outlined as this is intended to show its nature and amount.

The total revenue of the Group has been derived from its principal activity undertaken wholly in the United Kingdom and EU.

Revenue is recognised at the point in time of each transaction when the economic benefit is received. The total revenue of the Group by Service Line is as follows:

The number of customers representing more than 10% of revenue or gross profit in period were 3 (31 December 2024: 3)

Revenues can be attributed to the following geographical locations, based on the end user and the associated mobile network operators' location:

5. Earnings per share

The calculations of earnings per share are based on the following profits and number of shares:

At 31 December 2025 the Group had 100,000,000 (31 December 2024: 100,000,000) shares in issue of which 896,335 (31 December 2024: 924,472) were held in treasury.

The calculations of adjusted earnings per share are based on the following adjusted profits and number of shares listed above: