Converge maintains industry leading trifecta; profitability margins exceed expectations

Converge maintains industry leading trifecta:
consolidated revenues growth at 10.2%,
strong EBITDA margin of 60.4% and ROIC of 17.7%
FY2025 top-line growth within financial guidance;
profitability margins exceed expectations

 

FY2025 Key Highlights

• Converge registered consolidated revenues of P44.8Bn for FY2025, higher by 10.2%
  from last year
• FY2025 Residential revenues grew to P37.3Bn or 8.4% YoY growth
• Enterprise revenues reached P7.4Bn in 2025, a growth of 20.3% YoY
• EBITDA grew 10.0% to P27.0Bn with margin ending at 60.4% for FY2025
• FY2025 net income after tax increased by 9.6% from last year to reach P11.9 Bn
  representing net income margin of 26.5%
• Consolidated residential fiber net additions for the year reached a total of 428,417
• Maintained outstanding ROIC at 17.7% for FY2025

MANILA, Philippines, March 6, 2026

Resilient residential and enterprise divisions, maintaining strong growth

Topline growth remains within guidance 

Converge Information and Communications Technology Solutions, Inc. (PSE: CNVRG) (“Converge” or the “Company”) continued to deliver double-digit revenue growth in 2025, leading the industry. Consolidated revenues grew by 10.2% in FY2025 to P44.8Bn from P40.6Bn during the full year of 2024.

Residential business grew by 8.4% YoY to P37.3Bn. Converge ended 2025 with a total of 2,984,212 residential subscribers. In 2025, enterprise revenue grew by 20.3% to P7.4Bn from P6.2Bn in 2024. SME and Wholesale subsegments emerged with strong double digit revenue growth due to a larger customer base.

Industry-leading EBITDA margin and net income margin underscore disciplined cost control

EBITDA sustained a strong growth trajectory with industry-leading margins

The Company’s EBITDA grew by double-digits at 10.0% to P27.0Bn in 2025. Consolidated EBITDA margin was stable at 60.4% at the end of the year.

Net income after tax grew by 9.6% from P10.8Bn in 2024 to P11.9Bn in 2025, resulting in net income margin of 26.5% for 2025, versus 2024 net income margin of 26.6%. These operational and financial results underscore the resilience of the Company’s core operations and reinforce commitment to delivering consistent, long-term value.

Strong ROIC and Balance Sheet

The Company maintained its industry-leading Return on Invested Capital (“ROIC”) at 17.7%. This performance is a result of the Company’s disciplined approach in deploying capital to expand its fiber network and improve its overall services.

Converge has been able to maintain its strong balance sheet and cash flows with ample liquidity and gearing comfortably within bank covenants. The Company’s net debt position (as measured by total financial debt less cash and cash equivalents and short term cash placements) remains stable at P14.2Bn as of December 31, 2025. The Company repaid a portion of its financial debt, reducing the balance to P24.10Bn. The Company’s debt service coverage ratio (“DSCR”) was 3.5x, the net debt-to-total equity was at 0.2x, and gross debt-total equity was at 0.4x – well within the required financial covenants from its debt facilities.

Total cash CAPEX for 2025 amounted to P17.7Bn.

Converge awarded National Broadband Leader in the Philippines by DICT

Converge was declared as the Philippines’ National Broadband Leader for 2025, as it delivers the fastest average speeds, lowest latency, and most consistent performance among all providers evaluated by the Department of Information and Communications Technology (DICT).

According to the regulator’s analysis report, conducted through the national agency’s ‘Oplan Bantay Signal’ program, Converge achieved an overall average speed of 193.61 Mbps (taking into account both download and upload) in Metro Manila across nearly 700,000 speed tests conducted — “proving excellence at massive urban scale”.

DICT’s Oplan Bantay Signal (“Guard/Watch Signal Operations”) provides a comprehensive analysis of network performance data from across the nation. This report represents significant findings derived from extensive speed testing conducted to assess current network service quality and coverage effectiveness. The findings encompass critical metrics and performance indicators that have been carefully compiled through nationwide monitoring efforts.

Citing the crucial metrics for network performance, the report detailed Converge logged the best average download speed, the best upload speed (indicating symmetric performance excellence), as well as latency of 10.67 milliseconds which was noted as optimal for real-time applications.

“Beyond these metrics of upload and download speeds, we are actively improving our network for increased reliability and consistency in performance, at the same time as we work on enhancing connectivity in select parts of the country. We are looking at this from multiple perspectives, but definitely this is a badge of honor for us,” noted Converge Chief Operations Officer Benjamin Azada.

“DICT’s report gives a fair and balanced view; they also called our attention to specific areas where we need to improve our performance. We recognize this call and we pledge to focus our attention on these areas experiencing low or intermittent connectivity; yearly we allocate a budget not just for network expansion but also repair and recovery. We will put these investments to good use,” Azada continued.

Converge honored among PH’s best-governed listed firms, receives top Five Golden Arrow rating under the ASEAN Corporate Governance Scorecard

Converge has achieved the country’s highest distinction in corporate governance under the ASEAN Corporate Governance Scorecard (ACGS), as it received the top Five Golden Arrow rating on the latest review conducted by the Institute of Corporate Directors (ICD).

In the awarding ceremonies held last October 23, Converge Chairman Jose de Jesus said: “Converge is marking its fifth anniversary as a publicly listed company on October 26 and this award gives us more reason to celebrate. As our company evolves from being a telco to a technology company, we’ll remain steadfast in taking good care of the trust of our shareholders, our customers, our employees, our business partners, and the communities we serve. We believe that it is this trust that enables innovation to flourish and sustains our growth as a technology company.”

The latest ICD evaluation conducted last year showed that Converge exemplified excellent adherence to the principles and practices enshrined in the ACGS, which underscores accountability, fairness and transparency, among others, as key pillars of strong corporate governance.

The Five Golden Arrow rating is a leap from the Company’s Three-Arrow standing in 2023 and represents a significant milestone attained within just five years of its public listing — among the youngest publicly listed companies that have achieved this advanced rating.

“Corporate governance has been front and center of how we do business. Over the past few years, we have strived to align our practices with global benchmarks. We are honored to have received the top rating, a recognition we deeply value as a young company growing in this journey, and as we continue our commitment to upholding the highest ethical standards,” said Converge Co-Founder and President Maria Grace Uy.

FY2026 Guidance

With the Company’s trajectory and the industry’s broad underserved market, the Company’s well- engineered products are well-positioned to capitalize on this growth potential. The Company looks to grow consolidated revenues by 8% to 10% in 2026.

With various marketing and loyalty efforts and maintenance and repair costs expected in 2026, EBITDA margins are expected to settle at the 58% to 59% levels. Additionally, ROIC is expected to reach 15.5% to 16.5%. Cash CAPEX expectations may reach P18 to P23Bn. These costs include network expansion program of up to ~900,000 ports, most of which are targeted for new areas in Visayas and Mindanao, and CAPEX spending on improving network resilience and
reliability.

This press release may contain forward looking statements and information that are, by their nature, subject to significant risks, uncertainties, and assumptions. Many factors could make or cause the actual results, performance or achievements to be materially different from those expressed or implied in this release. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.