Converge sustains growth: 3M residential customer mark breached

Converge sustains growth: 3M residential customer mark breached
Consolidated revenues growth at 3.7%
Strong EBITDA margin of 61.8%

Customer service and network performance metrics showed significant improvements

 

1Q2026 Key Highlights

• Converge registered consolidated revenues of P11.2Bn for 1Q2026, higher by 3.7% from 1Q2025
• 1Q2026 Residential revenues grew to P9.2Bn, reaching more than 3M subscribers
• Enterprise revenues reached P2.0Bn in 1Q2026, with new customer wins
• EBITDA grew 3.3% to P6.9Bn with margin ending at 61.8% for 1Q2026
• 1Q2026 net income after tax reached P3.0 Bn representing net income margin of 27.0%
• Consolidated residential fiber net additions for the quarter reached a total of 104,932
• ROIC reached 15.6% for 1Q2026

MANILA, Philippines, May 14, 2026

Resilient residential and enterprise businesses, maintaining growth

Robust revenue growth despite headwinds 

Converge Information and Communications Technology Solutions, Inc. (PSE: CNVRG) (“Converge” or the “Company”) continued to deliver robust growth in 1Q2026 with consolidated revenues rising by 3.7% to P11.2Bn in 1Q2026 from P10.8Bn during the first three months of 2025 as the impact of the Middle East crisis on operations remained manageable. 

Residential business grew to P9.2Bn during the three-month period with total subscribers reaching 3,089,144 at end-March this year.

“We celebrate this milestone of breaching the three million subscriber mark with our customers. This demonstrates our commitment to provide world-class connectivity to the broadest number of our people, especially those in the unserved and underserved communities,” said Converge CEO and Co-Founder Dennis Anthony Uy.

In 1Q2026, total enterprise revenues grew by 16% to P2.0Bn from P1.7Bn in 1Q2025. The Small and Medium Enterprise (SME) subsegment emerged with strong double digit revenue growth of 17% amid an expansion in its customer base.

Strong 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 3.3% to P6.9Bn in 1Q2026, leading to a consolidated EBITDA margin of 61.8% for the first three months of the year, stable compared to 62.0% during the same period last year.

Net income after tax reached P3.0Bn in 1Q2026, resulting in a net income margin of 27.0%, 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 15.6%. 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 P15.8Bn as of March 31, 2026, including the P7.0 billion additional loan drawn in March 2026. The Company’s debt service coverage ratio (“DSCR”) was 3.1x, the net debt-to-total equity was at 0.3x, and gross debt-total equity was at 0.5x – well within the required financial covenants from its debt facilities. 

Total cash CAPEX for 1Q2026 amounted to P2.9Bn.

Dividend paid amounting to P0.49 per share

In light of the Company’s strong performance for FY2025, the Company’s Board of Directors, at its meeting held last March 6, 2026, approved the declaration of regular cash dividends to give back to shareholders. The cash dividend of P0.49 per share was sourced from the unrestricted retained earnings of 2025 Audited Financial Statements.

Converge accelerates manpower hiring to improve customer services

Since late-2025, Converge has mounted weekly open houses, regional caravans, and academe- government-enterprise partnerships. This investment in network personnel is a testament to the Company’s goal of strengthening the resiliency of its infrastructure, ensuring sufficient manpower to handle repairs and maintenance of its network.

“We need to invest in people who run and maintain our fiber network. We don’t want to lose our Filipino talent, including these skilled technicians, to jobs abroad. With our hiring campaign, we hope to open up opportunities for our people and fill in this gap in human capital,” said Uy.

Converge has seen noticeable improvements in customer experience metrics compared to 4Q2025, such as lower average ticket times by 27%, faster resolution rates of service line repairs within one day by almost 20%, and average handling time of social media tickets by 42% in the first quarter. As Converge continues to expand its repair team headcount, the Company aims to further enhance customer satisfaction.

Converge’s newly built Data Centers complement its National Digital Infrastructure

The Converge National Digital Infrastructure encompasses its proprietary digital architecture, consisting of its extensive fiber backbone and satellite network, international subsea cable systems, cable landing stations, and scalable, future-ready data centers.

The Company has grown its data center footprint with the addition of two new advanced facilities — the Caloocan Data Center and its newly inaugurated Angeles Data Center. The Angeles Data 4 Center has officially finished construction and is ready to house critical infrastructure, both for Converge and onboarding enterprise customers.

Equipped with built-in redundancy for resilient operations, the world-class facility is configured to handle the country's data residency requirements, as well as high-performance computing workloads, especially for AI and machine learning.

Providing a solid foundation to all these services is the extensive and fully redundant nationwide fiber backbone of Converge, which is the youngest and one of the most advanced in the country, connecting its assets and enabling seamless and reliable services.

With these broader service capabilities, Converge is all set in scaling its services and fulfilling the digital requirements of customers from residential and enterprise segments, including the public sector.

Converge wins at Ookla® Speedtest Awards 

The Company was recognized for Fastest Fixed Network, Best Fixed Network, and Best Fixed Video Experience, underscoring its continued performance across key connectivity metrics during the second half of 2025. The awards are based on analysis by Ookla®, the global authority in broadband and mobile network testing. Drawing from millions of consumer-initiated tests conducted through Speedtest by Ookla®, the results reflect real-world internet experiences from users across the Philippines.

For Converge, these accolades include years of sustained investment in expanding and strengthening its nationwide fiber infrastructure to support the rapidly growing digital needs of Filipino households and businesses.

Among this year’s recognitions, Converge earned the Fastest Fixed Network award after recording a Speed ScoreTM of 61.12, the highest among fixed internet providers in the Philippines according to Ookla®. The result highlights the company’s ability to deliver consistent fiber-fast connectivity across its expanding national footprint.

The Company also secured the Best Fixed Network award, supported by a Speedtest Connectivity ScoreTM of 75.09, reflecting strong overall performance across reliability, speed, responsiveness, and network stability.

For digital entertainment, Converge earned the Best Video Experience award with a Video ScoreTM of 83.73, demonstrating its capability to deliver smooth, high-quality streaming experiences even during peak usage periods.

Completing the recognition is the Lowest Latency Claim award, where Converge recorded a Latency ScoreTM of 13.94, highlighting the network’s responsiveness in supporting real-time applications such as online gaming, video conferencing, and cloud-based services.

As demand for faster and more reliable connectivity continues to grow, Converge remains focused on expanding its fiber footprint and enhancing network capabilities to support the evolving digital lifestyles of Filipinos.

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.