Superloop Ltd. (SLC) AI Stock Analysis

• Market Cap: €1.52B
• Dividend Yield: N/A
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): 107.3
• Beta (1Y): 1.01
• Revenue Growth: 31.16%
• EPS Growth: N/A
• Country: AU
• Employees: 800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.04
• Shares Outstanding: 514,713,870
• 10 Day Avg. Volume: 1,704,352
• 30 Day Avg. Volume: 2,820,046
• PEG Ratio: -12.14
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 2.89
• P/FCF Ratio: 25.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €3.53
• Price Target Upside: 19.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): €661.18M

• Rating: 64 Neutral
• Price Target: AU$3.00 ▲(1.69% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is primarily supported by improving fundamentals (strong cash flow growth, solid revenue growth, and a stable low-leverage balance sheet). This is offset by very low current profitability and a high P/E valuation, while technicals show an uptrend but with overbought signals that raise near-term risk.

Positive Factors

Cash generation

A 77.6% rise in free cash flow shows materially improved cash conversion from operations. Durable cash generation supports ongoing network investment, customer acquisition, and potential deleveraging or bolt-on M&A without depending on external financing, strengthening the firm's long-term options.

Balance sheet strength

Very low leverage (D/E ~0.14) provides financial flexibility for capex-heavy telecom operations. It reduces interest burden, lowers refinancing risk, and allows management to fund fibre buildouts or absorb cyclical dips while preserving credit capacity for strategic investments over the next several quarters.

Revenue growth and gross margin

Sustained 13.6% revenue growth combined with a stable ~34.7% gross margin indicates demand for services and scalable unit economics from owned fibre. As utilisation rises, incremental revenue can flow to the bottom line, supporting durable margin stability and higher cash returns over time.

Negative Factors

Very low net profitability

Net margin of ~0.22% and negligible ROE show the business currently converts little of revenue into shareholder returns. Persistent low profitability limits ability to self-fund growth, reduces resilience to cost inflation, and raises the bar for operational improvement to justify long-term capital allocation.

Still-modest operating margins

Although margins improved, EBIT/EBITDA remain modest, highlighting structural cost intensity from network operations and competitive pricing pressure. Persistent fixed costs and ongoing capex needs could constrain margin expansion absent sustained scale gains or efficiency programs.

Dependence on third-party access frameworks

Revenue and unit economics are partly tied to commercial and regulated access terms with third-party networks. That dependency can cap pricing power and growth in certain geographies, and may force incremental capital spending to expand owned footprint to protect long-term margins and service control.

Superloop Ltd. Business Overview & Revenue Model

Company Description

Superloop Limited engages in the provision of design, construction, and operation connectivity services. It operates through Consumer, Business, and Wholesale segments. The Consumer segment offers fixed broadband, mobile, voice over IP (VOIP) services, and in-home cyber security services to Australian homes and residential customers. The Business segment provides Internet, mobile, VOIP, security, VPN, SASE, WiFi, and fixed wireless products. The Wholesale segment offers data and connectivity solutions, NBN backhaul, IP transit, dark fibre, ethernet, NBN enterprise ethernet, and international and wholesale aggregation services. The company also provides secure access service edge services; cyberedge, managed firewall, filtering, protection, and CyberHound security services; hosted PBX Voice service and SIP, an IP-based network services; and student accommodation solutions and network management portal services. The company was incorporated in 2014 and is headquartered in Brisbane, Australia.

How the Company Makes Money

Superloop generates revenue through multiple streams, including subscription fees from retail broadband customers and wholesale services sold to other telecommunications companies. The company also earns money from managed services and data center offerings, which provide additional value to businesses requiring reliable connectivity and storage solutions. Significant partnerships with local and international carriers enable Superloop to expand its network reach and enhance service offerings, contributing to its overall earnings growth.

Superloop Ltd. Financial Statement Overview

Summary

Revenue grew 13.6% and free cash flow rose 77.6%, supported by a stable gross margin (~34.7%) and low leverage (debt-to-equity 0.14). The key constraint is very low profitability (net margin 0.22% and modest ROE 0.3%), which tempers the otherwise solid operating and cash flow progress.

Income Statement

Superloop Ltd. has shown a significant improvement in revenue growth, with a 13.6% increase in the latest year. The gross profit margin is stable at around 34.7%, indicating efficient cost management. However, the net profit margin remains low at 0.22%, suggesting limited profitability. The EBIT and EBITDA margins have improved but are still relatively low, indicating room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.14, reflecting low leverage and financial stability. The return on equity is modest at 0.3%, indicating limited returns to shareholders. The equity ratio is strong, suggesting a solid capital structure. Overall, the balance sheet reflects financial stability with room for improving shareholder returns.

Cash Flow

Superloop Ltd. has demonstrated strong free cash flow growth of 77.6%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is robust at 0.56, indicating effective cash management. The free cash flow to net income ratio of 0.77 suggests a healthy conversion of earnings into cash. Overall, the cash flow position is strong, supporting future growth and investment.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	606.57M	546.46M	416.63M	322.17M	248.21M	95.68M
Gross Profit	145.52M	189.62M	145.11M	-7.47M	-4.88M	-20.32M
EBITDA	83.13M	64.47M	38.24M	24.02M	-13.04M	17.45M
Net Income	14.10M	1.21M	-14.74M	-43.16M	-99.23M	-31.96M
Balance Sheet
Total Assets	651.96M	608.71M	552.27M	525.91M	549.06M	562.01M
Cash, Cash Equivalents and Short-Term Investments	83.90M	74.45M	51.56M	32.15M	83.13M	89.72M
Total Debt	88.88M	55.47M	60.23M	56.83M	58.03M	67.00M
Total Liabilities	241.95M	211.46M	184.55M	159.55M	132.85M	130.20M
Stockholders Equity	410.00M	397.25M	367.72M	366.36M	416.21M	431.81M
Cash Flow
Free Cash Flow	78.21M	61.89M	24.95M	-13.68M	-32.83M	-2.22M
Operating Cash Flow	100.67M	80.70M	49.92M	41.10M	-13.84M	12.55M
Investing Cash Flow	-97.33M	-44.81M	-24.52M	-78.16M	7.22M	-15.17M
Financing Cash Flow	25.57M	-13.11M	-5.71M	-15.55M	-1.45M	75.34M

Superloop Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SLC, the sentiment is Positive. The current price of 2.95 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 2.49, and above the 200-day MA of 2.86, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 70.66 is Negative, neither overbought nor oversold. The STOCH value of 88.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SLC.

Superloop Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLC	64 Neutral	€1.52B	107.27	0.21%	―	31.16%	―
TLS	64 Neutral	AU$58.20B	26.07	14.73%	3.91%	0.86%	34.23%
MAQ	62 Neutral	AU$1.75B	52.62	7.40%	―	1.75%	0.42%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ABB	54 Neutral	AU$1.49B	57.60	5.89%	1.27%	18.74%	14.89%
TPG	54 Neutral	AU$7.73B	58.20	-0.93%	47.35%	-5.04%	-349.38%

Superloop Ltd. Corporate Events

Superloop flags potential $4m earnings hit from AGL telecom divestment

Superloop has highlighted its exposure to AGL Energy’s plan to divest its telecommunications business, noting it currently supplies network and backhaul transit services to AGL subsidiary Southern Phone under a wholesale agreement running to June 2029. The agreement supports subscriber traffic on AGL’s network, and the timing and extent of any impact will depend on how the divestment and subsequent subscriber migration unfold.

According to Superloop, AGL’s announcement anticipates migrating subscribers off its network in the first half of 2027, after which AGL may significantly reduce its use of Superloop’s wholesale services. If AGL fully winds down its usage following the migration, Superloop estimates an annualised gross margin impact of up to $4 million, signalling a potential future earnings headwind but with a multi‑year lead time for the company and investors to adjust.

The most recent analyst rating on (AU:SLC) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Superloop Ltd. stock, see the AU:SLC Stock Forecast page.

State Street Group Ceases to Be Substantial Holder in Superloop

State Street Corporation, through subsidiaries including State Street Bank and Trust Company and State Street Global Advisors entities, has ceased to be a substantial shareholder in Superloop Limited as of 6 February 2026. The change in holding, disclosed under Australian substantial shareholding rules, signals a shift in Superloop’s institutional investor base that may alter the company’s share register dynamics but does not, on its face, suggest an operational or strategic change for the telecommunications group.

The most recent analyst rating on (AU:SLC) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Superloop Ltd. stock, see the AU:SLC Stock Forecast page.

Superloop Sets Date for 1H FY26 Financial Results Briefing

Superloop Ltd has scheduled the release of its financial results for the six months ended 31 December 2025 for Wednesday, 18 February 2026 at 10:30am AEDT, with a results briefing to be delivered via webcast and teleconference. Investors and other stakeholders can pre-register for the presentation, and a recording of the session will be made available on the company’s Investor Centre shortly after the event, providing the market with an opportunity to assess Superloop’s recent performance and operating progress.

The most recent analyst rating on (AU:SLC) stock is a Buy with a A$3.25 price target. To see the full list of analyst forecasts on Superloop Ltd. stock, see the AU:SLC Stock Forecast page.

State Street Ceases to Be Substantial Holder in Superloop

State Street Corporation, through its asset management subsidiaries including State Street Global Advisors and related entities, has filed a notice that it has ceased to be a substantial shareholder in Superloop Limited as of 15 January 2026. The change reflects a reduction in State Street’s relevant interest in Superloop’s voting securities below the substantial holding threshold, signaling a shift in the company’s institutional shareholder base that may modestly affect Superloop’s register composition and the visibility of large global asset managers among its investors.

The most recent analyst rating on (AU:SLC) stock is a Buy with a A$3.25 price target. To see the full list of analyst forecasts on Superloop Ltd. stock, see the AU:SLC Stock Forecast page.

State Street Corporation Ceases to be Substantial Holder in Superloop Ltd.

Superloop Ltd. has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of December 5, 2025. This change in substantial holding may impact Superloop’s shareholder structure and influence within the industry, as State Street Corporation’s exit could alter the dynamics of voting power and decision-making processes within the company.

The most recent analyst rating on (AU:SLC) stock is a Buy with a A$3.40 price target. To see the full list of analyst forecasts on Superloop Ltd. stock, see the AU:SLC Stock Forecast page.