Flexiroam Shares Surge 17% After Signing Two-Year Connectivity Agreement with Etihad Airways
Key Takeaways
- •Flexiroam secured a two-year master agreement with Etihad Airways covering SIM and eSIM connectivity services across approximately 125 countries.
- •The contract addresses three operational use cases — staff connectivity, aircraft operational data, and pilot iPads — each on a recurring monthly subscription model.
- •Contracted recurring revenue grew to 55% of Flexiroam's total revenue in FY26, up from 39% in FY25, with Q4 FY26 reaching a 66% recurring revenue mix.
- •The company considers the agreement material but stated it cannot quantify the total expected revenue from the contract at this time.
- •FRX shares rose as much as 17% intraday following the announcement and were trading at 2.8 cents per share.
Flexiroam (ASX:FRX) climbed as much as 17% intraday after announcing a two-year master agreement with UAE-based Etihad Airways, the Abu Dhabi flag carrier, to deliver global connectivity solutions across three core operational areas.
Under the agreement, Flexiroam will supply physical SIM and digital eSIM connectivity alongside its management platform to the airline across approximately 125 countries. The company said the agreement "unifies and expands upon" services previously provided under earlier contracts.
The contract covers three operational use cases within Etihad's operations: staff connectivity, aircraft operational data, and the iPads used by Etihad's pilots. All three operate on a recurring monthly subscription model. Revenue will be generated primarily through monthly data pool subscription fees, along with usage-based charges and one-off SIM and eSIM provisioning fees. The contract falls within Flexiroam's B2B Solutions segment, which the company has been growing as it shifts its business toward enterprise contracts with recurring revenue rather than one-off consumer sales.
"In March, we said this partnership showed our enterprise model working in practice: start with one service, deliver, and be chosen for more. Today's named two-year agreement across three use cases is that model delivered," Flexiroam CEO and executive director Jefrey Ong told shareholders.
"We're proud to partner with Etihad. This brings our work together — staff connectivity, aircraft operational data, and the iPads Etihad's pilots rely on — under a single two-year framework built to deploy more," Mr Ong added. "We look forward to growing our services with the Etihad team."
In FY26, contracted recurring revenue reached 55% of the company's total revenue, up from 39% in FY25, with the Q4 FY26 recurring revenue mix reaching 66%.
While the Flexiroam board considers the agreement material given Etihad's scale and profile, the company stated it cannot quantify the total expected revenue at this time. For context, the agreement builds on an existing vendor relationship, meaning Flexiroam has already been supplying some of these services to Etihad; the new master agreement formalises and broadens that engagement under a single named contract.
FRX shares were trading at 2.8 cents per share following the announcement.