Why fund managers say Aussie Broadband's wholesale deals are a game changer

NBN challenger brand Aussie Broadband has been rewarded for a run of wholesale deals and NBN market share gains after what Ausbil Investment Management's September 2025 Quarterly Report described as an extended period of long service leave in the share price following the loss of the Origin contract to fellow challenger Superloop. Ausbil detailed a resulting +48.8% return after an outstanding FY26 result, a new six-year wholesale agreement with More Telecom adding more than 250,000 connections, and the sale of the loss-making Buddy brand.

Wholesale deals expanding the network beyond retail

QVG Capital's September 2025 Monthly Report detailed the strategic significance of the More Telecom deal: indirect access to around 9 million customers via Commonwealth Bank's Yello program and the potential for an expanded relationship with More Telecom over time, alongside optimism around business efficiencies under a new CEO focused on margin and return on capital. LSN Capital Partners' February 2026 Presentation quantified the operating momentum, noting EBITDA growth of 15% year on year, or 28% normalising for the impact of the Origin contract loss and Buddy investment, with 656,000 residential subscribers as of June 30, representing 8.4% share of NBN connections.

Investors Mutual Limited's April 2026 Article detailed the valuation and growth case together, noting the stock trades around 18 times FY27 earnings against modelled 30% compound earnings growth over the following couple of years, with growth supported by the Tangerine wholesale deal, continued residential broadband share gains, and a differentiated enterprise product stack that the manager believes gives Aussie a real advantage over its most direct comparison, Superloop. QVG Capital's August 2025 Monthly Report had earlier detailed a wholesale backhaul deal with private telco Tangerine worth at least $12 million pre-tax, a deal QVG described as terrific for a company that had endured a difficult FY25.

What managers are watching next

Not every recent update has been uniformly positive. QVG Capital's June 2026 Monthly Report noted a mixed trading update in which earnings were in line with guidance and consensus but net customer additions across the core Aussie brand and its More and Tangerine wholesale partners came in behind expectations, even as QVG remained optimistic on medium-term earnings growth from multiple profit drivers and cost efficiency opportunities as the wholesale business scales. Ophir Asset Management's May 2026 Article added that Telstra's much-discussed pricing changes had not materially slowed Aussie's ongoing market share gains, supporting the defensive growth characterisation several managers continue to apply to the stock.