Fitell Corporation Announces $3 Million Share Repurchase Program
Rhea-AI Summary
Fitell Corporation (NASDAQ: FTEL) announced a share repurchase program authorizing up to US$3.0 million of Class A ordinary shares to be repurchased over the next 24 months. Repurchases may occur via open market purchases, block trades, or other means in compliance with Rule 10b-18, and will be funded from the company’s existing cash and future operating cash flows.
All repurchased shares will be held as treasury stock or cancelled. The program is effective immediately, may be modified, suspended, or terminated at any time, and the company concurrently furnished a Form 6-K to the SEC.
Positive
- Board approved up to $3.0 million repurchase authorization
- Repurchase period spans 24 months
- Repurchases may be executed via open market or block trades
- Repurchases funded from existing cash and future operating cash flows
Negative
- Repurchases are discretionary and depend on capital position and liquidity
- Program may be modified, suspended, or terminated at any time
- No obligation to repurchase any specific number of shares
News Market Reaction
On the day this news was published, FTEL gained 41.18%, reflecting a significant positive market reaction. Argus tracked a peak move of +106.1% during that session. Our momentum scanner triggered 39 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $8M at that time. Trading volume was exceptionally heavy at 23.3x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
FTEL was down 6.75% while scanner peers like BQ and ZOOZ also moved down (median about -4.5%). This points to broader sector pressure, though individual moves vary and one peer in momentum screened higher.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 02 | Dividend & loyalty | Positive | -0.8% | Announced interim dividend and loyalty program with per-share cash incentives. |
| Dec 01 | Buyback announcement | Positive | +41.2% | Authorized up to US$3.0M share repurchase over 24 months, effective immediately. |
| Nov 17 | FY25 earnings | Positive | -7.9% | Reported revenue and margin growth with sharply reduced net loss and expenses. |
| Nov 06 | Crypto & robotics | Positive | -32.0% | Announced $50M stablecoin-linked convertible notes and launch of 2F Robotics JV. |
| Oct 16 | Nasdaq compliance | Positive | +3.2% | Regained compliance with Nasdaq minimum bid price rule after 16 qualifying days. |
Positive corporate actions (financing, earnings improvement, dividend) often saw negative next-day moves, while buyback and compliance headlines aligned with gains.
Over recent months, FTEL reported FY25 results with improved profitability, executed sizable convertible note financing for stablecoin treasury and AI-driven robotics, and regained Nasdaq bid-price compliance. It then announced a US$3.0M share repurchase program effective immediately, followed by an interim dividend and shareholder loyalty program. Price reactions have been mixed: the buyback and compliance news coincided with gains, while earnings, financing and dividend headlines saw selling, highlighting inconsistent responses to ostensibly supportive developments.
Market Pulse Summary
The stock surged +41.2% in the session following this news. A strong positive reaction aligns with the clearly shareholder-friendly nature of a US$3,000,000 repurchase authorization, especially with FTEL trading well below its 200-day MA and near its 52-week low. Historically, the prior buyback announcement coincided with a substantial gain, while other positive events sometimes saw selling. Investors would need to weigh whether limited average volume and past volatility around financings could later temper enthusiasm.
Key Terms
treasury stock financial
Rule 10b-18 regulatory
Form 6-K regulatory
Section 21E of the Securities Exchange Act of 1934 regulatory
AI-generated analysis. Not financial advice.
Taren Point, Australia, Dec. 01, 2025 (GLOBE NEWSWIRE) -- Fitell Corporation (NASDAQ: FTEL) (“Fitell” or the “Company”) an online retailer of gym and fitness equipment in Australia, today announced that its board of directors (the “Board”) has approved a share repurchase program (the “Share Repurchase Program”) under which the Company may repurchase up to
Share Repurchase Program
With a positive outlook on our growth trajectory, the Board has approved the Share Repurchase Program of up to US
- Under the program, Fitell may repurchase shares from time to time through open market purchases, block trades, or other means, in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The actual timing, volume, and execution of repurchases will be at the discretion of management and will depend on factors such as share price, market conditions, regulatory requirements, and the Company’s capital position and liquidity needs;
- Repurchases under the program are expected to be funded using the Company’s existing cash and future operating cash flows.
- All shares repurchased will be held as treasury stock or cancelled.
- The Share Repurchase Program does not obligate the Company to acquire any particular number of shares and may be adjusted or terminated at any time depending on market conditions and other corporate considerations.
- The program is effective immediately and may be modified, suspended, or terminated at any time.
“Following our FY25 results, we believe the current market valuation does not fully reflect Fitell’s operational progress and opportunities across our fitness operations and 2F Robotics,” said Sam Lu, CEO of Fitell Corporation. “We believe our balance sheet has strengthened and that now is an appropriate time to begin returning value to shareholders. The share repurchase program provides flexibility within our corporate treasury management framework as we continue to advance the Company’s long-term vision.”
Fitell Corporation remains focused on its near-term strategic goals, including our e-commerce operations, AI-driven robotics development, and digital asset treasury management.
The Company is furnishing a Form 6-K to the SEC concurrently with the press release.
About Fitell Corporation
Fitell Corporation, through GD Wellness Pty Ltd (“GD”), its wholly owned subsidiary, is an online retailer of gym and fitness equipment both under its proprietary brands and other brand names in Australia. The company’s mission is to build an ecosystem with a whole fitness and wellness experience powered by technology to our customers. GD has served over 100,000 customers with large portions of sales from repeat customers over the years. The Company’s brand portfolio can be categorized into three proprietary brands under its Gym Direct brand: Muscle Motion, Rapid Motion, and FleetX, in over 2,000 stock-keeping units (SKUs). For additional information, please visit the Company’s website at www.fitellcorp.com.
Forward-Looking Statements
Certain statements in this release, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result" and similar expressions. Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements. A number of factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the following: the market conditions, share price, trading volume of the Company’s class A ordinary shares; the Company’s strategic decisions regarding use of capital; the Company’s working capital available for share repurchases; the Company’s ability to execute its business strategies; and other risks and uncertainties. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law. We cannot guarantee that future results reflected in the forward-looking statements will occur. Important factors that could cause actual results to differ materially include, but are not limited to the risks and uncertainties described in our most recently filed annual report on Form 20-F and Form 6-K reports filed in connection with our earnings result and other filings with the Securities and Exchange Commission.
For more information, please contact:
Chief Financial Officer
Edwin Tam
edwin@gymdirect.com.au
Investor Relations
ir@fitellcorp.com
FAQ
What did Fitell (FTEL) announce on December 1, 2025 regarding share repurchases?
How will Fitell (FTEL) fund the $3.0 million repurchase program?
When does the Fitell (FTEL) repurchase program take effect and can it change?
How will Fitell (FTEL) execute share repurchases under the program?
Will Fitell (FTEL) cancel repurchased shares under the program?
Does the Fitell (FTEL) program obligate the company to buy a set number of shares?
