Fitell Corporation (NASDAQ:FTEL) soared 51.8% on Monday after the Australian fitness retailer unveiled a newly approved $3 million share repurchase program.
The board’s authorization allows the company to buy back up to $3 million worth of ordinary shares over the next two years. Fitell said it may execute repurchases through open-market transactions, block trades, or other permitted methods under Rule 10b-18 of the Securities Exchange Act of 1934.
“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.”
Management noted that decisions regarding the timing and scale of buybacks will depend on several considerations, including market dynamics, regulatory compliance, the company’s financial position, and the stock price. The repurchase program will be funded using existing cash reserves as well as future operating cash flows.
Fitell said any shares repurchased will either be held as treasury stock or cancelled. While the program is active immediately, the company reserves the right to modify, pause, or discontinue it as needed.
Alongside the buyback initiative, Fitell reaffirmed its commitment to advancing its e-commerce strategy, developing AI-driven robotics, and managing its digital asset treasury.