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FirstWave Cloud Technology (FCT) AI Stock Analysis
FirstWave Cloud Technology
(ASX:FCT)
AU:FCT's overall score is primarily weighed down by contracting revenues, negative earnings, and weak valuation metrics. While profitability remains a significant risk, the company's recent achievement of positive free cash flow and its minimal debt burden offer critical financial stability, preventing a lower score.
FirstWave Cloud Technology (FCT) vs. iShares MSCI Australia ETF (EWA)
- Market Cap
- AUD 11.39M
- Dividend Yield
- ―
- Average Volume (3M)
- ―
- Price to Earnings (P/E)
- -2.3
- Beta (1Y)
- -0.48
- Revenue Growth
- -4.17%
- EPS Growth
- 80.49%
- Country
- Australia
- Employees
- 41
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Infrastructure
FirstWave Cloud Technology Business Overview & Revenue Model
Company Description
FirstWave Cloud Technology Limited develops and sells network monitoring and internet security software in Australia, the United States, Canada, Mexico, Central America, South America, and the rest of the world. The company offers Network Management...
FirstWave Cloud Technology Earnings Call Summary
The call emphasized meaningful operational and product progress: ARR growth (+2%), a very high gross margin (95%), successful launch of Open-AudIT 6 with rapid user growth (~50% increase to ~39,000 active users), early commercial traction (5,991 downloads, 6% trial conversion, 194 leads), a $2.6M net capital raise and a $2.5M loan facility, plus a strategic CSIRO/University AI collaboration with IP retained. Offsetting these positives are Q2 cash burn from restructuring, early-stage monetization (few initial paid conversions), a short-term decline in revenue explained by a one-off $380k sale in Q1, and pronounced share-price weakness driven partly by investor overhang and limited near-term public guidance. Management expects Q3 to be cash-positive and is focused on converting high lead volumes into enterprise deals. Overall, operational indicators and strategic initiatives appear to outweigh the near-term financial and market challenges.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided that Q3 will be cash‑positive, expecting to collect the ~$2.5M of receivables as at Dec 31 (already >$1M received), and said the company has sufficient funds for the foreseeable future after a $2.6M capital raise (net of costs) and a new $2.5M, three‑year loan facility maturing 17 Dec 2028 (used to repay the Formue Nord note); operationally ARR grew 2%, gross profit margin is ~95%, restructuring will deliver ~$1.8M p.a. in savings (with further on‑cost savings), and the Q1→Q2 revenue decline reflected a one‑off $380k perpetual license in Q1; Open‑AudIT 6 metrics driving the outlook include 5,991 downloads, ~39,000 active users across both platforms in two months (a 50% increase), ~20,000 users on the new site (legacy sites ~19,000 after migration), ~194 open leads, a 6% conversion rate from free users to commercial trials, and three initial paid enterprise activations (2 Europe, 1 Australia).
FirstWave Cloud Technology Financial Statement Overview
Summary
The company faces persistent top-line revenue contraction and ongoing unprofitability, which has significantly eroded its equity base. However, conservative leverage (debt-to-equity of 0.11x) and a crucial recent transition to positive operating and free cash flows provide a degree of financial stability.
Income Statement
25NegativeBalance Sheet
50NeutralCash Flow
65Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.48M | 8.48M | 8.74M | 11.28M | 12.49M | 9.35M |
| Gross Profit | 5.54M | 5.54M | 7.70M | 8.80M | 5.50M | 2.58M |
| EBITDA | -1.20M | -1.20M | -2.29M | -23.27M | -10.18M | -11.14M |
| Net Income | -4.10M | -4.10M | -3.60M | -23.04M | -13.45M | -13.46M |
Balance Sheet | ||||||
| Total Assets | 28.80M | 28.80M | 38.74M | 41.87M | 63.33M | 76.74M |
| Cash, Cash Equivalents and Short-Term Investments | 1.33M | 1.33M | 364.03K | 1.81M | 5.74M | 10.54M |
| Total Debt | 2.11M | 2.11M | 2.42M | 2.38M | 260.43K | 367.57K |
| Total Liabilities | 10.14M | 10.14M | 9.38M | 9.66M | 10.90M | 11.58M |
| Stockholders Equity | 18.66M | 18.66M | 29.36M | 32.21M | 52.43M | 65.16M |
Cash Flow | ||||||
| Free Cash Flow | 291.93K | 291.93K | 165.84K | -3.54M | -4.67M | -11.21M |
| Operating Cash Flow | 297.24K | 297.24K | 171.38K | -3.47M | -1.76M | -8.00M |
| Investing Cash Flow | -1.68M | -1.68M | -2.10M | -2.66M | -2.91M | -2.25M |
| Financing Cash Flow | 2.50M | 2.50M | 512.52K | 2.20M | -130.94K | 10.70M |
FirstWave Cloud Technology Peers Comparison
Overall Rating
AU:MP164Neutral
AU:RTH57Neutral
AU:SEN55Neutral- AU:FCT45Neutral
AU:CYB43Neutral
AU:WHK41Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AU:MP1 | 64Neutral | AUD 4.18B | -82.26 | -5.20% | ― | 37.49% | -11816.67% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| AU:RTH | 57Neutral | AUD 48.60M | -50.50 | -6.86% | ― | 33.71% | -277.88% |
| AU:SEN | 55Neutral | AUD 36.47M | 84.94 | 1.06% | 15.08% | 4.73% | ― |
| AU:FCT | 45Neutral | AUD 11.39M | -2.27 | -21.70% | ― | -4.17% | 80.49% |
| AU:CYB | 43Neutral | AUD 12.41M | -1.72 | -162.05% | ― | -11.66% | 89.02% |
| AU:WHK | 41Neutral | AUD 4.90M | -1.23 | -418.00% | ― | -38.96% | 26.32% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AU:FCT | FirstWave Cloud Technology Ltd. | 0.01 | 0.00 | 0.00% | |
| AU:MP1 | Megaport Ltd. | 17.61 | 0.50 | 2.95% | |
| AU:SEN | Senetas Corporation Limited | 2.20 | -0.22 | -9.13% | |
| AU:CYB | Sovereign Cloud Holdings Ltd. | 0.06 | -0.02 | -26.25% | |
| AU:RTH | RAS Technology Holdings Limited | 1.01 | -0.14 | -11.74% | |
| AU:WHK | WhiteHawk Ltd. | 0.01 | 0.00 | 0.00% |
FirstWave Cloud Technology Corporate Events
FirstWave Seeks Patent for AI-Driven Self-Healing Network Monitoring
FirstWave has filed a provisional patent in Australia for an AI-driven network monitoring and fault diagnosis system that uses a multi-agent architecture orchestrated by large language models to identify and explain root causes of network faults. The...
FirstWave Boosts Margins and Cash as It Exits Legacy Telstra Revenues
FirstWave reported a 3.0% decline in revenue to $8.48 million for FY26, driven by the final winding down of legacy Telstra firewall and platform services, but delivered a 5.1% rise in gross profit to $8.09 million and a sharp improvement in margins a...
FirstWave posts cash-flow-positive quarter as compliance-led contracts and AI gateway deal build momentum
FirstWave reported a cash-flow-positive June quarter, delivering an operating cash inflow of A$605,000 and ending with A$1.331 million in cash, as higher customer receipts and a reduced cost base improved its financial position. Management highlighte...
FirstWave Extends Telstra Cybersecurity Deal With Australian Federal Agencies
FirstWave Cloud Technology has secured a 12-month extension to its agreement with Telstra to supply Information Security Manual-compliant email security via its CyberCision platform to several Commonwealth Government agencies, starting July 2026. The...
FirstWave appoints PKF Brisbane Audit Pty Ltd as new external auditor
FirstWave Cloud Technology has appointed PKF Brisbane Audit Pty Ltd, an authorised audit company, as its new external auditor in line with ASX Listing Rule 3.16.3. The move follows an internal restructuring at PKF, which is shifting audit work from i...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Sep 06, 2026