Pentanet Ltd has reported group revenue of $24.4 million for the fiscal year ended June 30, 2026, marking an 8% increase compared to the prior corresponding period. The company's results, published during the September 4, 2026 trading session, revealed a 74% surge in group EBITDA to $2.4 million, alongside a 17% rise in operating cash flow to $1.6 million. Pentanet shares traded at AUD 0.024, up 4.35% on the day following the announcement, although the equity remained down 20% over the trailing 12-month period.
The financial performance was underpinned by improved operating leverage and cost discipline across the business, which helped offset ongoing capital expenditure. Operating cash flow marked a notable $2.2 million recovery compared to the outflow recorded in FY24. Investing activities during the twelve-month period included $1.8 million directed toward intangibles and $0.5 million into network equipment, which incorporated the final $1.6 million payment made to the Australian Communications and Media Authority (ACMA) for a 15-year spectrum licence.
Cloud Gaming Segment Expands Margins
The company’s cloud gaming division emerged as a primary growth driver, with segment revenue rising 16% year-on-year to $2.8 million. Gross profit for the gaming segment advanced 40% to reach $1.9 million, while the segment gross margin expanded by 11 percentage points to 68%. Segment EBITDA increased by 61% to $1.7 million, contributing 46% of total group EBITDA before corporate costs, up from 35% in FY25.
Customer engagement metrics within the gaming sector also demonstrated positive momentum. Average revenue per user (ARPU) for cloud gaming climbed 36% to reach $24 per month. Furthermore, the proportion of subscribers opting for the higher-tier Ultimate plan grew to 59%, compared to 39% previously, while total registered CloudGG users reached 840,000.
Telecommunications Core Delivers Recurring Support
Pentanet's traditional telecommunications operations continued to provide a stable foundation of recurring revenue during FY26. Telco revenue increased 7% year-on-year to $21.6 million, while segment gross profit rose 2% to $9.8 million and EBITDA improved 5% to $2.0 million.
Total subscribers across the telco network grew 4% from the prior year to reach 18,936 as of June 30, 2026. The company secured 779 net new subscribers over the course of the year, while higher-margin 5G subscribers expanded by 15%. Recurring ARPU stood at $92, blended ARPU reached $96, and average monthly churn remained contained at 1.3%.
NVIDIA Alliance and GPU Infrastructure Roadmap
Cloud gaming expansion remains tied to Pentanet's position as the exclusive GeForce NOW Alliance Partner for Australia and New Zealand, a role the company has maintained since 2021. The firm delivers access to NVIDIA’s cloud gaming infrastructure through its proprietary CloudGG service.
Looking forward, management outlined plans to scale NVIDIA GPU infrastructure incrementally. Servers will be deployed in direct response to demand rather than through large upfront capital commitments. Pentanet noted that negotiations remain ongoing with NVIDIA regarding additional Blackwell servers under its alliance agreement, though management cautioned that no certainty exists regarding the finalization of that agreement.
Strategic Priorities and Long-Term Goals
Pentanet’s corporate roadmap establishes four operational priorities focusing on telco cash generation, fixed wireless maintenance, National Broadband Network enablement, and GPU capacity expansion. The telco segment's recurring cash flow is intended to partially fund digital infrastructure upgrades.
Management has targeted expanding paid cloud gaming users from approximately 10,000 to 20,000 in the near term, with a longer-term objective of scaling the user base further while building out underlying GPU capacity. Investors will continue to monitor subscriber acquisition rates and hardware deployment milestones.
