Pentanet Ltd (5GG) AI Stock Analysis

• Market Cap: AU$9.96M
• Dividend Yield: N/A
• Average Volume (3M): 607.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 8.20%
• EPS Growth: 37.20%
• Country: AU
• Employees: 69
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): >-0.01
• Shares Outstanding: 433,171,660
• 10 Day Avg. Volume: 711,045
• 30 Day Avg. Volume: 607,850
• PEG Ratio: 0.07
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 37.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: AU$0.02 ▲(0.00% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by weak financial quality (ongoing losses and pressured cash flow) and bearish technicals (trading below major moving averages with negative MACD). A low-leverage balance sheet provides some support, but negative earnings (P/E below zero) and no dividend data limit valuation appeal.

Positive Factors

Recurring revenue model

A subscription-based revenue mix (monthly residential/business plans and contracted enterprise services) provides predictable recurring cash inflows and customer lifetime value, supporting durable revenue visibility and easier capacity planning for 2–6 month strategic decisions.

Conservative leverage

Low debt-to-equity gives balance sheet flexibility during earnings volatility and reduces refinancing risk. For a capital-intensive telco, modest leverage supports investment in network upgrades without overburdening cash flow over the medium term.

Sustained revenue growth

Consistent top-line growth (recently +4.9% and multi-period revenue gains) shows ongoing customer additions or ARPU improvements, which underpin long-term scalability when paired with stable network and subscription operations.

Negative Factors

Negative profitability

Persistent negative net profit and EBIT margins signal the business has not yet achieved operating leverage; ongoing losses constrain reinvestment capacity and mean profitability improvements are required for sustainable free cash flow generation.

Weak cash flow generation

Negative FCF growth and low operating cash flow coverage create vulnerability to funding shortfalls and limit ability to self-fund network expansion or absorb shocks, increasing reliance on external financing for strategic projects.

Geographic concentration and scale

Concentration in one region limits addressable market and exposes the company to regional demand or regulatory shifts; combined with a relatively small employee base, this may impede rapid national expansion and scale-driven margin gains.

Pentanet Ltd Business Overview & Revenue Model

Company Description

Pentanet Limited operates as a telecommunications carrier and internet service provider in Perth, Australia. It operates in two segments, Internet and Telecommunication Services, and Gaming Technology. The company offers fixed wireless network services to residential and business customers. It also provides national broadband network, PentaMAX, XFIBRE, and apartment broadband products, as well as offers Wi-Fi setup services, and business and commercial solutions. Pentanet Limited was incorporated in 2017 and is headquartered in Perth, Australia.

How the Company Makes Money

Pentanet generates revenue primarily through subscription-based services, where customers pay for high-speed internet plans on a monthly basis. This includes both residential and business customers, contributing to a consistent revenue stream. The company may also earn additional income through installation fees, equipment sales, and value-added services. Key revenue streams include contracts with corporate clients for dedicated internet access and partnerships with technology providers to enhance service offerings. Furthermore, Pentanet's strategic expansion into new markets and continuous investment in its 5G network infrastructure are crucial factors contributing to its earnings potential.

Pentanet Ltd Financial Statement Overview

Summary

Revenue increased 4.9% in the latest period, but profitability remains weak with negative net profit and EBIT margins. The balance sheet is relatively conservative (debt-to-equity 0.34) yet return on equity is negative, and cash flow is a key risk due to negative free cash flow growth and low operating cash flow coverage.

Income Statement

Pentanet Ltd has shown some revenue growth over the years, with a 4.9% increase in the latest period. However, the company struggles with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has improved but remains low, suggesting challenges in cost management or pricing strategy.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.34, indicating a conservative leverage position. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is stable, suggesting a solid capital structure despite profitability issues.

Cash Flow

Pentanet Ltd's cash flow situation is concerning, with negative free cash flow growth and low operating cash flow coverage ratios. The free cash flow to net income ratio is positive, indicating some ability to cover net losses, but overall cash flow management remains a challenge.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	23.48M	22.80M	20.88M	19.73M	16.83M	10.92M
Gross Profit	2.92M	4.50M	-2.60M	-3.48M	-2.65M	-2.33M
EBITDA	804.00K	-298.00K	-1.27M	-3.80M	-4.48M	-8.29M
Net Income	-2.95M	-4.45M	-6.38M	-7.57M	-7.92M	-13.70M
Balance Sheet
Total Assets	31.77M	33.57M	41.58M	48.10M	46.14M	53.20M
Cash, Cash Equivalents and Short-Term Investments	2.42M	2.82M	5.30M	7.37M	13.39M	32.70M
Total Debt	12.01M	7.22M	8.82M	8.10M	5.58M	2.35M
Total Liabilities	12.06M	12.23M	15.84M	16.94M	12.58M	11.85M
Stockholders Equity	19.71M	21.34M	25.74M	31.16M	33.56M	41.35M
Cash Flow
Free Cash Flow	1.66M	311.00K	-7.75M	-10.89M	-14.72M	-10.11M
Operating Cash Flow	2.46M	1.36M	-634.00K	-3.62M	-4.82M	-3.22M
Investing Cash Flow	-2.60M	-2.84M	-4.62M	-9.77M	-13.89M	-6.89M
Financing Cash Flow	336.00K	-1.61M	3.18M	7.37M	-601.00K	41.54M

Pentanet Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:5GG, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.30 is Neutral, neither overbought nor oversold. The STOCH value of 24.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:5GG.

Pentanet Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SWP	50 Neutral	AU$43.55M	-6.94	-19.40%	―	35.24%	-181.60%
NOR	46 Neutral	AU$6.79M	-1.87	―	―	66.48%	77.19%
5GG	45 Neutral	AU$9.96M	-1.37	-18.92%	―	8.20%	37.20%
HFY	42 Neutral	AU$9.82M	-4.21	-11.62%	―	-9.44%	83.16%

Pentanet Ltd Corporate Events

Pentanet outlines risks and limitations in investor presentation

Pentanet has released a presentation outlining key disclaimers and risk factors associated with its corporate and financial communications. The document stresses that its materials are informational only, not financial advice or an offer of securities, and that any forward-looking statements are subject to significant uncertainties and industry-specific risks.

The company underscores that market and industry data cited may come from third parties and has not been independently verified by Pentanet or its advisers. It also highlights that investors bear the full risk of investment decisions, as Pentanet does not guarantee returns, capital repayment, or the accuracy and completeness of the information provided in the presentation.

The most recent analyst rating on (AU:5GG) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Pentanet Ltd stock, see the AU:5GG Stock Forecast page.

Pentanet lifts margins and cash flow as gaming and telecoms drive H1 FY26 EBITDA surge

Pentanet reported an 8% rise in interim H1 FY26 revenue to $11.9 million, with consolidated gross profit up 12% and gross margin improving to 49%, driven by steady performance across its telecommunications and gaming segments. The group delivered positive EBITDA of $1 million, a more than fivefold increase on the prior period, as cost discipline and higher-value plan adoption supported margin expansion despite a net loss after tax of $1.6 million.

Telecommunications revenue grew 7% to $10.6 million on the back of rising off-net and 5G subscribers and increased uptake of premium plans, lifting segment EBITDA by 69% to $0.9 million. The gaming division delivered 19% revenue growth and an 81% jump in gross profit, with EBITDA almost doubling to $0.8 million as a stronger subscription mix and operational efficiencies boosted returns, while operating cash flow surged to $1.3 million, enhancing Pentanet’s capital flexibility heading into the second half of FY26.

The most recent analyst rating on (AU:5GG) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Pentanet Ltd stock, see the AU:5GG Stock Forecast page.

Pentanet Narrows Half-Year Loss as Revenue and EBITDA Improve

Pentanet reported an 8% rise in half-year revenue to $11.9 million for the period ended 31 December 2025, with EBITDA surging 534% to $963,000 as the company continued to improve underlying operating performance. The net loss after tax narrowed by 49% to $1.6 million, reflecting better earnings quality compared with the prior period, although the board again opted not to declare a dividend and net tangible assets per share edged down to 0.03 cents, underscoring an ongoing focus on reinvestment and balance sheet discipline.

No changes in control over entities were reported during the half-year, indicating a stable corporate structure as Pentanet focuses on organic performance improvements. The combination of rising revenues, stronger EBITDA and a significantly reduced loss suggests the company is moving closer to breakeven, a development likely to be closely watched by investors seeking signs of sustainable profitability in a capital-intensive sector.

The most recent analyst rating on (AU:5GG) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Pentanet Ltd stock, see the AU:5GG Stock Forecast page.

Pentanet sets H1 FY26 results webcast to showcase network and cloud gaming strategy

Pentanet will host a streamed presentation and Q&A on its half-year FY26 results, led by managing director Stephen Cornish and CFO Mart-Marie Derman, on 26 February 2026, with supporting materials to be released via the ASX platform beforehand. The briefing offers shareholders and prospective investors a structured opportunity to engage with management on operational performance, the progress of its wireless network and cloud gaming initiatives, and the company’s positioning in Australia’s competitive broadband and digital entertainment markets.

The event underscores Pentanet’s efforts to differentiate itself from nbn-only resellers by highlighting its proprietary network and margin profile, while also showcasing its role in subscription-based cloud gaming. By promoting this investor-focused session and directing stakeholders to its interactive Investor Hub, the company is seeking to deepen market understanding of its strategy and growth ambitions, potentially influencing investor sentiment and liquidity in its shares.

The most recent analyst rating on (AU:5GG) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Pentanet Ltd stock, see the AU:5GG Stock Forecast page.

Pentanet Delivers Positive Operating Cash Flow While Finalising Key 5G Spectrum Payment

Pentanet reported customer receipts of $6.27 million for the December 2025 quarter and generated positive operating cash flow of $0.71 million, reflecting disciplined cost control across staffing, marketing and administration. After $0.43 million in capital and other non-current asset investments, including the final $1.6 million instalment on its $8 million, 15-year 26 GHz 5G spectrum licence year-to-date, and modest debt repayments, the company ended the quarter with a net cash increase of $2.43 million, signalling improving liquidity while continuing to fund network and spectrum assets critical to its long-term telecommunications infrastructure and service growth.

The most recent analyst rating on (AU:5GG) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Pentanet Ltd stock, see the AU:5GG Stock Forecast page.

Pentanet Sustains Positive EBITDA as New Brand Push and Cloud Gaming Growth Lift Q2

Pentanet reported unaudited Q2 FY26 consolidated revenue of $6 million, up 2% quarter-on-quarter and 7% year-on-year, with gross profit of $2.9 million and a fifth consecutive quarter of positive EBITDA at $0.4 million, underscoring improving operational efficiency. Telecommunications subscribers rose 2% to 18,670, driven by off-net NBN growth and higher-value 5G and NBN plans that lifted blended ARPU to $96, while churn improved to 1.1%. The GeForce NOW Powered by CloudGG cloud gaming segment continued to perform strongly, with gaming revenue up 7% on the prior year, higher engagement, and ARPU rising 31% year-on-year to $23 on the back of premium tier uptake. Management highlighted the launch of the new “Nothing But Net” brand platform as a strategic investment to rebuild awareness and support future subscriber acquisition, noting that major spectrum-related capital commitments are now largely complete, giving the company greater capital flexibility to focus on growth and disciplined cost control in the second half of FY26.

The most recent analyst rating on (AU:5GG) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Pentanet Ltd stock, see the AU:5GG Stock Forecast page.