FirstWave Cloud Technology (FCT) AI Stock Analysis

• Market Cap: AU$22.79M
• Dividend Yield: N/A
• Average Volume (3M): 4.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -22.47%
• EPS Growth: 39.26%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 1,899,202,000
• 10 Day Avg. Volume: 9,736,455
• 30 Day Avg. Volume: 4,282,122
• PEG Ratio: 0.09
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 3.13
• P/FCF Ratio: 165.22
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

FirstWave Cloud Technology's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's negative profitability and cash flow challenges, combined with negative market momentum, suggest significant risks. The valuation metrics further highlight potential overvaluation concerns.

FirstWave Cloud Technology Business Overview & Revenue Model

Company Description

Firstwave Cloud Technology Limited develops and sells Internet security software in Australia and internationally. It offers CyberCision, a platform as a service for security services; Email Security for businesses; Web Security, which protects customer accessing the Web from anywhere; Endpoint Security that provides automated zero day application and threat hunting services; Firewall Security for protection of service provider's broadband or Internet leased line customers; and advanced detection and response services. The company was founded in 2001 and is headquartered in North Sydney, Australia.

How the Company Makes Money

FirstWave Cloud Technology generates revenue through a subscription-based model, where clients pay recurring fees for access to its cybersecurity products and services. Key revenue streams include the sale of software licenses, maintenance and support services, and premium threat intelligence features. The company also benefits from partnerships with other technology providers and resellers, which help to expand its market reach and customer base. Additionally, FCT may see revenue growth from upselling advanced features and services to existing customers, as well as entering into strategic alliances that enhance its product offerings and market presence.

FirstWave Cloud Technology Financial Statement Overview

Summary

FirstWave Cloud Technology is facing significant financial challenges, with declining revenues, negative profitability margins, and cash flow constraints. Despite a strong gross profit margin and low debt levels, inefficiencies in asset utilization and profitability are evident, necessitating strategic improvements.

Income Statement

FirstWave Cloud Technology has experienced declining revenue over the past year, with a negative revenue growth rate of -12.71%. The company also shows negative profitability margins, including a net profit margin of -41.17% and an EBIT margin of -48.12%, indicating significant operational challenges. Despite a strong gross profit margin of 88.01%, the overall income statement reflects financial instability and a need for strategic improvements.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio of 0.08, suggesting conservative leverage. However, the return on equity is negative at -12.26%, indicating inefficiencies in generating returns for shareholders. The equity ratio is not provided, but the available data suggests a need for better asset utilization and profitability improvements.

Cash Flow

Cash flow analysis reveals a challenging situation with a negative free cash flow growth rate of -266.12%. The operating cash flow to net income ratio is low at 0.02, indicating limited cash generation from operations. The free cash flow to net income ratio is relatively stable at 0.97, but overall cash flow management requires attention to improve liquidity and operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.63M	8.74M	11.28M	12.49M	9.35M	7.98M
Gross Profit	5.77M	7.70M	8.80M	5.50M	2.58M	4.30M
EBITDA	-3.07M	-3.96M	-23.27M	-10.18M	-11.14M	-10.33M
Net Income	-2.83M	-3.60M	-23.04M	-13.45M	-13.46M	-10.81M
Balance Sheet
Total Assets	38.74M	38.74M	41.87M	63.33M	76.74M	24.88M
Cash, Cash Equivalents and Short-Term Investments	364.03K	364.03K	1.81M	5.74M	10.54M	10.10M
Total Debt	2.42M	2.42M	2.38M	260.43K	367.57K	632.99K
Total Liabilities	9.38M	9.38M	9.66M	10.90M	11.58M	10.01M
Stockholders Equity	29.36M	29.36M	32.21M	52.43M	65.16M	14.87M
Cash Flow
Free Cash Flow	617.02K	165.84K	-3.54M	-4.67M	-11.21M	-11.87M
Operating Cash Flow	620.91K	171.38K	-3.47M	-1.76M	-8.00M	-8.05M
Investing Cash Flow	-2.10M	-2.10M	-2.66M	-2.91M	-2.25M	-3.83M
Financing Cash Flow	512.52K	512.52K	2.20M	-130.94K	10.70M	6.55M

FirstWave Cloud Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FCT, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 25.00 is Positive, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:FCT.

FirstWave Cloud Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEN	54 Neutral	AU$48.02M	1.55	-64.51%	―	-38.38%	-277.78%
WHK	46 Neutral	AU$9.85M	―	―	―	13.07%	68.60%
FCT	42 Neutral	AU$22.79M	―	-54.62%	―	-22.47%	39.26%
NET	36 Underperform	AU$11.64M	―	-347.17%	―	-20.82%	17.95%
EAT	32 Underperform	AU$25.63M	―	―	―	12.88%	-22.58%

FirstWave Cloud Technology Corporate Events

FirstWave Cloud Technology Reports Q4 FY25 Developments and Strategic Restructuring

FirstWave Cloud Technology announced significant developments in its operations for Q4 FY25, including major license renewals and a new partnership with AWS and Ingram Micro to launch its products on the AWS marketplace. The company also underwent a restructuring to streamline operations, resulting in a reduced headcount and the establishment of four core divisions. Financially, FirstWave reported a slight decline in revenue and cash position, but it anticipates improved cash inflows in the coming months. The company is focusing on growing recurring revenues and exploring both organic and inorganic growth opportunities, with a strategic emphasis on AI-powered compliance management.

FirstWave Announces Q4 FY25 Investor Update Webinar

FirstWave Cloud Technology Limited announced an upcoming investor update webinar scheduled for August 6, 2025, to discuss the company’s Q4 FY25 Quarterly Activity Report and Appendix 4C. The webinar will be hosted by key company executives and will include a Q&A session, providing stakeholders with insights into the company’s recent activities and future plans.

FirstWave Announces Director Retirement and Share Rights Cancellation

FirstWave Cloud Technology Limited announced the retirement of John Grant from its board of directors, effective July 18, 2025. As part of this transition, 900,000 Share Appreciation Rights were canceled following the company’s Annual General Meeting on November 23, 2023. This change may impact the company’s governance structure and could influence investor perceptions and strategic direction.

FirstWave Cloud Technology Appoints New Director

FirstWave Cloud Technology Limited has announced the appointment of Roger Buckeridge as a new director, effective from July 14, 2025. The initial director’s interest notice indicates that Buckeridge currently holds no securities or interests in the company, suggesting a fresh perspective without existing financial ties, which could influence the company’s strategic direction and governance.

FirstWave Appoints Roger Buckeridge as New Chairman Amid Strategic Shift

FirstWave Cloud Technology Limited has announced the appointment of Roger Buckeridge as an Independent Non-Executive Director, with plans for him to become Chairman following John Grant’s retirement. Buckeridge’s extensive experience in the funds management sector is expected to aid FirstWave’s strategic focus on AI-powered IT compliance. The transition marks a new phase for FirstWave, aiming to leverage its intellectual property to become a globally significant company in the cybersecurity and network management industry.

FirstWave Expands Microsoft Contract, Strengthens Market Position

FirstWave Cloud Technology has announced a significant contract renewal and expansion with Microsoft, valued at approximately USD $507k, marking an 18% increase from the previous agreement. This development is part of a broader sales achievement of AUD $1.8m over three weeks, including deals with Claro Dominican Republic and Telstra. The expanded agreement with Microsoft involves an increase in licensed nodes and highlights FirstWave’s strategic focus on growing its network management presence in North and Latin America. The collaboration is expected to bolster FirstWave’s market positioning and technological roadmap, with potential growth opportunities in licensing new technologies and AI-powered IT compliance solutions.

Director’s Securities Update at FirstWave Cloud Technology

FirstWave Cloud Technology Limited announced a change in the interests of its director, John Edwin Grant, who disposed of 1,400,000 unlisted options. This change reflects the expiry of options without exercise or conversion, impacting the director’s securities holdings but not affecting the company’s overall market position.

FirstWave Announces Cessation of Securities

FirstWave Cloud Technology Limited announced the cessation of several securities, including options and service rights, due to expiry or failure to meet conditions. This development may impact the company’s capital structure and could influence its market positioning by affecting investor perception and stakeholder confidence.

FirstWave Expands into Americas with Claro DR Licensing Deal

FirstWave Cloud Technology has entered into a licensing agreement with Claro Dominican Republic for its NMIS v9 software suite, marking a strategic expansion into the Americas. The agreement involves a one-time license fee of USD $250,000, contributing to FirstWave’s gross profit without ongoing obligations. This partnership allows Claro to leverage FirstWave’s advanced technologies, including the upcoming Model Context Protocol for AI and the Message Bus technology, enhancing its telecommunications services in the Dominican Republic.

FirstWave Expands into Latin America with Claro DR Agreement

FirstWave Cloud Technology has entered into an agreement with Claro Dominican Republic to license its NMIS v9 software suite, marking a significant expansion into the Latin American market. The deal involves a $250,000 upfront licensing fee, which is pure gross profit for FirstWave, and enables Claro to leverage FirstWave’s upcoming AI Model Context Protocol and Message Bus technology, enhancing their service capabilities.

FirstWave Extends Telstra Agreement and Expands AWS Partnership

FirstWave Cloud Technology has extended its agreement with Telstra Corporation for the provision of ISM-compliant CyberCision software and services to several Federal Government agencies. The Secure Internet Gateway (SIG) Agreement has been extended for an additional 12 months, with a further one-year option, while the Products and Services Agreement (PSA) has been extended for two months. Despite a reduction in revenue from these agreements, FirstWave has aligned operational costs to offset the impact, resulting in a positive bottom line. The company is diversifying its revenue streams and expanding its reach through a partnership with Amazon Web Services and Corent Technology to launch its software solutions on the AWS Marketplace.

FirstWave Partners with AWS to Launch on Global Marketplace

FirstWave Cloud Technology has announced a strategic partnership with Amazon Web Services and Corent Technology to launch its product suite on the AWS Marketplace. This collaboration, supported by AU$250,000 in funding, aims to enhance FirstWave’s AI technologies and streamline product distribution, providing access to AWS’s 300,000 monthly active users and over 2,500 channel partners. The initiative is a significant step in FirstWave’s strategy to monetize its free-tier software users by offering seamless upgrades to enterprise-grade solutions, thereby expanding its global presence and simplifying customer access to its products.

FirstWave Cloud Technology Unveils AI-Driven Compliance Strategy

FirstWave Cloud Technology has provided an update on its AI-enabled compliance and control software. The company is focusing on aligning its products with CIS Controls, enhancing core strengths, and developing a commercial pathway for free users. This strategic direction aims to strengthen FirstWave’s market position and offer improved solutions for compliance and control, potentially impacting stakeholders by broadening the user base and enhancing product offerings.