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FirstWave Cloud Technology Ltd. (AU:FCT)
:FCT
Australian Market
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FirstWave Cloud Technology (FCT) AI Stock Analysis

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AU:FCT

FirstWave Cloud Technology

(Sydney:FCT)

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Neutral 42 (OpenAI - 4o)
Rating:42Neutral
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 (FCT) vs. iShares MSCI Australia ETF (EWA)

FirstWave Cloud Technology Business Overview & Revenue Model

Company DescriptionFirstwave 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 MoneyFirstWave 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
35
Negative
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
55
Neutral
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.63M8.74M11.28M12.49M9.35M7.98M
Gross Profit5.77M7.70M8.80M5.50M2.58M4.30M
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 Assets38.74M38.74M41.87M63.33M76.74M24.88M
Cash, Cash Equivalents and Short-Term Investments364.03K364.03K1.81M5.74M10.54M10.10M
Total Debt2.42M2.42M2.38M260.43K367.57K632.99K
Total Liabilities9.38M9.38M9.66M10.90M11.58M10.01M
Stockholders Equity29.36M29.36M32.21M52.43M65.16M14.87M
Cash Flow
Free Cash Flow617.02K165.84K-3.54M-4.67M-11.21M-11.87M
Operating Cash Flow620.91K171.38K-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 Flow512.52K512.52K2.20M-130.94K10.70M6.55M

FirstWave Cloud Technology Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.01
Price Trends
50DMA
0.02
Negative
100DMA
0.02
Negative
200DMA
0.02
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
25.00
Positive
STOCH
20.00
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
AU$48.02M1.55-64.51%-38.38%-277.78%
46
Neutral
AU$9.85M13.07%68.60%
42
Neutral
AU$22.79M-54.62%-22.47%39.26%
36
Underperform
AU$11.64M-347.17%-20.82%17.95%
32
Underperform
AU$25.63M12.88%-22.58%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FCT
FirstWave Cloud Technology
0.01
-0.02
-66.67%
AU:SEN
Senetas Corporation Limited
0.03
<0.01
50.00%
AU:NET
NetLinkz Ltd.
0.01
0.00
0.00%
AU:BEO
SkyFii Limited
0.21
-0.14
-40.00%
AU:EAT
IncentiaPay Ltd.
0.02
0.00
0.00%
AU:WHK
WhiteHawk Ltd.
0.01
0.00
0.00%

FirstWave Cloud Technology Corporate Events

FirstWave Cloud Technology Reports Q4 FY25 Developments and Strategic Restructuring
Jul 31, 2025

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
Jul 30, 2025

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
Jul 17, 2025

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
Jul 14, 2025

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
Jul 14, 2025

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
Jul 11, 2025

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
Jul 4, 2025

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
Jul 4, 2025

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
Jul 1, 2025

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
Jun 30, 2025

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
Jun 26, 2025

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
Jun 10, 2025

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
May 7, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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: Oct 09, 2025