FirstWave Cloud Technology (FCT) AI Stock Analysis

• Market Cap: AU$27.42M
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -14.50%
• EPS Growth: -77.33%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): >-0.01
• Shares Outstanding: 1,713,518,700
• 10 Day Avg. Volume: 2,123,293
• 30 Day Avg. Volume: 1,548,125
• PEG Ratio: -1.02
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -343.29
• 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

• Rating: 47 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

FirstWave Cloud Technology Ltd.'s score is predominantly influenced by its weak financial performance, characterized by negative revenue growth and cash flows. Technical analysis provides a neutral outlook, while valuation is hindered by a negative P/E ratio. The absence of earnings call insights or notable corporate events leaves these factors unaddressed.

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 Ltd. generates revenue through a subscription-based model, where clients pay for access to its cloud-based cybersecurity solutions. Key revenue streams include subscription fees from its security platforms, professional services such as consulting and implementation, and training services. Additionally, FCT partners with telecommunications companies and managed service providers to extend its product reach, thereby increasing its customer base and driving sales. These partnerships are significant contributors to its earnings, as they allow FCT to leverage the distribution channels and customer networks of its partners.

FirstWave Cloud Technology Financial Statement Overview

Summary

FirstWave Cloud Technology Ltd. is facing significant financial challenges. Despite improvements in gross profitability, ongoing operational losses and negative cash flows highlight the company's struggle to achieve profitability. The balance sheet is relatively strong in terms of equity, but continued losses and negative cash flow growth pose risks to financial stability. Strategic actions may be needed to improve revenue growth and operational efficiency.

Income Statement

The company has experienced a decline in revenue from 2023 to 2024, with a negative revenue growth rate. Gross profit margin improved notably, indicating better cost management, but the net profit margin remains significantly negative due to high operating losses. EBIT and EBITDA margins are also negative, indicating ongoing operational challenges.

Balance Sheet

The balance sheet shows a high equity ratio, suggesting a strong equity base relative to assets. However, the company continues to incur substantial losses, negatively impacting return on equity. The debt-to-equity ratio remains low, indicating limited leverage, which could be a positive for stability amidst financial challenges.

Cash Flow

Operating cash flow is negative, with a significant decline from the previous year, impacting free cash flow growth negatively. The operating cash flow to net income ratio is not favorable, indicating challenges in converting income into cash flow. Financing activities show some inflows, but overall cash flow management remains a concern.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.02M	11.28M	12.49M	9.35M	7.98M	8.25M
Gross Profit	7.98M	8.80M	5.50M	2.58M	4.30M	-2.55M
EBITDA	-4.27M	-4.87M	-8.17M	-12.50M	-13.09M	-14.66M
Net Income	-22.73M	-23.04M	-13.45M	-13.46M	-10.81M	-13.78M
Balance Sheet
Total Assets	41.00M	41.87M	63.33M	76.74M	24.88M	25.25M
Cash, Cash Equivalents and Short-Term Investments	1.78M	1.81M	5.74M	10.54M	10.10M	15.28M
Total Debt	2.41M	2.38M	260.43K	367.57K	632.99K	464.27K
Total Liabilities	10.39M	9.66M	10.90M	11.58M	10.01M	9.89M
Stockholders Equity	30.61M	32.21M	52.43M	65.16M	14.87M	15.35M
Cash Flow
Free Cash Flow	-99.83K	-3.54M	-4.67M	-11.21M	-11.87M	-12.45M
Operating Cash Flow	-53.01K	-3.47M	-1.76M	-8.00M	-8.05M	-8.70M
Investing Cash Flow	-2.43M	-2.66M	-2.91M	-2.25M	-3.83M	-3.75M
Financing Cash Flow	2.21M	2.20M	-130.94K	10.70M	6.55M	19.67M

FirstWave Cloud Technology Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FCT, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.01, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
FCT	47 Neutral	AU$27.42M	―	-54.77%	―	-14.50%	-77.33%
WHK	46 Neutral	AU$8.90M	―		―	16.26%	62.58%
SEN	42 Neutral	AU$26.50M	―	-31.58%	―	22.29%	64.62%
NET	36 Underperform	AU$11.64M	―	-347.17%	―	-5.53%	-50.00%
BEO		AU$15.34M	―	-262.86%	―	―	―
EAT	32 Underperform	AU$5.13M	―		―	7.02%	-44.64%

FirstWave Cloud Technology Corporate Events

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.

FirstWave Cloud Technology Reports Q3 FY25 Results and Strategic Developments

FirstWave Cloud Technology reported its financial and operational results for the third quarter of FY25, highlighting the renewal of major license agreements and ongoing investment in AI-enabled compliance and control technologies. Despite a decrease in cash position and revenue, the company improved its gross profit margin and secured an agreement with Corent Tech, funded by AWS, to boost its cloud services. The company is exploring various strategies to address its low cash balance and potential negative cash flows in the upcoming quarter.

FirstWave Cloud Technology to Host AI Compliance Webinar Amid Strategic Shift

FirstWave Cloud Technology Limited is hosting a technology update webinar on May 7, 2025, to discuss its transformation and strategic focus on IT compliance management. The company aims to leverage its AI capabilities and the newly released Model Context Protocol (MCP) to enhance data mining and compliance automation, aligning with standards set by NIST and CIS. This move is expected to solidify FirstWave’s position as a leader in AI-powered compliance management, offering significant opportunities for monetizing its free user base.

FirstWave Cloud Technology to Release 1 Million Shares from Escrow

FirstWave Cloud Technology Limited announced that 1,000,000 of its fully paid ordinary shares, initially issued to Pitt Street Research Pty Ltd for research services, will be released from a 6-month voluntary escrow on May 1, 2025. This release is part of a total of 3,000,000 shares issued, with another 1,000,000 shares set to be released from a 12-month escrow on October 31, 2025. The release of these shares may impact the company’s stock liquidity and market perception.

FirstWave Cloud Technology to Release 1 Million Shares from Escrow

FirstWave Cloud Technology Limited announced the release of 1,000,000 fully paid ordinary shares from voluntary escrow on April 30, 2025. These shares were initially issued to Pitt Street Research Pty Ltd for research services, with the release marking a significant step in the company’s share management strategy.

FirstWave Announces Q3 FY25 Investor Update Webinar

FirstWave Cloud Technology Limited will host an investor update webinar on April 30, 2025, to discuss its Q3 FY25 Quarterly Activity Report. The session, led by key company executives, will include a presentation followed by a Q&A session, providing stakeholders with insights into the company’s recent activities and future plans.