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FirstWave Cloud Technology Ltd. (AU:FCT)
ASX: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)

Rating:45Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The financial performance is the most significant factor, heavily weighing down the overall score due to ongoing losses and negative cash flows. Technical analysis offers limited positive momentum but is offset by valuation concerns with a negative P/E ratio and no dividend yield. Strategic improvements are essential for future growth and stability.

FirstWave Cloud Technology (FCT) vs. iShares MSCI Australia ETF (EWA)

FirstWave Cloud Technology Business Overview & Revenue Model

Company DescriptionFirstWave Cloud Technology (FCT) is a global cybersecurity company specializing in delivering innovative, cloud-based security solutions. Operating within the technology sector, FCT offers a comprehensive suite of products and services designed to protect businesses from cyber threats. Their offerings include cloud email security, web security, and firewall management solutions, which are tailored to meet the needs of managed service providers and telecommunication companies around the world.
How the Company Makes MoneyFirstWave Cloud Technology generates revenue primarily through a subscription-based model, offering its cybersecurity solutions as a service. Key revenue streams include fees from managed service providers and telecommunications companies that utilize FCT's platform to safeguard their clients' digital environments. The company also benefits from strategic partnerships with global technology firms, which enhance its market reach and drive sales growth. Additionally, FCT's focus on continuous innovation and expansion into new markets further contributes to its revenue generation.

FirstWave Cloud Technology Financial Statement Overview

Summary
The company faces significant financial challenges with negative revenue growth, high operating losses, and negative cash flows. Despite an improved gross profit margin and a strong equity base, the net profit margin and cash flow management are concerning, requiring strategic actions for stability.
Income Statement
35
Negative
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
45
Neutral
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
30
Negative
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue11.28M12.49M9.35M7.98M8.25M
Gross Profit8.80M5.50M2.58M4.30M-2.55M
EBITDA-4.87M-8.17M-12.50M-13.09M-14.66M
Net Income-23.04M-13.45M-13.46M-10.81M-13.78M
Balance Sheet
Total Assets41.87M63.33M76.74M24.88M25.25M
Cash, Cash Equivalents and Short-Term Investments1.81M5.74M10.54M10.10M15.28M
Total Debt2.38M260.43K367.57K632.99K464.27K
Total Liabilities9.66M10.90M11.58M10.01M9.89M
Stockholders Equity32.21M52.43M65.16M14.87M15.35M
Cash Flow
Free Cash Flow-3.54M-4.67M-11.21M-11.87M-12.45M
Operating Cash Flow-3.47M-1.76M-8.00M-8.05M-8.70M
Investing Cash Flow-2.66M-2.91M-2.25M-3.83M-3.75M
Financing Cash Flow2.20M-130.94K10.70M6.55M19.67M

FirstWave Cloud Technology Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.02
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Positive
200DMA
0.02
Positive
Market Momentum
MACD
<0.01
Positive
RSI
59.53
Neutral
STOCH
138.89
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 equal to the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 138.89 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
AU$1.68B2.26-31.66%3.52%16.55%-7.79%
46
Neutral
AU$9.27M
16.26%62.58%
45
Neutral
AU$29.99M-54.77%-14.50%-77.33%
41
Neutral
AU$33.12M-31.58%22.29%64.62%
36
Underperform
AU$11.64M-347.17%-5.53%-50.00%
32
Underperform
AU$5.13M
7.02%-44.64%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:FCT
FirstWave Cloud Technology
0.02
0.00
0.00%
AU:SEN
Senetas Corporation Limited
0.02
0.00
0.00%
AU:NET
NetLinkz Ltd.
0.01
0.00
0.00%
AU:EAT
IncentiaPay Ltd.
AU:WHK
WhiteHawk Ltd.
0.01
-0.01
-50.00%

FirstWave Cloud Technology Corporate Events

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.

FirstWave Cloud Technology Reports Q3 FY25 Results and Strategic Developments
Apr 30, 2025

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.

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: Jul 23, 2025