FirstWave Cloud Technology (FCT) AI Stock Analysis

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FirstWave Cloud Technology

(Sydney:FCT)

Select Model

Neutral 42 (OpenAI - 4o)

Rating:42Neutral

Price Target:

AU$0.01

▲(0.00% Upside)

Action:ReiteratedDate:11/12/25

FirstWave Cloud Technology's overall stock score is primarily impacted by its financial instability, as evidenced by declining revenues and negative profitability margins. Technical indicators also suggest a bearish trend, with the stock trading below key moving averages and weak momentum signals. The negative P/E ratio further underscores the company's financial challenges.

Positive Factors

Business Model Strength

The subscription-based model provides predictable and recurring revenue streams, enhancing financial stability and allowing for better cash flow management over time.

Partnerships and Market Reach

Strategic partnerships expand market reach and customer base, potentially driving revenue growth and enhancing competitive positioning in the cybersecurity sector.

Technological Innovation

Utilizing advanced technologies like AI and machine learning strengthens product offerings, providing a competitive edge in the rapidly evolving cybersecurity industry.

Negative Factors

Declining Revenue

A negative revenue growth rate indicates challenges in market demand or competitive pressures, which could impact long-term financial health and market positioning.

Negative Profitability Margins

Negative margins reflect operational inefficiencies and financial instability, necessitating strategic improvements to enhance profitability and shareholder value.

Cash Flow Constraints

Severe cash flow constraints limit the company's ability to invest in growth opportunities and may hinder operational flexibility, impacting long-term sustainability.

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

Market Cap

AU$10.63M

Dividend YieldN/A

Average Volume (3M)4.28M

Price to Earnings (P/E)―

Beta (1Y)0.64

Revenue Growth-22.47%

EPS Growth39.26%

CountryAU

EmployeesN/A

SectorTechnology

Sector Strength88

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)N/A

Shares Outstanding2,126,880,900

10 Day Avg. Volume9,736,455

30 Day Avg. Volume4,282,122

Financial Highlights & Ratios

PEG Ratio0.09

Price to Book (P/B)0.93

Price to Sales (P/S)3.13

P/FCF Ratio165.22

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 Earnings Call Summary

Earnings Call Date:Feb 27, 2026

(Q2-2026)

Next Earnings Date:Aug 28, 2026

Earnings Call Sentiment Positive

The call emphasized meaningful operational and product progress: ARR growth (+2%), a very high gross margin (95%), successful launch of Open-AudIT 6 with rapid user growth (~50% increase to ~39,000 active users), early commercial traction (5,991 downloads, 6% trial conversion, 194 leads), a $2.6M net capital raise and a $2.5M loan facility, plus a strategic CSIRO/University AI collaboration with IP retained. Offsetting these positives are Q2 cash burn from restructuring, early-stage monetization (few initial paid conversions), a short-term decline in revenue explained by a one-off $380k sale in Q1, and pronounced share-price weakness driven partly by investor overhang and limited near-term public guidance. Management expects Q3 to be cash-positive and is focused on converting high lead volumes into enterprise deals. Overall, operational indicators and strategic initiatives appear to outweigh the near-term financial and market challenges.

Q2-2026 Updates

Positive Updates

ARR Growth

Annual Recurring Revenue (ARR) increased by 2% in Q2 driven by uplifts from existing customers and some small new customers, with churn materially reduced in the cyber business following stabilization of Telstra contract (new 1+1-year agreement).

High Gross Profit Margin

Gross profit margin at 95%, reflecting high margins in NMIS and Open-AudIT and improved profitability in the CyberCision business after removal of unprofitable ARR.

Restructuring Savings

Completed a business restructure delivering approximately $1.8 million per annum in run-rate savings (with associated one-time on-costs impacting Q2 cash burn).

Capital Raise and Financing

Raised $2.6 million net of costs and secured a $2.5 million, 3-year loan facility (matures 17 Dec 2028) used primarily to repay the Formue Nord convertible note, strengthening near-term funding.

Open-AudIT 6 Launch and AI Pivot

Released Open-AudIT 6 (AI-powered compliance management) to early adopters and publicly on 1 December; positions company pivot toward AI-driven compliance across product suite.

User and Engagement Growth

New commercial Open-AudIT site grew from under 200 users to ~20,000; legacy site activity shifted (26,000 -> 19,000) implying migration; combined active users across platforms reached ~39,000 (≈50% increase versus pre-launch).

Early Commercial Traction

Open-AudIT 6 recorded 5,991 explicit downloads, commercial trials converting at ~6% from free users, 194 leads currently in nurture, and first paid activations: 2 in Europe and 1 in Australia.

Research Collaboration and IP Control

Secured CSIRO and University of Sunshine Coast collaboration providing a full-time AI/ML expert, access to additional AI designers/developers and cyber labs to accelerate ML work on NMIS; intellectual property developed in the project is retained by the company.

Receivables and Near-Term Cash Outlook

Receivables of $2.5 million as at 31 Dec, with over $1 million already collected; management expects Q3 to be cash flow positive due to seasonal contract renewals and received funding.

Sales & GTM Strengthening

Focused push on North America and Europe with sales leadership strengthened (Craig Nelson returned to San Francisco) and efforts to monetize large enterprise opportunities where the company is more competitive.

Negative Updates

Quarterly Revenue Reduction from One-Off

Reported revenue reduction versus Q1 largely attributable to a single one-off perpetual software license sale of $380,000 that occurred in Q1, affecting comparatives for Q2 revenue and gross profit.

Share Price Weakness and Investor Overhang

Share price declined to levels described as roughly 1x ARR plus working capital; selling pressure exacerbated by institutional moves (Perennial/Balmoral sale) and other short-term overhangs, prompting management to consider IR initiatives.

Early Stage Monetization and Slow Enterprise Cycle

Commercial monetization of Open-AudIT is early stage: conversion rate ~6% from free users, only 3 initial professional license purchases reported, and management notes enterprise sales cycles are still lengthy.

Q2 Cash Burn and Restructuring Costs

Q2 experienced elevated cash burn driven by restructuring one-time costs and shifts in R&D timing; management describes Q2 as a down cash cycle though expects Q3 to reverse seasonally.

Slightly Behind Short-Term Revenue Targets

Management acknowledged being slightly behind revenue targets (fewer new customers in January than planned) despite being ahead on other metrics such as leads and engagement.

Limited Forward Guidance and Transparency

Management declined to provide explicit revenue or ARR forecasts and withheld a specific Q3 closing cash balance in the call, which may leave investors seeking clearer near-term financial guidance.

External Uncertainty Risks

Macro/policy uncertainty (e.g., U.S. policy impacts on customers like John Deere and NASA) was noted as creating potential timing and budget risks for some large customers, described as a mixed/uncertain impact on sales.

Need for Increased Market Visibility

Management identified the need to strengthen investor relations and market visibility (IR proposals under consideration) because execution and news flow are required to drive a share price re-rating.

Company Guidance

Management guided that Q3 will be cash‑positive, expecting to collect the ~$2.5M of receivables as at Dec 31 (already >$1M received), and said the company has sufficient funds for the foreseeable future after a $2.6M capital raise (net of costs) and a new $2.5M, three‑year loan facility maturing 17 Dec 2028 (used to repay the Formue Nord note); operationally ARR grew 2%, gross profit margin is ~95%, restructuring will deliver ~$1.8M p.a. in savings (with further on‑cost savings), and the Q1→Q2 revenue decline reflected a one‑off $380k perpetual license in Q1; Open‑AudIT 6 metrics driving the outlook include 5,991 downloads, ~39,000 active users across both platforms in two months (a 50% increase), ~20,000 users on the new site (legacy sites ~19,000 after migration), ~194 open leads, a 6% conversion rate from free users to commercial trials, and three initial paid enterprise activations (2 Europe, 1 Australia).

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 level, inefficiencies in asset utilization and profitability are evident, necessitating strategic improvements.

Income Statement

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

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

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.

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

FirstWave Cloud Technology Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.01

Price Trends

50DMA

0.01

Negative

100DMA

0.02

Negative

200DMA

0.02

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

43.42

Neutral

STOCH

50.00

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 above the 20-day moving average (MA) of <0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEN	48 Neutral	AU$33.98M	-1.19	-64.51%	4.99%	-38.38%	-275.50%
WHK	44 Neutral	AU$5.52M	-2.63	―	―	13.07%	68.60%
FCT	42 Neutral	AU$10.63M	-1.22	-54.62%	―	-22.47%	39.26%

* Technology Sector Average

Performance Comparison

AU:FCT

FirstWave Cloud Technology

0.01

-0.01

-50.00%

AU:SEN

Senetas Corporation Limited

2.05

-0.34

-14.23%

AU:BEO

SkyFii Limited

0.16

-0.04

-18.42%

AU:WHK

WhiteHawk Ltd.

0.01

0.00

0.00%

FirstWave Cloud Technology Corporate Events

FirstWave Issues 120m Shares Under Cleansing Notice, Confirms Regulatory Compliance

Dec 31, 2025

FirstWave Cloud Technology has issued 120 million fully paid ordinary shares under Australian securities law without a disclosure document, confirming it remains compliant with financial reporting and continuous disclosure obligations. The company also stated that there is no excluded information that would need to be disclosed to investors, signalling that the capital issuance is being conducted within standard regulatory parameters and without undisclosed material information that might affect shareholder interests.

The most recent analyst rating on (AU:FCT) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on FirstWave Cloud Technology stock, see the AU:FCT Stock Forecast page.

FirstWave Seeks ASX Quotation for 120 Million New Shares

Dec 31, 2025

FirstWave Cloud Technology Limited has applied to the ASX for quotation of 120 million new fully paid ordinary shares, with an issue date of 31 December 2025. The large share issuance, disclosed via an Appendix 2A filing, represents a significant capital move that may affect the company’s share structure and liquidity, potentially supporting future operational or strategic initiatives and altering the holdings of existing shareholders.

FirstWave Secures A$2.5m PFG Facility and Retires Fenja Debt to Back AI Compliance Pivot

Dec 31, 2025

FirstWave Cloud Technology has secured a A$2.5 million senior secured loan facility from global credit investor Partners for Growth VII, L.P., bolstering its access to growth capital following a recent A$2.85 million equity raise and supporting its strategic pivot to AI-powered compliance management and monetisation of its large open‑source user base. The new facility, which features a 12.5% fixed interest rate, staged amortisation, and equity-linked options for PFG, replaces a costlier arrangement with Fenja Capital Partners, whose debt has been largely settled through a A$2.4 million cash payment and the issue of 120 million new shares, simplifying FirstWave’s capital structure and potentially improving its financial flexibility as it pursues its next phase of growth.

FirstWave Cloud Technology Announces Change in Substantial Holders

Dec 10, 2025

FirstWave Cloud Technology Ltd has announced a change in its substantial holders, with Perennial Value Management Limited ceasing to be a substantial holder as of December 8, 2025. This change involved HSBC selling shares worth $878,421.35, affecting 176,071,628 ordinary securities and votes, which may impact the company’s shareholder structure and market perception.

FirstWave Cloud Technology Issues Unquoted Equity Securities

Dec 5, 2025

FirstWave Cloud Technology Limited announced the issuance of 33,105,567 unquoted equity securities, as part of previously announced transactions. This move is likely aimed at strengthening the company’s financial position and supporting its strategic initiatives in the competitive cloud technology market.

FirstWave Cloud Technology Issues New Shares, Complies with Corporations Act

Dec 5, 2025

FirstWave Cloud Technology Limited has announced the issuance of 99,316,648 fully paid ordinary shares without disclosure to investors under the Corporations Act. The company confirms compliance with relevant provisions of the Corporations Act and states there is no excluded information as per the Act. This move is expected to impact the company’s financial operations and market positioning, potentially influencing stakeholder interests.

FirstWave Cloud Technology Secures Shareholder Approval at AGM

Nov 28, 2025

FirstWave Cloud Technology announced that all resolutions were passed by shareholders at its Annual General Meeting, including the adoption of the Remuneration Report and the election of new directors. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued strategic growth and operational stability.

FirstWave Unveils AI-Powered Security Compliance Software

Nov 24, 2025

FirstWave Cloud Technology is set to host a webinar to introduce its new AI-powered security compliance software, highlighting its strategic direction and competitive positioning in the market. The software, which will be available globally, features advancements in compliance capabilities, AI insights, and automation, potentially enhancing FirstWave’s standing in the cybersecurity industry.

FirstWave Cloud Technology Announces Virtual AGM for 2025

Oct 30, 2025

FirstWave Cloud Technology Limited has announced that its Annual General Meeting (AGM) will be held virtually on November 28, 2025. The meeting will provide shareholders with updates on the company’s operations and strategic direction. This virtual format aligns with modern practices and ensures broader accessibility for stakeholders, reflecting FirstWave’s commitment to leveraging technology to enhance shareholder engagement.

FirstWave Cloud Technology Announces Share Issuance and Loan Negotiations

Oct 24, 2025

FirstWave Cloud Technology Limited announced the issuance of 3,362,162 fully paid ordinary shares without investor disclosure under the Corporations Act. The company is also in the process of finalizing a $2.5 million loan facility with a global credit investor, though terms are not yet finalized. This move could impact FirstWave’s financial operations and market positioning, though there is no certainty the transaction will proceed as currently planned.

FirstWave Cloud Technology Expands Market Presence with New Securities Quotation

Oct 24, 2025

FirstWave Cloud Technology Limited announced the quotation of 3,362,162 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of October 24, 2025. This move reflects the company’s strategic efforts to enhance its market presence and provide additional liquidity to its stakeholders, potentially strengthening its financial position and investor confidence.

FirstWave Cloud Technology to Release 1 Million Shares from Escrow

Oct 17, 2025

FirstWave Cloud Technology announced the release of 1,000,000 fully paid ordinary shares from voluntary escrow on October 31, 2025. These shares were initially issued to Pitt Street Research Pty Ltd for research services, and their release marks the end of a 12-month escrow period. This development may impact the company’s stock liquidity and investor interest.

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: Nov 12, 2025