Want to see AU:FCT full AI Analyst Report?
Top Page
FirstWave Cloud Technology
(Sydney:FCT)
Select Model
Select Model
Rating:51Neutral
Price Target:
AU$0.01
▲(0.00% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily driven by mixed financial performance: a strong low-leverage balance sheet and improved FY2025 cash flow/profitability trends are offset by revenue contraction and continued net losses. With limited technical data available and a negative P/E reflecting unprofitability (and no dividend yield provided), the overall profile remains moderate rather than strong.
Positive Factors
Low-Leverage Balance Sheet
Consistently low leverage and sizable equity provide durable financial flexibility. This reduces refinancing and solvency risk, supports continued R&D or go-to-market investment without urgent external funding, and anchors the firm's ability to weather near-term operating shortfalls.
Negative Factors
Revenue Contraction
Consecutive revenue declines undermine scale and make fixed-cost absorption harder, pressuring margins and growth prospects. Without a durable reversal, shrinking top-line limits operating leverage, raises relative R&D/SG&A intensity, and increases reliance on external capital to fund strategy.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-Leverage Balance Sheet
Consistently low leverage and sizable equity provide durable financial flexibility. This reduces refinancing and solvency risk, supports continued R&D or go-to-market investment without urgent external funding, and anchors the firm's ability to weather near-term operating shortfalls.
Read all positive factors
FirstWave Cloud Technology (FCT) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$14.89M
Dividend YieldN/A
Average Volume (3M)4.28M
Price to Earnings (P/E)―
Beta (1Y)0.02
Revenue Growth-19.91%
EPS Growth35.34%
CountryAU
Employees41
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)>-0.01
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 Description
Firstwave Cloud Technology Limited, an Australian enterprise, specializes in the development and global distribution of internet security software. Its product portfolio includes CyberCision, a comprehensive platform-as-a-service for various secur...
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.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).
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.
Read all updates
Q2-2026 Updates
Positive
Negative
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).
Read all positive updates
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
Income Statement
34
Negative
Balance Sheet
71
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.91M | 8.74M | 11.28M | 12.49M | 9.35M | 7.98M |
| Gross Profit | 4.37M | 7.70M | 8.80M | 5.50M | 2.58M | 4.30M |
| EBITDA | -2.38M | -3.96M | -23.27M | -10.18M | -11.14M | -10.33M |
| Net Income | -3.79M | -3.60M | -23.04M | -13.45M | -13.46M | -10.81M |
Balance Sheet | ||||||
| Total Assets | 29.41M | 38.74M | 41.87M | 63.33M | 76.74M | 24.88M |
| Cash, Cash Equivalents and Short-Term Investments | 359.15K | 364.03K | 1.81M | 5.74M | 10.54M | 10.10M |
| Total Debt | 2.50M | 2.42M | 2.38M | 260.43K | 367.57K | 632.99K |
| Total Liabilities | 10.24M | 9.38M | 9.66M | 10.90M | 11.58M | 10.01M |
| Stockholders Equity | 19.17M | 29.36M | 32.21M | 52.43M | 65.16M | 14.87M |
Cash Flow | ||||||
| Free Cash Flow | -2.25M | 165.84K | -3.54M | -4.67M | -11.21M | -11.87M |
| Operating Cash Flow | -2.24M | 171.38K | -3.47M | -1.76M | -8.00M | -8.05M |
| Investing Cash Flow | -1.98M | -2.10M | -2.66M | -2.91M | -2.25M | -3.83M |
| Financing Cash Flow | 3.26M | 512.52K | 2.20M | -130.94K | 10.70M | 6.55M |
FirstWave Cloud Technology Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | AU$32.08M | -119.64 | -1.84% | ― | 34.48% | -165.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | AU$4.26B | -154.17 | -5.99% | ― | 23.32% | -403.83% | |
55 Neutral | AU$54.71M | -2.01 | -64.64% | 4.99% | -63.89% | -609.31% | |
51 Neutral | AU$14.89M | -3.18 | -15.64% | ― | -19.91% | 35.34% | |
43 Neutral | AU$12.94M | -0.54 | -346.49% | ― | 6.70% | 33.88% | |
43 Neutral | AU$4.60M | -1.65 | -625.11% | ― | 2.54% | 56.90% |
* Technology Sector Average
AU:FCT
FirstWave Cloud Technology
0.01
-0.01
-50.00%
AU:MP1
Megaport
19.53
4.83
32.85%
AU:SEN
Senetas Corporation Limited
3.25
1.55
90.84%
AU:CYB
Sovereign Cloud Holdings Ltd.
0.06
-0.02
-22.50%
AU:RTH
RAS Technology Holdings Limited
0.70
-0.30
-30.00%
AU:WHK
WhiteHawk Ltd.
0.01
0.00
0.00%
FirstWave Cloud Technology Corporate Events
FirstWave posts cash-flow-positive quarter as compliance-led contracts and AI gateway deal build momentum
Jul 30, 2026
FirstWave reported a cash-flow-positive June quarter, delivering an operating cash inflow of A$605,000 and ending with A$1.331 million in cash, as higher customer receipts and a reduced cost base improved its financial position. Management highlig...
FirstWave Extends Telstra Cybersecurity Deal With Australian Federal Agencies
Jul 7, 2026
FirstWave Cloud Technology has secured a 12-month extension to its agreement with Telstra to supply Information Security Manual-compliant email security via its CyberCision platform to several Commonwealth Government agencies, starting July 2026. ...
FirstWave appoints PKF Brisbane Audit Pty Ltd as new external auditor
Jun 22, 2026
FirstWave Cloud Technology has appointed PKF Brisbane Audit Pty Ltd, an authorised audit company, as its new external auditor in line with ASX Listing Rule 3.16.3. The move follows an internal restructuring at PKF, which is shifting audit work fro...
FirstWave Tightens Disclosure Controls After ASX Query on Webinar Data
Jun 5, 2026
FirstWave Cloud Technology has responded to an ASX Aware Letter, acknowledging that cash balance and revenue metrics disclosed during a 28 May shareholder webinar were material and could influence the price of its securities. The company said thes...
FirstWave boosts cash, revenue and wins key government deals in Q3 FY26
May 28, 2026
FirstWave Cloud Technology reported a strong third quarter for FY26, with net operating cash inflow of A$1.4 million, customer receipts of A$2.01 million, and quarterly revenue of A$1.48 million at a 94% gross margin. Annual recurring revenue reac...
FirstWave Schedules Shareholder Webinar on Q3 Results and Product Outlook
May 25, 2026
FirstWave Cloud Technology has announced a shareholder webinar to be held on 28 May 2026, where management will present its third-quarter FY26 financial results and provide a product update. The session, led by the chair, CEO and VP of products, w...
FirstWave defends timing of Services Australia contract disclosure to ASX
May 22, 2026
FirstWave Cloud Technology has detailed its response to an ASX query over the timing of its disclosure of a Services Australia purchase order for software licences and professional services. The company said it first became aware of the executed o...
FirstWave Seeks Trading Halt Ahead of Material Contract Announcement
May 13, 2026
FirstWave Cloud Technology has requested an immediate trading halt in its securities on the ASX, pending a forthcoming announcement. The halt, granted under ASX Listing Rule 17.1, is scheduled to remain in place until either the release of the ann...
FirstWave Issues 89.8 Million Unquoted Warrants in Capital Structure Move
May 4, 2026
FirstWave Cloud Technology has notified the market of the issue of 89,750,723 unquoted warrants exercisable at A$0.018 each, with a five-year term from the date of issue on 15 April 2026. The warrants form part of a previously announced transactio...
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.