FirstWave Cloud Technology Ltd. (AU:FCT)
ASX:FCT
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FirstWave Cloud Technology
(Sydney:FCT)
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Rating:51Neutral
Price Target:
AU$0.01
▲(0.00% Upside)
Action:ReiteratedDate:03/24/26
The score is driven primarily by mixed financial performance: improving margins, narrowing losses, low leverage, and a return to slightly positive cash flow are positives, but recent revenue declines and ongoing unprofitability remain key risks. Technical and valuation inputs are constrained by missing indicators and a non-meaningful negative P/E.
Positive Factors
Balance Sheet Strength
Low leverage and sizable equity provide durable financial flexibility, limiting near-term solvency risk and supporting investment in the AI pivot. This balance sheet headroom reduces refinancing pressure, enabling the company to fund product development and sales expansion without immediate dilutive capital raises.
Negative Factors
Revenue decline and volatility
Sustained revenue weakness and volatility undermine scale benefits and constrain the firm’s ability to monetise its installed base. Declining top line reduces operating leverage, limits reinvestment capacity for sales/engineering, and makes achieving consistent profitability and predictable cash flow materially harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Low leverage and sizable equity provide durable financial flexibility, limiting near-term solvency risk and supporting investment in the AI pivot. This balance sheet headroom reduces refinancing pressure, enabling the company to fund product development and sales expansion without immediate dilutive capital raises.
Read all positive factors
FirstWave Cloud Technology (FCT) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$8.51M
Dividend YieldN/A
Average Volume (3M)4.28M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-22.47%
EPS Growth39.26%
CountryAU
EmployeesN/A
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 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 cu...
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 Technical Analysis
Negative
0.01
Price Trends
0.01
Negative
0.02
Negative
0.02
Negative
Market Momentum
>-0.01
Negative
43.42
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | AU$8.51M | -1.21 | -15.64% | ― | -22.47% | 39.26% | |
45 Neutral | AU$30.17M | -17.78 | -64.64% | 4.99% | -38.38% | -275.50% | |
45 Neutral | AU$6.44M | -3.48 | -658.94% | ― | 13.07% | 68.60% | |
42 Neutral | AU$8.52M | -1.59 | -347.64% | ― | ― | ― |
* Technology Sector Average
AU:FCT
FirstWave Cloud Technology
0.01
0.00
0.00%
AU:SEN
Senetas Corporation Limited
1.82
-0.09
-4.71%
AU:BEO
SkyFii Limited
0.13
-0.07
-35.90%
AU:WHK
WhiteHawk Ltd.
0.01
-0.01
-50.00%
FirstWave Cloud Technology Corporate Events
FirstWave calls April EGM, shifts shareholders to digital voting and notices
Mar 12, 2026
FirstWave Cloud Technology has called an Extraordinary General Meeting for 12:00 p.m. AEST on 10 April 2026 in Sydney, to be held as a physical gathering supplemented by a webinar. The company is providing shareholders with digital access to the n...
FirstWave wins CSIRO-backed funding to fast-track AI compliance software
Feb 5, 2026
FirstWave Cloud Technology has secured $264,982 in co-funded support under CSIRO’s Regional University Industry Collaboration program to accelerate the commercial rollout of AI-powered network intelligence and compliance software, partnering...
FirstWave Schedules Q2 FY26 Investor Webinar to Brief Market
Feb 2, 2026
FirstWave Cloud Technology has scheduled an investor update webinar for 9.30am (AEDT) on Friday 6 February 2026, to discuss its Q2 FY26 performance following the release of its Quarterly Activity Report and cashflow update. The 20-minute presentat...
FirstWave Clarifies Quarterly Cash Flows as It Pivots to AI-Powered Compliance
Jan 30, 2026
FirstWave Cloud Technology has updated its latest quarterly activities report and cash flow disclosure, clarifying that A$95,000 in related-party payments during the December 2025 quarter comprised directors’ fees made in the ordinary course...
FirstWave Restructures, Raises Capital and Pivots to AI Compliance to Drive Cash-Flow Growth
Jan 30, 2026
FirstWave Cloud Technology has undertaken a significant operational and strategic reset in the December 2025 quarter, centred on restructuring its cost base, strengthening its balance sheet and pivoting its product focus toward AI-powered complian...
FirstWave admits late director interest filings, calls delay an isolated error
Jan 23, 2026
FirstWave Cloud Technology has disclosed that share appreciation rights granted to three directors following shareholder approval at its 2025 annual general meeting were notified to the market later than required due to an administrative error. Wh...
FirstWave Grants 20 Million Share Appreciation Rights to Director David Garnier
Jan 23, 2026
FirstWave Cloud Technology has announced a change in director David Guy Garnier’s interests, with the issue of 20 million Share Appreciation Rights to him (via his associated entity New Insights Australia Pty Ltd) for nil consideration. The ...
FirstWave Director Awarded 20 Million Share Appreciation Rights After Shareholder Approval
Jan 23, 2026
FirstWave Cloud Technology has disclosed a change in director Roger Buckeridge’s interests, with his related entity Myamyn Ventures Pty Ltd, as trustee for Myamyn Ventures Trust, being issued 20,000,000 Share Appreciation Rights at nil consi...
FirstWave Director Daniel Maher Granted 20 Million Additional Share Appreciation Rights
Jan 23, 2026
FirstWave Cloud Technology has disclosed a change in the interests of director Daniel Maher, who holds both direct and indirect stakes in the company’s securities. The filing shows Maher has been issued 20 million additional Share Appreciati...
FirstWave Issues 60 Million Unquoted Share Appreciation Rights
Jan 23, 2026
FirstWave Cloud Technology has notified the market of a new issue of 60 million unquoted share appreciation rights (SARs), effective 23 December 2025. The issuance of these SARs, which do not trade on the ASX, appears to be part of the companyR...
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...
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 ...
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 it...
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.