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Pentanet Limited (ASX:5GG)

ALERT: Price-sensitive ASX Announcement for 5GG
Current share price for 5GG : $0.013 -0.01 (-43.48%)+
Announcement
Release
4 Sep 2026 8:19AM
Price at Release
$0.023
Full Release
download
Summary
Pentanet Limited’s FY26 Results Presentation and Strategy Update outlines improved operating performance for the year ended 30 June 2026, driven by growth in higher-margin cloud gaming under its ASX:5GG listing. Group revenue rose 8% to $24.4 million, Group EBITDA increased 74% to $2.4 million, and operating cash flow improved 17% to $1.6 million, while the company ended with $1.5 million cash at bank; however, reported NPAT declined to a $6.9 million loss due mainly to a $4.0 million Gen 2 cloud gaming impairment, with the underlying loss excluding impairment improving to $2.9 million. The telco segment remained a resilient recurring-revenue base, with revenue up 7% to $21.6 million, EBITDA up 5% to $2.0 million, 18,936 total subscribers at 30 June 2026, low average monthly churn of 1.3%, and growth in higher-margin 5G subscribers. The presentation positions cloud gaming via CloudGG and Pentanet’s exclusive NVIDIA GeForce NOW Alliance Partnership in Australia and New Zealand as the primary growth engine, with gaming revenue up 16% to $2.8 million, gross margin expanding to 68%, and segment EBITDA up 61% to $1.7 million; management highlights 840,000 registered users, about 10,000 monthly active paying users, 83,000 users who have paid historically, and sees substantial upside from premium tier adoption, rising gaming hardware costs, and Blackwell GPU expansion. Strategically, Pentanet intends to use telco as a cash-generating base, hold fixed wireless without further expansion, enable national low-overhead NBN products for CloudGG users, and prioritise incremental deployment of NVIDIA Blackwell GPU capacity, with a roadmap from upgrading capacity and launching an RTX 5080 flagship plan through to scaling paid users from 10,000 to 20,000 and ultimately 20,000 to 100,000, targeting a meaningful and profitable GPU infrastructure footprint.
Key Points
  • FY26 covers the financial year ended 30 June 2026.
  • Pentanet Limited reported Group revenue of $24.4 million, up 8% on the prior corresponding period.
  • Group EBITDA increased 74% to $2.4 million.
  • Operating cash flow rose 17% to $1.6 million and cash at bank was $1.5 million.
  • Reported loss after tax widened to $6.9 million due to a $4.0 million Gen 2 impairment.
  • Underlying loss excluding the impairment improved to $2.9 million.
  • Cloud gaming revenue increased 16% to $2.8 million.
  • Cloud gaming gross margin expanded to 68% and segment EBITDA rose 61% to $1.7 million.
  • Gaming contributed 46% of Group EBITDA before corporate costs, up from 35% in FY25.
  • Pentanet is the sole NVIDIA GeForce NOW Alliance Partner in Australia and New Zealand.
  • The company said it was in advanced negotiations with NVIDIA to acquire additional Blackwell servers.
  • CloudGG had 840,000 registered users and around 10,000 monthly active paying users.
  • About 83,000 users have used a paid gaming plan historically.
  • Gaming ARPU increased to $24 per month and Ultimate plan users rose to 59% of the paying base.
  • Telco segment revenue increased 7% to $21.6 million and segment EBITDA rose 5% to $2.0 million.
  • Total telco subscribers reached 18,936 at 30 June 2026, up 4% on the prior corresponding period.
  • Higher-margin 5G subscribers increased 15% and average monthly churn was 1.3%.
  • Pentanet’s strategy is to use telco as a predictable cash engine to fund GPU expansion.
  • Fixed wireless is being maintained rather than expanded.
  • NBN enablement is intended to provide national reach and low-touch revenue growth for CloudGG users.
  • The strategic priority is to incrementally expand NVIDIA Blackwell GPU capacity in line with demand.
  • The roadmap targets growth from 10,000 to 20,000 paid users and then from 20,000 to 100,000 paid users.
  • The long-term goal is to build a meaningful scaled NVIDIA GPU deployment.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.