Etherstack’s AT&T Contract to Add $4M Revenue in FY2025

A Landmark Deal for Etherstack

Etherstack plc, a specialist in mission-critical wireless communication technologies, has announced a major milestone through its US subsidiary, Etherstack Inc. The company has entered into a Master Supply Agreement (MSA) with AT&T Services Inc., one of the largest telecommunications providers in the United States. This agreement marks a significant endorsement of Etherstack’s Push-to-Talk Critical (MCPTT) and LMR-InterWorking Function (LMR-IWF) technologies, which are essential for secure, reliable communications in demanding environments.

Contract Details and Financial Impact

The initial term of the MSA spans seven years, with options for extensions contingent on satisfactory performance. Under the agreement, Etherstack is guaranteed a minimum of US$2.5 million annually from support and professional services, with additional variable fees expected based on service requests and subscriber volumes. While these variable fees are not yet quantified, they represent a potential upside beyond the fixed minimum.

For the current financial year ending December 31, 2025, Etherstack anticipates the contract will contribute around US$4 million in revenue. Notably, US$2.37 million has already been recognised in the first half of 2025, reflecting the contract’s immediate impact on the company’s financials.

Strategic Significance and Market Positioning

This agreement with AT&T not only secures a steady revenue stream for Etherstack but also reinforces its position in the competitive telecommunications equipment sector. The company’s focus on mission-critical communications, serving sectors such as public safety, transportation, and utilities, aligns well with AT&T’s expansive network and customer base. The deal underscores Etherstack’s technological relevance and its ability to meet the rigorous demands of large-scale operators.

Etherstack’s global footprint, with offices and R&D facilities spanning Australia, the US, Japan, and the UK, supports its capacity to deliver and maintain complex telecommunications solutions. The partnership with AT&T could open doors to further opportunities within the US market and beyond.

Looking Ahead

While the guaranteed minimum revenue provides a solid foundation, the variable fees linked to subscriber growth and service requests introduce an element of revenue variability. The terms for contract extensions remain performance-dependent, adding a layer of uncertainty but also potential for continued collaboration. Investors will be watching closely to see how this relationship evolves and how Etherstack leverages this foothold with a major US operator.