Etherstack H1 2025 Revenue Hits USD 6.1m, EBITDA Up 1537%
Etherstack plc has delivered a record half year performance in H1 2025, driven by a landmark multi-year contract with AT&T and surging recurring revenues. The wireless communications specialist is poised for sustained growth across its core markets.
- Half year revenue up 87% to USD 6.1 million
- EBITDA jumps 1537% to USD 2.543 million
- Seven-year AT&T contract fuels Communications As A Service (CaaS) growth
- Recurring revenues now 87% of total, with strong retention rates
- Robust balance sheet supports ongoing R&D and expansion
Record Half Year Growth
Etherstack plc (ASX, ESK) has reported a stellar first half for 2025, with revenue climbing 87% year-on-year to USD 6.1 million and EBITDA surging over fifteen-fold to USD 2.543 million. This performance eclipses the company’s full year revenue for 2024, underscoring the accelerating momentum behind its wireless communications technology.
The standout catalyst is a newly inked seven-year Master Service Agreement with AT&T, one of the world’s largest telecommunications providers. This contract, signed in August 2025, guarantees a minimum annual contribution of USD 2.5 million and introduces a Communications As A Service (CaaS) revenue stream that is expected to grow as project deployments progress.
Diverse and Sticky Revenue Streams
Etherstack’s business model spans three core markets, Digital Land Mobile Radio (LMR) networks, Mission Critical Push to Talk (MCPTX) over cellular networks, and Satellite Push to Talk alongside Defence Systems. The company licenses technology to over 20 global equipment manufacturers and supports critical communications for public safety, utilities, and resource sectors.
Recurring revenues, including support contracts and royalties, now represent 87% of total revenue, reflecting high customer retention and long-term contracts with major clients such as Samsung, Rio Tinto, and various government agencies. This recurring revenue base provides a solid foundation for sustainable growth and margin expansion.
Strong Financial Position and Strategic Outlook
Etherstack’s balance sheet remains robust, with cash and equivalents rising to USD 1.67 million at June 30, 2025, supported by strong operating cash flow. The company continues to invest prudently in research and development, enhancing its intellectual property and competitive edge in mission critical communications technology.
Looking ahead, Etherstack is advancing multiple strategic initiatives including expanding cellular network deployments, upgrading defence communications solutions, and integrating its technology into satellite network terminals. The company’s global footprint, with R&D offices in Sydney, Yokohama, Reading, and Annapolis, positions it well to capitalize on growing demand for secure, interoperable wireless communications.
Navigating Growth with Caution
While the outlook is positive, the company notes that revenue forecasts depend on timely project deployments, which may face delays. Investors will be watching closely how Etherstack manages execution risks and scales its new CaaS offerings under the AT&T contract.
Bottom Line?
Etherstack’s breakthrough AT&T deal and recurring revenue surge set the stage for a transformative year, but execution risks remain in focus.
Questions in the middle?
- How quickly will AT&T’s Communications As A Service projects scale to meet revenue forecasts?
- What impact will global supply chain or deployment delays have on Etherstack’s growth trajectory?
- Can Etherstack leverage its R&D investments to secure additional large-scale contracts beyond AT&T?
