Etherstack Posts US$10.1M Revenue in FY25, Projects US$17.5M in FY26
Etherstack has reported a record-breaking 70% revenue increase in FY25, driven by major contracts and strong cashflow, and is poised for further robust growth in FY26.
- FY25 revenues hit US$10.1 million, up 70% year-on-year
- Operating cashflow remains positive for eighth consecutive year
- Order book exceeds US$40 million, anchored by AT&T FirstNet and UK Home Office projects
- FY26 revenue guidance set between US$16.2 million and US$17.5 million
- Growth driven by MCX/IWF technology and expanding Communications-as-a-Service
Record Revenue and Cashflow Highlight FY25
Etherstack plc has delivered a standout financial performance for the fiscal year ending December 2025, reporting revenues of US$10.1 million, a 70% increase compared to the previous year. This milestone not only places the company at the top end of its guidance range but also marks a significant leap in its growth trajectory. Complementing this revenue surge, Etherstack generated a robust operating cashflow of US$3.2 million, maintaining its streak of eight consecutive years of positive cashflow, a testament to its operational discipline and market demand.
Strong Order Book Fuels Optimism for FY26
Underlying this performance is a substantial order book exceeding US$40 million, primarily driven by high-profile contracts with AT&T FirstNet in the United States and the UK Home Office’s Emergency Services Network (ESN). These projects are expected to contribute significantly to revenues over the next five years, underpinning management’s confidence in reiterating FY26 revenue guidance between US$16.2 million and US$17.5 million, an anticipated growth of over 60% year-on-year.
Technology Leadership in Mission Critical Communications
At the heart of Etherstack’s growth is its world-leading Land Mobile Radio InterWorking Function (LMR-IWF) technology, which facilitates seamless communication between traditional public safety radio networks and modern 4G/5G broadband systems. This technology is gaining traction globally, with Etherstack securing the two largest contracts worldwide in this space. The company’s MCX/IWF product line is expected to more than double its revenue contribution in FY26, reflecting its pivotal role in the transition to next-generation mission critical communications.
Expanding Communications-as-a-Service and Defence Opportunities
Etherstack is also expanding its Communications-as-a-Service (CaaS) offerings, which began generating revenue in FY25 and are projected to grow steadily through FY27, with a significant ramp-up anticipated in FY28 coinciding with the UK ESN project going live. Additionally, the company’s Australian defence business is gaining momentum, with a recent A$2.5 million contract progressing well and further awards expected, adding another layer of growth potential.
Positioned for Global Expansion
Management views the market for LMR-IWF technology as still in its infancy, likening it to the early days of SMS and voicemail adoption. With up to 200 national or regional cellular carriers worldwide expected to adopt this technology, Etherstack’s early wins in the US and UK position it uniquely to capitalise on global expansion opportunities, including in OECD countries, the Middle East, and populous nations. The company’s technology also has applications beyond public safety, such as in global rail and utilities sectors transitioning to broadband wireless communications.
Bottom Line?
Etherstack’s FY25 momentum sets the stage for a transformative FY26, but execution on large contracts will be key to sustaining growth.
Questions in the middle?
- How will Etherstack manage the risks associated with scaling its MCX/IWF deployments globally?
- What is the timeline and revenue impact of the UK ESN project going live in FY28?
- How might competition in the LMR-IWF market affect Etherstack’s market share and margins?
