PentaNet Ltd reported a positive net operating cash flow of A$710,000 for the December 2025 quarter, alongside a strong cash position of A$2.42 million. The company completed its final payment for a 15-year 5G spectrum license while maintaining access to substantial financing facilities.
- Positive net operating cash flow of A$710,000 for the quarter
- Final payment made for 15-year high band 5G spectrum license
- Cash and cash equivalents stand at A$2.42 million
- Secured loan facilities total A$10.75 million with A$3.53 million drawn
- Payments to related parties amounted to A$335,000
Strong Operating Cash Flow Signals Stability
PentaNet Ltd has delivered a solid financial performance in the December 2025 quarter, reporting positive net operating cash flow of A$710,000. This marks a continuation of the company’s ability to generate cash from its core telecommunications operations, a reassuring sign for investors amid ongoing capital expenditure commitments.
The company’s receipts from customers reached A$6.27 million during the quarter, offset by significant outflows including staff costs, administration, and marketing expenses. Despite these outflows, PentaNet managed to maintain a net increase in cash of A$2.4 million, ending the quarter with A$2.42 million in cash and cash equivalents.
Capital Investment and Spectrum Licensing
A notable highlight from the quarter was the completion of the final annual payment of A$1.6 million for PentaNet’s 15-year license to operate in the high band 5G spectrum at 26 GHz. This strategic asset underpins the company’s long-term network infrastructure plans and positions it well within the competitive 5G landscape.
Capital expenditure remained a focus, with payments for property, plant, and equipment totaling A$427,000 in the quarter. These investments are critical to supporting PentaNet’s expanding 5G network infrastructure and service capabilities.
Robust Financing Facilities Provide Flexibility
PentaNet continues to benefit from a suite of secured loan facilities totaling A$10.75 million, of which A$3.53 million was drawn at quarter-end. These facilities include arrangements with Toyota Fleet Management, Westpac Banking Corporation, Cambium Networks Ltd, and Moneytech Finance Pty Ltd, each tailored to support vehicle fleets, capital expenditure, and network equipment purchases.
The company’s unused financing capacity of A$7.22 million provides a significant buffer to fund ongoing operations and future growth initiatives without immediate pressure to raise additional capital.
Governance and Related Party Payments
Payments to related parties and their associates amounted to A$335,000 during the quarter, a figure disclosed in compliance with ASX reporting requirements. While the announcement does not elaborate on the nature of these payments, transparency around related party transactions remains a key area for investor scrutiny.
Managing Director Stephen Cornish authorised the release of the report, affirming that the financial statements present a true and fair view of the company’s cash flows and financial position.
Bottom Line?
With positive operating cash flow and strong liquidity, PentaNet appears well-positioned to navigate its capital commitments and sustain growth in the evolving 5G market.
Questions in the middle?
- What are the specific uses and terms of the payments to related parties?
- How will PentaNet prioritise capital expenditure given its current financing facilities?
- What are the company’s plans to leverage the high band 5G spectrum license commercially?