Pentanet has reported steady growth in Q2FY26, driven by a strong 5G revenue jump and sustained positive earnings before interest, tax, depreciation, and amortisation (EBITDA). The company’s new brand campaign and subscriber gains signal a strategic push into the second half of the fiscal year.
- Consolidated revenue rises 2% quarter-on-quarter to $6 million
- 5G revenue soars 330% year-on-year, reaching $0.25 million
- Fifth consecutive quarter of positive EBITDA at $0.4 million
- Total subscribers increase 2% to 18,670 with churn improving to 1.1%
- Brand campaign launched to rebuild awareness and support subscriber growth
Steady Revenue Growth Amid Strategic Brand Investment
Pentanet Limited has delivered a solid performance in the second quarter of fiscal 2026, posting a 2% increase in consolidated revenue to $6 million compared to the previous quarter. This growth comes despite a deliberate ramp-up in marketing spend, as the company launched its “Nothing But Net” brand platform in November 2025 to rebuild market presence after a period of reduced promotional activity.
The brand campaign, which employed a broader media mix, is already showing early signs of success with improved brand awareness and stronger purchase intent among consumers. Managing Director Stephen Cornish emphasised that this investment is part of a longer-term strategy to drive subscriber acquisition and retention.
5G Revenue and Subscriber Metrics Highlight Momentum
Telecommunications revenue grew 2% quarter-on-quarter to $5.4 million, supported by a steady increase in subscribers and a shift towards higher-value plans, including 5G offerings. Notably, 5G revenue surged 11% quarter-on-quarter and an impressive 330% year-on-year to $0.25 million, reflecting accelerating adoption within Pentanet’s existing coverage footprint.
Total subscribers rose 2% to 18,670, driven primarily by off-net additions linked to the NBN Speed Boost program. The churn rate improved to 1.1%, down from 1.3% in the previous quarter, indicating better customer retention. The blended average revenue per user (ARPU) also increased to $96, buoyed by migration to faster and more premium plans.
Cloud Gaming Segment Continues to Gain Traction
On the gaming front, Pentanet’s GeForce NOW Powered by CloudGG platform showed encouraging signs of growth. Revenue from this segment increased 3% quarter-on-quarter to $0.68 million, with average revenue per user climbing 6% to $23. The company attributed this to higher engagement during the seasonal gaming period and the launch of new content such as ARC Raiders, alongside popular titles like Battlefield 6 and Path of Exile.
Premium subscription tiers grew 6% quarter-on-quarter, supporting improved retention and a healthier subscription mix. The gaming segment’s gross margin remained robust at 68%, contributing positively to overall profitability.
Financial Discipline and Improved Capital Flexibility
EBITDA remained positive for the fifth consecutive quarter at $0.4 million, despite a 4% increase in overheads driven by the brand campaign. Operating cash flow improved 19% quarter-on-quarter to $0.7 million, reflecting disciplined working capital management and stable underlying earnings.
Importantly, cash used in investing activities dropped sharply from $2.1 million to $0.4 million following the completion of the final 5G spectrum license payment. This reduction in capital outflows, combined with a stable cash balance of $2.4 million and $7.2 million in unused financing facilities, positions Pentanet with enhanced capital flexibility as it heads into the second half of FY26.
Looking ahead, the company plans to maintain its focus on subscriber growth and cost discipline across both telecommunications and gaming segments, leveraging its strengthened brand presence and network capabilities.
Bottom Line?
Pentanet’s Q2 results set the stage for a pivotal H2FY26, balancing brand investment with operational momentum and financial discipline.
Questions in the middle?
- Will the new brand campaign translate into sustained subscriber growth beyond early indicators?
- How will competitive pressures in the fixed wireless and NBN markets affect on-net subscriber retention?
- What is the potential for further 5G revenue expansion as coverage and adoption increase?