Etherstack plc reported a robust FY2025 financial rebound with revenue soaring 70% to US$10.1 million, driven by major US project deliveries and a 62% rise in recurring support revenues. The company also turned EBITDA positive and secured key long-term contracts, setting the stage for strong growth in 2026.
- Revenue surged 70% to US$10.1 million in FY2025
- EBITDA profit of US$2.02 million, reversing prior year loss
- Recurring support revenues grew 62% to US$3.7 million
- Major contracts signed with AT&T and UK Home Office
- R&D investment steady at US$2.6 million focused on MCX/IWF solutions
Strong Financial Rebound
Etherstack plc (ASX: ESK) has delivered a significant turnaround in its FY2025 results, with total revenue climbing 70% to US$10.1 million compared to the previous year. This rebound follows a challenging FY2024 marked by project delays, and was primarily driven by successful project deliveries in the United States, including deployments for major clients such as AT&T and Rio Tinto.
The company’s EBITDA swung from a loss of US$1.17 million in FY2024 to a profit of US$2.02 million in FY2025, reflecting improved operational efficiency and higher-margin recurring revenues. Statutory net loss narrowed substantially to US$0.7 million, underscoring the progress toward profitability.
Recurring Revenues and Contract Wins
Recurring support revenues, a key indicator of sustainable business, grew by 62% to US$3.7 million. This growth was underpinned by long-term support contracts with customers in critical sectors such as utilities, resources, and public safety. Notably, Etherstack secured a multi-year contract with AT&T to provide Land Mobile Radio (LMR) integration services, guaranteeing minimum annual revenues of US$2.5 million starting FY2026.
In addition, the company won a significant contract with the UK Home Office to supply LMR-IWF software for the Emergency Services Network migration, further validating Etherstack’s technology in high-stakes government communications. The Commonwealth of Australia also awarded a contract expected to contribute revenues in 2026.
Focused R&D Investment and Intellectual Property
Etherstack maintained its R&D investment at US$2.6 million, focusing on its emerging MCX/IWF solution, which is central to its next-generation communications offerings. The company has invested over US$36 million in intellectual property development, positioning itself strongly in the wireless communications technology space.
This sustained investment supports the company’s strategy to expand its Communications as a Service (CaaS) revenue streams, which are expected to contribute materially from FY2026 onwards, driving forecast explosive growth through FY2028.
Outlook and Market Positioning
Management expressed confidence in Etherstack’s positioning for 2026 and beyond, targeting revenue growth of up to 60% year-on-year. The company’s strong contract pipeline, combined with recurring revenue growth and new CaaS offerings, underpin this optimistic outlook.
Positive operating cashflow of US$3.2 million for FY2025, along with solid cash receipts, demonstrate the company’s improving financial health and operational discipline. While some revenue volatility remains due to project timing and currency fluctuations, Etherstack’s diversified customer base and long-term contracts provide a solid foundation for sustained growth.
Bottom Line?
Etherstack’s FY2025 turnaround and strategic contract wins set the stage for accelerated growth, but execution on new CaaS offerings will be key to sustaining momentum.
Questions in the middle?
- How quickly will Communications as a Service (CaaS) revenues ramp up and impact overall profitability?
- What are the risks related to project timing and revenue recognition volatility in FY2026?
- How will Etherstack manage currency fluctuations given its global operations and reporting in USD?