Pentanet Ltd H1 FY26: Revenue Up 8%, EBITDA Surges 534%, Net Loss Narrows to $1.6M
Pentanet Limited has reported a solid half-year performance for the period ending 31 December 2025, with revenue growth and a significant surge in EBITDA, while narrowing its net loss. Both its Telecommunications and Gaming segments contributed to the improved results, supported by subscriber growth and operational efficiencies.
- 8% revenue growth to $11.9 million
- EBITDA increased 534% to $1.0 million
- Net loss after tax reduced by 49% to $1.6 million
- Strong growth in Telecommunications and Gaming segments
- Operating cash flow up 430% to $1.3 million with $2.4 million cash balance
Robust Revenue Growth Across Segments
Pentanet Limited has delivered a commendable half-year financial performance for the six months ending 31 December 2025. The company’s consolidated revenue rose by 8% to $11.9 million, driven by steady contributions from both its Telecommunications and Gaming divisions. Telecommunications revenue increased by 7%, buoyed by growth in off-net subscribers on NBN and Opticomm networks, alongside expanding adoption of higher-value plans and a growing 5G subscriber base. Meanwhile, the Gaming segment saw a 19% revenue uplift, supported by a refined subscription mix and higher average revenue per user following operational efficiencies and plan restructuring.
Significant EBITDA Improvement Reflects Operational Discipline
The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) surged by an impressive 534% to $1.0 million, a clear indicator of improved profitability and cost management. Segment EBITDA growth was notable, with Telecommunications EBITDA rising 69% to $0.9 million and Gaming EBITDA nearly doubling with a 96% increase to $0.8 million. This performance reflects Pentanet’s disciplined approach to managing operating costs while enhancing revenue quality across its business units.
Narrowing Net Loss and Strengthened Cash Position
Despite reporting a net loss after tax of $1.6 million, this represents a 49% improvement compared to the prior corresponding period’s $3.1 million loss. The company’s operating cash flow strengthened markedly, increasing 430% to $1.3 million, underpinning a healthy cash balance of $2.4 million at period end. Additionally, Pentanet holds $7.2 million in unused financing facilities, providing further capital flexibility to support ongoing growth initiatives and capital expenditure.
Strategic Focus on Subscriber Growth and Cost Management
Looking ahead, Pentanet is positioned to leverage its improved capital flexibility to maintain momentum in subscriber acquisition and retention, particularly within its expanding 5G network footprint. The company continues to prioritise disciplined cost control across both Telecommunications and Gaming segments, aiming to further enhance profitability and operational efficiency. The final payment for its 15-year Spectrum License was made during the period, completing a significant capital investment underpinning its network capabilities.
Auditor’s Review and Governance
The interim financial report was reviewed by BDO Audit Pty Ltd, which issued an unmodified opinion, affirming compliance with Australian Accounting Standards and the Corporations Act 2001. The directors remain confident in the company’s going concern status, supported by positive cash flow forecasts and manageable working capital requirements.
Bottom Line?
Pentanet’s H1 FY26 results signal a turning point with strong operational momentum and improved financial resilience, setting the stage for a potentially profitable second half.
Questions in the middle?
- How will Pentanet sustain subscriber growth amid increasing competition in telecommunications?
- What impact will the new financing facilities have on future interest costs and capital deployment?
- Can the company translate EBITDA gains into net profitability in the coming periods?
