Pentanet FY26 Revenue Climbs 8% as EBITDA Surges 74% on Cloud Gaming and Telco Growth
Pentanet has reported an 8% revenue increase to $24.4 million and a 74% rise in EBITDA to $2.4 million for FY26, driven by its expanding cloud gaming platform and resilient telecommunications base.
- Revenue up 8% to $24.4 million
- EBITDA rises 74% to $2.4 million
- CloudGG ARPU increases 36% to $24
- 5G subscribers grow 15%, total subscribers up 4%
- New 'Nothing But Net' branding campaign launched
Strong Profitability Boosted by Cloud Gaming and Telco Growth
Pentanet Ltd (ASX:5GG) has posted a notable financial turnaround for FY26, with revenue climbing 8% to $24.4 million and EBITDA soaring 74% to $2.4 million. This leap reflects a successful strategy blending a stable telecommunications subscriber base with a rapidly growing premium cloud gaming operation, CloudGG. Operating cash flow also improved 17% to $1.6 million, marking a clear shift from prior years' losses.
Cloud Gaming Gains Momentum Amid Rising Hardware Costs
Central to Pentanet's growth is its position as an NVIDIA GeForce NOW Alliance Partner for Australia and New Zealand. CloudGG runs on one of the country's largest clusters of high-powered NVIDIA GPUs, providing a premium gaming experience without the hefty upfront hardware costs. With gaming hardware prices rising sharply, the subscription model’s value proposition has strengthened, driving a 36% increase in average revenue per user (ARPU) to $24.
The deliberate retirement of the Casual plan nudged subscribers toward higher-value Performance and Ultimate tiers, with 59% of paying customers now on the top-tier Ultimate plan; up 20 percentage points in a year. Pentanet attracted 31,773 gross new subscribers to CloudGG in FY26, split almost evenly between new and returning users, highlighting strong platform loyalty and growth potential.
Telecommunications Segment Provides Recurring Revenue Stability
On the telecommunications front, Pentanet’s subscriber base grew 4% to 18,936, supported by the NBN Speed Boost program which upgraded eligible customers to faster plans at no extra cost. Off-net subscribers increased 13% to 12,799, while higher-margin on-net 5G subscribers rose 15% to 1,039, reflecting a strategic focus on utilisation over network expansion.
Subscriber churn remains low at 1.3% monthly, underpinning a predictable revenue stream with a recurring ARPU of $92, up 2% year-on-year. The blended ARPU across all subscribers reached $96, signalling modest pricing power amid competitive market conditions.
Brand Refresh and Strategic Outlook
Recognising the importance of brand in a competitive landscape, Pentanet launched its “Nothing But Net” campaign in November 2025. This marks a deliberate reinvestment after a period of reduced marketing, aiming to boost brand awareness and purchase intent among target audiences in Perth. Early indicators suggest positive traction from this campaign.
Looking ahead, Pentanet plans to release its full audited FY26 results in September 2026, alongside a comprehensive update on its medium- to long-term strategic direction. The company remains focused on scaling CloudGG profitability, optimising subscriber mix, and maintaining efficient infrastructure to support growth.
Bottom Line?
Pentanet’s FY26 results spotlight the growing synergy between its cloud gaming platform and telecom backbone, setting the stage for further expansion as it leverages strategic partnerships and brand momentum.
Questions in the middle?
- How will Pentanet balance infrastructure investment with profitability as CloudGG scales?
- Can the company sustain ARPU growth amid intensifying competition in cloud gaming?
- What impact will the 'Nothing But Net' campaign have on subscriber acquisition beyond Perth?
