Pentanet Posts 8% Revenue Growth and $1.4M EBITDA in FY25

Pentanet’s Financial Turnaround

In the financial year ended 30 June 2025, Pentanet Limited (ASX, 5GG) marked a pivotal milestone by delivering a positive EBITDA of $1.4 million for the first time in its history. This represents a substantial $2.7 million improvement compared to the prior year’s loss. The company’s revenue climbed 8% year-on-year to $22.6 million, driven by steady subscriber growth and improved margins across its telecommunications and cloud gaming segments.

5G Network Expansion and Subscriber Growth

Central to Pentanet’s progress was the accelerated rollout of its 5G Fixed Wireless network in Perth. The company successfully expanded 5G coverage to approximately 25% of its historic tower footprint by upgrading 14 towers, supported by a strategic equipment stock swap that minimized upfront capital expenditure. This capital-efficient approach enabled Pentanet to grow its 5G subscriber base by 126% to 904 users, reflecting strong market demand for high-speed wireless alternatives.

Overall, total subscribers increased 4% to 18,157, with churn improving from 1.4% to 1.2%, signaling enhanced customer retention. The telecommunications segment revenue rose 6% to $20.2 million, supported by a shift towards higher-margin on-net plans and a blended average revenue per user (ARPU) increase to $94.

Cloud Gaming Segment Gains Momentum

Complementing its telco business, Pentanet’s cloud gaming division, powered by its exclusive partnership with NVIDIA, posted a 31% revenue increase to $2.4 million. The segment benefited from infrastructure upgrades to NVIDIA RTX 4080 SuperPODs and a restructuring of gaming plans that optimized ARPU and margins. Gross profit in gaming surged 226% to $1.4 million, with the platform now boasting over 725,000 registered users and a library of more than 2,200 supported games.

Operational Efficiency and Cost Management

Operating expenses declined by 13% to $10 million, reflecting disciplined cost control, particularly in employee-related costs and marketing spend. This efficiency, combined with revenue growth, contributed to improved gross margins, which rose by three percentage points to 49% overall. Pentanet’s capital structure remains sound, closing FY25 with $2.2 million in cash and securing a $2 million equipment finance facility post-year-end to support ongoing network investments.

Looking Ahead, Growth and Investment

Looking forward to FY26, Pentanet plans to increase marketing investment to accelerate subscriber acquisition and enhance brand visibility. The company aims to leverage its expanding 5G and GPU infrastructure to drive top-line growth and improve profitability. The strategic focus remains on scaling both the telecommunications and cloud gaming segments while maintaining financial discipline and operational rigor.

With a strong local presence in Western Australia and a unique combination of fixed wireless and cloud gaming offerings, Pentanet is positioning itself to capture growing demand for high-speed connectivity and digital entertainment in a competitive market.