Highlights:

  • Pentanet reported FY26 Revenue growth of 8% to $24.4 million and EBITDA improvement of 74% to $2.4 million.
  • Operating cash flow increased 17% to $1.6 million during FY26.
  • Cloud gaming revenue rose 16% to $2.8 million, with segment EBITDA increasing 61% to $1.7 million.
  • Telco subscribers increased 4% year-on-year to 18,936 at 30 June 2026.
  • The company outlined a strategy focused on expanding NVIDIA GPU infrastructure and growing CloudGG users.

Pentanet Ltd (ASX:5GG) has released its FY26 results and strategy update, outlining improved operating performance, growth across its cloud gaming segment and a continued focus on expanding its digital infrastructure capabilities.

During the morning Trading session on 4 September 2026, Pentanet (ASX:5GG) was trading at AUD 0.024, up 4.35% on the day. The company’s shares remained down 20.00% over the past year.

The FY26 Results Presentation and Strategy Update covers the financial year ended 30 June 2026, highlighting revenue growth, improved profitability, increased operating cash generation and the company’s strategic focus on cloud gaming expansion.

FY26 Financial Performance

Pentanet reported group revenue of $24.4 million in FY26, representing an 8% increase compared with the prior corresponding period. Group EBITDA increased 74% to $2.4 million, while Operating Cash Flow rose 17% to $1.6 million.

The company highlighted that improved Operating Leverage and cost discipline contributed to the improvement in profitability and cash generation. FY26 revenue increased from $22.6 million in FY25, while EBITDA improved from $1.4 million in FY25.

Pentanet’s operating cash flow represented a $2.2 million improvement compared with FY24, when the company recorded an operating cash outflow. During FY26, investing activities included $1.8 million in intangibles and $0.5 million in network equipment, including the final $1.6 million payment to ACMA for the 15-year Spectrum Licence.

Cloud Gaming Growth

Cloud gaming remained a key area of focus during FY26, with the segment recording revenue growth and improved margins. Gaming revenue increased 16% year-on-year to $2.8 million, while Gross Profit rose 40% to $1.9 million.

The segment’s gross Margin improved by 11 percentage points to 68%, while gaming EBITDA increased 61% to $1.7 million. Gaming contributed 46% of group EBITDA before corporate costs, compared with 35% in FY25.

Pentanet also reported growth in gaming customer metrics, with gaming average revenue per user (ARPU) increasing to $24 per month in FY26, up 36% compared with the prior corresponding period. The proportion of Ultimate plan customers increased to 59% from 39%, while registered CloudGG users reached 840,000.

Telco Segment Performance

The company’s telecommunications segment continued to provide Recurring Revenue support during FY26.

Telco revenue increased 7% year-on-year to $21.6 million, while gross profit rose 2% to $9.8 million. Segment EBITDA increased 5% to $2.0 million.

At 30 June 2026, Pentanet reported 18,936 total subscribers, representing a 4% increase compared with the prior year. The company added 779 net new subscribers during the year, while higher-margin 5G subscribers increased 15% year-on-year.

Recurring ARPU was $92, blended ARPU was $96 and average monthly churn was 1.3%. The company said its network infrastructure continues to support its broader digital infrastructure strategy.

Cloud Gaming Strategy and NVIDIA Alliance

Pentanet outlined cloud gaming as a major strategic focus, supported by its NVIDIA GeForce NOW Alliance Partner status for Australia and New Zealand.

The company stated that it has operated as the sole GeForce NOW Alliance Partner in Australia and New Zealand since 2021, providing access to NVIDIA’s cloud gaming platform through its CloudGG service.

The company’s strategy includes increasing the scale and utilisation of NVIDIA GPU infrastructure. Pentanet outlined plans to expand GPU capacity incrementally, with additional servers deployed in line with Demand rather than through larger upfront Capital commitments.

The company also noted that negotiations remain ongoing with NVIDIA under its alliance agreement regarding additional Blackwell servers, with no certainty that an agreement will be concluded.

Strategic Roadmap

Pentanet outlined four strategic priorities covering telco operations, fixed wireless, NBN enablement and GPU expansion.

The company described its telco segment as a predictable cash-generating business, with approximately 19,000 subscribers and ARPU supporting funding for GPU expansion. It also plans to maintain its fixed wireless network while evaluating future opportunities as market conditions change.

The company’s roadmap includes increasing paid cloud gaming users from approximately 10,000 to 20,000, followed by a longer-term goal of scaling users further while expanding GPU infrastructure.

Investor Takeaway

Pentanet’s FY26 results highlight improved financial performance, supported by revenue growth, higher EBITDA and stronger operating cash flow. The company is positioning cloud gaming as a key strategic area while continuing to utilise its telecommunications operations as a recurring revenue base. Investors may continue to monitor CloudGG subscriber growth, GPU infrastructure expansion and progress under the NVIDIA alliance.