Highlights

  • FY26 Revenue rose 14% to A$71.4 million, led by a 23.9% lift in enterprise segment revenue.
  • Underlying EBITDA fell 51% to A$1.6 million as employee costs climbed 21% to A$29.0 million.
  • A revolving Loan Facility of up to A$1 million to AUCyber formalises existing intercompany funding.
  • Shareholders will consider director Options and performance rights at the online AGM on 26 November 2026.

5G Networks Ltd (ASX:5GN) has formalised its funding of AUCyber, the cyber security and cloud Business in which it holds about 90%, after a year of top-line growth and thinner margins. Under a deed dated 17 September 2026, the Melbourne-based digital services company agreed to provide AUCyber with an unsecured revolving loan facility of up to A$1 million, repayable on 90 days' written notice.

Loan Replaces an Existing Intercompany Balance

The facility will discharge an intercompany balance of about A$1 million that AUCyber owed 5G Networks at 24 August 2026, while also supporting its working capital. Interest is set at 5% a year, benchmarked to the six-month BBSW rate at 15 September 2026. The board said Listing Rule 10.1 does not apply because the facility is unsecured and involves no transfer of a substantial asset.

The FY26 presentation valued the 90.03% stake in ASX-listed AUCyber at A$9 million and said a strategic review is assessing closer integration or full ownership.

Revenue Climbs but Earnings Narrow

For the year to 30 June 2026, revenue increased 14% to A$71.4 million and gross Margin improved to 48.9%. Enterprise revenue grew 23.9% to A$52.4 million, while wholesale revenue fell 9.0% to A$19.0 million. Cyber security revenue rose 84% to A$6.5 million, hardware and software lifted 54% to A$14.7 million, and cloud grew 19% to A$12.4 million.

Underlying EBITDA halved to A$1.6 million, while the loss before tax narrowed to A$12.2 million from A$19.9 million. Total cash was A$14.6 million at 30 June 2026, including A$3.3 million restricted against Lease guarantees, and the company reported no debt. Customer receipts rose 13% to A$77.8 million, and the operating cash outflow narrowed to A$5.8 million from A$13.4 million. About A$4.6 million was returned to shareholders through an on-market buy-back.

Infrastructure Footprint and FY27 Priorities

5G Networks serves more than 2,500 corporate clients and operates data centres in Melbourne, Sydney, Brisbane and Adelaide with 4.2MW of capacity, of which 2.2MW is spare. Its network has points of presence across Australian capitals, Singapore, the US, Hong Kong and New Zealand.

Management has set FY27 priorities, rather than guidance, that include monetising the spare data centre capacity with limited extra capital, launching AI-driven security and firewall products under AUCyber, assessing offshore data centre expansion and developing sovereign GPU compute in private cloud for Australian AI workloads.

AGM Agenda Focuses on Equity-Based Pay

The Annual General Meeting will be held online on 26 November 2026. Resolutions include the re-election of Natalie Mactier, options for three non-executive directors, 15 million performance rights to an entity controlled by Managing Director Joseph Demase, and shares in lieu of half of certain directors' fees, which the board said would preserve cash. Shares were priced at A$0.056 on 2 November 2026, up 1.82% on the day, giving a Market Capitalisation of A$14.79 million.