Highlights

  • FirstWave generated A$1.90 million Revenue in the Sep-2026 quarter, including A$1.68 million in recurring revenue.
  • The company recorded positive quarterly EBITDA of A$0.19 million alongside a gross Margin of 94.5%.
  • A A$1.06 million Placement at A$0.007 per share completed on 2 October 2026, after quarter-end cash fell to A$83,000.
  • Full Open-AudIT 7 release for Windows and Linux is scheduled for November 2026, following a Linux beta.

FirstWave Cloud Technology Limited (ASX:FCT) began FY27 with a positive EBITDA quarter and then moved quickly to rebuild its cash buffer, completing a A$1.06 million placement in early October 2026 to support the launch of new AI-driven network management products.

The Australian software company sells network monitoring, IT discovery and cyber security products, including NMIS, Open-AudIT and CyberCision, to enterprises, telecommunications carriers and government users.

Recurring Revenue Anchors the September Quarter

Revenue for the Sep-2026 quarter, the first quarter of FY27, was A$1.90 million, of which A$1.68 million was recurring. Gross margin reached 94.5% and EBITDA was A$0.19 million.

Customer receipts totalled A$1.66 million, but the company recorded a net operating cash outflow of A$454,000, invested A$529,000 in product development and repaid A$250,000 of Loan principal. Cash fell to A$83,000 at 30 September 2026 from A$1.33 million at the end of June.

Annual Recurring Revenue stood at A$5.54 million at 31 August 2026, led by NMIS and related modules at A$3.7 million and CyberCision at A$1.4 million.

Placement and FY26 Results Reset the Balance Sheet

The placement of about 151.3 million shares at A$0.007, priced at the 29 September closing price, completed on 2 October 2026 with Bell Potter Securities as sole lead manager. Funds are earmarked for working capital, sales pipeline conversion, the Open-AudIT 7 release, the launch of AI fault diagnosis and growth in AI-powered compliance and Latin America.

For FY26 to 30 June 2026, revenue was A$8.38 million and gross margin improved to 95.3% from 88.0%. The statutory loss narrowed 80% to A$2.81 million from A$13.98 million, which had included a A$10.4 million Goodwill impairment. Network monitoring revenue rose 32% to A$6.83 million and Latin American revenue grew 66% to A$2.15 million.

AI Patent Filing Extends the Network Monitoring Suite

On 3 September 2026, FirstWave filed a provisional patent application with IP Australia for a network monitoring and fault diagnosis system that uses multiple AI agents orchestrated by a large language model to explain root causes and adapt alert thresholds. The capability extends NMIS, opEvents and opCharts and was requested by key clients including John Deere and Telmex.

Telstra extended its Secure Internet Gateway agreement, which runs on the CyberCision platform, for 12 months from 8 July 2026, with annual recurring revenue under the agreement rising about 5% to roughly A$0.6 million.

November Launch and December Renewals Ahead

A Linux Beta of Open-AudIT 7 shipped on 31 August 2026 and is being tested with existing clients, with the full Windows and Linux release scheduled for November 2026. The AI fault diagnosis capability is being prepared for commercial launch as upsell features or a standalone module. About A$1.3 million of annual contracts fall due for renewal in December 2026, and the operating cost base has been reset to A$8.1 million a year from October 2026.

Shares were priced at A$0.006 on 2 November 2026, up 10% on the day, with a Market Capitalisation of A$12.53 million. The stock was down 50% over 12 months.