Pentanet delivers 74% EBITDA lift as digital infrastructure strategy gains traction
Pentanet Ltd has released a FY26 business update showing its dual-engine model of telecommunications and cloud gaming delivering improved operating performance across the year ended 30 June 2026. The figures are unaudited, with final audited full-year statements due in September 2026.
Group revenue rose 8% on the prior corresponding period to $24.4M, while Group EBITDA increased 74% to $2.4M. Net operating cash inflow was up 17% to $1.6M.
With EBITDA growing roughly nine times faster than revenue, the result points to increasing operating leverage and disciplined cost management across both business segments.
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FY26 financial performance at a glance
The table below summarises the headline unaudited financials for FY26 against the prior corresponding period.
| Metric | FY26 | FY25 (PcP) | Change |
|---|---|---|---|
| Group Revenue | $24.4M | $22.6M | Up 8% |
| Group EBITDA | $2.4M | $1.4M | Up 74% |
| Net Operating Cash Inflow | $1.6M | $1.4M | Up 17% |
Pentanet attributed the EBITDA improvement to increased operating leverage and disciplined cost management. All figures above are unaudited and remain subject to confirmation in the audited full-year statements.
CloudGG and the NVIDIA edge
Pentanet’s cloud-gaming platform, CloudGG, sits at the centre of the group’s growth ambitions and is anchored by the company’s position as an NVIDIA GeForce NOW Alliance Partner in Australia and New Zealand. CloudGG’s premium services are built on NVIDIA GPUs, with Pentanet owning one of Australia’s largest clusters of high-powered NVIDIA gaming GPUs.
Alliance Partner status enables Pentanet to access NVIDIA GPU infrastructure upgrades, a factor management describes as increasingly strategic. Pentanet was the first to bring GeForce NOW to Australia in 2021.
Key gaming metrics for FY26 included:
- Average revenue per user (ARPU) up 36% to $24, driven by the deliberate retirement of the Casual plan and migration to the higher-value Performance and Ultimate tiers.
- Gross new subscribers of 31,773, of which approximately 49.5% were new to the platform and 50.5% returning.
- Ultimate tier share of the paid subscriber base rising from 39% at June 2025 to 59% at June 2026.
Platform engagement was supported by a refreshed content line-up, including the launch of ARC Raiders alongside established titles such as Fortnite, Battlefield 6 and Path of Exile 2. Rising ARPU combined with a shift toward premium tiers suggests margin expansion, not merely subscriber volume growth.
Why rising GPU prices help Pentanet
Cloud gaming gives customers access to premium gaming performance through a subscription, without the need to purchase and continually upgrade expensive gaming hardware such as graphics processing units (GPUs).
According to a Tom’s Hardware GPU supply and pricing report published on 15 January 2026, the cost of gaming hardware has increased over the past year. Pentanet notes this trend has improved the value proposition for premium cloud gaming via CloudGG compared with individual hardware ownership.
For investors, this macro cost dynamic represents a structural tailwind. As the price of owning and upgrading hardware rises, a subscription model that removes that upfront burden becomes comparatively more attractive to consumers.
Telecommunications underpins recurring revenue
The telecommunications segment continues to provide a resilient, recurring-revenue foundation, with its network backbone supporting Pentanet’s broader digital-infrastructure strategy.
Total subscribers increased 4% on the prior corresponding period to 18,936, representing 779 net new subscribers over the year. Off-net subscribers rose 13% to 12,799, supported by NBN’s Speed Boost program, which automatically upgraded eligible connections at no additional cost during September 2025.
Higher-margin on-net 5G subscribers increased 15% to 1,039, with the company prioritising network utilisation rather than further expansion. Average monthly churn remained low at 1.3%, split between on-net churn of 1.2% and off-net churn of 1.3%. Blended ARPU was $96, while recurring revenue ARPU rose 2% to $92.
| Movement | On-net | Off-net | Total |
|---|---|---|---|
| Opening Balance | 6,844 | 11,313 | 18,157 |
| Gross New Subscribers | 207 | 3,457 | 3,664 |
| Churn | (914) | (1,971) | (2,885) |
| Net New Subscribers | (707) | 1,486 | 779 |
| Closing Balance | 6,137 | 12,799 | 18,936 |
The on-net base declined over the year, but higher-value 5G adoption and off-net growth offset this movement. The pattern reflects a strategy prioritising subscriber quality and margin over raw expansion.
‘Nothing But Net’ rebuild
Pentanet launched its new brand campaign, “Nothing But Net”, on 1 November 2025 in Perth. The company framed the campaign as a deliberate reinvestment in brand following a period of reduced marketing activity. Pentanet reports early signs of improved brand awareness and stronger purchase intent among engaged audiences.
The investment case — a scalable dual-engine platform
The FY26 update reinforces a thesis in which resilient, recurring telecommunications revenue funds and de-risks the higher-growth CloudGG platform. Improving gaming unit economics, combined with a stable telco base, positions Pentanet as a scalable digital-infrastructure and subscription business.
The following reflects Pentanet’s stated strategic focus (no verbatim Managing Director quote was provided in the source):
Pentanet’s Stated Focus
Scaling GeForce NOW while enhancing profitability by optimising the subscriber mix, improving the user experience, and maintaining infrastructure efficiency and service quality.
What’s next for Pentanet
Pentanet outlined the following forward focus areas:
- Scale GeForce NOW while optimising the subscriber mix and infrastructure efficiency.
- Pursue disciplined organic telecommunications subscriber growth, supported by continued marketing investment.
- Maintain positive EBITDA, capital efficiency and service quality across both on-net and off-net offerings.
Investors should note that audited FY26 financial statements are due in September 2026, at which point the unaudited figures presented in this update will be confirmed. Managing Director Stephen Cornish and CFO Mart-Marie Derman held an investor webinar and Q&A session on 3 August 2026.
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