5G Networks sees FY26 revenue grow, uEBITDA decline

5G Networks (5GN) has grown its revenue 13% in FY26, moving upwards from $62.6 million in FY25 to $71.4 million, owing to positive results across its Cloud, Cyber and Hardware & Software segments.

The growth was also supported by contract re-pricing, organic sales execution, and the initial contribution from AUCyber, which the company now owns a full controlling stake (90%) in, with a strategic review underway, assessing closer integration and potential full ownership.

Gross profit increased 14% to $34.9 million, but the company's underlying EBITDA result of $1.6 million was a $1.7 million decline year-on-year, reflective of the group’s investment in future growth after spending much of FY26 realising synergies between 5GN and AUCyber.

Cloud revenue grew to $12.4 million (+19% on FY25), while the Hardware & Software revenue uptick of 54% (now sitting at $14.7 million for FY26) was trumped only by Cyber's revenue jump of 84% ($6.5 million in FY26) in terms of positive percentage changes from FY25.

Among its overall enterprise segment - which sells cloud hosting, data centre, networks and voice, IT managed services, hardware and software and cyber security and AI cloud capacity - revenue rose 24% to $52.4 million.

Its overall wholesale segment, however - which sells cloud hosting, data centre, network services, AI compute infrastructure and bare metal - saw revenue decrease 9% to $19 million.

The Board has commenced a strategic review of the Enterprise business focused on driving integration of the managed IT services, sovereign cloud and cyber security services into one entity to create efficiencies and alignment.

FY27 focuses include completing the integration and considering full ownership of AUCyber; scaling enterprise and wholesale revenue through expanded data centre and cloud capacity; and leveraging cyber expertise to secure government and critical industry contracts.

5GN MD Joseph Demase said FY26 marks a turning point for 5G Networks.

"We continued to deliver positive underlying EBITDA, successfully expanded into sovereign cloud and cyber security, and maintained a strong capital position," he said.

The company now serves more than 2,500 enterprise clients, over 1,500 corporate clients and 100 wholesale partner.

In addition, its owned and operated cloud and data centre facilities in Melbourne, Sydney, Brisbane and Adelaide now have a combined capacity of more than 1,200 racks and total power capacity of 4.2MW.

Approximately 2MW of this capacity is currently monetised, generating approximately $850,000 in revenue per month at a 50% incremental margin.

The remaining 2.2MW of spare capacity represents a "significant growth opportunity", the company claims - on a like-for-like basis with its current utilisation economics, fully monetising this spare capacity could generate approximately $935,000 in additional monthly revenue, or over $5.6 million in additional annualised incremental margin, without material additional capital investment. Re-pricing and capacity expansion during FY26 supported sustained growth.

AUCyber's revenue dropped, but turnaround eyed for FY27

FY26 saw 5GN rebrand its enterprise, security, and government services under the AUCyber brand during the year, a move that the company said provided "a tighter focus" on security across these customer segments, simplified its service offering and provided clearer, more consistent communication for customers engaging on security and government-related services.

AUCyber recorded revenue of $19.9 million in FY26, a drop of 27% when compared with $27.3 million in FY25.

A portion of the revenue acquired through the prior period's acquisitions was underpinned by forecasts that proved inaccurate, and on closer examination carried very low or negative margin, the company stated; as a result, AUCyber made the deliberate decision to discontinue this revenue rather than continue carrying it at a cost to the business.

The company said that revenue growth accelerated through the final quarter of FY26, however, up more than 22% on the third quarter, and June closed the year as the company's strongest month - the highest revenue of any month in FY26.

June was also the only month in FY26 in which the company generated positive statutory EBITDA.

Taken together, AUCyber said that this is "clear evidence" that the remaining revenue base is both growing and of materially better quality than what was discontinued, with revenue growth built on sustainable margin, not volume carried at a loss.

"The Board views FY26 as the year in which AUCyber cleared out revenue that should never have been carried, absorbed the associated cost of doing so, and exited the year with clear, measurable momentum in both the quality and trajectory of the remaining business," Demase stated in his leadership message included in the company's annual report.

In November, Chris Wright stepped down as CEO of AUCyber after overseeing the restructuring of AUCyber's operations and balance sheet during a "demanding period".

Following his departure and having assessed the company's requirements as a majority-owned subsidiary operating within a combined executive structure, the board determined that a standalone CEO for AUCyber was not required going forward, with Demase taking on the combined role of chair and CEO of the subsidiary.

"Having cleared out low-quality revenue and reset the cost base, our focus for FY27 is to build directly on the momentum evident in our fourth-quarter performance: consolidating our position in sovereign cloud while selectively expanding into multi-cloud capability for customers who require it, always anchored to the security and sovereignty standards that differentiate us," he said.

"We intend to continue investing in the accreditation and capability uplift required to compete for the largest and most complex government and enterprise engagements, and to maintain the cost discipline established this year as a permanent feature of how we operate, not a one-off adjustment."

AUCyber holds Certified-Strategic provider status under the Digital Transformation Agency's Hosting Certification Framework, are IRAP-assessed to the Protected controls of the Australian Signals Directorate's Information Security Manual via the Australian Cyber Security Centre's Cloud Assessment and Authorisation Framework and are ISO 27001 certified across the organisation.

The company has also broadened its services portfolio in ways designed to increase the value we deliver per customer relationship, including advanced endpoint protection through SentinelOne's autonomous, AI-driven threat detection and remediation capability, and hardened Microsoft 365 security configurations to protect customers against account compromise, phishing, and data leakage.

AUCyber stated that it is embedding artificial intelligence more broadly across its own operations and customer-facing services, with the specific objective of improving the speed and accuracy of threat analysis, automating routine security workflows, and enabling it to deliver services more cost-effectively without compromising the rigour our accreditations demand.