FirstWave suffers drop in revenue, profit in H1 FY26

FirstWave Cloud Technology has reported its financial results for the half-year ended 31 December 2025 (H1 FY26), with drops in both revenue and gross profit alongside a growing number in the loss column.

Revenue was $3.8 million, down 15.9% from H1 FY25 ($4.5 million), while gross profit was $3.6 million, down 6% from H1 FY25 ($3.8 million).

The reduction in revenue and gross profit relates primarily to the ongoing impact of Telstra discontinuing its Gateway Protection Advanced firewall product and the closure of its CSX2 web and email platforms, which reduced FirstWave's recurring revenue run‑rate through customer churn and lower revenues from that channel. This process has now completed in full.

The loss for FirstWave after income tax increased by 47.2% to just over $3 million (compared to just over $2 million in H1 FY25).

The increased loss primarily reflects the lower revenue base, restructuring costs and financing costs.

Restructuring and transformation costs incurred during the half‑year (including a ~$700,000 cash cost restructure undertaken in the first half of the financial year 2026) are expected to deliver ongoing cash savings of approximately $450,000 per Q3 of FY26.

During the first half of FY26, FirstWave secured an extension and annual recurring revenue uplift to its contract with Microsoft, as well as completed a $2.85 million capital raise to support growth initiatives.

Prior to this, the company extended its agreement with Telstra for the provision of ISM-compliant CyberCision software and services to several Federal Government agencies, plus struck a partnership with AWS and Corent Technology that will see its IT compliance and network management software deployed on the AWS Marketplace.

Last month, FirstWave was awarded funding under the CSIRO Regional University Industry Collaboration (RUIC) program for a collaborative project to accelerate the commercial delivery of AI-powered network intelligence and compliance software.