Etherstack (ASX: ESK) has reported net positive operating cashflow of US$1 million for the 2024 financial year, marking its seventh consecutive year of positive cash generation. Despite this, revenue declined 37% to US$5.93 million, as delays in key projects impacted earnings.
The company’s recurring support revenue—a key growth metric—rose 27% to US$2.3 million, reflecting increased deployments of Etherstack’s mission-critical communications networks. However, overall revenue fell as two major projects faced unexpected delays, pushing earnings into future periods. The company recorded a net loss after tax of US$3.9 million, compared to a profit of US$522,000 in the previous year.
Etherstack continued to invest in research and development, spending US$2.6 million on advancing its MCX-IWF solutions, which enable next-generation public safety and critical infrastructure communications. The company also secured repeat orders from key customers, including AT&T FirstNet, Samsung, Rio Tinto, and the Australian government.
Looking ahead, Etherstack is preparing to launch Communications as a Service (CaaS) offerings in four countries during 2025, a move expected to further stabilise revenue volatility. The company is also in advanced negotiations for a material new contract with an existing customer, which could significantly impact earnings through 2028.
Etherstack is a wireless technology company specialising in mission-critical radio communications for public safety, defence, utilities, and industrial sectors. Its software and network solutions are deployed in high-demand environments, ensuring reliable communication in critical operations.
