Investment/ASX: 5GN/Data centres & cloud

Why we hold 5G Networks for the long term.

5G Networks owns data centres and a fibre network across four Australian cities, and sells cloud, managed IT and cyber security to businesses and government. DMS Group holds a long-term position because the infrastructure is already built, half of it is still to be filled, and the shares trade close to their tangible asset value.

Our investment thesis How 5GN works
$71.4mFY26 revenue
+13%
48.9%Gross margin
gross profit $34.9m
4.2MWData centre power
about half monetised
$4.7mShares bought back
in FY26
6.16cNet tangible assets
per share
01 · Main service

Infrastructure that businesses run on.

5GN owns data centres in Brisbane, Sydney, Melbourne and Adelaide, connected by its own fibre network. On top of that infrastructure it sells cloud hosting, managed IT and cyber security through its 90%-owned subsidiary AUCyber.

How 5G Networks works 5G Networks owns data centres in Brisbane, Sydney, Melbourne and Adelaide, linked by its fibre network. From them it runs cloud services and AUCyber security, and supplies business customers and wholesale partners. OWNED DATA CENTRES & FIBRE Brisbane Sydney Melbourne Adelaide 1,200+ racks · 4.2MW of power 5GN platform Sovereign cloud · managed IT CloudHosting & backup AUCyberCyber · 90% owned CustomersEnterprise & wholesale Incl. 100 wholesale partners
  1. 1

    Own the infrastructure

    Four data centres with more than 1,200 racks and 4.2MW of power, linked by 5GN's fibre network.

  2. 2

    Run the services

    Sovereign cloud, managed IT and connectivity, hosted in Australian facilities for Australian customers.

  3. 3

    Protect the customer

    AUCyber is certified Strategic under the government's Hosting Certification Framework, IRAP assessed to Protected, and ISO 27001 certified.

02 · Investment thesis

Why we believe it is a good long-term investment.

We like businesses where the expensive part is already built. 5GN's data centres are in place, and filling them adds revenue at high margins.

  1. 01 / 06

    Real, owned infrastructure

    Data centres in four capital cities with 1,200+ racks and 4.2MW of power, plus a fibre network that links them.

  2. 02 / 06

    Upside already built

    About 2MW earns roughly A$850k a month. Management estimates the spare 2.2MW could add about A$935k a month, over A$5.6m a year of extra margin, without major new spending.

  3. 03 / 06

    Enterprise is growing

    Enterprise revenue rose 24% to A$52.4m in FY26. Cloud grew 19% and cyber security 84%.

  4. 04 / 06

    Sovereign cloud & cyber

    Government-grade certifications position AUCyber for public sector and critical industry contracts that few smaller providers can bid for.

  5. 05 / 06

    Buying back shares

    A$4.7m of buy-backs in FY26 cut the average share count by 10%, from 297.8m to 267.1m.

  6. 06 / 06

    Priced near asset value

    At A$0.061, the share price sits close to net tangible assets of 6.16 cents per share. We think the market gives little credit for the spare capacity.

03 · The numbers

Growing revenue on owned assets.

Figures from 5G Networks' FY26 annual report released to the ASX on 28 August 2026. All amounts in Australian dollars.

Growth

Revenue by segment

Enterprise grew 24% and now makes up almost three quarters of revenue.

Enterprise (A$m)Wholesale (A$m)
Revenue by segment: FY25 Enterprise $42.3m and Wholesale $20.9m (total $63.2m); FY26 Enterprise $52.4m and Wholesale $19.0m (total $71.4m)$20m$40m$60m$80mFY25 Enterprise: A$42.3mFY25 Wholesale: A$20.9m$42.3m$20.9m$63.2mFY25FY26 Enterprise: A$52.4mFY26 Wholesale: A$19.0m$52.4m$19.0m$71.4mFY26
FY25 segment figures derived from the FY26 growth rates reported. Source: 5G Networks FY26 annual report.
Capacity

Data centre power in use

About 2MW of 4.2MW is monetised. The rest is built and waiting for customers.

~2.0MW earning ~A$850k / month2.2MW spare
~$850kMonthly revenue today
+$935kMonthly potential if filled*
*Management estimate, not a forecast. Source: 5G Networks FY26 annual report.
Products

FY26 growth lines

The fastest-growing services, with year-on-year change.

  • Hardware & software +54%$14.7m
  • Cloud +19%$12.4m
  • Cyber security +84%$6.5m
$52.4mEnterprise · +24%
$19.0mWholesale · −9%
Source: 5G Networks FY26 results, as reported by TechPartner News.
Earnings

Underlying EBITDA

Back to positive since FY25, after losses in FY23 and FY24.

Underlying EBITDA: FY23 −$9.6m, FY24 −$2.9m, FY25 $3.2m, FY26 $1.6m−$10m−$5m$0m$5m−$9.6mFY23−$2.9mFY24$3.2mFY25$1.6mFY26
FY26 per the Directors' Report (A$1.581m). Source: 5G Networks FY26 annual report.
Capital

Fewer shares on issue

Weighted average shares fell 10% through buy-backs.

Weighted average shares on issue: FY25 297.8m, FY26 267.1m100m200m300m297.8mFY25267.1mFY26
Source: 5G Networks FY26 annual report (earnings per share note).
04 · What we watch

The risks we accept.

5GN is a small cap that is not yet profitable on a statutory basis. These are the points we track.

  • i.
    Statutory losses

    The FY26 loss after tax was A$12.2m, and underlying EBITDA fell to A$1.6m as the company invested in integrating AUCyber.

  • ii.
    Cash has come down

    Cash fell from A$25.9m to A$11.3m over the year, after buy-backs, the AUCyber stake and operating losses.

  • iii.
    Filling the capacity

    The spare-capacity upside is a management estimate. It depends on winning new data centre customers.

  • iv.
    Wholesale and liquidity

    Wholesale revenue fell 9% in FY26. As a small cap, the shares trade in low volumes and can move sharply.

05 · Our position

Owned infrastructure, bought close to asset value.

  • Investment above A$100,000, classified Long Term
  • Higher-risk small cap, held through share price volatility
  • Reviewed at each half-year and full-year result
  • Key signals: data centre utilisation, EBITDA, AUCyber integration, cash

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