Etherstack PLC reported record first-half revenue of $8.5 million, up 40% year-over-year and equal to 84% of its full-year FY25 total, while guiding to full-year revenue of $17.5 million to $18.5 million, implying roughly 70% growth. The company said annual recurring revenue reached $2.7 million in the half and is expected to exceed $5.5 million for FY26 and hit $10 million by 2028. Major contract wins include a $20 million AT&T deal and a $20 million UK government deal, with an order book above $50 million and potential for additional variable components. CEO David Deacon said one-off ramp-up costs of $350,000 to $400,000 tied to UK and US expansion weighed on first-half margins but have largely washed out, setting up significant margin improvement and stronger free cash flow in the second half. The company also said it is undertaking a strategic review to optimize capital structure and shareholder returns, and that exclusivity with Samsung has ended as it broadens relationships with other switch vendors.
AT&T Inc.AT&T is a major customer with a $20 million deal, indicating strong demand for Etherstack's products.
Samsung Electronics Co LtdRecord revenue, strong guidance, and strategic review indicate positive financial performance and potential capital optimization.
