ASX microcap stock Pentanet Ltd (ASX: 5GG) is off to the races today.
Shares in the Perth-based, growth-focused ASX telco closed yesterday at 3.0 cents apiece. In earlier trade, shares just leapt to 6.0 cents, up 100.0% in intraday trade. After some likely profit-taking, shares are currently swapping hands for 5.2 cents apiece, up 73.3%.
For some context, the All Ordinaries Index (ASX: XAO) is up 0.33% at this same time.
Here's what's driving investor interest in the ASX microcap stock on Wednesday.
ASX microcap stock rockets on positive earnings swing
The Pentanet share price is surging today following the release of the junior telco's quarterly results (Q2 FY 2025).
Investors are piling into the ASX microcap stock after Pentanet reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of $600,000 for Q2. That represents a $1.0 million improvement on the $400,000 loss reported in Q1.
"We're excited to share a significant turning point as our business turned EBITDA positive in the quarter and for the half, marking the fruition of our strategic focus over the past several quarters," Pentanet managing director Stephen Cornish said of the earnings achievement.
In other core financial metrics, Pentanet reported consolidated revenue of $11.1 million for the quarter, up 7% year on year. Consolidated gross profit was up 6% from the prior corresponding period to $5.2 million.
The ASX microcap stock has been focused on accelerating its 5G network expansion. Management said Pentanet was on track to double its 5G network coverage in FY 2025. This focus helped drive a 17% quarter-on-quarter boost in its 5G subscribers to 709 in total.
And gaming revenue could provide ongoing support for Pentanet shares. The company reported 31% year-on-year growth in gaming revenue to $1.1 million for H1 FY 2025. Average revenue per user (ARPU) in Cloud Gaming increased by 23% from Q1 to $17.
Also likely grabbing ASX investor interest, the company's net operating cash flow increased to $900,000 in Q2.
Commenting on the strong quarterly results sending the ASX microcap stock rocketing today, Cornish said:
Our commitment this year to double our 5G coverage is on schedule and will bolster our ultrafast bandwidth capabilities and set the stage for sustainable competitive growth and profitability for our Telco division.
As we continue to build and expand our 5G capacity, we've simultaneously increased optimisation of our NVIDIA Cloud division, showing our ability to increase monetisation of our CloudGG platform in stages effectively.
Looking ahead, Cornish added:
This achievement is built on the foundation of scaling up from our freemium service strategy, and we're now positioned to leverage our increased capacity to deliver even greater value to our customers and further growth for stakeholders.
