Highlights

  • In 1HFY 26, exit run rate of platform subscription revenue increased 47% year-on-year to ~NZD 19.4m.
  • Gross margin rose to 75%, compared to 67% in the prior corresponding period.
  • FY26 guidance reiterated for ~35% or greater subscription revenue growth and EBITDA breakeven.

IkeGPS Group Limited (NZX:IKE) announced its performance update for the six months ended 30 September 2025 (1H FY26), reporting a continued increase in subscription-based revenue. The company’s exit run rate (ERR) of platform subscription revenue reached approximately NZD 19.4m, representing a 47% rise compared to the prior corresponding period (pcp). Recognized subscription revenue grew 35% to around NZD 8.8m.

Total revenue for the period was approximately NZD 12.8m, up 5% versus pcp. The company noted that lower-margin services revenue declined due to volatility in the fibre communications market, which is expected to recover. Gross margin increased to around NZD 9.6m, up 18% year-on-year, with gross margin percentage improving to 75% from 67% in pcp.

Operating expenses remained materially flat compared to the previous year, while cash reserves stood at NZD 34m as of 30 September 2025, with no debt.

Product Innovation and New Launch

During the period, ikeGPS introduced PolePilot™, an AI-driven automation capability within its IKE Office Pro platform. The software automates electric utility pole analysis, accelerating workflows by processing field data, identifying infrastructure components, and generating analysis reports. The company stated that PolePilot™ significantly reduces manual engineering effort, improving efficiency for customers.

Management noted positive customer response to the launch, with expectations that PolePilot™ will drive higher adoption rates and average revenue per user (ARPU).

Capital Raise and Growth Initiatives

In August, ikeGPS completed an oversubscribed capital raise of approximately NZD 26m (AUD 24m). The funds will be used to enhance product development, expand sales and marketing efforts, strengthen customer implementation capabilities, and support scaling operations.

Additionally, Paul Cardosi was appointed as Chief Financial Officer. Cardosi brings experience from senior roles at Trimble Inc. (NASDAQ: TRMB) and Dassault Systems (Euronext: DSY).

IKE CEO & Managing Director Glenn Milnes said:
"2Q26 was another strong quarter for IKE across multiple dimensions - operational performance, product innovation, balance sheet strength, and team capability. The business continues to execute on our strategic plan, and we remain confident in delivering FY26 guidance.”

Market Outlook

IKE highlighted favourable market conditions across North America, driven by increasing infrastructure investment in grid modernization, renewable integration, 5G rollout, and ageing asset replacement. While services revenue remains impacted by regulatory uncertainty in fibre projects, the company expects continued growth in its high-margin subscription business.

IKE reaffirmed its FY26 guidance, targeting approximately 35% or greater growth in platform subscription revenue and achieving EBITDA breakeven on a run-rate basis within 2H FY26.

Share Performance

IKE’s shares were trading at NZD 1.02 per share, up by 5.15% from its previous close of NZD 0.97.