ikeGPS Group (IKE) H2 2025 earnings summary

Executive summary

• FY25 total recognized revenue reached NZ$25.2m, up 19% year-over-year, with a net loss of NZ$16.3m.

• Subscription revenue exit run rate grew 48% to NZ$17.6m; subscription revenue for FY25 was NZ$14.4m, up 34% year-over-year.

• Over 4,300 new subscription seat licenses were added, more than doubling the total to 8,500.

• Gross margin improved to 69% from 60% year-over-year, reflecting a shift to higher-margin subscription products.

• Adjusted EBITDA loss narrowed to NZ$6.1m from NZ$9.8m in the prior year.

Financial highlights

• Subscription revenue grew 34% year-over-year to NZ$14.4m; transaction revenue rose 3% to NZ$7.6m; hardware and services revenue increased 5% to NZ$3.2m.

• Gross margin rose 37% to NZ$17.4m, with gross margin percentage at 69%.

• Cash operating expenses decreased 2% year-over-year.

• Net comprehensive loss improved by 11% year-over-year; excluding non-cash impairment, loss improved by 18%.

• Cash and net receivables totaled NZ$15.4m at year-end, with NZ$10.3m in cash and no debt.

Outlook and guidance

• FY26 subscription revenue growth expected to be 35% or greater.

• Anticipates reaching EBITDA break-even on a run rate basis in the second half of FY26.

• Continued margin improvement expected as revenue mix shifts further to subscriptions.