ikeGPS Group (IKE) H2 2025 earnings summary

Executive summary

• Achieved total recognized revenue of NZ$25.2m for FY25, up 19% year-over-year, with strong growth in subscription revenue and gross margin improvement.

• Exit run rate of annual platform subscription revenue reached NZ$17.6m, a 48% increase year-over-year.

• Adjusted EBITDA loss improved to NZ$6.1m from NZ$9.8m in the prior year; net loss was NZ$16.3m, 11% lower year-over-year.

• Cash and net receivables totaled NZ$15.4m at year-end, with no debt and a stable cash position compared to the prior year.

• Continued investment in product innovation, operational efficiency, and talent development to support long-term growth.

Financial highlights

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

• Gross margin increased 37% to NZ$17.4m, with gross margin percentage rising to 69% from 60% year-over-year.

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

• Adjusted EBITDA loss improved by NZ$3.7m year-over-year; net loss excluding impairment improved by 18%.

• Net tangible assets per security increased to NZ$0.09 from NZ$0.04 year-over-year.

Outlook and guidance

• Subscription revenue expected to grow at 35% or greater in FY26, with a target to reach EBITDA break-even on a run rate basis in the second half of FY26.

• Continued focus on North American market expansion, product innovation, and operational leverage.

• Global tariff situation has no material impact on business as a U.S. software provider.