ikeGPS Group (IKE) Q1 2026 earnings summary

Executive summary

• Achieved a solid first quarter for FY 2026, tracking at or ahead of plan for revenue, margin, and EBITDA targets.

• Annual platform subscription revenue exit run rate grew 29% year-over-year to NZ$16.6m as of June 30, 2025.

• Total recognized revenue for the quarter was NZ$6.4m, up 12% year-over-year.

• Gross margin improved to 76%, up from 70% a year prior, driven by a shift to high-margin subscription software products.

• Fully funded for growth following a NZ$19.6m institutional placement and ongoing share purchase plan.

Financial highlights

• Subscription revenue rose 28% year-over-year to NZ$4.1m; transaction revenue declined 16% to NZ$1.5m.

• Hardware and services revenue increased 3% to NZ$0.8m.

• Gross margin for platform subscriptions reached 92%, up from 88% year-over-year.

• Platform transaction gross margin dropped to 22% from 41% year-over-year.

• Cash balance declined by $1.5 million versus Q4, mainly due to working capital timing and fewer upfront multi-year payments in Q1.

Outlook and guidance

• Reiterated guidance for 35%+ growth in platform subscription revenue for FY 2026, supported by a strong pipeline and recent contract wins.

• Targeting EBITDA breakeven on a run-rate basis in H2 FY26.

• Confident in delivering growth due to robust funnel visibility and strong July performance.

• Expects continued healthy revenue growth and building transaction volumes through the medium and long term.

• Focus remains on balancing growth and profitability, with flexibility to accelerate customer acquisition or shift to profitability as needed.