ikeGPS Group (IKE) Q2 2026 earnings summary

Executive summary

• Achieved 47% year-over-year growth in platform subscription revenue exit run rate, with recognized subscription revenue up 35% YoY to NZ$8.8m and total revenue up 5% to NZ$12.8m.

• Recurring and re-occurring revenue now comprise 90% of the mix, with subscription revenue making up 69% of total revenue.

• Gross margin improved to 75% (from 67% YoY), and cash operating expenses remained materially flat despite business scaling.

• Completed an oversubscribed capital raise (A$24m/NZ$26m), resulting in a strong balance sheet with NZ$34m cash and no debt.

• Elevated to the ASX All Ordinaries Index, reflecting increased market capitalization.

Financial highlights

• Platform subscription revenue grew 35% YoY to NZ$8.8m; total revenue reached NZ$12.8m (+5% YoY).

• Gross margin rose to 75% (up from 67% YoY), with platform subscription gross margin at 93%.

• Platform transaction revenue declined 32% to NZ$2.7m due to U.S. rural fiber contract delays and regulatory volatility.

• User seat count for subscription products increased 55% YoY, with 49 new subscription customers added in 1H FY26.

• Hardware and other revenue decreased 25% to NZ$1.3m.

Outlook and guidance

• Reiterated guidance for platform subscription revenue growth of approximately 35% or greater for FY26.

• Targeting EBITDA breakeven on a run-rate basis in the second half of FY26.

• Expect transaction revenue to rebound in the medium term as U.S. federal funding issues resolve.

• Continued investment in new product modules, with much of the spend being capitalizable.

• Expectation for continued healthy growth in recurring subscription revenue.