ikeGPS Group (IKE) Q2 2026 earnings summary

Executive summary

• Achieved 47% YoY growth in platform subscription revenue exit run rate, with recognized subscription revenue up 35% to NZ$8.8m and total revenue up 5% to NZ$12.8m for 1H FY26.

• Recurring and re-occurring sources accounted for approximately 90% of total revenue, with gross margin improving to 75% and cash operating expenses remaining flat.

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

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

• Launched AI-driven automation tools, including PolePilot™ and enhancements to IKE Office Pro, to drive productivity and ARPU uplift.

Financial highlights

• Platform subscription revenue grew 35% YoY to NZ$8.8m, with seat licenses up 55% and total revenue at NZ$12.8m (+5% YoY).

• Gross margin rose to 75% (NZ$9.6m), up from 67% YoY, and platform subscription gross margin reached 93%.

• Platform transaction revenue declined 32% to NZ$2.7m due to U.S. fiber sector volatility; hardware and other revenue fell 25% to NZ$1.3m.

• Recurring subscription and transaction revenues now comprise up to 90% of total revenue.

• Three-year CAGR for subscription revenue is approximately 30%.

Outlook and guidance

• FY26 guidance reiterated for 35% or greater growth in platform subscription revenue and EBITDA breakeven on a run-rate basis in 2H FY26.

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