ikeGPS Group (IKE) Q2 2027 earnings summary

Executive summary

• 1H FY27 total revenue was NZ$12.7m, down 1% YoY, while platform subscription revenue rose 22% to NZ$10.750m.

• Subscription revenue reached 85% of total revenue; FY27 subscription Exit Run Rate growth is expected to exceed 30%.

Financial highlights

• 1H FY27 gross margin was NZ$10.2m, up 7% YoY; gross margin percentage increased to 81% from 75%.

• Platform subscription gross margin was 95%, versus 93% in the prior period.

• Professional services revenue fell 61% to NZ$1.044m; gross margin was negative NZ$0.2m versus positive NZ$0.5m.

• Hardware and other revenue fell 27% to NZ$0.9m; its share of revenue was 7%, versus 10% in the prior period.

Outlook and guidance

• March 2027 subscription Exit Run Rate is expected to grow more than 30% versus the prior comparable period.

• FY27 subscription revenue growth is expected to be strong in absolute terms but below the previously indicated ~35%; an updated forecast was due by November month-end.

• Customer contract timing is affecting FY27 revenue; guidance was confirmed, with an update planned by end-November.

• Three new products are on track for 2H FY27 launch and are expected to drive further ARR expansion.