Key Highlights

  • Platform subscription revenue for the September year to date was about NZ$11M, up 22% on the prior comparable period.
  • Total cash and deposits were about NZ$27.4M at 30 September 2026, with no debt and cash ahead of internal plan.
  • Gross margin reached NZ$10.2M, or 81% of revenue, compared with 75% in the prior comparable period.
  • Three new subscription products are targeted for market launch in the second half of FY27.

ikeGPS Group Limited (ASX:IKE) released its performance update for the six months to 30 September 2026 on 23 October 2026, reporting platform subscription revenue of about NZ$11 million for the September year to date, up 22% on the prior comparable period. The company also said full-year FY27 subscription revenue growth is now expected to land below the roughly 35% previously indicated. All figures are in New Zealand dollars unless stated.

Subscription and Margin Figures

Annualized exit run rate of subscription revenue reached about NZ$22 million, up 13%, while seat count rose 11% at 30 September. Total revenue was about NZ$12.7 million, roughly flat, which the company attributed to softness in one-off, lower-margin professional services revenue. Professional services revenue, formerly platform transaction revenue, fell 61%, although the company said September revenue was healthy and expects the third quarter to benefit from a growing backlog.

Gross margin was about NZ$10.2 million, up 7%, and the gross margin percentage rose to 81% from 75%. Platform subscriptions now account for 85% of total revenue, against 69% a year earlier, and non-recurring hardware and other revenue fell to 7% from 10%. Cash and deposits were about NZ$27.4 million with net receivables of about NZ$3.9 million and no debt. The company said the balance reflects payment timing of a large receivable and a seasonally higher-spend quarter.

Revised FY27 Guidance

Management expects exit run rate platform subscription revenue at 31 March 2027 to grow more than 30% on the prior comparable period. For the full year, the company said subscription revenue growth will remain firm in absolute terms but below the 35% previously indicated, with forecast growth to be confirmed at the end of November. Chief Executive Glenn Milnes said this reflects the timing of closing and recognising several major subscription contracts, with revenue recognised over the 12 months after execution, and not demand, customer losses or churn.

Why This Could Matter

The company said three products funded in FY26 are on track to be in market in the second half of FY27 and are expected to deliver material additional recurring subscription revenue from FY28. They are Secondary Voltage Analysis, which extends IKE into electrical analysis for distribution transformers; IKE PoleForeman 2.0, aimed at communications companies deploying fibre; and an AI-based Make-Ready Engineering platform designed to automate a historically manual workflow. The products will be demonstrated at an investor call in November.

Where Things Stand

Mr Milnes said the multi-year view is unchanged and the business is performing broadly to expectations. Revised full-year subscription growth will be confirmed at the end of November.