ikeGPS Group (ASX: IKE) Posts 22% Rise in 1H FY27 Subscription Revenue

Aditi Sarkar

23 October 2026 04:26 PM AEDT

ikeGPS Group (ASX: IKE) Posts 22% Rise in 1H FY27 Subscription Revenue

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Highlights

Platform subscription revenue of around NZ$11 million in 1H FY27, up 22% on the prior comparable period.
Recurring subscriptions accounted for about 85% of total revenue, up from 69%.
Exit run rate subscription revenue outlook of more than 30% versus the prior period for FY27.
New products on track for market launch in 2H FY27.

ikeGPS Group Limited (ASX:IKE) has released a performance update for the second quarter and first half of FY27, presented by CEO and Managing Director Glenn Milnes and CFO Paul Cardosi. The update points to continued growth in the company’s recurring subscription business, with platform subscription revenue of approximately NZ$11 million for the September year-to-date period, a 22% increase on the prior comparable period. All amounts are in New Zealand dollars unless stated otherwise.

Subscription Growth Leads First-Half Performance

Platform subscription revenue recorded 22% year-on-year growth, with a three-year compound annual growth rate (CAGR) of 28%. The annualised exit run rate of platform subscription revenue rose 13% versus the prior period, with a three-year CAGR of 29%. Platform subscription seats grew 11% on the prior period, reflecting a three-year CAGR of 31%.

The company also added 48 net new subscription customers during the September year-to-date period. With recurring subscriptions now making up about 85% of total revenue, ikeGPS highlighted the strength of its recurring revenue model.

Revenue Mix and Professional Services

Platform subscriptions increased their share of total revenue to 85%, up from 69% in the prior period. Non-recurring revenue from hardware and other sources fell to 7% of total revenue from 10%. This change in mix contributed to gross margin improving by 7% versus the prior period, which the company said provides continued operating leverage.

Professional services revenue, formerly known as platform transaction revenue, declined 61% compared with the prior period. ikeGPS attributed this to headwinds in rural fibre funding that continued through August. However, the company noted a pick-up in September revenue and a larger backlog entering the third quarter.

FY27 Guidance and Product Pipeline

For FY27, ikeGPS is guiding to exit run rate subscription revenue growth of more than 30% versus the prior period. The company noted that the timing of customer contracts is affecting recognised subscription revenue for FY27, although full-year subscription revenue is expected to be solid in absolute terms. Forecast guidance is expected to be confirmed by the end of November.

New products remain on track for market launch in the second half of FY27 and are expected to support further expansion in annual recurring revenue.

Key Takeaways

ikeGPS’s first-half update shows the business leaning further into recurring subscriptions, which now make up the bulk of its revenue. While professional services revenue faced funding-related headwinds, the company pointed to improving momentum from September. Confirmation of full-year guidance by the end of November and the new product launches in 2H FY27 are the next milestones to watch.

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