Highlights

  • Platform subscription Revenue reached about NZ$11 million in the six months to September 2026, up 22%.
  • Management now expects FY27 subscription revenue growth below the roughly 35% previously indicated, citing delayed contract recognition.
  • Gross Margin percentage improved to 81% from 75%, as subscriptions rose to 85% of total revenue.
  • Three new products, including PoleForeman 2.0 and an AI make-ready engineering platform, are targeted for 2H FY27 launch.

IkeGPS Group (ASX:IKE) has reset expectations for FY27 subscription revenue growth after several large contracts closed later than planned, even as its half-year update pointed to higher margins and a three-product pipeline due in the second half. In its 1H FY27 update released on 23 October 2026, the company said full-year subscription revenue growth would land below the roughly 35% it had previously indicated, with the exact rate to be confirmed at the end of November.

The New Zealand-based group, listed on both the NZX and ASX, sells subscription software used to design, analyse and manage distribution poles and the networks they carry, serving electric utilities, communications companies and engineering firms across North America.

Higher Margins Offset a Flat Top Line

For the six months to 30 September 2026, platform subscription revenue rose 22% to about NZ$11 million, while the annualised exit run rate of subscription revenue climbed 13% to about NZ$22 million. Total revenue was broadly flat at about NZ$12.7 million because professional services revenue fell 61%.

Gross margin increased 7% to about NZ$10.2 million, lifting the margin percentage to 81% from 75%. Cash and deposits stood at about NZ$27.4 million with no debt, which the company said was ahead of internal plan after a large receivable payment and seasonally higher spending in the second quarter.

Contract Timing Drives the Guidance Change

Management explained that several major subscription contracts were signed and recognised later than expected. Because subscription revenue is recognised over the 12 months after execution, the delay pushes revenue into later periods. The company stressed the shift did not reflect weaker demand, customer losses or churn, pointing to contracts in place and a strong sales pipeline.

Operating indicators remained firm. Seat numbers grew 11% and the net promoter score held at 91. In the June 2026 quarter, platform subscription revenue had risen 27% to about NZ$5.3 million, with subscription enterprise customers increasing to 476 from 441.

Foundations Laid in FY26

In FY26 to 31 March 2026, IkeGPS reported total revenue of about NZ$26.6 million, with platform subscription revenue up 33% to about NZ$19.2 million. The Business reached positive underlying EBITDA in the March 2026 quarter on a run-rate basis, and its IKE PoleForeman product passed about NZ$13 million in ARR within two years of launch.

At its September annual meeting, the company said its PolePilot AI module had supported a price increase of about 10% across the IKE Office Pro subscription base without churn, with the benefit expected mainly in FY27.

Outlook Centres on Product Launches

IkeGPS is targeting growth of more than 30% in exit run-rate subscription revenue by 31 March 2027. Its three new products, a Secondary Voltage Analysis module for PoleForeman, PoleForeman 2.0 for fibre deployers and an AI Make-Ready Engineering platform, are expected in market in 2H FY27, with material Recurring Revenue anticipated from FY28. Demonstrations are planned for the November 2026 investor call.

Shares were priced at A$0.71 on 2 November 2026, down 1.39% on the day and 36.89% lower over 12 months.