Key Highlights

  • ikeGPS reported platform subscription Revenue of about NZ$11 million for the September year to date, up 22 per cent on the prior corresponding period.
  • The company said FY27 subscription revenue growth is now expected to be below the roughly 35 per cent previously indicated, citing the timing of several large contracts.
  • Total cash and deposits were about NZ$27.4 million at 30 September 2026, with no debt.

ikeGPS Group Limited (ASX:IKE) reported on 23 October 2026 a performance update for the six months to 30 September 2026, with subscription revenue higher than a year earlier but full-year subscription revenue growth now expected to be below the roughly 35 per cent previously indicated. The company attributed the change to the timing of closing and recognising several large subscription contracts, and said it was not due to weaker demand, customer losses or churn. All figures are in New Zealand dollars.

Platform subscription revenue for the September year to date was about NZ$11 million, up 22 per cent on the prior corresponding period. The annualised exit run rate of subscription revenue was about NZ$22 million, up 13 per cent, and seat count rose 11 per cent. Total revenue was about NZ$12.7 million, approximately flat on the prior period, with the company's slide showing a 1 per cent decline.

Subscriptions made up 85 per cent of total revenue, against 69 per cent a year earlier, while hardware and other non-recurring revenue was 7 per cent, down from 10 per cent. Professional services revenue, formerly platform transaction revenue, fell 61 per cent. Management referred to continued rural fibre funding headwinds through August, a pick-up in September and a growing Backlog entering the third quarter. The company added 48 net new subscription customers in the period, although the presentation's wording on the comparison basis is ambiguous.

Margins and balance sheet

Gross Margin was about NZ$10.2 million, up 7 per cent, and the gross margin percentage was 81 per cent compared with 75 per cent a year earlier. Subscription gross margin was about 95 per cent. The company attributes the change to the larger share of subscription revenue. EBITDA was not disclosed.

At 30 September 2026 total cash and deposits were about NZ$27.4 million and net receivables about NZ$3.9 million, with no debt. The company said cash was ahead of its internal plan, and that the timing of a large receivable payment and a seasonally higher spend in the second quarter affected the closing balance.

Guidance

ikeGPS (ASX:IKE) said subscription exit run rate at 31 March 2027 is expected to grow by more than 30 per cent on the prior comparable period. For FY27 recognised subscription revenue, the company said growth is expected to be below the earlier indication of about 35 per cent, because revenue on contracts is recognised over the 12 months after execution and several large contracts have shifted in timing. It will confirm its forecast growth at the end of November 2026. The announcement gives no dollar guidance and no customer names. Three-year compound annual growth rates were reported at 29 per cent for run rate, 28 per cent for platform subscription revenue and 31 per cent for seats, and the net promoter score was 91. Chief executive Glenn Milnes said the company is performing broadly to expectations year to date and remains confident about the revenue timing shift, citing long-term contracts, a growing pipeline and electrification tailwinds in North America.

New products and milestones

Three products are scheduled for launch in the second half of FY27: IKE PoleForeman secondary voltage analysis, which extends into electrical delivery; IKE PoleForeman 2.0, offering structural analysis for communications and fibre companies; and an AI-based make-ready engineering platform. The company expects them to add material recurring subscription revenue from FY28 and plans to demonstrate them on an investor call in November 2026. No pricing was provided.

Risks and caveats

The company cautions that actual results may differ materially from forward-looking statements. Contract timing continues to influence how much revenue is recognised in FY27, and the full-year forecast remains unconfirmed until the end of November. Professional services revenue remains exposed to rural fibre funding conditions.