ikeGPS Posts 34% Subscription Revenue Growth, Narrows EBITDA Loss to NZ$6.1m

Strong Subscription Growth Drives Revenue Momentum

ikeGPS Group Limited (IKE) has delivered a compelling FY25 financial performance, marked by a 48% increase in its annual subscription revenue exit run rate to NZ$17.6 million. This surge reflects the company’s successful expansion in the software-as-a-service market for electric utilities and engineering service providers, particularly in North America. Total recognized revenue rose 19% to NZ$25.2 million, underpinned by a 34% jump in subscription revenue to NZ$14.4 million.

The company’s strategic shift towards high-margin subscription software products is evident in its gross margin improvement to 69%, up from 60% the previous year. This margin expansion, coupled with a 2% reduction in cash operating expenses, highlights ikeGPS’s operational leverage and efficiency gains amid growth.

Improved Profitability and Cash Position

While ikeGPS reported a net loss of NZ$16.3 million for FY25, this included a NZ$4.4 million non-cash impairment related to legacy AI assets. Excluding this charge, the net loss improved by 18% compared to the prior year. Adjusted EBITDA loss narrowed significantly to NZ$6.1 million from NZ$9.8 million, signaling progress towards profitability.

The company’s balance sheet remains solid, with total cash and net receivables of NZ$15.4 million and no debt. Notably, the cash position of NZ$10.3 million at March 2025 was consistent with the prior year, achieved despite ongoing investments in product development and market expansion.

Acquisition Approach Rebuffed Amid Strong Growth Outlook

In a notable development, ikeGPS received a confidential, non-binding acquisition approach valuing the company at approximately NZ$1 per share, representing a 62% premium over the share price at the time and an enterprise value near NZ$165-170 million. After careful evaluation and shareholder consultations, the Board concluded the offer lacked sufficient support and ceased discussions.

CEO Glenn Milnes emphasized the company’s confidence in its growth trajectory, forecasting subscription revenue growth of 35% or greater for FY26 and anticipating EBITDA break-even on a run-rate basis in the second half of the year. The company continues to capitalize on strong market tailwinds in North America, with eight of the ten largest U.S. electric utilities standardized on ikeGPS software and a growing customer base exceeding 395 subscribers.

Innovative Product Launches Fuel Customer Expansion

ikeGPS’s recent launch of the PoleForeman platform has been a key driver of customer growth, with over 127 customers adopting the product since late 2024, including 59 new clients. This has contributed to a doubling of subscription seat licenses to over 8,500, reflecting broad adoption among distribution network engineers. The company’s focus on delivering specialized, high-value software solutions tailored to distribution grid workflows underpins its competitive advantage and customer stickiness.

Looking ahead, ikeGPS is well-positioned to benefit from ongoing investments in AI-based automation applications and the increasing demand for electrical grid hardening and capacity expansion in North America. The company’s disciplined cost management and strong recurring revenue base provide a solid foundation for sustainable growth.