How ikeGPS’s AI-Powered PolePilot™ is Driving 47% Subscription Revenue Growth
ikeGPS Group reports a robust first half of FY26 with a 47% increase in subscription revenue exit run rate and launches AI-driven PolePilot™ to boost productivity and ARPU.
- 47% growth in platform subscription revenue exit run rate to NZ$19.4m
- 35% increase in recognized subscription revenue for 1H FY26
- Launch of AI-powered PolePilot™ enhancing utility pole analysis
- Successful NZ$26 million capital raise to fund growth initiatives
- Reiteration of FY26 guidance for ~35% subscription revenue growth and EBITDA breakeven
Strong Revenue Growth and Margin Expansion
ikeGPS Group Limited (ASX – IKE) has delivered another impressive period of growth in the first half of FY26, reporting a 47% increase in the exit run rate of platform subscription revenue to approximately NZ$19.4 million. Recognized subscription revenue also rose by 35% to NZ$8.8 million, underscoring strong customer adoption of its software platform. This growth was achieved alongside a notable improvement in gross margin, which climbed to 75% from 67% in the prior corresponding period, reflecting the company’s successful shift towards higher-margin subscription products.
Innovative AI-Driven Product Launch – PolePilot™
Central to ikeGPS’s momentum is the launch of PolePilot™, an AI-powered companion module integrated within its core IKE Office Pro product. This breakthrough technology automates complex engineering workflows for electric utility pole analysis, significantly reducing the time and expertise required for network planning and maintenance. By converting hours of manual work into minutes with enhanced accuracy, PolePilot™ not only drives substantial productivity gains for customers but also supports increased average revenue per user (ARPU) for ikeGPS.
Capital Raise and Financial Strength
In August, ikeGPS successfully completed a heavily oversubscribed capital raise, securing NZ$26 million (A$24 million) through a combination of institutional placement and retail share purchase plan. This influx of capital bolsters the company’s balance sheet, which already boasts NZ$34 million in cash and zero debt, positioning ikeGPS to accelerate investments in product innovation, sales and marketing expansion, and customer success initiatives. The company’s strong financial footing also enabled it to maintain flat operating expenses despite rapid growth.
Leadership and Market Outlook
Adding to its growth narrative, ikeGPS appointed Paul Cardosi as Chief Financial Officer. Cardosi brings extensive experience scaling SaaS businesses in infrastructure and construction technology sectors, complementing ikeGPS’s focus on the North American electric utility market. The broader market environment remains highly favorable, driven by infrastructure modernization, renewable energy integration, and expanding communications networks. While some volatility persists in lower-margin fibre services due to regulatory uncertainty, the company’s core subscription business continues to thrive.
Outlook and Guidance
ikeGPS reiterated its FY26 guidance, targeting approximately 35% or greater growth in platform subscription revenue and achieving EBITDA breakeven on a run-rate basis in the second half of the fiscal year. With a robust sales pipeline, innovative AI capabilities, and strong investor backing, ikeGPS appears well-positioned to capitalize on the growing demand for electric utility infrastructure software solutions.
Bottom Line?
ikeGPS’s blend of strong growth, AI innovation, and financial strength sets the stage for a pivotal second half of FY26.
Questions in the middle?
- How quickly will PolePilot™ adoption translate into sustained ARPU growth?
- What impact will ongoing regulatory uncertainty in fibre services have on overall revenue mix?
- How will ikeGPS leverage its capital raise to expand market share in North America?
