ikeGPS has reported a robust first half of FY26 with subscription revenue soaring 47%, a successful A$24 million capital raise, and inclusion in the ASX All Ordinaries Index, underscoring its expanding footprint in the US grid modernization market.
- 47% growth in annualized exit run rate platform subscription revenue
- 35% year-to-date subscription revenue increase
- A$24 million oversubscribed capital raise completed
- Reiterated FY26 guidance with EBITDA breakeven expected in second half
- Strong US market opportunities driven by grid modernization and broadband funding
Strong Financial Momentum
ikeGPS has delivered a compelling performance in the first half of FY26, highlighted by a 47% increase in its annualized exit run rate for platform subscription revenue, reaching approximately NZ$19.4 million. Year-to-date subscription revenue also climbed 35% to NZ$8.8 million, contributing to total revenue growth of 5% to NZ$12.8 million. The company’s gross margin improved significantly to around 75%, up from 67% in the prior comparable period, reflecting a shift toward higher-margin subscription services.
Cash operating expenses remained stable year-on-year, while the balance sheet was bolstered by an oversubscribed A$24 million capital raise, leaving ikeGPS with NZ$34 million in cash and no debt. This financial strength was recognized with the company’s elevation to the ASX All Ordinaries Index, marking its status among Australia’s 500 largest listed companies by market capitalization.
Market Dynamics and Growth Drivers
The company’s growth is underpinned by a massive addressable market in North America, where aging infrastructure and federal resilience funding are driving unprecedented demand for digital grid intelligence. With approximately 130 million wooden poles nearing critical replacement age, and up to $2 trillion in grid modernization investment expected over the next decade, ikeGPS is well positioned to capitalize on this wave.
Federal grants targeting pole replacement and hardening, alongside a $43 billion broadband funding initiative, are accelerating the need for digital pole data analysis tools. ikeGPS’s solutions, including its AI-powered PolePilot and the PoleForeman structural analysis platform, have gained strong traction, with PoleForeman now the standard for structural analysis in 8 of the 10 largest US electric utilities.
Customer Expansion and Product Innovation
Customer growth remains robust, with 49 new subscription customers added in 1H FY26 and a 55% increase in total platform subscription seats. The company estimates it currently serves only 6% of the US addressable market, with significant white space for cross-selling and upselling within existing accounts, as well as greenfield opportunities across the remaining 94% of potential customers.
Product innovation continues to be a key differentiator. The recently launched PolePilot AI subscription module enhances productivity for engineers analyzing pole data, complementing the broader IKE Office Pro platform. These tools support utilities in meeting increasingly stringent reliability and resiliency compliance requirements, while enabling faster, more accurate decision-making.
Outlook and Strategic Positioning
ikeGPS has reiterated its FY26 guidance, targeting at least 35% growth in platform subscription revenue and achieving EBITDA breakeven on a run-rate basis in the second half of the fiscal year. The company’s strategic focus on recurring subscription and transaction revenue streams, combined with its strong balance sheet and expanding US market presence, positions it well for sustained growth.
As the US utility sector grapples with aging infrastructure, climate-driven disruptions, and the rollout of 5G and fiber broadband, ikeGPS’s digital solutions are becoming increasingly indispensable. The company’s mission to be the most trusted provider of software solutions for distribution grid productivity underscores its ambition to capture a leading share of this multi-billion-dollar market.
Bottom Line?
With strong financials, innovative AI tools, and a vast US market opportunity, ikeGPS is poised for a transformative FY26 and beyond.
Questions in the middle?
- How will ongoing US regulatory volatility impact ikeGPS’s lower-margin services business?
- What is the timeline and scale for broader adoption of AI-powered products like PolePilot?
- How effectively can ikeGPS convert its large ‘white space’ opportunity within existing customers?