ikeGPS Group Accelerates Subscription Revenue Growth by 35% in 3Q FY26

Strong Subscription Revenue Momentum

ikeGPS Group Limited (ASX, IKE) has delivered a compelling update for the third quarter of FY26, showcasing continued momentum in its core subscription business. The company reported a 35% increase in the exit run rate of platform subscription revenue, reaching an annualised NZ$21.1 million. This growth reflects a 38% rise in recognised subscription revenue over the nine months to 31 December 2025, signalling strong customer acquisition and retention.

While total revenue grew a more modest 7% to NZ$19.8 million, the company’s gross margin expanded significantly to 79%, up from 68% in the prior corresponding period. This margin improvement underscores the scalable nature of ikeGPS’s software platform and its shift towards higher-margin recurring revenue streams.

Product Innovation and Market Tailwinds

ikeGPS is advancing its product roadmap with two new subscription software modules developed in close collaboration with customer councils. The first module is on track for initial beta testing within nine months, while the second has completed prototyping and is moving into full-scale development. The company’s embrace of AI-first development practices is evident in the launch of the PolePilot™ AI platform, which is expected to accelerate both new customer acquisition and upselling within existing accounts.

CEO Glenn Milnes highlighted the favourable macro environment driving demand for ikeGPS’s solutions. North American electric utilities and communications companies face unprecedented infrastructure investment needs, including grid modernisation, renewable energy integration, and 5G deployment. These sector tailwinds are translating into a robust sales pipeline and sustained growth opportunities for the company.

Financial Strength and Outlook

ikeGPS’s balance sheet remains strong, with NZ$32.3 million in cash and no debt as of 31 December 2025. This financial position supports ongoing investment in product development and market expansion. The company reiterated its FY26 guidance, targeting approximately 35% or greater growth in platform subscription revenue and achieving EBITDA breakeven on a monthly run-rate basis by year-end.

Notably, the IKE PoleForeman software, launched less than two years ago, has surpassed NZ$10 million in recurring revenue on an exit run rate basis, demonstrating the company’s ability to scale new offerings rapidly.

Looking Ahead

With a diversified and growing subscription base, innovative AI-driven products, and strong market demand, ikeGPS is well positioned to capitalise on the expanding electric utility infrastructure software market. Investors will be watching closely to see how the company executes on its ambitious product development timeline and sustains its growth trajectory into FY27.