ikeGPS Group delivered a strong FY26 with platform subscription revenue up 33% to NZ$19.2 million and positive underlying EBITDA in March, supported by AI-driven pricing and expanding US utility adoption.
- Platform subscription revenue grew 33% to NZ$19.2 million in FY26
- Positive underlying EBITDA achieved in March 2026
- PoleForeman product reached NZ$11 million ARR within two years
- AI-powered PolePilot enabled 10% price increase with no churn
- FY27 guidance targets similar subscription revenue growth
Subscription Revenue Growth and Earnings Milestone
ikeGPS Group (NZX:IKE) closed FY26 with platform subscription revenue climbing approximately 33% to NZ$19.2 million, narrowly missing its 35% growth guidance but still a notable acceleration from prior years. More significantly, the company reported positive underlying EBITDA in March 2026, marking a key earnings inflection point after years of investment in product development and market expansion. Total revenue for the year rose 6% to NZ$26.6 million, while gross margin expanded sharply to 81%, driven by a 94% margin on subscription revenue.
The annualised exit run rate (ERR) for platform subscriptions reached NZ$20.7 million, an 18% increase on the prior year despite the completion of a large customer project in 4Q. Excluding this one-off, ERR growth would have been closer to 30% in constant currency, underscoring robust demand from electric utilities, communications companies, and engineering service providers.
PoleForeman and AI Integration Fuel Revenue Expansion
ikeGPS’s flagship product, PoleForeman, has rapidly become the structural analysis standard for US electric utilities, achieving NZ$11 million in annualised recurring revenue within two years of launch. With around 200 customers onboard, including eight of the 10 largest investor-owned utilities in North America, PoleForeman’s adoption outpaced initial expectations and remains a cornerstone of the company’s growth strategy.
Artificial intelligence is no longer just a buzzword for ikeGPS. The launch of PolePilot, an AI automation platform embedded in IKE Office Pro, enabled a 10% price increase across the subscription base without any customer churn. This validated revenue uplift highlights AI’s role as a growth accelerant rather than a disruptive threat. CEO Glenn Milnes emphasised that IKE’s proprietary dataset of over 20 million engineered power assets and deep integration into utility engineering standards create a defensible moat against generic AI competition.
Market Positioning and Industry Engagement
ikeGPS’s software now serves all 50 US states and is trusted by five of the 10 largest US communications companies as well as major utilities. The company’s commitment to industry education through its National Electric Safety Code (NESC) webinar series and certification programmes has trained over 4,700 engineers in FY26 alone, reinforcing IKE’s position as the go-to platform for compliance and operational excellence.
The Customer Council, composed of Standards Directors from heavyweight utilities like Duke Energy and Southern Company, remains a strategic asset. Their direct involvement in product roadmap development ensures that new modules under development have strong demand visibility and institutional lock-in, creating high switching costs and predictable revenue streams.
Strong Balance Sheet and Growth Outlook
Financially, ikeGPS ended FY26 with NZ$33 million in cash and zero debt, providing ample runway for product innovation, customer acquisition, and selective mergers and acquisitions. The company’s FY27 guidance calls for subscription revenue growth at levels similar to FY26, reflecting confidence in its pipeline and market tailwinds.
These tailwinds include a US$1.1 to 1.4 trillion electric utility capital expenditure cycle through 2030, driven by grid modernization and regulatory mandates for digital pole intelligence. Additionally, the $43 billion BEAD broadband funding programme continues to fuel demand for pole assessments, a core use case for IKE’s software.
Adding to the leadership team, Rod Snodgrass joined as a Non-Executive Director, bringing infrastructure and technology sector expertise to support IKE’s next growth phase.
Bottom Line?
ikeGPS’s FY26 results signal a maturing software business capitalising on AI integration and structural market growth, but execution risks remain as new products roll out and competition intensifies.
Questions in the middle?
- How will the upcoming customer council-led software modules impact revenue and margins?
- Can ikeGPS sustain its pricing power as AI features proliferate across utility software?
- What competitive threats could emerge from general-purpose AI or new market entrants?