ikeGPS Posts 33% Subscription Revenue Growth and Positive EBITDA in FY26

Subscription Revenue and EBITDA Milestones

ikeGPS Group Limited (NZX:IKE / ASX:IKE) has posted a robust FY26, with platform subscription revenue hitting approximately NZ$19.2 million, marking a 33% increase on the prior year. The company also achieved positive underlying EBITDA in March 2026, fulfilling its guidance for the financial year. Total revenue rose 6% to NZ$26.6 million, while gross margin improved significantly to around 80%, with platform subscription gross margin reaching 94%.

The platform subscription annualised exit run rate (ERR) stood at NZ$20.7 million at 31 March 2026, up 18% year-on-year in NZD terms and 21% in constant currency. A one-off project completion by a large, long-term communications customer slightly tempered the exit run rate growth, but excluding this, growth would have been 30% in constant currency. The company added 83 new subscription customers during FY26, growing its base to 463, with a strong 97% customer retention rate.

PoleForeman and AI-Powered PolePilot Driving Growth

ikeGPS’s PoleForeman software, designed for US distribution network structural analysis, has rapidly become an industry standard, achieving NZ$11 million in annualised recurring revenue (ARR) within two years of launch. It is now used by approximately 200 customers, including eight of the 10 largest investor-owned utilities in North America.

AI integration has been a key growth driver. The PolePilot AI automation platform, embedded within IKE Office Pro, enabled a 10% price increase across the subscription base without any customer churn. This validated revenue uplift is expected to primarily impact FY27 results. The company emphasises that AI acts as an accelerant rather than a disruptor, leveraging proprietary datasets of over 20 million engineered power assets and embedding its products into utility engineering standards, creating high switching costs.

ikeGPS’s AI strategy aims to widen the productivity gap against competitors and deepen customer loyalty, with every AI feature designed to enhance operational efficiency and pricing power. This approach aligns with the company’s strong customer advocacy, reflected in an independently assessed Net Promoter Score (NPS) of 91.

Market Position and Industry Engagement

ikeGPS software is now deployed across all 50 US states, trusted by major utilities and communications companies. The company’s investment in industry education is notable, with over 3,000 professionals attending its National Electric Safety Code (NESC) webinar series and more than 1,700 engineers completing in-person NESC and OSHA certification programmes in FY26.

The company’s Customer Council, comprising Standards Directors from leading utilities such as Duke Energy and Southern Company, actively co-creates product roadmaps, embedding IKE’s technology into engineering standards and driving institutional adoption.

These efforts support the company’s positioning amid a significant US utility infrastructure investment cycle. Morningstar DBRS projects US electric utility capital expenditure between US$1.1 trillion and US$1.4 trillion from 2025 to 2030, with distribution network modernisation and pole replacement driving demand for IKE’s solutions. The $43 billion BEAD broadband funding programme further fuels fibre attachment volumes requiring structural assessments.

Financial Position and Outlook

ikeGPS ended FY26 with a strong balance sheet, holding NZ$32.8 million in cash and term deposits and no debt. The company raised NZ$27.2 million in equity during the year, expanding its share capital to NZ$134.5 million. Despite recording a net loss of NZ$7.5 million for FY26, this was a significant improvement from the NZ$16.3 million loss in FY25, reflecting improved operational leverage and cost management.

Directors conducted impairment assessments on intangible assets and goodwill, concluding no impairment was necessary based on conservative revenue growth forecasts and discount rates. Capitalised software development costs increased to NZ$5.8 million, supporting ongoing product innovation.

Looking ahead, ikeGPS expects FY27 platform subscription revenue growth to mirror FY26’s strong performance. The company is progressing two new customer council-led subscription software modules, targeting beta testing within nine months. These products have the potential to surpass previous revenue records, underpinning future growth.

Rod Snodgrass joined the Board as a Non-Executive Director, bringing infrastructure and technology sector expertise to support ikeGPS’s next growth phase.

ikeGPS’s FY26 results and FY27 guidance reflect a company capitalising on AI-driven product innovation, deep customer relationships, and robust market tailwinds. The firm’s strategic focus on embedding its software into industry standards and expanding subscription revenue bodes well for sustained momentum.

This performance update builds on the company’s earlier disclosures, including the 33% subscription revenue growth and positive EBITDA achievement reported in April 2026, confirming consistent execution against its strategy.