ikeGPS Group (IKE) H2 2025 earnings summary

Executive summary

• Achieved total recognized revenue of NZ$25.2m for FY25, up 19% year-over-year, with strong growth in subscription revenue and gross margin improvement to 69% from 60% in FY24.

• Exit run rate of annual platform subscription revenue reached NZ$17.6m (+48% vs pcp), with subscription revenue at NZ$14.4m (+34% vs pcp).

• Adjusted EBITDA loss improved to NZ$6.1m from NZ$9.8m in FY24; net loss was NZ$16.3m, an 11% improvement year-over-year.

• Cash and net receivables totaled NZ$15.4m at year-end, with no debt and a stable cash position compared to the prior year.

• Continued investment in product innovation, operational efficiency, and talent development, with a focus on North American market expansion.

Financial highlights

• Subscription revenue grew 34% year-over-year to NZ$14.4m; transaction revenue up 3% to NZ$7.6m; hardware and services revenue up 5% to NZ$3.2m.

• Gross margin increased 37% to NZ$17.4m, with gross margin percentage rising to 69% from 60% in FY24.

• Cash operating expenses decreased by 2% year-over-year.

• Adjusted EBITDA loss improved by 38% to NZ$6.1m; net loss improved by 11% to NZ$16.3m.

• Excluding non-cash impairment, net loss improved by 18% year-over-year.

• Total cash and net receivables at NZ$15.4m, with NZ$10.3m in cash and NZ$5.1m in net receivables.

Outlook and guidance

• Subscription revenue expected to grow 35% or more in FY26, with the company targeting EBITDA break-even on a run rate basis in the second half of FY26.

• Continued focus on North American market leadership and introduction of new automation modules.

• Global tariff situation not expected to materially impact business.