IKE - IKE GPS Group

[Greekwatchdog]

New shareholder notice on ASX, Ellerston Capital with 6.2%.
https://cdn-api.markitdigital.com/ap...b8940c41f474b6

And NZX with 2.859m shares traded.

[winner (n)]

Q1 update out today

https://api.nzx.com/public/announcement/455787/attachment/448362/455787-448362.pdf

Commentary exudes positivity so all must be going to plan. And punters will continue to believe the story

But growth is slowing ...quite significantly

I keep this chart up to date ...rollingb4 quarter sales

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[Hectorplains]

Yup it's all clap your hands wonderful stuff, eh... Err excepting that they're still EBITDA-negative...and with some segmental softness... and modest overall revenue growth.

A failure to meet H2 breakeven or slowing subscription momentum would be...interesting.

[Left Field]

I couldn't access this site most of today...no explanation.... just a frustrating site.

Q1 update out today

https://api.nzx.com/public/announcement/455787/attachment/448362/455787-448362.pdf

Commentary exudes positivity so all must be going to plan......

But growth is slowing ...quite significantly....

Agree. As I was overweight in IKE I took some nice profits out at $1.03 on Monday and I won't be participating in the cap raise because I suspect in the next few months the SP could drift lower as it's over 12 months before their new cap raise software will be generating meaningful revenue increases.

Re winner's comment that revenue growth is slowing..... one quote from the webinar today may disprove this as over the last FY they averaged 1 new customer per week, but in Qtr 1 of FY26 they say they are achieving 2 new customers per week. However these customer gains are not yet showing in transaction revenue.

Can IKE deliver their promises?  I still think they can, but suspect we won't see much SP excitement until FY27..... unless another takeover offer comes along. JMHO. DYOR.

[Minimoke]

I think they maybe close to peak USA. Disappointing they don't seem to be looking at other markets.

[Greekwatchdog]

For Bars Review

ikeGPS' (IKE) 1Q26 update was marginally below our revenue expectations, but ahead of our customer growth and gross margin estimates. While headline group revenue growth was modest (+12% vs 1Q25) it was impacted by FX movements (the USD dropped ~-7.5% against the NZD over 1Q26). Underlying metrics continue to improve. Subscriptions are now 64% of revenue and delivered a 92% gross margin in 1Q26. Ongoing softness within Transactional revenues (-16% vs 1Q25) and margins were the only areas of operational softness, as we understand US policy settings continue to impact fibre rollout momentum. IKE remains on track to meet our FY26 expectations, with management reiterating its guidance for >35% Subscription revenue growth in FY26 (FB: +38%) and EBITDA breakeven on a run-rate basis in 2H26. IKE's ~NZ$22m capital raise provides the headroom to accelerate new product development. Our forecasts and blended spot valuation of NZ$1.19 remain unchanged.

Subscription strength continues, albeit on slowing growth rates, whilst Transactions remain pressured by Trump policy positioning
1Q26 revenue of NZ$6.4m was largely in line with our estimates, with Subscription revenues rising +28% year-on-year to NZ$4.1m. 1Q26 Subscription revenues were marginally below 4Q25, showing normal seasonality. Transaction revenues fell -16% year-on-year to NZ$1.5m on transaction volumes down -35% year-on-year. We retain our expectation of a modest recovery in Transactional revenues in 2H26. Hardware revenues remained flat. The customer base expanded by a net +3% (or +16) in 1Q26, bringing the subscription total to 411. IKE ended 1Q26 with an exit annualised recurring revenue (ARR) growth rate of +29%, down from the +48% exit run rate at May 2025, as the impact of the PoleForeman introduction cycles through and FX headwinds.

Gross margin expands further due to segment mix
Quarterly gross margin dollars rose +20% year-on-year to NZ$4.8m with a gross margin percentage of 76% in 1Q26 (+600bps versus 1Q25), primarily driven by segment mix. Platform Subscriptions delivered a gross profit of NZ$3.9m (+35% year-on-year), lifting segment gross margin to 92%, up from 88% in 1Q25 and 89% in 4Q25. Platform Transactions gross margin fell to NZ$0.3m as volumes declined to 47k billable transactions vs 72k in 1Q25. Transaction segment margin contracted to 22% (from 41% in 1Q25 and 28% in 4Q25). Hardware & Other gross margin dollars lifted +20% year-on-year to NZ$0.6m as segment margin expanded to 80% (from 59% in 1Q25 and 71% in 4Q25).

Positioned for a product roadmap acceleration—with first new 'network management' module for late-FY26 or 1Q27 delivery
The NZ$19.6m placement, which was completed in July 2025, fully funds IKE's product roadmap, including delivery of the new customer council-led product modules. At its 1Q26 update, IKE had NZ$8.8m in cash prior to both the placement settling or the ongoing NZ$2.2m Share Purchase Plan (SPP) raising. We continue to view these product council led pull-through products as high-value term opportunities for IKE, with the first offering to be launched late-FY26 or 1Q27. Demand is underpinned by long-term structural demand, as electricity grid resilience and capacity plus data-rich network digitisation efforts continue to intensify.

[Left Field]

Good to see ForBar's still positive, thanks for posting GW Dog.

The recent hasty departure of the CFO is an ongoing concern for me..... not yet resolved.

[Left Field]

IKE well positioned...

https://finance.yahoo.com/news/big-tech-is-power-hungry-and-americas-aging-grid-cant-keep-up-090045961.html

Thirty-one percent of transmission equipment and 46% of distribution equipment in the US are within five years of the end of their useful life or have already passed that point, according to research from Bank of America. Across the country's electric utilities, which deliver energy to customers and maintain the infrastructure required to do so, two-thirds of 2024 spending went toward replacing existing infrastructure, the bank found.

[Greekwatchdog]

IKE well positioned...

https://finance.yahoo.com/news/big-tech-is-power-hungry-and-americas-aging-grid-cant-keep-up-090045961.html

Thirty-one percent of transmission equipment and 46% of distribution equipment in the US are within five years of the end of their useful life or have already passed that point, according to research from Bank of America. Across the country's electric utilities, which deliver energy to customers and maintain the infrastructure required to do so, two-thirds of 2024 spending went toward replacing existing infrastructure, the bank found.

Thanks for posting Left Field

I have submitted my application for the CR. Be interesting to see how much we get.
I sold a 3rd of my holdings 8 weeks ago @ $0.92, so I guess I am buying them back slightly cheaper. Be interesting to see where the share price goes from here once new shares allocated..

Lets see if management can take advantage of this massive opportunity and live up to their internal hype.

[Greekwatchdog]

Over subscribed and they have accepted over subscriptions

https://www.nzx.com/announcements/456660

[Greekwatchdog]

Latest update ex For Bar after C.R.

KE's oversubscribed and upsized share purchase plan (SPP) builds on July's institutional placement, further enhancing balance sheet flexibility. While near-term cash use is likely to increase due to the accelerated development of two customer council-led products, this is likely to be offset by ongoing improvements in operating performance. The enlarged cash position provides a buffer for continued execution of existing programmes alongside the new product roadmap, and gives IKE some headroom for potential future M&A opportunities. In its 1Q26 update, management reiterated its expectation to achieve cash flow breakeven on a run-rate basis in 2H26, consistent with our forecasts. We view the combined capital raise as strategically positive, enabling IKE to pursue an expanded go-to-market strategy without balance sheet constraints—even as large client prepayments begin to ease over FY26. Our blended spot valuation falls modestly.

What's changed?
Spot valuation: Our blended spot valuation falls -3% to NZ$1.12, due to the modest dilution from the increased capital raise.
Raising upsized and cash impact
The non-underwritten SPP was upsized from NZ$2.0m to NZ$9.0m after being oversubscribed by eligible retail shareholders. Added to IKE's 1Q26 pro forma NZ$8.8m net cash position and July's NZ$19.6m placement, post-SPP cash rises to an estimated ~NZ$36.0m after offer costs. For reference, IKE has indicated that R&D spend on the two new products over the next 12–24 months is estimated at NZ$11.0m. All considered, the additional funds raised provide a solid buffer, even as total deferred revenue of NZ$20.0m (as of 31 March 2025) is expected to trend lower, with fewer large Poleforeman prepayments expected.

Execution flexibility
The enlarged cash position supports both existing initiatives and new product development, while preserving capacity for sustained go-to-market investment. In the 1Q26 release, management reiterated that cash flow breakeven on a run-rate basis is expected in 2H26, providing further comfort that the additional capital will support growth rather than offset operating losses. The combination of strong visibility on subscription revenue growth and a materially strengthened balance sheet reduces execution risk.

Valuation impact
While the additional NZ$7m raised via the SPP is modestly dilutive to our spot valuation—with approximately 8m new shares issued at NZ$0.88 per share—we view the impact as outweighed by: (1) the fairness of enabling further participation by existing retail shareholders; (2) improved stock liquidity; (3) capital to de-risk the go-to-market strategy for the new products; and (4) longer-term M&A optionality. Fully funded, IKE can advance with confidence in a market benefiting from multi-decade grid resilience investment, reinforcing our positive view.

[Left Field]

.... As I was overweight in IKE I took some nice profits out at $1.03 on Monday and I won't be participating in the cap raise because I suspect in the next few months the SP could drift lower as it's over 12 months before their new cap raise software will be generating meaningful revenue increases....

Mmmmm SP slipping down to CR levels and not much interest in the buy side. GLH's.

Next update not expected till ASM around 30 September.

[Greekwatchdog]

ASM Presentation
https://api.nzx.com/public/announcement/459735/attachment/453285/459735-453285.pdf

[Left Field]

Bullish update 1H FY26

https://www.nzx.com/announcements/461439

 • Exit run rate (ERR) of platform subscription revenue ~NZ$19.4m annualized (+47% vs pcp).
 • Strong growth of recognized platform subscription revenue to ~NZ$8.8m (+35% vs pcp).
 • Total revenue of ~NZ$12.8m (+5% vs pcp), noting the lower margin services revenue component is down vs pcp because of volatility in the fibre communications market, which is expected to rebound.
 • Reiteration of FY26 guidance for ~35% or greater growth in platform subscription revenue and EBITDA breakeven on a run-rate basis within 2H26.
 • Gross margin of ~NZ$9.6m (+18% vs pcp).
 • Gross margin percentage increased to ~75% (up from pcp of 67%).
 • Cash operating expenses are materially the same as pcp, while executing the above growth.
 • Launch of AI companion capability within the core IKE Office Pro product, called PolePilot , game-changing AI-driven automation for electric utility distribution network analysis. This delivers material productivity gains for customers using IKE's core platform, also driving increased ARPU for IKE.
 • Total cash of NZ$34m as at 30 September 2025, with no debt, putting IKE in a strong financial position and with ample liquidity to execute the product roadmap and market development.
 • In the period, IKE successfully completed a significantly oversubscribed A$24 million capital raise (approximately NZ$26 million), demonstrating strong institutional and retail investor support.
 • In September, IKE was elevated to the ASX All Ordinaries Index, which tracks the 500 largest companies listed on ASX by market capitalization.

[winner (n)]

Q2 revenue same as Q2 last year ..no growth in other words

I'm still waiting for the raves to burst into reality ..one day

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