ikeGPS Group Limited (ASX:IKE) Announces 4Q25 Performance Update
Financial Performance
ikeGPS Group Limited reported a 19% increase in total revenue to NZ$25.2m for the period ending 31 March 2025. The company achieved a gross margin of 69%, up from 60% in the prior comparable period. Total cash and net receivables increased by NZ$1.8m to NZ$15.4m, with NZ$10.3m in cash and NZ$5.1m in net receivables, maintaining a debt-free position.
Contracts and Revenue Growth
In the fourth quarter, ikeGPS closed approximately NZ$12m in contracts, including major multi-year subscriptions with top U.S. electric utilities. The exit run rate for annual platform subscription revenue rose by 48% year-on-year to NZ$17.6m. The number of subscription seat licenses grew by 103% year-on-year, reaching over 8,500. The company expects ARR growth to continue at over 35% in FY26.
Corporate Strategy
ikeGPS received an unsolicited, non-binding acquisition approach at NZ$1 per share (~NZ$165-170m EV). After assessing the offer, the Board concluded the valuation was insufficient to secure shareholder support and ceased discussions to focus on the company’s growth.
Executive Comments
CEO Glenn Milnes stated, “4Q25 was another strong operating quarter marked by significant subscription contracts closed with tier-1 North American customers, driving continued growth in ARR run rates. Looking ahead to FY26, we expect our ARR to continue to increase very strongly at growth levels of 35% or greater, positioning us well for the medium and long term.”
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ikeGPS Group. The Motley Fool Australia has recommended ikeGPS Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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