ikeGPS Group Limited

For the first 9 months of the year, exit-run-rate ARR reached NZD 21.1 million, up 35% year over year, or 36% in constant currency. Year-to-date subscription revenue was $14.1 million, up 38%, and third-quarter subscription revenue was about $5.3 million, up 43% year over year. Total revenue was NZD 19.8 million year to date, up around 7%, and third-quarter revenue was up around 11% year over year. Gross margin improved to 79% from 68%. Management said it is on a path to EBITDA positive. Looking ahead, the company expects fourth-quarter momentum to remain solid, with early signs of continued booking strength, but did not give specific next-quarter or full-year revenue guidance beyond maintaining a 35% subscription growth run rate.

Glenn Milnes did not speak extensively in the prepared remarks, but the strategic message across the call was that ikeGPS is increasingly a subscription-led software business with improving economics. Management emphasized the platform strategy around PoleOS, faster AI adoption, and continued product expansion rather than relying on the transactional business. The tone was confident and upbeat, with repeated references to strong pipeline, continued penetration within accounts, and ongoing upside for PoleForeman.

Paul Cardosi highlighted a very strong third quarter and said subscription revenues are growing at a 35% pace, with gross margins improving and creating operating leverage. He said 9-month ARR was NZD 21.1 million, subscription revenue was $14.1 million year to date, third-quarter subscription revenue was about $5.3 million, and gross margin improved to 79% from 68%. He also said the services business was hit by U.S. funding delays, but restructuring and moving work offshore improved margins, and R&D spend will tick up as new hires for PoleOS come on board in January and February.

Analysts pressed management on the weaker transactional business, and Cardosi said funding delays are easing and some larger projects are starting to re-enter the pipeline, with possible timing in March or April and early signs in the first quarter. Questions also focused on margin volatility in services, which management attributed to one-time restructuring in Q2 and the first full quarter of offshore delivery in Q3, including a Mexican team. On growth drivers, Cardosi said net customer additions were driven by a flywheel around PoleForeman and a lift in IKE Office Pro from PolePilot and hardware trade-ins, and he said PolePilot has seen about 30 customer licenses with no pushback on price.