• Exit run rate of annual platform subscription revenue grew 48% year-over-year
• Total recognized revenue increased 19% year-over-year
• Gross margin percentage improved to 69% from 60% in the prior year

IKE Group Ltd released a performance update for the fourth quarter and 12-month period ending March 31, 2025. The company reported continued growth, with the exit run rate of annual platform subscription revenue increasing 48% year-over-year to NZ$17.6 million. Total recognized revenue for the period grew 19% year-over-year to NZ$25.2 million, comprising NZ$14.4 million in subscription revenue (+34% year-over-year), NZ$7.6 million in transaction revenue (+3% year-over-year), and NZ$3.2 million in hardware and other services revenue (+5% year-over-year). Gross margin increased 37% year-over-year to NZ$17.4 million, with the gross margin percentage improving to 69% from 60% in the prior year, driven by the continued shift towards higher-margin subscription software products. The company's balance sheet remained strong, with total cash and net receivables growing by NZ$1.8 million in the quarter to NZ$15.4 million. IKE also received a non-binding acquisition proposal at NZ$1 per share, representing a 62% premium to the share price at the time, but the board determined that the proposal was unlikely to secure sufficient shareholder support and ceased discussions.

IKE expects its annual recurring revenue (ARR) to continue to increase very strongly at growth levels of 35% or greater in the 2026 financial year, based on contracts in place and broader momentum in the company.

IKE's CEO stated that macro-market tailwinds in North America remain highly supportive of the company's business and are expected to drive growth over the coming decades, and the North American-based team continues to capitalize on significant sales opportunities.