Kinaxis (KXS) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 results with total revenue up 25% year-over-year to $165.6 million, driven by 21% SaaS revenue growth and 20% ARR growth, both accelerating from prior year rates.

• Record quarterly profit of $29.4 million, up 85% year-over-year, with adjusted EBITDA margin reaching 32% from 25% a year ago.

• Nearly doubled total new business signed versus Q1 2025, with average deal size more than doubling and the largest initial customer contract ever secured.

• Strong momentum in AI-driven supply chain planning, with Maestro platform and agentic AI capabilities driving customer wins and expansion.

• Recognized as a leader in Gartner Magic Quadrant for both discrete and process industries for the 12th consecutive time.

Financial highlights

• Total revenue was $165.6 million, up 25% year-over-year, driven by SaaS and subscription term license growth.

• SaaS revenue reached $102.9 million, up 21%; subscription term license revenue was $19.1 million, up 111%.

• Professional services revenue grew 16% to $38.7 million; maintenance and support revenue declined 11%.

• Gross profit increased 32% to $114 million, with gross margin rising to 69% from 65%.

• Cash flow from operations was $59.1 million, up 87% year-over-year.

Outlook and guidance

• Fiscal 2026 revenue guidance maintained at $620–635 million, with SaaS revenue growth expected at 17–19% and adjusted EBITDA margin guidance at 25–26%.

• Confident in achieving or beating 2026 targets, with strong ARR, SaaS growth, and RPO approaching $1 billion.

• Maintaining all aspects of annual guidance despite strong Q1 results, citing ongoing volatility in political, economic, and FX environments.