Kneat.com (KSI) Q1 2025 earnings summary

Executive summary

• Annual recurring revenue grew 51% year-over-year in Q1 2025 to $63.5M, with total revenue up 37% to $14.7M and SaaS license revenue up 42% to $13.8M compared to Q1 2024.

• Gross profit increased 38% year-over-year to $10.9M, with gross margin steady at 74%.

• EBITDA improved to $5.9M from a loss of $0.5M in Q1 2024; Adjusted EBITDA was $2.3M, up from $0.6M.

• Net income for Q1 2025 was $2.1M, compared to a net loss of $3.3M in Q1 2024; EPS was $0.02 versus $(0.04).

• Leadership team expanded with a new Chief Product Officer and Chief Innovation Officer to drive product vision and growth.

Financial highlights

• Q1 2025 revenue was $14.7M, up from $10.8M in Q1 2024.

• SaaS license revenue reached $13.8M, a 42% increase year-over-year.

• Gross profit was $10.9M, up 38% from the prior year, with gross margin at 74%.

• Operating expenses were $12.3M, up 21% year-over-year, with sales and marketing at $5.1M and R&D at $4.7M.

• Cash position at quarter-end was $74.1M, up from $58.9M at December 2024, mainly due to timing of annual subscription collections and $20M raised from public equity financing.

Outlook and guidance

• Management remains confident in financial outlook, citing a growing, high-retention customer base and a strong balance sheet.

• Enterprise and strategic accounts, which drive most ARR, continue to invest despite broader economic uncertainties.

• Expansion into adjacent validation and documentation workflows is underway, broadening the platform's addressable market.

• Continued focus on expanding enterprise-wide adoption and enhancing the Kneat Gx platform.