Kneat.com (KSI) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of CAD 15.4 million, up 32% year-over-year, with gross margin at 75%.

• ARR reached CAD 64.8 million, up 43% year-over-year, with SaaS revenue growing 31% to CAD 14.1 million.

• Net loss for Q2 narrowed to CAD 0.4 million from CAD 3.1 million last year; first half 2025 net income was CAD 1.8 million versus a CAD 6.4 million loss in 2024.

• Record new customer wins, including strategic accounts in generic pharmaceuticals, clinical diagnostics, and medical devices, with robust expansion from existing customers.

• Released Kneat Gx version 9.5, enhancing data management and risk-based validation capabilities.

Financial highlights

• Q2 2025 revenue reached CAD 15.4 million, up 32% from Q2 2024; SaaS license revenue was CAD 14.1 million, up 31%.

• Gross profit for Q2 was CAD 11.6 million, up 34% year-over-year; gross margin improved to 75%.

• First half 2025 revenue was CAD 30.2 million, with SaaS license revenue at CAD 28 million, up 34% and 36% respectively.

• Q2 EBITDA was CAD 3.8 million (vs. CAD 0.5 million YoY); Adjusted EBITDA was CAD 0.4 million (vs. CAD 1.6 million YoY).

• Cash position at June 30, 2025, was CAD 66.8 million, up from CAD 58.9 million at year-end 2024.

Outlook and guidance

• Expectation to reach break-even or positive cash flow in 2026, with gross margins to remain around 75%.

• Anticipate stronger ARR build in the second half of the fiscal year, with many large deals expected to close in Q3 and Q4.

• H1 cash flow typically stronger due to ARR bookings, with higher cash inflow expected in H1 of the following year.

• Management highlights trajectory toward profitability and continued platform development.

• Focus on scaling value delivery to the life sciences industry and disciplined financial stewardship.