Kneat.com (KSI) Q4 2025 earnings summary

Executive summary

• Software revenue grew 33% year-over-year in 2025, with record total revenue of $63.3 million and a record number of new customers added, including major strategic wins across life sciences, technology, and specialty chemicals.

• Net revenue retention was 115% for 2025, reflecting continued expansion within the customer base.

• Net loss narrowed to $2.3 million from $7.7 million in 2024, with positive Adjusted EBITDA for the second consecutive year.

• The company is leveraging AI to enhance its platform, introducing features for regulated environments and expanding into adjacent manufacturing areas.

• Recognized as the #1 Pharma and Biotech Software by G2 and secured a Gold Stevie Award for Sales & Customer Service.

Financial highlights

• Annual Recurring Revenue (ARR) grew 24% year-over-year in Q4, reaching $74.1 million at year-end, impacted by FX headwinds and deferred expansions.

• Q4 2025 revenue rose 24% to $17.0 million; SaaS revenue up 29% to $16.2 million.

• Gross margins in Q4 benefited from year-end accrual releases, with normalized gross margins around 77–78%.

• Operating expenses for the full year increased 33%, with Q4 expenses down sequentially from Q3.

• Ended 2025 with CAD 48.7 million ($48.7 million) in cash on the balance sheet.

Outlook and guidance

• Targeting cash flow breakeven in 2026, contingent on meeting top-line growth expectations.

• Expecting incremental ARR in 2026 to exceed 2025, driven by delayed expansions and new customer growth.

• Adjusted EBITDA margins expected to remain consistent, with capitalized R&D relatively static year-over-year.

• Anticipates typical second-half seasonality but maintains a durable growth model.

• Gross margins anticipated to remain at or above 77% in 2026, depending on revenue mix.