Kontrol Technologies (KNRLF) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $1.5 million, down from $3.8 million year-over-year due to the sale of emission assets and market uncertainty from tariff policy.

• Gross margin declined to 54% from 62% compared to the same quarter last year.

• Adjusted EBITDA was negative $228,521, a significant decrease from $966,489 in Q1 2024.

• Net loss for Q1 2025 was $1.1 million, compared to net income of $533,487 in Q1 2024, mainly due to revaluation of marketable securities and share-based compensation.

• Operating expenses were reduced to align with the streamlined business and asset sales.

Financial highlights

• Revenue for Q1 2025: $1,493,383; Q1 2024: $3,786,234.

• Gross profit for Q1 2025: $807,804; Q1 2024: $2,332,075.

• Net loss for Q1 2025: $1,145,833; Q1 2024 net income: $533,487.

• Basic and diluted EPS for Q1 2025: $(0.02); Q1 2024: $0.01.

• Aggregate cash and marketable securities as of March 31, 2025: $11.2 million.

Outlook and guidance

• Ongoing market uncertainty from tariff policy is expected to persist until the end of Q2 2025, impacting project revenues.

• Strategic plan for 2025 focuses on adding new customers through organic growth and acquisitions.