Kinaxis Inc. Reports Third Quarter 2025 Results

Company increases SaaS and Adjusted EBITDA1 guidance after record Q3, ARR2 growth accelerates Q3 SaaS revenue grows 17% (constant currency1 15%), ARR2 grows 17% (constant currency1 17%) Adjusted EBITDA1 hits record level, and Adjusted EBITDA margin1 remains strong at 25% Initial Maestro Agents launched to enhance value for customers, new revenue stream for Kinaxis Company Website: https://www.kinaxis.com/en OTTAWA, Ontario -- (Business Wire) Kinaxis® (TSX:KXS), a global leader in end-to-end supply chain orchestration, reported results for its third quarter ended September 30, 2025. All amounts are in U.S. dollars. All figures are prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise indicated. “Our momentum continues as record new business for a third quarter drove accelerated ARR growth and allows us to confidently target even stronger results for fiscal 2025. Our AI-powered orchestration message is resonating well with exciting new global brands, the installed base, and business partners looking to work with a leader in the supply chain space” said Bob Courteau, interim chief executive officer at Kinaxis. “We just launched our initial Maestro Agents, which creates the opportunity for a new revenue stream for Kinaxis and allows for faster and better outcomes for our customers. One early adopter of the agents, a top-10 global pharmaceutical company, boosted planner productivity as much as tenfold in its work to identify inventory risks. We will be rolling out additional capabilities in coming months, reflecting a strong AI product pipeline.” Q3 2025 Highlights $ USD thousands, except as otherwise indicated Q3 2025 Q3 2024 Change Total Revenue 134,592 121,528 11% (constant currency1) 132,296 9% SaaS 91,955 78,621 17% (constant currency1) 90,509 15% Subscription term licenses 79 2,250 (96)% Professional services 37,022 35,471 4% Maintenance and support 5,536 5,186 7% Gross profit 85,949 76,365 13% Margin 64% 63% Profit 16,846 6,751 150% Per diluted share $0.58 $0.23 Adjusted EBITDA1 33,922 30,013 13% Margin 25% 25%   Cash from operating activities 33,645 29,945 12%   (1) “Adjusted EBITDA” and constant currency metrics are non-IFRS measures that are not a recognized, defined or standardized measure under IFRS. These measures as well as any other non-IFRS financial measures reported by Kinaxis are defined in the “Non-IFRS Measures” section of this news release. Key Performance Indicators The company’s Annual Recurring Revenue2 (ARR), which includes subscription amounts related to both SaaS and on-premise contracts, rose to $407 million at the end of the quarter, or 17% growth as-reported and 17% in constant currency1. $USD millions Q3 2025 Q3 2024 Change Annual recurring revenue2 407 347 17% (2) Annual Recurring Revenue (ARR) is the total annualized value of recurring subscription amounts (ultimately recognized as SaaS, Subscription term licenses and Maintenance and support revenue) of all subscription contracts at a point in time. Annualized subscription amounts are determined solely by reference to the underlying contracts, normalizing for the varying revenue recognition treatments under IFRS 15 for cloud-based versus on-premise subscription amounts. It excludes one-time fees, such as for non-recurring professional services, and assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal, unless such renewal is known to be unlikely. We believe that this measure provides a more current indication of our performance in the growth of our subscription business than other metrics. The nature of the company’s long-term contracts provides visibility into future, contracted revenue. The following table presents revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at September 30, 2025.   $USD millions   2025   2026   2027 and later   Total SaaS 92.3 314.5 403.2 810.0   Maintenance and support 5.3 14.6 15.3 35.2   Subscription term licenses 0.8 0.1 — 0.9   Total 98.4 329.2 418.5 846.1   Financial Guidance Kinaxis is updating its fiscal 2025 financial guidance, as follows.   FY 2025 Guidance   Total revenue $535-550 million Constant currency1 $535-550 million   SaaS 15-17% growth Constant currency1 14-16% growth   Subscription term license $15-16 million   Adjusted EBITDA1 margin 24-26%     “Q3 was an outstanding quarter for Kinaxis. Ongoing strength in winning new business positions us well to exit 2025 with a higher ARR growth rate than we did last year, and to target our normalized 25% adjusted EBITDA target a full year ahead of plan. Our updated subscription term license revenue guidance reflects our success converting on-premise business to SaaS, so customers can take advantage of exciting new innovations that are only available in our cloud environments,” said Blaine Fitzgerald, chief financial officer at Kinaxis. “Overall, I am very pleased with the momentum in our business. We’ve been successful in simultaneously improving growth and profitability in recent quarters, which is testimony to demand in our space, and our company-wide efforts to achieve scalability and focus on our very best opportunities.” Guidance in this press release is provided to enhance visibility into Kinaxis’ expectations for financial targets for the periods indicated. Please refer to the section regarding forward-looking statements that forms an integral part of this release. This press release along with the financial statements and MD&A for the quarter ended September 30, 2025 are available on Kinaxis’ website and on SEDAR+ at www.sedarplus.ca. Conference Call Kinaxis will host a conference call tomorrow, November 6, 2025, to discuss these results. Bob Courteau, interim chief executive officer and chair, and Blaine Fitzgerald, chief financial officer, will host the call starting at 8:30 a.m. Eastern Time. A question and answer session will follow management's presentation. Investors and participants must register for the call in advance. See registration link below. Please call the conference telephone number fifteen minutes prior to the start time. DATE:   Thursday, November 6, 2025 TIME:   8:30 a.m. Eastern Time CALL REGISTRATION:   https://registrations.events/direct/Q4I91416498 WEBCAST   https://events.q4inc.com/attendee/875765587 (available for three months) About Kinaxis Inc. Kinaxis is a global leader in modern supply chain orchestration, powering complex global supply chains and supporting the people who manage them. Our powerful, AI-infused supply chain orchestration platform, Maestro™, combines proprietary technologies and techniques that provide full transparency and agility across the entire supply chain — from multi-year strategic planning to last-mile delivery. We are trusted by renowned global brands to provide the agility and predictability needed to navigate today’s volatility and disruption. For more news and information, please visit kinaxis.com or follow us on LinkedIn. Non-IFRS Measures This press release makes reference to Adjusted Profit and Adjusted EBITDA, which are non-IFRS financial measures, as well as Adjusted EBITDA margin which expresses Adjusted EBITDA as a percentage of revenue. Adjusted Profit, Adjusted EBITDA and Adjusted EBITDA margin are not recognized, defined or standardized measures under IFRS. We use these measures to provide investors with supplemental information on our operating performance and to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Providing these non-IFRS measures provides useful information because they portray the financial results of the Company before certain expenses that do not impact the ongoing operating decisions taken by management. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements, and to determine components of employee compensation. Adjusted Profit represents profit adjusted to exclude the changes in the fair value of contingent consideration, our equity compensation plans, special charges, and non-recurring items. Adjusted EBITDA represents profit adjusted to exclude the change in the fair value of contingent consideration, our equity compensation plans, special charges, non-recurring items, income tax expense, depreciation and amortization, foreign exchange loss (gain) and net finance (income) expense. Adjusted EBITDA margin expresses Adjusted EBITDA as a percentage of revenue. Our definitions of Adjusted Profit, Adjusted EBITDA and Adjusted EBITDA margin will likely differ from those used by other companies (including our peers) and therefore comparability may be limited. Non-IFRS measures should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures. Kinaxis has reconciled Adjusted Profit and Adjusted EBITDA to the most comparable IFRS financial measure as follows:     Three months ended September 30,   Nine months ended September 30,     2025     2024   2025     2024   (In thousands of USD)   (In thousands of USD) Profit   16,846       6,751     51,198       16,372   Share-based compensation   10,031       12,929     29,752       29,353   Special charges(1)   —       3,174     —       3,174   Non-recurring item(2)   —       22     —       7,320   Adjusted profit   26,877       22,876     80,950       56,219   Income tax expense   5,361       3,337     14,858       8,028   Depreciation and amortization   4,856       6,209     15,261       18,882   Foreign exchange gain (loss)   (192 )     411     (2,205 )     245   Net finance income   (2,980 )     (2,820 )   (8,069 )     (8,751 )     7,045       7,137     19,845       18,404   Adjusted EBITDA   33,922       30,013     100,795       74,623   Adjusted EBITDA as a percentage of revenue   25 %     25 %   25 %     21 %   Note: (1) Costs associated with business transformation activities. (2) Costs associated with the restructuring initiative We also present certain IFRS measures, SaaS revenue and total revenue, and non-IFRS supplementary measures, ARR, under constant currency. We believe that presenting these measures under constant currency provides a useful framework for assessing estimates of how our business would have performed excluding the effect of foreign currency rate fluctuations. The presentation of financial results under constant currency is considered to be a non-IFRS measure and does not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies (including our peers). For SaaS revenue and total revenue under constant currency, results for entities reporting in currencies other than U.S. Dollars (“USD”) are converted into USD at the average exchange rates in effect during the comparison period, rather than the actual average exchange rates in effect during the current period. For constant currency ARR, we convert all non-USD-denominated recurring subscription amounts at the exchange rates in effect at the end of the comparison period, rather than the exchange rates in effect at the end of the current period. The outlook for constant currency SaaS revenue growth rate is derived by applying the average exchange rates in effect during the comparison period rather than the exchange rates expected during the guidance period. We believe the presentation of the above results and metrics, and applicable related growth rates, adjusted for constant currency facilitates the corresponding year-over-year comparisons. Forward-Looking Statements Certain statements in this release constitute forward-looking statements, future-oriented financial information and financial outlook within the meaning of applicable securities laws. Forward-looking statements, future-oriented financial information and financial outlook include statements as to our expectations for: growth of annual total revenue, annual SaaS and Subscription term licenses revenue, and our expectations for Adjusted EBITDA margin achievement, in each case looking forward for our fiscal year ending December 31, 2025; SaaS growth and increased profitability in years beyond 2025; and contracted revenue in future periods, including 2025, 2026 and 2027 and later. This release also includes forward-looking statements as to Kinaxis’ growth opportunities and the potential benefits of, and markets and demand for, Kinaxis’ products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis’ products and services compared to competitive offerings in the industry. In particular, our guidance for 2025 annual total revenue, annual SaaS and Subscription term license revenue and annual Adjusted EBITDA margin, as well as our comments on our expectations for SaaS growth and increased profitability in years beyond 2025, are subject to certain assumptions and associated risks including: our ability to win business from new customers and expand business from existing customers; the timing of new customer wins and expansion decisions by our existing customers; maintaining our customer retention levels, and specifically, that customers will renew contractual commitments on a periodic basis as those commitments come up for renewal, at rates consistent with our historic experience; anticipated trends, standards and challenges in our business and the markets we operate in; fluctuations in the value of foreign currencies relative to the U.S. Dollar; and with respect to Adjusted EBITDA and profitability, our ability to contain expense levels while expanding our business. Our guidance and commentary for achievement of contracted revenue in future periods, including in 2025, 2026 and 2027 and later, is based on assumptions and associated risks including: our ability to satisfy material unperformed obligations under our long-term contracts; and the continued financial capacity and creditworthiness of our customers under long-term contracts. These and other assumptions, risks and uncertainties may cause Kinaxis’ actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by forward-looking statements, future-oriented financial information or financial outlook. Material risks and uncertainties relating to our business are described under the headings “Forward-Looking Statements” and “Risks and Uncertainties” in our annual MD&A dated February 26, 2025, and under the heading “Risk Factors” in our Annual Information Form dated February 26, 2025, which are available at www.sedarplus.ca. Readers are cautioned that the assumptions used in the preparation of forward-looking statements, future-oriented financial information and financial outlook, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on such information. Our actual results, performance and achievements could differ materially from those expressed in, or implied by, such forward-looking statements, future-oriented financial information or financial outlook. Forward-looking statements, future-oriented financial information and financial outlook are provided to help readers understand management’s expectations as at the date of this release and may not be suitable for other purposes. Readers are cautioned not to place undue reliance on forward-looking statements. Kinaxis assumes no obligation to update or revise any forward-looking statements, future-oriented financial information or financial outlook whether as a result of new information, future events or otherwise, except as expressly required by law. SOURCE: Kinaxis Inc. Kinaxis Inc.   Condensed Consolidated Interim Statements of Financial Position (Expressed in thousands of USD)     September 30, 2025 December 31, 2024       Assets     Current assets:     Cash and cash equivalents $ 126,476 $ 172,192   Short-term investments   207,891   126,307   Trade and other receivables   146,417   156,394   Prepaid expenses   18,825   18,244       499,609   473,137   Non-current assets:     Unbilled receivables   1,043   1,448   Other receivables   1,058   867   Prepaid expenses   2,297   2,072   Deferred tax assets   16,343   11,016   Contract acquisition costs   34,792   32,005   Property and equipment   30,052   32,486   Right-of-use assets   44,715   46,705   Intangible assets   11,664   12,865   Goodwill   76,625   72,735       218,589   212,199           $ 718,198 $ 685,336         Liabilities and Shareholders’ Equity     Current liabilities:     Trade payables and accrued liabilities $ 65,849 $ 94,913   Deferred revenue   151,246   140,008   Lease obligations   5,916   5,587       223,011   240,508   Non-current liabilities:     Lease obligations   43,078   43,348   Deferred tax liabilities   5,073   5,969       48,151   49,317   Shareholders’ equity:     Share capital   338,311   285,422   Contributed surplus   —   12,078   Accumulated other comprehensive income (loss)   524   (3,847 ) Retained earnings   108,201   101,858       447,036   395,511           $ 718,198 $ 685,336     Kinaxis Inc.   Condensed Consolidated Interim Statements of Comprehensive Income (Expressed in thousands of USD, except share and per share data)   Three months ended September 30, Nine months ended September 30,   2025 2024 2025 2024 Revenue $ 134,592   $ 121,528   $ 403,795 $ 359,176             Cost of revenue   48,643     45,163     143,776   139,695             Gross profit   85,949     76,365     260,019   219,481             Operating expenses:         Selling and marketing   26,440     22,639     86,867   74,907   Research and development   23,829     21,137     68,393   66,343   General and administrative   16,658     24,977     49,065   62,489       66,927     68,753     204,325   203,739                 19,022     7,612     55,694   15,742             Other income         Foreign exchange gain (loss)   192     (411 )   2,205   (245 ) Net finance and other income   2,993     2,887     8,157   8,903       3,185     2,476     10,362   8,658             Profit before income taxes   22,207     10,088     66,056   24,400             Income tax expense   5,361     3,337     14,858   8,028             Profit   16,846     6,751     51,198   16,372             Other comprehensive income (loss):         Items that are or may be reclassified subsequently to profit         Foreign currency translation differences - foreign operations   (499 )   3,053     3,511   1,097   Change in valuation of cash flow hedges   (1,314 )   463     860   (255 )     (1,813 )   3,516     4,371   842             Total comprehensive income $ 15,033   $ 10,267   $ 55,569 $ 17,214             Basic earnings per share $ 0.60   $ 0.24   $ 1.82 $ 0.58   Weighted average number of basic Common Shares   28,229,298     28,226,878     28,198,655   28,286,208   Diluted earnings per share $ 0.58   $ 0.23   $ 1.77 $ 0.57   Weighted average number of diluted Common Shares   28,842,164     28,812,999     28,909,065   28,946,558     Kinaxis Inc.   Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity (Expressed in thousands of USD)     Accumulated other comprehensive income (loss)     Share capital Contributed surplus Cash flow hedges Currency translation adjustments Total Retained earnings Total equity                 Balance, December 31, 2023 $ 307,327   $ 44,339   $ 441   $ 919   $ 1,360   $ 101,802   $ 454,828                   Profit   —     —     —     —     —     56     56   Other comprehensive loss   —     —     (1,644 )   (3,563 )   (5,207 )   —     (5,207 ) Total comprehensive income (loss)   —     —     (1,644 )   (3,563 )   (5,207 )   56     (5,151 )                 Share options exercised   28,065     (6,512 )   —     —     —     —     21,553   Restricted share units vested   14,992     (14,992 )   —     —     —     —     —   Deferred share units vested   1,396     (1,396 )   —     —     —     —     —   Performance share units vested   5,533     (5,533 )   —     —     —     —     —   Share-based payments   —     40,723     —     —     —     —     40,723   Shares repurchased   (53,727 )   (44,551 )   —     —     —     —     (98,278 ) Obligations related to share repurchases   (18,164 )   —     —     —     —     —     (18,164 ) Total shareholder transactions   (21,905 )   (32,261 )   —     —     —     —     (54,166 )                 Balance, December 31, 2024 $ 285,422   $ 12,078   $ (1,203 ) $ (2,644 ) $ (3,847 ) $ 101,858   $ 395,511                   Profit   —     —     —     —     —     51,198     51,198   Other comprehensive income   —     —     860     3,511     4,371     —     4,371   Total comprehensive income   —     —     860     3,511     4,371     51,198     55,569                   Share options exercised   25,766     (6,156 )   —     —     —     —     19,610   Restricted share units vested   21,547     (21,547 )   —     —     —     —     —   Deferred share units vested   810     (810 )   —     —     —     —     —   Performance share units vested   3,553     (3,553 )   —     —     —     —     —   Share-based payments   —     30,700     —     —     —     —     30,700   Shares repurchased   (5,455 )   (10,712 )   —     —     —     (44,855 )   (61,022 ) Change in obligation for share repurchases   6,668     —     —     —     —     —     6,668   Total shareholder transactions   52,889     (12,078 )   —     —     —     (44,855 )   (4,044 )                 Balance, September 30, 2025 $ 338,311   $ —   $ (343 ) $ 867   $ 524   $ 108,201   $ 447,036     Kinaxis Inc.   Condensed Consolidated Interim Statements of Cash Flows (Expressed in thousands of USD)   Three months ended September 30, Nine months ended September 30,   2025 2024 2025 2024           Cash flows from operating activities                   Profit $ 16,846   $ 6,751   $ 51,198   $ 16,372   Items not affecting cash:         Depreciation of property and equipment and right-of-use assets   4,002     4,870     12,770     14,888   Amortization of intangible assets   854     1,339     2,491     3,994   Share-based payments   10,031     12,929     29,752     29,353   Net finance income   (2,980 )   (2,820 )   (8,069 )   (8,751 ) Income tax expense   5,361     3,337     14,858     8,028   Investment tax credits recoverable   —     (900 )   —     (2,909 ) Change in operating assets and liabilities   1,822     3,511     8,999     9,714   Interest received   3,635     2,199     9,606     10,387   Interest paid   (520 )   (436 )   (1,450 )   (1,277 ) Income taxes paid   (5,406 )   (835 )   (32,297 )   (4,703 )     33,645     29,945     87,858     75,096   Cash flows from (used in) investing activities                   Purchase of property and equipment   (747 )   (163 )   (5,015 )   (2,247 ) Purchase of short-term investments   (164,592 )   (21,891 )   (454,481 )   (238,760 ) Redemption of short-term investments   162,139     46,722     372,748     245,117       (3,200 )   24,668     (86,748 )   4,110   Cash flows used in financing activities                   Payment of lease obligations   (1,424 )   (1,834 )   (4,367 )   (5,360 ) Repurchase of shares   (25,368 )   (20,875 )   (61,022 )   (78,282 ) Proceeds from exercise of stock options   794     2,276     19,610     13,584       (25,998 )   (20,433 )   (45,779 )   (70,058 )           Increase (decrease) in cash and cash equivalents   4,447     34,180     (44,669 )   9,148             Cash and cash equivalents, beginning of period   123,754     147,155     172,192     174,844             Effects of exchange rates on cash and cash equivalents   (1,725 )   1,893     (1,047 )   (764 ) Cash and cash equivalents, end of period $ 126,476   $ 183,228   $ 126,476   $ 183,228     View source version on businesswire.com: https://www.businesswire.com/news/home/20251105638834/en/ Contacts: Investor Relations Rick Wadsworth | Kinaxis [email protected] 613-907-7613 Media Relations Matt Tatham | Kinaxis [email protected] 917-446-7227 Source: Kinaxis Inc.