Kneat Announces Record Revenue for Third Quarter 2025

Executive Summary

• Kneat reported Q3 2025 revenue of C$16.1 M, up 26% YoY, and SaaS revenue of C$15.2 M, up 33% YoY.
• Net loss narrowed to C$0.5 M from a net profit of C$1.2 M in Q3 2024; EBITDA fell to C$3.8 M but remains strong.
• Annual Recurring Revenue (ARR) reached C$68.6 M, a 37% increase YoY, positioning the company for breakeven in 2026.

Key Details

• Revenue & Growth
• Total Q3 2025 revenue: C$16.1 M (+26% YoY).
• SaaS revenue: C$15.2 M (+33% YoY, +8% QoQ).
• Gross profit: C$12.2 M (+25% YoY).

• Gross margin: 76% (down 1 pt from Q3 2024).

• Profitability

• Net loss Q3 2025: C$0.5 M vs. net income C$1.2 M in Q3 2024.
• EBITDA Q3 2025: C$3.8 M (down from C$4.3 M YoY).

• Adjusted EBITDA Q3 2025: C$2.5 M (down from C$2.9 M YoY).

• Annual Recurring Revenue

• ARR at Sep‑30 2025: C$68.6 M, up 37% YoY (from C$49.9 M).

• Year‑to‑Date (YTD) Highlights (nine months)

• Total revenue YTD: C$46.3 M (+31% YoY).
• SaaS revenue YTD: C$43.2 M (+35% YoY).
• Gross profit YTD: C$34.8 M (+32% YoY).
• Net income YTD: C$1.3 M (vs. net loss of C$5.3 M in 2024).

• EBITDA YTD: C$13.5 M (up from C$4.3 M).

• Recent Business Wins

• Signed three‑year Master Services Agreements with a global medical‑technology company, a global equipment manufacturer, and a leading multinational MedTech component maker (all announced Aug–Sep 2025).

• Awarded top positions in three G2 Pharma & Biotech Fall 2025 Grid Report categories; overall G2 Satisfaction Score 98/100.

• Product & AI Strategy

• Ongoing AI enhancements aimed at faster content creation, review, and data‑driven decision making.

• Conference Call

• Management (CEO Eddie Ryan & CFO Dave O’Reilly) to discuss results on Thursday, Nov 13 2025 at 9:00 a.m. ET via webcast.

Notable Quotes

• “This past quarter yielded more evidence of the durability of Kneat’s competitive advantage… we are upbeat about a solid finish to the year and our foundation for breakeven in 2026.” – Eddie Ryan, CEO
• “New signings and existing customer expansions continue at strength. As we build upon our feature sets that will bring Kneat into new areas, the company’s financial future is exciting.” – Dave O’Reilly, CFO