Kneat Announces Record Revenue for Second Quarter 2025

Executive Summary

• Kneat.com, inc. reported financial results for the second quarter and first half of 2025, showing significant revenue growth and a return to net profitability for the six-month period.
• Total revenue for Q2 2025 reached $15.4 million, a 32% year-over-year increase, driven by a 31% growth in SaaS revenue.
• The company reported a turnaround in profitability, moving from a net loss of $3.1 million in Q2 2024 to a net loss of only $0.4 million in Q2 2025, and achieving net income of $1.8 million for the first half of 2025.

Key Details

• Q2 2025 Financial Performance:
  • Total Revenue: $15.4 million (up 32% YoY from $11.7 million).
  • SaaS Revenue: $14.1 million (up 31% YoY from $10.8 million).
  • Gross Profit: $11.6 million (up 34% YoY from $8.7 million).
  • Gross Margin: 75% (compared to 74% in Q2 2024).
  • EBITDA: $3.8 million (compared to $0.5 million in Q2 2024).
  • Adjusted EBITDA: $0.4 million (compared to $1.6 million in Q2 2024).
  • Net Loss: $0.4 million (compared to a net loss of $3.1 million in Q2 2024).
• First Half 2025 Financial Performance:
  • Total Revenue: $30.2 million (up 34% YoY from $22.4 million).
  • SaaS Revenue: $28.0 million (up 36% YoY from $20.6 million).
  • Gross Profit: $22.6 million (up 36% YoY from $16.6 million).
  • Gross Margin: 75% (compared to 74% in H1 2024).
  • EBITDA: $9.7 million (compared to $0.0 million in H1 2024).
  • Adjusted EBITDA: $2.7 million (compared to $2.2 million in H1 2024).
  • Net Income: $1.8 million (compared to a net loss of $6.4 million in H1 2024).
• Key Metrics:
  • Annual Recurring Revenue (ARR): $64.8 million at June 30, 2025, representing a 43% year-over-year increase from $45.4 million.
• Balance Sheet Highlights (as of June 30, 2025):
  • Cash: $66.8 million.
  • Total Assets: $134.7 million.
  • Total Liabilities: $68.3 million.
  • Shareholders’ Equity: $66.4 million.
• Recent Business Highlights:
  • Signed a Services Agreement in April 2025 with a multinational generic pharmaceutical producer to digitize drawing management.
  • Signed a three-year Master Services Agreement in May 2025 with a leading clinical diagnostics manufacturer to digitize equipment validation.
  • Signed a multi-year Master Services Agreement in June 2025 with a global healthcare technology company to digitize Commissioning, Qualification, and Validation workflows.
  • Launched Kneat Gx 9.5 in July 2025, featuring advanced data management and risk-based validation capabilities.
• Management Changes:
  • Dave O’Reilly joined as Chief Financial Officer in July 2025, succeeding Hugh Kavanagh who retired.
  • Kevin Fitzgerald transitioned from Chief Product Officer to Chief Innovation Officer on June 9, 2025.
  • Donal O’Sullivan joined as Chief Product Officer on June 9, 2025.

Notable Quotes

• “We continue on our trajectory towards profitability. New customer wins in the past quarter reached new highs, proving Kneat Gx is the platform of choice. We welcomed new leadership in finance, product and engineering and continued the unrelenting development of our platform.” - Eddie Ryan, Chief Executive Officer
• “Kneat’s long history of solid execution is extended with the results reported today. I look forward to continuing the disciplined financial stewardship that precedes me in this role, and with it, Kneat’s continuous scaling of the value we deliver to the Life Sciences industry." - Dave O’Reilly, Chief Financial Officer