Kraken Robotics Reports Q2 2025 Financial Results and Reiterates Annual Financial Guidance

Executive Summary

• Kraken Robotics Inc. reported its unaudited financial results for the quarter ended June 30, 2025, showing a 16% increase in consolidated revenue to $26.4 million, driven by growth in subsea battery and service businesses and the acquisition of 3D at Depth Inc.
• The company reported a net loss of $0.7 million for Q2 2025, compared to a net income of $2.6 million in the prior year, with Adjusted EBITDA declining to $4.7 million from $5.4 million due to increased administrative expenses related to growth investments.
• Following the quarter-end, the company completed an oversubscribed bought-deal equity financing for gross proceeds of $115 million, while maintaining its full-year 2025 financial guidance of $120–$135 million in revenue and $26–$34 million in Adjusted EBITDA.

Key Details

• Consolidated Revenue: Increased 16% to $26.4 million (Q2 2025) vs. $22.8 million (Q2 2024).
• Product Revenue: Decreased 14% to $16.5 million (Q2 2025) vs. $19.2 million (Q2 2024).
  • SeaPower™ subsea battery business achieved its highest quarterly revenue to date.
  • Sonar revenue declined as the acquisition component of the Canadian Navy RMDS system integration project nears completion.
• Service Revenue: Increased 180% to $9.8 million (Q2 2025) vs. prior year.
  • Growth driven by organic expansion in sub-bottom imaging services and the acquisition of 3D at Depth (subsea LiDAR services).
• Gross Profit: Increased 27% to $14.8 million (Q2 2025) vs. $11.6 million (Q2 2024).
  • Gross profit margin improved to 56% (Q2 2025) vs. 51% (Q2 2024), attributed to a favorable revenue mix with higher-margin products and services.
• Adjusted EBITDA: $4.7 million (Q2 2025) vs. $5.4 million (Q2 2024).
  • Adjusted EBITDA margin decreased to 18% (Q2 2025) vs. 24% (Q2 2024).
  • Margin compression attributed to increased administrative expenses for business development and systems/processes.
• Balance Sheet & Cash Position:
  • Total Assets: $184.3 million (June 30, 2025) vs. $98.5 million (June 30, 2024).
  • Cash: $32.9 million (June 30, 2025) vs. $20.4 million (June 30, 2024).
  • Working Capital: $71.8 million (June 30, 2025) vs. $41.0 million (June 30, 2024).
• Capital Expenditures: $6.3 million in Q2 2025 vs. $0.7 million in Q2 2024.
  • Increase related to new battery facility in Canada and growth in internal marine assets.
• Net Income/Loss: Net loss of $0.7 million (Q2 2025) vs. Net income of $2.6 million (Q2 2024).
  • Basic and diluted loss per share: $0.00 (Q2 2025) vs. $0.01 earnings per share (Q2 2024).
• Post-Quarter Financing: Completed a bought-deal equity financing for gross proceeds of $115 million in early July 2025.
• 2025 Financial Guidance: Unchanged from Q1 guidance.
  • Expected Revenue: $120 million – $135 million.
  • Expected Adjusted EBITDA: $26 million – $34 million.
  • Midpoints represent 40% revenue growth and 45% Adjusted EBITDA growth.

Notable Quotes

• Greg Reid, President & CEO: "We continue to build momentum across our businesses... For our largest market, naval defense and maritime security, the key growth drivers are naval equipment modernizations and increasing adopting of uncrewed platforms."
• Greg Reid, President & CEO: "Our recent services-based acquisition, 3D at Depth, is performing well. This helps build out our US footprint and adds depth to our high margin services business focused on the offshore energy market."
• Greg Reid, President & CEO: "Finally, with the oversubscribed $115 million equity financing that closed in early July, we have added capability to invest in growth organically, and we continue to review acquisition opportunities that are both strategic and financially accretive."