Kneat Achieves Record Revenue for Fourth Quarter and Full Year 2025

Executive Summary

• Kneat reported record Q4 2025 revenue of C$17.0 M (+24% YoY) and full‑year 2025 revenue of C$63.3 M (+29% YoY).
• Adjusted EBITDA turned positive for the second consecutive year, reaching C$9.5 M for 2025 (up from C$7.0 M in 2024).
• Annual Recurring Revenue hit C$74.1 M (+24% YoY) and Net Revenue Retention was 115%, indicating strong customer expansion.

Key Details

• Q4 2025 Highlights
• Total revenue: C$17.0 M vs. C$13.7 M in Q4‑2024.
• SaaS revenue: C$16.2 M (+29% YoY).
• Gross profit: C$13.2 M (+27%).
• Gross margin: 78% (up from 75%).
• Net loss: C$3.6 M (worse than C$2.5 M Q4‑2024).

• EBITDA: C$1.3 M; Adjusted EBITDA: C$4.2 M.

• Full‑Year 2025 Highlights

• Total revenue: C$63.3 M (+29%).
• SaaS revenue: C$59.4 M (+33%).
• Gross profit: C$47.9 M (+30%); gross margin 76%.
• Net loss narrowed to C$2.3 M (vs. C$7.7 M in 2024).
• EBITDA: C$14.7 M; Adjusted EBITDA: C$9.5 M.
• ARR: C$74.1 M (+24% YoY).

• Net Revenue Retention (NRR): 115%.

• Operational Milestones

• Added nine major strategic customers representing >300,000 employees across life‑sciences sectors.
• Launched partnership with Capgemini to accelerate digital validation globally.

• Introduced AI‑driven features (content review assistant, natural‑language analysis, real‑time translation).

• Leadership Changes

• Donal O’Sullivan appointed Chief Product Officer.

• Co‑founder Kevin Fitzgerald transitioned to Chief Innovation Officer.

• Outlook & Guidance for 2026

• Expect ARR growth to outpace 2025 incremental increase despite typical second‑half seasonality.
• Targeting cash‑flow breakeven for the full year 2026.

• New validation engagements announced in Jan–Feb 2026 with major biopharma and pharmaceutical packaging firms.

• Financial Position (Year End Dec 31, 2025)

• Cash: C$48.7 M (down from C$58.9 M).

• Total assets: C$121.8 M; total liabilities: C$56.7 M; shareholders’ equity: C$65.0 M.

• Conference Call

• Management to discuss results on Feb 26, 2026 at 9:00 a.m. ET (webcast).

Notable Quotes

• “We achieved positive Adjusted EBITDA for the second consecutive year and are on track to reach cash‑flow breakeven in 2026,” – Eddie Ryan, CEO.
• “Our strong top‑line momentum, high NRR and strategic partnerships position us well for durable growth,” – Dave O’Reilly, CFO.