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

Core Viewpoint - Kraken Robotics Inc. reported a 16% increase in consolidated revenue for Q2 2025, driven by growth in subsea battery and service businesses, despite a decline in sonar revenue [4][3]. Financial Performance - Consolidated revenue for Q2 2025 was $26.4 million, up from $22.8 million in the prior year [4]. - Product revenue decreased by 14% to $16.5 million, while service revenue surged by 180% to $9.8 million [4]. - Gross profit increased by 27% to $14.8 million, resulting in a gross profit margin of 56%, up from 51% in the prior year [4][11]. - Adjusted EBITDA for the quarter was $4.7 million, with an adjusted EBITDA margin of 18%, down from 24% in the comparable quarter [4][8]. Assets and Financing - Total assets reached $184.3 million as of June 30, 2025, compared to $98.5 million a year earlier [4]. - Cash at the end of the quarter was $32.9 million, an increase from $20.4 million in the prior year [4]. - The company completed a bought deal equity financing for gross proceeds of $115 million after the quarter ended [4][9]. Market and Growth Prospects - The naval defense and maritime security sectors are key growth drivers, with increasing adoption of uncrewed platforms [3]. - The company anticipates strong defense Request for Proposal (RFP) activity from 2025 to 2027, enhancing its market prospects [5]. - The acquisition of 3D at Depth Inc. is expected to bolster the company's high-margin services business, particularly in the offshore energy market [9]. Financial Guidance - The company maintains its 2025 financial guidance, expecting revenue between $120 million and $135 million and Adjusted EBITDA between $26 million and $34 million, representing 40% revenue growth and 45% Adjusted EBITDA growth [4].