Kinaxis Inc. Reports Third Quarter 2025 Results

Core Insights - Kinaxis Inc. reported strong third-quarter results for 2025, with total revenue reaching $134.6 million, an 11% increase from $121.5 million in Q3 2024 [3][22] - The company experienced significant growth in its Annual Recurring Revenue (ARR), which rose to $407 million, reflecting a 17% increase year-over-year [4][5] - The launch of AI-powered Maestro Agents is expected to create new revenue streams and enhance customer productivity, with one early adopter reporting a tenfold increase in planner productivity [2][29] Financial Performance - Total revenue for Q3 2025 was $134,592 thousand, compared to $121,528 thousand in Q3 2024, marking an 11% increase [3] - SaaS revenue grew by 17% to $91,955 thousand from $78,621 thousand in the previous year [3] - Gross profit increased to $85,949 thousand, with a gross margin of 64%, up from 63% in Q3 2024 [3] - Profit for the quarter was $16,846 thousand, a 150% increase from $6,751 thousand in Q3 2024 [3][22] - Adjusted EBITDA reached $33,922 thousand, maintaining a margin of 25% [3] Key Performance Indicators - ARR at the end of Q3 2025 was $407 million, reflecting a 17% growth compared to $347 million in Q3 2024 [4][5] - The company expects to recognize future revenue of $846.1 million from unsatisfied performance obligations as of September 30, 2025 [6][7] Financial Guidance - Kinaxis updated its fiscal 2025 guidance, projecting total revenue between $535 million and $550 million, with SaaS revenue growth expected at 15-17% [10] - The company anticipates an Adjusted EBITDA margin of 24-26% for the fiscal year [10] Strategic Initiatives - The introduction of Maestro Agents is a significant step towards enhancing supply chain orchestration capabilities, aimed at improving customer outcomes and creating new revenue opportunities [2][29] - The company is focused on converting on-premise business to SaaS to leverage innovations available in cloud environments [10]