Financial Performance - Consolidated revenue in Q1 2025 decreased 23% to $16.1 million compared to $20.9 million in the prior year, driven by a 42% decline in product revenue to $9.2 million [6] - Service revenue increased 38% to $7.0 million due to demand for Sub-Bottom Imager™ and Acoustic Corer™ services [6] - Gross profit increased 8% to $10.1 million, resulting in a gross margin of 62.7% compared to 44.8% in the prior year [6][15] - Adjusted EBITDA decreased 32% to $2.8 million, with an adjusted EBITDA margin of 17.3% compared to 19.6% in the prior year [6][12] Market Outlook - The company expects strong top and bottom-line growth in 2025, supported by robust macro fundamentals in the naval defense market as navies modernize and adopt uncrewed platforms [3] - Anticipated defense RFP activity from 2025 to 2027 is at unprecedented levels, contributing to optimism in the naval defense segment [3] Recent Developments - The company secured nearly $45 million in subsea battery orders and $3 million in orders for Kraken SAS since the end of Q4 [5] - A new manufacturing capacity in Canada is expected to come online by the end of 2025, enhancing the company's ability to meet customer needs in offshore energy and naval defense markets [4] Financial Guidance - The company maintains its 2025 revenue guidance of $120 million to $135 million, representing a 40% growth, and an adjusted EBITDA margin of $26 million to $34 million [7] - Capital expenditures for 2025 are projected to range from $13 million to $17 million, with approximately $10 million allocated for a new subsea power manufacturing facility [8]

Core Insights - 3D At Depth, a subsidiary of Kraken Robotics, has successfully completed its 1,000th subsea metrology project, highlighting its commitment to innovation and excellence in underwater technology [1][4][5] Company Overview - Established in 2011, 3D At Depth specializes in high-quality subsea measurement services, utilizing proprietary technology and skilled personnel to deliver accurate results [4][8] - The company focuses on enhancing operational efficiency in challenging underwater environments through advanced measurement solutions [4][8] Recent Project Highlights - The 1,000th project involved a LiDAR spool metrology for TotalEnergies at the Girassol oil field in Angola, performed at a water depth of 1,350 meters [2] - The project utilized a remotely operated vehicle (ROV) equipped with 3D At Depth's Subsea LiDAR, with a total operational time of four hours and deliverables provided within 24 hours [2] Technological Advancements - The use of advanced technologies and touchless solutions allows clients like TotalEnergies to de-risk inspection, maintenance, and repair processes while reducing environmental impact [3] - 3D At Depth's commitment to technology innovation ensures high standards of quality and reliability for clients worldwide [5]