ST. JOHN'S, Newfoundland and Labrador, Oct. 14, 2025 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. (“Kraken” or the “Company”) (TSX-V: PNG, OTCQB: KRKNF) announces that a record number of participants used its synthetic aperture sonar (SAS) technology at the annual Robotic Experimentation and Prototyping with Maritime Unmanned Systems (REPMUS) exercise in Portugal. Seven international naval teams and three uncrewed underwater vehicle (UUV) manufacturers deployed Kraken SAS for maritime security exercise applicat ...

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].

Core Insights - Kraken Robotics Inc. reported a 31% increase in revenue to $91 million for the year ended December 31, 2024, with adjusted EBITDA rising 47% to $21 million [1][5] - The company's sales pipeline has more than doubled to $2 billion, indicating strong future growth potential [1][9] Financial Highlights for 2024 - Consolidated revenue increased to $91.3 million from $69.6 million in 2023, with product revenue up 26% to $66.3 million and service revenue up 47% to $25 million [5] - Gross profit rose 32% to $44.7 million, maintaining a gross profit margin of 49% [5] - Net income increased significantly to $20.1 million from $5.5 million in the prior year, with diluted earnings per share rising to $0.09 from $0.03 [5] Q4 2024 Financial Highlights - Q4 2024 revenue was flat at $28.1 million compared to $28.0 million in Q4 2023, with product revenue declining 6% to $18.6 million while services revenue increased 14% to $9.6 million [5][16] - Gross profit for Q4 2024 increased 15% to $13.5 million, resulting in a gross profit margin of 48% [5][16] - Adjusted EBITDA for Q4 2024 rose 23% to $7.0 million, with an adjusted EBITDA margin of 25% [5][16] Management Comments - The company experienced record growth in 2024, particularly in defense and offshore energy markets, with plans to expand manufacturing capacity in Canada [4][6] - The Subsea Power business, particularly the SeaPower batteries, is a key growth driver, alongside the Subsea Services business [4][6] 2025 Financial Guidance - For 2025, Kraken expects revenue between $120 million and $135 million, representing a growth of 40% at the midpoint, and adjusted EBITDA in the range of $26 million to $34 million [7][10] - Capital expenditures for 2025 are projected to be between $13 million and $17 million, with significant investment in a new subsea power manufacturing facility [8][10] Sales Pipeline and Market Opportunities - The sales funnel pipeline has increased to approximately $2 billion, more than double the $900 million reported in February 2024 [9] - The company anticipates that revenue will be weighted towards the second half of calendar 2025, driven by numerous defense program tenders [9][6]