Kneat Announces Record Revenue for Second Quarter 2025

LIMERICK, Eire, Aug. 05, 2025 (GLOBE NEWSWIRE) — kneat.com, inc. (TSX: KSI) (OTC: KSIOF) (“Kneat” or the “Firm”) a pacesetter in digitizing and automating validation and high quality processes, immediately introduced monetary outcomes for the three-month interval ended June 30, 2025. All greenback quantities are offered in Canadian {dollars} until in any other case said.

• Second-quarter 2025 whole income reaches $15.4 million, a rise of 32% yr over yr
• Gross margin for the quarter ended June 30, 2025 reaches 75%
• Annual Recurring Income (ARR)¹ at June 30, 2025, grows 43% yr over yr to $64.8 million.

“We proceed on our trajectory in the direction of profitability. New buyer wins up to now quarter reached new highs, proving Kneat Gx is the platform of alternative. We welcomed new management in finance, product and engineering and continued the unrelenting growth of our platform.”

– Eddie Ryan, Chief Government Officer of Kneat. 

Q2 2025 Highlights

• Complete revenues elevated 32% to $15.4 million within the second quarter of 2025, in comparison with $11.7 million for the second quarter of 2024.   
• SaaS income for the second quarter of 2025 grew 31% to $14.1 million, versus $10.8 million for the second quarter of 2024.
• Second-quarter 2025 gross revenue was $11.6 million, up 34% from $8.7 million in gross revenue for the second quarter of 2024.

• Gross margin within the second quarter of 2025 was 75%, in comparison with 74% for the second quarter of 2024.  
• EBITDA¹ within the second quarter of 2025 was $3.8 million, in contrast with $0.5 million for the second quarter of 2024.
• Adjusted EBITDA¹ within the second quarter of 2025 was $0.4 million, in contrast with $1.6 million for the second quarter of 2024.
• Internet loss for the second quarter of 2025 was $0.4 million, in contrast with a web lack of $3.1 million for the second quarter of 2024.
• Complete ARR¹, which incorporates SaaS license and recurring upkeep charges, was $64.8 million at June 30, 2025, a rise of 43% from $45.4 million at June 30, 2024.

^[1] ARR is a supplementary measure. EBITDA and Adjusted EBITDA are non-IFRS measures and are usually not acknowledged, outlined or standardized measures underneath IFRS. These measures are outlined within the “Supplementary and Non-IFRS Measures” part of this information launch.

First Half of 2025 Monetary Highlights

• Complete revenues for the six-month interval ended June 30, 2025 elevated 34% to $30.2 million, in comparison with $22.4 million for the comparable six-month interval in 2024.
• SaaS income grew 36% to $28.0 million for the six months ended June 30, 2025, versus $20.6 million for the comparable interval in 2024.
• Gross revenue was $22.6 million, up 36% from $16.6 million in gross revenue for the primary half of 2024.
• Gross margin for the primary half of 2025 was 75%, in comparison with 74% for the primary half of 2024.
• EBITDA¹ for the primary half of 2025 was $9.7 million, in contrast with $0.0 million for the primary half of 2024.
• Adjusted EBITDA¹ for the primary half of 2025 was $2.7 million, in contrast with $2.2 million for the primary half of 2024.
• Internet earnings for the primary half of 2025 was $1.8 million, in contrast with ($6.4) million for the primary half of 2024.

Current Enterprise Highlights

• In April 2025, Kneat introduced that it signed a Companies Settlement with a multinational producer of generic prescription drugs. The Firm, which operates greater than a dozen manufacturing amenities world wide and employs greater than 20,000 folks, will initially use Kneat to digitize its drawing administration course of.
• In early Could 2025, Kneat noticed report attendance at VALIDATE, its annual occasion convening validation and high quality professionals from world wide.  One of many world’s largest occasions for validation consultants to find, share and apply validation applied sciences, rules, and finest practices, VALIDATE enabled members to witness the facility of the Kneat Gx platform.
• In Could 2025, Kneat introduced that it signed a three-year Grasp Companies Settlement with a number one producer of scientific diagnostics for the healthcare {industry}. The Firm, which operates in additional than 40 international locations and employs over 14,000 folks, will use Kneat Gx initially to digitize its gear validation course of.
• Additionally in Could 2025, Kneat introduced the enlargement of its government management crew with the addition of a Chief Innovation Officer Position. Co-founder and Chief Product Officer Kevin Fitzgerald transitioned out of his present position and into the Chief Innovation Officer position on June ninth. Donal O’Sullivan, an government with in depth software program growth and product administration management, joined Kneat at the moment as Chief Product Officer.
• In June 2025, Kneat introduced that it signed a multi-year Grasp Companies Settlement with a number one world healthcare expertise firm. The Firm, which employs over 50,000 folks and manufactures in additional than a dozen international locations worldwide, will use the Kneat Gx platform initially to digitize its Commissioning, Qualification and Validation workflows for amenities, gear and laptop techniques at a number of lead manufacturing websites.
• Additionally in June 2025, Kneat introduced the retirement of its CFO Hugh Kavanagh. The position can be stuffed by Dave O’Reilly, who joined Kneat in July.  Dave served most not too long ago as CFO of Ekco, a number one European managed safety service supplier, which he helped scale from startup to a enterprise with $200 million in annual income. Previous to his time at Ekco he led the worldwide finance perform for a $4 billion-SaaS enterprise, Consensus Cloud Options/Ziff Davis Inc., previously J2 World.  
• In July, Kneat launched Kneat Gx 9.5, which advances the information administration capabilities of our platform. New options embody better administration and management over discrete datasets; deeper performance for outlining, regulating and tracing datasets to align with risk-based validation; and extra superior filtering and visibility for Necessities, Dangers and Take a look at proof, essential pillars of efficient and environment friendly validation. These options allow customers to avoid wasting time by leveraging knowledge throughout extra tasks than ever earlier than; empowering risk-based validation processes resembling Pc Software program Assurance; and exerting better management over traceability that adapts to any workflow.

“Kneat’s lengthy historical past of stable execution is prolonged with the outcomes reported immediately.  I stay up for persevering with the disciplined monetary stewardship that precedes me on this position, and with it, Kneat’s steady scaling of the worth we ship to the Life Sciences {industry}.”

– Dave O’Reilly, Chief Monetary Officer of Kneat. 

Quarterly Convention Name

Eddie Ryan, Chief Government Officer of Kneat and Dave O’ Reilly, Chief Monetary Officer of Kneat, together with outgoing Chief Monetary Officer, Hugh Kavanagh, will host a convention name to debate Kneat’s second-quarter outcomes and maintain a Q&A for analysts and buyers through webcast on Wednesday, August 6, 2025, at 9:00 a.m. ET.

events can register for the stay webcast through the next hyperlink: Register Here.

About Kneat

Kneat Options offers main corporations in extremely regulated industries with unparalleled effectivity in validation and compliance by means of its digital validation platform Kneat Gx. As an {industry} chief in buyer satisfaction, Kneat boasts a wonderful report for implementation, powered by our user-friendly design, professional assist, and on-demand coaching academy. Kneat Gx is an industry-leading digital validation platform that permits extremely regulated corporations to handle any validation self-discipline from end-to-end. Kneat Gx is absolutely ISO 9001 and ISO 27001 licensed, absolutely validated, and 21 CFR Half 11/Annex 11 compliant. A number of unbiased buyer research present as much as 40% discount in documentation cycle instances, as much as 20% sooner pace to market, and a better compliance customary. For extra data go to http://www.kneat.com.

Supplementary and Non-IFRS Monetary Measures

The Firm makes use of supplementary monetary measures as key efficiency indicators in its MD&A and different communications. Administration makes use of each IFRS measures and supplementary, non-IFRS monetary measures as key efficiency indicators when planning, monitoring and evaluating the Firm’s efficiency.

Annual Recurring Income (“ARR”)

Kneat administration use ARR to guage and assess the Firm’s efficiency, determine tendencies affecting its enterprise, formulate monetary projections and make monetary selections. The Firm believes that ARR is a helpful metric for buyers because it offers a measure of the worth of the recurring income at a cut-off date (finish date of the related quarter). ARR is predicated on signed agreements and signifies the extent of recurring income that the Firm would anticipate reporting in a 12-month interval primarily based on the total annual SaaS and upkeep charges for present prospects. In particular circumstances, the Firm could make the most of pricing incentives for restricted contract durations. These incentives are usually not included within the calculation of ARR. ARR is utilized by Kneat to evaluate the anticipated recurring revenues from the purchasers which might be stay on the Kneat Gx platform on the finish of the interval. ARR is calculated utilizing the licenses delivered to prospects on the interval finish, multiplied by the anticipated buyer retention fee of 100% and multiplied by the total agreed annual SaaS license or upkeep price. Since most of the buyer contracts are in currencies aside from the Canadian greenback, the Canadian greenback equal is calculated utilizing the associated interval finish alternate fee multiplied by the contracted forex quantity.

Earnings earlier than Curiosity, Taxes, Depreciation and Amortization (“EBITDA”)

EBITDA is calculated as web earnings (loss) attributable to kneat.com excluding curiosity earnings (expense), provision for earnings taxes, depreciation and amortization. We offer and use this non-IFRS measure of our working efficiency to spotlight tendencies in our core enterprise that won’t in any other case be obvious when relying solely on IFRS monetary measures and to tell monetary comparisons with different corporations. A reconciliation of EBITDA to IFRS monetary measures is supplied within the monetary statements accompanying this press launch.

Adjusted Earnings earlier than Curiosity, Taxes, Depreciation and Amortization (“Adjusted EBITDA”)

Adjusted EBITDA is calculated as web earnings (loss) attributable to kneat.com excluding curiosity earnings (expense), provision for earnings taxes, depreciation and amortization, international alternate acquire and stock-based compensation expense. We offer and use this non-IFRS measure of our working efficiency to spotlight tendencies in our core enterprise that won’t in any other case be obvious when relying solely on IFRS monetary measures and to tell monetary comparisons with different corporations. A reconciliation of Adjusted EBITDA to IFRS monetary measures is supplied within the monetary statements accompanying this press launch.

Cautionary and Ahead-Wanting Statements

Aside from the statements of historic truth contained herein, sure data offered constitutes “forward-looking data” throughout the that means of relevant Canadian securities legal guidelines. Such forward-looking data contains, however isn’t restricted to, the connection between Kneat and the shopper, Kneat’s enterprise growth actions, the use and implementation timelines of Kneat’s software program throughout the buyer’s validation processes, the flexibility and intent of the shopper to scale the usage of Kneat’s software program throughout the buyer’s group, our capability to win enterprise from new prospects and broaden enterprise from present prospects, our anticipated use of the online proceeds from the IPF Facility and the general public fairness financing accomplished in each February and October 2024 and the anticipated results thereof on the enterprise and operations of the corporate, and the compliance of Kneat’s platform underneath regulatory audit and inspection. These and different assumptions, dangers and uncertainties could trigger Kneat’s precise outcomes, efficiency, achievements and developments to vary materially from the outcomes, efficiency, achievements or developments expressed or implied by forward-looking statements.

Materials dangers and uncertainties referring to our enterprise are described underneath the headings “Cautionary Notice Concerning Ahead-Wanting Statements and Info” and “Threat Elements” in our MD&A dated August 5, 2025, underneath the heading “Threat Elements” in our Annual Info Type dated February 26, 2025 and in our different public paperwork filed with Canadian securities regulatory authorities, which can be found at http://www.sedarplus.ca. Ahead-looking statements are supplied to assist readers perceive administration’s expectations as on the date of this launch and will not be appropriate for different functions. Readers are cautioned to not place undue reliance on forward-looking statements. Kneat assumes no obligation to replace or revise any forward-looking statements, whether or not because of new data, future occasions, or in any other case, besides as expressly required by legislation. Traders mustn’t assume that any lack of replace to a beforehand issued forward-looking assertion constitutes a reaffirmation of that assertion. Continued reliance on forward-looking statements is at an investor’s personal threat.

For additional data:

Katie Keita, Kneat Investor Relations
P: + 1-902-450-2660
E: katie.keita@kneat.com