Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Q2 FY25 revenue increased 32% year over year to CAD 15.4 million.
  • Gross margin reached 75%, with gross profit rising to CAD 11.6 million.
  • Net loss narrowed to CAD 0.4 million from CAD 3.1 million in Q2 FY24. 

Kneat.com, Inc. (KSI.TSX) reported total revenue of CAD 15.4 million for the second quarter ended June 30, 2025, marking a 32% increase from CAD 11.7 million in the same period last year. SaaS revenue rose 31% year over year to CAD 14.1 million, while gross profit reached CAD 11.6 million, reflecting a gross margin of 75%, slightly above the 74% margin in Q2 FY24. 

About the company, Kneat provides digital validation and quality process solutions, with customers spanning pharmaceuticals, biotechnology, and healthcare technology. The company’s Annual Recurring Revenue (ARR) stood at CAD 64.8 million as of June 30, 2025, up 43% from CAD 45.4 million a year earlier. 

EBITDA for Q2 FY25 was CAD 3.8 million, a substantial improvement from CAD 0.5 million in Q2 FY24. However, adjusted EBITDA fell to CAD 0.4 million compared to CAD 1.6 million in the prior-year quarter. The net loss narrowed to CAD 0.4 million from a net loss of CAD 3.1 million a year earlier. 

For the six-month period ending June 30, 2025, revenue rose 34% year over year to CAD 30.2 million. SaaS revenue accounted for CAD 28.0 million of this total, a 36% increase from the first half of 2024. Gross profit for H1 FY25 reached CAD 22.6 million, up from CAD 16.6 million a year ago. EBITDA stood at CAD 9.7 million, while net income was CAD 1.8 million, compared to a net loss of CAD 6.4 million in H1 FY24. 

Recent developments include multiple new customer agreements and leadership changes. The company also launched Kneat Gx 9.5, enhancing data management features to support risk-based validation processes and traceability controls.