Kraken Robotics Reports Q2 2025 Results
Kraken Robotics Inc. announced it has filed its financial results for the quarter ended June 30, 2025.
Q2 2025 Financial Highlights
Consolidated revenue in Q2 2025 increased 16% to $26.4 million, compared to $22.8 million in the prior year. The increase was driven by strong growth in our subsea battery and service businesses and the acquisition of 3D at Depth Inc. (3D at Depth) offset by lower sonar revenue.
Product revenue in the quarter decreased 14% to $16.5 million, compared to $19.2 million in the prior year. Our SeaPower™ subsea battery business grew significantly and had its highest quarterly revenue to date, however, this growth was offset by our sonar related revenue which declined as the acquisition component of the Canadian Navy RMDS system integration project nears completion. As in the past, quarterly revenue can fluctuate significantly due to the timing of product orders and shipments.
Service revenue in the quarter increased 180% to $9.8 million compared to the prior year due to strong organic growth for sub bottom imaging services and from the acquisition of 3D at Depth with its subsea LiDAR services.
Gross profit in the quarter increased 27% to $14.8 million, compared to $11.6 million in the prior year, implying a gross profit margin of 56% compared to 51% in the prior year. Gross profit margin percentage improved over the prior year due to revenue mix, with a higher percentage of revenues coming from higher margin products and services in the current year compared to the prior year.
Adjusted EBITDA for the quarter of $4.7 million, compared to Adjusted EBITDA of $5.4 million in the comparable quarter, implying an adjusted EBITDA margin of 18% compared to 24% in the comparable year. The lower Adjusted EBITDA margin relates to increased administrative expenses as we have invested in our growth, particularly in business development and systems/processes to help convert our potential pipeline.
Total assets were $184.3 million on June 30, 2025, compared to $98.5 million on June 30, 2024. Cash at the end of the quarter totaled $32.9 million, compared to $20.4 million in the prior year, while working capital totaled $71.8 million, compared to $41.0 million in the prior year. After the quarter ended, we completed a bought deal equity financing for gross proceeds of $115 million.
Capital expenditures/intangible assets purchased were $6.3 million in the quarter, compared to $0.7 million in the comparable quarter. The increase is related to our new battery facility in Canada as well as growth in internal marine assets to drive service revenue growth.
Net loss in the quarter was $0.7 million compared to a net income of $2.6 million in the comparable quarter. Basic and diluted loss per share were $0.00 compared to $0.01 basic and diluted earnings per share in the prior year.
2025 financial guidance remains unchanged from the guidance provided after Q1 results on May 29, 2025. In 2025, management expects revenue between $120 million and $135 million and Adjusted EBITDAbetween $26 million to $34 million. The guidance midpoints represent 40% revenue growth and 45% Adjusted EBITDA growth.