Kraken Robotics Reports Lower Q1 Revenue, Increased Gross Profit

Kraken Robotics Inc. reported its financial results for the first quarter of 2025, announcing a 23% decrease in consolidated revenue compared to the same period last year. Total revenue for the quarter was $16.1 million, down from $20.9 million in Q1 2024. This decline was primarily attributed to a 42% drop in product revenue, which fell to $9.2 million.

The decrease in product sales was influenced by the nearing completion of a Canadian Navy systems integration project and a temporary slowdown in sonar-related revenue. However, the company noted significant growth in its SeaPower™ subsea battery business. Service revenue saw a substantial 38% increase, reaching $7.0 million, driven by demand for its Sub-Bottom Imager™ and Acoustic Corer™ services. The recent acquisition of subsea LiDAR company 3D at Depth is expected to further bolster Kraken's service offerings.

Despite the revenue dip, Kraken Robotics reported an 8% increase in gross profit, which rose to $10.1 million from $9.3 million in the prior year. This resulted in a significantly higher gross margin of 62.7%, up from 44.8% a year ago. The company anticipates future quarters will reflect its historical gross profit margins, excluding certain one-time impacts. Adjusted EBITDA decreased by 32% to $2.8 million, with an adjusted EBITDA margin of 17.3%.

The company reaffirmed its financial guidance for 2025, projecting full-year revenue between $120 million and $135 million and an Adjusted EBITDA in the range of $26 million to $34 million. President and CEO Greg Reid highlighted optimism regarding growth in the naval defense sector, driven by modernization trends and the adoption of uncrewed platforms, as well as expansion in offshore energy markets.