Kraken Robotics, marine technology company and developer of Synthetic Aperture Sonar (SAS), has released strong quarterly financials (Q1 2025) upholding the annual forecast.
Q1 2025 financial highlights demonstrate total assets were $178.8 million on March 31, 2025, compared to $73.5 million on March 31, 2024. Cash totaled $58.3 million in contrast to $1.5 million in the previous year, and working capital came to $94.6 million as opposed to the $6.5 million in 2024.
Capital expenditures/intangible assets purchased were $2.7 million compared to $0.8 million in the comparable quarter, which is related to Kraken Robotics’ new battery facility in Canada and growth in internal assets driving service revenue increases.
Financial results also showed service revenue increased 38% to $7.0 million due to the continued demand for Sub-Bottom Imager™ and Acoustic Corer™ services. Gross profit has grown from 8% to $10.1 million, compared to $9.3 million in the previous year, suggesting a gross margin of 62.7% as opposed to 44.8%.
However, product revenue decreased 42% from $15.8 million to $9.2 million, which in itself drove consolidated revenue to decline by 23% from $20.9 million in 2024 to $16.1 million in Q1 2025. While there was significant growth in Kraken Robotics’ SeaPower™ subsea battery business, sonar related revenue declined as the acquisition part of the Canadian Navy system integration project nears completion. Quarterly revenue fluctuates significantly due to product orders and shipment timings.
For the rest of 2025, Kraken President and CEO Greg Reid stated, “Similar to previous years, we expect financial results to improve throughout the year and expect strong top and bottom-line growth in 2025, as indicated by our 2025 financial guidance given a month ago.
“Our largest market of naval defense has strong macro fundamentals with growth being seen across the globe as navies modernize for the future and increasingly adopt uncrewed platforms. In providing sensor and power solutions to the major suppliers of UUVs, we benefit from this growing adoption.
“For our towed synthetic aperture sonar sensor platform, KATFISH, we have a busy year of customer demonstrations in North America, Europe, the Middle East, and Asia Pacific. Historically, successful demonstrations have driven future contract wins. The level of defense RFP activity expected from 2025 to 2027 is at levels the industry has not seen in many decades and is driving our optimism on this segment of our business.
“With new manufacturing capacity in Canada coming online at the end of this year and a growing presence in the US both organically and through our acquisition of 3D at Depth, we are well positioned to meet customer needs in the offshore energy and naval defense markets.”
Read Kraken Robotics’ financial results and 2025 guidance in their original article.
