Kinaxis Inc. Reports Second Quarter 2025 Results

About this update from Kinaxis, Inc.

.bwalignc { text-align: center; list-style-position: inside } .bwalignl { text-align: left } .bwalignr { text-align: right; list-style-position: inside } .bwblockalignl { margin-left: 0px; margin-right: auto } .bwcellpmargin { margin-bottom: 0px; margin-top: 0px } .bwdoublebottom { border-bottom: double black 2.25pt } .bwleftsingle { border-left: solid black 1pt } .bwlistdisc { list-style-type: disc } .bwpadb3 { padding-bottom: 4px } .bwpadb4 { padding-bottom: 5px } .bwpadl0 { padding-left: 0px } .bwpadl1 { padding-left: 5px } .bwpadl2 { padding-left: 10px } .bwpadl6 { padding-left: 30px } .bwpadr0 { padding-right: 0px } .bwsinglebottom { border-bottom: solid black 1pt } .bwtablemarginb { margin-bottom: 10px } .bwvertalignb { vertical-align: bottom } .bwvertalignt { vertical-align: top } .bwwidth1 { width: 1% } .bwwidth10 { width: 10% } .bwwidth100 { width: 100% } .bwwidth12 { width: 12% } .bwwidth18 { width: 18% } .bwwidth2 { width: 2% } .bwwidth24 { width: 24% } .bwwidth28 { width: 28% } .bwwidth3 { width: 3% } .bwwidth32 { width: 32% } .bwwidth39 { width: 39% } .bwwidth46 { width: 46% } .bwwidth48 { width: 48% } .bwwidth5 { width: 5% } .bwwidth50 { width: 50% } .bwwidth6 { width: 6% } .bwwidth7 { width: 7% } .bwwidth70 { width: 70% } .bwwidth9 { width: 9% } SaaS guidance raised as SaaS revenue grows 17% (constant currency 1 14%) Adjusted EBITDA 1 margin of 25%, record levels for profit, EPS and Adjusted EBITDA 1 Record Q2 for new business won as ARR 2 grows 15% (constant currency 1 13%) Early innovator customers using new generative and agentic AI capabilities Kinaxis ® (TSX:KXS), a global leader in end-to-end supply chain orchestration, reported results for its second quarter ended June 30, 2025. All amounts are in U.S. dollars. All figures are prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise indicated. “This was our strongest second quarter ever for new business, and was equally balanced between new customer wins and expansion orders. As a result of this strong performance, including record profitability, we achieved our fourth consecutive Rule of 40 quarter and are increasing SaaS growth guidance for 2025,” said Bob Courteau, interim chief executive officer at Kinaxis . “We now have early innovator customers using our new generative and agentic AI capabilities, which will help enable more autonomous supply chains that boost productivity, democratize access to data and generate better business outcomes. We couldn’t be more excited about how AI will transform both Kinaxis' opportunity and the amount of value we offer customers.” Q2 2025 Highlights $ USD thousands, except as otherwise indicated Q2 2025 Q2 2024 Change Total Revenue 136,415 118,278 15% (constant currency 1 ) 133,193 13% SaaS 88,437 75,395 17% (constant currency 1 ) 86,323 14% Subscription term licenses 5,057 1,368 270% Professional services 37,394 36,495 2% Maintenance and support 5,527 5,020 10% Gross profit 87,531 70,186 25% Margin 64% 59% Profit 18,439 3,434 437% Per diluted share $0.64 $0.12 Adjusted EBITDA 1 33,730 21,930 54% Margin 25% 19% Cash from operating activities 22,566 13,140 72 % (1) “Adjusted EBITDA” and constant currency metrics are non-IFRS measures that are not a recognized, defined or standardized measure under IFRS. These measures as well as any other non-IFRS financial measures reported by Kinaxis are defined in the “Non-IFRS Measures” section of this news release. Key Performance Indicators The company’s Annual Recurring Revenue 2 (ARR), which includes subscription amounts related to both SaaS and on-premise contracts, rose to $391 million at the end of the quarter, or 15% growth as-reported and 13% in constant currency 1 . $USD millions Q2 2025 Q2 2024 Change Annual recurring revenue 2 391 339 15 % (2) Annual Recurring Revenue (ARR) is the total annualized value of recurring subscription amounts (ultimately recognized as SaaS, Subscription term licenses and Maintenance and support revenue) of all subscription contracts at a point in time. Annualized subscription amounts are determined solely by reference to the underlying contracts, normalizing for the varying revenue recognition treatments under IFRS 15 for cloud-based versus on-premise subscription amounts. It excludes one-time fees, such as for non-recurring professional services, and assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal, unless such renewal is known to be unlikely. We believe that this measure provides a more current indication of our performance in the growth of our subscription business than other metrics. The nature of the company’s long-term contracts provides visibility into future, contracted revenue. The following table presents revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at June 30, 2025. $USD millions 2025 2026 2027 and later Total SaaS 172.9 280.5 339.9 793.3 Maintenance and support 10.8 14.4 15.3 40.5 Subscription term licenses — 0.1 — 0.1 Total 183.7 295.0 355.2 833.9 Financial Guidance Kinaxis is updating its fiscal 2025 financial guidance, as follows. FY 2025 Guidance Total revenue $535-550 million Constant currency 1 $535-550 million SaaS 13-15% growth Constant currency 1 13-15% growth Subscription term license $16-18 million Adjusted EBITDA 1 margin 23-25% “I am pleased with our performance in the first half of the year. Strong momentum in winning new business has improved our outlook for full-year SaaS revenue, the primary driver of our business. Our gross margin and key profitability metrics continued to be strong in the second quarter and included record levels for adjusted EBITDA 1 , profit and earnings per share. Our trailing-twelve-month free cash flow margin remains on a great trajectory and our mid-term financial aspirations are all intact,” said Blaine Fitzgerald, chief financial officer at Kinaxis . Guidance in this press release is provided to enhance visibility into Kinaxis’ expectations for financial targets for the periods indicated. Please refer to the section regarding forward-looking statements that forms an integral part of this release. This press release along with the financial statements and MD&A for the quarter ended June 30, 2025 are available on Kinaxis’ website and on SEDAR+ at www.sedarplus.ca . Conference Call Kinaxis will host a conference call tomorrow, August 7, 2025, to discuss these results. Bob Courteau, interim chief executive officer and chair, and Blaine Fitzgerald, chief financial officer, will host the call starting at 8:30 a.m. Eastern Time. A question and answer session will follow management's presentation. Investors and participants must register for the call in advance. See registration link below. Please call the conference telephone number fifteen minutes prior to the start time. DATE: Thursday, August 7, 2025 TIME: 8:30 a.m. Eastern Time CALL REGISTRATION: https://registrations.events/direct/Q4I9141647 WEBCAST https://events.q4inc.com/attendee/980400584 (available for three months) About Kinaxis Inc. Kinaxis is a global leader in modern supply chain orchestration, powering complex global supply chains and supporting the people who manage them, in service of humanity. Our powerful, AI-infused supply chain orchestration platform, Maestro™, combines proprietary technologies and techniques that provide full transparency and agility across the entire supply chain — from multi-year strategic planning to last-mile delivery. We are trusted by renowned global brands to provide the agility and predictability needed to navigate today’s volatility and disruption. For more news and information, please visit kinaxis.com or follow us on LinkedIn. Non-IFRS Measures This press release makes reference to Adjusted Profit and Adjusted EBITDA, which are non-IFRS financial measures, as well as Adjusted EBITDA margin which expresses Adjusted EBITDA as a percentage of revenue. Adjusted Profit, Adjusted EBITDA and Adjusted EBITDA margin are not recognized, defined or standardized measures under IFRS. We use these measures to provide investors with supplemental information on our operating performance and to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Providing these non-IFRS measures provides useful information because they portray the financial results of the Company before certain expenses that do not impact the ongoing operating decisions taken by management. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements, and to determine components of employee compensation. Adjusted Profit represents profit adjusted to exclude the changes in the fair value of contingent consideration, our equity compensation plans, special charges, and non-recurring items. Adjusted EBITDA represents profit adjusted to exclude the change in the fair value of contingent consideration, our equity compensation plans, special charges, non-recurring items, income tax expense, depreciation and amortization, foreign exchange loss (gain) and net finance (income) expense. Adjusted EBITDA margin expresses Adjusted EBITDA as a percentage of revenue. Our definitions of Adjusted Profit, Adjusted EBITDA and Adjusted EBITDA margin will likely differ from those used by other companies (including our peers) and therefore comparability may be limited. Non-IFRS measures should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures. Kinaxis has reconciled Adjusted Profit and Adjusted EBITDA to the most comparable IFRS financial measure as follows: Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 (In thousands of USD) (In thousands of USD) Profit 18,439 3,434 34,352 9,621 Share-based compensation 10,374 7,702 19,721 16,424 Non-recurring item (1) — 5,546 — 7,298 Adjusted profit 28,813 16,682 54,073 33,343 Income tax expense 3,757 2,082 9,497 4,691 Depreciation and amortization 4,982 6,268 10,405 12,673 Foreign exchange gain (1,099 ) (40 ) (2,013 ) (166 ) Net finance income (2,723 ) (3,062 ) (5,089 ) (5,931 ) 4,917 5,248 12,800 11,267 Adjusted EBITDA 33,730 21,930 66,873 44,610 Adjusted EBITDA as a percentage of revenue 25% 19% 25% 19% Note: (1) Costs associated with the restructuring initiative We also present certain IFRS measures, SaaS revenue and total revenue, and non-IFRS supplementary measures, ARR, under constant currency. We believe that presenting these measures under constant currency provides a useful framework for assessing estimates of how our business would have performed excluding the effect of foreign currency rate fluctuations. The presentation of financial results under constant currency is considered to be a non-IFRS measure and does not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies (including our peers). For SaaS revenue and total revenue under constant currency, results for entities reporting in currencies other than U.S. Dollars (“USD”) are converted into USD at the average exchange rates in effect during the comparison period, rather than the actual average exchange rates in effect during the current period. For constant currency ARR, we convert all non-USD-denominated recurring subscription amounts at the exchange rates in effect at the end of the comparison period, rather than the exchange rates in effect at the end of the current period. The outlook for constant currency SaaS revenue growth rate is derived by applying the average exchange rates in effect during the comparison period rather than the exchange rates expected during the guidance period. We believe the presentation of the above results and metrics, and applicable related growth rates, adjusted for constant currency facilitates the corresponding year‑over‑year comparisons. Forward-Looking Statements Certain statements in this release constitute forward-looking statements, future-oriented financial information and financial outlook within the meaning of applicable securities laws. Forward-looking statements, future-oriented financial information and financial outlook include statements as to our expectations for: growth of annual total revenue, annual SaaS and Subscription term licenses revenue, and our expectations for Adjusted EBITDA margin achievement, in each case looking forward for our fiscal year ending December 31, 2025; SaaS growth and increased profitability in years beyond 2025; and contracted revenue in future periods, including 2025, 2026 and 2027 and later. This release also includes forward-looking statements as to Kinaxis’ growth opportunities and the potential benefits of, and markets and demand for, Kinaxis’ products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis’ products and services compared to competitive offerings in the industry. In particular, our guidance for 2025 annual total revenue, annual SaaS and Subscription term license revenue and annual Adjusted EBITDA margin, as well as our comments on our expectations for SaaS growth and increased profitability in years beyond 2025, are subject to certain assumptions and associated risks including: our ability to win business from new customers and expand business from existing customers; the timing of new customer wins and expansion decisions by our existing customers; maintaining our customer retention levels , and specifically, that customers will renew contractual commitments on a periodic basis as those commitments come up for renewal, at rates consistent with our historic experience; anticipated trends, standards and challenges in our business and the markets we operate in; fluctuations in the value of foreign currencies relative to the U.S. Dollar; and with respect to Adjusted EBITDA and profitability, our ability to contain expense levels while expanding our business. Our guidance and commentary for achievement of contracted revenue in future periods, including in 2025, 2026 and 2027 and later, is based on assumptions and associated risks including: our ability to satisfy material unperformed obligations under our long-term contracts; and the continued financial capacity and creditworthiness of our customers under long-term contracts. These and other assumptions, risks and uncertainties may cause Kinaxis’ actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by forward-looking statements, future-oriented financial information or financial outlook. Material risks and uncertainties relating to our business are described under the headings “Forward-Looking Statements” and “Risks and Uncertainties” in our annual MD&A dated February 26, 2025, and under the heading “Risk Factors” in our Annual Information Form dated February 26, 2025, which are available at www.sedarplus.ca . Readers are cautioned that the assumptions used in the preparation of forward-looking statements, future-oriented financial information and financial outlook, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on such information. Our actual results, performance and achievements could differ materially from those expressed in, or implied by, such forward-looking statements, future-oriented financial information or financial outlook. Forward-looking statements, future-oriented financial information and financial outlook are provided to help readers understand management’s expectations as at the date of this release and may not be suitable for other purposes. Readers are cautioned not to place undue reliance on forward-looking statements. Kinaxis assumes no obligation to update or revise any forward-looking statements, future-oriented financial information or financial outlook whether as a result of new information, future events or otherwise, except as expressly required by law. SOURCE: Kinaxis Inc. Kinaxis Inc. Condensed Consolidated Interim Statements of Financial Position (Expressed in thousands of USD) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 123,754 $ 172,192 Short-term investments 205,635 126,307 Trade and other receivables 131,205 156,394 Prepaid expenses 19,809 18,244 480,403 473,137 Non-current assets: Unbilled receivables 1,055 1,448 Other receivables 1,091 867 Prepaid expenses 2,240 2,072 Deferred tax assets 18,944 11,016 Contract acquisition costs 33,549 32,005 Property and equipment 31,803 32,486 Right-of-use assets 46,219 46,705 Intangible assets 12,489 12,865 Goodwill 76,541 72,735 223,931 212,199 $ 704,334 $ 685,336 Liabilities and Shareholders’ Equity Current liabilities: Trade payables and accrued liabilities $ 62,019 $ 94,369 Deferred revenue 143,490 140,008 Provisions 1,389 544 Lease obligations 5,639 5,587 212,537 240,508 Non-current liabilities: Lease obligations 45,310 43,348 Deferred tax liabilities 4,972 5,969 50,282 49,317 Shareholders’ equity: Share capital 325,848 285,422 Contributed surplus — 12,078 Accumulated other comprehensive income (loss) 2,337 (3,847 ) Retained earnings 113,330 101,858 441,515 395,511 $ 704,334 $ 685,336 Kinaxis Inc. Condensed Consolidated Interim Statements of Comprehensive Income (Expressed in thousands of USD, except share and per share data) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenue $ 136,415 $ 118,278 $ 269,203 $ 237,648 Cost of revenue 48,884 48,092 95,133 94,532 Gross profit 87,531 70,186 174,070 143,116 Operating expenses: Selling and marketing 31,738 27,341 60,427 52,268 Research and development 21,896 22,221 44,564 45,206 General and administrative 15,541 18,263 32,407 37,512 69,175 67,825 137,398 134,986 18,356 2,361 36,672 8,130 Other income: Foreign exchange gain 1,099 40 2,013 166 Net finance and other income 2,741 3,115 5,164 6,016 3,840 3,155 7,177 6,182 Profit before income taxes 22,196 5,516 43,849 14,312 Income tax expense 3,757 2,082 9,497 4,691 Profit 18,439 3,434 34,352 9,621 Other comprehensive income (loss): Items that are or may be reclassified subsequently to profit Foreign currency translation differences - foreign operations 2,933 (621 ) 4,010 (1,956 ) Change in valuation of cash flow hedges 1,597 (241 ) 2,174 (718 ) 4,530 (862 ) 6,184 (2,674 ) Total comprehensive income $ 22,969 $ 2,572 $ 40,536 $ 6,947 Basic earnings per share $ 0.65 $ 0.12 $ 1.22 $ 0.34 Weighted average number of basic Common Shares 28,270,720 28,187,236 28,183,079 28,232,707 Diluted earnings per share $ 0.64 $ 0.12 $ 1.19 $ 0.33 Weighted average number of diluted Common Shares 28,890,916 28,787,603 28,901,030 28,875,785 Kinaxis Inc. Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity (Expressed in thousands of USD) Accumulated other comprehensive income (loss) Share capital Contributed surplus Cash flow hedges Currency translation adjustments Total Retained earnings Total equity Balance, December 31, 2023 $ 307,327 $ 44,339 $ 441 $ 919 $ 1,360 $ 101,802 $ 454,828 Profit — — — — — 56 56 Other comprehensive loss — — (1,644 ) (3,563 ) (5,207 ) — (5,207 ) Total comprehensive income (loss) — — (1,644 ) (3,563 ) (5,207 ) 56 (5,151 ) Share options exercised 28,065 (6,512 ) — — — — 21,553 Restricted share units vested 14,992 (14,992 ) — — — — — Deferred share units vested 1,396 (1,396 ) — — — — — Performance share units vested 5,533 (5,533 ) — — — — — Share-based payments — 40,723 — — — — 40,723 Shares repurchased (53,727 ) (44,551 ) — — — — (98,278 ) Obligations related to share repurchases (18,164 ) — — — — — (18,164 ) Total shareholder transactions (21,905 ) (32,261 ) — — — — (54,166 ) Balance, December 31, 2024 $ 285,422 $ 12,078 $ (1,203 ) $ (2,644 ) $ (3,847 ) $ 101,858 $ 395,511 Profit — — — — — 34,352 34,352 Other comprehensive income — — 2,174 4,010 6,184 — 6,184 Total comprehensive income — — 2,174 4,010 6,184 34,352 40,536 Share options exercised 24,709 (5,893 ) — — — — 18,816 Restricted share units vested 16,310 (16,310 ) — — — — — Performance share units vested 3,553 (3,553 ) — — — — — Share-based payments — 23,230 — — — — 23,230 Shares repurchased (3,222 ) (9,552 ) — — — (22,880 ) (35,654 ) Change in obligation for share repurchases (924 ) — — — — — (924 ) Total shareholder transactions 40,426 (12,078 ) — — — (22,880 ) 5,468 Balance, June 30, 2025 $ 325,848 $ — $ 971 $ 1,366 $ 2,337 $ 113,330 $ 441,515 Kinaxis Inc. Condensed Consolidated Interim Statements of Cash Flows (Expressed in thousands of USD) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Cash flows from operating activities Profit $ 18,439 $ 3,434 $ 34,352 $ 9,621 Items not affecting cash: Depreciation of property and equipment and right-of-use assets 4,149 4,942 8,768 10,018 Amortization of intangible assets 833 1,326 1,637 2,655 Share-based payments 10,374 7,702 19,721 16,424 Net finance income (2,723 ) (3,062 ) (5,089 ) (5,931 ) Income tax expense 3,757 2,082 9,497 4,691 Investment tax credits recoverable — (1,109 ) — (2,009 ) Change in operating assets and liabilities (5,578 ) (2,904 ) 7,177 6,203 Interest received 3,068 3,778 5,971 8,188 Interest paid (481 ) (459 ) (930 ) (841 ) Income taxes paid (9,272 ) (2,590 ) (26,891 ) (3,868 ) 22,566 13,140 54,213 45,151 Cash flows used in investing activities Purchase of property and equipment (2,686 ) (1,893 ) (4,268 ) (2,084 ) Purchase of short-term investments (167,444 ) (157,512 ) (289,889 ) (216,869 ) Redemption of short-term investments 133,045 105,832 210,609 198,395 (37,085 ) (53,573 ) (83,548 ) (20,558 ) Cash flows used in financing activities Payment of lease obligations (1,382 ) (1,786 ) (2,943 ) (3,526 ) Repurchase of shares (18,266 ) (36,125 ) (35,654 ) (57,407 ) Proceeds from exercise of stock options 12,996 7,126 18,816 11,308 (6,652 ) (30,785 ) (19,781 ) (49,625 ) Decrease in cash and cash equivalents (21,171 ) (71,218 ) (49,116 ) (25,032 ) Cash and cash equivalents, beginning of period 143,489 219,374 172,192 174,844 Effects of exchange rates on cash and cash equivalents 1,436 (1,001 ) 678 (2,657 ) Cash and cash equivalents, end of period $ 123,754 $ 147,155 $ 123,754 $ 147,155 View source version on businesswire.com: https://www.businesswire.com/news/home/20250806152242/en/ Investor Relations Rick Wadsworth | Kinaxis [email protected] 613-907-7613 Media Relations Matt Tatham | Kinaxis [email protected] 917-446-7227

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