Kraken Robotics revenue grows but swings to Q2 2025 loss

Kraken Robotics has reported a mixed set of results for the second quarter of 2025, with a 16 per cent rise in revenue overshadowed by a swing to a net loss. The Canadian subsea technology company’s performance was driven by strong growth in its battery and services divisions, but profitability was hit by increased administrative costs as it invests in future growth.

For the three months ending June 30, consolidated revenue increased to CA$26.4 million ($19.3 million), up from CA$22.8 million in the same period last year.

The company attributed the growth to its subsea battery business, which had its best quarter to date, and a 180 per cent surge in service revenue, boosted by the acquisition of 3D at Depth. However, this was partially offset by a decline in sonar-related revenue as a major project with the Canadian Navy nears completion.

Despite the higher revenue, the company recorded a net loss of CA$0.7 million for the quarter, a reversal from the CA$2.6 million net income reported in the second quarter of 2024. The swing to a loss came despite a 27 per cent increase in gross profit to CA$14.8 million.

The bottom line was impacted by higher outgoings, with the company noting increased administrative expenses as it has, "invested in our growth, particularly in business development and systems/processes."

Looking ahead, Kraken has maintained its financial guidance for the full year 2025, expecting revenue of between CA$120 million and CA$135 million. The company expressed optimism, highlighting a busy year of customer demonstrations for its sonar platform and strong proposal activity in the defence market.

Its position has been bolstered by a recently completed equity financing that raised gross proceeds of CA$115 million, which it says will enable investment in organic growth and potential acquisitions.