Kinaxis (KXS) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 expansion business volume, with ARR up 14% and SaaS revenue growing 16% (17% in constant currency).

• Adjusted EBITDA rose 46% to $33.1 million, with a 25% margin, marking the third consecutive quarter of Rule of 40+ performance.

• Net profit increased 157% to $15.9 million ($0.55 per diluted share).

• Launched new AI-driven solutions and partnerships, including Databricks and Infor, and introduced Kinaxis Tariff Response.

• Recognized as a Leader in the 2025 Gartner Magic Quadrant for Supply Chain Planning Solutions for the 11th consecutive year.

Financial highlights

• Q1 2025 total revenue was $132.8 million, up 11% year-over-year (12% in constant currency).

• SaaS revenue reached $84.9 million, up 16% year-over-year (17% in constant currency).

• Subscription term license revenue was $9 million, up 34%; professional services revenue was $33.3 million, down 3%.

• Gross profit increased 19% to $86.5 million, with gross margin at 65% (up from 61%).

• Cash from operating activities was $31.6 million, nearly flat year-over-year.

Outlook and guidance

• 2025 guidance reiterated: total revenue of $535–$550 million (or $545–$560 million in constant currency), SaaS growth of 11–13% (12–14% in constant currency).

• Adjusted EBITDA margin expected between 23–25%.

• Subscription term license revenue guidance of $16–$18 million.

• Contracted revenue visibility extends into 2027 and beyond, with $811.7 million in future performance obligations.