Kinaxis (KXS) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 new business signings, with ARR up 15% year-over-year and balanced growth from new and expansion business.

• SaaS revenue grew 17% (14% in constant currency), and adjusted EBITDA margin reached 25%, marking the fourth consecutive quarter of Rule of 40 performance.

• Net profit rose 437% to $18.4 million ($0.64 per diluted share), both record levels.

• Early adoption of generative and agentic AI capabilities by customers, with continued investment in AI-first, real-time supply chain orchestration and a strategic partnership with Databricks.

• Added several large enterprise customers across diverse verticals and geographies, including Lactalis, McKee Foods, Sobi, Shimadzu, GG Group, and SEKO Logistics.

Financial highlights

• Total Q2 revenue was $136.4 million, up 15% year-over-year (13% in constant currency); SaaS revenue reached $88.4 million, up 17% (14.5% in constant currency).

• Subscription term license revenue was $5.1 million, up 270% year-over-year; professional services revenue grew 2% to $37.4 million; maintenance and support revenue rose 10% to $5.5 million.

• Gross profit increased 25% to $87.5 million, with gross margin at 64% (up from 59% last year).

• Adjusted EBITDA was $33.7 million, up 54% year-over-year, with a margin of 25% (vs. 19% last year).

• Cash flow from operations was $22.6 million, up 72% year-over-year; cash and equivalents totaled $329.4 million.

Outlook and guidance

• Increased SaaS revenue growth guidance for 2025 to 13%-15% (as-reported and constant currency).

• Maintained total revenue guidance at $535 million-$550 million and subscription term license revenue at $16 million-$18 million.

• Adjusted EBITDA margin expected to remain strong at 23%-25%.

• Strong contracted revenue visibility through 2027, with $833.9 million in future performance obligations.

• Confident in pipeline and competitive win rates for the remainder of 2025.