Kinaxis Inc. — Earnings Release 2025

Aug 6, 2025

KINAXIS

Kinaxis Inc. Reports Second Quarter 2025 Results

• SaaS guidance raised as SaaS revenue grows 17% (constant currency¹ 14%)
• Adjusted EBITDA¹ margin of 25%, record levels for profit, EPS and Adjusted EBITDA¹
• Record Q2 for new business won as ARR² grows 15% (constant currency¹ 13%)
• Early innovator customers using new generative and agentic AI capabilities

OTTAWA, Ontario – August 6, 2025 – 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
(constant currency¹)		136,415	118,278	15%
		133,193		13%
	SaaS	88,437	75,395	17%
	(constant currency¹)	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 EBITDA¹		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 Revenue² (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 currency¹.

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( \S USD millions )	Q2 2025	Q2 2024	Change
Annual recurring revenue2	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.

( \S 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 currency1	$535-550 million
SaaS	13-15% growth
Constant currency1	13-15% growth
Subscription term license	$16-18 million
Adjusted EBITDA1 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.

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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

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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

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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.

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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.

Investor Relations
Rick Wadsworth | Kinaxis
rwadsworth@kinaxis.com
613-907-7613

Media Relations
Matt Tatham | Kinaxis
mtatham@kinaxis.com
917-446-7227

SOURCE: Kinaxis Inc.

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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

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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

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Kinaxis Inc.

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity

(Expressed in thousands of USD)

	Share capital	Contributed surplus	Accumulated other comprehensive income (loss)			Retained earnings	Total equity
			Cash flow hedges	Currency translation adjustments	Total
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

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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