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Kinaxis: Kinaxis Delivers Record-Breaking Q4 and Full-Year Results

Kinaxis reported a strong financial performance for the fourth quarter and full-year 2025, with total revenue reaching $144.2 million, up 16% or 14% in constant currency. SaaS revenue grew by 19% to $97.2 million, driven by robust new business wins throughout 2025. The company's gross profit margin expanded to 65%, with software margin improving to 78% due to more efficient software delivery. Adjusted EBITDA reached a record $37.6 million, up 19% year-over-year. For the full year, total revenue was $548 million, up 13%, while SaaS revenue grew 17% to $368.4 million. Adjusted EBITDA margin hit 25%, exceeding the company's midterm profitability goal. Earnings per share (EPS) came in at $1.38, beating analyst estimates of $1.01.

KXS.TO

CAD 136.27

1.21%

A-Score: 4.8/10

Publication date: March 5, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • SaaS Revenue Growth Q4 SaaS revenue rose 19% ($97.2M) and annual growth hit 17% ($388.8M), exceeding initial guidance of 11–13%.
  • ARR Expansion Annual Recurring Revenue (ARR) grew 20% year-over-year, accelerating from 12% growth in 2024.
  • New Business Wins Secured 21 deals over $1M in 2025, tripling the 6 deals won in 2024 and surpassing prior quarterly records.
  • Gross Margin Improvement Gross profit surged 26% to $94.3M, with a 65% gross margin (up from 61%) and 78% software margin (up from 73%).
  • Adjusted EBITDA Record Adjusted EBITDA reached $37.6M in Q4 (19% growth) and $138.4M annually (30% growth), with a 25% margin—the highest since 2019.

Revenue Growth Momentum

The company's revenue growth was driven by a significant increase in new business wins, with the total average annual contract value (ACV) in Q4 being roughly 1/3 higher than any previous quarter. The number of contracts with $1-plus million in average ACV was at record levels, with 21 deals over $1 million won in 2025. According to Razat Gaurav, "We won roughly 1/3 more new business than in any previous quarter and year in our history." This momentum is expected to continue, with guidance for SaaS revenue growth of 17% to 19% in 2026.

Expanding Profitability

Kinaxis' adjusted EBITDA margin expanded to 25% in 2025, a significant improvement from 22% in 2024. The company's focus on efficient software delivery and strong control over operating expenses contributed to this growth. For 2026, the company is guiding to an adjusted EBITDA margin of 25% to 26%, indicating a continued focus on balancing growth with profitability.

Valuation and Outlook

With a P/E Ratio of 38.87 and an EV/EBITDA of 24.97, the market is pricing in a certain level of growth momentum for Kinaxis. Analysts estimate revenue growth of 12.5% for the next year, which may be a conservative estimate given the company's recent performance. The company's strong track record of execution, combined with its expanding presence in the AI-driven supply chain decision-making and orchestration platform market, positions it for continued growth.

Kinaxis's A-Score