Kneat Shares Record-Breaking Q3 Performance: SaaS Growth Hits 33% Year-over-Year

Validation Platform Leader Demonstrates Accelerating Momentum with Strong New Customer Wins

LIMERICK, Ireland – Kneat Solutions (TSX: KSI, OTCQX: KSIOF) has unveiled impressive third-quarter results that underscore the growing market demand for its digital validation platform. The company’s financial performance reflects both the durability of its competitive positioning and the expanding appetite for automation in regulated industries.

Financial Highlights Signal Strong Business Trajectory

Kneat shares strong Q3 execution across key metrics. Total revenues climbed to $16.1 million, representing 26% growth compared to the same quarter last year ($12.8 million). More impressively, the SaaS revenue segment—which represents recurring, high-margin income—surged 33% year-over-year to reach $15.2 million, up from $11.5 million in Q3 2024.

The company’s gross profit hit $12.2 million, up 25% from $9.8 million in the prior year period, while maintaining a healthy gross margin of 76%. This performance demonstrates Kneat’s ability to scale while preserving profitability at the product level.

Perhaps most notably, the company’s Annual Recurring Revenue (ARR) climbed 37% year-over-year to $68.6 million as of September 30, 2025—a compelling indicator that the company is building a durable, predictable revenue base from its customer base.

Strategic Customer Wins Fuel Growth Narrative

Beyond the headline numbers, Kneat revealed three significant new customer additions during Q3, marking what management characterizes as continued progress toward a record year for customer acquisition.

In early August, a global medical technology company inked a three-year Master Services Agreement with the platform provider. Weeks later, a major equipment manufacturer serving the healthcare sector followed suit. By September, a leading multinational specializing in advanced devices and components for MedTech also committed to a multi-year partnership.

These wins underscore the market’s recognition of Kneat Gx’s capabilities in streamlining validation workflows across complex organizations.

Market Leadership Recognition

Recognition from industry analysts reinforced Kneat’s market position during the quarter. The company earned top rankings across three categories in G2’s Pharma and Biotech Fall 2025 Grid Reports, including the overall leader position and top spot on the Relationship Index. Notably, Kneat’s satisfaction score of 98 out of 100 outpaced the second-ranked competitor by 20 points (78), underscoring customer loyalty and product effectiveness.

Innovation Roadmap Targets Operational Efficiency

Management highlighted Kneat’s investment in AI capabilities designed to enhance the platform’s usability and geographic reach. Near-term enhancements will focus on streamlining content creation, automating content review processes, and enabling data-driven decision-making—areas where customers have signaled strong demand.

Year-to-Date Performance Reflects Momentum

Through the first nine months of 2025, Kneat demonstrated sustained acceleration. Year-to-date revenues reached $46.3 million, up 31% from $35.2 million for the comparable 2024 period. SaaS revenue expanded 35% to $43.2 million. The company also swung to net income of $1.3 million for the nine-month period, reversing a net loss of $5.3 million in the prior year—a meaningful inflection point.

Adjusted EBITDA of $5.3 million year-to-date essentially matched the prior year’s $5.0 million, despite heavy investment in research and development to fuel future growth.

Management Commentary Signals Confidence

Eddie Ryan, Chief Executive Officer, emphasized the durability of the company’s competitive advantages and management’s confidence in achieving profitability breakeven in 2026 amid a “robust pipeline” and stabilizing expense structure.

Dave O’Reilly, Chief Financial Officer, characterized the quarter as evidence of sustained momentum in customer wins and expansions, noting that new feature development positions Kneat to enter adjacent markets with significant growth potential.

The company will host a conference call on November 13, 2025, to discuss results in detail with analysts and investors.