kneat.com (TSE:KSI)
TSX:KSI
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kneat.com
(TSX:KSI)
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Rating:63Neutral
Price Target:
C$5.50
▲(35.47% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by improving (but still unprofitable) financial performance and uneven free cash flow, offset by strong technical momentum. The latest earnings call supports the outlook with a 2026 cash-flow breakeven objective and solid ARR/retention metrics, while valuation remains pressured due to losses and no dividend.
Positive Factors
ARR & Retention Strength
High ARR growth and a 115% net revenue retention reflect a durable land-and-expand model: existing customers are expanding usage, which supports recurring revenue predictability and reduces dependence on constant new logo acquisition for long-term revenue sustainability.
Negative Factors
Ongoing Net Losses
The company remains unprofitable on a TTM basis with negative EBIT and returns, meaning shareholder profitability is not yet achieved. Persistent losses constrain reinvestment choices, limit margin of safety, and require sustained execution to reach durable, self-funded profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
ARR & Retention Strength
High ARR growth and a 115% net revenue retention reflect a durable land-and-expand model: existing customers are expanding usage, which supports recurring revenue predictability and reduces dependence on constant new logo acquisition for long-term revenue sustainability.
Read all positive factors
kneat.com (KSI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$488.51M
Dividend YieldN/A
Average Volume (3M)120.08K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth25.70%
EPS Growth-229.48%
CountryCA
Employees297
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.09
Shares Outstanding95,786,810
10 Day Avg. Volume105,937
30 Day Avg. Volume120,085
Financial Highlights & Ratios
PEG Ratio2.75
Price to Book (P/B)7.18
Price to Sales (P/S)7.38
P/FCF Ratio38.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.25Price Target Upside53.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.04
Revenue Forecast (FY)C$77.91M
kneat.com Business Overview & Revenue Model
Company Description
kneat.com, inc. designs, develops, and supplies software for data and document management within regulated environments in the United States, Ireland, Canada, and internationally. The company offers Kneat Gx platform, a configurable commercial off...
How the Company Makes Money
Kneat.com primarily makes money by selling subscriptions/licenses to its Kneat Gx software platform to enterprise customers that need to manage validation and quality documentation in regulated environments. Revenue is typically generated from (1)...
kneat.com Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call emphasized solid growth and strong fundamentals—software revenue up 33%, ARR up 24% YoY in the quarter, 115% NRR, a record number of new customers, $48.7M cash, and a clear AI integration plan—paired with a credible target of cash flow breakeven in 2026. Offsetting risks include deferred expansions that compressed near-term ARR growth, a $1.1M FX headwind, higher operating expenses (+33% year), modest churn tied to customer financial stress, and macro/timing uncertainty. Management expects many deferred expansions to materialize in 2026 and is seeing pipeline strength and margin levers (gross margin ~77%, improved PS margins) to support the breakeven objective.Positive Updates
Strong Software Revenue Growth
Software revenue increased 33% for the full year 2025, demonstrating robust demand for Kneat's core product offering.
Negative Updates
ARR Growth Below Expectations and Deferred Expansions
ARR growth (24% YoY in the quarter) was described as 'solid, but not as high as expected' due to several expansions being pushed into future periods; management expects many deferred expansions to materialize in 2026, but timing remains back-end loaded.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Software Revenue Growth
Software revenue increased 33% for the full year 2025, demonstrating robust demand for Kneat's core product offering.
Read all positive updates
Company Guidance
Management guided to a 2026 objective of cash‑flow breakeven (operating/free cash flow) while growing incremental ARR above 2025 levels (noting incremental ARR is historically back‑end loaded and many deferred expansions remain in the pipeline), and said capitalized R&D should be relatively static with prior adjusted‑EBITDA margin targets still expected to hold; they cited 2025 metrics including software revenue up 33% YoY, Q4 ARR growth +24% YoY, net revenue retention of 115%, a customer base of >130 (≈20% net new logos in 2025), $48.7M cash on the balance sheet, full‑year OpEx up 33%, an expected normalized gross margin around ~77% (Q4 benefitted from ~50 bps of accrual releases), SaaS mix ≈80%, professional services margin improving from ~15% toward 20%+, and a $1.1M FX headwind since Q3.kneat.com Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.52M | 63.26M | 48.94M | 34.22M | 23.75M | 15.50M |
| Gross Profit | 39.98M | 34.70M | 36.76M | 23.13M | 14.65M | 9.32M |
| EBITDA | 12.62M | 5.54M | 6.27M | -5.37M | -3.20M | -5.11M |
| Net Income | -8.44M | -2.35M | -7.73M | -14.12M | -9.15M | -9.86M |
Balance Sheet | ||||||
| Total Assets | 138.44M | 121.76M | 124.58M | 64.50M | 50.41M | 51.28M |
| Cash, Cash Equivalents and Short-Term Investments | 51.52M | 48.74M | 58.89M | 15.25M | 12.28M | 21.56M |
| Total Debt | 26.77M | 35.04M | 29.26M | 28.17M | 7.09M | 7.86M |
| Total Liabilities | 75.35M | 56.74M | 59.51M | 49.73M | 24.43M | 17.09M |
| Stockholders Equity | 63.09M | 65.02M | 65.07M | 14.76M | 25.98M | 34.19M |
Cash Flow | ||||||
| Free Cash Flow | -3.40M | 11.98M | -10.09M | -18.39M | -9.82M | -7.74M |
| Operating Cash Flow | 2.29M | 12.26M | 9.79M | -1.28M | 2.99M | 2.31M |
| Investing Cash Flow | -19.17M | -20.10M | -17.52M | -15.97M | -11.91M | -10.04M |
| Financing Cash Flow | -7.38M | -5.87M | 50.62M | 20.27M | -383.91K | 21.20M |
kneat.com Technical Analysis
Positive
4.06
Price Trends
4.17
Positive
4.28
Positive
4.75
Positive
Market Momentum
0.27
Positive
67.39
Neutral
58.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KSI, the sentiment is Positive. The current price of 4.06 is below the 20-day moving average (MA) of 4.79, below the 50-day MA of 4.17, and below the 200-day MA of 4.75, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 67.39 is Neutral, neither overbought nor oversold. The STOCH value of 58.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KSI.
kneat.com Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$452.25M | 46.85 | 2.98% | ― | 58.90% | 124.86% | |
63 Neutral | C$488.51M | -21.18 | -12.95% | ― | 25.70% | -229.48% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | C$48.43M | -2.31 | -207.53% | ― | 15725.47% | -26.12% | |
45 Neutral | C$22.28M | -9.48 | 3086.87% | ― | -46.50% | 1.32% | |
45 Neutral | C$5.62M | -2.47 | ― | ― | ― | 85.58% | |
42 Neutral | C$9.07M | -5.12 | 6239.15% | ― | ― | 68.00% |
* Healthcare Sector Average
TSE:KSI
kneat.com
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kneat.com Corporate Events
Business Operations and StrategyFinancial Disclosures
Kneat Posts Record 2025 Revenue as SaaS Growth and New Enterprise Wins Strengthen Market Position
Positive
Feb 26, 2026
Kneat reported record fourth-quarter and full-year 2025 results, driven by strong growth in its SaaS business and expanding adoption of its validation lifecycle management platform. Total revenue rose 29% to $63.3 million for the year, SaaS revenu...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Kneat Highlights Resilient Growth and AI-Driven Opportunity in 2025 Shareholder Letter
Positive
Feb 26, 2026
Kneat.com, Inc., a specialist in digitizing validation and quality workflows for life sciences, has built a reputation as a trusted system of record in highly regulated settings. Its no-code, configurable platform emphasizes audit-ready data, deep...
Business Operations and Strategy
Kneat Wins Global Pharma Packaging Deal, Expands Digital Validation Footprint
Positive
Feb 20, 2026
Kneat.com has signed a Master Services Agreement with a U.S.-headquartered global pharmaceutical packaging and drug-delivery manufacturer that operates more than 45 plants worldwide and employs over 13,000 people. The customer will initially roll ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.