kneat.com (KSI) AI Stock Analysis

• Market Cap: C$356.33M
• Dividend Yield: N/A
• Average Volume (3M): 120.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 33.27%
• EPS Growth: 86.18%
• Country: CA
• Employees: 297
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.04
• Shares Outstanding: 95,786,810
• 10 Day Avg. Volume: 105,937
• 30 Day Avg. Volume: 120,085
• PEG Ratio: 2.75
• Price to Book (P/B): 7.18
• Price to Sales (P/S): 7.38
• P/FCF Ratio: 38.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$5.70
• Price Target Upside: 40.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.06
• Revenue Forecast (FY): C$78.38M

• Rating: 55 Neutral
• Price Target: C$3.50 ▼(-13.79% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by improving fundamentals (rapid revenue growth, positive EBITDA, and a strong shift to positive free cash flow) and a generally constructive earnings-call outlook toward 2026 cash-flow breakeven. These positives are tempered by a weak technical downtrend (price below key moving averages and negative MACD) and a valuation profile constrained by continued net losses (negative P/E and no dividend yield provided).

Positive Factors

Recurring revenue growth and strong retention

Sustained SaaS revenue growth (33% FY2025) combined with 24% ARR growth and 115% NRR shows durable land-and-expand economics. High retention and expansion within customers underpin predictable recurring revenue and support scaling without proportionate new-sales spend.

Improved cash generation and strong cash balance

A material swing to positive free cash flow (~$12M) and consecutive years of positive operating cash flow materially reduce refinancing risk and provide optionality. The company can fund investments, AI initiatives and working capital internally, strengthening the runway for strategic execution.

High gross margins and SaaS-heavy, enterprise-focused model

A high SaaS mix (~80%) and targeted normalized gross margin (~77%), plus improving professional-services margins, create structural operating leverage. Enterprise focus, RFP wins and multi-year contracts amplify scalability and margin expansion as fixed costs spread over larger recurring revenue.

Negative Factors

Still net-loss making and operating loss

Despite progress, the company remains unprofitable on a net basis and reports an operating loss. Persistent net losses limit free cash generation consistency and constrain shareholder returns; continued profitability improvement is required to fully de-risk leverage and fund growth internally.

Cash-flow volatility versus sustainability risk

The sharp swing to positive FCF in 2025 follows years of outflows, indicating volatility in working-capital and cash conversion. Reliance on uneven cash cycles raises the risk that a reversal in ARR or increased OpEx could compress runway and force financing or cutbacks before profitability is firmly entrenched.

Deferred expansions and back‑end loaded ARR timing

Material deferred customer expansions create timing risk: revenue that is contracted or expected may be pushed into later periods, reducing near-term visibility. Back-end loaded expansion risks elongate payback periods and hinder the predictability of scaling margins and cash-flow breakeven targets.

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-the-shelf application focused on validation lifecycle management and testing for biotechnology, pharmaceutical, and medical device manufacturing industries. Its platform is used in process, computer system, cleaning, analytical instrument, method, utility and facility, equipment, and cold chain validation, as well commissioning and qualification, and electronic logbook management. The company also provides software-related services, including training, installation, upgradation, consulting, and maintenance, as well as process mapping, project management, and other services. kneat.com, inc. is headquartered in Limerick, Ireland.

How the Company Makes Money

Kneat.com primarily makes money by selling access to its Kneat Gx software platform as a subscription (SaaS) to customers in regulated industries (notably life sciences). Revenue is generated from recurring software fees tied to customer deployments (e.g., contracted subscription terms and usage/scale drivers such as number of users, sites, or scope of implementation, depending on contract structure). The company also earns services revenue from professional services that support adoption and ongoing use of the platform, such as implementation, configuration, onboarding/training, and related customer support activities. Partnerships, reseller arrangements, or specific pricing/contract metrics are not publicly confirmable here; null.

kneat.com Financial Statement Overview

Summary

Strong multi-year revenue scale-up and improving operating profile (positive EBITDA in 2024–2025) plus a sharp move to positive free cash flow in 2025 support the score. Offsetting this, the company remains net-loss making and cash flow has been volatile historically, with some balance-sheet risk from debt despite improved leverage versus 2023.

Income Statement

Revenue growth has been strong over the multi-year period (ramping from ~$7.4M in 2020 to ~$63.3M in 2025), which supports a constructive top-line trajectory. Profitability is improving but still mixed: gross margin remains solid (about 55% in 2025), and EBITDA turned positive in 2024–2025, but the business is still operating at an operating loss and remains net-loss making (net margin ~-3.7% in 2025 vs much weaker losses in prior years). Overall, this looks like a scaling story with meaningful progress, but not yet a consistently profitable model.

Balance Sheet

Leverage appears manageable on the latest annual report, with debt at ~$35.0M versus equity of ~$65.0M (debt-to-equity ~0.54 in 2025). The balance sheet strengthened materially versus 2023 when leverage was high (debt-to-equity ~1.91), reflecting improved capitalization. That said, ongoing net losses imply returns to shareholders are still pressured, and higher debt versus earlier years adds some financial risk if profitability stalls.

Cash Flow

Cash generation has improved sharply: operating cash flow is positive in 2024–2025 and free cash flow swung to strongly positive in 2025 (~$12.0M) after being negative in 2024 and earlier years. This indicates better cash discipline and/or improved working-capital dynamics as the business scales. A key watch-out is volatility—free cash flow has been inconsistent year-to-year (including large outflows historically and a very large growth swing in 2025), so investors should monitor sustainability of these inflows alongside the still-negative net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	63.26M	48.94M	34.22M	23.75M	15.50M
Gross Profit	34.70M	36.76M	23.13M	14.65M	9.32M
EBITDA	5.54M	6.27M	-5.37M	-3.20M	-5.11M
Net Income	-2.35M	-7.73M	-14.12M	-9.15M	-9.86M
Balance Sheet
Total Assets	121.76M	124.58M	64.50M	50.41M	51.28M
Cash, Cash Equivalents and Short-Term Investments	48.74M	58.89M	15.25M	12.28M	21.56M
Total Debt	35.04M	29.26M	28.17M	7.09M	7.86M
Total Liabilities	56.74M	59.51M	49.73M	24.43M	17.09M
Stockholders Equity	65.02M	65.07M	14.76M	25.98M	34.19M
Cash Flow
Free Cash Flow	11.98M	-10.09M	-18.39M	-9.82M	-7.74M
Operating Cash Flow	12.26M	9.79M	-1.28M	2.99M	2.31M
Investing Cash Flow	-20.10M	-17.52M	-15.97M	-11.91M	-10.04M
Financing Cash Flow	-5.87M	50.62M	20.27M	-383.91K	21.20M

kneat.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KSI, the sentiment is Negative. The current price of 4.06 is above the 20-day moving average (MA) of 3.90, below the 50-day MA of 4.29, and below the 200-day MA of 5.17, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 35.98 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:KSI.

kneat.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHI	68 Neutral	C$494.47M	-185.55	1.45%	―	59.34%	-23.48%
KSI	55 Neutral	C$356.33M	-198.83	-3.55%	―	33.27%	86.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AIDR	48 Neutral	$55.23M	-2.31	-207.53%	―	―	7.04%
ADK	45 Neutral	C$34.92M	-9.48	3086.87%	―	-48.53%	-9.66%
UDOC	45 Neutral	C$10.36M	-5.12	6239.15%	―	―	48.94%
NARA	42 Neutral	C$6.25M	-4.68	―	―	―	81.01%

kneat.com Corporate Events

Kneat Posts Record 2025 Revenue as SaaS Growth and New Enterprise Wins Strengthen Market Position

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 revenue jumped 33% to $59.4 million, ARR reached $74.1 million, and the company delivered positive Adjusted EBITDA for a second consecutive year while significantly narrowing its net loss.

Management highlighted record new customer wins in 2025, including nine major strategic enterprise deals spanning more than 300,000 employees, as well as a landmark partnership with Capgemini to accelerate digital validation. With improving margins, strong net revenue retention of 115%, and industry-leading customer satisfaction scores, Kneat is reinforcing its position as a trusted standard in life sciences validation software and moving closer to cash-flow breakeven, a positive signal for long-term customers and shareholders.

The most recent analyst rating on (TSE:KSI) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat Highlights Resilient Growth and AI-Driven Opportunity in 2025 Shareholder Letter

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 regulatory alignment, and strong customer support, helping large pharmaceutical customers modernize compliance and quality operations amid growing adoption of AI.

The company’s 2025 shareholder letter reports 33% software revenue growth, record new customer additions, and Annual Recurring Revenue surpassing $74 million, supported by a 115% Net Revenue Retention rate despite some deferred expansions and churn among non-strategic accounts. Management positions AI as a growth catalyst rather than a threat, highlighting new GxP-aligned AI tools and a roadmap for further automation, while strong satisfaction scores and market share gains underscore Kneat’s reinforced competitive moat and expansion potential heading into 2026.

The most recent analyst rating on (TSE:KSI) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat Wins Global Pharma Packaging Deal, Expands Digital Validation Footprint

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 out Kneat Gx for Commissioning, Qualification, and Validation at a lead site, with plans to expand deployment to all GMP-regulated facilities.

The win was driven by Kneat’s strong data integrity capabilities, which ensure validation records are fully attributable, traceable, and audit-ready in line with regulatory demands. The deal marks Kneat’s second strategic customer addition of 2026, reinforcing its position as a de facto standard for digital validation in life sciences and underscoring the resilience and long-term relevance of its platform as companies modernize quality systems.

The most recent analyst rating on (TSE:KSI) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat Sets Date for Q4 and Full-Year 2025 Results and Analyst Webcast

Kneat.com will report its fourth-quarter and full-year 2025 financial results after the TSX market close on 25 February 2026, followed by a webcast conference call and Q&A for sell-side analysts on 26 February. The disclosure schedule underscores the company’s efforts to maintain engagement with the investment community and provide transparency around its performance as adoption of its Kneat Gx digital validation platform grows across highly regulated markets.

The most recent analyst rating on (TSE:KSI) stock is a Hold with a C$4.50 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat Wins Global Biopharma Giant as New Digital Validation Customer

Kneat has signed a Master Services Agreement with a major global biopharma research and manufacturing technologies provider, which will begin deploying Kneat’s digital validation platform across multiple manufacturing sites worldwide to support equipment validation. The win, secured after a comprehensive competitive evaluation, strengthens Kneat’s position as a de facto standard for digital validation in the life sciences sector, is expected to support continued strong revenue growth, and will help the customer harmonize and standardize validation processes across more than 60 global locations, driving operational efficiency, enhanced compliance, and long-term value for both parties.

The most recent analyst rating on (TSE:KSI) stock is a Hold with a C$5.00 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.

Kneat Solutions Secures Strategic Deal with Global Specialty Chemicals Leader

Kneat Solutions has entered a strategic partnership with a global specialty chemicals leader by signing a three-year Master Services Agreement. This collaboration showcases Kneat’s leadership in the digital validation market and positions the company to expand its platform’s influence across adjacent compliance functions while further enhancing efficiency and regulatory standards for its customers. This milestone contributes to Kneat’s record-breaking year in customer acquisition, bolstering the company’s reputation as a trusted provider of digital transformation solutions in highly regulated industries.

The most recent analyst rating on (TSE:KSI) stock is a Hold with a C$5.00 price target. To see the full list of analyst forecasts on kneat.com stock, see the TSE:KSI Stock Forecast page.