Kraken Robotics Reports Q1 2026 Financial Results with 35% Year-Over-Year Revenue Growth and Reiterates 2026 Guidance

ST. JOHN’S, Newfoundland and Labrador, May 28, 2026 (GLOBE NEWSWIRE) — Kraken Robotics Inc. (“Kraken” or the “Company”) (TSX-V: PNG, OTCQB: KRKNF), has filed its financial results for the first quarter ended March 31, 2026 (“Q1 2026”). Please refer to the unaudited consolidated financial statements and management’s discussion and analysis (“MD&A”) for the three months ended March 31, 2026, filed on SEDAR+ at www.sedarplus.ca, for more information. Unless otherwise specified, all dollar amounts in this release are denominated in Canadian dollars.

As previously released on March 3, 2026 (the “March 3 News Release”), the Company entered into a definitive agreement to acquire Covelya Group Limited (“Covelya Group”), a leading international provider of mission-critical underwater technology solutions, for total consideration of $615 million, subject to adjustment (the “Covelya Acquisition”). For further details on the Covelya Acquisition, please see the March 3 News Release.

KEY HIGHLIGHTS

• Q1 2026 revenue of $21.7 million, up 35% from Q1 2025, and Adjusted EBITDA¹ of $3.0 million.
• Product revenue grew 50% from subsea battery and Synthetic Aperture Sonar (“SAS”) demand.
• Demand for Kraken’s products increased further bringing product orders in 2026 to $97 million.
• Year-to-date order intake for Covelya’s products also strengthened and now total $165 million.
• Signed an agreement with SEFINE SISAM to integrate KATFISH into their mission planning software providing a fully integrated autonomous solution for seabed warfare and mine countermeasures.
• The Covelya Acquisition remains on track to close near the end of the second quarter 2026.
• Reiterating stand-alone 2026 outlook for revenue of $165 million to $175 million and Adjusted EBITDA of $40 million to $50 million. At the mid-point, this represents annual revenue growth of over 65% and EBITDA growth of 80%. New guidance that reflects the Covelya Acquisition will be issued at closing.

MANAGEMENT COMMENTS

“Our first quarter results were in-line with our expectations, with financial performance expected to improve throughout 2026, consistent with prior years due to the seasonal nature of our business,” said Greg Reid, President and CEO of Kraken Robotics. “We continue to execute on securing new products orders, including growing traction with new defence customers, and recently expanded our battery manufacturing capacity to support anticipated growth. Industry fundamentals across our business remain strong, driven by the growing demand for autonomous underwater vehicles in the defence and offshore energy sectors. This increasing demand presents a significant opportunity for Kraken to drive future growth. Looking ahead, we are excited for the expected closing of our strategic combination with Covelya. This transformative acquisition is expected to accelerate our growth and position Kraken as a major supplier of mission-critical subsea intelligence solutions for maritime security and offshore energy.”

Q1 2026 FINANCIAL HIGHLIGHTS

• Consolidated revenue increased to $21.7 million, up 35% from $16.1 million in Q1 2025. Revenue growth was primarily driven by increased demand in Kraken’s SeaPower subsea batteries and SAS products, in addition to growth in the subsea services division. Q1 2026 results, and service revenue, also included the contribution from the acquisition of 3D at Depth, Inc., which was completed in April 2025.
• Product revenue totaled $13.8 million, up 50% from $9.2 million in Q1 2025, driven by increased demand for the Company’s SAS and subsea battery products.
• Service revenue of $7.9 million in Q1 2026 was up 14% in comparison to $7.0 million in Q1 2025. Quarterly revenues and year-over-year comparisons can fluctuate significantly due to seasonality in the offshore services business.
• Gross profit² increased to $12.2 million, up 21% from $10.1 million in Q1 2025. The Company’s gross profit margin² during the quarter equated to 56%, compared to 63%. Gross profit margin can fluctuate within a given quarter based on the mix of product and service revenue.
• Adjusted EBITDA of $3.0 million in Q1 2026, was up 7% from $2.8 million in Q1 2025. The Company’s Adjusted EBITDA margin³ equated to 14%, down from 17% in Q1 2025. Adjusted EBITDA margin for Q1 2026 was slightly impacted by higher administrative expenses reflecting a larger employee base. Kraken’s Adjusted EBITDA margin is expected to improve throughout 2026 based on expected revenue growth. The mid-point of Kraken’s annual guidance implies an Adjusted EBITDA margin of over 26%.
• Total assets on March 31, 2026, were $715.9 million, compared to $179.0 million on March 31, 2025. Total assets at the end of Q1 2026 included $394.5 million of subscription receipt proceeds held in escrow from the Company’s March 3, 2026 public offering, which was completed to partially fund the Covelya Acquisition, as detailed later in this release.
• Long-term obligations and lease liabilities at the end of the quarter were $38.4 million, compared to $30.5 million in Q1 2025. Kraken maintains a strong balance sheet with a cash position of $108.7 million as at March 31, 2026, up from $59.3 million at the end of Q1 2025, and working capital of $162.4 million, up from $94.6 million at the end of Q1 2025.
• Capital expenditures/intangible assets purchased were $7.0 million in the quarter, compared to $2.8 million in Q1 2025. This increase in growth capital reflects remaining expenditures related to Kraken’s new subsea power manufacturing facility in addition to new marine assets to support revenue growth. The Company expects more moderate capital spending during the remainder of 2026, with an annual budget of $15 million to $18 million, as highlighted later in the release.
• The Company reported a net loss of $3.3 million in Q1 2026, or ($0.01) per share diluted, compared to net income of $0.2 million, or $0.00 per share diluted, in the comparable quarter in the prior year period. Excluding restructuring and acquisition costs, the Company reported Adjusted net income⁴ in Q1 2026 of $0.3 million, or $0.00 per share diluted, compared to $0.7 million, or $0.00 per share diluted in the prior year period.

OTHER COMPANY HIGHLIGHTS

• During Q1 2026, Kraken completed a successful demonstration of its new KATFISH towed SAS and autonomous launch and recovery systems (LARS) from SEFINE’s RD-22 unmanned surface vessel (USV). The demonstration, which took place off the coast of Istanbul, Türkiye, focused on rapid detection and classification of mine-like objects and critical underwater infrastructure. Subsequent to this demonstration, Kraken signed a memorandum of understanding (MOU) with SEFINE SISAM to integrate KATFISH into its mission planning software and develop automatic target recognition (ATR) capabilities for Kraken SAS. Together, both companies are advancing autonomous solutions for seabed warfare and mine countermeasures. This MOU was previously announced on May 6, 2026.
• As previously announced, Kraken entered into an agreement to acquire Covelya Group during Q1 2026. This accretive acquisition aligns with the Company’s strategy to deliver market-leading value to customers through a portfolio of leading-edge technologies and a culture centered around innovation. The Covelya Acquisition is expected to position Kraken as a major supplier of dual-use subsea technology, expand its product offering and total addressable market, allow for deeper relationships with its customers, improve its business diversification, and bolster its technological capabilities. During Q1 2026, Kraken also completed a $402.5 million public offering of subscription receipts (the “Offering”) at a price of $8.50 per subscription receipt. The gross proceeds of the Offering, less a portion of the reimbursable expenses and commission payable to the underwriters in connection with the Offering, were deposited in escrow with an escrow agent pending the satisfaction of certain release conditions. The Company intends to use the net proceeds of the Offering to partially fund the Covelya Acquisition. For additional details, see the Company’s news releases dated March 3, 2026 and March 12, 2026.
• Subsequent to the quarter, the Company attended the 2026 edition of SeaSEC Challenge Weeks, “Data2Sea”, an advanced maritime security exercise focused on the protection of critical underwater infrastructure. Kraken supported various end users in exercises on pre-defined mission sets with the use of its SAS and MP-SAS on multiple unmanned underwater vehicles (UUVs). Established by the Ministries of Defence of Germany, the Netherlands, Finland, Denmark, Sweden, and Norway, SeaSEC is a collaborative platform with a mission to protect the continuity of energy and data supply.

2026 ORDERS – KRAKEN & COVELYA

• Since releasing its 2025 year-end results, Kraken has secured additional product orders for its SeaPower subsea batteries and SAS. Announced orders in 2026 now total approximately $97 million, up from $87 million as previously reported on April 16, 2026.
• Covelya has also continued to generate solid order intake, with orders in 2026 at approximately $165 million, up from $135 million as previously reported on April 16, 2026.

2026 FINANCIAL GUIDANCE

The Company remains on track with its annual financial guidance, which remains unchanged from the guidance last provided on April 16, 2026. Consistent with prior years, revenue in 2026 is expected to be weighted toward the second half of the year.

Kraken expects revenue in 2026 to be between $165 million and $175 million and Adjusted EBITDA⁵ to be between $40 million to $50 million, excluding any contribution from the Covelya Acquisition. Capital expenditures are expected to range from $15 million to $18 million.

A summary table of the Company’s 2026 guidance range and a comparison to 2025 results is provided below. Kraken plans to release updated annual guidance for the combined company upon closing of the Covelya Acquisition, which is expected near the end of the second quarter 2026, subject to the satisfaction of customary closing conditions and receipt of required regulatory approvals.

Figure 1: Sea testing of Kraken Robotics’ KATFISH from the ISO20 Launch and Recovery System in Halifax Harbour.

NON-IFRS MEASURES  

The Company has included certain non-IFRS financial measures and non-IFRS ratios in this press release, including Adjusted EBITDA, Adjusted EBITDA margin, gross profit, gross profit margin, Adjusted net income and working capital. Management believes that non-IFRS financial measures and non-IFRS ratios, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-IFRS financial measures and non-IFRS ratios do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. 

Adjusted EBITDA and Adjusted EBITDA Margin

The Company believes that, in addition to conventional measures prepared in accordance with IFRS, Adjusted EBITDA is useful to securities analysts, investors and other interested parties in evaluating operating performance by presenting the results of the Company on a basis which excludes the impact of certain non-operational items which enables the primary readers of the press release to evaluate the results of the Company such that it was operating without certain non-cash and non-recurring items. Adjusted EBITDA is calculated as earnings before interest expense, interest income, income taxes, depreciation and amortization, stock-based compensation expense and non-recurring impact transactions, if any.

Gross profit is defined as revenue less cost of total sales. Gross profit margin is defined as gross margin divided by total sales.  

Adjusted Net Income and Adjusted Net Income per Share

Adjusted net income is calculated by adding to and deducting from net income, as applicable, certain expenses, costs, charges or benefits incurred which in management’s view are either not indicative of underlying business performance or impact the ability to assess the operating performance of the business.

Adjusted net income per share diluted represents Adjusted net income divided by the weighted average number of fully diluted shares outstanding during the period.

ABOUT KRAKEN ROBOTICS INC.

Kraken Robotics Inc. is transforming subsea intelligence through 3D imaging sensors, power solutions, and robotic systems. Our products and services enable clients to overcome the challenges in our oceans – safely, efficiently, and sustainably.

Kraken’s synthetic aperture sonar, sub-bottom imaging, and LiDAR systems offer best-in-class resolution, providing critical insights into ocean safety, infrastructure, and geology. Our revolutionary pressure tolerant batteries deliver high energy density power for UUVs and subsea energy storage.

Kraken is headquartered in Canada with offices in North America, South America, and Europe, supporting clients in more than 30 countries worldwide.

On March 3, 2026, Kraken announced the acquisition of Covelya Group, a leading international provider of mission-critical underwater technology solutions operating through its subsidiary companies: Sonardyne International Limited, EIVA A/S, Forcys Limited, Wavefront Systems Limited, Voyis Imaging Inc., and Chelsea Technologies Ltd. The Covelya Acquisition is expected to close near the end of the second quarter of 2026, subject to the satisfaction of customary conditions and regulatory approvals.

LINKS:
www.krakenrobotics.com

SOCIAL MEDIA:
LinkedIn www.linkedin.com/company/krakenrobotics
Twitter www.twitter.com/krakenrobotics
Facebook www.facebook.com/krakenroboticsinc
YouTube www.youtube.com/channel/UCEMyaMQnneTeIr71HYgrT2A
Instagram www.instagram.com/krakenrobotics

FORWARD LOOKING STATEMENTS

This news release contains statements that constitute “forward-looking information” as defined under applicable Canadian securities laws (collectively, “forward-looking statements”). When used in this news release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: the closing of the Covelya Acquisition, and timing thereof; impacts of the Covelya Acquisition on the business and financial outlook of the Company; expected growth of the autonomous underwater systems industry; business objectives; expected growth of the Company; expected orders of products and services; maritime security matters and the expanding role of mine countermeasures; new product offerings; technology development partnership plans; expected financial performance in the remainder of 2026; expectations regarding results of operations, performance, business projects and opportunities, and financial results; and 2026 guidance (including consolidated revenue, Adjusted EBITDA, Adjusted EBITDA margin, and capital expenditures/intangible assets) and financial estimates. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company’s current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions, ability to complete the Covelya Acquisition, ability to successfully integrate the operations and realize the anticipated benefits of the Covelya Acquisition, satisfaction of escrow release conditions related to the subscription receipt offering, risks related to technology development partnerships and commercialization of new product capabilities, fluctuations in demand for the Company’s products and services, macroeconomic uncertainties and other factors set out in the Company’s continuous disclosure materials filed from time to time with the Canadian Securities Administrators, including the Company’s most recent annual information form under the section entitled “Risk Factors”, quarterly and annual reports, and supplementary information, which are available under the Company’s profile on SEDAR+ at www.sedarplus.ca. Additional risks and uncertainties not presently known to the Company or that Kraken believes to be less significant may also adversely affect the Company. Many factors could cause the Company’s actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and accordingly, forward-looking statements should not be unduly relied upon.

Guidance for 2026 is provided as April 16, 2026, to assist analysts and shareholders in formalizing their respective views on the year ending December 31, 2026. The reader is cautioned that using this information for other purposes may be inappropriate. This information constitutes forward-looking statements, based on multiple estimates and assumptions about future events. Actual results may differ, and such differences may be material. Expectations are also subject to a number of risks and uncertainties as well as material assumptions contained in this press release and in Kraken’s management’s discussion and analysis (“MD&A”) for the three and twelve months ended December 31, 2025, as filed on SEDAR+ at www.sedarplus.ca. Guidance for 2026 is based on management’s current views, strategies, expectations, assumptions and forecasts, and has been calculated using accounting policies that are generally consistent with the Company’s current accounting policies. The Company cautions that the assumptions used to prepare the 2026 outlook could prove to be incorrect or inaccurate. Accordingly, the Company’s actual results could differ materially from the Corporation’s expectations as set out in this press release. The Company’s revenue for 2026 assumes the following: Product revenue guidance range is driven by growth in Kraken’s battery, KATFISH and SAS portfolios, along with organic growth in its service business as well as a full year contribution of its 3D at Depth acquisition. Product revenue is supported by existing orders and expected orders related to identified opportunities. Service revenue growth is based on a stable to growing investment in offshore energy projects, both oil and gas and offshore renewables, and demand for critical underwater infrastructure inspection and repair. Revenue is expected to be weighted towards the second half of the year based on historical customer purchasing patterns. Adjusted EBITDA guidance assumes gross profit margins for its products and services consistent with prior year levels.   

Forward-looking statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information:

Erica Hasenfus, Director of Global Marketing
[email protected]

Shant Madian, Director of Capital Markets
[email protected]

Kraken Robotics Inc.
+1 709-757-5757 or [email protected]

¹ Adjusted EBITDA is a non-IFRS financial measure with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. See “Non-IFRS Measures” in this press release.
² Gross profit is calculated as total revenue minus cost of sales. Gross profit margin is calculated as gross profit divided by total revenue.
³ Adjusted EBITDA margin is a non-IFRS financial ratio based on Adjusted EBITDA, with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. See “Non-IFRS Measures” in this press release.
⁴ Adjusted net income is a non-IFRS financial measure. Adjusted net income is calculated by adding to and deducting from net income, as applicable, certain expenses, costs, charges or benefits incurred which in management’s view are either not indicative of underlying business performance or impact the ability to assess the operating performance of the business. Adjusted net income per share diluted is a non-IFRS financial ratio with no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. See “Non-IFRS Measures” in this press release.
⁵ Adjusted EBITDA guidance is a non-IFRS financial measure, and Adjusted EBITDA margin guidance is a non-IFRS ratio based on Adjusted EBITDA, each of which is forward-looking. See “Non-IFRS Measures” and “Forward-Looking Statements” in this press release.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/43c9a175-4e62-4dce-9a96-85a0d6705190