-- Q1 SaaS revenue grows 21% versus 16% a year ago
-- Record new business for a Q1 drives ARR2 growth of 20% versus 14% a
year ago
-- Delivered record Q1 profit and adjusted EBITDA1, adjusted EBITDA
margin1 up to 32%
OTTAWA, Ontario--(BUSINESS WIRE)--May 06, 2026--
Kinaxis$(R)$ (TSX:KXS), a global leader in end-to-end supply chain planning and orchestration, reported record results for its first quarter ended March 31, 2026. All amounts are in U.S. dollars. All figures are prepared in accordance with IFRS Accounting Standards (IFRS) unless otherwise indicated.
"We continue to have tremendous success winning the largest new customer opportunities and expanding with existing customers, which together is driving record levels of bookings and ARR growth. We were thrilled with continued traction in scaling up our business through market leading innovations and further customer success earned alongside our partner ecosystem," said Razat Gaurav, chief executive officer at Kinaxis. "We're seeing good early-stage demand for our Maestro Agents, with new paying customers in Q1. At the same time, we experienced strong demand for our market leading, end-to-end AI-driven demand and supply planning capabilities, which use a combination of advanced optimization, heuristics and machine learning models. Agentic and Generative AI are tremendous complements to deep mathematical techniques, and when leveraging the latest data architectures, all these technologies combined will be critical to helping organizations manage their supply chains amidst the unprecedented levels of volatility in demand and supply."
Q1 2026 Highlights
$ USD thousands, except as otherwise indicated Q1 2026 Q1 2025 Change
------------------------------------------------ --------- -------- -------
Total Revenue 165,568 132,788 25%
------------------------------------------------ --------- -------- -------
SaaS 102,885 84,882 21%
Subscription term licenses 19,052 9,027 111%
Professional services 38,720 33,340 16%
Maintenance and support 4,911 5,539 (11)%
------------------------------------------------ --------- -------- -------
Gross profit 114,016 86,539 32%
Margin 69% 65%
------------------------------------------------ --------- -------- -------
Profit 29,420 15,913 85%
Per diluted share $1.04 $0.55
------------------------------------------------ --------- -------- -------
Adjusted EBITDA(1) 53,603 33,143 62%
Margin 32% 25%
------------------------------------------------ --------- -------- -------
Cash flows from operating activities 59,082 31,647 87%
------------------------------------------------ --------- -------- -------
(1) "Adjusted EBITDA" is a non-IFRS measure that is not a recognized, defined
or standardized measure under IFRS. This measure as well as any other non-IFRS
financial measures reported by Kinaxis are defined in the "Non-IFRS Measures"
section of this news release.
Key Performance Indicators
The company's Annual Recurring Revenue(2) $(ARR)$, which includes subscription amounts related to both SaaS and on-premise contracts, rose 20% to $447 million at the end of the quarter.
$USD millions Q1 2026 Q1 2025 Change -------------------------------------- ------------ ------------ ---------- Annual recurring revenue(2) 447 372 20% -------------------------------------- ------------ ------------ ---------- (2) Annual Recurring Revenue (ARR) is the total annualized value of recurring subscription amounts (ultimately recognized as SaaS, Subscription term licenses and Maintenance and support revenue) of all subscription contracts at a point in time. Annualized subscription amounts are determined solely by reference to the underlying contracts, normalizing for the varying revenue recognition treatments under IFRS 15 for cloud-based versus on-premise subscription amounts. It excludes one-time fees, such as for non-recurring professional services, and assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal, unless such renewal is known to be unlikely. We believe that this measure provides a more current indication of our performance in the growth of our subscription business than other metrics.
The nature of the company's long-term contracts provides visibility into future, contracted revenue. The following table presents revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at March 31, 2026.
$USD millions 2026 2027 2028 and later Total
--------------------------- ----- ----- --------------- ------
SaaS 295.7 306.2 303.5 905.4
--------------------------- ----- ----- --------------- ------
Maintenance and support 11.4 13.8 12.3 37.5
--------------------------- ----- ----- --------------- ------
Subscription term licenses 2.2 3.3 0.3 5.8
--------------------------- ----- ----- --------------- ------
Total 309.3 323.3 316.1 948.7
--------------------------- ----- ----- --------------- ------
Financial Guidance
Kinaxis is reiterating its fiscal 2026 financial guidance, as follows.
FY 2026 Guidance
-------------------------- ----------------
Total revenue $620-635 million
-------------------------- ----------------
SaaS revenue growth 17-19% growth
-------------------------- ----------------
Adjusted EBITDA(1) margin 25-26%
-------------------------- ----------------
"I couldn't be more excited than to complete my time at Kinaxis with such a stellar quarter. Despite our outperformance, we are maintaining all aspects of annual guidance, which we provided only 60 days ago. It is early in the year and we will gather more information and review assumptions next quarter. In any case, Kinaxis exits the first quarter with even more confidence in our 2026 targets," said Blaine Fitzgerald, chief financial officer at Kinaxis.
Guidance in this press release is provided to enhance visibility into Kinaxis' expectations for financial targets for the periods indicated. Please refer to the section regarding forward-looking statements that forms an integral part of this release. This press release along with the financial statements and MD&A for the quarter ended March 31, 2026 are available on Kinaxis' website and on SEDAR+ at www.sedarplus.ca.
Conference Call
Kinaxis will host a conference call tomorrow, May 7, 2026, to discuss these results. Razat Gaurav, chief executive officer, and Blaine Fitzgerald, chief financial officer, will host the call starting at 8:30 a.m. Eastern Time. A question and answer session will follow management's presentation.
DATE: Thursday, May 7, 2026
TIME: 8:30 a.m. Eastern Time
WEBCAST https://events.q4inc.com/attendee/986528748 (available for three
months)
About Kinaxis Inc.
Kinaxis is a global leader in modern supply chain planning and orchestration, powering complex global supply chains and supporting the people who manage them. Our powerful, AI-infused supply chain orchestration platform, Maestro$(TM)$, combines proprietary technologies and techniques that provide full transparency and agility across the entire supply chain -- from multi-year strategic planning to last-mile delivery. We are trusted by renowned global brands to provide the agility and predictability needed to navigate today's volatility and disruption. For more news and information, please visit kinaxis.com or follow us on LinkedIn.
Non-IFRS Measures
This press release makes reference to Adjusted Profit and Adjusted EBITDA, which are non-IFRS financial measures, as well as Adjusted EBITDA margin which expresses Adjusted EBITDA as a percentage of revenue. Adjusted Profit, Adjusted EBITDA and Adjusted EBITDA margin are not recognized, defined or standardized measures under IFRS. We use these measures to provide investors with supplemental information on our operating performance and to highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Providing these non-IFRS measures provides useful information because they portray the financial results of the Company before certain expenses that do not impact the ongoing operating decisions taken by management. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements, and to determine components of employee compensation.
Adjusted Profit represents profit adjusted to exclude our equity compensation plans. Adjusted EBITDA represents profit adjusted to exclude our equity compensation plans, income tax expense, depreciation and amortization, foreign exchange loss (gain) and net finance (income) expense. Adjusted EBITDA margin expresses Adjusted EBITDA as a percentage of revenue. Our definitions of Adjusted Profit, Adjusted EBITDA and Adjusted EBITDA margin will likely differ from those used by other companies (including our peers) and therefore comparability may be limited. Non-IFRS measures should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures. Kinaxis has reconciled Adjusted Profit and Adjusted EBITDA to the most comparable IFRS financial measure as follows:
Three months ended March 31,
------------------------------
2026 2025
-------------- --------------
(In thousands of USD)
Profit 29,420 15,913
Share-based compensation 8,620 9,347
-------------- --------------
Adjusted profit 38,040 25,260
============== ==============
Income tax expense 13,915 5,740
Depreciation and amortization 4,676 5,423
Foreign exchange (gain) (494) (914)
Net finance income (2,534) (2,366)
-------------- --------------
15,563 7,883
-------------- --------------
Adjusted EBITDA 53,603 33,143
============== ==============
Adjusted EBITDA as a percentage of
revenue 32% 25%
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements, future-oriented financial information and financial outlook within the meaning of applicable securities laws. Forward-looking statements, future-oriented financial information and financial outlook include statements as to our expectations for:
-- growth of annual total revenue, annual SaaS revenue growth, and our
expectations for Adjusted EBITDA margin achievement, in each case looking
forward for our fiscal year ending December 31, 2026;
-- SaaS growth and increased profitability in years beyond 2026; and
-- contracted revenue in future periods, including 2026, 2027 and 2028 and
later.
This release also includes forward-looking statements as to Kinaxis' growth opportunities and the potential benefits of, and markets and demand for, Kinaxis' products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis' products and services compared to competitive offerings in the industry.
In particular, our guidance for 2026 annual total revenue, annual SaaS revenue growth and annual Adjusted EBITDA margin, as well as our comments on our expectations for SaaS growth and increased profitability in years beyond 2026, are subject to certain assumptions and associated risks including:
-- our ability to win business from new customers and expand business from
existing customers;
-- the timing of new customer wins and expansion decisions by our existing
customers;
-- maintaining our customer retention levels, and specifically, that
customers will renew contractual commitments on a periodic basis as those
commitments come up for renewal, at rates consistent with our historic
experience;
-- anticipated trends, standards and challenges in our business and the
markets we operate in;
-- fluctuations in the value of foreign currencies relative to the U.S.
Dollar; and
-- with respect to Adjusted EBITDA and profitability, our ability to
contain expense levels while expanding our business.
Our guidance and commentary for achievement of contracted revenue in future periods, including in 2026, 2027 and 2028 and later, is based on assumptions and associated risks including:
-- our ability to satisfy material unperformed obligations under our
long-term contracts; and
-- the continued financial capacity and creditworthiness of our customers
under long-term contracts.
These and other assumptions, risks and uncertainties may cause Kinaxis' actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by forward-looking statements, future-oriented financial information or financial outlook. Material risks and uncertainties relating to our business are described under the headings "Forward-Looking Statements" and "Risks and Uncertainties" in our annual MD&A dated March 4, 2026, and under the heading "Risk Factors" in our Annual Information Form dated March 4, 2026, which are available at www.sedarplus.ca. Readers are cautioned that the assumptions used in the preparation of forward-looking statements, future-oriented financial information and financial outlook, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on such information. Our actual results, performance and achievements could differ materially from those expressed in, or implied by, such forward-looking statements, future-oriented financial information or financial outlook. Forward-looking statements, future-oriented financial information and financial outlook are provided to help readers understand management's expectations as at the date of this release and may not be suitable for other purposes. Readers are cautioned not to place undue reliance on forward-looking statements. Kinaxis assumes no obligation to update or revise any forward-looking statements, future-oriented financial information or financial outlook whether as a result of new information, future events or otherwise, except as expressly required by law.
SOURCE: Kinaxis Inc.
Kinaxis Inc.
Condensed Consolidated Interim Statements of Financial Position
(Expressed in thousands of USD)
March 31, December 31,
2026 2025
----------------------------------------- ----------- --------------
Assets
Current assets:
Cash and cash equivalents $ 230,129 $ 149,614
Short-term investments 97,499 175,095
Trade and other receivables 167,465 165,781
Prepaid expenses 28,082 15,743
----------------------------------------- ------- ----------
523,175 506,233
Non-current assets:
Unbilled receivables 2,637 1,596
Other receivables 1,014 1,047
Prepaid expenses 3,181 1,558
Deferred tax assets 15,703 18,225
Contract acquisition costs 40,326 37,038
Property and equipment 27,048 28,526
Right-of-use assets 43,363 43,090
Intangible assets 9,760 10,804
Goodwill 75,810 76,597
----------------------------------------- ------- ----------
218,842 218,481
$ 742,017 $ 724,714
----------------------------------------- ------- ----------
Liabilities and Shareholders' Equity
Current liabilities:
Trade payables and accrued
liabilities $ 109,021 $ 90,040
Deferred revenue 189,585 161,060
Lease obligations 6,119 5,938
----------------------------------------- ------- ----------
304,725 257,038
Non-current liabilities:
Lease obligations 41,543 42,065
Deferred tax liabilities 3,557 4,042
----------------------------------------- ------- ----------
45,100 46,107
Shareholders' equity:
Share capital 386,780 363,246
Accumulated other comprehensive
loss (2,791) (223)
Retained earnings 8,203 58,546
----------------------------------------- ------- ----------
392,192 421,569
$ 742,017 $ 724,714
----------------------------------------- ------- ----------
Kinaxis Inc.
Condensed Consolidated Interim Statements of Comprehensive Income
(Expressed in thousands of USD, except share and per share data)
Three months ended March 31,
2026 2025
---------------------------------------- ------------ ------------
Revenue $ 165,568 $ 132,788
Cost of revenue 51,552 46,249
Gross profit 114,016 86,539
Operating expenses:
Selling and marketing 29,563 28,689
Research and development 27,460 22,668
General and administrative 16,687 16,866
---------------------------------------- ------------ ------------
73,710 68,223
40,306 18,316
Other income:
Foreign exchange gain 494 914
Net finance and other income 2,535 2,423
---------------------------------------- ------------ ------------
3,029 3,337
Profit before income taxes 43,335 21,653
Income tax expense 13,915 5,740
Profit 29,420 15,913
Other comprehensive income (loss):
Items that are or may be reclassified
subsequently to profit
Foreign currency translation
differences - foreign operations (2,147) 1,077
Change in valuation of cash flow
hedges (421) 577
---------------------------------------- ------------ ------------
(2,568) 1,654
Total comprehensive income $ 26,852 $ 17,567
---------------------------------------- ------------ ------------
Basic earnings per share $ 1.06 $ 0.57
Weighted average number of basic Common
Shares 27,717,242 28,094,465
Diluted earnings per share $ 1.04 $ 0.55
Weighted average number of diluted
Common Shares 28,313,923 28,788,191
---------------------------------------- ------------ ------------
Kinaxis Inc.
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity
(Expressed in thousands of USD)
Accumulated other comprehensive income
(loss)
---------------------------------------
Currency
Share Contributed Cash flow translation Retained Total
capital surplus hedges adjustments Total earnings equity
-------------- --------- ------------- ------------ --------------- -------- --------- -----------
Balance,
December 31,
2024 $329,312 $ 12,078 $(1,203) $ (2,644) $(3,847) $ 57,968 $395,511
Profit -- -- -- -- -- 15,913 15,913
Other
comprehensive
income -- -- 577 1,077 1,654 -- 1,654
-------------- ------- -------- ------ --- ------- ------ ------- -------
Total
comprehensive
income -- -- 577 1,077 1,654 15,913 17,567
Share options
exercised 7,625 (1,805) -- -- -- -- 5,820
Restricted
share units
vested 12,828 (12,828) -- -- -- -- --
Performance
share units
vested 3,262 (3,262) -- -- -- -- --
Share-based
payments -- 8,527 -- -- -- -- 8,527
Shares
repurchased (974) (2,710) -- -- -- (12,957) (16,641)
-------------- ------- -------- ------ --- ------- ------ ------- -------
Total
shareholder
transactions 22,741 (12,078) -- -- -- (12,957) (2,294)
Balance, March
31, 2025 $352,053 $ -- $ (626) $ (1,567) $(2,193) $ 60,924 $410,784
-------------- ------- -------- ------ ------- ------ ------- -------
Balance,
December 31,
2025 363,246 -- 136 (359) (223) 58,546 421,569
Profit -- -- -- -- -- 29,420 29,420
Other
comprehensive
loss -- -- (421) (2,147) (2,568) -- (2,568)
-------------- ------- -------- ------ ------- ------ ------- -------
Total
comprehensive
income
(loss) -- -- (421) (2,147) (2,568) 29,420 26,852
Share options
exercised 12,533 (3,075) -- -- -- -- 9,458
Restricted
share units
vested 21,906 (3,902) -- -- -- (18,004) --
Performance
share units
vested 7,934 -- -- -- -- (7,934) --
Share-based
payments -- 6,977 -- -- -- -- 6,977
Shares
repurchased (8,333) -- -- -- -- (53,825) (62,158)
Change in
obligation
for share
repurchases (10,506) -- -- -- -- -- (10,506)
-------------- ------- -------- ------ --- ------- ------ ------- -------
Total
shareholder
transactions 23,534 -- -- -- -- (79,763) (56,229)
Balance, March
31, 2026 $386,780 $ -- $ (285) $ (2,506) $(2,791) $ 8,203 $392,192
-------------- ------- -------- ------ ------- ------ ------- -------
Kinaxis Inc.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in thousands of USD)
Three months ended March 31,
2026 2025
------------------------------------ ----------- -----------
Cash flows from operating activities
Profit $ 29,420 $ 15,913
Items not affecting cash:
Depreciation of property and
equipment and right-of-use
assets 3,837 4,619
Amortization of intangible
assets 839 804
Share-based payments 8,620 9,347
Net finance income (2,534) (2,366)
Income tax expense 13,915 5,740
Change in operating assets and
liabilities 6,829 13,781
Interest received 2,565 2,903
Interest paid (422) (449)
Income taxes paid (3,987) (18,645)
------------------------------------ ----------- -----------
59,082 31,647
Cash flows from (used in) investing
activities
Purchase of property and equipment (990) (1,582)
Purchase of short-term investments (25,700) (122,445)
Redemption of short-term
investments 103,577 77,564
------------------------------------ ----------- -----------
76,887 (46,463)
Cash flows used in financing
activities
Payment of lease obligations (1,500) (1,561)
Repurchase of shares (61,592) (17,388)
Proceeds from exercise of stock
options 9,458 5,820
------------------------------------ ----------- -----------
(53,634) (13,129)
Increase (decrease) in cash and cash
equivalents 82,335 (27,945)
Cash and cash equivalents, beginning
of period 149,614 172,192
Effects of exchange rates on cash
and cash equivalents (1,820) (758)
------------------------------------ ----------- -----------
Cash and cash equivalents, end of
period $ 230,129 $ 143,489
------------------------------------ ----------- -----------
View source version on businesswire.com: https://www.businesswire.com/news/home/20260506915169/en/
CONTACT: Investor Relations
Rick Wadsworth | Kinaxis
rwadsworth@kinaxis.com
613-907-7613
Media Relations
Matt Tatham | Kinaxis
mtatham@kinaxis.com
917-446-7227
(END) Dow Jones Newswires
May 06, 2026 17:00 ET (21:00 GMT)