Kinaxis Inc. Reports Second Quarter 2026 Financial Results

• SaaS revenue increased 20% year-over-year to $106.5 million
• Annual Recurring Revenue² (ARR) increased 19% year-over-year to $465.6 million
• Raises fiscal 2026 total revenue and SaaS revenue growth guidance

OTTAWA, Ontario--(BUSINESS WIRE)--Kinaxis® Inc. (TSX:KXS), a global leader in end-to-end supply chain planning and orchestration, today announced financial results for its second quarter 2026, ended June 30, 2026. All amounts are in U.S. dollars. All figures are prepared in accordance with IFRS Accounting Standards (IFRS) unless otherwise indicated.

“We delivered a strong second quarter, fueled by continued execution and customer momentum from both new and existing customers, as many of the world's largest enterprises turn to Kinaxis to manage growing demand, volatility, uncertainty, and complexity," said Razat Gaurav, Chief Executive Officer at Kinaxis. "Our performance builds on the strongest first half in Kinaxis' history and gives us the confidence to raise our full-year guidance for total revenue and SaaS revenue growth. At the same time, we're accelerating innovation in Maestro, building a composable agentic AI platform that helps customers connect data, decisions, and actions to deliver unprecedented business outcomes with operational orchestration."

Second Quarter 2026 Financial Highlights:

• Total revenue increased 16% year-over-year to $158.8 million. Total revenue included a negative impact of approximately $0.9 million from foreign currency exchange rates (FX).
• SaaS revenue increased 20% year-over-year to $106.5 million. SaaS revenue included a negative impact of approximately $0.6 million from FX.
• ARR² increased 19% year-over-year to $465.6 million. ARR² grew 21% year-over-year on a constant currency basis, excluding a negative impact of approximately $1.0 million from FX.
• Remaining performance obligations increased 18% year-over-year to $983.5 million.
• Profit of $21.2 million.
• Adjusted EBITDA¹ of $41.4 million, an increase of 23% year-over-year. Adjusted EBITDA margin¹ of 26%, a 130 basis points improvement year-over-year.
• Operating cash flow of $30.7 million.

Financial Highlights

$ USD thousands, except as otherwise indicated	Q2 2026	Q2 2025	Change
Total Revenue	158,783	136,415	16%
SaaS	106,546	88,437	20%
Subscription term licenses	5,732	5,057	13 %
Professional services	42,064	37,394	12 %
Maintenance and support	4,441	5,527	(20) %
Gross profit Margin	104,436 66%	87,531 64%	19 %
Profit Per diluted share	21,198 $0.76	18,439 $0.64	15 %
Adjusted EBITDA^1Margin	41,353 26%	33,730 25%	23 %
Cash flows from operating activities	30,711	22,566	36 %

(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.

Annual Recurring Revenue

Annual Recurring Revenue² (ARR), which includes subscription amounts related to both SaaS and on-premise contracts, increased 19% year-over-year to $465.6 million at the end of the quarter. ARR² grew 21% year-over-year on a constant currency basis, excluding a negative impact of approximately $1.0 million from FX at the end of the quarter.

$USD millions	Q2 2026	Q2 2025	Change
Annual recurring revenue^2	465.6	391.0	19 %

(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.

Remaining Performance Obligations

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 June 30, 2026. Remaining performance obligations increased 18% year-over-year to $983.5 million.

$USD millions	Remainder of 2026	2027	2028 and later	Total
SaaS	212.1	348.7	379.5	940.3
Maintenance and support	8.7	15.2	13.6	37.6
Subscription term licenses	1.9	3.4	0.3	5.6
Total	222.8	367.4	393.4	983.5

Share Repurchases:

• During the second quarter 2026, the Company spent $46.7 million to repurchase 450,251 shares of its common stock at an average price of $103.79 through open market purchases. Since the start of the share repurchase program, the Company has reduced its total outstanding share count by 2.9% as of June 30, 2026.

Innovation:

• At Kinexions North America in June, the Company shared its vision for AI-driven operational orchestration, extending its scope beyond planning and decision intelligence to help coordinate and operationalize those decisions across people, systems, and AI agents in a continuous learning loop to deliver positive business outcomes. To realize this vision, the Company is building an extensible data fabric, creating an abstracted and extensible semantic intelligence and ontology layer, developing a supply chain context graph that captures the physics of the supply chain, and providing a composable agent development studio to enable automation and orchestration. This entire extension to the platform is being designed for interoperability, extensibility, and composability.
• Introduced Forward Deployed Engineering (FDE): A new engagement model designed to help enterprises operationalize AI across their supply chains and translate decisions into measurable business outcomes. FDE reflects the Company’s broader vision for operational orchestration, an approach that coordinates signals, context, decisions, actions, and learnings across the enterprise.
• Launched Maestro Advanced Solver Studio: Allows customers and partners to extend and compose decision logic with their own heuristic, optimization, machine learning, and analytical models.
• Launched Orchestrator Agent: An agent that dynamically combines the right skills, sub-agents, data, tools, and workflows to respond to a user’s request, serving as a single-entry point.
• Launched Agent skills: Reusable operational capabilities that provide specialized workflows, business logic, and tool access for specific tasks.
• The Company has approximately 10% of its installed customer base on a paid or trial subscription to Maestro Agents as of June 30, 2026.

Recognition:

• Recognized as a Leader by ISG Supply Chain Planning Buyer's Guide 2026.
• Recognized as a Leader by ISG S&OP Buyer's Guide 2026.

Leadership Update:

• Appointed Kristin Russel as Chief Marketing Officer. Russel is a recognized marketing executive in the technology industry with more than 25 years of experience driving brand, digital, demand generation, and product and solution marketing.
• Appointed Herb Yeh as Chief Financial Officer and Chief Strategy Officer. Yeh is a corporate finance veteran bringing more than 25 years of experience working with enterprise software companies through growth, M&A, and strategic transformation.

Upcoming Investor Conferences:

• On Wednesday, August 26, 2026, the Company is scheduled to host investor meetings at the Deutsche Bank 2026 Technology Conference in Dana Point, CA.
• On Wednesday, September 9, 2026, the Company is scheduled to participate in a fireside chat discussion at the Citi 2026 Global TMT Conference in New York, NY at 12:35pm Eastern Time. A live webcast and replay will be available on the Company's Investor Relations website.
• On Thursday, September 10, 2026, the Company is scheduled to host investor meetings at the Goldman Sachs Communacopia + Technology 2026 Conference in San Francisco, CA.
• On Tuesday, September 15, 2026, the Company is scheduled to host investor meetings at the BMO 2026 TMT Conference in Toronto, Canada.

Fiscal 2026 Financial Outlook:

Based on information available as of August 5, 2026, financial guidance for fiscal 2026 is as follows:

• Raising total revenue from $620.0 million to $635.0 million to a range of $625.0 million to $640.0 million.
• Raising SaaS revenue growth from 17% to 19% year-over-year to a range of 18% to 20% year-over-year.
• Reaffirming Adjusted EBITDA¹ margin is expected to be in the range of 25% to 26%.

In addition to the above guidance, the Company is also providing fiscal 2026 FX estimates for modeling purposes. We expect FX to have a negative impact on total revenue by approximately $4.0 million to $4.5 million. We expect FX to have a negative impact on SaaS revenue by approximately $2.5 million to $3.0 million.

In addition to the above guidance, the Company is also providing fiscal 2026 weighted-average number of basic and diluted share estimates for modeling purposes. We expect basic weighted-average shares outstanding to be approximately 27.3 million shares and diluted weighted-average shares outstanding to be approximately 27.7 million shares. These share count forecasts do not include the impact of any share repurchases the Company may pursue in the future.

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 June 30, 2026, are available on Kinaxis’ website and on SEDAR+ at www.sedarplus.ca.

Conference Call Details:

Kinaxis will host a conference call tomorrow, August 6, 2026, to discuss second quarter 2026 financial results and financial outlook for fiscal 2026 at 8:30 a.m. Eastern Time. A live webcast of the conference call will be available on the Investor Relations section of Kinaxis’s website at investors.kinaxis.com where presentation materials will also be posted prior to the conference call. A replay will be available online approximately two hours following the live call for a period of 30 days.

DATE:	Thursday, August 6, 2026
TIME:	8:30 a.m. Eastern Time
WEBCAST	https://events.q4inc.com/attendee/854228135

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™, 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 June 30,		Six months ended June 30,
	2026	2025	2026	2025
	(In thousands of USD)		(In thousands of USD)
Profit	21,198	18,439	50,618	34,352
Share-based compensation	12,100	10,374	20,720	19,721
Adjusted profit	33,298	28,813	71,338	54,073
Income tax expense	7,130	3,757	21,045	9,497
Depreciation and amortization	4,568	4,982	9,244	10,405
Foreign exchange gain	(1,311)	(1,099)	(1,805)	(2,013)
Net finance income	(2,332)	(2,723)	(4,866)	(5,089)
	8,055	4,917	23,618	12,800
Adjusted EBITDA	41,353	33,730	94,956	66,873
Adjusted EBITDA as a percentage of revenue	26 %	25 %	29 %	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)
	June 30, 2026			December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	174,607		$	149,614
Short-term investments		136,132			175,095
Trade and other receivables		155,575			165,781
Prepaid expenses		24,106			15,743
		490,420			506,233
Non-current assets:
Unbilled receivables		1,322			1,596
Other receivables		1,011			1,047
Prepaid expenses		2,859			1,558
Deferred tax assets		14,926			18,225
Contract acquisition costs		40,004			37,038
Property and equipment		26,290			28,526
Right-of-use assets		40,967			43,090
Intangible assets		8,908			10,804
Goodwill		75,603			76,597
		211,890			218,481
	$	702,310		$	724,714
Liabilities and Shareholders’ Equity
Current liabilities:
Trade payables and accrued liabilities	$	78,644		$	90,040
Deferred revenue		176,912			161,060
Lease obligations		5,724			5,938
		261,280			257,038
Non-current liabilities:
Lease obligations		38,781			42,065
Deferred tax liabilities		2,705			4,042
		41,486			46,107
Shareholders’ equity:
Share capital		404,860			363,246
Accumulated other comprehensive loss		(4,575	)		(223	)
Retained earnings (accumulated deficit)		(741	)		58,546
		399,544			421,569
	$	702,310		$	724,714

Kinaxis Inc.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in thousands of USD)
		Three months ended June 30,					Six months ended June 30,
		2026			2025		2026			2025
Revenue	$	158,783		$	136,415	$	324,351		$	269,203
Cost of revenue		54,347			48,884		105,899			95,133
Gross profit		104,436			87,531		218,452			174,070
Operating expenses:
Selling and marketing		32,660			31,738		62,223			60,427
Research and development		28,481			21,896		55,941			44,564
General and administrative		18,816			15,541		35,503			32,407
		79,957			69,175		153,667			137,398
		24,479			18,356		64,785			36,672
Other income:
Foreign exchange gain		1,311			1,099		1,805			2,013
Net finance and other income		2,538			2,741		5,073			5,164
		3,849			3,840		6,878			7,177
Profit before income taxes		28,328			22,196		71,663			43,849
Income tax expense		7,130			3,757		21,045			9,497
Profit		21,198			18,439		50,618			34,352
Other comprehensive income (loss):
Items that are or may be reclassified subsequently to profit
Foreign currency translation differences - foreign operations		(1,019	)		2,933		(3,166	)		4,010
Change in valuation of cash flow hedges		(765	)		1,597		(1,186	)		2,174
		(1,784	)		4,530		(4,352	)		6,184
Total comprehensive income	$	19,414		$	22,969	$	46,266		$	40,536
Basic earnings per share	$	0.78		$	0.65	$	1.84		$	1.22
Weighted average number of basic Common Shares		27,342,857			28,270,720		27,529,016			28,183,079
Diluted earnings per share	$	0.76		$	0.64	$	1.80		$	1.19
Weighted average number of diluted Common Shares		27,841,291			28,890,916		28,086,134			28,901,030

Kinaxis Inc.
Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity
(Expressed in thousands of USD)
							Accumulated other comprehensive income (loss)
	Share capital			Contributed surplus			Cash flow hedges			Currency translation adjustments			Total			Retained earnings (Accumulated deficit)			Total equity
Balance, December 31, 2024	$	329,312		$	12,078		$	(1,203	)	$	(2,644	)	$	(3,847	)	$	57,968		$	395,511
Profit		—			—			—			—			—			34,352			34,352
Other comprehensive income		—			—			2,174			4,010			6,184			—			6,184
Total comprehensive income		—			—			2,174			4,010			6,184			34,352			40,536
Share options exercised		24,709			(5,893	)		—			—			—			—			18,816
Restricted share units vested		16,310			(16,310	)		—			—			—			—			—
Performance share units vested		3,553			(3,553	)		—			—			—			—			—
Share-based payments		—			23,230			—			—			—			—			23,230
Shares repurchased		(3,222	)		(9,552	)		—			—			—			(22,880	)		(35,654	)
Change in obligation for share repurchases		(924	)		—			—			—			—			—			(924	)
Total shareholder transactions		40,426			(12,078	)		—			—			—			(22,880	)		5,468
Balance, June 30, 2025	$	369,738		$	—		$	971		$	1,366		$	2,337		$	69,440		$	441,515
Balance, December 31, 2025		363,246			—			136			(359	)		(223	)		58,546			421,569
Profit		—			—			—			—			—			50,618			50,618
Other comprehensive loss		—			—			(1,186	)		(3,166	)		(4,352	)		—			(4,352	)
Total comprehensive income (loss)		—			—			(1,186	)		(3,166	)		(4,352	)		50,618			46,266
Share options exercised		18,064			(4,507	)		—			—			—			—			13,557
Restricted share units vested		22,338			(14,556	)		—			—			—			(7,782	)		—
Performance share units vested		8,042			—			—			—			—			(8,042	)		—
Share-based payments		—			19,063			—			—			—			—			19,063
Shares repurchased		(15,592	)		—			—			—			—			(94,081	)		(109,673	)
Change in obligation for share repurchases		8,762			—			—			—			—			—			8,762
Total shareholder transactions		41,614			—			—			—			—			(109,905	)		(68,291	)
Balance, June 30, 2026	$	404,860		$	—		$	(1,050	)	$	(3,525	)	$	(4,575	)	$	(741	)	$	399,544

Kinaxis Inc.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in thousands of USD)
		Three months ended June 30,						Six months ended June 30,
		2026			2025			2026			2025
Cash flows from operating activities
Profit	$	21,198		$	18,439		$	50,618		$	34,352
Items not affecting cash:
Depreciation of property and equipment and right-of-use assets		3,761			4,149			7,598			8,768
Amortization of intangible assets		807			833			1,646			1,637
Share-based payments		12,100			10,374			20,720			19,721
Net finance income		(2,332	)		(2,723	)		(4,866	)		(5,089	)
Income tax expense		7,130			3,757			21,045			9,497
Change in operating assets and liabilities		3,390			(5,578	)		10,219			7,177
Interest received		3,322			3,068			5,887			5,971
Interest paid		(385	)		(481	)		(807	)		(930	)
Income taxes paid		(18,280	)		(9,272	)		(22,267	)		(26,891	)
		30,711			22,566			89,793			54,213
Cash flows from (used in) investing activities
Purchase of property and equipment		(1,509	)		(2,686	)		(2,499	)		(4,268	)
Purchase of short-term investments		(134,792	)		(167,444	)		(160,492	)		(289,889	)
Redemption of short-term investments		95,603			133,045			199,180			210,609
		(40,698	)		(37,085	)		36,189			(83,548	)
Cash flows used in financing activities
Payment of lease obligations		(1,503	)		(1,382	)		(3,003	)		(2,943	)
Repurchase of shares		(46,729	)		(18,266	)		(108,321	)		(35,654	)
Proceeds from exercise of stock options		4,099			12,996			13,557			18,816
		(44,133	)		(6,652	)		(97,767	)		(19,781	)
Increase (decrease) in cash and cash equivalents		(54,120	)		(21,171	)		28,215			(49,116	)
Cash and cash equivalents, beginning of period		230,129			143,489			149,614			172,192
Effects of exchange rates on cash and cash equivalents		(1,402	)		1,436			(3,222	)		678
Cash and cash equivalents, end of period	$	174,607		$	123,754		$	174,607		$	123,754