Kneat.com, inc. (TSX: KSI) (OTCQX: KSIOF) is a leader in digitizing and automating validation and quality processes. The company recently shared its annual shareholder letter, which emphasizes its resilient growth during a challenging year for life sciences companies, along with the promising opportunities that lie ahead.
Reflecting on 2025, we extend our gratitude for your unwavering trust in Kneat. The past year highlighted the critical role our platform serves in enabling leading life sciences organizations to operate with compliance, consistency, and efficiency, all while demonstrating our strength amid macroeconomic uncertainty.
Throughout the enterprise software landscape, firms have faced delayed buying cycles, increased scrutiny over ROI, and concerns regarding the influence of artificial intelligence. Despite these challenges, Kneat achieved impressive results, with software revenue increasing by 33% and a record influx of new customers, further solidifying our market position. Since acquiring our first customer a decade ago, our land and expand strategy has organically scaled to over $74 million in Annual Recurring Revenue (ARR), supported by a commendable Net Revenue Retention (NRR) rate of 115% in 2025. The NRR decrease from 2024 mainly relates to deferred expansion deals and churn among non-strategic clients, with no churn noted to competitors and 100% retention among our core strategic customers.
Recent discussions have raised worries about potential AI substitution within SaaS; however, these concerns are least applicable in the highly regulated environments where Kneat operates. Our customers include some of the most advanced life sciences manufacturers globally, where compliance, traceability, and guaranteed data integrity are paramount. In this context, enterprise software is a trust-centric business, and Kneat has built that trust through years of proven performance, serving thousands of users within the world’s largest life sciences companies, including eight of the top ten pharmaceutical manufacturers.
Kneat is meticulously designed for rigorous validation in regulated settings. Each action within our platform is attributable, traceable, auditable, and preserved for long-term regulatory scrutiny across global authorities. This architecture, coupled with its robust data integrity, presents a significant competitive advantage that is hard for others to replicate.
In this light, AI serves not as a threat but as a valuable accelerant. The effectiveness of AI relies on structured, high-quality, audit-ready data, and Kneat provides that essential foundation as a trusted system of record. In 2025, we launched AI capabilities tailored for GxP-aligned environments, including a content review assistant, natural-language process analysis, a user-support chatbot, and instant language translation. Each capability operates within embedded governance frameworks, ensuring that AI-generated outputs meet the same standards as traditional validation processes. Our AI roadmap aims for deeper automation across lifecycle documentation, risk management, workflows, and end-to-end process optimization, all delivered with the transparency and reliability our customers demand.
Our differentiation is continually reinforcing our market position. The combination of comprehensive validation functionality, configurable zero-code workflows, and a strong data-integrity model aligned with regulatory expectations is unique. Customer feedback supports this assertion; Kneat recently achieved a 98/100 G2 Satisfaction Score, the highest in the Pharma and Biotech category, and twenty points ahead of the next vendor. We also maintain a Net Promoter Score above 70, indicative of exceptional customer advocacy. Our team has been honored with a prestigious Gold Stevie® Award for excellence in global tech support.
The record influx of new customers in 2025 reflects Kneat's reputation as the trusted standard. As life sciences organizations modernize their quality systems and responsibly integrate AI, the demand for structured, compliant, audit-ready data is sharply increasing, positioning Kneat as a vital component of their digital infrastructure.
These factors instill confidence as we move into 2026. We have a scalable business model, a growing market opportunity, and substantial expansion potential across both new and existing customers. With strategic investment, enhanced operational efficiency, and a clear trajectory toward cash-flow breakeven, we remain committed to delivering lasting value to our customers and shareholders.
Kneat Solutions equips leading companies in highly regulated industries with unmatched efficiency in validation and compliance via its digital validation platform Kneat Gx. As an industry leader in customer satisfaction, Kneat boasts an excellent track record for implementation, supported by our user-friendly design, expert assistance, and on-demand training academy. Kneat Gx is a premier digital validation platform that empowers highly regulated companies to manage any validation discipline from end to end, fully ISO 9001 and ISO 27001 certified, validated, and compliant with 21 CFR Part 11/Annex 11. Independent customer studies demonstrate that Kneat Gx can reduce man-hours associated with validation documentation by up to 50%, speed up review and approval cycles by up to 50%, and consistently uphold superior standards of regulatory compliance. For more information, visit www.kneat.com.
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