News & Updates
The latest news and updates from companies in the WLTH portfolio.
German banks examine risks of Anthropic's Mythos with authorities
FRANKFURT, April 16 (Reuters) - German banks and national authorities are examining risks around Anthropic's new artificial intelligence model, an official said on Thursday, amid concerns that it could fuel cyberattacks. Kolja Gabriel, a member of the executive board at the German Banking Association, told Reuters that the group was consulting with cyber experts at its member banks as well as Germany's finance ministry and other authorities. Anthropic's Mythos is seen by cybersecurity experts as posing significant challenges to the banking sector and its legacy technology systems, raising alarm bells among regulators in Britain and the United States. "Mythos is being used in a controlled manner by IT security firms to close potential vulnerabilities as quickly as possible. We expect a series of software updates shortly and are closely monitoring developments," Gabriel, who is responsible for technology and innovation, said in an emailed statement. The talks also involve the Bundesbank and Germany's financial watchdog BaFin. The finance ministry declined to comment, while the central bank did not immediately respond to a request for comment. BaFin said that there are regular exchanges with relevant national, European and international stakeholders. "Financial firms must be prepared for the possibility that vulnerabilities could be discovered in the near future, which would then need to be addressed promptly and quickly," BaFin said in a statement. Reuters reported on Thursday that European Central Bank supervisors are set to quiz bankers about the risks of Mythos. Anthropic has said its current iteration, Claude Mythos Preview, will not be made generally available and has instead announced Project Glasswing. It invited major tech companies, cybersecurity vendors and JPMorgan Chase, along with several dozen other organizations, to privately evaluate this model and prepare defences accordingly. (Reporting by Tom Sims; Editing by Alexander Smith)
Exclusive-Starlink Outage Hit Drone Tests, Exposing Pentagon's Growing Reliance on SpaceX
April 16 (Reuters) - Last August, U.S. Navy officials carrying out a test of unmanned vessels realized they had hit a single point of failure: Starlink. A global outage across Elon Musk's satellite network affecting millions of Starlink users had left two dozen unmanned surface vessels bobbing off the California coast, disrupting communications and halting operations for almost an hour. The incident, which involved drones intended to bolster U.S. military options in a conflict with China, was one of several Navy test disruptions linked to SpaceX's Starlink that left operators unable to connect with autonomous boats, according to internal Navy documents reviewed by Reuters and a person familiar with the matter. As SpaceX rockets toward a $2 trillion public offering this summer - expected to be the largest ever - the company has secured its position as the world's most valuable space company in part by being indispensable to the U.S. government with an array of technologies spanning satellite communications to space launches and military AI. Starlink, in particular, has proved key to crucial programs - from drones to missile tracking - with a low-earth orbit constellation of close to 10,000 satellites, a scale that provides the military with a network resilient against potential adversary attacks. But the Navy's mishaps with Starlink for its autonomous drone program, which have not been previously reported, highlight the challenges of the U.S. military's growing reliance on SpaceX and the risks it brings to the Pentagon. "If there was no Starlink, the U.S. government wouldn't have access to a global constellation of low earth orbit communications," said Clayton Swope, a deputy director of the Aerospace Security Project at the Center for Strategic and International Studies. The Pentagon did not respond to questions about the drone test or SpaceX's work with the Navy. The Pentagon's chief information officer, Kirsten Davies, said the "Department leverages multiple, robust, resilient systems for its broad network." The Navy and SpaceX did not respond to requests for comment. Despite facing growing competition from Amazon.com, which announced an $11.6 billion agreement this week to acquire satellite maker Globalstar, SpaceX remains far ahead in low-earth orbit communications. Beyond drones, SpaceX has cemented a near-monopoly for space launches and provides satellite communications with Starlink and its national security-focused constellation, Starshield, generating billions of dollars for the company. Last month, U.S. Space Force said it had reassigned its upcoming GPS launch to a SpaceX rocket for the fourth time, due to a glitch in the Vulcan rocket made by the Boeing and Lockheed Martin joint venture United Launch Alliance. WARNINGS ABOUT RELYING ON SPACEX Democratic lawmakers have warned the Pentagon about the risks of its reliance on a single company led by the world's richest man to deliver crucial national security capabilities. More recently, the Defense Department's disagreements and blacklisting of AI startup Anthropic quickly revealed how an overreliance on one AI vendor could create problems should that vendor be dropped. Reuters reported last year that Musk unexpectedly switched off Starlink access to Ukrainian troops as they sought to retake territory from Russia, denting allies' trust in the billionaire. In Taiwan, SpaceX faced criticism over concerns it was withholding satellite communications to U.S. service members based there, "possibly in breach of SpaceX's contractual obligations with the U.S. government," according to a 2024 letter sent by then-U.S. Representative Mike Gallagher to Musk, reported by Forbes at the time. SpaceX disputed the claim in a post on X. Reuters could not determine whether SpaceX has since provided Starlink service in Taiwan to U.S. service members. The Pentagon and SpaceX did not respond to questions about Taiwan. "As a matter of operational security, we do not comment on or discuss plans, operations capabilities or effects," an official said in a statement. STARLINK 'EXPOSED LIMITATIONS' SpaceX's Starlink broadband has been crucial to the Pentagon's drone program, providing connection to small unmanned maritime vessels that look like speedboats without seats, and include those made by Maryland-based BlackSea and Austin, Texas-based Saronic. In April 2025, during a series of Navy tests in California involving unmanned boats and flying drones, officials reported that Starlink struggled to provide a solid network connection due to the high data usage needed to control multiple systems, according to a Navy safety report of the tests reviewed by Reuters. "Starlink reliance exposed limitations under multiple-vehicle load," the report stated. The report also faulted issues linked to radios provided by Silvus and a network system provided by Viasat. In the weeks leading up to the global Starlink outage in August, another series of Navy tests was disrupted by intermittent connection issues with the Starlink network, Navy documents reviewed by Reuters show. The causes of the network losses were not immediately clear. Despite the setbacks, the upside of Starlink - a cheap and commercially available service - outweighs the risk of a potential outage disrupting future military operations, said Bryan Clark, an autonomous warfare expert at the Hudson Institute. "You accept those vulnerabilities because of the benefits you get from the ubiquity it provides," he said. (Reporting by David Jeans in New York; Additional reporting by Joey Roulette in Washington; Editing by Chris Sanders and Matthew Lewis)
Meet the Scope Creep Kraken
The following article was originally published on Tim O'Brien's Medium page and is being reposted here with the author's permission. If you've spent any time around AI-assisted software work, you already know the moment when the first puts a tentacle on the boat. The project begins with a real goal and, usually, a sensible one. Build the internal tool. Clean up the reporting flow. Add the missing admin screen. Then someone discovers that the model can generate a Swift application in minutes to render this on an iPhone, and the mood in the room changes. That first idea is often genuinely useful. Something that might have taken a week now takes an hour. That is part of what makes the pattern so seductive. It doesn't begin with incompetence. It begins with tool-driven momentum. The meeting continues, "Let's put the entire year's backlog into the system and see if we can get this all done in a week. Ignore the token spend limits, let's just get this done." What was a reasonable weekly release meeting has now set the stage for a rapid expansion in scope, and that's how the Scope Creep Kraken takes over. Scope creep is older than AI, of course. Software teams have been haunted by "while we're at it" long before anybody was pasting stack traces into a chat window. What AI changed was the rate of growth. In the old version of this problem, extra scope still had to fight its way through staffing constraints. Somebody had to build the feature, debug it, test it, and explain why it belonged. That friction was often the only thing standing between a focused project and an over-extended team. AI broke that. Now the extra feature often arrives with a demo attached. "Could we add multi-language support?" Forty-five seconds later, there is a branch. "What about generated documentation?" Sure, why not? "Could the CLI accept natural language commands?" The model appears optimistic, which is enough to make the whole thing sound temporarily reasonable. Each addition looks manageable in isolation. That is how the Kraken works. It does not attack all at once. It wraps around the project one small grip at a time. The part I keep seeing on teams is not reckless ambition so much as confident improvisation. People are reacting to real capability. They are not wrong to be excited that so much is suddenly possible. For a while, the Kraken even looks helpful. Output goes up. Screens appear. Branches multiply. People feel productive, and sometimes they really are productive in the narrow local sense. What gets hidden in that burst of visible progress is integration cost. Every tentacle has to be tested with every other tentacle. Every generated convenience becomes a maintenance obligation. Every small addition pulls the project a little farther from the problem it originally set out to solve. That is usually when the team realizes the Kraken is already on the boat. The original sponsor asked for a hammer and is now watching a Swiss Army knife unfold in real time, with several blades no one asked for and at least one that does not seem to fold back in properly. AI also makes it dangerously easy to confuse demonstrations with decisions. The useful response is not to become suspicious of every experiment. Some of the first tentacles are worth keeping. The response is to put the old discipline back where AI made it easy to remove. Keep a written scope. Treat additions as actual decisions rather than prompt side effects. Ask what each new feature does to testing, documentation, support, and the team's ability to explain the system six months from now. If nobody can answer those questions, the feature is not "done" just because the model produced a convincing draft. What makes the a good name is one that teams can use in the moment. Once people can say, "This is another tentacle," the conversation gets clearer. You are no longer arguing about whether the idea is clever. You are asking whether this is motivated by a requirement or a capability.
Kraken Robotics Reports 2025 Financial Results | Taiwan News | Apr. 16, 2026 18:30
ST. JOHN'S, Newfoundland and Labrador, April 16, 2026 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. ("Kraken" or the "Company") (TSX-V: PNG, OTCQB: KRKNF), announced it has filed its financial results for the fourth quarter and year ended December 31, 2025 ("Q4 2025"). Please refer to the audited consolidated financial statements of the Company for the fiscal years ended December 31, 2025 and 2024, management's discussion and analysis for the three and twelve months ended December 31, 2025 ("MD&A") and the annual information form of the Company for the year ended December 31, 2025, each filed on SEDAR+ at www.sedarplus.ca, for more information. Certain preliminary 2025 year-end results and 2026 guidance were already announced in the news release of the Company dated March 3, 2026 (the "March 3 News Release"), together with the Company's execution of 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"). The Covelya Acquisition is expected to close during the second quarter of 2026, subject to the satisfaction of customary closing conditions and receipt of required regulatory approvals. For further details on the Covelya Acquisition, please see the March 3 News Release. Unless otherwise specified, all dollar amounts in this release are denominated in Canadian dollars. KEY HIGHLIGHTS Record annual results with 2025 revenue of $102.2 million and Adjusted EBITDA1 of $25.0 million.Stronger 2025 demand for battery and Synthetic Aperture Sonar ("SAS") products, with new customers.Expanded into LiDAR services via the tuck-in acquisition of 3D at Depth, Inc. ("3D at Depth") in 2025.Product innovations include a higher energy density battery, LARS for smaller USVs and circular SAS.Increased battery manufacturing capacity with recent completion of new Nova Scotia facility.Strengthened leadership team and Board with several new executives and independent directors.Expect 2026 revenue of $165 million to $175 million and Adjusted EBITDA of $40 million to $50 million.Announced $87 million of product orders to date in 2026, with demand across all product lines.In March 2026, announced the transformational acquisition of UK-headquartered Covelya Group.Updated 2026 guidance for the combined company will be issued at closing of the Covelya Acquisition. MANAGEMENT COMMENTS "We are pleased to report another year of strong financial results, driven by significant demand for our products and services across a growing base of customers," said Greg Reid, President and CEO of Kraken. "This momentum reflects the differentiated capabilities of our subsea sensor and power technologies and the growing adoption of autonomous underwater systems in both defence and commercial applications. We are excited about the expected Q2 closing of our strategic acquisition of Covelya Group, which we believe will significantly strengthen Kraken in terms of its product offering, technological capabilities, competitive position and financial outlook. The current macro environment is characterized by rising global instability that is fueling increased defence spending and a push for national energy security. This is driving significant growth in our (and Covelya's) core growth markets. Recent conflicts in Ukraine and the Middle East have demonstrated that uncrewed systems provide transformative, asymmetric capabilities. Simultaneously, the energy sector is adopting these systems to lower costs and enhance the monitoring of remote assets. This has created a surge in demand for maritime drones, as well as counter-drone technology. As both Kraken and Covelya products enable the essential control and automation for these platforms, both our companies are securing a record number of opportunities and orders and expect this growth trajectory to continue. Looking ahead for the full year 2026, we are excited about the strong new order activity that both Kraken and Covelya have had to start the year and the massive opportunity in front of us." 2025 FINANCIAL HIGHLIGHTS Consolidated revenue in 2025 of $102.2 million compared to $91.3 million in 2024. This annual revenue growth was driven by increased demand in Kraken's SeaPower subsea batteries and SAS products, as well as strong results in the subsea services division, including the acquisition of 3D at Depth. This growth was partially offset by the decline in sonar-related product revenue due to the timing of KATFISH projects and the acquisition component of the Canadian Navy Remote Mine Disposal System ("RMDS") integration project nearing its completion. Product revenue totaled $61.7 million in 2025 compared to $66.3 million in the prior year. These results included significant revenue growth in the Company's subsea battery and SAS products respectively, which were offset by the decline in other sonar-related revenue as mentioned above. Since mid-2025, the Company added multiple new subsea battery customers, highlighting Kraken's increasing market share, the growing adoption of subsea technology, and the continued adoption of unmanned underwater vehicles ("UUVs"). Service revenue of $40.5 million in 2025 compared to $25.0 million in 2024. This growth was driven by the contribution from the 3D at Depth acquisition that was completed during the year and higher utilization of services equipment fleet. Gross profit2 for 2025 increased to $63.4 million, up from $44.7 million in 2024. The Company's gross profit margin2 improved to 62.1% in 2025, compared to 49.0% in the prior year, driven by the mix of products sold and the addition of high margin service revenue through the acquisition of 3D at Depth. Adjusted EBITDA in 2025 increased to $25.0 million, up from $20.7 million in the prior year. The Company's Adjusted EBITDA margin3 improved to 24.4%, up from 22.7% in 2024. Total assets on December 31, 2025, were $313.7 million, compared to $162.6 million on December 31, 2024. Cash as at December 31, 2025 totaled $120.5 million, up from $58.5 million as of the same date in the prior year, while working capital totaled $171.6 million as at December 31, 2025, up from $94.4 million as at the same date in the prior year. Capital expenditures/intangible assets purchased were $30.3 million in 2025, compared to $5.1 million in 2024. This increase in growth capital reflects additional investment in Kraken's current and new subsea power manufacturing facilities in addition to new marine assets to support revenue growth. The Company expects more moderated capital spending in 2026, as highlighted later in the release. Net income for 2025 was $2.9 million compared to $20.1 million in the prior year. Annual results in 2024 included a deferred tax recovery benefit of $9.7 million. The Company's results for 2025 also included $5.0 million of restructuring and acquisition related expenses. Diluted earnings per share were $0.01 in 2025 compared to $0.09 per share in the prior year. Q4 2025 FINANCIAL HIGHLIGHTS Consolidated revenue for the quarter was flat at $28.4 million, compared to $28.1 million for the quarter ending December 31, 2024. Growth in SeaPower subsea batteries, SAS, and subsea services were offset by lower revenue associated with the RMDS project. Product revenue in the quarter totaled $17.8 million, down slightly from $18.6 million in the prior year, while service revenue increased to $10.6 million, up slightly from $9.6 million in the prior year. Quarterly revenues and year-over-year comparisons can fluctuate significantly due to the timing of product orders and shipments in addition to seasonality in the offshore services business. Gross profit increased to $20.0 million, up from $13.5 million in the prior year. Gross profit margins during the quarter equated to 70.4%, up from 48.0% in the prior year, driven by lower-than-expected material costs relating to a certain project. Adjusted EBITDA increased to $9.5 million in the quarter, up from $7.0 million in the prior year. These results generated an Adjusted EBITDA margin of 33.5% in Q4 2025, up from 25.0% in the prior year. OTHER COMPANY HIGHLIGHTS Kraken expanded its battery manufacturing capacity during the past year with the construction of a new facility in Nova Scotia. This new facility provides over 60,000 square feet of office and production space. Combined with the Company's original facility in Germany, Kraken will be well positioned to meet the growing demand expected for subsea power systems to the rapidly growing unmanned underwater vehicles market. The Company continued to innovate and develop next generation products and technologies during 2025. These products include a new higher energy density battery design for large and XL-UUVs with an approximately 30% improvement in energy density compared to its previous design, a new compact battery design that will be introduced in 2026 to target smaller and medium sized vehicles, a new KATFISH Unmanned Surface Vessel ("USV") Launch and Recovery System ("LARS") to target smaller sized vessels, in addition to a dual frequency circular SAS ("C-SAS") that provides a 360 degree azimuth of the seabed, allowing for higher fidelity imagery for detection, classification, and plausible identification of objects from a single payload. The Company also strengthened and expanded the composition of its Board with three new directors, including the addition Kim Butler and Kristin Robertson in 2025 as well as Don Robertson in 2026. Combined, these directors bring a breadth of expertise across finance, operations, risk management, capital markets, strategy, maritime defence, and corporate governance. Effective April 16, 2026, Peter Hunter will be stepping down as Chairman of the Board due to personal reasons. Peter will remain on the Company's Board as an independent director. Shaun McEwan, a seasoned executive with over 30 years of technology, manufacturing and defence experience, has been appointed by the Board as its next Chairman. Shaun has served as a director on Kraken's Board since 2016. The Company and its Board express its appreciation to Mr. Hunter for his guidance, commitment and leadership during his tenure as Chairman, and congratulates Mr. McEwan in his new role. Since year-end 2024, Kraken has made numerous additions to its leadership team as part of the Company's long-term growth strategy. As previously announced, the additions to the Company's executive team include Bernard Mills as Executive Vice President Defence, Terra Penrose as Chief People Officer and John Salama as Chief Information Officer. Kraken is also pleased to announce the recent hiring of Scott Peak as Vice President Business Development. Scott will be based in Australia and will support Kraken's growth initiatives in the Asia Pacific region having previously worked at Ultra Maritime, Thales Australia, and the Royal Australian Navy. Due to organizational restructuring effective April 10, 2026, Lynne Adu, Kraken's Chief Commercial Officer ("CCO") is no longer with the organization. The Company determined that the CCO role is no longer required following a review of its commercial operations and strategic priorities. The Company is grateful to Lynne for her valuable contributions and wishes for her success in her future endeavors. Euan Tait, who was previously Chief Operating Officer at 3D at Depth, has been appointed Managing Director of Kraken's Service business. During first quarter 2026, Kraken announced the strategic Covelya Acquisition. This accretive acquisition is expected to position the Company 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. 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. 2026 ORDERS - KRAKEN & COVELYA Since January 2026, Kraken has announced $87 million of product orders for its SeaPower subsea batteries, KATFISH towed SAS, and Kraken SAS predominantly to defence customers. These orders include approximately $28 million of new orders as separately announced on April 16, 2026. During first quarter 2026, Covelya has also seen solid order intake with total new orders of approximately $135 million from various defence and commercial customers. Covelya saw some significant orders for navigation and positioning equipment within Sonardyne International Limited, and for its Sentinel Intruder Detection system and Vigilant Forward Looking Sonar (FLS) within Wavefront Systems Limited. 2026 FINANCIAL GUIDANCE As previously announced in the March 3 News Release, Kraken expects revenue in 2026 to be between $165 million and $175 million and Adjusted EBITDA4 to be between $40 million to $50 million, excluding any contribution from the Covelya Acquisition. The midpoint of guidance represents over 65% revenue growth and 80% Adjusted EBITDA growth in comparison to the prior year. The Company's strong outlook for 2026 is driven by both existing and expected purchase orders. It is also supported by expected growth in the commercial services business, including a full year contribution from LiDAR services, formerly 3D at Depth. Consistent with prior years, revenue in 2026 is expected to be weighted toward the second half of the year. Capital expenditures in 2026 are expected to range from $15 million to $18 million, down significantly from the prior year, given the completion of the new battery manufacturing facility. A summary table of the Company's 2026 guidance range and a comparison to 2025 results is provided below. Kraken plans to release updated 2026 guidance for the combined company upon closing of the Covelya Acquisition. ($ 000s)Actual2026 Guidance Range Implied Change 2025LowHighLowHighConsolidated Revenue$102,210$165,000$175,00061%71%Adjusted EBITDA4$24,963$40,000$50,00060%100%Adjusted EBITDA Margin424%24%29%-500 bpsCapital Expenditures/Intangible Assets$30,294$15,000$18,000(50%)(41%) CONFERENCE CALL DETAILS Kraken management will host a conference call today, April 16, 2026, starting at 8:30 a.m. ET to discuss the financial results. Participants can listen to this event at the webcast details below, or by dialing 1-833-752-3301 (North America) or 1-647-846-2734 (International) for operator assistance. A recording will also be made available following the call. Webcast Details: https://event.choruscall.com/mediaframe/webcast.html?webcastid=sLXYSQ25 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, 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. ($ 000s)Q4 2025Q4 202420252024Net income5413,6742,86020,089Income tax1,829(8,549)3,266(8,061)Financing costs8808523,5352,435Interest income(774)(688)(2,202)(688)Foreign exchange loss/(gain)1,049(369)1,09643Loss / (gain) on disposal of assets---(3)Share-based compensation6204472,342948Depreciation and amortization2,7651,4989,0785,726EBITDA - excluding restructuring and acquisition costs6,4147,29919,97520,923Restructuring and acquisition costs3,1021554,988212Adjusted EBITDA9,5167,02024,96320,711Adjusted EBITDA Margin34%25%24%23% Gross profit is defined as revenue less cost of total sales. Gross profit margin is defined as gross margin dividend by total sales. ($ 000s)Q4 2025Q4 202420252024Revenue28,39428,109102,21091,292Cost of Sales8,40814,62738,76546,600Gross profit19,98613,48263,44544,692Gross profit margin70%48%62%49% Figure 1: Kraken Robotics SeaPower batteries emerging from a pressure test system. 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 Robotics 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 during 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; 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, 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, and the OTCQB has neither approved nor disapproved the contents of this press 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 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/8062ec4f-e334-40a9-90bd-cfe1274999d4
Tesla leans on Elon Musk's SpaceX to buoy sagging Cybertruck sales- Moneycontrol.com
Nearly 20% of Cybertruck sales went to Musk's own companiesCybertruck demand falters; sales -51% without Musk firmsTesla sales slump amid rising competitive pressure Sales of Tesla Inc.'s Cybertruck have been propped up in recent months by Elon Musk's other companies, an unusual arrangement that further indicates the polarizing pickup is failing to appeal to everyday buyers. SpaceX, the Musk-led rocket and satellite maker, accounted for 1,279 -- or more than 18% -- of the 7,071 Cybertrucks registered in the US during the fourth quarter, according to registration data that S&P Global Mobility provided to Bloomberg News. The billionaire's other ventures acquired another 60 vehicles during those months. That means almost one in every five Cybertrucks registered during the period were delivered from one part of Musk's sprawling business empire to another. And the purchases, likely exceeding $100 million in value, have continued into this year. The figures reinforce the extent to which consumer demand is faltering only two years after Tesla began delivering the electric pickup. Without those sales to other Musk-run companies -- which included xAI, Boring Co. and Neuralink, in addition to SpaceX -- Cybertruck registrations in the fourth quarter would have fallen 51%. "Tesla is running out of buyers for the Cybertruck," said Sam Fiorani, vice president of global vehicle forecasting for advisory firm AutoForecast Solutions. Tesla, Musk, SpaceX, Boring and Neuralink didn't respond to requests for comment. SpaceX acquired xAI in February. Tesla is under increasing pressure to reverse slumping sales across its lineup as it faces the prospect of a third straight annual decline. Once the undisputed electric vehicle leader, the company was surpassed by China's BYD Co. as the world's top seller of EVs last year. Investors have largely overlooked Tesla's declining auto sales as Musk reorients the company around futuristic pursuits including robotaxis and humanoid robots. But those products are still a ways off from becoming tangible business lines, and shareholders' patience appears to be wearing thin. Since hitting a record high in mid-December, Tesla's stock has lost a fifth of its value. High Hopes The Cybertruck debuted with great fanfare in late 2023, diversifying Tesla's lineup as a rugged bruiser of a vehicle to counter the sleek Model Y SUV and Model 3 sedan that account for the vast majority of the company's auto sales. Tesla was keen to compete in the lucrative US pickup market dominated by Ford Motor Co., General Motors Co. and Stellantis NV. Musk predicted before the launch that the company would be churning out 250,000 Cybertrucks annually by 2025. He's called it the best product Tesla has ever made. From the outset, however, there were red flags. The Cybertruck's angular design was divisive, and the attention-grabbing vehicle occasionally became the target of ridicule and vandalism when a backlash against Musk swelled last year. The truck was also more expensive than expected, with initial versions fetching more than $100,000, far more than the under-$40,000 starting price tag first touted in 2019. The first Cybertruck registrations by SpaceX began in October of last year, according to S&P Global Mobility data. The sales to Musk-run companies have continued into 2026, with another 158 in January and 67 in February. While the financial terms of the inter-company sales haven't been disclosed, the Cybertruck's current starting price of around $70,000 suggests that SpaceX, xAI, Boring and Neuralink have paid Tesla more than $100 million combined for the vehicles. It's not entirely clear what Musk's other companies are doing with the Cybertrucks, or why an artificial intelligence and social media company would acquire 50 of them. Photos and videos have circulated online showing long rows of idle Cybertrucks on SpaceX property in Texas. The lead engineer for the pickup posted on social media in October that SpaceX was replacing gas-powered support vehicles with trucks. At least some are being used as security vehicles. EV news outlet Electrek reported in December that SpaceX could ultimately buy about 2,000 Cybertrucks. While Tesla has given no indication that it would discontinue the Cybertruck, it's phasing out the slow-selling Model X SUV and Model S sedan, its two oldest vehicles. Musk has indicated the company may look to boost fleet sales to commercial customers in response to questions about Cybertruck's murky prospects. "There's obviously a market there for cargo delivery," he said in January during a Tesla earnings call. "There's a lot of cargo that needs to move locally within a city, and an autonomous Cybertruck could be very useful for that." Pickup Letdown The sales woes aren't entirely unique to Cybertruck: electric pickups have been a bust within the broadly stalled US EV market. Ford recently decided to convert its electric F-150 Lightning pickup to an extended-range hybrid vehicle. The Cybertruck was still the top-selling battery-powered truck in the US during the first quarter, despite a 45% drop, according to Cox Automotive data. Musk's companies have long been intertwined through financial investments, business agreements and sometimes even shared personnel. XAI uses Tesla Megapack batteries and has integrated its Grok chatbot into Tesla vehicles; Las Vegas conference-goers can ride in Teslas through a Boring-built tunnel; Tesla and SpaceX are collaborating on a planned chip production project. Still, it's unusual for an automaker to unload significant volumes of a single model to an affiliated business with the same CEO. Car manufacturers will sometimes offer new incentives, lower prices or lease vehicles to employees when a model isn't selling well. "It's a way of keeping the plant running when retail demand does not equal production," said Tom Libby, an automotive analyst at S&P Global Mobility.
German banks examine risks of Anthropic's AI model Mythos | News.az
The model, known as Mythos, has drawn attention from cybersecurity experts who warn it could pose challenges for the banking sector, particularly for institutions relying on legacy systems, News.Az reports, citing Reuters. According to Kolja Gabriel of the German Banking Association, discussions are underway with cyber specialists at member banks as well as with Germany's finance ministry and other authorities. Regulators warned that financial institutions must be ready to respond quickly if new security weaknesses are identified. Meanwhile, IT security firms are testing the model in controlled environments to help identify and fix potential risks. Anthropic has said its current version, Claude Mythos Preview, will not be publicly released and is instead being evaluated privately by selected organizations, including major tech firms and JPMorgan Chase, to strengthen defenses against emerging threats.
Exclusive-Starlink outage hit drone tests, exposing Pentagon's growing reliance on SpaceX
Add Yahoo as a preferred source to see more of our stories on Google. April 16 (Reuters) - Last August, U.S. Navy officials carrying out a test of unmanned vessels realized they had hit a single point of failure: Starlink. A global outage across Elon Musk's satellite network affecting millions of Starlink users had left two dozen unmanned surface vessels bobbing off the California coast, disrupting communications and halting operations for almost an hour. The incident, which involved drones intended to bolster U.S. military options in a conflict with China, was one of several Navy test disruptions linked to SpaceX's Starlink that left operators unable to connect with autonomous boats, according to internal Navy documents reviewed by Reuters and a person familiar with the matter. As SpaceX rockets toward a $2 trillion public offering this summer - expected to be the largest ever - the company has secured its position as the world's most valuable space company in part by being indispensable to the U.S. government with an array of technologies spanning satellite communications to space launches and military AI. Starlink, in particular, has proved key to crucial programs - from drones to missile tracking - with a low-earth orbit constellation of close to 10,000 satellites, a scale that provides the military with a network resilient against potential adversary attacks. But the Navy's mishaps with Starlink for its autonomous drone program, which have not been previously reported, highlight the challenges of the U.S. military's growing reliance on SpaceX and the risks it brings to the Pentagon. "If there was no Starlink, the U.S. government wouldn't have access to a global constellation of low earth orbit communications," said Clayton Swope, a deputy director of the Aerospace Security Project at the Center for Strategic and International Studies. The Pentagon did not respond to questions about the drone test or SpaceX's work with the Navy. The Pentagon's chief information officer, Kirsten Davies, said the "Department leverages multiple, robust, resilient systems for its broad network." The Navy and SpaceX did not respond to requests for comment. Despite facing growing competition from Amazon.com, which announced an $11.6 billion agreement this week to acquire satellite maker Globalstar, SpaceX remains far ahead in low-earth orbit communications. Beyond drones, SpaceX has cemented a near-monopoly for space launches and provides satellite communications with Starlink and its national security-focused constellation, Starshield, generating billions of dollars for the company. Last month, U.S. Space Force said it had reassigned its upcoming GPS launch to a SpaceX rocket for the fourth time, due to a glitch in the Vulcan rocket made by the Boeing and Lockheed Martin joint venture United Launch Alliance. WARNINGS ABOUT RELYING ON SPACEX Democratic lawmakers have warned the Pentagon about the risks of its reliance on a single company led by the world's richest man to deliver crucial national security capabilities. More recently, the Defense Department's disagreements and blacklisting of AI startup Anthropic quickly revealed how an overreliance on one AI vendor could create problems should that vendor be dropped. Reuters reported last year that Musk unexpectedly switched off Starlink access to Ukrainian troops as they sought to retake territory from Russia, denting allies' trust in the billionaire. In Taiwan, SpaceX faced criticism over concerns it was withholding satellite communications to U.S. service members based there, "possibly in breach of SpaceX's contractual obligations with the U.S. government," according to a 2024 letter sent by then-U.S. Representative Mike Gallagher to Musk, reported by Forbes at the time. SpaceX disputed the claim in a post on X. Reuters could not determine whether SpaceX has since provided Starlink service in Taiwan to U.S. service members. The Pentagon and SpaceX did not respond to questions about Taiwan. "As a matter of operational security, we do not comment on or discuss plans, operations capabilities or effects," an official said in a statement. STARLINK 'EXPOSED LIMITATIONS' SpaceX's Starlink broadband has been crucial to the Pentagon's drone program, providing connection to small unmanned maritime vessels that look like speedboats without seats, and include those made by Maryland-based BlackSea and Austin, Texas-based Saronic. In April 2025, during a series of Navy tests in California involving unmanned boats and flying drones, officials reported that Starlink struggled to provide a solid network connection due to the high data usage needed to control multiple systems, according to a Navy safety report of the tests reviewed by Reuters. "Starlink reliance exposed limitations under multiple-vehicle load," the report stated. The report also faulted issues linked to radios provided by Silvus and a network system provided by Viasat. In the weeks leading up to the global Starlink outage in August, another series of Navy tests was disrupted by intermittent connection issues with the Starlink network, Navy documents reviewed by Reuters show. The causes of the network losses were not immediately clear. Despite the setbacks, the upside of Starlink - a cheap and commercially available service - outweighs the risk of a potential outage disrupting future military operations, said Bryan Clark, an autonomous warfare expert at the Hudson Institute. "You accept those vulnerabilities because of the benefits you get from the ubiquity it provides," he said. (Reporting by David Jeans in New York; Additional reporting by Joey Roulette in Washington; Editing by Chris Sanders and Matthew Lewis)
Kraken Robotics Reports 2025 Financial Results
ST. JOHN'S, Newfoundland and Labrador, April 16, 2026 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. ("Kraken" or the "Company") (TSX-V: PNG, OTCQB: KRKNF), announced it has filed its financial results for the fourth quarter and year ended December 31, 2025 ("Q4 2025"). Please refer to the audited consolidated financial statements of the Company for the fiscal years ended December 31, 2025 and 2024, management's discussion and analysis for the three and twelve months ended December 31, 2025 ("MD&A") and the annual information form of the Company for the year ended December 31, 2025, each filed on SEDAR+ at www.sedarplus.ca, for more information. Certain preliminary 2025 year-end results and 2026 guidance were already announced in the news release of the Company dated March 3, 2026 (the "March 3 News Release"), together with the Company's execution of 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"). The Covelya Acquisition is expected to close during the second quarter of 2026, subject to the satisfaction of customary closing conditions and receipt of required regulatory approvals. For further details on the Covelya Acquisition, please see the March 3 News Release. Unless otherwise specified, all dollar amounts in this release are denominated in Canadian dollars. KEY HIGHLIGHTS * Record annual results with 2025 revenue of $102.2 million and Adjusted EBITDA1 of $25.0 million. * Stronger 2025 demand for battery and Synthetic Aperture Sonar ("SAS") products, with new customers. * Expanded into LiDAR services via the tuck-in acquisition of 3D at Depth, Inc. ("3D at Depth") in 2025. * Product innovations include a higher energy density battery, LARS for smaller USVs and circular SAS. * Increased battery manufacturing capacity with recent completion of new Nova Scotia facility. * Strengthened leadership team and Board with several new executives and independent directors. * Expect 2026 revenue of $165 million to $175 million and Adjusted EBITDA of $40 million to $50 million. * Announced $87 million of product orders to date in 2026, with demand across all product lines. * In March 2026, announced the transformational acquisition of UK-headquartered Covelya Group. * Updated 2026 guidance for the combined company will be issued at closing of the Covelya Acquisition.MANAGEMENT COMMENTS "We are pleased to report another year of strong financial results, driven by significant demand for our products and services across a growing base of customers," said Greg Reid, President and CEO of Kraken. "This momentum reflects the differentiated capabilities of our subsea sensor and power technologies and the growing adoption of autonomous underwater systems in both defence and commercial applications. We are excited about the expected Q2 closing of our strategic acquisition of Covelya Group, which we believe will significantly strengthen Kraken in terms of its product offering, technological capabilities, competitive position and financial outlook. Advertisement The current macro environment is characterized by rising global instability that is fueling increased defence spending and a push for national energy security. This is driving significant growth in our (and Covelya's) core growth markets. Recent conflicts in Ukraine and the Middle East have demonstrated that uncrewed systems provide transformative, asymmetric capabilities. Simultaneously, the energy sector is adopting these systems to lower costs and enhance the monitoring of remote assets. This has created a surge in demand for maritime drones, as well as counter-drone technology. As both Kraken and Covelya products enable the essential control and automation for these platforms, both our companies are securing a record number of opportunities and orders and expect this growth trajectory to continue. Looking ahead for the full year 2026, we are excited about the strong new order activity that both Kraken and Covelya have had to start the year and the massive opportunity in front of us." 2025 FINANCIAL HIGHLIGHTS * Consolidated revenue in 2025 of $102.2 million compared to $91.3 million in 2024. This annual revenue growth was driven by increased demand in Kraken's SeaPower subsea batteries and SAS products, as well as strong results in the subsea services division, including the acquisition of 3D at Depth. This growth was partially offset by the decline in sonar-related product revenue due to the timing of KATFISH projects and the acquisition component of the Canadian Navy Remote Mine Disposal System ("RMDS") integration project nearing its completion. * Product revenue totaled $61.7 million in 2025 compared to $66.3 million in the prior year. These results included significant revenue growth in the Company's subsea battery and SAS products respectively, which were offset by the decline in other sonar-related revenue as mentioned above. Since mid-2025, the Company added multiple new subsea battery customers, highlighting Kraken's increasing market share, the growing adoption of subsea technology, and the continued adoption of unmanned underwater vehicles ("UUVs"). * Service revenue of $40.5 million in 2025 compared to $25.0 million in 2024. This growth was driven by the contribution from the 3D at Depth acquisition that was completed during the year and higher utilization of services equipment fleet. * Gross profit2 for 2025 increased to $63.4 million, up from $44.7 million in 2024. The Company's gross profit margin2 improved to 62.1% in 2025, compared to 49.0% in the prior year, driven by the mix of products sold and the addition of high margin service revenue through the acquisition of 3D at Depth. * Adjusted EBITDA in 2025 increased to $25.0 million, up from $20.7 million in the prior year. The Company's Adjusted EBITDA margin3 improved to 24.4%, up from 22.7% in 2024. * Total assets on December 31, 2025, were $313.7 million, compared to $162.6 million on December 31, 2024. Cash as at December 31, 2025 totaled $120.5 million, up from $58.5 million as of the same date in the prior year, while working capital totaled $171.6 million as at December 31, 2025, up from $94.4 million as at the same date in the prior year. * Capital expenditures/intangible assets purchased were $30.3 million in 2025, compared to $5.1 million in 2024. This increase in growth capital reflects additional investment in Kraken's current and new subsea power manufacturing facilities in addition to new marine assets to support revenue growth. The Company expects more moderated capital spending in 2026, as highlighted later in the release. * Net income for 2025 was $2.9 million compared to $20.1 million in the prior year. Annual results in 2024 included a deferred tax recovery benefit of $9.7 million. The Company's results for 2025 also included $5.0 million of restructuring and acquisition related expenses. Diluted earnings per share were $0.01 in 2025 compared to $0.09 per share in the prior year.Q4 2025 FINANCIAL HIGHLIGHTS Advertisement * Consolidated revenue for the quarter was flat at $28.4 million, compared to $28.1 million for the quarter ending December 31, 2024. Growth in SeaPower subsea batteries, SAS, and subsea services were offset by lower revenue associated with the RMDS project. * Product revenue in the quarter totaled $17.8 million, down slightly from $18.6 million in the prior year, while service revenue increased to $10.6 million, up slightly from $9.6 million in the prior year. Quarterly revenues and year-over-year comparisons can fluctuate significantly due to the timing of product orders and shipments in addition to seasonality in the offshore services business. * Gross profit increased to $20.0 million, up from $13.5 million in the prior year. Gross profit margins during the quarter equated to 70.4%, up from 48.0% in the prior year, driven by lower-than-expected material costs relating to a certain project. * Adjusted EBITDA increased to $9.5 million in the quarter, up from $7.0 million in the prior year. These results generated an Adjusted EBITDA margin of 33.5% in Q4 2025, up from 25.0% in the prior year.OTHER COMPANY HIGHLIGHTS * Kraken expanded its battery manufacturing capacity during the past year with the construction of a new facility in Nova Scotia. This new facility provides over 60,000 square feet of office and production space. Combined with the Company's original facility in Germany, Kraken will be well positioned to meet the growing demand expected for subsea power systems to the rapidly growing unmanned underwater vehicles market. * The Company continued to innovate and develop next generation products and technologies during 2025. These products include a new higher energy density battery design for large and XL-UUVs with an approximately 30% improvement in energy density compared to its previous design, a new compact battery design that will be introduced in 2026 to target smaller and medium sized vehicles, a new KATFISH Unmanned Surface Vessel ("USV") Launch and Recovery System ("LARS") to target smaller sized vessels, in addition to a dual frequency circular SAS ("C-SAS") that provides a 360 degree azimuth of the seabed, allowing for higher fidelity imagery for detection, classification, and plausible identification of objects from a single payload. * The Company also strengthened and expanded the composition of its Board with three new directors, including the addition Kim Butler and Kristin Robertson in 2025 as well as Don Robertson in 2026. Combined, these directors bring a breadth of expertise across finance, operations, risk management, capital markets, strategy, maritime defence, and corporate governance. * Effective April 16, 2026, Peter Hunter will be stepping down as Chairman of the Board due to personal reasons. Peter will remain on the Company's Board as an independent director. Shaun McEwan, a seasoned executive with over 30 years of technology, manufacturing and defence experience, has been appointed by the Board as its next Chairman. Shaun has served as a director on Kraken's Board since 2016. The Company and its Board express its appreciation to Mr. Hunter for his guidance, commitment and leadership during his tenure as Chairman, and congratulates Mr. McEwan in his new role. * Since year-end 2024, Kraken has made numerous additions to its leadership team as part of the Company's long-term growth strategy. As previously announced, the additions to the Company's executive team include Bernard Mills as Executive Vice President Defence, Terra Penrose as Chief People Officer and John Salama as Chief Information Officer. Kraken is also pleased to announce the recent hiring of Scott Peak as Vice President Business Development. Scott will be based in Australia and will support Kraken's growth initiatives in the Asia Pacific region having previously worked at Ultra Maritime, Thales Australia, and the Royal Australian Navy. * Due to organizational restructuring effective April 10, 2026, Lynne Adu, Kraken's Chief Commercial Officer ("CCO") is no longer with the organization. The Company determined that the CCO role is no longer required following a review of its commercial operations and strategic priorities. The Company is grateful to Lynne for her valuable contributions and wishes for her success in her future endeavors. Euan Tait, who was previously Chief Operating Officer at 3D at Depth, has been appointed Managing Director of Kraken's Service business. * During first quarter 2026, Kraken announced the strategic Covelya Acquisition. This accretive acquisition is expected to position the Company 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. 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, 2026.2026 ORDERS - KRAKEN & COVELYA * Since January 2026, Kraken has announced $87 million of product orders for its SeaPower subsea batteries, KATFISH towed SAS, and Kraken SAS predominantly to defence customers. These orders include approximately $28 million of new orders as separately announced on April 16, 2026. * During first quarter 2026, Covelya has also seen solid order intake with total new orders of approximately $135 million from various defence and commercial customers. Covelya saw some significant orders for navigation and positioning equipment within Sonardyne International Limited, and for its Sentinel Intruder Detection system and Vigilant Forward Looking Sonar (FLS) within Wavefront Systems Limited.2026 FINANCIAL GUIDANCE As previously announced in the March 3 News Release, Kraken expects revenue in 2026 to be between $165 million and $175 million and Adjusted EBITDA4 to be between $40 million to $50 million, excluding any contribution from the Covelya Acquisition. The midpoint of guidance represents over 65% revenue growth and 80% Adjusted EBITDA growth in comparison to the prior year. The Company's strong outlook for 2026 is driven by both existing and expected purchase orders. It is also supported by expected growth in the commercial services business, including a full year contribution from LiDAR services, formerly 3D at Depth. Consistent with prior years, revenue in 2026 is expected to be weighted toward the second half of the year. Capital expenditures in 2026 are expected to range from $15 million to $18 million, down significantly from the prior year, given the completion of the new battery manufacturing facility. A summary table of the Company's 2026 guidance range and a comparison to 2025 results is provided below. Kraken plans to release updated 2026 guidance for the combined company upon closing of the Covelya Acquisition. ($ 000s)Actual2026 Guidance Range Implied Change 2025LowHighLowHighConsolidated Revenue$102,210$165,000$175,00061%71%Adjusted EBITDA4$24,963$40,000$50,00060%100%Adjusted EBITDA Margin424%24%29%-500 bpsCapital Expenditures/Intangible Assets$30,294$15,000$18,000(50%)(41%) CONFERENCE CALL DETAILS Kraken management will host a conference call today, April 16, 2026, starting at 8:30 a.m. ET to discuss the financial results. Participants can listen to this event at the webcast details below, or by dialing 1-833-752-3301 (North America) or 1-647-846-2734 (International) for operator assistance. A recording will also be made available following the call. Webcast Details: https://event.choruscall.com/mediaframe/webcast.html?webcastid=sLXYSQ25 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, 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. ($ 000s)Q4 2025Q4 202420252024Net income5413,6742,86020,089Income tax1,829(8,549)3,266(8,061)Financing costs8808523,5352,435Interest income(774)(688)(2,202)(688)Foreign exchange loss/(gain)1,049(369)1,09643Loss / (gain) on disposal of assets---(3)Share-based compensation6204472,342948Depreciation and amortization2,7651,4989,0785,726EBITDA - excluding restructuring and acquisition costs6,4147,29919,97520,923Restructuring and acquisition costs3,1021554,988212Adjusted EBITDA9,5167,02024,96320,711Adjusted EBITDA Margin34%25%24%23% Gross profit is defined as revenue less cost of total sales. Gross profit margin is defined as gross margin dividend by total sales. ($ 000s)Q4 2025Q4 202420252024Revenue28,39428,109102,21091,292Cost of Sales8,40814,62738,76546,600Gross profit19,98613,48263,44544,692Gross profit margin70%48%62%49% Figure 1: Kraken Robotics SeaPower batteries emerging from a pressure test system. 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 Robotics 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 during 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; 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, 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, and the OTCQB has neither approved nor disapproved the contents of this press 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 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/8062ec4f-e334-40a9-90bd-cfe1274999d4
Kraken Robotics Announces $28 Million in SeaPower Battery and Kraken SAS Orders
ST. JOHN'S, Newfoundland and Labrador, April 16, 2026 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. ("Kraken" or the "Company") (TSX-V: PNG, OTCQB: KRKNF) announces approximately $28 million in new orders to five clients including two new customers for its SeaPower™ batteries and Synthetic Aperture Sonar (SAS). "These orders include battery contracts from three large international defence companies and a SAS order from a new commercial uncrewed underwater vehicle (UUV) manufacturer," said Greg Reid, President and CEO of Kraken Robotics. "Our products are now integrated or being integrated into more than 30 different UUV platform types worldwide." Figure 1: Kraken Robotics synthetic aperture sonar image of an offshore oil and gas production field. Get the latest news delivered to your inbox Sign up for The Manila Times newsletters By signing up with an email address, I acknowledge that I have read and agree to the Terms of Service and Privacy Policy. 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. Advertisement 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 Robotics 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 Limited (the "Acquisition"), a leading international provider of mission-critical underwater technology solutions operating through its subsidiary companies: Sonardyne International Ltd., EIVA A/S, Forcys Ltd., Wavefront Systems Ltd., Voyis Imaging Inc., and Chelsea Technologies Ltd. The Acquisition is expected to close during the second quarter of 2026, subject to the satisfaction of customary conditions and regulatory approvals. LINKS: Advertisement www.krakenrobotics.com SOCIAL MEDIA: LinkedIn www.linkedin.com/company/krakenrobotics Twitter www.twitter.com/krakenrobotics Advertisement Facebook www.facebook.com/krakenroboticsinc YouTube www.youtube.com/channel/UCEMyaMQnneTeIr71HYgrT2A Instagram www.instagram.com/krakenrobotics Certain information in this news release constitutes 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, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. 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 and other factors set out in the Company's public disclosure documents. 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 such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such 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. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Advertisement Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the OTCQB has neither approved nor disapproved the contents of this press release. For further information: Erica Hasenfus, Director of Global Marketing [email protected] Advertisement Shant Madian, Director of Capital Markets [email protected] Kraken Robotics Inc. +1 709-757-5757 Advertisement [email protected] A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/87a1d8ac-4b17-4fc1-b613-a0b14d4d8d4e
Kraken Robotics wins $28M subsea battery and sonar orders (KRKNF:OTCMKTS)
* Kraken Robotics (KRKNF) said it has received ~$28M in new orders for its SeaPower batteries and synthetic aperture sonar system. * "These orders include battery contracts from three large international defence companies and a SAS order from a new commercial uncrewed underwater vehicle (UUV) manufacturer," said Greg Reid, President and CEO of Kraken Robotics. More on Kraken Robotics Inc.
Kraken Robotics Reports 2025 Financial Results - Kraken Robotics (OTC:KRKNF)
2026 ORDERS - KRAKEN & COVELYA 2026 FINANCIAL GUIDANCE As previously announced in the March 3 News Release, Kraken expects revenue in 2026 to be between $165 million and $175 million and Adjusted EBITDA4 to be between $40 million to $50 million, excluding any contribution from the Covelya Acquisition. The midpoint of guidance represents over 65% revenue growth and 80% Adjusted EBITDA growth in comparison to the prior year. The Company's strong outlook for 2026 is driven by both existing and expected purchase orders. It is also supported by expected growth in the commercial services business, including a full year contribution from LiDAR services, formerly 3D at Depth. Consistent with prior years, revenue in 2026 is expected to be weighted toward the second half of the year. Capital expenditures in 2026 are expected to range from $15 million to $18 million, down significantly from the prior year, given the completion of the new battery manufacturing facility. A summary table of the Company's 2026 guidance range and a comparison to 2025 results is provided below. Kraken plans to release updated 2026 guidance for the combined company upon closing of the Covelya Acquisition. CONFERENCE CALL DETAILS Kraken management will host a conference call today, April 16, 2026, starting at 8:30 a.m. ET to discuss the financial results. Participants can listen to this event at the webcast details below, or by dialing 1-833-752-3301 (North America) or 1-647-846-2734 (International) for operator assistance. A recording will also be made available following the call. NON-IFRS MEASURES Adjusted EBITDA and Adjusted EBITDA Margin Gross profit is defined as revenue less cost of total sales. Gross profit margin is defined as gross margin dividend by total sales. Figure 1: Kraken Robotics SeaPower batteries emerging from a pressure test system. 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 Robotics is headquartered in Canada with offices in North America, South America, and Europe, supporting clients in more than 30 countries worldwide. LINKS: www.krakenrobotics.com FORWARD LOOKING STATEMENTS 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, and the OTCQB has neither approved nor disapproved the contents of this press 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] Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.
"This track is arriving in an atmosphere of chaos." Tom Waits and Massive Attack collaborate on haunting, politically-charged new single Boots On The Ground referencing "the militarisation of police forces fusing with neo-fascist politics"
Waits' first new material since 2011 is a dark collaboration with Massive Attack Massive Attack and Tom Waits have released a politically-charged collaborative single, Boots On The Ground. The unsettling and haunting song is the first new music from 76-year-old Waits since his 2011 album Bad As Me. It features additional vocals from his son Casey Waits. The release of the single is accompanied by a film created by Massive Attack utilising images taken by American photo artist thefinaleye. Massive Attack say, "This montage work portrays a momentous American epoch that is yet to be named, and comes in the aftermath of the largest public protests in American history - focused on opposition to ICE raids, the militarisation of domestic forces, and state authoritarianism." "It's a career honour to collaborate with an artist of the magnitude, originality and integrity of Tom," the band add, "but this track is arriving in an atmosphere of chaos. Across the western hemisphere, state authoritarianism and the militarisation of police forces are fusing again with neo-fascist politics. "Seen within the American emergency, at home and overseas, this track contains pulses of callous impulse and abandoned mind." Text at the beginning of the video references the murder of George Floyd in Minneapolis in 2020, ICE raids on migrant communities, state repression of public protest in America, and the fact that almost 33,000 military veterans are homeless in the United States. The lyrics of the song's final verse read: "It's cold and hot, as Satan's hoof Spinning on the world I'm hiding on a roof I kill a brown man I never ass knew Choked on spit and then he turned blue He spattered black blood, he rolled fin out He died right here I got the pearl from his snout A puff of gray smoke from the tongue of a cloud He rotted in the sand and all that they found was his boots on the ground." Boots On The Ground will be released on vinyl by Massive Attack's new record label, Play It Again Sam, with The Fly, a spoken word track from Waits on the B-side. The single is the first of several releases planned around the band's upcoming gigs.
Kraken Robotics Announces $28 Million in SeaPower Battery and Kraken SAS Orders | Taiwan News | Apr. 16, 2026 18:25
ST. JOHN'S, Newfoundland and Labrador, April 16, 2026 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. ("Kraken" or the "Company") (TSX-V: PNG, OTCQB: KRKNF) announces approximately $28 million in new orders to five clients including two new customers for its SeaPower™ batteries and Synthetic Aperture Sonar (SAS). "These orders include battery contracts from three large international defence companies and a SAS order from a new commercial uncrewed underwater vehicle (UUV) manufacturer," said Greg Reid, President and CEO of Kraken Robotics. "Our products are now integrated or being integrated into more than 30 different UUV platform types worldwide." Figure 1: Kraken Robotics synthetic aperture sonar image of an offshore oil and gas production field. 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 Robotics 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 Limited (the "Acquisition"), a leading international provider of mission-critical underwater technology solutions operating through its subsidiary companies: Sonardyne International Ltd., EIVA A/S, Forcys Ltd., Wavefront Systems Ltd., Voyis Imaging Inc., and Chelsea Technologies Ltd. The Acquisition is expected to close during 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 Certain information in this news release constitutes 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, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. 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 and other factors set out in the Company's public disclosure documents. 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 such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such 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. 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 Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the OTCQB has neither approved nor disapproved the contents of this press 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 [email protected] A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/87a1d8ac-4b17-4fc1-b613-a0b14d4d8d4e
Kraken Robotics Reports 2025 Financial Results
Certain preliminary 2025 year-end results and 2026 guidance were already announced in the news release of the Company dated March 3, 2026 (the "March 3 News Release"), together with the Company's execution of 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"). The Covelya Acquisition is expected to close during the second quarter of 2026, subject to the satisfaction of customary closing conditions and receipt of required regulatory approvals. For further details on the Covelya Acquisition, please see the March 3 News Release. Unless otherwise specified, all dollar amounts in this release are denominated in Canadian dollars. * Record annual results with 2025 revenue of $102.2 million and Adjusted EBITDA of $25.0 million. * Stronger 2025 demand for battery and Synthetic Aperture Sonar ("SAS") products, with new customers. * Expanded into LiDAR services via the tuck-in acquisition of 3D at Depth, Inc. ("3D at Depth") in 2025. * Product innovations include a higher energy density battery, LARS for smaller USVs and circular SAS. * Increased battery manufacturing capacity with recent completion of new Nova Scotia facility. * Strengthened leadership team and Board with several new executives and independent directors. * Expect 2026 revenue of $165 million to $175 million and Adjusted EBITDA of $40 million to $50 million. * Announced $87 million of product orders to date in 2026, with demand across all product lines. * In March 2026, announced the transformational acquisition of UK-headquartered Covelya Group. * Updated 2026 guidance for the combined company will be issued at closing of the Covelya Acquisition. MANAGEMENT COMMENTS "We are pleased to report another year of strong financial results, driven by significant demand for our products and services across a growing base of customers," said Greg Reid, President and CEO of Kraken. "This momentum reflects the differentiated capabilities of our subsea sensor and power technologies and the growing adoption of autonomous underwater systems in both defence and commercial applications. We are excited about the expected Q2 closing of our strategic acquisition of Covelya Group, which we believe will significantly strengthen Kraken in terms of its product offering, technological capabilities, competitive position and financial outlook. The current macro environment is characterized by rising global instability that is fueling increased defence spending and a push for national energy security. This is driving significant growth in our (and Covelya's) core growth markets. Recent conflicts in Ukraine and the Middle East have demonstrated that uncrewed systems provide transformative, asymmetric capabilities. Simultaneously, the energy sector is adopting these systems to lower costs and enhance the monitoring of remote assets. This has created a surge in demand for maritime drones, as well as counter-drone technology. As both Kraken and Covelya products enable the essential control and automation for these platforms, both our companies are securing a record number of opportunities and orders and expect this growth trajectory to continue. Looking ahead for the full year 2026, we are excited about the strong new order activity that both Kraken and Covelya have had to start the year and the massive opportunity in front of us." 2025 FINANCIAL HIGHLIGHTS * Consolidated revenue in 2025 of $102.2 million compared to $91.3 million in 2024. This annual revenue growth was driven by increased demand in Kraken's SeaPower subsea batteries and SAS products, as well as strong results in the subsea services division, including the acquisition of 3D at Depth. This growth was partially offset by the decline in sonar-related product revenue due to the timing of KATFISH projects and the acquisition component of the Canadian Navy Remote Mine Disposal System ("RMDS") integration project nearing its completion. * Product revenue totaled $61.7 million in 2025 compared to $66.3 million in the prior year. These results included significant revenue growth in the Company's subsea battery and SAS products respectively, which were offset by the decline in other sonar-related revenue as mentioned above. Since mid-2025, the Company added multiple new subsea battery customers, highlighting Kraken's increasing market share, the growing adoption of subsea technology, and the continued adoption of unmanned underwater vehicles ("UUVs"). * Service revenue of $40.5 million in 2025 compared to $25.0 million in 2024. This growth was driven by the contribution from the 3D at Depth acquisition that was completed during the year and higher utilization of services equipment fleet. * Gross profit for 2025 increased to $63.4 million, up from $44.7 million in 2024. The Company's gross profit margin improved to 62.1% in 2025, compared to 49.0% in the prior year, driven by the mix of products sold and the addition of high margin service revenue through the acquisition of 3D at Depth. * Adjusted EBITDA in 2025 increased to $25.0 million, up from $20.7 million in the prior year. The Company's Adjusted EBITDA margin improved to 24.4%, up from 22.7% in 2024. * Total assets on December 31, 2025, were $313.7 million, compared to $162.6 million on December 31, 2024. Cash as at December 31, 2025 totaled $120.5 million, up from $58.5 million as of the same date in the prior year, while working capital totaled $171.6 million as at December 31, 2025, up from $94.4 million as at the same date in the prior year. * Capital expenditures/intangible assets purchased were $30.3 million in 2025, compared to $5.1 million in 2024. This increase in growth capital reflects additional investment in Kraken's current and new subsea power manufacturing facilities in addition to new marine assets to support revenue growth. The Company expects more moderated capital spending in 2026, as highlighted later in the release. * Net income for 2025 was $2.9 million compared to $20.1 million in the prior year. Annual results in 2024 included a deferred tax recovery benefit of $9.7 million. The Company's results for 2025 also included $5.0 million of restructuring and acquisition related expenses. Diluted earnings per share were $0.01 in 2025 compared to $0.09 per share in the prior year. Q4 2025 FINANCIAL HIGHLIGHTS * Consolidated revenue for the quarter was flat at $28.4 million, compared to $28.1 million for the quarter ending December 31, 2024. Growth in SeaPower subsea batteries, SAS, and subsea services were offset by lower revenue associated with the RMDS project. * Product revenue in the quarter totaled $17.8 million, down slightly from $18.6 million in the prior year, while service revenue increased to $10.6 million, up slightly from $9.6 million in the prior year. Quarterly revenues and year-over-year comparisons can fluctuate significantly due to the timing of product orders and shipments in addition to seasonality in the offshore services business. * Gross profit increased to $20.0 million, up from $13.5 million in the prior year. Gross profit margins during the quarter equated to 70.4%, up from 48.0% in the prior year, driven by lower-than-expected material costs relating to a certain project. * Adjusted EBITDA increased to $9.5 million in the quarter, up from $7.0 million in the prior year. These results generated an Adjusted EBITDA margin of 33.5% in Q4 2025, up from 25.0% in the prior year. OTHER COMPANY HIGHLIGHTS * Kraken expanded its battery manufacturing capacity during the past year with the construction of a new facility in Nova Scotia. This new facility provides over 60,000 square feet of office and production space. Combined with the Company's original facility in Germany, Kraken will be well positioned to meet the growing demand expected for subsea power systems to the rapidly growing unmanned underwater vehicles market. * The Company continued to innovate and develop next generation products and technologies during 2025. These products include a new higher energy density battery design for large and XL-UUVs with an approximately 30% improvement in energy density compared to its previous design, a new compact battery design that will be introduced in 2026 to target smaller and medium sized vehicles, a new KATFISH Unmanned Surface Vessel ("USV") Launch and Recovery System ("LARS") to target smaller sized vessels, in addition to a dual frequency circular SAS ("C-SAS") that provides a 360 degree azimuth of the seabed, allowing for higher fidelity imagery for detection, classification, and plausible identification of objects from a single payload. * The Company also strengthened and expanded the composition of its Board with three new directors, including the addition Kim Butler and Kristin Robertson in 2025 as well as Don Robertson in 2026. Combined, these directors bring a breadth of expertise across finance, operations, risk management, capital markets, strategy, maritime defence, and corporate governance. * Effective April 16, 2026, Peter Hunter will be stepping down as Chairman of the Board due to personal reasons. Peter will remain on the Company's Board as an independent director. Shaun McEwan, a seasoned executive with over 30 years of technology, manufacturing and defence experience, has been appointed by the Board as its next Chairman. Shaun has served as a director on Kraken's Board since 2016. The Company and its Board express its appreciation to Mr. Hunter for his guidance, commitment and leadership during his tenure as Chairman, and congratulates Mr. McEwan in his new role. * Since year-end 2024, Kraken has made numerous additions to its leadership team as part of the Company's long-term growth strategy. As previously announced, the additions to the Company's executive team include Bernard Mills as Executive Vice President Defence, Terra Penrose as Chief People Officer and John Salama as Chief Information Officer. Kraken is also pleased to announce the recent hiring of Scott Peak as Vice President Business Development. Scott will be based in Australia and will support Kraken's growth initiatives in the Asia Pacific region having previously worked at Ultra Maritime, Thales Australia, and the Royal Australian Navy. * Due to organizational restructuring effective April 10, 2026, Lynne Adu, Kraken's Chief Commercial Officer ("CCO") is no longer with the organization. The Company determined that the CCO role is no longer required following a review of its commercial operations and strategic priorities. The Company is grateful to Lynne for her valuable contributions and wishes for her success in her future endeavors. Euan Tait, who was previously Chief Operating Officer at 3D at Depth, has been appointed Managing Director of Kraken's Service business. * During first quarter 2026, Kraken announced the strategic Covelya Acquisition. This accretive acquisition is expected to position the Company 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. 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. 2026 ORDERS - KRAKEN & COVELYA * Since January 2026, Kraken has announced $87 million of product orders for its SeaPower subsea batteries, KATFISH towed SAS, and Kraken SAS predominantly to defence customers. These orders include approximately $28 million of new orders as separately announced on April 16, 2026. * During first quarter 2026, Covelya has also seen solid order intake with total new orders of approximately $135 million from various defence and commercial customers. Covelya saw some significant orders for navigation and positioning equipment within Sonardyne International Limited, and for its Sentinel Intruder Detection system and Vigilant Forward Looking Sonar (FLS) within Wavefront Systems Limited. 2026 FINANCIAL GUIDANCE As previously announced in the March 3 News Release, Kraken expects revenue in 2026 to be between $165 million and $175 million and Adjusted EBITDA to be between $40 million to $50 million, excluding any contribution from the Covelya Acquisition. The midpoint of guidance represents over 65% revenue growth and 80% Adjusted EBITDA growth in comparison to the prior year. The Company's strong outlook for 2026 is driven by both existing and expected purchase orders. It is also supported by expected growth in the commercial services business, including a full year contribution from LiDAR services, formerly 3D at Depth. Consistent with prior years, revenue in 2026 is expected to be weighted toward the second half of the year. Capital expenditures in 2026 are expected to range from $15 million to $18 million, down significantly from the prior year, given the completion of the new battery manufacturing facility. A summary table of the Company's 2026 guidance range and a comparison to 2025 results is provided below. Kraken plans to release updated 2026 guidance for the combined company upon closing of the Covelya Acquisition. CONFERENCE CALL DETAILS Kraken management will host a conference call today, April 16, 2026, starting at 8:30 a.m. ET to discuss the financial results. Participants can listen to this event at the webcast details below, or by dialing 1-833-752-3301 (North America) or 1-647-846-2734 (International) for operator assistance. A recording will also be made available following the call. Webcast Details: https://event.choruscall.com/mediaframe/webcast.html?webcastid=sLXYSQ2 ... 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, 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 dividend by total sales. Figure 1: Kraken Robotics SeaPower batteries emerging from a pressure test system. 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 Robotics 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 during 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; 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, 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, and the OTCQB has neither approved nor disapproved the contents of this press 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] _____________________________________________ 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. Gross profit is calculated as total revenue minus cost of sales. Gross profit margin is calculated as gross profit divided by total revenue. 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. 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/8062ec4f-e334-40a9 ...
OpenAI, Anthropic Highlight Revenue Gains as IPO Hype Builds
As competing AI giants gear up for IPOs, investor concerns center on how they measure their valuations. With both OpenAI and Anthropic preparing IPOs later this year, the stakes are high, and the companies may try pushing the envelope when measuring their financial metrics. The contentious dynamic between the firms is ratcheting up, especially around the public -- and investor -- perception of their businesses. The rivalry has spilled onto a new battleground: annual recurring revenue. OpenAI accused Anthropic of overstating its revenue metric in an internal memo obtained by The Verge. With private companies' ARR reporting methodology being so opaque, it's easy to attack the metric. In the memo, OpenAI chief revenue officer Denise Dresser claims that Anthropic's revenue-share arrangements with Amazon and Google -- both strategic investors and cloud distribution partners -- are being accounted for in ways that artificially boost the company's headline numbers. She argues that if you strip that out, Anthropic's run rate looks meaningfully smaller. Despite Dresser's claim that OpenAI's metrics are much more in line with what the firm "would be held to as a public company," it's not quite there. "Essentially, both companies are in an ARR accounting arms race ahead of their IPOs, and neither is reporting on a basis that would survive a Big Four audit," says Harrison Rolfes, PitchBook's senior research analyst focusing on these companies. Over the past year or so, both firms have seen astronomical growth, bringing more attention and scrutiny to the nuances of their businesses. A year ago, Anthropic reportedly had roughly $1 billion in ARR, while OpenAI had $6 billion. At the time, OpenAI's revenue was seen as impossible for Anthropic to catch. But things have changed. Not only has Anthropic reached a reported $8 billion in ARR, but it's widely seen as having built a bigger and more durable enterprise business than its rival. While OpenAI found initial success with direct-to-consumer AI and video applications, it's been winding down many of its side projects lately, including its generative image and video app, Sora. Dresser's memo lays out the company's shift in focus to its enterprise business. "OpenAI's enterprise sales motion has an Anthropic problem, and the Dresser memo is the internal acknowledgment of it, dressed up as competitive intelligence," Rolfes said. The companies' IPOs are expected to be among the largest ever. OpenAI is currently valued at about $852 billion, while Anthropic is at $380 billion. Both are expected to seek much bigger valuations when they go public. Investors will be scrutinizing the numbers.
Exclusive-Starlink outage hit drone tests, exposing Pentagon's growing reliance on SpaceX
Starlink, in particular, has proved key to crucial programs - from drones to missile tracking - with a low-earth orbit constellation of close to 10,000 satellites, a scale that provides the military with a network resilient against potential adversary attacks. But the Navy's mishaps with Starlink for its autonomous drone program, which have not been previously reported, highlight the challenges of the U.S. military's growing reliance on SpaceX and the risks it brings to the Pentagon. "If there was no Starlink, the U.S. government wouldn't have access to a global constellation of low earth orbit communications," said Clayton Swope, a deputy director of the Aerospace Security Project at the Center for Strategic and International Studies. The Pentagon did not respond to questions about the drone test or SpaceX's work with the Navy. The Pentagon's chief information officer, Kirsten Davies, said the "Department leverages multiple, robust, resilient systems for its broad network." The Navy and SpaceX did not respond to requests for comment. Despite facing growing competition from Amazon.com, which announced an $11.6 billion agreement this week to acquire satellite maker Globalstar, SpaceX remains far ahead in low-earth orbit communications. Beyond drones, SpaceX has cemented a near-monopoly for space launches and provides satellite communications with Starlink and its national security-focused constellation, Starshield, generating billions of dollars for the company. Last month, U.S. Space Force said it had reassigned its upcoming GPS launch to a SpaceX rocket for the fourth time, due to a glitch in the Vulcan rocket made by the Boeing and Lockheed Martin joint venture United Launch Alliance. Democratic lawmakers have warned the Pentagon about the risks of its reliance on a single company led by the world's richest man to deliver crucial national security capabilities. More recently, the Defense Department's disagreements and blacklisting of AI startup Anthropic quickly revealed how an overreliance on one AI vendor could create problems should that vendor be dropped. Reuters reported last year that Musk unexpectedly switched off Starlink access to Ukrainian troops as they sought to retake territory from Russia, denting allies' trust in the billionaire. In Taiwan, SpaceX faced criticism over concerns it was withholding satellite communications to U.S. service members based there, "possibly in breach of SpaceX's contractual obligations with the U.S. government," according to a 2024 letter sent by then-U.S. Representative Mike Gallagher to Musk, reported by Forbes at the time. SpaceX disputed the claim in a post on X. Reuters could not determine whether SpaceX has since provided Starlink service in Taiwan to U.S. service members. The Pentagon and SpaceX did not respond to questions about Taiwan. "As a matter of operational security, we do not comment on or discuss plans, operations capabilities or effects," an official said in a statement. SpaceX's Starlink broadband has been crucial to the Pentagon's drone program, providing connection to small unmanned maritime vessels that look like speedboats without seats, and include those made by Maryland-based BlackSea and Austin, Texas-based Saronic. In April 2025, during a series of Navy tests in California involving unmanned boats and flying drones, officials reported that Starlink struggled to provide a solid network connection due to the high data usage needed to control multiple systems, according to a Navy safety report of the tests reviewed by Reuters. "Starlink reliance exposed limitations under multiple-vehicle load," the report stated. The report also faulted issues linked to radios provided by Silvus and a network system provided by Viasat. In the weeks leading up to the global Starlink outage in August, another series of Navy tests was disrupted by intermittent connection issues with the Starlink network, Navy documents reviewed by Reuters show. The causes of the network losses were not immediately clear. Despite the setbacks, the upside of Starlink - a cheap and commercially available service - outweighs the risk of a potential outage disrupting future military operations, said Bryan Clark, an autonomous warfare expert at the Hudson Institute. "You accept those vulnerabilities because of the benefits you get from the ubiquity it provides," he said. (Reporting by David Jeans in New York; Additional reporting by Joey Roulette in Washington; Editing by Chris Sanders and Matthew Lewis)
Kraken Robotics Reports 2025 Financial Results
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; 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, 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.
2 stocks to buy before SpaceX IPO
By submitting my information, I agree to the Privacy Policy and Terms of Service. A potential SpaceX IPO continues to capture investor imagination, with expectations that the company could seek a valuation of up to $2 trillion. The company has reportedly filed confidentially with the U.S. Securities and Exchange Commission (SEC), and its prospectus could be unveiled in late May. Given that the IPO is expected to outshine even the biggest market debuts in recent years, investors are already positioning ahead of the listing, hoping to capitalize on a ripple effect across the broader space sector. With only a limited window before the anticipated listing, Finbold has singled out two stocks worth checking out before what is shaping up to be a historic market event. First on the list, Rocket Lab (NASDAQ: RKLB) is one of the most established publicly traded space companies and SpaceX's leading competitor. Headquartered in California, the company provides a range of end-to-end space services, including rocket launches, satellite manufacturing, and mission integration. In 2025, Rocket Lab generated $601.8 million in revenue, marking a roughly 38% year-over-year increase. Now, its focus is on advancing technology such as the Gauss electric satellite thruster system designed for high-volume production. What's more, potentially human spaceflight missions have also been mentioned, and Neutron, the firm's medium-lift reusable rocket, is intended to compete directly with SpaceX's Falcon 9. Looking ahead, Rocket Lab's growing backlog of around $1.9 billion underscores sustained demand for its services. However, valuation remains a key consideration, as the stock currently trades at approximately 60 times trailing sales. Nonetheless, the premium could be justified by the company's accelerating launch schedule and broader tailwinds in the space industry, especially if a SpaceX IPO manages to drive increased institutional investment in the sector. Our second pick, Planet Labs (NASDAQ: PL) operates the largest fleet of imaging satellites globally and is now also positioning itself as a data intelligence platform. The company reported fiscal 2026 revenue of $307.7 million, up 26% year over year. In this instance, the link to SpaceX is direct. Namely, the company relies on SpaceX's Falcon 9 rockets to deploy its satellites. In other words, each launch contributes to Elon Musk's business while reinforcing demand for orbital launch services. A potential caveat is that profitability remains a key hurdle. For example, net losses reached $247 million in fiscal 2026. Still, the profitability of the satellite business is becoming more apparent, for instance, in Amazon's agreement to acquire Globalstar, which led to positive reactions on Wall Street. Additionally, Planet's business model is somewhat unique: rather than relying on one-off image sales, the company generates the vast majority of its revenue through recurring subscriptions. Planet Labs could thus better be viewed as a long-term investment, with a SpaceX IPO acting as a catalyst by channeling additional capital into the broader space infrastructure ecosystem.
German banks examine risks of Anthropic's Mythos with authorities
FRANKFURT, April 16 (Reuters) - German banks and national authorities are examining risks around Anthropic's new artificial intelligence model, an official said on Thursday, amid concerns that it could fuel cyberattacks. Kolja Gabriel, a member of the executive board at the German Banking Association, told Reuters that the group was consulting with cyber experts at its member banks as well as Germany's finance ministry and other authorities. Anthropic's Mythos is seen by cybersecurity experts as posing significant challenges to the banking sector and its legacy technology systems, raising alarm bells among regulators in Britain and the United States. "Mythos is being used in a controlled manner by IT security firms to close potential vulnerabilities as quickly as possible. We expect a series of software updates shortly and are closely monitoring developments," Gabriel, who is responsible for technology and innovation, said in an emailed statement. The talks also involve the Bundesbank and Germany's financial watchdog BaFin. The finance ministry declined to comment, while the central bank did not immediately respond to a request for comment. BaFin said that there are regular exchanges with relevant national, European and international stakeholders. "Financial firms must be prepared for the possibility that vulnerabilities could be discovered in the near future, which would then need to be addressed promptly and quickly," BaFin said in a statement. Reuters reported on Thursday that European Central Bank supervisors are set to quiz bankers about the risks of Mythos. Anthropic has said its current iteration, Claude Mythos Preview, will not be made generally available and has instead announced Project Glasswing. It invited major tech companies, cybersecurity vendors and JPMorgan Chase, along with several dozen other organizations, to privately evaluate this model and prepare defences accordingly. (Reporting by Tom Sims; Editing by Alexander Smith)
Kraken Robotics Announces $28 Million in SeaPower Battery and Kraken SAS Orders
Kraken Robotics 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 Limited (the "Acquisition"), a leading international provider of mission-critical underwater technology solutions operating through its subsidiary companies: Sonardyne International Ltd., EIVA A/S, Forcys Ltd., Wavefront Systems Ltd., Voyis Imaging Inc., and Chelsea Technologies Ltd. The Acquisition is expected to close during the second quarter of 2026, subject to the satisfaction of customary conditions and regulatory approvals.
