- KWESST Micro Systems (TSXV:KWE) released highlights of its fiscal Q1 2025 results, showing progress in its commercialization strategy.
- Revenue for Q1 Fiscal 2025 increased by 588 per cent over Q1 fiscal 2024, driven by government contracts
- In Q1 Fiscal 2025, gross profit was C$0.4 million or 45.6 per cent, compared to a gross loss of C$0.1 million in Q1 Fiscal 2024
- KWESST Micro Systems stock last traded at $0.65
KWESST Micro Systems (TSXV:KWE) released highlights of its fiscal Q1 2025 results, showing progress in its commercialization strategy.
“Q1 2025 was a pivotal quarter for KWESST as we executed on our commercialization strategy,” KWESST’s president and CEO, Sean Homuth said in a media release. “The momentum in revenue growth at very healthy margins underscores the great work our team has done to bring our solutions to market. In 2025, we continue to be focused on accelerating ramp-up across all product and service platforms.”
Highlights
- Revenue growth: Revenue for Q1 Fiscal 2025 increased by 588 per cent over Q1 fiscal 2024, driven by government contracts for the Directorate Land Command Systems Program Management Software Engineering Facility (DSEF) and Land Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (Land C4ISR), the pilot of the Lightning SaaS product with the Canadian Red Cross, and growth in the ARWEN business.
- Gross profit: In Q1 Fiscal 2025, gross profit was C$0.4 million or 45.6 per cent, compared to a gross loss of C$0.1 million in Q1 Fiscal 2024. This improvement was primarily due to the ramp-up of digitization revenue from government programs, the Canadian Red Cross contract, and higher margin ARWEN product sales.
Results of operations
- Revenue: Total revenue increased by C$0.8 million in Q1 Fiscal 2025 compared to Q1 Fiscal 2024, mainly due to an additional C$0.6 million from the digitization business line and C$0.1 million from the non-lethal business line driven by ARWEN product sales.
- Operating expenses (OPEX): Total OPEX increased by C$0.9 million, primarily due to higher sales and marketing expenses, general and administrative expenses, and research and development expenses.
Major highlights – fiscal Q1 2025:
- October 1st, 2024: KWESST updated investors on the ramp-up of activity on its sub-contract to Thales Canada in support of the Canadian DND Land C4ISR series of contracts.
- October 10th, 2024: KWESST announced a consolidation of its outstanding Common Shares on a ten-for-one basis to ensure compliance with Nasdaq minimum bid price requirements.
- October 23rd, 2024: KWESST completed its plan to ramp-up volume production of ARWEN cartridges, including the new 40mm baton round.
- November 1st, 2024: KWESST closed a public offering of 3,889,000 pre-funded warrants, raising approximately C$4.9 million.
- November 13th, 2024: KWESST received a letter from Nasdaq, granting an additional 180-day period to regain compliance with the Minimum Bid Requirement.
Leadership addition
- January 6thg, 2025: KWESST announced the appointment of Mrs. Jennifer Welsh as chief financial officer and chief compliance officer, effective February 3rd, 2025.
KWESST Micro Systems Inc. develops and commercializes tactical systems that meet the requirements of security forces and personal defence for overmatch capability against adversaries.
KWESST Micro Systems stock last traded at $0.65 and is 35 per cent lower than where it was this time last year.
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