Kraken Robotics: The Underwater Tech Play Powering the Next Defense Revolution

Kraken's Q3 2025 results underscore its rapid ascent. Consolidated revenue surged 60% year-over-year to $31.3 million, driven by record shipments of subsea batteries and synthetic aperture sonar (SAS) systems to defense clients, as reported. Product revenue rose 46% to $18.3 million, while service revenue exploded 85% to $13.0 million, reflecting strong demand for Kraken's 3D at Depth subsea LiDAR services according to financial reports.

The company's profitability metrics are equally impressive. Gross profit jumped 81% to $18.6 million, with a gross margin of 59%, up from 52% in the prior year. Adjusted EBITDA grew 92% to $8.0 million, translating to a margin of 25.5% according to Q3 financial data. These figures highlight Kraken's ability to scale efficiently, even as it invests heavily in growth. Capital expenditures hit $6.3 million in Q3, funding new manufacturing facilities and marine assets to meet surging demand as detailed in earnings reports.

Kraken's strategic positioning is anchored by its partnership with Anduril Industries, a defense tech unicorn. The collaboration focuses on integrating Kraken's technologies into Anduril's autonomous platforms, including the Dive-LD AUV and Ghost Shark XL systems according to recent analysis. Each Dive-LD carries $2 million CAD of Kraken components, while each Ghost Shark XL integrates $10 million CAD of Kraken tech as noted in community discussions. With Anduril's new $1.56 billion contract with the Royal Australian Navy for Ghost Shark XL systems, Kraken could generate $400 million CAD in annual revenue if Anduril achieves 50% production capacity utilization according to market estimates.

Kraken's NATO footprint further strengthens its defense narrative. In 2023-2024, the company secured $9 million in contracts to supply minehunting systems (KATFISH™, Tentacle® Winch) to a NATO Navy's Mine Countermeasure Vessels as reported in official press releases. A $1.3 million order for AquaPix® SAS systems in 2023 also highlights Kraken's role in modernizing NATO's AUV capabilities according to company announcements. Additionally, a Cooperative Research and Development Agreement (CRADA) with the U.S. Naval Undersea Warfare Center in 2024 advances SAS signal processing for seabed intelligence according to defense publications. These contracts align with NATO's strategic focus on subsea dominance and unmanned systems as stated in defense analysis.

Kraken's technological edge lies in its vertically integrated stack, spanning high-margin products and services. Its SeaPower™ subsea batteries offer 200% greater energy density and 46% weight reduction compared to alternatives, making them ideal for UUVs. The AquaPix® SAS systems provide high-resolution seabed imaging, critical for minehunting and intelligence gathering as detailed in technical reports. Meanwhile, the K3 SCOUT Medium unmanned surface vehicle (USV), with a 650NM range and 600kg payload capacity, complements Kraken's subsea offerings as described in industry coverage.

The acquisition of 3D at Depth Inc. in 2025 added subsea LiDAR capabilities, diversifying Kraken's revenue streams. This integration has fueled the 85% growth in service revenue, driven by sub-bottom imaging contracts. By controlling the entire value chain-from batteries to sonar to data processing-Kraken minimizes reliance on third-party suppliers and captures higher margins.

To meet rising demand, Kraken is expanding its manufacturing footprint. A new battery production facility in Nova Scotia is under construction, ensuring supply chain resilience for its high-energy-density SeaPower batteries according to construction updates. This vertical integration reduces bottlenecks and positions Kraken to scale alongside the UUV market, which is projected to grow at a 20% CAGR through 2030.