Kinaxis Inc.

Good morning and welcome to the Canaxis Inc. Fiscal 2025 Fourth Quarter and Year-End Results Conference Call. Currently, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. I'd like to remind everyone that this call is being recorded today, Thursday, March 5, 2026. I will now turn the call over to Rick Wadsworth, Vice President, Investor Relations at Canaxis Inc. Please go ahead, Mr. Wadsworth.

Thanks, Operator. Good morning and welcome to the Canaxis Earnings Call. Today, we will be discussing our fourth quarter and year-end results, which we issued after close of markets yesterday. With me on the call are Rizat Gharab, our Chief Executive Officer, and Blaine Fitzgerald, Chief Financial Officer. Some of the information discussed on this call is based on information as of today, March 5, 2026, and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set out in such statements. For discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release, as well as in our CDAR Plus filing. During this call, we will discuss IFRS results and non-IFRS financial measures, including adjusted EBITDA. A reconciliation between adjusted EBITDA and the corresponding IFRS result is available in our earnings press release in MD&A, both of which can be found on the IR section of our website, canaxis.com, and on CDAR+. The webcast is live and being recorded for playback purposes. An archive of the webcast will be made available on the investor relations section of our website. Neither this call nor the webcast may be re-recorded or otherwise reproduced or distributed without prior written permission from Kinaxis. We have a presentation that accompanies today's call, which can be downloaded from the IR homepage of our website. It'll let you know when to change slides. Over to you, Rizat.

Thanks, Rick. Turning to slide four. I'd like to start by saying how thrilled I am to be a part of the Kinaxis team. It's a company I've admired and competed against for several years. Here are my top three reasons for joining Kinaxis. One, getting back to my roots in supply chain software, where I've spent over 20 years of my career, particularly at this time when organizations are experiencing unprecedented levels of demand and supply volatility. Two, to build and scale a company that is already a market leader in AI powered supply chain planning and orchestration. And three, the tremendous talent and culture in the organization that is rooted in innovation and customer success. I am truly excited to build and scale the business while delivering unprecedented value to our customers. Turning to slide five, I couldn't have joined Canaxis at a better time. The team performed really well, and we had a record-setting fourth quarter to the end year with ongoing momentum in two key growth metrics. Our SAS revenue grew by a healthy 19% in Q4 and 17% for the year, significantly higher than our initial guidance range of 11% to 13%. Perhaps more importantly, our ARR balance grew by 20%, accelerating from 12% growth at the end of 2024. Incremental bookings hit record levels in the quarter and year. This momentum sets us up really well to target higher SAS revenue growth in 2026, as Blaine will explain and speak soon. This growth momentum, combined with operating efficiency, also translated to significantly improved profitability. Full year adjusted EBITDA was at a record level and grew by 30%. The margin in Q4 was 26% and was 25% for the year. at the high end of our initial guidance range and a year early at our mid-term targets. We see room for ongoing improvements in coming years. Moving on to slide six. The new business we won in the quarter and year demonstrates excellent execution on important go-to-market strategies. Let me give you some color. In Q4 and fiscal 2025, we won roughly a third more new business. than in any previous quarter and year in our history, measured by the total average annual contract value in the period, or ACB. The number of contracts with one plus million dollars in average ACB was at record levels in Q4 and the year. We won 21 deals over a million dollars in the year versus six in 2024, and over 30% higher than the closest result. looking at total contract value or tcb over the committed term we won over 100 deals above a million dollars our pipeline suggests that 2026 could be another strong gear in this regard together these metrics reflect the growing market need for companies to develop agility and adaptability as they navigated as they navigate unprecedented levels of supply and demand volatility we continue to be the market providers, the go-to-market providers for AI-powered supply chain planning, decision-making, and orchestration for the world's largest and most complex supply chains. Going to slide seven. We want some world-class companies in Q4, which are distinguished not just by their size, but also by the role they play in the global AI transformation. As investments increase in the build-out of data centers, and related AI infrastructure, Kinaxis Maestro is becoming the default choice for supply chain planning and orchestration across this value chain. During G4, we won a top five global semiconductor foundry, which manufactures highly advanced GPUs for the world's AI infrastructure leaders, mobile device leaders, massive players in the digital economy, and others. You'll recall that in the first quarter of 2025, we also want another global leader in the semiconductor ecosystem. In Q4, we also want a major player in the global storage business, serving the world's largest cloud providers, consumer electronics companies, and other device makers. Last quarter, we talked about winning a material science company that is also a key part of the global data center infrastructure. We have continued our amazing run in the oil and gas sector by earning the business of Marathon Petroleum Corporation, a leading integrated downstream and midstream energy company headquarters in the US, and operating the nation's largest refining system. The AI economy is energy hungry, so our success in oil and gas continues to position us really well. We're also seeing increasing demand from energy utility companies that are expanding their operations to service the surge in data center needs. We're performing very well in other growing markets, like aerospace and defense. Companies in the sector are seeing significant growth in demand while leading with complex bill of materials, engineer to order operating models, and capacity constraints. In the fourth quarter, we won one of the world's largest aerospace engine makers, which fires defense, civil, and business aircrafts worldwide. We already support Honeywell, Lockheed Martin, Raytheon, L3 Harris, and several other leaders in the aerospace and defense space. In consumer goods, we won the Magnum Ice Cream Company. With revenues of roughly 8 billion euros in 2025, the Magnum Ice Cream Company is present in 80 markets around the world. and is home to icons like Magnum, Ben & Jerry's, Cornetto, and the Heart brand. If that wasn't enough, we also won a top five global chocolate company in Q4. At the end of 2025, roughly 85% of our AOR is split between our top four vertical markets, life sciences, high tech, consumer products, and industrial manufacturing, including aerospace and defense. Maestro's ability to offer comprehensive AI-powered supply chain planning and orchestration for such a diverse set of major manufacturing markets, all without custom coding, is unparalleled. There are still 14,000 prospects remaining in our markets, and we have never been in a better position to win them. Moving on to slide eight. Despite outsized success winning major new accounts in Q4, 55% of gross additions to ARR came from expansion business with existing customers. For the year, that number was 53% compared to 45% in 2024. It was our biggest year ever for expansion business. We revamped the structure and goals of our installed account teams at the end of 2024. The impact has been meaningful, immediate, and lasting. The contribution of expansion business from applications hit an all-time high with newer products like enterprise scheduling, machine learning-based forecasting, and supply optimization making notable progress. We have over 400 customers and a growing set of capabilities to take to market to them. There is still massive room for growth within the install base. Going on to slide nine. I'm excited to tell you more about our ongoing journey with AI, the commercial launch of Maestro Agent Studio. This is a next generation capability that gives supply chain teams a no-code way to compose AI agents grounded in their real operating context to reimagine the ways of working and delivering the next level of value outcomes. The agents are proprietary, use proprietary data, workflows, resources, and tools in our Maestro platform and can leverage the context of the most comprehensive digital representation of the complex and interconnected physical supply chain. Working within Maestro's trusted supply chain planning environments, the agents help teams concurrently evaluate trade-offs and coordinate decisions and actions as business conditions change. And the business conditions are changing at unprecedented levels as we speak. Maestro Agent Studio embeds leading large language models, including OpenAI's ChatGPT and Google Gemini, with others like Anthropix Cloud in testing, and keeps agent behavior anchored in Maestro's trusted data, intelligence, and governance. The agents call on and complement our existing decision automation capabilities that are anchored in decades of deep domain expertise and sophisticated mathematical models that LLMs aren't designed to replace. This includes advanced machine learning capabilities, deep optimization algorithms, and heuristics algorithms. Together, these capabilities create a practical foundation for more autonomous supply chain operations that deliver faster, better decisions with confidence and trust. To date, early innovative customers are using Maestro Agent Studio for exciting use cases. For example, a major global electronics manufacturing services company is autonomously analyzing forecast quality and outside-in demand signals across business units to recommend improved forecast quality. A prominent consumer fashion company is analyzing demand changes to help planners understand the impacts on production and distribution and determine mitigation strategies. A global life sciences company is eliminating steps in inventory risk assessment to surface insights in seconds instead of hours. And several early adopter customers are streamlining reporting processes to reduce manual effort and tons of hours per month. Our progress is exciting, but the best is yet to come. So far, Maestro agents are focused on working with data within our own platform. As we continue our AI journey going forward, we are expanding Maestro's reach to the broader ecosystem with an expanded data fabric and an abstract semantic layer to enable composable agentic orchestration right across the supply chain. In 2026, our plans are the following. Orchestrator agents that coordinate and sequence multiple agents across concurrent supply chain workflows. securing connections between maestro agents and external agents and systems through emerging protocols like MCP and A2A, expanded data context and semantics with an extensible optology layer, enabling agents to reason consistently across larger data sets and analytical environments beyond maestro. Through agentic connections to other systems that can provide relevant data, and insights, we can leverage our context-sensitive, real-time, concurrent planning engine to help customers make better, more informed decisions and achieve unprecedented positive outcomes. Moving on to slide 10. Maestro Agent Studio and our pre-built Maestro Agents are fully available today. Monetization will happen through our next-generation pricing structure, an evolution that we've launched with customers and which introduces the maestro activity units. Our new pricing structure remains subscription-based and still reflects a platform fee based on customer size and fees for individual functional modules, like supply and demand planning, inventory optimization, production planning, enterprise scheduling, and so on. However, now the subscription also includes bundles for maestro activity units, or MAUs, which expand the basis for usage-based pricing in our structure. Customers will commit for the full term of the contract to a quantity of MAUs, bundles, that reflect anticipated usage. The size of MAU commitment grows with the number of scenarios, AI tasks and automations and plan calculations and data exports a customer expects to engage through our MCP server. This more fulsome notion of usage achieves some very important goals. First, over time, we anticipate a bigger share of Maestro work to be conducted by AI agents, so our pricing needs to reflect that important value. If efficiencies result in fewer users, we are compensated by the growth in AI tasks and automations. Second, since we expect Maestro to interact more with a broader network of interoperable agents, we need to capture the value of the intelligence and analysis we share out. The data exports aspects of MAU compensates for that. Finally, embedding plan calculations in the MAU better reflects the value that customers receive and the costs we incur through normal plan iterations. Maestro now has the instrumentation to track MAU usage, and persistent overages require additional MAU subscriptions. We will learn a lot more about MAU usage and our next generation pricing model over the next few quarters and fully expect some tweaking along the way. I am confident that it better aligns pricing with the value we create for customers in an even more AI-forward world. The new pricing model is getting thoughtfully rolled out in a phased approach. I see AI as meaningfully expanding our TAM in the long run. As with all meaningful innovation, we encourage you to both avoid overestimating its impact in the short term and underestimating it in the long term. Our customers run the world's most important, complex, and innovative supply chains. By necessity, they move carefully and thoughtfully, but they undeniably move forward. I'll pass the call to Blaine to discuss Q4 and 2025 results and our 2026 outlook.