Kraken Robotics (KRKNF +3.71%) has evolved from a small components supplier into a marine technology company offering sub-sea hardware and underwater intelligence services, and growing demand in defense and national security could unlock a larger opportunity.
The stock climbed as high as $8.13 per share in March, but has since tumbled sharply. If you bought $5,000 worth of Kraken Robotics today and it recovered to its high, that investment would grow to roughly $13,327. The upside is compelling, but the stock's drastic 62% drawdown also highlights its volatility.
Here's what investors need to know before investing in Kraken Robotics stock.
OTC: KRKNF
Key Data Points
Kraken's ocean technology is seeing strong demand as warfare evolves
Established in 2008, Kraken Robotics designs and manufactures sonar sensors, vehicles, and sub-sea batteries. It also produces sub-sea lidar systems and sub-bottom imaging sensors. Its systems are designed to operate under harsh, deep-sea pressures without heavy metallic pressure vessels.
Kraken's real opportunity comes from the emergence of seabed warfare, which is military operations conducted on the ocean floor. This could include surveillance and sabotage of sub-sea communication cables, pipelines, or transmission lines.
Countries are taking steps to protect this critical underwater infrastructure, especially following incidents such as the Nord Stream pipeline attacks and severed communication lines in the Baltic. NATO is taking action by deploying fleets of uncrewed surface vessels (USVs) and autonomous underwater vehicles (AUVs) to monitor the deep sea and protect this infrastructure.
Image source: Getty Images.
Kraken is a key supplier for these autonomous fleets. Its top moneymaker is its SeaPower batteries, which are sold to defense prime contractors and commercial fleet operators. Another top revenue producer is its Katfish mine-hunting vehicle, which can be towed at high speeds behind uncrewed surface vessels to clear minefields.
Kraken is seeing orders pick up and has completed a major acquisition
Kraken Robotics has seen orders pick up recently across NATO members. In June, the company announced new defense orders for roughly 36 million Canadian dollars for its sonar and navigation systems. In total, the company has announced CA$327 million in product orders to date in 2026. This strong growth shows that more countries are adopting Kraken hardware to secure sea lanes and naval chokepoints.
The company made a splash on July 2, closing its acquisition of Covelya Group. The move gives Kraken an established company that provides deep-sea tracking, acoustic positioning, and underwater communications. This transaction doubles Kraken's revenue base and expands its European and global footprint. It also makes Kraken more vertically integrated across the deep-sea technology market.
One-time costs have dragged down its net income
Kraken Robotics is seeing solid top-line growth, with revenue up 15% year over year to CA$49 million through the first six months of 2026. The company also reported a CA$10.8 million loss, a massive increase from the prior year when it lost CA$480,000. This was largely due to a supplier contract arbitration decision linked to a 2017 contract dispute, along with acquisition and restructuring costs.
KRKNF Revenue (TTM) data by YCharts
Despite the net loss, the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 7% to CA$8 million this year. This shows that the business is operating profitably, once you strip out the non-recurring acquisition costs and legal items noted above.
Should you buy the dip in Kraken Robotics stock?
Kraken Robotics is an intriguing company at the intersection of defense, uncrewed surface vessels and vehicles, and monitoring of key ocean infrastructure. The stock has pulled back by 62% after a sharp rise, and the biggest hurdle right now is the integration of Covelya Group.
That said, more NATO countries are embracing deep-sea defense, and non-U.S. NATO defense spending is projected to grow at a 9.6% compound annual growth rate through 2035. This should provide a strong tailwind for Kraken, making this pullback an intriguing opportunity for aggressive investors looking to capitalize on rising global defense spending.
