Kraken Robotics: Growing Urgency (Ticker: KRKN.F)

Plus, an addendum on HRBR and a portfolio update.

Next three weeks: Interactive Brokers (quarterly update), Nu Holdings (full research report), Remitly Global (quarterly update)

---

“The budget from the United States Navy on UUVs is small today – mainly focused on research. Australia has been at the forefront of the industry, signing its recent deal with Anduril. You could sense the passive aggressive tone from Anduril in the press release telling the US Navy it needs to get its act together and start building up its UUV inventory.

An inflection may be coming. Budget proposals have called for increased spending on UUVs, and while we don’t need to bore readers with the back-and-forth of reconciliation bills, what is important for Kraken Robotics is the long-term trend going higher.”

This quote is from my initial Kraken Robotics research report, published in September 2025. My belief at the time was that Kraken’s role as the premier battery supplier for underwater drones offered it a path to significant revenue growth. A premium valuation kept it on the watchlist, but I remained intrigued.

Interim events have proven the need for new defense technologies if the United States wants to maintain its role as the guarantor of global trade (for the sake of the global economy and the tens of millions who could starve to death in Africa and South Asia, I hope they do). This should lead to a sense of urgency around underwater drone contracts, meaning Kraken customers must procure subsea battery supply, and quickly.

At the same time, Kraken’s stock is up 77% since my initial research report, and it just announced a merger to consolidate its position as the key technology provider for the subsea defense market. This makes now, the day after its Q4 2025 earnings release, a perfect time to update readers.

In this quarterly update, I will cover:

• Proven importance on the battlefield

• Going all in on subsea technology

• Q4 2025 earnings

• Is there still an emerging moat?

• My investment decision

Proven importance on the battlefield