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SEC filingKodiak AI, Inc. reported a net loss of $585.5 million for fiscal year 2025, a significant increase from a net loss of $69.5 million in 2024. Revenue declined 75% year-over-year to $3.8 million, primarily due to a $12.3 million decrease in contracts with the U.S. Army and a $0.5 million decrease in freight delivery revenue, partially offset by a $1.7 million increase in Driver-as-a-Service (DaaS) revenue. Total operating expenses increased 52% to $116.4 million, driven by investments in scaling commercial operations, research and development, and public company costs. The company completed a reverse recapitalization merger on September 24, 2025, receiving $171.2 million in net proceeds. As of December 31, 2025, Kodiak had $120.7 million in cash, cash equivalents, and marketable securities, with management noting substantial doubt about the company's ability to continue as a going concern beyond the fourth quarter of 2026 without additional financing.
Kodiak AI, Inc. reported challenging financial results for fiscal year 2025, with revenue declining 75% year-over-year to $3.8 million from $14.9 million in 2024. The net loss expanded significantly to $585.5 million compared to $69.5 million in the prior year. This substantial increase in losses was primarily driven by a $210.7 million loss on issuance of equity instruments related to the Series A cumulative redeemable convertible preferred stock, common stock, and common stock warrants issued in connection with the reverse recapitalization. Operating expenses increased 52% to $116.4 million as the company invested in scaling its commercial operations, particularly its Driver-as-a-Service (DaaS) business model launched in December 2024. The company completed its merger with Ares Acquisition Corporation II on September 24, 2025, resulting in $171.2 million in net proceeds that will support growth initiatives.
Revenue composition shifted significantly during fiscal year 2025. The company recognized $1.8 million in revenue from Atlas Energy Solutions, representing 46% of total revenue, as part of its new DaaS business model. This marked the beginning of recurring revenue streams through per-vehicle or per-mile license fees. However, revenue from contracts with the U.S. Army decreased by $12.3 million to $1.0 million, representing only 26% of total revenue compared to 89% in 2024. Freight delivery revenue also declined by $0.5 million. The company noted that government contracts, particularly those with the Department of War and its service branches, can be episodic in nature and difficult to predict from period to period. As Kodiak scales its DaaS model beyond Atlas, it expects revenue under such arrangements to increase relative to total revenues.
The company's operating loss widened to $112.6 million in 2025 from $61.7 million in 2024, representing an 82% increase. Research and development expenses grew 15% to $50.2 million, driven by higher headcount-related expenses and increased investment in software and tools to support artificial intelligence and machine learning initiatives. General and administrative expenses increased 75% to $36.7 million, primarily due to higher headcount-related expenses (including $3.0 million in stock-based compensation related to a departing officer) and increased costs for legal, accounting, and other professional services associated with becoming a public company. Truck and freight operations expenses surged 175% to $24.8 million to support DaaS operations, while sales and marketing expenses increased 48% to $4.8 million.
Net cash used in operating activities was $94.4 million for 2025, compared to $51.0 million in 2024. The company reported free cash flow of -$116.5 million after accounting for $22.0 million in property and equipment purchases. Financing activities provided $219.9 million in net cash, primarily from $145.0 million in proceeds from Series A Preferred Stock, $43.9 million from second lien loans, and $26.2 million from the reverse recapitalization. As of December 31, 2025, Kodiak had $120.7 million in cash, cash equivalents, and marketable securities, with short-term debt obligations of $11.9 million. The company's accumulated deficit reached $853.7 million. Management stated that current cash resources are expected to fund the business plan into the fourth quarter of 2026 and noted substantial doubt about the company's ability to continue as a going concern without additional financing.
Kodiak plans to continue scaling its DaaS business model, with expectations to expand deployments with Atlas over 2026 and beyond. The company aims to launch driverless highway operations by the end of 2026 in the southern United States, following completion of key systems and safety engineering work required to validate the expansion of its safety case to encompass long-haul operations. Management expects to seek additional funding through debt or equity offerings, including in the near term, to fund its operating plan. Key risk factors include the emerging nature of AV technology, dependence on a limited number of customers (particularly Atlas and the U.S. Army), substantial regulatory requirements, intense competition, and the need for significant capital to fund operations and growth. The company also faces challenges related to its limited operating history and the uncertainty of achieving commercialization at scale.