Most investors who know Kraken Robotics $KRKNF ( ▼ 2.1% ) still think of it as a small Canadian maker of sonar and underwater batteries. That picture went out of date on July 2.

That is the day Kraken closed its $439 million acquisition of Covelya Group, the UK parent of Sonardyne and four other subsea technology businesses. On a combined basis, the two companies generated about $260 million of revenue in 2025, more than three times Kraken's own $73 million. The new Kraken has roughly 1,200 employees, more than 450,000 square feet of production capacity, and a portfolio that spans sonar, batteries, navigation, positioning, imaging and seabed sensors.

The stock has gone the other way. After peaking at a $7.56 close in March, KRKNF closed at $2.86 on Tuesday, down about 62% and near its 52-week low of $2.66. A soft standalone Q2, a one-time arbitration charge, analyst target cuts and a broader pullback in defense tech have all weighed on sentiment. None of that changed what Kraken now owns.

Underwater security has rarely mattered more, from mine clearance around the Strait of Hormuz to guarding ports, cables and pipelines in the Baltic. On November 24, Kraken reports Q3, its first quarter with Covelya on board. Let's take a deeper dive.