KDK Stock Forecast & Price Target

Kodiak AI Inc. is projected to achieve significant improvements in gross margins, expected to rise from minimal levels to 42% by 2026 and over 55% in 2027, driven by scale and reduced Bill of Materials (BOM) costs. Operating expenses are anticipated to increase to approximately $35 to $40 million per quarter, but this growth is expected to plateau and rise at a slower rate compared to revenue deployment forecasts in the latter half of 2026 and into 2027. Overall, revenue and customer growth are expected to accelerate in the coming quarters, presenting multiple catalysts for the company's shares, alongside a modest increase in operating expenses excluding stock compensation.

The financial outlook for Kodiak AI Inc. appears negatively affected by anticipated declines in average revenue per vehicle due to an increase in customers opting for a per-mile licensing model and the pressure from the ongoing Bill of Materials (BOM) reduction plan, which is leading to decreased prices for key components. Supply chain disruptions pose an additional risk, potentially undermining the company's growth projections and financial stability. Furthermore, the necessity for additional cash to support expansion efforts raises concerns, particularly given the challenges the company may face in securing funds on favorable terms.