Kornit Digital Reports Second Quarter 2025 Results
Second quarter revenues of $49.8 million, in line with previous guidance
Second quarter GAAP net loss of $7.5 million; non-GAAP net income of $1.2 million
Continued to generate cash from operations
Reported annual recurring revenue from AIC contracts of $18.9 million, reflecting continued adoption of this new model, particularly from screen-printing customers.
ROSH-HA`AYIN, Israel, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. ("Kornit" or the "Company") (NASDAQ:KRNT), a global leader in sustainable, on-demand, digital fashion and textile production technologies, today reported results for the second quarter ended June 30, 2025.
"We delivered second quarter results within our guidance range in a challenging market environment, reflecting ongoing progress in transforming our business toward recurring revenue and long-term growth. While consumables revenue came in softer due to inventory adjustments among certain customers, system sales and AIC adoption maintained momentum. We saw particularly positive traction from screen-printing customers embracing digital for the first time, for a variety of run lengths, as well as capacity expansions from customized design customers," said Ronen Samuel, Kornit's Chief Executive Officer.
Mr. Samuel continued, "Despite a more modest outlook for the second half, we remain focused on the execution of our strategy. Our priorities are clear: scaling adoption of the Apollo and AIC, growing the number of screen-printing customers we serve, and maintaining both adjusted EBITDA profitability and operating cash flow generation. With disciplined execution and continued focus, we remain confident these efforts will lay the foundation for a more resilient, scalable, and profitable business."
Second Quarter 2025 Results of Operations
Total revenue for the second quarter of 2025 was $49.8 million compared with $48.6 million in the prior year period.
GAAP gross profit margin for the second quarter of 2025 was 41.7% compared with 45.8% in the prior year period. On a non-GAAP basis, gross profit margin was 46.3% compared with 48.6% in the prior year period.
GAAP operating expenses for the second quarter of 2025 were $31.6 million compared with $33.0 million in the prior year period. On a non-GAAP basis, operating expenses decreased by 4.4% to $26.7 million compared with the prior year period.
GAAP net loss for the second quarter of 2025 was $7.5 million, or ($0.17) per basic share, compared with net loss of $4.9 million, or ($0.10) per basic share, for the second quarter of 2024.
Non-GAAP net income for the second quarter of 2025 was $1.2 million, or $0.03 per share, compared with non-GAAP net income of $1.1 million, or $0.02 per share, for the second quarter of 2024.
Adjusted EBITDA loss for the second quarter of 2025 was $1.2 million compared with adjusted EBITDA loss of $1.6 million for the second quarter of 2024. Adjusted EBITDA margin for the second quarter of 2025 was negative 2.3% compared with negative 3.4% for the second quarter of 2024.
Third Quarter 2025 Guidance
For the Third quarter of 2025, the Company expects revenues to be in the range of $49 million to $55 million and adjusted EBITDA margin between negative 3% and 3%.
Second Quarter Earnings Conference Call Information
The Company will host a conference call today at 8:30 a.m. ET, or 3:30 p.m. Israel time, to discuss the results, followed by a question-and-answer session with the investor community.
A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-800-579-2543 or 1-785-424-1789. The Israel Toll free number is 180-925-6145. The conference ID required to join the call is KORNIT.
To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671 and enter access ID 11159631. The telephonic replay will be available approximately three hours after the completion of the live call until 11:59 pm ET on August 20, 2025. The call will also be available for replay via the webcast link on Kornit's Investor Relations website.
About Kornit Digital
Kornit Digital (NASDAQ:KRNT) is a worldwide market leader in sustainable, on-demand, digital fashion, and textile production technologies. The company offers end-to-end solutions including digital printing systems, inks, consumables, software, and fulfillment services through its global fulfillment network. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit Digital serves customers in more than 100 countries and states worldwide. To learn more about how Kornit Digital is boldly transforming the world of fashion and textiles, visit www.kornit.com.
Forward Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as "will," "expects," "anticipates," "continue," "believes," "should," "intended," "guidance," "preliminary," "future," "planned," or other words. These forward-looking statements include, but are not limited to, statements relating to the Company's objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events, or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: the duration and severity of adverse macro-economic headwinds that were caused by inflationary pressures and higher interest rates, which have impacted, and may continue to impact, in an adverse manner, the Company's operations, financial position and cash flows, in part due to the adverse impact on the Company's customers and suppliers; the Company's degree of success in developing, introducing and selling new or improved products and product enhancements including specifically the Company's Poly Pro and Presto products, and the Company's Apollo direct-to-garment platform; the extent of the Company's ability to consummate sales to large accounts with multi-system delivery plans; the degree of the Company's ability to fill orders for its systems and consumables; the extent of the Company's ability to increase sales of its systems, ink and consumables; the extent of the Company's ability to leverage its global infrastructure build-out; the development of the market for digital textile printing; the availability of alternative ink; competition; sales concentration; changes to the Company's relationships with suppliers; the extent of the Company's success in marketing; and those additional factors referred to under "Risk Factors" in Item 3.D of the Company's Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on March 28, 2025. Any forward-looking statements in this press release are made as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Discussion Disclosure
The Company presents certain non-GAAP financial measures, in this press release and in the accompanying conference call to discuss the Company's quarterly results. These non-GAAP financial measures reflect adjustments to corresponding GAAP financial measures in order to exclude the impact of the following: share-based compensation expenses; amortization of intangible assets; restructuring expenses; foreign exchange differences associated with ASC 842; and non-cash deferred tax income.
The Company defines "Adjusted EBITDA" as non-GAAP operating income (loss), which reflects the adjustments described in the preceding paragraph, as further adjusted to exclude depreciation expense.
The purpose of the foregoing non-GAAP financial measures is to convey the Company's performance exclusive of non-cash charges and other items that are considered by management to be outside of the Company's core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage, and evaluate the Company's business and make operating decisions, and the Company believes that they are useful to investors as a consistent and comparable measure of the ongoing performance of the Company's business. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
The reconciliation tables included below present a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures.
Investor Contact:Jared MaymonGlobal Head of Investor Relations & Strategic
KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
June 30,
December 31,
2025
2024
(Unaudited)
(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
25,418
$
35,003
Short-term bank deposit
306,437
205,934
Marketable securities
99,757
222,937
Trade receivables, net
64,457
65,459
Inventory
50,023
60,342
Other accounts receivable and prepaid expenses
28,586
25,714
Total current assets
574,678
615,389
LONG-TERM ASSETS:
Marketable securities
56,991
48,086
Deposits and other long-term assets
14,089
10,542
Severance pay fund
344
306
Property, plant and equipment, net
67,296
59,222
Operating lease right-of-use assets
18,443
19,054
Intangible assets, net
4,955
5,721
Goodwill
29,164
29,164
Total long-term assets
191,282
172,095
Total assets
765,960
787,484
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables
10,032
9,019
Employees and payroll accruals
13,386
13,101
Deferred revenues and advances from customers
1,566
2,339
Operating lease liabilities
3,670
3,311
Other payables and accrued expenses
16,434
16,561
Total current liabilities
45,088
44,331
LONG-TERM LIABILITIES:
Accrued severance pay
472
1,051
Operating lease liabilities
15,525
15,065
Other long-term liabilities
126
138
Total long-term liabilities
16,123
16,254
SHAREHOLDERS' EQUITY
704,749
726,899
Total liabilities and shareholders' equity
$
765,960
$
787,484
KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
Revenues
Products
$
38,413
$
34,366
$
72,278
$
63,379
Services
11,341
14,255
23,933
29,018
Total revenues
49,754
48,621
96,211
92,397
Cost of revenues
Products
17,967
13,271
33,580
28,962
Services
11,043
13,066
22,087
27,012
Total cost of revenues
29,010
26,337
55,667
55,974
Gross profit
20,744
22,284
40,544
36,423
Operating expenses:
Research and development, net
9,143
10,472
18,421
21,824
Sales and marketing
14,993
14,976
29,942
28,772
General and administrative
7,474
7,532
15,118
14,809
Total operating expenses
31,610
32,980
63,481
65,405
Operating loss
(10,866
)
(10,696
)
(22,937
)
(28,982
)
Financial income, net
3,465
6,435
10,848
11,781
Loss before taxes on income
(7,401
)
(4,261
)
(12,089
)
(17,201
)
Taxes on income
117
648
488
907
Net loss
$
(7,518
)
$
(4,909
)
$
(12,577
)
$
(18,108
)
Basic loss per share
$
(0.17
)
$
(0.10
)
$
(0.28
)
$
(0.38
)
Weighted average number of shares
used in computing basic net loss per share
45,164,493
47,535,212
45,482,748
47,573,334
Diluted loss per share
$
(0.17
)
$
(0.10
)
$
(0.28
)
$
(0.38
)
Weighted average number of shares
used in computing diluted net loss per share
45,164,493
47,535,212
45,482,748
47,573,334
KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
