Earnings release
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Kornit Digital Reports Third Quarter 2025 Results November 5, 2025 Revenue of $53.1 million, up 5% year over year , above the midpoint of guidance Positive adjusted EBITDA of $1.1 million or 2% adjusted EBITDA margin Continued to generate cash from operations Expansion of Apollo and Atlas MAX PLUS installations , driving growth in bulk apparel production Annual recurring revenue from AIC grew to $21.5 million in Q3 and $23.1 million to date, reflecting continued adoption of Kornit’s usage-based revenue model ROSH-HA`AYIN, Israel, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (“Kornit” or the “Company”) (NASDAQ: KRNT), a global leader in sustainable, on-demand digital fashion and textile production, today announced financial results for the third quarter ended September 30, 2025. The results reflect Kornit’s consistent execution of its strategy to accelerate digital adoption in mass apparel production, expand recurring revenues under the All-Inclusive Click (AIC) model, and strengthen its leadership in replacing traditional screen printing with agile, on-demand digital solutions. “This quarter, we delivered results above the midpoint of our guidance, achieving year-over-year revenue growth and positive cash flow from operations,” said Ronen Samuel, Chief Executive Officer of Kornit Digital. “We continue to build momentum in penetrating the bulk apparel market and accelerating the replacement of traditional screen printing with our Apollo and Atlas MAX PLUS systems. In parallel, we are expanding our recurring revenues through our innovative All-Inclusive Click (AIC) model, which is gaining traction across regions and becoming the preferred business model for customers scaling digital production.” Mr. Samuel continued, “We are also extending our reach into high-potential markets such as footwear, where our breakthrough digital solution is already producing more than one million pairs of shoes for leading brands. These achievements reflect the strength of our technology, the scalability of our model, and the execution of our strategy. Kornit is executing with discipline, building a profitable, cash-generating, and recurring business that is shaping the future of on-demand fashion and textile production.” Third Quarter 2025 Results of Operations Total revenue for the third quarter of 2025 was $53.1 million compared with $50.7 million in the prior year period. GAAP gross profit margin for the third quarter of 2025 was 43.5% compared with 47.7% in the prior year period. On a non-GAAP basis, gross profit margin was 45.8% compared with 50.3% in the prior year period. GAAP operating expenses for the third quarter of 2025 were $31.1 million compared with $31.3 million in the prior year period. On a non-GAAP basis, operating expenses decreased by 3.7% to $25.8 million compared with the prior year period. GAAP net loss for the third quarter of 2025 was $2.6 million, or ($0.06) per share, compared with net loss of $0.9 million, or ($0.02) per share, for the third quarter of 2024. Non-GAAP net income for the third quarter of 2025 was $4.2 million, or $0.09 per share, compared with non-GAAP net income of $5.5 million, or $0.11 per share, for the third quarter of 2024. Adjusted EBITDA for the third quarter of 2025 was $1.1 million compared with adjusted EBITDA of $1.5 million for the third quarter of 2024. Adjusted EBITDA margin for the third quarter of 2025 was 2.0% compared with 2.9% for the third quarter of 2024. Fourth Quarter 2025 Guidance For the fourth quarter of 2025, the Company expects revenues to be in the range of $56 million to $60 million and adjusted EBITDA margin between 7% and 10%. Third 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 1-877-407-0792 or 1-201-689-8263. The Israel Toll free number is 1-809-406-247. 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 13755781. The telephonic replay will be available approximately three hours after the completion of the live call until 11:59 pm ET on November 19, 2025. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website.
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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 Maymon Global Head of Investor Relations & Strategic Finance Jared.Maymon@Kornit.com KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) September 30, December 31, 2025 2024 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 38,255 $ 35,003 Short-term bank deposit 337,803 205,934
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Marketable securities 67,292 222,937 Trade receivables, net 64,728 65,459 Inventory 49,002 60,342 Other accounts receivable and prepaid expenses 31,593 25,714 Total current assets 588,673 615,389 LONG-TERM ASSETS: Marketable securities 46,455 48,086 Deposits and other long-term assets 14,274 10,542 Severance pay fund 361 306 Property,plant and equipment, net 65,979 59,222 Operating lease right-of-use assets 17,711 19,054 Intangible assets, net 7,194 5,721 Goodwill 29,164 29,164 Total long-term assets 181,138 172,095 Total assets 769,811 787,484 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables 5,959 9,019 Employees and payroll accruals 12,462 13,101 Deferred revenues and advances from customers 1,732 2,339 Operating lease liabilities 3,741 3,311 Other payables and accrued expenses 21,863 16,561 Total current liabilities 45,757 44,331 LONG-TERM LIABILITIES: Accrued severance pay 1,363 1,051 Operating lease liabilities 14,953 15,065 Other long-term liabilities 92 138 Total long-term liabilities 16,408 16,254 SHAREHOLDERS' EQUITY 707,646 726,899 Total liabilities and shareholders' equity $ 769,811 $ 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 Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) Revenues Products $ 38,134 $ 36,996 $ 110,412 $ 100,375 Services 15,000 13,736 38,933 42,754 Total revenues 53,134 50,732 149,345 143,129 Cost of revenues Products 16,155 14,647 49,735 43,609 Services 13,890 11,875 35,977 38,887 Total cost of revenues 30,045 26,522 85,712 82,496
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Gross profit 23,089 24,210 63,633 60,633 Operating expenses: Research and development, net 9,013 9,973 27,434 31,797 Sales and marketing 14,221 14,441 44,163 43,213 General and administrative 7,907 6,919 23,025 21,728 Total operating expenses 31,141 31,333 94,622 96,738 Operating loss (8,052) (7,123) (30,989) (36,105) Financial income, net 5,540 6,720 16,388 18,501 Loss before taxes on income (2,512) (403) (14,601) (17,604) Taxes on income 80 505 568 1,412 Net loss $ (2,592) $ (908) $ (15,169) $ (19,016) Basic loss per share $ (0.06) $ (0.02) $ (0.33) $ (0.40) Weighted average number of shares used in computing basic net loss per share 44,908,580 47,604,224 45,291,359 47,583,631 Diluted loss per share $ (0.06) $ (0.02) $ (0.33) $ (0.40) Weighted average number of shares used in computing diluted net loss per share 44,908,580 47,604,224 45,291,359 47,583,631 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 Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) Revenues $ 53,134 $ 50,732 $ 149,345 $ 143,129 GAAP cost of revenues $ 30,045 $ 26,522 $ 85,712 $ 82,496 Cost of product recorded for share-based compensation (1) (526) (502) (1,587) (1,494) Cost of service recorded for share-based compensation (1) (394) (422) (1,193) (1,294) Intangible assets amortization on cost of product (2) (152) (231) (450) (760) Intangible assets amortization on cost of service (2) (159) (160) (479) (480) Restructuring expenses (3) (29) - (1,055) (914) Non-GAAP cost of revenues $ 28,785 $ 25,207 $ 80,948 $ 77,554 GAAP gross profit $ 23,089 $ 24,210 $ 63,633 $ 60,633 Gross profit adjustments 1,260 1,315 4,764 4,942 Non-GAAP gross profit $ 24,349 $ 25,525 $ 68,397 $ 65,575
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GAAP operating expenses $ 31,141 $ 31,333 $ 94,622 $ 96,738 Share-based compensation (1) (4,704) (4,431) (13,920) (13,884) Intangible assets amortization (2) (75) (87) (223) (262) Restructuring expenses (3) (547) - (547) (757) Non-GAAP operating expenses $ 25,815 $ 26,815 $ 79,932 $ 81,835 GAAP Financial income, net $ 5,540 $ 6,720 $ 16,388 $ 18,501 Foreign exchange losses associated with ASC 842 201 441 1,736 557 Non-GAAP Financial income , net $ 5,741 $ 7,161 $ 18,124 $ 19,058 GAAP Taxes on income $ 80 $ 505 $ 568 $ 1,412 Non-cash deferred tax income - (173) - $ - Non-GAAP Taxes on income $ 80 $ 332 $ 568 $ 1,412 GAAP Net loss $ (2,592) $ (908) $ (15,169) $ (19,016) Share-based compensation (1) 5,624 5,355 16,700 16,672 Intangible assets amortization (2) 386 478 1,152 1,502 Restructuring expenses (3) 576 - 1,602 1,671 Foreign exchange losses associated with ASC 842 201 441 1,736 557 Non-cash deferred tax income - 173 - - Non-GAAP net income $ 4,195 $ 5,539 $ 6,021 $ 1,386 GAAP diluted loss per share $ (0.06) $ (0.02) $ (0.33) $ (0.40) Non-GAAP diluted income per share $ 0.09 $ 0.11 $ 0.13 $ 0.03 Weighted average number of shares Shares used in computing GAAP diluted net loss per share 44,908,580 47,604,224 45,291,359 47,583,631 Shares used in computing Non-GAAP diluted net income per share 45,241,853 49,988,803 45,701,943 49,166,345 (1) Share-based compensation Cost of product revenues $ 526 $ 502 $ 1,587 $ 1,494 Cost of service revenues 394 422 1,193 1,294 Research and development 1,194 1,384 3,609 4,055 Sales and marketing 1,730 1,650 5,098 5,016 General and administrative 1,780 1,397 5,213 4,813 $ 5,624 $ 5,355 $ 16,700 $ 16,672 (2) Intangible assets amortization Cost of product revenues $ 152 $ 231 $ 450 $ 760 Cost of service revenues 159 160 479 480 Sales and marketing 75 87 223 262 $ 386 $ 478 $ 1,152 $ 1,502 (3) Restructuring expenses Cost of product revenues $ 11 $ - $ 1,037 $ 865 Cost of service revenues 18 - 18 49 Research and development 44 - 44 235 Sales and marketing 374 - 374 190 General and administrative 129 - 129 332 $ 576 $ - $ 1,602 $ 1,671
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KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) Cash flows from operating activities: Net loss $ (2,592) $ (908) $ (15,169) $ (19,016) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 2,931 3,219 8,707 9,734 Fair value of warrants deducted from revenues - - - 3,273 Share-based compensation 5,624 5,355 16,700 16,672 Amortization of premium and accretion of discount on marketable securities, net (224) (287) (774) (278) Realized loss on sale and redemption of marketable securities (36) - (58) - Loss from disposal of property and Equipments 22 - 156 - Change in operating assets and liabilities: Trade receivables, net (271) 5,329 731 19,500 Other accounts receivables and prepaid expenses (3,007) (447) (5,879) 1,037 Inventory 675 4,094 8,275 130 Operating leases right-of-use assets and liabilities, net 231 339 1,661 (236) Deposits and other long term assets (185) (440) (3,732) (1,659) Trade payables (4,045) 227 (3,952) (1,706) Employees and payroll accruals (666) 914 988 1,436 Deferred revenues and advances from customers 166 55 (607) (617) Other payables and accrued expenses 4,885 (3,880) 6,584 (6,070) Accrued severance pay, net 874 4 257 (58) Other long - term liabilities (34) (20) (46) (80) Net cash provided by operating activities 4,348 13,554 13,842 22,062 Cash flows from investing activities: Purchase of property, plant and equipment and capitalized software development costs (3,557) (10,497) (13,136) (13,220) Proceeds from (investment in) short-term bank deposits, net (31,366) 73,995 (131,869) 66,199 Proceeds from sales and redemption of marketable securities 7,000 7,000 13,060 10,494 Proceeds from maturities of marketable securities 64,278 8,750 207,400 44,629 Investment in marketable securities (27,648) (1,282) (60,226) (45,901) Net cash provided by investing activities 8,707 77,966 15,229 62,201 Cash flows from financing activities: Exercise of employee stock options 40 115 808 122 Payments related to shares withheld for taxes (258) (296) (1,627) (1,074) Repurchase of ordinary shares - - (25,000) (9,055) Net cash used in financing activities (218) (181) (25,819) (10,007) Increase in cash and cash equivalents 12,837 91,339 3,252 74,256 Cash and cash equivalents at the beginning of the period 25,418 22,522 35,003 39,605
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Cash and cash equivalents at the end of the period $ 38,255 $ 113,861 $ 38,255 $ 113,861 Non-cash investing and financing activities: Purchase of property and equipment on credit 1,139 145 1,139 145 Inventory transferred to be used as property and equipment 346 175 3,299 1,576 Property, plant and equipment transferred to be used as inventory - - 234 320 Lease liabilities arising from obtaining right-of-use assets 175 337 1,258 (1,071) KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA (U.S. dollars in thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 (Unaudited) (Unaudited) GAAP Revenues $ 53,134 $ 50,732 $ 149,345 $ 143,129 GAAP Net loss (2,592) (908) (15,169) (19,016) Taxes on income 80 505 568 1,412 Financial income (5,540) (6,720) (16,388) (18,501) Share-based compensation 5,624 5,355 16,700 16,672 Intangible assets amortization 386 478 1,152 1,502 Restructuring expenses 576 - 1,602 1,671 Non-GAAP Operating loss (1,466) (1,290) (11,535) (16,260) Depreciation 2,545 2,741 7,555 8,232 Adjusted EBITDA $ 1,079 $ 1,451 $ (3,980) $ (8,028)