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.
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)
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
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
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
