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Kornit Digital Reports Second Quarter 2025 Results

1. Kornit reported Q2 revenues of $49.8 million, consistent with guidance. 2. GAAP net loss for the quarter was $7.5 million, worse than last year. 3. Non-GAAP net income reached $1.2 million, reflecting operational cash generation. 4. Strong demand from screen-printing customers helped sustain system sales. 5. Q3 revenue guidance projected between $49 million and $55 million.

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$19.1808/06 07:28 AM EDTEvent Start
$14.48508/07 02:42 PM EDTLatest Updated
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FAQ

Why Neutral?

While revenues met expectations, losses exceeded those of the previous year, which may concern investors. Historical context shows that similar patterns can lead to stock price stagnation or modest declines.

How important is it?

Financial performance under expectation with losses is likely to dissuade bullish sentiments in the immediate aftermath, but strong management strategies and customer traction could stabilize or recover stream.

Why Short Term?

Immediate investor sentiment may be mixed due to current losses impacting price, yet operational insights could foster confidence quickly depending on upcoming performance.

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BERYWSTGFLT
August 06, 2025 07:25 ET  | Source: Kornit Digital Ltd Second quarter revenues of $49.8 million, in line with previous guidanceSecond quarter GAAP net loss of $7.5 million; non-GAAP net income of $1.2 millionContinued to generate cash from operationsReported 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 FinanceJared.Maymon@Kornit.com KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands)   June 30, December 31,  2025 2024  (Unaudited) (Audited)ASSETS    CURRENT ASSETS:    Cash and cash equivalents $25,418 $35,003Short-term bank deposit 306,437 205,934Marketable securities 99,757 222,937Trade receivables, net 64,457 65,459Inventory 50,023 60,342Other accounts receivable and prepaid expenses 28,586 25,714Total current assets 574,678 615,389     LONG-TERM ASSETS:    Marketable securities 56,991 48,086Deposits and other long-term assets 14,089 10,542Severance pay fund 344 306Property, plant and equipment, net 67,296 59,222Operating lease right-of-use assets 18,443 19,054Intangible assets, net 4,955 5,721Goodwill 29,164 29,164Total long-term assets 191,282 172,095     Total assets 765,960 787,484          LIABILITIES AND SHAREHOLDERS' EQUITY    CURRENT LIABILITIES:    Trade payables 10,032 9,019Employees and payroll accruals 13,386 13,101Deferred revenues and advances from customers 1,566 2,339Operating lease liabilities 3,670 3,311Other payables and accrued expenses 16,434 16,561Total current liabilities 45,088 44,331     LONG-TERM LIABILITIES:    Accrued severance pay 472 1,051Operating lease liabilities 15,525 15,065Other long-term liabilities 126 138Total 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 SUBSIDIARIESCONSOLIDATED 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 SUBSIDIARIESRECONCILIATION 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)         Revenues$49,754  $48,621  $96,211  $92,397                   GAAP cost of revenues$29,010  $26,337  $55,667  $55,974 Cost of product recorded for share-based compensation (1) (542)  (490)  (1,061)  (992)Cost of service recorded for share-based compensation (1) (404)  (453)  (799)  (872)Intangible assets amortization on cost of product (2) (150)  (264)  (298)  (529)Intangible assets amortization on cost of service (2) (160)  (160)  (320)  (320)Restructuring expenses (3) (1,026)  -   (1,026)  (914)Non-GAAP cost of revenues$26,728  $24,970  $52,163  $52,347                   GAAP gross profit$20,744  $22,284  $40,544  $36,423 Gross profit adjustments 2,282   1,367   3,504   3,627 Non-GAAP gross profit$23,026  $23,651  $44,048  $40,050                   GAAP operating expenses$31,610  $32,980  $63,481  $65,405 Share-based compensation (1) (4,810)  (4,926)  (9,216)  (9,453)Intangible assets amortization (2) (74)  (87)  (148)  (175)Restructuring expenses (3) -   -   -   (757)Non-GAAP operating expenses$26,726  $27,967  $54,117  $55,020                   GAAP Financial income, net$3,465  $6,435  $10,848  $11,781 Foreign exchange losses associated with ASC 842 1,578   (269)  1,535   116 Non-GAAP Financial income , net$5,043  $6,166  $12,383  $11,897                   GAAP Taxes on income$117  $648  $488  $907 Non-cash deferred tax income -   86   -  $173 Non-GAAP Taxes on income$117  $734  $488  $1,080                   GAAP Net loss$(7,518) $(4,909) $(12,577) $(18,108)Share-based compensation (1) 5,756   5,869   11,076   11,317 Intangible assets amortization (2) 384   511   766   1,024 Restructuring expenses (3) 1,026   -   1,026   1,671 Foreign exchange losses associated with ASC 842 1,578   (269)  1,535   116 Non-cash deferred tax income -   (86)  -   (173)Non-GAAP net income (loss)$1,226  $1,116  $1,826  $(4,153)         GAAP diluted loss per share$(0.17) $(0.10) $(0.28) $(0.38)         Non-GAAP diluted income (loss) per share$0.03  $0.02  $0.04  $(0.09)         Weighted average number of shares                Shares used in computing GAAP diluted net loss per share 45,164,493   47,535,212   45,482,748   47,573,334          Shares used in computing Non-GAAP diluted net income (loss) per share 45,508,379   49,898,775   45,931,988   47,573,334                   (1)Share-based compensation         Cost of product revenues$542  $490  $1,061  $992  Cost of service revenues 404   453   799   872  Research and development 1,213   1,376   2,415   2,671  Sales and marketing 1,831   1,784   3,368   3,366  General and administrative 1,766   1,766   3,433   3,416   $5,756  $5,869  $11,076  $11,317 (2)Intangible assets amortization        Cost of product revenues$150  $264  $298  $529  Cost of service revenues 160   160   320   320  Sales and marketing 74   87   148   175   $384  $511  $766  $1,024          (3)Restructuring expenses        Cost of product revenues$1,026  $-  $1,026  $865  Cost of service revenues -   -   -   49  Research and development -   -   -   235  Sales and marketing -   -   -   190  General and administrative -   -   -   332   $1,026  $-  $1,026  $1,671                   KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands)     Three Months Ended Six Months Ended June 30, June 30,  2025   2024   2025   2024  (Unaudited) (Unaudited)Cash flows from operating activities:               Net loss$(7,518) $(4,909) $(12,577) $(18,108)Adjustments to reconcile net loss to net cash provided by operating activities:       Depreciation and amortization 2,930   3,191   5,776   6,515 Fair value of warrants deducted from revenues -   (313)  -   3,273 Share-based compensation 5,756   5,869   11,076   11,317 Amortization of premium and accretion of discount on marketable securities, net (246)  16   (550)  9 Realized loss on sale and redemption of marketable securities -   -   (22)  - Loss from disposal of property and Equipments 134   -   134   - Change in operating assets and liabilities:       Trade receivables, net (3,046)  1,266   1,002   14,171 Other accounts receivables and prepaid expenses (1,507)  970   (2,872)  1,484 Inventory 5,280   (3,868)  7,600   (3,964)Operating leases right-of-use assets and liabilities, net 1,590   (488)  1,430   (575)Deposits and other long term assets (3,234)  (511)  (3,547)  (1,219)Trade payables 5,403   1,832   93   (1,933)Employees and payroll accruals (438)  1,674   1,654   522 Deferred revenues and advances from customers (227)  (364)  (773)  (672)Other payables and accrued expenses (531)  123   1,699   (2,190)Accrued severance pay, net (588)  (30)  (617)  (62)Other long-term liabilities (28)  26   (12)  (60)Net cash provided by operating activities 3,730   4,484   9,494   8,508         Cash flows from investing activities:               Purchase of property, plant and equipment (5,808)  (1,439)  (9,579)  (2,723)Proceeds from (investment in) short-term bank deposits, net (79,503)  16,601   (100,503)  (7,796)Proceeds from sales and redemption of marketable securities 3,260   -   6,060   3,494 Proceeds from maturities of marketable securities 77,802   24,581   143,122   35,879 Investment in marketable securities (6,763)  (26,602)  (32,578)  (44,619)Net cash provided by (used in) investing activities (11,012)  13,141   6,522   (15,765)                        Cash flows from financing activities:               Exercise of employee stock options 239   7   768   7 Payments related to shares withheld for taxes (392)  (184)  (1,369)  (778)Repurchase of ordinary shares (23,176)  (1,427)  (25,000)  (9,055)Net cash used in financing activities (23,329)  (1,604)  (25,601)  (9,826)                        Increase (decrease) in cash and cash equivalents (30,611)  16,021   (9,585)  (17,083)Cash and cash equivalents at the beginning of the period 56,029   6,501   35,003   39,605 Cash and cash equivalents at the end of the period$25,418  $22,522  $25,418  $22,522                         Non-cash investing and financing activities:               Purchase of property and equipment on credit 1,167   105   1,167   105 Inventory transferred to be used as property and equipment 2,548   455   2,953   1,401 Property, plant and equipment transferred to be used as inventory 234   166   234   320 Lease liabilities arising from obtaining right-of-use assets 561   338   1,083   (1,408)             KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESRECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA(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)         GAAP Revenues $49,754  $48,621  $96,211  $92,397          GAAP Net loss  (7,518)  (4,909)  (12,577)  (18,108)Taxes on income  117   648   488   907 Financial income  (3,465)  (6,435)  (10,848)  (11,781)Share-based compensation  5,756   5,869   11,076   11,317 Intangible assets amortization  384   511   766   1,024 Restructuring expenses  1,026   -   1,026   1,671 Non-GAAP Operating loss  (3,700)  (4,316)  (10,069)  (14,970)Depreciation  2,546   2,680   5,010   5,491 Adjusted EBITDA $(1,154) $(1,636) $(5,059) $(9,479)         

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