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Kornit Digital Reports Third Quarter 2025 Results

1. Q3 revenue increased 5% YoY to $53.1 million. 2. Adjusted EBITDA was $1.1 million, reflecting a 2% margin. 3. Annual recurring revenue rose to $21.5 million in Q3. 4. Expansion into footwear market shows significant growth potential. 5. Positive cash flow indicates strong operational management.

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Why Bullish?

The strong revenue growth and positive EBITDA indicate healthy financial performance. This is significant, as previous performance issues had put pressure on the stock.

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The article highlights financial improvements and growth potential, which are crucial for investor sentiment and market valuation.

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Expectations of future revenue growth and market expansion may lead to immediate investor interest. Historical spikes in stock prices have followed similar growth announcements.

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November 05, 2025 07:15 ET  | Source: Kornit Digital Ltd Revenue of $53.1 million, up 5% year over year, above the midpoint of guidancePositive adjusted EBITDA of $1.1 million or 2% adjusted EBITDA marginContinued to generate cash from operationsExpansion of Apollo and Atlas MAX PLUS installations, driving growth in bulk apparel productionAnnual 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 FinanceJared.Maymon@Kornit.com KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED 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 deposit337,803  205,934 Marketable securities67,292  222,937 Trade receivables, net64,728  65,459 Inventory49,002  60,342 Other accounts receivable and prepaid expenses31,593  25,714 Total current assets588,673  615,389       LONG-TERM ASSETS:     Marketable securities46,455  48,086 Deposits and other long-term assets14,274  10,542 Severance pay fund361  306 Property,plant and equipment, net65,979  59,222 Operating lease right-of-use assets17,711  19,054 Intangible assets, net7,194  5,721     Goodwill29,164  29,164 Total long-term assets181,138  172,095       Total assets769,811  787,484             LIABILITIES AND SHAREHOLDERS' EQUITY     CURRENT LIABILITIES:     Trade payables5,959  9,019 Employees and payroll accruals12,462  13,101 Deferred revenues and advances from customers1,732  2,339 Operating lease liabilities3,741  3,311 Other payables and accrued expenses21,863  16,561 Total current liabilities45,757  44,331       LONG-TERM LIABILITIES:     Accrued severance pay1,363  1,051 Operating lease liabilities14,953  15,065 Other long-term liabilities92  138 Total long-term liabilities16,408  16,254       SHAREHOLDERS' EQUITY707,646  726,899       Total liabilities and shareholders' equity$769,811  $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 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 SUBSIDIARIESRECONCILIATION 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                 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  $1,671  KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(U.S. dollars in thousands)     Three Months Ended Nine Months Ended September 30, September 30,  2025   2024   2025   2024  (Unaudited) (Unaudited)Cash flows from operating activities:               Net loss$(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 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 SUBSIDIARIESRECONCILIATION 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)

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