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Kornit Digital Reports Fourth Quarter and Full Year 2025 Results

Returned to revenue growth in 2025 with positive adjusted EBITDA and operating cash flow

Successful peak season drives 11% increase in full-year impressions

Ended 2025 with ~$25 million in ARR from AIC; Building a more recurring, predictable business model

ROSH-HA`AYIN, Israel, Feb. 11, 2026 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (“Kornit” or the “Company”) (Nasdaq: KRNT), a global leader in sustainable, on-demand, digital fashion and textile production, today reported financial results for the fourth quarter and full year ended December 31, 2025. The results reflect Kornit’s progress in accelerating digital adoption in mass apparel production, expanding recurring revenues under the Company’s All-Inclusive Click (AIC) model, and strengthening its industry leadership position by replacing traditional screen printing with agile, on-demand digital solutions.

“The fourth quarter capped a year of disciplined execution. We returned to full-year revenue growth, achieved positive adjusted EBITDA, and generated strong operating cash flow,” said Ronen Samuel, Chief Executive Officer of Kornit Digital. “A successful peak season helped drive full year impressions growth of 11%, demonstrating higher utilization across our installed base and increased adoption of digital production for longer runs. We exited the year with approximately $25 million in Annualized Recurring Revenue (ARR) from our All-Inclusive Click (AIC) program, and $15 million in AIC revenue for the full year, underscoring accelerating customer adoption.”

Mr. Samuel concluded, “We are entering 2026 with a growing pipeline of opportunities, and better visibility for the year. We expect to unveil breakthrough innovations this year designed to expand our addressable markets, accelerate digital adoption, and enable our customers to capture new growth opportunities. Our priorities remain clear: driving incremental impressions from the screen market, expanding the AIC program, and $15 million in AIC revenue for the full year, underscoring accelerating customer adoption.”

Fourth Quarter 2025 Results of Operations

  • Total revenue for the fourth quarter of 2025 was $58.9 million compared with $60.7 million in the prior year period.
  • GAAP gross profit margin for the fourth quarter of 2025 was 48.7% compared with 51.3% in the prior year period. On a non-GAAP basis, gross profit margin was 50.7% compared with 55.1% in the prior year period.
  • GAAP operating expenses for the fourth quarter of 2025 were $32.2 million compared with $32.3 million in the prior year period. On a non-GAAP basis, operating expenses decreased by 3.1% to $27.1 million compared with the prior year period.
  • GAAP net income for the fourth quarter of 2025 was $1.7 million, or $0.03 per diluted share, compared with net income of $2.2 million, or $0.05 per diluted share, in the prior year period.
  • Non-GAAP net income for the fourth quarter of 2025 was $8.3 million, or $0.18 per diluted share, compared with non-GAAP net income of $8.7 million, or $0.18 per diluted share, in the prior year period.
  • Adjusted EBITDA for the fourth quarter of 2025 was $5.5 million compared with adjusted EBITDA of $8.4 million for the fourth quarter of 2024. Adjusted EBITDA margin for the fourth quarter of 2025 was 9.3% compared with 13.8% in the prior year period.

Full Year 2025 Results of Operations

  • Total revenue for the full year 2025 was $208.2 million compared with $203.8 million in the prior year period.
  • GAAP gross profit margin for the full year 2025 was 44.3% compared with 45.0% in the prior year period. On a non-GAAP basis, gross profit margin was 47.2% compared with 48.6% in the prior year period.
  • GAAP operating expenses for the full year 2025 were $126.8 million compared with $129.1 million in the prior year. On a non-GAAP basis, operating expenses decreased by 2.5% to $107.1 million compared with the prior year period.
  • GAAP net loss for the full year 2025 was $13.5 million, or ($0.30) per diluted share, compared with net loss of $16.8 million, or ($0.35) per diluted share, for the full year 2024.
  • Non-GAAP net income for the full year 2025 was $14.4 million, or $0.31 per diluted share, compared with non-GAAP net income of $10.1 million, or $0.20 per diluted share for the full year 2024.
  • Adjusted EBITDA for the full year 2025 was $1.5 million compared with adjusted EBITDA of $0.3 million for the full year 2024. Adjusted EBITDA margin for the full year 2025 was 0.7% compared with 0.2% for the full year 2024.

First Quarter 2026 Guidance

For the first quarter of 2026, the Company currently expects revenues to be in the range of $45 million to $49 million and an adjusted EBITDA margin between negative 10% to negative 4% of revenue.

Earnings Conference Call Information

The Company will host a conference call today, February 11, 2026, 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 toll-free Israeli 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 confirmation code 13758004. The telephone replay will be available approximately three hours after the completion of the live call until 11:59 pm ET on February 25, 2026. 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. To learn more, 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,” “believes,” “intends,” “planned,” or other similar words. These forward-looking statements include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, including the Company’s AIC program, statements regarding the Company’s results of operations and financial condition, including the Company’s guidance for the first quarter of 2026, and all statements that address developments that the Company expects 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 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 increase sales of its systems, ink and consumables; the extent of the Company’s ability to continue to grow customer adoption of the AIC model; the development of the market for digital textile printing generally; the Company’s securities class action litigation expenses; 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, and will not be updated by the Company, 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 to the Company’s GAAP net income (loss), 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 Contacts

Andrew G. Backman
Chief Capital Markets Officer
Andrew.Backman@kornit.com

KORNIT DIGITAL LTD.  
AND ITS SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
(U.S. dollars in thousands)  
           
    December 31,   December 31,  
    2025
  2024
 
    (Unaudited)   (Audited)  
ASSETS          
CURRENT ASSETS:          
Cash and cash equivalents   $ 35,476   $ 35,003  
Short-term bank deposit     368,446     205,934  
Marketable securities     53,926     222,937  
Trade receivables, net     60,796     65,459  
Inventory     47,211     60,342  
Other accounts receivable and prepaid expenses     29,661     25,714  
Total current assets     595,516     615,389  
           
LONG-TERM ASSETS:          
Marketable securities     33,332     48,086  
Deposits and other long-term assets     16,018     10,542  
Severance pay fund     385     306  
Property, plant and equipment, net     69,492     59,222  
Operating lease right-of-use assets     17,174     19,054  
Intangible assets, net     9,429     5,721  
Goodwill     29,164     29,164  
Total long-term assets     174,994     172,095  
           
Total assets     770,510     787,484  
           
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
CURRENT LIABILITIES:          
Trade payables     6,059     9,019  
Employees and payroll accruals     13,214     13,101  
Deferred revenues and advances from customers     1,529     2,339  
Operating lease liabilities     3,886     3,311  
Other payables and accrued expenses     17,305     16,561  
Total current liabilities     41,993     44,331  
           
LONG-TERM LIABILITIES:          
Accrued severance pay     1,155     1,051  
Operating lease liabilities     14,727     15,065  
Other long-term liabilities     62     138  
Total long-term liabilities     15,944     16,254  
           
SHAREHOLDERS' EQUITY     712,573     726,899  
           
Total liabilities and shareholders' equity   $ 770,510   $ 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   Year Ended
  December 31,   December 31,
    2025       2024       2025       2024  
  (Unaudited)   (Unaudited)   (Audited)
               
Revenues              
Products $ 45,674     $ 47,711     $ 156,086     $ 148,086  
Services   13,181       12,985       52,114       55,739  
Total revenues   58,855       60,696       208,200       203,825  
               
Cost of revenues              
Products   17,733       18,088       67,468       61,697  
Services   12,489       11,479       48,466       50,366  
Total cost of revenues   30,222       29,567       115,934       112,063  
               
Gross profit   28,633       31,129       92,266       91,762  
               
Operating expenses:              
Research and development, net   10,297       9,781       37,731       41,578  
Sales and marketing   14,559       15,200       58,722       58,413  
General and administrative   7,360       7,358       30,385       29,086  
Total operating expenses   32,216       32,339       126,838       129,077  
               
Operating loss   (3,583 )     (1,210 )     (34,572 )     (37,315 )
               
Financial income, net   5,531       3,849       21,919       22,350  
Income (loss) before taxes on income   1,948       2,639       (12,653 )     (14,965 )
               
Taxes on income   297       423       865       1,835  
Net income (loss) $ 1,651     $ 2,216     $ (13,518 )   $ (16,800 )
               
Basic income (loss) per share $ 0.04     $ 0.05     $ (0.30 )   $ (0.35 )
               
               
Weighted average number of shares              
used in computing basic net income (loss) per share   45,103,991       47,180,390       45,244,517       47,482,820  
               
               
Diluted income (loss) per share $ 0.03     $ 0.05     $ (0.30 )   $ (0.35 )
               
               
Weighted average number of shares              
used in computing diluted net income (loss) per share   47,439,631       48,222,449       45,244,517       47,482,820  
               


       
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   Year Ended
    December 31,   December 31,
      2025       2024       2025       2024  
    (Unaudited)   (Unaudited)
                 
Revenues $ 58,855     $ 60,696     $ 208,200     $ 203,825  
                 
                 
GAAP cost of revenues $ 30,222     $ 29,567     $ 115,934     $ 112,063  
Cost of product recorded for share-based compensation (1)   (508 )     (524 )     (2,095 )     (2,018 )
Cost of service recorded for share-based compensation (1)   (363 )     (409 )     (1,556 )     (1,703 )
Intangible assets amortization on cost of product (2)   (151 )     (176 )     (601 )     (936 )
Intangible assets amortization on cost of service (2)   (161 )     (160 )     (640 )     (640 )
Restructuring expenses (3)   -       (1,067 )     (1,055 )     (1,981 )
Non-GAAP cost of revenues $ 29,039     $ 27,231     $ 109,987     $ 104,785  
                 
                 
GAAP gross profit $ 28,633     $ 31,129     $ 92,266     $ 91,762  
Gross profit adjustments   1,183       2,336       5,947       7,278  
Non-GAAP gross profit $ 29,816     $ 33,465     $ 98,213     $ 99,040  
                 
                 
GAAP operating expenses $ 32,216     $ 32,339     $ 126,838     $ 129,077  
Share-based compensation (1)   (4,372 )     (4,151 )     (18,292 )     (18,035 )
Intangible assets amortization (2)   (74 )     (88 )     (297 )     (350 )
Restructuring expenses (3)   (633 )     (105 )     (1,180 )     (862 )
Non-GAAP operating expenses $ 27,137     $ 27,995     $ 107,069     $ 109,830  
                 
                 
GAAP Financial income, net $ 5,531     $ 3,849     $ 21,919     $ 22,350  
Foreign exchange income (losses) associated with ASC 842   419       (169 )     2,155       388  
Non-GAAP Financial income, net $ 5,950     $ 3,680     $ 24,074     $ 22,738  
                 
                 
GAAP Taxes on income $ 297     $ 423     $ 865     $ 1,835  
Non-GAAP Taxes on income $ 297     $ 423     $ 865     $ 1,835  
                 
                 
GAAP Net income (loss) $ 1,651     $ 2,216     $ (13,518 )   $ (16,800 )
Share-based compensation (1)   5,243       5,084       21,943       21,756  
Intangible assets amortization (2)   386       424       1,538       1,926  
Restructuring expenses (3)   633       1,172       2,235       2,843  
Foreign exchange income (losses) associated with ASC 842   419       (169 )     2,155       388  
Non-GAAP net income $ 8,332     $ 8,727     $ 14,353     $ 10,113  
                 
GAAP diluted income (loss) per share $ 0.03     $ 0.05     $ (0.30 )   $ (0.35 )
                 
Non-GAAP diluted income per share $ 0.18     $ 0.18     $ 0.31     $ 0.20  
                 
Weighted average number of shares              
                 
Shares used in computing GAAP diluted net income (loss) per share   47,439,631       48,222,449       45,244,517       47,482,820  
                 
Shares used in computing Non-GAAP diluted net income per share   47,439,631       49,868,143       46,136,365       49,341,794  
                 
                 
(1) Share-based compensation              
  Cost of product revenues $ 508     $ 524     $ 2,095     $ 2,018  
  Cost of service revenues   363       409       1,556       1,703  
  Research and development   1,168       1,255       4,777       5,310  
  Sales and marketing   1,585       1,212       6,683       6,228  
  General and administrative   1,619       1,684       6,832       6,497  
    $ 5,243     $ 5,084     $ 21,943     $ 21,756  
(2) Intangible assets amortization              
  Cost of product revenues $ 151     $ 176     $ 601     $ 936  
  Cost of service revenues   161       160       640       640  
  Sales and marketing   74       88       297       350  
    $ 386     $ 424     $ 1,538     $ 1,926  
                 
(3) Restructuring expenses              
  Cost of product revenues $ -     $ 818     $ 1,037     $ 1,683  
  Cost of service revenues   -       249       18       298  
  Research and development   -       -       44       235  
  Sales and marketing   276       -       650       190  
  General and administrative   357       105       486       437  
    $ 633     $ 1,172     $ 2,235     $ 2,843  
                 


               
               
KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
       
  Three Months Ended   Year Ended
  December 31,   December 31,
    2025       2024       2025       2024  
  (Unaudited)   (Unaudited) (Audited)
Cash flows from operating activities:              
               
Net income (loss) $ 1,651     $ 2,216     $ (13,518 )   $ (16,800 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:              
Depreciation and amortization   3,190       3,313       11,897       13,047  
Restructuring and other charges   856       1,172       856       1,172  
Fair value of warrants deducted from revenues   -       -       -       3,273  
Share-based compensation   5,243       5,084       21,943       21,756  
Amortization of premium and accretion of discount on marketable securities, net   (179 )     (230 )     (953 )     (389 )
Realized loss on sale and redemption of marketable securities   -       (45 )     (58 )     (164 )
Loss from disposal of property and Equipments   117       -       273       -  
Change in operating assets and liabilities:              
Trade receivables, net   3,932       8,673       4,663       28,173  
Other accounts receivables and prepaid expenses   1,339       1,795       (4,540 )     2,832  
Inventory   1,402       2,875       9,677       3,005  
Operating leases right-of-use assets and liabilities, net   456       (266 )     2,117       (502 )
Deposits and other long term assets   (1,744 )     (674 )     (5,476 )     (2,333 )
Trade payables   165       3,856       (3,787 )     2,150  
Employees and payroll accruals   992       1,020       1,980       2,456  
Deferred revenues and advances from customers   (203 )     798       (810 )     181  
Other payables and accrued expenses   (6,348 )     (2,950 )     236       (9,020 )
Accrued severance pay, net   (232 )     6       25       (52 )
Other long - term liabilities   (30 )     20       (76 )     (60 )
Net cash provided by operating activities   10,607       26,663       24,449       48,725  
               
Cash flows from investing activities:              
               
Purchase of property, plant and equipment and capitalized software development costs   (8,138 )     (1,920 )     (21,274 )     (15,140 )
Proceeds from (investment in) short-term bank deposits, net   (30,643 )     (36,533 )     (162,512 )     29,666  
Proceeds from sales and redemption of marketable securities   11,765       12,500       24,825       22,994  
Proceeds from maturities of marketable securities   14,920       12,012       222,320       56,641  
Investment in marketable securities   -       (16,772 )     (60,226 )     (62,673 )
Net cash provided by (used in) investing activities   (12,096 )     (30,713 )     3,133       31,488  
               
               
               
Cash flows from financing activities:              
               
Exercise of employee stock options   -       594       808       716  
Payments related to shares withheld for taxes   (240 )     (402 )     (1,867 )     (1,476 )
Repurchase of ordinary shares   (1,050 )     (75,000 )     (26,050 )     (84,055 )
Net cash used in financing activities   (1,290 )     (74,808 )     (27,109 )     (84,815 )
               
               
               
Increase (decrease) in cash and cash equivalents   (2,779 )     (78,858 )     473       (4,602 )
Cash and cash equivalents at the beginning of the period   38,255       113,861       35,003       39,605  
Cash and cash equivalents at the end of the period $ 35,476     $ 35,003     $ 35,476     $ 35,003  
               
               
               
Non-cash investing and financing activities:              
               
Purchase of property and equipment on credit   1,074       247       1,074       247  
Inventory transferred to be used as property and equipment   445       3,156       3,744       4,732  
Property, plant and equipment transferred to be used as inventory   56       47       290       367  
Lease liabilities arising from obtaining right-of-use assets   372       623       1,630       (448 )
               


       
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   Year Ended
    December 31,   December 31,
      2025       2024       2025       2024  
    (Unaudited)   (Unaudited)
                 
GAAP Revenues   $ 58,855     $ 60,696     $ 208,200     $ 203,825  
                 
GAAP Net income (loss)     1,651       2,216       (13,518 )     (16,800 )
Taxes on income     297       423       865       1,835  
Financial income     (5,531 )     (3,849 )     (21,919 )     (22,350 )
Share-based compensation     5,243       5,084       21,943       21,756  
Intangible assets amortization     386       424       1,538       1,926  
Restructuring expenses     633       1,172       2,235       2,843  
Non-GAAP Operating income (loss)     2,679       5,470       (8,856 )     (10,790 )
Depreciation     2,804       2,889       10,359       11,121  
Adjusted EBITDA   $ 5,483     $ 8,359     $ 1,503     $ 331  
                 

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