Kornit Digital (KRNT) investor relations material

Executive summary

• Q2 2025 revenue reached $49.8M, within guidance but below midpoint, with 2% year-over-year growth and 5% growth for the first half.

• System sales and the all-inclusive click (AIC) business model drove growth, with annual recurring revenue from AIC rising to $18.9M, while consumable and service revenues were softer due to inventory adjustments and fewer upgrades.

• The company is executing a strategic shift toward recurring revenues, digital transformation in the screen market, and expansion into new verticals like footwear and sportswear.

• Customer adoption of Apollo and Atlas Max Plus systems is expanding, with both new and existing customers increasing system utilization and capacity.

• The company remains focused on operational discipline, aiming for full-year adjusted EBITDA profitability and positive operating cash flow.

Financial highlights

• Q2 revenue was $49.8M, up from $48.6M year-over-year, at the low end of the $49M–$55M guidance range.

• Non-GAAP gross margin was 46.3%, down from 48.6% year-over-year, mainly due to lower consumable and upgrade sales.

• Adjusted EBITDA margin was negative 2.3%, an improvement from negative $1.6M last year.

• Non-GAAP net income was $1.2M, with non-GAAP diluted EPS of $0.03; GAAP net loss was $7.5M.

• Operating cash flow was $3.7M, compared to $4.5M in Q2 2024; cash and equivalents at quarter end were ~$489M.

Outlook and guidance

• Q3 2025 revenue expected between $49M and $55M; adjusted EBITDA margin guidance is negative 3% to positive 3%.

• Modest top-line growth of low single digits anticipated for H2 2025, with further ARR expansion and meaningful growth targeted for 2026.

• Ink and service revenues expected to normalize in H2 as inventory destocking subsides.

• Management remains focused on scaling Apollo and AIC adoption and maintaining profitability.