Kornit Digital (KRNT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $46.5 million, up from $43.8 million year-over-year, with adjusted EBITDA margin at -8.4%, both within guidance despite market uncertainty.

• Positive operating cash flow was generated, reflecting disciplined execution and ongoing financial discipline.

• Recurring and highly predictable revenue now represents about 80% of total revenue, driven by AIC contracts and consumables.

• Record 222 million impressions in the trailing twelve months, up 10% year-over-year, indicating strong system utilization.

• Strategic partnerships and technology adoption, including deals with MAS ACME and Gooten, are driving transformation and growth.

Financial highlights

• Q1 2025 revenue was $46.5 million, up from $43.8 million in Q1 2024, within the $45.5–$49.5 million guidance, primarily driven by AIC product growth.

• Non-GAAP gross margin improved to 45.3% from 37.5% year-over-year, aided by operating efficiencies and a one-time materials recovery benefit.

• Adjusted EBITDA loss was $3.9 million (margin -8.4%), improved from $7.8 million loss (margin -17.9%) year-over-year.

• Operating cash flow was $5.8 million, up from $4 million year-over-year; free cash flow was ~$2.0 million.

• Cash, deposits, and marketable securities totaled ~$513 million at quarter-end; cash and cash equivalents were $56.0 million.

Outlook and guidance

• Q2 2025 revenue expected between $49 million and $55 million; adjusted EBITDA margin guidance is -4% to +4%.

• Full-year expectations remain for revenue growth, adjusted EBITDA profitability, and positive operating cash flow.

• H2 2025 anticipated to be stronger than H1, driven by Apollo shipments and AIC growth.