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, and positive operating cash flow despite macro uncertainty.

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

• Apollo system and MAX technology are enabling mass production, attracting new customers, especially screen printers transitioning to digital.

• Strategic partnerships, such as with MAS ACME and Gooten, validate the platform’s scalability and ability to support high-volume, time-sensitive production.

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

Financial highlights

• Q1 2025 revenue was $46.5 million, within the $45.5–$49.5 million guidance range, up from $43.8 million in Q1 2024.

• 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.

• Non-GAAP net income was $0.6 million, compared to a loss of $5.3 million in Q1 2024; GAAP net loss narrowed to $5.1 million from $13.2 million.

• Cash, deposits, and marketable securities totaled $513 million at quarter-end; cash and cash equivalents were $56 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, with stronger growth anticipated in H2 2025.