Kornit Digital (KRNT) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $49.8 million, within guidance but below midpoint, with system sales and AIC driving growth despite softer consumable and service revenues due to inventory normalization and market headwinds.

• Adjusted EBITDA margin was -2.3%, with non-GAAP net income of $1.2 million and GAAP net loss of $7.5 million.

• Annual recurring revenue from AIC contracts grew to $19 million, reflecting progress in building a recurring business.

• The company is focused on expanding in customized design and accelerating digital transformation in the screen printing market.

• Cash was generated from operations, supporting ongoing business transformation and maintaining strong reserves.

Financial highlights

• Q2 2025 revenue: $49.8 million, up from $48.6 million year-over-year, at the low end of $49–$55 million guidance.

• Non-GAAP gross margin: 46.3%, down from 48.6% year-over-year; GAAP gross margin: 41.7%.

• Adjusted EBITDA loss: $1.2 million, improved from $1.6 million year-over-year.

• Non-GAAP net income: $1.2 million; GAAP net loss: $7.5 million; non-GAAP EPS: $0.03.

• Operating cash flow: $3.7 million for Q2; cash and equivalents at quarter-end: ~$489 million.

Outlook and guidance

• Q3 2025 revenue expected between $49 million and $55 million; adjusted EBITDA margin guidance of -3% to +3%.

• Modest top-line growth of low single digits expected in H2 2025, with meaningful ARR growth setting up for stronger 2026.

• Full-year adjusted EBITDA profitability and positive operating cash flow targeted.

• Management remains focused on scaling Apollo and AIC adoption.