Kornit Digital (KRNT) Q4 2025 earnings summary

Executive summary

• Achieved a return to revenue growth in 2025, transitioning to a recurring ARR model, delivering positive adjusted EBITDA and strong operating cash flow, and capturing share in bulk apparel and screen printing markets.

• Q4 saw double-digit impression growth year-over-year, with full-year impressions reaching 243 million, driven by higher utilization and digital adoption.

• Over 40% of system deals in 2025 were with new customers, many transitioning from traditional screen printing to digital.

• Apollo and Atlas MAX platforms saw strong adoption, with many customers adding multiple systems, reflecting high satisfaction and ROI.

Financial highlights

• Q4 2025 revenue was $58.9 million, at the upper end of guidance but down from $60.7 million in Q4 2024; full-year 2025 revenue was $208.2 million, up from $203.8 million in FY24.

• Adjusted EBITDA for Q4 was $5.5 million (9.3% margin); full-year adjusted EBITDA was $1.5 million (0.7% margin), up from $0.3 million in FY24.

• Q4 non-GAAP gross margin was 50.7% (down from 55.1% in Q4 2024); full-year non-GAAP gross margin was 47.2% (down from 48.6%).

• Q4 non-GAAP net income was $8.3 million; full-year non-GAAP net income was $14.4 million.

• Cash, deposits, and marketable securities at year-end were $491.2 million.

Outlook and guidance

• 2026 revenue expected to grow at a low single-digit rate, with over 83% of revenues recurring or highly predictable.

• Q1 2026 revenue guidance is $45–$49 million, with adjusted EBITDA margin between -10% and -4%, reflecting seasonality.

• Profitability and cash flow expected to improve as the year progresses, with continued ARR and AIC growth and new innovations to expand addressable markets.