Kornit Digital (KRNT) Q4 2025 earnings summary

Executive summary

• Achieved a return to revenue growth in 2025, transitioning toward a recurring ARR model, delivering positive adjusted EBITDA and strong operating cash flow.

• Full-year impressions grew 11%, reaching approximately 243 million, reflecting higher utilization and digital adoption.

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

• Apollo and Atlas MAX platforms drove adoption, with significant repeat orders and expansion among existing and new customers.

• Captured share in bulk apparel production and saw encouraging momentum in customized design and sports footwear segments.

Financial highlights

• Q4 2025 revenue was $58.9 million; full-year revenue reached $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).

• Q4 operating cash flow was $10.6 million; full-year operating cash flow totaled $24.4 million.

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

• Ended Q4 with $491.2 million in cash, bank deposits, and marketable securities.

Outlook and guidance

• 2026 revenue expected to grow at low single digits, reflecting the accelerated shift to the AIC model.

• Q1 2026 guidance: revenue of $45–$49 million and adjusted EBITDA margin between -10% and -4%, with improvement expected as the year progresses.

• Profitability and positive operating cash flow expected to improve in 2026, with ARR growth from additional AIC deployments.

• Management anticipates unveiling innovations to expand addressable markets and accelerate digital adoption.

• Over 83% of 2026 revenues expected to be recurring or highly predictable.