Kornit Digital (KRNT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $53.1 million, up 5% year-over-year and above the midpoint of guidance, driven by recurring revenue from the All-Inclusive Click (AIC) model, consumables, and expansion into digital footwear.

• Adjusted EBITDA margin was 2%, with positive operating cash flow for the eighth consecutive quarter.

• Strategic shift from one-time equipment sales to recurring usage-based revenue under AIC is enhancing long-term profitability and predictability.

• Over one million pairs produced in the digital footwear segment, now commercially launched and a key pillar for growth.

• Expansion of Apollo and Atlas MAX PLUS installations and AIC model adoption drove growth in bulk apparel and new customer acquisition.

Financial highlights

• Q3 2025 revenue: $53.1 million, up from $50.7 million in Q3 2024, within guidance of $49–$55 million.

• Non-GAAP gross margin: 45.8% (down from 50.3% YoY) due to inventory adjustments, U.S. tariffs, and lower service margin.

• Non-GAAP operating expenses: $25.8 million, down year-over-year; would have been $25 million excluding FX impact.

• Adjusted EBITDA: $1.1 million (2% margin); non-GAAP net income: $4.2 million ($0.09/share); GAAP net loss: $2.6 million ($0.06/share).

• Cash, deposits, and marketable securities at quarter-end: ~$490 million; operating cash flow: $4.3 million.

Outlook and guidance

• Q4 2025 revenue expected between $56–$60 million; adjusted EBITDA margin guidance of 7–10%.

• 2026 outlook: low single-digit top-line growth as AIC transition accelerates, with strong ARR and EBITDA expansion expected.

• Continued focus on recurring revenue growth and disciplined cost management.