Second quarter revenues of $49.8 million, in line with previous guidance
Second quarter GAAP net loss of $7.5 million; non-GAAP net income of $1.2 million
Continued to generate cash from operations
Reported annual recurring revenue from AIC contracts of $18.9 million, reflecting continued adoption of this new model, particularly from screen-printing customers.

ROSH-HA`AYIN, Israel, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. ("Kornit" or the "Company") (NASDAQ:KRNT), a global leader in sustainable, on-demand, digital fashion and textile production technologies, today reported results for the second quarter ended June 30, 2025.

"We delivered second quarter results within our guidance range in a challenging market environment, reflecting ongoing progress in transforming our business toward recurring revenue and long-term growth. While consumables revenue came in softer due to inventory adjustments among certain customers, system sales and AIC adoption maintained momentum. We saw particularly positive traction from screen-printing customers embracing digital for the first time, for a variety of run lengths, as well as capacity expansions from customized design customers," said Ronen Samuel, Kornit's Chief Executive Officer.

Mr. Samuel continued, "Despite a more modest outlook for the second half, we remain focused on the execution of our strategy. Our priorities are clear: scaling adoption of the Apollo and AIC, growing the number of screen-printing customers we serve, and maintaining both adjusted EBITDA profitability and operating cash flow generation. With disciplined execution and continued focus, we remain confident these efforts will lay the foundation for a more resilient, scalable, and profitable business."

Second Quarter 2025 Results of Operations

Total revenue for the second quarter of 2025 was $49.8 million compared with $48.6 million in the prior year period.
GAAP gross profit margin for the second quarter of 2025 was 41.7% compared with 45.8% in the prior year period. On a non-GAAP basis, gross profit margin was 46.3% compared with 48.6% in the prior year period.
GAAP operating expenses for the second quarter of 2025 were $31.6 million compared with $33.0 million in the prior year period. On a non-GAAP basis, operating expenses decreased by 4.4% to $26.7 million compared with the prior year period.
GAAP net loss for the second quarter of 2025 was $7.5 million, or ($0.17) per basic share, compared with net loss of $4.9 million, or ($0.10) per basic share, for the second quarter of 2024.
Non-GAAP net income for the second quarter of 2025 was $1.2 million, or $0.03 per share, compared with non-GAAP net income of $1.1 million, or $0.02 per share, for the second quarter of 2024.
Adjusted EBITDA loss for the second quarter of 2025 was $1.2 million compared with adjusted EBITDA loss of $1.6 million for the second quarter of 2024. Adjusted EBITDA margin for the second quarter of 2025 was negative 2.3% compared with negative 3.4% for the second quarter of 2024.

Third Quarter 2025 Guidance

For the Third quarter of 2025, the Company expects revenues to be in the range of $49 million to $55 million and adjusted EBITDA margin between negative 3% and 3%.

Second Quarter Earnings Conference Call Information

The Company will host a conference call today at 8:30 a.m. ET, or 3:30 p.m. Israel time, to discuss the results, followed by a question-and-answer session with the investor community.

A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-800-579-2543 or 1-785-424-1789. The Israel Toll free number is 180-925-6145. The conference ID required to join the call is KORNIT.

To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671 and enter access ID 11159631. The telephonic replay will be available approximately three hours after the completion of the live call until 11:59 pm ET on August 20, 2025. The call will also be available for replay via the webcast link on Kornit's Investor Relations website.

About Kornit Digital

Kornit Digital (NASDAQ:KRNT) is a worldwide market leader in sustainable, on-demand, digital fashion, and textile production technologies. The company offers end-to-end solutions including digital printing systems, inks, consumables, software, and fulfillment services through its global fulfillment network. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit Digital serves customers in more than 100 countries and states worldwide. To learn more about how Kornit Digital is boldly transforming the world of fashion and textiles, visit www.kornit.com.

Forward Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as "will," "expects," "anticipates," "continue," "believes," "should," "intended," "guidance," "preliminary," "future," "planned," or other words. These forward-looking statements include, but are not limited to, statements relating to the Company's objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events, or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: the duration and severity of adverse macro-economic headwinds that were caused by inflationary pressures and higher interest rates, which have impacted, and may continue to impact, in an adverse manner, the Company's operations, financial position and cash flows, in part due to the adverse impact on the Company's customers and suppliers; the Company's degree of success in developing, introducing and selling new or improved products and product enhancements including specifically the Company's Poly Pro and Presto products, and the Company's Apollo direct-to-garment platform; the extent of the Company's ability to consummate sales to large accounts with multi-system delivery plans; the degree of the Company's ability to fill orders for its systems and consumables; the extent of the Company's ability to increase sales of its systems, ink and consumables; the extent of the Company's ability to leverage its global infrastructure build-out; the development of the market for digital textile printing; the availability of alternative ink; competition; sales concentration; changes to the Company's relationships with suppliers; the extent of the Company's success in marketing; and those additional factors referred to under "Risk Factors" in Item 3.D of the Company's Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on March 28, 2025. Any forward-looking statements in this press release are made as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Discussion Disclosure

The Company presents certain non-GAAP financial measures, in this press release and in the accompanying conference call to discuss the Company's quarterly results. These non-GAAP financial measures reflect adjustments to corresponding GAAP financial measures in order to exclude the impact of the following: share-based compensation expenses; amortization of intangible assets; restructuring expenses; foreign exchange differences associated with ASC 842; and non-cash deferred tax income.

The Company defines "Adjusted EBITDA" as non-GAAP operating income (loss), which reflects the adjustments described in the preceding paragraph, as further adjusted to exclude depreciation expense.

The purpose of the foregoing non-GAAP financial measures is to convey the Company's performance exclusive of non-cash charges and other items that are considered by management to be outside of the Company's core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage, and evaluate the Company's business and make operating decisions, and the Company believes that they are useful to investors as a consistent and comparable measure of the ongoing performance of the Company's business. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

The reconciliation tables included below present a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures.

Investor Contact:

Jared Maymon

Global Head of Investor Relations & Strategic Finance

Jared.Maymon@Kornit.com

KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)

	June 30,		December 31,
	2025		2024
	(Unaudited)		(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	25,418	$	35,003
Short-term bank deposit	306,437		205,934
Marketable securities	99,757		222,937
Trade receivables, net	64,457		65,459
Inventory	50,023		60,342
Other accounts receivable and prepaid expenses	28,586		25,714
Total current assets	574,678		615,389

LONG-TERM ASSETS:
Marketable securities	56,991		48,086
Deposits and other long-term assets	14,089		10,542
Severance pay fund	344		306
Property, plant and equipment, net	67,296		59,222
Operating lease right-of-use assets	18,443		19,054
Intangible assets, net	4,955		5,721
Goodwill	29,164		29,164
Total long-term assets	191,282		172,095

Total assets	765,960		787,484


LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables	10,032		9,019
Employees and payroll accruals	13,386		13,101
Deferred revenues and advances from customers	1,566		2,339
Operating lease liabilities	3,670		3,311
Other payables and accrued expenses	16,434		16,561
Total current liabilities	45,088		44,331

LONG-TERM LIABILITIES:
Accrued severance pay	472		1,051
Operating lease liabilities	15,525		15,065
Other long-term liabilities	126		138
Total long-term liabilities	16,123		16,254

SHAREHOLDERS' EQUITY	704,749		726,899

Total liabilities and shareholders' equity	$	765,960	$	787,484

KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
	(Unaudited)						(Unaudited)

Revenues
Products	$	38,413		$	34,366		$	72,278		$	63,379
Services		11,341			14,255			23,933			29,018
Total revenues		49,754			48,621			96,211			92,397

Cost of revenues
Products		17,967			13,271			33,580			28,962
Services		11,043			13,066			22,087			27,012
Total cost of revenues		29,010			26,337			55,667			55,974

Gross profit		20,744			22,284			40,544			36,423

Operating expenses:
Research and development, net		9,143			10,472			18,421			21,824
Sales and marketing		14,993			14,976			29,942			28,772
General and administrative		7,474			7,532			15,118			14,809
Total operating expenses		31,610			32,980			63,481			65,405

Operating loss		(10,866	)		(10,696	)		(22,937	)		(28,982	)

Financial income, net		3,465			6,435			10,848			11,781
Loss before taxes on income		(7,401	)		(4,261	)		(12,089	)		(17,201	)

Taxes on income		117			648			488			907
Net loss	$	(7,518	)	$	(4,909	)	$	(12,577	)	$	(18,108	)

Basic loss per share	$	(0.17	)	$	(0.10	)	$	(0.28	)	$	(0.38	)


Weighted average number of shares
used in computing basic net loss per share		45,164,493			47,535,212			45,482,748			47,573,334


Diluted loss per share	$	(0.17	)	$	(0.10	)	$	(0.28	)	$	(0.38	)


Weighted average number of shares
used in computing diluted net loss per share		45,164,493			47,535,212			45,482,748			47,573,334


KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
			2025			2024			2025			2024
		(Unaudited)						(Unaudited)

Revenues		$	49,754		$	48,621		$	96,211		$	92,397


GAAP cost of revenues		$	29,010		$	26,337		$	55,667		$	55,974
Cost of product recorded for share-based compensation (1)			(542	)		(490	)		(1,061	)		(992	)
Cost of service recorded for share-based compensation (1)			(404	)		(453	)		(799	)		(872	)
Intangible assets amortization on cost of product (2)			(150	)		(264	)		(298	)		(529	)
Intangible assets amortization on cost of service (2)			(160	)		(160	)		(320	)		(320	)
Restructuring expenses (3)			(1,026	)		-			(1,026	)		(914	)
Non-GAAP cost of revenues		$	26,728		$	24,970		$	52,163		$	52,347


GAAP gross profit		$	20,744		$	22,284		$	40,544		$	36,423
Gross profit adjustments			2,282			1,367			3,504			3,627
Non-GAAP gross profit		$	23,026		$	23,651		$	44,048		$	40,050


GAAP operating expenses		$	31,610		$	32,980		$	63,481		$	65,405
Share-based compensation (1)			(4,810	)		(4,926	)		(9,216	)		(9,453	)
Intangible assets amortization (2)			(74	)		(87	)		(148	)		(175	)
Restructuring expenses (3)			-			-			-			(757	)
Non-GAAP operating expenses		$	26,726		$	27,967		$	54,117		$	55,020


GAAP Financial income, net		$	3,465		$	6,435		$	10,848		$	11,781
Foreign exchange losses associated with ASC 842			1,578			(269	)		1,535			116
Non-GAAP Financial income , net		$	5,043		$	6,166		$	12,383		$	11,897


GAAP Taxes on income		$	117		$	648		$	488		$	907
Non-cash deferred tax income			-			86			-		$	173
Non-GAAP Taxes on income		$	117		$	734		$	488		$	1,080


GAAP Net loss		$	(7,518	)	$	(4,909	)	$	(12,577	)	$	(18,108	)
Share-based compensation (1)			5,756			5,869			11,076			11,317
Intangible assets amortization (2)			384			511			766			1,024
Restructuring expenses (3)			1,026			-			1,026			1,671
Foreign exchange losses associated with ASC 842			1,578			(269	)		1,535			116
Non-cash deferred tax income			-			(86	)		-			(173	)
Non-GAAP net income (loss)		$	1,226		$	1,116		$	1,826		$	(4,153	)

GAAP diluted loss per share		$	(0.17	)	$	(0.10	)	$	(0.28	)	$	(0.38	)

Non-GAAP diluted income (loss) per share		$	0.03		$	0.02		$	0.04		$	(0.09	)

Weighted average number of shares

Shares used in computing GAAP diluted net loss per share			45,164,493			47,535,212			45,482,748			47,573,334

Shares used in computing Non-GAAP diluted net income (loss) per share			45,508,379			49,898,775			45,931,988			47,573,334


(1)	Share-based compensation
	Cost of product revenues	$	542		$	490		$	1,061		$	992
	Cost of service revenues		404			453			799			872
	Research and development		1,213			1,376			2,415			2,671
	Sales and marketing		1,831			1,784			3,368			3,366
	General and administrative		1,766			1,766			3,433			3,416
		$	5,756		$	5,869		$	11,076		$	11,317
(2)	Intangible assets amortization
	Cost of product revenues	$	150		$	264		$	298		$	529
	Cost of service revenues		160			160			320			320
	Sales and marketing		74			87			148			175
		$	384		$	511		$	766		$	1,024

(3)	Restructuring expenses
	Cost of product revenues	$	1,026		$	-		$	1,026		$	865
	Cost of service revenues		-			-			-			49
	Research and development		-			-			-			235
	Sales and marketing		-			-			-			190
	General and administrative		-			-			-			332
		$	1,026		$	-		$	1,026		$	1,671


KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
	(Unaudited)						(Unaudited)
Cash flows from operating activities:

Net loss	$	(7,518	)	$	(4,909	)	$	(12,577	)	$	(18,108	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		2,930			3,191			5,776			6,515
Fair value of warrants deducted from revenues		-			(313	)		-			3,273
Share-based compensation		5,756			5,869			11,076			11,317
Amortization of premium and accretion of discount on marketable securities, net		(246	)		16			(550	)		9
Realized loss on sale and redemption of marketable securities		-			-			(22	)		-
Loss from disposal of property and Equipments		134			-			134			-
Change in operating assets and liabilities:
Trade receivables, net		(3,046	)		1,266			1,002			14,171
Other accounts receivables and prepaid expenses		(1,507	)		970			(2,872	)		1,484
Inventory		5,280			(3,868	)		7,600			(3,964	)
Operating leases right-of-use assets and liabilities, net		1,590			(488	)		1,430			(575	)
Deposits and other long term assets		(3,234	)		(511	)		(3,547	)		(1,219	)
Trade payables		5,403			1,832			93			(1,933	)
Employees and payroll accruals		(438	)		1,674			1,654			522
Deferred revenues and advances from customers		(227	)		(364	)		(773	)		(672	)
Other payables and accrued expenses		(531	)		123			1,699			(2,190	)
Accrued severance pay, net		(588	)		(30	)		(617	)		(62	)
Other long-term liabilities		(28	)		26			(12	)		(60	)
Net cash provided by operating activities		3,730			4,484			9,494			8,508

Cash flows from investing activities:

Purchase of property, plant and equipment		(5,808	)		(1,439	)		(9,579	)		(2,723	)
Proceeds from (investment in) short-term bank deposits, net		(79,503	)		16,601			(100,503	)		(7,796	)
Proceeds from sales and redemption of marketable securities		3,260			-			6,060			3,494
Proceeds from maturities of marketable securities		77,802			24,581			143,122			35,879
Investment in marketable securities		(6,763	)		(26,602	)		(32,578	)		(44,619	)
Net cash provided by (used in) investing activities		(11,012	)		13,141			6,522			(15,765	)



Cash flows from financing activities:

Exercise of employee stock options		239			7			768			7
Payments related to shares withheld for taxes		(392	)		(184	)		(1,369	)		(778	)
Repurchase of ordinary shares		(23,176	)		(1,427	)		(25,000	)		(9,055	)
Net cash used in financing activities		(23,329	)		(1,604	)		(25,601	)		(9,826	)



Increase (decrease) in cash and cash equivalents		(30,611	)		16,021			(9,585	)		(17,083	)
Cash and cash equivalents at the beginning of the period		56,029			6,501			35,003			39,605
Cash and cash equivalents at the end of the period	$	25,418		$	22,522		$	25,418		$	22,522



Non-cash investing and financing activities:

Purchase of property and equipment on credit		1,167			105			1,167			105
Inventory transferred to be used as property and equipment		2,548			455			2,953			1,401
Property, plant and equipment transferred to be used as inventory		234			166			234			320
Lease liabilities arising from obtaining right-of-use assets		561			338			1,083			(1,408	)


KORNIT DIGITAL LTD.
AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(U.S. dollars in thousands, except share and per share data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
	(Unaudited)						(Unaudited)

GAAP Revenues	$	49,754		$	48,621		$	96,211		$	92,397

GAAP Net loss		(7,518	)		(4,909	)		(12,577	)		(18,108	)
Taxes on income		117			648			488			907
Financial income		(3,465	)		(6,435	)		(10,848	)		(11,781	)
Share-based compensation		5,756			5,869			11,076			11,317
Intangible assets amortization		384			511			766			1,024
Restructuring expenses		1,026			-			1,026			1,671
Non-GAAP Operating loss		(3,700	)		(4,316	)		(10,069	)		(14,970	)
Depreciation		2,546			2,680			5,010			5,491
Adjusted EBITDA	$	(1,154	)	$	(1,636	)	$	(5,059	)	$	(9,479	)

Kornit Digital Reports Second Quarter 2025 Results