Kornit Digital Ltd. reported fourth‑quarter 2025 results that included $58.9 million in revenue, up 4.1% from $60.7 million in Q4 2024, and $208.2 million for the full year, a 2.5% increase over the $203.8 million reported in 2024. Non‑GAAP earnings per share were $0.18, beating the consensus estimate of $0.14 by $0.04, while adjusted EBITDA reached $5.5 million in the quarter and $1.5 million for the year, marking the company’s first positive adjusted EBITDA in two years.
The company’s All‑Inclusive Click (AIC) subscription model continued to expand, generating $15 million in AIC revenue and $25 million in annualized recurring revenue (ARR). AIC now accounts for more than 80% of total revenue, underscoring a strategic shift from one‑time equipment sales to a predictable recurring revenue engine. The growth in AIC revenue was driven by increased adoption among bulk apparel manufacturers, while the ARR figure reflects a higher mix of long‑term contracts and higher pricing power in the subscription segment.
Gross‑margin performance showed a modest compression: GAAP gross margin fell to 44.3% from 45.0% in 2024, and non‑GAAP gross margin declined to 50.7% from 55.1%. The compression is attributable to higher raw‑material costs and a shift toward lower‑margin equipment sales in the quarter. Despite the margin squeeze, Kornit’s cost‑control initiatives and the higher‑margin AIC mix helped the company achieve positive adjusted EBITDA, a key indicator of operational profitability.
Management guided first‑quarter 2026 revenue to $45 million–$49 million and an adjusted EBITDA margin of –10% to –4%. The guidance reflects a seasonal dip in demand for digital textile solutions and the company’s continued investment in the AIC program and the Apollo platform’s expansion into screen‑printing. The negative margin outlook signals short‑term profitability pressure but also signals confidence that the strategic investments will pay off in the longer term.
CEO Ronen Samuel highlighted the company’s return to full‑year revenue growth and the momentum of the AIC model, noting that “more than 83% of revenues are recurring or highly predictable.” Investors responded positively, citing the earnings beat, the return to profitability, and the accelerating adoption of the AIC subscription model as key drivers of confidence in Kornit’s future growth trajectory.
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