Kornit Digital (NASDAQ:KRNT) reported fourth-quarter and full-year 2025 results that management said met the company’s goals of returning to revenue growth, expanding its recurring revenue base through its AIC program, and delivering positive adjusted EBITDA and operating cash flow. Executives also highlighted rising production volumes across the installed base and improving traction in bulk apparel printing as more customers shift from traditional screen printing to digital production.
Q4 and full-year results
For the fourth quarter, Kornit posted revenue of $58.9 million and adjusted EBITDA of $5.5 million, both described as at the upper end of guidance. The company generated $10.6 million of operating cash flow in Q4, which management said was its ninth consecutive quarter of positive operating cash generation.
Impression growth and utilization trends
Management emphasized “impressions” as a key indicator of utilization and recurring consumption. Kornit said impressions grew at a strong double-digit rate in Q4 and were up 11% for full-year 2025 to 243 million impressions.
CEO Ronen Samuel said impression growth came from several sources, including higher utilization among AIC program customers, increasing bulk and long-run work shifting from screen printing to Kornit’s digital systems, and high-volume production on the Apollo platform. Samuel said system uptime during Q4 peak season was more than 90% “across the board” for Apollo, which he described as supporting high utilization and customer satisfaction.
Shift toward AIC and recurring revenue
Kornit continued to emphasize its transition toward a more recurring model. The company ended Q4 with approximately $24.8 million in annual recurring revenue (ARR) tied to AIC, while Samuel cited approximately $25 million of ARR exiting the year. Zipori said AIC revenue grew 104% year over year in the quarter.
For the full year, Kornit said AIC revenue totaled $15.2 million, up from $3.3 million in 2024. Samuel said AIC commitments are typically multi-year and “usually around five years,” which he said improves revenue visibility and durability. Management also noted that more than 83% of revenue is now “recurring or highly predictable.”
On the call, Samuel said Kornit expects low single-digit revenue growth in 2026, reflecting a deliberate decision to accelerate adoption of the AIC model, which changes near-term revenue timing. He added that the company expects profitability expansion and continued positive operating cash flow as ARR grows through additional AIC system deployments. In response to an analyst question about the pace of revenue acceleration, Samuel said the company expects faster top-line growth once ARR reaches around $50 million.
Customer activity and Apollo adoption
Kornit executives highlighted customer wins and expansion, particularly in bulk apparel production. Samuel said more than 40% of system deals in 2025 came from net new customers, many of them traditional screen printers adopting digital for the first time. He also said over 40% of existing Apollo customers added a second system or more in 2025, which he framed as evidence of ROI and confidence in digital for bulk and mid-run production.
Examples cited during prepared remarks included:
- TOPQ (Poland) ordering an Apollo system under the AIC model to transition part of high-volume screen production to digital.
- Cedarstream and Real Thread in the U.S. adopting the Atlas MAX platform to replace screen production for the first time.
- Zumiez adding a second Apollo system in Q4 on top of an existing fleet of Atlas MAX PLUS systems.
- 500 LEVEL adding an Apollo system under the AIC model to support licensed sports apparel production.
- BASIC THINKING (U.K.) adding a second Apollo system under AIC.
Samuel said Kornit has learned that onboarding and ramping Apollo with traditional screen printers involves a different sales cycle and requires workflow support, training, and proving quality and productivity expectations. He said Kornit is focused on workflow automation to help shorten sales cycles in the screen market, with additional workflow-related innovation planned to be showcased at the company’s Konnections event in April.
Margins, expenses, capital allocation, and outlook
Non-GAAP gross margin in Q4 was 50.7%, down from 55.1% in Q4 2024, which Zipori said reflected product mix changes and tariffs. For full-year 2025, non-GAAP gross margin was 47.2%, compared with 48.6% a year earlier. Zipori said the company expects annual gross margins to expand longer term as AIC scales, though he did not anticipate “significant deviation” in gross margin levels in 2026 as the transition continues.
Non-GAAP operating expenses were $27.1 million in Q4, down 3.1% year over year, including an unfavorable $1.1 million FX impact. Full-year non-GAAP operating expenses were $107.1 million, down 2.5% year over year, including an unfavorable $2.6 million FX impact. Zipori said Kornit expects to remain disciplined on expenses and does not expect significant changes in OpEx.
At quarter-end, Kornit’s cash balance (including deposits and marketable securities) was approximately $491.2 million. The company repurchased $27 million of shares in 2025, including $2 million under a new $100 million program announced in November 2025. Since the first program announced in 2023 through Q4 2025, Kornit said it repurchased 6.9 million shares for approximately $167 million.
For the first quarter of 2026, Kornit guided for revenue of $45 million to $49 million and an adjusted EBITDA margin between -10% and -4%, citing seasonality that typically results in negative margins in the first half of the year. For 2026 overall, management reiterated expectations for low single-digit revenue growth, improved profitability, and positive operating cash flow.
Beyond its core apparel focus, management said 2026 should be stronger for its Roll-to-Roll business, particularly in footwear and technical and functional apparel, supported by new technologies and capabilities expected later in the year. Samuel also discussed the footwear market as a newer opportunity for Kornit, describing customer interest from major sports brands and estimating an opportunity of “something like 2 billion impressions” in footwear that the company believes it can capture.
About Kornit Digital (NASDAQ:KRNT)
Kornit Digital Ltd. (NASDAQ: KRNT) is a global technology company specializing in digital textile printing solutions. Headquartered in Rosh Ha’Ayin, Israel, Kornit develops and manufactures an integrated ecosystem of industrial inkjet printers, proprietary NeoPigment inks and pretreatment systems. Its product portfolio addresses a range of applications including direct-to-garment, direct-to-fabric, digital embellishment and hybrid manufacturing, enabling businesses to produce custom apparel, sportswear, fashion and home textiles on demand.
The company’s flagship offerings include the Avalanche and Atlas series for high-volume production, as well as the Storm and Helix lines designed for mid-to-large scale operations.
