Kornit Digital reported third‑quarter 2025 results that showed a 5 % year‑over‑year increase in revenue to $53.1 million, while cash flow from operations remained positive. The company’s non‑GAAP earnings per share rose to $0.09, beating the consensus estimate of $0.04 by $0.05, whereas GAAP earnings reflected a $0.06 loss per share.
Revenue growth was driven largely by the All‑Inclusive Click (AIC) subscription model, which generated $21.5 million in annual recurring revenue during the quarter and $23.1 million year‑to‑date. The AIC model continues to capture a growing share of the bulk apparel market, and the company highlighted a 1 million‑pair production milestone in footwear, underscoring the model’s scalability. Despite this, revenue fell short of the $53.49 million consensus estimate, reflecting a slight miss that analysts noted in some reports.
Gross margin contracted to 45.8 % from 50.3 % year‑over‑year, and adjusted EBITDA fell to $1.1 million from $1.5 million in Q3 2024. The margin squeeze was attributed to higher raw‑material costs, a shift toward lower‑margin product lines, and the impact of U.S. tariffs that were not present in the prior year. The company’s operating cash flow remained robust, indicating that the margin compression is not yet eroding overall cash‑generating capacity.
The EPS beat can be traced to disciplined cost management and a favorable product mix. While revenue growth was modest, the company maintained pricing power in its high‑margin AIC contracts, and the reduction in one‑time charges helped lift earnings. The GAAP loss, however, was driven by a $0.06 per‑share charge related to restructuring and asset write‑downs that were not part of the core operating model.
For the fourth quarter, Kornit guided revenue of $56 million to $60 million and an adjusted EBITDA margin of 7 % to 10 %. The guidance reflects management’s confidence in continued demand for digital textile solutions and the expansion of the AIC model, which is expected to generate more predictable recurring revenue. The company also reiterated its outlook for modest top‑line growth in 2026, with a focus on scaling the AIC platform and penetrating new verticals such as footwear.
CEO Ronen Samuel said, “This quarter, we delivered results above the midpoint of our guidance range, with revenues of $53.1 million, representing 5 % growth year over year. We continue to build momentum in the bulk apparel market and accelerate the replacement of traditional screen printing.” He added that the company’s breakthrough digital solution is already producing more than one million pairs of shoes for leading brands, highlighting the strategic importance of the footwear segment in the company’s growth plan.
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