First quarter revenues of $46.5 million, in line with previous guidanceFirst quarter GAAP net loss of $5.1 million; non-GAAP net income of $0.6 millionContinued to generate cash from operations, demonstrating disciplined executionReported annual recurring revenue from AIC contracts of $14.5 million, reflecting strong initial adoption of this new business model

ROSH-HA`AYIN, Israel, May  14, 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 first quarter ended March 31, 2025.

“We delivered to our commitments in Q1, even as we operated in an uncertain macro environment,” said Ronen Samuel, Kornit’s Chief Executive Officer. “The apparel industry is undergoing significant disruption, and there has never been a better moment for Kornit to lead. Apollo combined with our AIC model is delivering robust impressions growth and unlocking the mass production segment which represents an estimated SAM of 4.5 billion impressions.”

Mr. Samuel concluded, “The opportunity ahead is enormous, and Kornit is advancing with clarity, conviction, and purpose. We are playing offense and leading this transformation of how fashion is created, consumed, and delivered.”

First Quarter 2025 Results of Operations

Total revenue for the first quarter of 2025 was $46.5 million compared with $43.8 million in the prior year period. GAAP gross profit margin for the first quarter of 2025 was 42.6% compared with 32.3% in the prior year period. On a non-GAAP basis, gross profit margin was 45.2% compared with 37.5% in the prior year period. GAAP operating expenses for the first quarter of 2025 were $31.9 million compared with $32.4 million in the prior year period. On a non-GAAP basis, operating expenses increased by 1% to $27.4 million compared with the prior year period. GAAP net loss for the first quarter of 2025 was $5.1 million, or ($0.11) per basic share, compared with net loss of $13.2 million, or ($0.28) per basic share, for the first quarter of 2024. Non-GAAP net income for the first quarter of 2025 was $0.6 million, or $0.01 per diluted share, compared with non-GAAP net loss of $5.3 million, or ($0.11) per basic share, for the first quarter of 2024. Adjusted EBITDA loss for the first quarter of 2025 was $3.9 million compared with adjusted EBITDA loss of $7.8 million for the first quarter of 2024. Adjusted EBITDA margin for the first quarter of 2025 was negative 8.4% compared with negative 17.9% for the first quarter of 2024.

Second Quarter 2025 Guidance

For the second quarter of 2025, the Company expects revenues to be in the range of $49 million to $55 million and adjusted EBITDA margin between negative 4% and 4%.

First 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 1-877-407-0792 or 1-201-689-8263. The international number is 1 809 406 247.

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 13753164. The telephonic replay will be available approximately three hours after the completion of the live call until 11:59 pm ET on May 28, 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
[email protected]

KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands)   March 31, December 31,  2025 2024  (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 56,029 $ 35,003 Short-term bank deposit 226,934 205,934 Marketable securities 169,107 222,937 Trade receivables, net 61,411 65,459 Inventory 57,617 60,342 Other accounts receivable and prepaid expenses 27,079 25,714 Total current assets 598,177 615,389  LONG-TERM ASSETS: Marketable securities 61,078 48,086 Deposits and other long-term assets 10,855 10,542 Severance pay fund 305 306 Property,plant and equipment, net 63,122 59,222 Operating lease right-of-use assets 18,738 19,054 Intangible assets, net 5,339 5,721 Goodwill 29,164 29,164 Total long-term assets 188,601 172,095  Total assets 786,778 787,484   LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables 5,897 9,019 Employees and payroll accruals 14,216 13,101 Deferred revenues and advances from customers 1,793 2,339 Operating lease liabilities 3,249 3,311 Other payables and accrued expenses 24,975 16,561 Total current liabilities 50,130 44,331  LONG-TERM LIABILITIES: Accrued severance pay 1,021 1,051 Operating lease liabilities 14,651 15,065 Other long-term liabilities 154 138 Total long-term liabilities 15,826 16,254  SHAREHOLDERS' EQUITY 720,822 726,899  Total liabilities and shareholders' equity $ 786,778 $ 787,484

KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(U.S. dollars in thousands, except share and per share data)  Three Months Ended  March 31,  2025   2024  (Unaudited)  Revenues Products$33,865  $29,013 Services 12,592   14,763 Total revenues 46,457   43,776  Cost of revenues Products 15,613   15,691 Services 11,044   13,946 Total cost of revenues 26,657   29,637  Gross profit 19,800   14,139  Operating expenses: Research and development, net 9,278   11,352 Sales and marketing 14,949   13,796 General and administrative 7,644   7,277 Total operating expenses 31,871   32,425  Operating loss (12,071)  (18,286)  Financial income, net 7,383   5,346 Loss before taxes on income (4,688)  (12,940)  Taxes on income 371   259 Net loss$(5,059) $(13,199)  Basic loss per share$(0.11) $(0.28)   Weighted average number of shares used in computing basic net loss per share 45,801,003   47,611,456   Diluted loss per share$(0.11) $(0.28)   Weighted average number of shares used in computing diluted net loss per share 45,801,003   47,611,456

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  March 31,  2025   2024  (Unaudited)   Revenues$46,457  $43,776    GAAP cost of revenues$26,657  $29,637  Cost of product recorded for share-based compensation (1) (519)  (502)  Cost of service recorded for share-based compensation (1) (395)  (419)  Intangible assets amortization on cost of product (2) (148)  (265)  Intangible assets amortization on cost of service (2) (160)  (160)  Restructuring expenses (3) -   (914)  Non-GAAP cost of revenues$25,435  $27,377    GAAP gross profit$19,800  $14,139  Gross profit adjustments 1,222   2,260  Non-GAAP gross profit$21,022  $16,399    GAAP operating expenses$31,871  $32,425  Share-based compensation (1) (4,406)  (4,527)  Intangible assets amortization (2) (74)  (88)  Restructuring expenses (3) -   (757)  Non-GAAP operating expenses$27,391  $27,053    GAAP Financial income, net$7,383  $5,346  Foreign exchange losses associated with ASC 842 (43)  385  Non-GAAP Financial income , net$7,340  $5,731    GAAP Taxes on income$371  $259  Non-cash deferred tax income -   87  Non-GAAP Taxes on income$371  $346    GAAP Net loss$(5,059) $(13,199)  Share-based compensation (1) 5,320   5,448  Intangible assets amortization (2) 382   513  Restructuring expenses (3) -   1,671  Foreign exchange losses associated with ASC 842 (43)  385  Non-cash deferred tax income -   (87)  Non-GAAP net income (loss)$600  $(5,269)   GAAP diluted loss per share$(0.11) $(0.28)   Non-GAAP diluted income (loss) per share$0.01  $(0.11)   Weighted average number of shares   Shares used in computing GAAP diluted net loss per share 45,801,003   47,611,456   Shares used in computing Non-GAAP diluted net income (loss) per share 46,355,596   47,611,456    (1) Share-based compensation  Cost of product revenues$519  $502  Cost of service revenues 395   419  Research and development 1,202   1,295  Sales and marketing 1,537   1,582  General and administrative 1,667   1,650  $5,320  $5,448  (2) Intangible assets amortization  Cost of product revenues$148  $265  Cost of service revenues 160   160  Sales and marketing 74   88  $382  $513   (3) Restructuring expenses  Cost of product revenues$-  $865  Cost of service revenues -   49  Research and development -   235  Sales and marketing -   190  General and administrative -   332  $-  $1,671

KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands)  Three Months Ended  March 31,  2025   2024  (Unaudited)  Cash flows from operating activities:   Net loss$(5,059) $(13,199)  Adjustments to reconcile net loss to net cash provided by operating activities:  Depreciation and amortization 2,846   3,324  Fair value of warrants deducted from revenues -   3,586  Share-based compensation 5,320   5,448  Amortization of premium and accretion of discount on marketable securities, net (304)  (7)  Realized loss on sale and redemption of marketable securities (22)  -  Change in operating assets and liabilities:  Trade receivables, net 4,048   12,905  Other accounts receivables and prepaid expenses (1,365)  514  Inventory 2,320   (96)  Operating leases right-of-use assets and liabilities, net (160)  (87)  Deposits and other long term assets (313)  (708)  Trade payables (5,310)  (3,765)  Employees and payroll accruals 2,092   (1,152)  Deferred revenues and advances from customers (546)  (308)  Other payables and accrued expenses 2,230   (2,313)  Accrued severance pay, net (29)  (32)  Other long - term liabilities 16   (86)  Net cash provided by operating activities 5,764   4,024   Cash flows from investing activities:   Purchase of property, plant and equipment (3,771)  (1,284)  Proceeds from investment in short-term bank deposits, net (21,000)  (24,397)  Proceeds from sales and redemption of marketable securities 2,800   3,494  Proceeds from maturities of marketable securities 65,320   11,298  Investment in marketable securities (25,815)  (18,017)  Net cash provided by (used in) investing activities 17,534   (28,906)     Cash flows from financing activities:   Exercise of employee stock options 529   -  Payments related to shares withheld for taxes (977)  (594)  Repurchase of ordinary shares (1,824)  (7,628)  Net cash used in financing activities (2,272)  (8,222)     Increase (decrease) in cash and cash equivalents 21,026   (33,104)  Cash and cash equivalents at the beginning of the period 35,003   39,605  Cash and cash equivalents at the end of the period$56,029  $6,501     Non-cash investing and financing activities:   Purchase of property and equipment on credit 2,435   92  Inventory transferred to be used as property and equipment and Equipment on lease 405   946  Property, plant and equipment transferred to be used as inventory -   154  Lease liabilities arising from obtaining right-of-use assets 522   (1,746)

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  March 31,  2025   2024  (Unaudited)   GAAP Revenues $46,457  $43,776   GAAP Net loss  (5,059)  (13,199)  Taxes on income  371   259  Financial income  (7,383)  (5,346)  Share-based compensation  5,320   5,448  Intangible assets amortization  382   513  Restructuring expenses  -   1,671  Non-GAAP Operating loss  (6,369)  (10,654)  Depreciation  2,464   2,811  Adjusted EBITDA $(3,905) $(7,843)