Promos Ink, a leading screen and embroidery decorator, adds the Kornit Apollo to its multiple Atlas MAX PLUS platforms to create more agility in its production capabilityTransitions production from screen printing systems to on-demand, digital mass-production – streamlining costs, powering fast customer delivery, while continuing to meet the highest quality standards and evolving customer demandBy partnering with Kornit, Promos Ink further expands its on-demand offering, enabling them to accept any job at a ...

US-based printed textile producer for top online stores makes fast, quality, custom apparel possible using three Kornit on-demand print production solutionsKornit Apollo and Atlas MAX PLUS systems form foundation of the Printdash business, accelerating its reputation as top custom decorator for online apparel, powering the company’s integrations with some of the biggest names in the online world. ROSH-HA`AYIN, Israel, Sept. 03, 2025 (GLOBE NEWSWIRE) -- Kornit Digital LTD. (NASDAQ: KRNT) (“Kornit” or the “C ...

Core Insights - Kornit Digital (KRNT) reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, and showing an increase from $0.02 per share a year ago, resulting in an earnings surprise of +50.00% [1] - The company posted revenues of $49.75 million for the quarter ended June 2025, which was 4.35% below the Zacks Consensus Estimate, but an increase from $48.62 million year-over-year [2] - Kornit Digital has surpassed consensus EPS estimates three times over the last four quarters, while also topping revenue estimates three times in the same period [2] Earnings Outlook - The future performance of Kornit Digital's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $57.34 million, and for the current fiscal year, it is $0.31 on revenues of $222.46 million [7] Industry Context - The Commercial Printing industry, to which Kornit Digital belongs, is currently ranked in the top 13% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company reported second quarter revenues of approximately $49.8 million, which is at the low end of the guidance range of $49 million to $55 million, and represents a modest year-over-year growth of 2% [5][20] - Gross margin was 46.3%, down from 48.6% in the same period last year, primarily due to lower sales of consumables and Atlas Max upgrades [21] - Adjusted EBITDA margin was negative 2.3%, an improvement from negative 3.2% in the same period last year [22] - Annual recurring revenues (ARR) increased by $4 million to approximately $19 million, reflecting progress in building a more predictable business [6][30] Business Line Data and Key Metrics Changes - Service revenues declined year-over-year due to fewer Atlas MAX upgrades, which had contributed significantly to service revenue in the comparable period of 2024 [6][20] - System sales doubled compared to last year, driven by the all-inclusive click (AIC) business model, which continues to drive growth [29][46] - Consumable revenues declined year-over-year, largely due to customers adjusting their inventory levels after a buildup in late 2023 and early 2024 [6][30] Market Data and Key Metrics Changes - The company saw a 5% increase in impressions to 222.7 million on a trailing twelve-month basis, with strong double-digit growth among top customers in both the direct-to-garment (DTG) and roll-to-roll segments [6][13] - The screen printing market is beginning to embrace digital solutions, with significant adoption from new customers globally [11][12] Company Strategy and Development Direction - The company is focused on driving impression growth across its customized design installed base while accelerating penetration into the screen market by transforming analog workflows to digital [7][15] - The AIC model is expected to remain a key driver of growth as both utilization and footprint expand [10][49] - The company is investing in application development, automation, print quality, and ASC offerings designed for longer run production and large-scale operators [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q2 results were below expectations, there are positive signs in other areas, particularly in system sales and AIC revenue [28] - The company expects modest top-line growth in the second half of the year, with a focus on expanding the ARR base and setting the stage for meaningful growth in 2026 [17][18] - Management is confident in the strategy and ability to deliver on long-term goals, despite potential impacts from tariffs on products originating from Israel [18][19] Other Important Information - The company completed a $100 million accelerated share repurchase program, bringing total repurchases since 2023 to 6.7 million shares for a total consideration of $164.8 million [23][24] - The company is actively managing the impact of a recently announced 15% tariff on products originating from Israel, with mitigation strategies in place [18] Q&A Session Summary Question: Broader commentary on the second half outlook - Management acknowledged softness in Q2 due to lower ink and service revenue but highlighted strong growth in system sales and AIC revenue [28][29] Question: Impact of inventory destocking - Management explained that key customers had increased their safety inventory to about six months, which is now being adjusted back to two to three months [36] Question: Orders for Apollo systems - Management indicated that they are tracking below the target of 30 Apollo systems for 2025 but are encouraged by customer feedback and adoption [40][41] Question: ARR tracking below expectations - Management clarified that while ARR is currently below expectations, they anticipate meaningful growth in 2026 due to a strong pipeline and increasing adoption of the AIC model [52][54] Question: Atlas Max upgrade business - Management confirmed that most of the installed base has been upgraded to Atlas Max, with upgrades expected to contribute to Q3 and Q4 revenues [57] Question: Customer motivation from recent legislation - Management noted that the recent bill passed in North America could influence customer decisions and potentially accelerate deals [68]

Financial Performance - Q2 2025 revenues reached $49.8 million, driven by systems sales and AIC, but below the midpoint of guidance due to consumables and service headwinds[10, 21] - The adjusted EBITDA margin was -2.3%[10] - Non-GAAP gross margin decreased to 46.3% in Q2 2025, compared to 48.6% in Q2 2024, primarily due to a lower portion of consumables revenue in the sales mix[24, 25] - Non-GAAP operating expenses decreased to $26.7 million in Q2 2025 from $28 million in Q2 2024[27] - Cash, deposits, and marketable securities were approximately $489 million at the end of Q2 2025[31] Market Dynamics - Impressions grew 4.7% year-over-year to 222.7 million, with strong double-digit growth from top customers in DTG and R2R[11, 37] - Annual recurring revenue from AIC grew to $18.9 million[10, 39] Future Outlook - The company expects low single-digit growth in H2[15] - Q3 2025 revenues are expected to be in the range of $49 million to $55 million, with an adjusted EBITDA margin between -3% and 3%[33]

Core Insights - Kornit Digital Ltd. reported second quarter results for 2025, achieving revenues of $49.8 million, which aligns with previous guidance and shows a slight increase from $48.6 million in the same period last year [7][8] - The company experienced a GAAP net loss of $7.5 million, compared to a net loss of $4.9 million in the second quarter of 2024, while non-GAAP net income was $1.2 million, slightly up from $1.1 million year-over-year [7][8] - Kornit Digital is focusing on scaling the adoption of its Apollo and AIC systems, expanding its customer base in screen printing, and maintaining profitability in adjusted EBITDA and operating cash flow [3][4] Financial Performance - Second quarter revenues were $49.8 million, up from $48.6 million year-over-year [8] - GAAP gross profit margin decreased to 41.7% from 45.8% in the prior year, while non-GAAP gross profit margin fell to 46.3% from 48.6% [8] - GAAP operating expenses were $31.6 million, down from $33.0 million in the prior year, with non-GAAP operating expenses decreasing by 4.4% to $26.7 million [8] - Adjusted EBITDA loss for the second quarter was $1.2 million, an improvement from a loss of $1.6 million in the same quarter of 2024, resulting in an adjusted EBITDA margin of negative 2.3% compared to negative 3.4% [8][34] Future Guidance - For the third quarter of 2025, Kornit Digital expects revenues to be in the range of $49 million to $55 million, with an adjusted EBITDA margin projected between negative 3% and 3% [5] Business Strategy - The company is focused on transforming its business model towards recurring revenue and long-term growth, despite a modest outlook for the second half of the year [2][3] - Kornit Digital is seeing positive traction from screen-printing customers adopting digital solutions for the first time and from customized design customers expanding their capacity [2][3]

Core Viewpoint - Kornit Digital Ltd. is set to release its financial results for Q2 2025 on August 6, 2025, prior to market opening [1]. Group 1: Financial Results Announcement - The financial results for the second quarter ended June 30, 2025, will be announced on August 6, 2025 [1]. - An earnings conference call and webcast will be held on the same day at 8:30 am ET to review the results and operations [2]. Group 2: Conference Call Details - The conference call will be accessible via Kornit's website and will include dial-in options for participants [2]. - A replay of the call will be available approximately three hours after the live event until August 20, 2025 [2][3]. Group 3: Company Overview - Kornit Digital is a leader in sustainable, on-demand digital fashion and textile production technologies, offering end-to-end solutions [3]. - The company operates globally, serving customers in over 100 countries with a comprehensive range of products and services [3].

Kornit Digital (KRNT) FY Conference Summary Industry Overview - Kornit Digital is a leader in direct-to-garment digital printing on textiles, with revolutionary technology introduced through the Apollo machine [2][54] - The fashion industry is undergoing significant disruption, with a market size of $3 trillion, facing challenges in agility and sustainability [11][25] - The shift towards on-demand manufacturing is driven by changing consumer expectations for speed, flexibility, and customization [8][10][20] Core Points and Arguments - The fashion industry is experiencing its second major disruption in five years, with the first being COVID-19 [10] - Consumers now demand immediate delivery and personalized products, influenced by social media platforms like TikTok [17][18] - Brands are struggling with excess inventory and markdowns, leading to unsustainable business models [21][29] - A significant portion of the market, approximately $1 trillion, is attributed to markdowns and write-offs [25] - Companies like Shein and Zara are leading the way in agility, introducing thousands of new SKUs daily [19][22] - The need for onshore and nearshore manufacturing is emphasized, with 39% of brands indicating a shift towards on-demand production [24] Technological Advancements - Kornit's Apollo technology allows for high-quality digital printing that competes with traditional screen printing, enabling faster market response [35][38] - The introduction of Kornit X, a cloud-based platform, facilitates on-demand manufacturing and improves supply chain efficiency [43][44] - The company is moving towards a Software as a Service (SaaS) model, with 80% of revenue being recurring, aiming for 90% in the future [51][52] Market Opportunities - Kornit is targeting the bulk apparel market, which is significantly larger than its current one-off printing market [34][35] - The company is expanding into adjacent markets such as footwear and home decor, leveraging its technology for diverse applications [42][56] - Partnerships with major manufacturers like MAS, which produces for brands like Nike and Lululemon, highlight the industry's shift towards on-demand manufacturing [54][55] Additional Insights - The fashion industry's traditional focus on cost reduction is shifting towards minimizing markdowns and write-offs through agile production [28][29] - The Apollo machine is described as a game changer, capable of replacing multiple traditional screen printing machines and reducing labor costs [38][39] - Kornit reported a 10% year-over-year increase in impressions, indicating growing utilization of its systems [53] This summary encapsulates the key points discussed during the Kornit Digital FY Conference, highlighting the company's position in the evolving fashion industry and its technological innovations aimed at addressing current market challenges.

Core Viewpoint - Kornit Digital Ltd. is a global leader in sustainable, on-demand, digital fashion and textile production technologies, highlighting its commitment to innovation in the industry [1][3]. Group 1: Company Overview - Kornit Digital is headquartered in Israel and operates globally with offices in the USA, Europe, and Asia Pacific [3]. - The company provides end-to-end solutions that include digital printing systems, inks, consumables, software, and fulfillment services [3]. - Kornit Digital serves customers in over 100 countries, emphasizing its extensive market reach [3]. Group 2: Upcoming Events - Kornit Digital's CEO Ronen Samuel and Global Head of Investor Relations Jared Maymon will present at the William Blair 45th Annual Growth Stock Conference [1]. - The presentation is scheduled for June 3, 2025, at 1:00 pm ET and will be available via live audio webcast [2].

Core Insights - Kornit Digital Ltd. has entered a strategic partnership with MAS Holdings to enhance sustainable fashion production through on-demand digital technologies [1][2] - The collaboration aims to address inefficiencies in the fashion supply chain, focusing on reducing overproduction and waste while improving profitability for brands [3][4] Company Overview - Kornit Digital is a leader in sustainable, on-demand digital fashion and textile production technologies, providing end-to-end solutions including digital printing systems and fulfillment services [6] - MAS Holdings is recognized as the largest apparel technology company in South Asia, known for its collaborations with major brands like Nike and Victoria's Secret [2] Strategic Agreement Benefits - The partnership will enable brands to optimize inventory levels and respond quickly to market demands, thus minimizing waste and maximizing full-price sell-through [3][4] - MAS ACME USA will leverage end-to-end supply chain data diagnostics to enhance manufacturing strategies and increase profits by aligning production with accurate demand forecasts [5][9] Industry Impact - The agreement is positioned as a solution to the urgent need for change in the fashion industry, which is characterized by inefficiencies and a complex supply chain [4] - The collaboration promotes onshore production flexibility, allowing for agile responses to market trends and reducing long lead times associated with traditional supply chains [8][9] Future Outlook - The partnership is expected to transform the fashion industry into a more efficient and responsible production model, ultimately leading to sustainable growth and improved working capital efficiency [8][9]