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]

Financial Performance - First quarter 2025 revenues reached $46.5 million[12,39] - Adjusted EBITDA margin was -8.4%[12] - The company generated positive cash from operations during the quarter[12] - Non-GAAP gross margin improved to 45.3% in Q1 2025, compared to 37.5% in Q1 2024[44] - The company completed a $75 million accelerated share repurchase program, buying back approximately 2.5 million shares[50] Business Highlights - Annual recurring revenue (ARR) from All-Inclusive Click (AIC) contracts reached $14.5 million[22] - Approximately 80% of Kornit's revenue is now recurring or highly predictable, combining AIC with re-occurring consumables and service revenue[22] - Trailing twelve-month impressions reached a record 222 million, a 10% increase year-over-year[24,25] Future Outlook - The company expects full-year revenue growth, adjusted EBITDA profitability, and positive operating cash flow[32] - Second quarter 2025 revenue is expected to be in the range of $49 million to $55 million[51] - Second quarter 2025 Adjusted EBITDA margin is expected to be in the range of -4% to 4%[52]

Core Viewpoint - Kornit Digital Ltd. reported its first quarter results for 2025, highlighting its commitment to sustainable, on-demand digital fashion and textile production technologies amidst a challenging macro environment [2][3]. Financial Performance - First quarter revenues reached $46.5 million, an increase from $43.8 million in the same period last year [7]. - The GAAP gross profit margin improved to 42.6% from 32.3% year-over-year, while the non-GAAP gross profit margin rose to 45.2% from 37.5% [7]. - The company reported a GAAP net loss of $5.1 million, or $0.11 per basic share, compared to a net loss of $13.2 million, or $0.28 per basic share, in Q1 2024 [7][21]. - Non-GAAP net income for the first quarter was $0.6 million, or $0.01 per diluted share, compared to a non-GAAP net loss of $5.3 million, or $0.11 per basic share, in the prior year [7][21]. - Adjusted EBITDA loss was $3.9 million, an improvement from a loss of $7.8 million in Q1 2024, with an adjusted EBITDA margin of negative 8.4% compared to negative 17.9% [7][30]. Business Model and Market Opportunity - Kornit’s Apollo platform, combined with its AIC model, is driving significant growth in impressions and unlocking a mass production segment estimated at 4.5 billion impressions [2]. - The company reported annual recurring revenue from AIC contracts of $14.5 million, indicating strong initial adoption of this new business model [6]. Guidance - For the second quarter of 2025, Kornit expects revenues to be between $49 million and $55 million, with an adjusted EBITDA margin projected between negative 4% and 4% [4].