Kornit Digital Ltd. (NASDAQ:KRNT) is a prominent player in the sustainable, on-demand digital fashion and textile production industry. The company is known for its innovative solutions that cater to the growing demand for digital production. Kornit competes with other digital printing companies, but it stands out due to its focus on sustainability and its All-Inclusive Click (AIC) program, which aims to create a more predictable revenue stream.
In 2025, Kornit experienced a return to revenue growth, achieving positive adjusted EBITDA and strong operating cash flow. The company reported a total revenue of $208.2 million for the year, up from $203.8 million in 2024. This growth was supported by a successful peak season, which led to an 11% increase in full-year impressions. The higher utilization across its installed base and increased adoption of digital production for longer runs were key contributors to this growth.
Kornit's AIC program played a significant role in its financial performance, ending 2025 with approximately $25 million in Annualized Recurring Revenue (ARR). The program generated $15 million in AIC revenue for the full year, highlighting the accelerating customer adoption of Kornit's business model. This approach aims to build a more recurring and predictable revenue stream, which is crucial for the company's long-term success.
For the fourth quarter of 2025, Kornit reported total revenue of $58.9 million, slightly down from $60.7 million in the same period the previous year. Despite this, the company achieved a non-GAAP net income of $8.3 million, or $0.18 per diluted share, consistent with the previous year's performance. The GAAP gross profit margin was 48.7%, compared to 51.3% in the prior year, indicating a slight decrease in profitability.
Looking ahead to the first quarter of 2026, Kornit expects revenues to range between $45 million and $49 million, with an adjusted EBITDA margin between negative 10% and negative 4% of revenue. CEO Ronen Samuel expressed optimism for 2026, citing a growing pipeline of opportunities and plans to unveil breakthrough innovations. As highlighted by Morgan Stanley, Kornit maintained a "Positive" grade with a "hold" action, and the price target was raised from $15 to $17, reflecting confidence in the company's future prospects.
