KORNIT DIGITAL LTD (NASDAQ:KRNT) Reports Mixed Q3 2025 Results with EPS Beat and Revenue Slight Miss

KORNIT DIGITAL LTD (NASDAQ:KRNT) reported third-quarter financial results that presented a mixed picture for investors, with the company exceeding earnings expectations while falling slightly short on revenue targets. The digital textile printing specialist's performance highlights both the progress and challenges in its ongoing transition toward sustainable, on-demand production models.

Third Quarter Performance Versus Estimates

The company's Q3 2025 results showed notable divergence between earnings and revenue performance compared to analyst expectations:

• Revenue: $53.13 million, slightly below the $53.49 million estimate
• Non-GAAP EPS: $0.09, significantly above the $0.023 estimate
• Year-over-year revenue growth: 5%

While the top-line figure came in marginally below expectations, the substantial earnings beat indicates improved operational efficiency and cost management. The company achieved positive adjusted EBITDA of $1.1 million, representing a 2% margin, demonstrating its ability to maintain profitability despite revenue pressures.

Market Reaction and Price Action

Trading activity following the earnings release reflected investor uncertainty about the mixed results. Pre-market trading showed downward pressure with the stock declining approximately 7.5%, suggesting some disappointment with the revenue miss despite the earnings outperformance. This near-term reaction contrasts with the stock's monthly performance, which had shown modest gains of about 1.3% prior to the earnings announcement.

Recent performance trends show:

• Last week: -8.3%
• Last two weeks: -6.6%
• Last month: +1.3%

The negative momentum in recent weeks indicates that market sentiment had been weakening even before the earnings release, potentially reflecting concerns about the company's growth trajectory.

Strategic Developments and Business Outlook

Kornit's press release emphasized continued execution of its strategy to accelerate digital adoption in mass apparel production. The company highlighted expansion of recurring revenues under its All-Inclusive Click (AIC) model and strengthening leadership in replacing traditional screen printing with digital solutions. These initiatives form the core of Kornit's long-term plan to capitalize on the shift toward sustainable, on-demand fashion production.

Looking ahead, analysts project:

• Q4 2025 revenue estimate: $63.33 million
• Q4 2025 EPS estimate: $0.144
• Full-year 2025 revenue estimate: $215.04 million
• Full-year 2025 EPS estimate: $0.206

These forward-looking estimates suggest analysts anticipate significant improvement in the fourth quarter, particularly on the earnings front. The projected Q4 revenue represents approximately 19% growth over the just-reported Q3 figures, indicating expectations for accelerated performance.

Industry Context and Positioning

As a provider of industrial digital printing solutions for the garment and textile industries, Kornit operates in a specialized niche focused on mass customization. The company's complete ecosystem approach—encompassing printing systems, inks, software, and support services—positions it to benefit from broader industry trends toward sustainable production and reduced inventory risk through on-demand manufacturing.

The company's ability to maintain positive adjusted EBITDA amid a challenging revenue environment suggests its business model possesses inherent resilience, though the market reaction indicates investors remain cautious about growth prospects in the near term.

For detailed earnings analysis and updated estimates, view the complete earnings data for KORNIT DIGITAL LTD.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any security. Investors should conduct their own research and consult with financial advisors before making investment decisions.