Kornit Digital flips the switch on recurring revenue as ‘AIC’ hits $25M ARR

Kornit Digital (NASDAQ:KRNT) marked a major structural turning point in 2025, successfully transitioning its business from one-time equipment sales to a resilient recurring revenue model.

The Rosh Ha’Ayin, Israel-based company reported full-year revenue of $208.2 million, a return to growth that was anchored by the rapid adoption of its All-Inclusive Click (AIC) program.

The AIC model—a "pay-as-you-print" service that covers hardware, ink, and maintenance—ended the year with an Annualized Recurring Revenue (ARR) of approximately $25 million, up from just $3.3 million in 2024.

This shift has radically altered Kornit’s revenue profile; management noted that over 83% of total revenue is now classified as recurring or highly predictable.

Despite the strategic progress, the transition continues to impact near-term margins.

For the fourth quarter, Kornit reported revenue of $58.9 million and a modest GAAP net income of $1.7 million.

However, the company issued a cautious outlook for the first quarter of 2026, projecting revenue between $45 million and $49 million with an adjusted EBITDA margin of -10% to -4%.