Kornit Digital Ltd.

Greetings and welcome to Corneet Digital's fourth quarter and full year 2025 earnings conference call. As a reminder, this call is being recorded. I would now like to turn the conference over to our host, Mr. Andy Backman, Chief Capital Markets Officer for Corneet Digital. Mr. Backman, you may begin.

Thank you, operator. Good day, everyone, and welcome to Corneet Digital's fourth quarter and full year 2025 earnings conference call. Joining me today are Ronan Samuel, Corneet's Chief Executive Officer, and Asaf Zapari, our Chief Financial Officer. For today's call, Bronwyn will share his overall commentary on the fourth quarter and the full year, followed by Asaf, who will review our fourth quarter and full year 2025 results and provide guidance for the first quarter of 2026 before we open the call up for Q&A. Before we begin, I would like to remind you that forward-looking statements within the meaning of the U.S. securities laws will be made on this call. These forward-looking statements include but are not limited to statements relating to the company's plans, strategies, projected results of operations or financial condition, and similar statements regarding the company's expectations for the future. The fulfillment of forward-looking statements is subject to known and unknown risks and uncertainties. I encourage you to review the company's filings with the Security and Exchange Commission, including the company's annual report on Form 20F filed with the SEC on March 28, 2025, which identifies specific risk factors that could cause actual results to differ materially. Any forward-looking statements are made currently, and the company undertakes no obligation to publicly update them except as required by law. Additionally, the company will be making reference to certain non-GAAP financial measurements on this call. The reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in the company's earnings release published today. which is also posted on the company's investor relations website. At this time, I would like to now turn the call over to Ronan. Ronan?

Thank you, Andy. Good morning, everyone, and thank you for joining our Q4 and full year 2025 earning call. Before I begin, I want to briefly welcome Asaf, who recently joined as a CFO, and Andy, who returned to Coney to lead our capital marketing activities. Let me turn directly to our business performance. When we entered 2025, we set clear and measurable targets for the year. We set out to move the company back to revenue growth while at the same time transitioning the business towards a more recurring ARR model, a shift that naturally changes near-term revenue timing as we build stronger, longer-term revenue foundations. We also committed to delivering positive EBITDA and generating positive cash flow from operations, all while capturing the meaningful share of bulk apparel production and driving impression growth across our install base. I'm very pleased to share that we achieved all of these objectives. Q4 marked a solid finish to the year. Our customers had a successful peak season, reflected in a strong double-digit impression growth in Q4 year-over-year and 11% growth for the full year, reaching 243 million impressions. This growth was driven by higher utilization across our install base and an increased adoption of digital production for the longer runs. We delivered Q4 revenues of $58.9 million and adjusted EBITDA of $5.5 million, both at the upper end of our guidance. We also generated approximately $11 million in operating cash flow in Q4, making our ninth consecutive quarter of positive operating cash generation. For the full year 2025, we moved back to growth, achieved positive adjusted EBITDA, and generated strong operating cash flow of approximately 24 million. At the same time, we continued executing the transition towards a more recurring business model. We exited the year with approximately 25 million in ARR from our AIC program. This ARR is typically supported by multi-year customer commitments, usually around five years, providing strong revenue visibility and durability. In 2025, AIC contributed $15.2 million in revenues and continued to scale as adoption expands. Together, these results reflect disciplined execution and meaningful progress in building a more recurring, predictable business model. One of the most important drivers of this progress is the accelerating shift from screen production to digital. We clearly see a shift of impression into longer runs and incremental bulk apparel production moving to digital. Over 40% of our system deals in 2025, including Q4, came from net new customers, many of them traditional screen printers adopting digital production for the first time. For example, in Europe, TopQ in Poland, one of the leading screen printers in the region, recently ordered an Apollo system for bulk apparel production under our AIC model. This represents a strategic move as they began transitioning part of their high-volume screen production to digital to improve flexibility, reduce labor dependency, and respond faster to customer demand. In the U.S., mid-sized screen printers are adopting our Atlas Max platform to replace screen production for the first time. Customers like SiderStream, a U.S. apparel decoration company focused on high-volume production, and ReelThread, a U.S.-based custom apparel and merchandise producer serving brands, creators, and e-commerce customers, are moving bulk apparel impression to digital to gain speed, consistency, and efficiency. At the same time, we are seeing clear expansion of Balcapere impression from existing Cornet customers, reinforcing the strengths of our value proposition and the business outcomes we deliver. For example, Zoomies, a specialty retailer of action sports-related apparel, added its second Apollo system in Q4 on top of an existing fleet of Atlas Max Plus systems to support higher volumes, faster replenishment, and improve speed to market. At 500 level, a US leader in licensed sports fan apparel and merchandise production added an Apollo systems on top of its Atlas Max Plus fleet under the AIC model to support licensed sport apparel production, improve automation, and scale bulk and replenishment programs more efficiently. Basic thinking A leader UK screen apparel producer added a second Apollo system under the AIC program as its business continued to scale following its initial transition to digital. Together, these examples show a consistent pattern. Over 40% of our existing Apollo customers added a second system or more in 2025, reflecting strong ROI, meaningful improvements in availability, uptime, and utilization across our Apollo install base, and growing confidence in digital for bulk and mid-run production. In parallel, our Atlas Max family continues to gain traction among small and mid-sized screen printers, taking the first step into digital production. We are also seeing encouraging momentum in our customized design segment, with gross momentum returning across several of our key accounts. This momentum is driven by higher utilization of existing systems, as well as customer-adding capacity through upgrading to Atlas Max Plus and by deploying additional systems to support growing demand. A good example is Marui in Japan, which expanded its production for adding a fleet of Atlas Max Plus systems to meet increasing demand for speed, quality, and operational agility in one of the most advanced print-on-demand markets globally. We are also pleased to share that our global strategic customer recently placed an order to continue upgrading its fleet to Atlas Max platform, reinforcing the long-term confidence in our technology and partnership. This also reinforces the broader trend we are seeing across our customer base with continued investment in capacity as utilization and demand grow. Beyond apparel, we continue to see growth in impression and pipeline development in the sports and footwear market. We expect 2026 to be a stronger year for our all-to-all business, both in the footwear and technical and functional apparel segments, supported by new technologies and capabilities we plan to introduce later in the year that will further expand applications and drive future growth. We are entering 2026 with a growing pipeline of opportunities and much better visibility for the year. Today, more than 83% of our revenues are recurring or highly predictable. We expect low single-digit revenue growth in 2026, reflecting our deliberate decision to accelerate the transition toward the AIC model. Alongside this, we expect stronger profitability expansion and continue positive cash flow from operation, while ARR continues to grow through additional AIC system deployments. As more customers move to AIC, our recurring revenue-based growth, enhancing visibility and strengthening the long-term scalability of our business. Our priorities remain clear. We will continue driving incremental impressions from the screen market, expanding the AIC program and delivering on our innovation roadmap to support growth beyond 2026. Before we close, I would like to personally invite you to join us at our Connection event in Miami on April 12th to 14th. This will be an opportunity to experience firsthand the progress we are making across screen, AIC, DTG, and role-to-role. you will meet hundreds of customers from around the world and see live demonstrations of the latest technology shaping the future of our industry. During the event, we will unveil breakthrough innovations designed to expand our addressable market, accelerate digital adoption, and enable our customers to capture new growth opportunities. Connection is where strategy meets execution and where the shift towards digital on-demand production becomes tangible. We look forward to seeing many of you there. I will now turn the call over to Asaf to further discuss our fourth quarter and fully results and our guidance for the first quarter. Asaf.