Maya Neuman • Morgan Stanley

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CEO Ronen Samuel explained that the 5% trailing twelve-month impression growth figure was artificially low due to a calculation method. For customers not on the Kornit Connect platform, impressions are estimated from ink shipments. The recent inventory destocking by key customers led to lower ink shipments in Q2, which skewed the calculation. Samuel asserted that actual production growth is "much more" than 5%, with top customers showing strong double-digit growth. He did not quantify revenue from screen printers but noted strong adoption of both Apollo and Atlas Max systems.

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CFO Kimball Shill explained that while the pull-forward of accessories and materials shipments benefited Q2 results, he would not quantify the exact amount. He noted the company is monitoring sell-through data to understand if it was a timing shift or incremental demand. Regarding future tariffs on goods from Malaysia and other Southeast Asian countries, Shill stated they are assessing a combination of responses with a focus on consumer affordability and expect the primary impact to be felt later in Q4 2025 and more significantly in 2026.

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CFO Kimball Shill explained that Cricut's supply chain, with hardware made in Malaysia and most consumables outside China, offers a competitive advantage. He stated that while the margin impact is uncertain, the company expects to remain profitable and will use a mix of reduced promotions and targeted price increases. He confirmed some order pull-forward from U.S. partners post-quarter. CEO Ashish Arora added that pricing actions will be deliberate. On engagement, Ashish acknowledged challenges from aging user cohorts and lower activity from new users. He outlined a three-part strategy: improving the onboarding experience, scaling a new personalized marketing platform, and re-architecting the Design Space software around specific use cases to simplify creating.

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President and COO John Bruno stated the demand pressure was more pronounced in Federal and SLED accounts, while enterprise was relatively stable. He noted some high-end declines were intentional portfolio simplifications, highlighting the new Kyocera partnership as a strategic move. CFO Mirlanda Gecaj confirmed the back-half guidance incorporates conservatism on equipment demand. Bruno added that price increases were implemented to partially offset tariffs, seeing success on equipment and transactional revenue despite some pushback on contractuals.

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CEO Hanneke Faber stated there is no crystal ball for reaching the 7-10% growth target but noted the company was at +7% last fiscal year, showing it's achievable even with core categories. She mentioned new verticals like healthcare and government will take longer to contribute materially. CFO Matteo Anversa clarified that the expected positive pricing impact in Q2 is 200 basis points at the gross margin level, while Faber added that Q1's 5% net sales growth was driven almost entirely by volume.

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CEO Christine Leahy highlighted the company's resilient gross margin as evidence of its ability to maintain profitability and expressed confidence in passing along price increases. CFO Albert Miralles added that the market remained orderly and that as a cost-plus provider, CDW successfully passed through impacts while maintaining its margin structure.

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CEO Paul Bay responded that headwinds in the networking category are expected to ease in Q4. He also noted that the notebook and desktop refresh cycle has shown consistent quarterly improvement throughout the year and that this momentum is anticipated to continue, though perhaps at a more gradual pace than some industry analysts predict.

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