KRNT

Image source: The Motley Fool. Wed., Aug. 12, 2026 at 8:30 a.m. ET Chief Capital Markets Officer - Andrew Backman Chief Executive Officer - Ronen Samuel Chief Financial Officer - Assaf Zipori Operator: Greetings and welcome to Kornit Digital's Second Quarter 2026 Earnings Conference Call. As a reminder, this call is being recorded. I would now like to turn the conference over to Andy Backman, Chief Capital Markets Officer to Kornit Digital. Mr. Backman, please go ahead. Andrew Backman: Thank you, operator. Good day, everyone, and welcome to Kornit Digital's Second Quarter 2026 Earnings Conference Call. With me today are Ronen Samuel, Kornit's Chief Executive Officer; and Assaf Zipori, our Chief Financial Officer. For today's call, Ronen will share his overall commentary on the second quarter followed by Assaf, who will review our results and provide guidance for our third quarter before we open up the call 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 statements involve known and unknown risks and uncertainties. I encourage you to review the company's filings with the SEC, including our annual report on 20-F, which identifies specific risk factors that could cause actual results to differ materially. Additionally, we will reference certain non-GAAP financial measures. Reconciliations to the most comparable GAAP measures can be found in the earnings release published today and posted at ir.kornit.com. At this time, I would like to turn the call over to Ronen. Ronen? Ronen Samuel: Thanks, Andy, and good day, everyone. Thank you for joining us today. The second quarter marked another important steps in Kornit's transformation. We delivered revenue of $55.3 million, above the high end of our guidance; generated positive adjusted EBITDA, also above the high end of our guidance range; and positive operating cash flow for the 11th consecutive quarter. We also increased annual recurring revenue by $7 million bringing total ARR to $33.8 million representing 79% year-over-year growth while revenue from All-Inclusive Click increased by 112% compared with the prior year period. In addition, trailing 12-month impressions grew 15% reflecting higher production volume across our installed base. We continue to see healthy growth in system deliveries, expanding our production footprint and customer base. Approximately 40% of our system sales during the quarter came from new customers demonstrating our continued ability to expand the market while growing alongside existing customers. Importantly, approximately 60% of system sales in both Q2 and the first half of 2026 were to traditional screen printers, providing clear evidence of the momentum we are seeing in the transition from analog to digital production. These results reinforce the progress we are making against our strategy. We are delivering revenue growth while significantly expanding annual recurring revenue, improving the quality of our growth and giving us greater visibility into the future. A key driver of this progress is our All-Inclusive Click model, which is increasing the share of the business built around long-term customer commitments. Every new All-Inclusive Click agreement creates a long-term partnership, typically built around a 5-year commitment for our customers, AIC lower upfront investment and provides the flexibility to scale production as their business grows. As a result, we are seeing higher system utilization, stronger customer engagement and deeper adoption of the Kornit platform. For Kornit, AIC strengthens customer relationship and aligns our economics directly with our customer success. As our customers grow, we grow with them. What gives us confidence today is not simply the financial performance we delivered this quarter. It is what we are hearing from customers around the world. And one thing is becoming increasingly clear, the economics of manufacturing are changing. Brands, retailers and traditional screen printers are looking for greater flexibility, shorter production runs, faster response time and manufacturing closer to the point of demand while inventory risk and labor shortages continue to pressure traditional manufacturing models. We are seeing this transition particularly clearly among traditional screen printers where digital is increasingly replacing screen production across a growing range of applications. These are not short-term trends. They represent a structural shift in how our industry will manufacture over the coming decade. Having spent more than 3 decades in this industry, I believe we are witnessing one of the most significant manufacturing transition of my career. Customers are no longer asking whether digital production has a role. They are asking how quickly they can shift from analog to digital. That's exactly what we have been preparing for. For years, we have invested in industrial production systems like Apollo, Atlas MATRIX and Presto MAX PLUS while expanding into software, AI and automation. As the industry moves towards digital manufacturing, Kornit is positioned as a manufacturing platform; bringing together industrial production systems, software, AI and automation into one integrated solution. We are no longer simply helping customers buy better printing systems. We are helping them build smarter, more profitable manufacture businesses. Our ambition isn't simply to replace analog printing. It's to make on-demand digital manufacturing the new standard for apparel production. Our customers are the clearest proof that this transition is already underway. Let me share a few examples. Jerry Leigh, one of the leading screen printers in the U.S. and a new customer to Kornit, recently invested in 2 Apollo systems and 2 Atlas MAX platforms illustrating how traditional screen printers are transitioning production from analog to digital. Another great example is Printful, one of our largest and most strategic global customers. Already operating a large fleet of Atlas MAX systems, they recently added 2 Apollo systems reflecting the value they are realizing from the Kornit platform and their continued confidence in Kornit. Shirt Monkey, one of the U.K. leading print on-demand providers, expanded from Atlas MAX to both Apollo and Atlas MATRIX through our All-Inclusive Click model, demonstrating how AIC can accelerate digital adoption with lower upfront investment. Finally, SNQS, a leading screen printer in India, expanded from Atlas MAX to Apollo within just 1 year to support higher volume screen replacement, demonstrating how mainstream screen printers are increasingly scaling digital production as they transition more of their core production from analog to digital. While these customers operate in different markets and applications, they all point to the same conclusion. Manufacturers are increasingly choosing digital production because it delivers a smarter, more flexible and more profitable manufacturing model. As we look ahead, we enter the second half of the year with stronger backlog visibility, a healthy pipeline and continued momentum across both new customer acquisition and expansion within our installed base. Based on what we see today, we expect revenue in the second half of 2026 to be approximately 15% higher than the first half of the year, positioning us to deliver a high single-digit revenue growth for the full year while continuing to improve profitability and generate positive operating cash flow. Before I conclude, I'd like to leave you with one final perspective. Many people still think of Kornit primarily as a capital equipment company. The reality today is quite different. Approximately 80% of our revenue is recurring or highly recurring in nature generated through annual recurring revenue in services and software. This fundamentally changes our business model, making it more resilient and giving us greater visibility into the future revenues. At the same time, the industry accelerating shift from analog to digital manufacturing represent a significant structural growth opportunity for Kornit. Combined with a highly recurring business model and market-leading technology, this gives us confidence in our ability to create sustainable long-term value for our customers and shareholders. I'd like to thank our customers for their continued trust, our partners for their collaboration, our employees for their relentless commitment and execution and our shareholders for their continued support. With that, let me turn the call over to Assaf. Assaf? Assaf Zipori: Thank you, Ronen, and good day, everyone. Let me walk you through our second quarter financial results and the continued progress we're making across the business. Second quarter revenue was $55.3 million growing 11.2% year-over-year and exceeding the upper end of our guidance range. Services revenue increased 34.7% while product revenue grew 4.3%, both benefiting from higher customer activity and continued expansion in the utilization of our installed systems. Annual recurring revenue reached $33.8 million representing 79% growth year-over-year and 26% sequentially reflecting continued momentum in the adoption of our All-Inclusive Click model. Importantly, ARR represents only the next 12 months of minimum commitments under our AIC agreements. With these agreements typically spanning 5 years, they represent approximately $142 million in total contract value providing strong visibility into future revenues. AIC delivered another strong quarter with revenue increasing 112% year-over-year and 32.7% sequentially. The model continues to drive higher system utilization while closely aligning our economics with our customers' success. As Ronen mentioned, approximately 80% of our revenue today is recurring or highly recurring in nature generated through ARR, ink, services and software. This provides greater resilience and the visibility while supporting sustainable, profitable growth. Now turning to margins. Second quarter non-GAAP gross margin was 47.4%, an improvement of 110 basis points compared with the prior year period. The quarter included a net tariff-related benefit of approximately $830,000 driven by a $2 million tariff refund during the quarter. Underlying gross margins performance continued to improve sequentially reflecting higher customer activity, increased platform utilization and the continued evolution of our revenue mix. Turning to operating expenses. Second quarter non-GAAP operating expenses were $28.8 million, an increase of $2.1 million year-over-year. The increase primarily reflects expenses associated with our highly successful Konnections conference, which supported customer engagement and commercial momentum, together with approximately $1.9 million of foreign exchange headwinds. Adjusted EBITDA was $0.3 million compared with a loss of $1.2 million in the second quarter of 2025. Adjusted EBITDA margins improved 290 basis points year-over-year to 0.6%, exceeding the upper end of our guidance range. Turning to cash and our balance sheet. We ended the quarter with approximately $451 million in cash, bank deposits and marketable securities. Operating cash flow was approximately $8.5 million, marking our 11th consecutive quarter of positive operating cash flow and reflecting continued working capital discipline. Our balance sheet remains a significant strategic asset. It provides the flexibility to support continued investment in our AIC program, fund inventory to meet anticipated customer demand, invest in product innovation across our portfolio and pursue targeted acquisitions that strengthen our platform strategy with Print Factory, which closed in the second quarter, serving as the most recent example. During the quarter, we also invested $5.4 million under our share repurchase program. Since the program began in 2023, we have repurchased approximately 9.5 million shares for about $205 million with approximately $60 million remaining under the current authorization. We remain committed to disciplined capital allocation strategy, balancing investment in long-term growth with returning capital to shareholders while maintaining strong financial flexibility. Turning to guidance. For the third quarter of 2026, we expect revenue between $55 million and $60 million with adjusted EBITDA margin between breakeven and 3%. Looking beyond the quarter, we expect second half 2026 revenue to be approximately 15% higher than the first half supporting high single-digit revenue growth for the full year, an improvement from the low single-digit growth we anticipated entering the year. Our outlook reflects continued confidence in customer demand and the strength of our commercial pipeline. As we continue to scale the business, our financial priorities remain clear: driving profitable revenue growth, improving margins, generating positive operating cash flow and investing with discipline to create sustainable long-term value to our shareholders. With that, let me turn the call back to Ronen. Ronen? Ronen Samuel: Thank you, Assaf. Operator, by that, we are ready to get questions from the audience. Operator: [Operator Instructions] Our first question comes from the line of Greg Palm with Craig-Hallum. Greg Palm: Congrats on the results. It definitely seems like things are stepping up here. Ronen, just maybe talk to us a little bit about kind of what your view is and what's happened in the last few months year-to-date, this sort of acceleration and just kind of thinking about the company where it stands today versus a few years ago, what's fundamentally different? Ronen Samuel: Yes. There is a lot of changes and what we clearly see is that the strategy that we implemented actually starting 2, 2.5 years ago are starting to deliver. We're delivering growth in revenue, in top line; but significantly expanding our ARR, which is providing us much stronger visibility into the future. Moving into recurring business model, as I mentioned, providing more predictability, but also resilience. We can see that as of today, we reached to $33.8 million of ARR and this represents 79% year-over-year growth. We ended this quarter Q2 with additional $7 million in the AIC revenue -- in ARR with AIC revenue growing by $6.5 million, which is a growth of 112%. When we are looking at it, we need to understand that this ARR is multiple years, typically 5 years model, which brings us to a total contractual value of $142 million. We're changing totally the business model of the company. When we look at it today, actually about 80% of our revenue is recurring or re-occurring revenues, which again providing visibility and predictability and resilience to the company. So from a business model from the recurring, it's changing a lot the way we are looking at the future. But even more fundamentally, let's look at the technology what we've brought to the market in the last 2 years. Starting with Apollo that is scaling up and really focusing on entering to the screen market and bringing huge volume to our customers and to Kornit. The MATRIX, we just introduced it in the beginning of Q2 and we see a massive adoption of the MATRIX getting into new markets, new applications like the Poly. We are starting to do upgrade for the installed base. We are bringing automation, AI, software with PrintFactory. Our wall-to-wall business is gaining momentum. So from a technology perspective, we are totally different company as of today and we're looking at ourselves as a manufacturing platform rather than just selling boxes. Look at the financial discipline. This is the 11th quarter in terms of bringing positive operating cash flow. So there is a lot of discipline in the way we are executing and bringing back the company to profitability and to growth. And I think the most important thing is the addressable market. If you think about it as Kornit 3 years ago, Kornit was mainly focused on the customized design market, which is a very lucrative market, but it's a niche in at the overall apparel market. It's continued to grow and Kornit continued to lead this market. But moving and entering to the screen market, the bulk apparel market, this is the biggest move that Kornit has done. And as we see today, 60% of the systems that we delivered in Q2 and also overall in H1 are going to screen market, screen replacement and we see those customers running not short run, really longer run jobs and we see them scaling very fast. Many of them leveraging the AIC model. So overall, we are totally different company as of today and we are very happy with the changes that we have done. Greg Palm: Yes. I appreciate that color. And I know a lot of us have been waiting for some time for this acceleration from analog to digital and it seems like it's finally starting to happen. But if you could kind of help us understand is that being driven more by kind of that traditional screen printing industry or how much is actually driven by kind of your traditional customer base that is actually kind of helping accelerate that shift itself? Ronen Samuel: Yes. So it's being driven mainly from new customers that we are penetrating in the screen market although we see also growth within our installed base. Some of our customers that were dealing in customized design see the opportunity now leveraging our technology to penetrate also the bulk apparel. And we see also some screen printers that leveraging digital technology to go after customized design. So it's a mixed bag. But we need to understand that a few things are happening in the screen market. First of all, is the market changing. Even without talking about the business model and the technology from Kornit perspective, is the market is changing. I'm traveling a lot, meeting many brands, screen printers; they're all talking about the same thing. They need agility, they need flexibility, they need faster turnaround. The product in terms of run is becoming much, much shorter. They needed onshore or nearshore production and this is a massive change. Another big change in this market is labor. First of all, labor is very difficult today to retain and to find, but it's also expensive. So automation is very, very important. So this is a major driver for screen printer and anyone that is dealing with bulk apparel that's looking for a new technology. Kornit for many years was working for developing technology that will meet the needs of the screen market. For the first time when we introduced the MAX technology and the Apollo, we finally got to the level that we can meet the quality, the flexibility, the total cost of ownership and the automation that bring with the Apollo. But think about it now that we are bringing the workflow together with PrintFactory, some AI capability as well into the production that's really helping those customers to switch much faster into digital. Another thing that is very, very important and really accelerating the penetration of Kornit into the screen market is really the new model, the AIC model; which reduce the investment, the upfront capital investment from those screen printers that are not used to invest millions of dollars in equipment. But now they have predictability and they know exactly how much they need to pay per impression, per copy. And digital now is very, very competitive and going after longer run in terms of the total cost of ownership of per impression. Other things -- in the end what we need to know in the screen market is about the customer. I gave few examples. The example of Jerry Leigh, SNQS in India. We see really main screen printers in places that you wouldn't expect like India, like Sri Lanka, like other places moving to digital and leveraging Kornit technology and I gave few examples. And the results to see 60% of our system sales going to this market speaks by itself. So we are very, very pleased. Another benefit that we see with our customers and many of them really when we are monitoring what they are printing, we see that they're starting to use our technology for much longer runs and they are scaling. Some of the new customers like SNQS, like Jerry Leigh scaling very, very fast, leveraging the All-Inclusive Click model. Greg Palm: Okay. Thanks for all the thoughts and appreciate that new TCV disclosure. I think that will be really helpful. Operator: Our next question comes from the line of Erik Woodring with Morgan Stanley. Erik Woodring: Congrats on the results. Ronen, maybe starting just with 2 related questions. Just first, as we think about the 15% half-on-half growth into the second half, can you help us just better understand where exactly that growth will primarily come from; whether that's upgrades, system sales, consumables; and how that might be different from the first half? And then just a quick follow-up, please. Ronen Samuel: Yes. First of all, as you know very well, Kornit has a seasonality in our business and always H2 is stronger than H1. Many of our customers has peak season during the end of Q3 and Q4. So traditionally, H2 is stronger than H1. Now in terms of visibility, we are entering H2 with much better visibility. As I mentioned, 80% of our revenue is recurring, re-occurring. So we have a very good visibility to more than 80% of our revenue already. We are entering with a very strong pipeline and some orders already in hand into Q3 and even in Q4 and all of it is coming from systems. Some of the systems are CapEx systems. Some of the systems are into the AIC model. We have a very good line of sight on the AIC. So if we deliver in Q2, $6.5 million for Q2, you will see expansion of revenue quite significantly in H2 into the AIC revenue that we are collecting in Q2 and Q3. So AIC revenue is a major growth engine in H2 versus H1. Also in terms of the system sales that we are seeing and of course the main growth in H2 is the consumables, is the ink. So overall, not only we expect H2 to grow by 15% versus H1, but we expect a significant expansion in our gross margin and specifically in our profitability because of the consumables. Erik Woodring: Okay. I'm just writing all that down. And then maybe just a follow-up. You've seen 4 quarters of accelerating trailing 12-month impressions growth. Can you maybe just provide a bit more detail to us about what you're hearing from your customers in terms of their end demand? What could be causing this acceleration? Is it an industry dynamic? Is it maybe somewhat unique to Kornit? Maybe just elaborate a bit on why we're seeing accelerations in impressions growth. Ronen Samuel: So overall apparel market, and you can read the reports like anyone else, is not doing great. There's ups and downs in overall apparel market. But what we see within the apparel market is that a lot of the jobs are getting shorter. There's many more SKUs, time to market is very important. And this is why we start to see the shift from the growth of the overall market that is kind of a small growth to the growth of digital. So digital growing much, much faster because a lot of the move is moving to short runs, on-demand and onshore production. So we hear it. There is differences between the different regions. We see very strong growth in our Americas, our North America region. So this is the leading region in terms of the growth. We see also differences between type of customers; between the screen printers to the customized design, between strategic customers to the long-tail customers. We see strong growth in most of our strategic customers. They are growing very, very nicely. On the long tail, we see customers declining. So it's all over the place. But overall, the main message that a lot of the apparel market is moving into short runs, on demand and by that overall digital enjoying Kornit and specifically Kornit, we believe we are gaining share. Operator: Our next question comes from the line of Brian Drab with William Blair. Brian Drab: Congratulations. First question is just on the 80% that's recurring now. Does that mean that -- what's in that 20%? Does that mean 20% is outright system sales? And how has outright system sales influenced the first half and second quarter results? Ronen Samuel: Yes. So in the 20%, there are 2 main components. One is system sales, CapEx system sales and another thing is spare parts, services upgrades -- sorry, not spare parts, upgrades on services that are not recurring. So part of the revenue that you see in services is not part of the recurring revenue. Okay. What is in part of the recurring revenue within the services is our contract and spare parts that we know the tendency of selling them. Brian Drab: Yes, it's clear. That's helpful. In my model based on the guidance and all these factors, I was kind of assuming there would not be significant outright CapEx system sales. I'm just wondering if those CapEx system sales are a little bit -- the units sold is a little bit higher than you expected or is it on track? Ronen Samuel: The units sold is higher than what -- right now what we see is higher than what we expected in the beginning of the year. You see there is a split between unit sales that we are selling on CapEx to unit sales that we are selling on AIC. So as you can see that AIC is growing strongly. And the ARR for example in Q2 grew by $7 million, which means it's new systems that we sold to the market on the AIC model. In parallel, of course part of the product that you see the product revenue, which in the product revenue; you have consumable, you have AIC and you have system; there is a CapEx portion there. Actually we had a very good quarter in Q2 for the CapEx and we believe that we will continue also in H2 as we have a strong pipeline. Overall, in terms of system delivery, I would say it's something at this range that 50% of the systems are on CapEx delivery and 50% of the systems are on AIC. It changed between one quarter to another. Brian Drab: Yes. Okay. And I don't mean to focus too much on that point. I think a lot of people have been thinking about the model. It's easier to forecast. Given you have such a high level of recurring revenue, we're focusing on AIC and it's growing so well. But just been thinking if there's really any system sales in the CapEx category, then that's upside to the results and I felt like that might be happening. And then can you just, Ronen, touch on when you talk about the success you're having with screen printer customers, the traditional screen printers, is that in the U.S. mainly and is that also being driven in part by just the need to change their supply chain dynamics or is that really global where you're seeing screen printer demand? I just want to understand that dynamic better. Ronen Samuel: Yes. So the answer is very clear, absolutely global and we see a very strong adoption of screen in Europe. I mentioned for example India with SNQS, which is a manufacturing country. Even entered into Sri Lanka; but we see it in Japan and, as I mentioned, in Europe. U.S., yes, absolutely. U.S. is growing. U.S., we see a very nice penetration into traditional screen printers. I mentioned few in previous call and this call as well. So it's all over the globe. The same pressure that customers are seeing in the U.S., we see it also in Europe and in Asia. Operator: And our final question comes from the line of Jim Ricchiuti with Needham & Company. James Ricchiuti: Congrats. A couple of questions. I may have missed this information if you gave it. But did you say what percentage of your new customer adds are screen printers? Does this now represent the majority of the new customer adds that you alluded to for Q2? Ronen Samuel: Yes. So what we mentioned in Q2 and overall in H1 that 60% of the systems that we have delivered, some of them on CapEx and some of them on AIC, went to screen printer. Many of them are net new customers. James Ricchiuti: Okay. Many of them. Ronen, you also highlighted the roll-to-roll business gaining momentum. I was hoping to get a little bit more color on the progress in this area and what's driving the improvement in that direct-to-fabric part of the business. Ronen Samuel: Yes. As you know, we spoke about it in the previous call as well. 2025 was a slow year for roll-to-roll. We are putting a lot of focus to gain again momentum because we believe that we have a unique technology and the market is moving more and more into digital, into sustainability, on-demand, pigment becoming a necessity in many different applications. So we just released a new product, which is called Presto MAX PLUS, with new capability to be able to print on unique applications. Digital has an advantage in specific markets like the footwear, like home decor, like technical market and performance market. So those are the areas that we are focusing our pipeline and our funnel becoming stronger. I can hint that by the end of the year, we are going to announce about additional technology that we are bringing to the market, very exciting technology. I cannot share more than that, but there will be additional technology in this market. So overall, we are excited about the opportunity. Now it's the time to deliver. I believe that H2 will be the time that roll-to-roll will contribute to our total revenue and we are building a strong pipeline into 2027. James Ricchiuti: Got it. Helpful. Last question from me. How would you characterize the demand that you're seeing from your global strategic customer, including upgrades? And how should we think about the contribution from that customer also as it relates to your second half guidance? Ronen Samuel: Yes. So I cannot relate to demand and growth of our global strategic customer. This is their business and I would like they will share. I cannot share specific information. I can share what I shared in the past that we started this year upgrades for their installed -- for their systems. There's large amounts of systems going through upgrades started in Q1, continued in H2 and we believe that it will continue also in next year. There are multiple projects that we are working together with these strategic customers, global strategic customers. We have excellent relationship, but I cannot share more information specifically on this account. Operator: Thank you. And Mr. Samuel, we have no further questions. I will turn it back over to you for final remarks. Ronen Samuel: All right. So thank you, everyone, for joining us today. We are really pleased with the progress we delivered in Q2 and more importantly, encouraged by what we see ahead. Our strategy is translating into results. Our recurring revenue base continued to grow and we are seeing increasing momentum as traditional screen production move from analog to digital. We know there is still a lot of work ahead of us. Our focus remains on execution, customer success and continuing to build strong and more profitable Kornit. We like to thank you. Thanks to our customers, our employees, our shareholders for your continued trust and support. We look forward to updating you again on the next quarter. Thank you and have a great day. Andrew Backman: Great. Thank you, Ronen, and thank you, Assaf, and thank you all for joining us today. As always, please feel free to reach out to me directly should you have any follow-up questions. Shamal, if you could please give the replay instructions, I would appreciate it. Operator: Thank you. And as far as the replay instructions, you may contact or visit viavid.com for the replay information. And with that, we do thank you for your participation. This concludes today's conference and you may disconnect your lines at this time. Thank you. Before you buy stock in Kornit Digital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kornit Digital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Total Revenues of $55.3 Million, Above High End of Guidance as Business Transformation Continues Positive Adjusted EBITDA Margin Above High End of Guidance ARR Increased to $33.8 Million, Up 79% Year-Over-Year AIC Revenues Increased 112% Year-Over-Year Trailing Twelve-Month Impressions Up 15% Year-Over-Year Strong Screen Market Penetration, Representing Approximately 60% of Systems Sold in the Second Quarter and First Half of 2026 Positive Operating Cash Flow for the Eleventh Consecutive Quarter ROSH-HA`AYIN, Israel, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (“Kornit”, “Kornit Digital” or the “Company”) (Nasdaq: KRNT), a global leader in sustainable, on-demand, digital fashion and textile production, today reported financial results for the second quarter ended June 30, 2026. “The second quarter marked another important step in Kornit’s transformation,” said Ronen Samuel, Chief Executive Officer of Kornit Digital. “We are delivering growth while fundamentally improving the quality of our business. Strong Annual Recurring Revenue (“ARR”) and All-Inclusive Click (“AIC”) growth, increasing customer system utilization, as well as continued positive cash flow generation, all demonstrate the growing value of our offerings. With approximately 80% of our revenues being recurring or highly recurring in nature, we have greater visibility, and our business is becoming more resilient.” “We are seeing clear momentum in the shift from analog to digital manufacturing, particularly among traditional screen printers. Approximately 60% of systems sold in both the second quarter and the first half of the year were to traditional screen printers, demonstrating the growing momentum behind the screen market’s transition from analog to digital production. With our industrial production systems, software, AI and automation, we believe Kornit is well positioned to capture this significant structural growth opportunity.” “We enter the second half of the year with a healthy pipeline and continued momentum across both new customers and our existing installed base. Combined with market-leading technology and the accelerating shift to digital manufacturing, we believe Kornit is well positioned to create sustainable long-term value for our customers and shareholders.” Second Quarter 2026 Results of Operations Total revenues for the second quarter of 2026 increased to $55.3 million compared with $49.8 million in the prior year period. AIC revenues for the second quarter of 2026 increased by 112% compared with the prior year period. ARR at the end of the second quarter was approximately $33.8 million compared with $18.9 million at the end of the prior year period. GAAP gross profit margin for the second quarter of 2026 was 45.3% compared with 41.7% in the prior year period. On a non-GAAP basis, gross profit margin was 47.4%, compared with 46.3% in the prior year period. Both GAAP and non-GAAP gross profit margins were supported by a net tariff-related benefit of approximately $830,000, driven by a $2 million tariff refund during the quarter. GAAP operating expenses for the second quarter of 2026 were $39.9 million, compared with $31.6 million in the prior year period. On a non-GAAP basis, operating expenses were $28.8 million compared with $26.7 million in the prior year period. GAAP net loss for the second quarter of 2026 was $11.2 million, or ($0.26) per diluted share, compared with net loss of $7.5 million, or ($0.17) per diluted share, in the prior year period. Non-GAAP net income for the second quarter of 2026 was $1.7 million, or $0.04 per diluted share, compared with non-GAAP net income of $1.2 million, or $0.03 per diluted share, in the prior year period. Adjusted EBITDA for the second quarter of 2026 improved to $0.3 million compared with adjusted EBITDA loss of $1.2 million for the second quarter of 2025. Adjusted EBITDA margin for the second quarter of 2026 was 0.6% compared with negative 2.3% in the prior year period. Third Quarter 2026 Guidance For the third quarter of 2026, the Company currently expects its revenues to be in the range of $55 million to $60 million and its adjusted EBITDA margin to be between breakeven and 3%. Earnings Conference Call Information The Company will host a conference call today, August 12, 2026, at 8:30 a.m. ET, or 3:30 p.m. Israel time, to discuss the results, followed by a question-and-answer session with the investor community. A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-877-407-0792 or 1-201-689-8263. The toll-free Israeli number is 1 809 406 247. To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671 and enter confirmation code 13760977. The telephone replay will be available approximately three hours after the completion of the live call until 11:59 pm ET on August 26, 2026. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website. About Kornit Digital Kornit Digital (NASDAQ: KRNT) is a worldwide market leader in sustainable, on-demand, digital fashion and textile production technologies. The Company offers end-to-end solutions including digital printing systems, inks, consumables, software, and fulfillment services through its global fulfillment network. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit Digital serves customers in more than 100 countries. To learn more, visit www.kornit.com. Forward Looking Statements Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as “will,” “expects,” “anticipates,” “believes,” “intends,” “planned,” or other similar words. These forward-looking statements include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, including with respect to the Company’s AIC program, the Company’s prospective results of operations and financial condition, including the Company’s guidance for the third quarter of 2026; and all developments that the Company expects or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: the Company’s degree of success in developing, introducing and selling new or improved products and product enhancements including, specifically, the Company’s Presto products, the Company’s Atlas family of products and the Apollo direct-to-garment platform; the extent of the Company’s ability to increase sales of its systems, ink and consumables; the extent of the Company’s ability to continue to grow customer adoption of the AIC model; the development of the market for digital textile printing generally; the Company’s securities class action litigation expenses; and those additional factors referred to under “Risk Factors” in Item 3.D of the Company’s Annual Report on Form 20-F for the year ended December 31, 2025, filed with the SEC on March 26, 2026. Any forward-looking statements in this press release are made as of the date hereof, and will not be updated by the Company, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Discussion Disclosure The Company presents certain non-GAAP financial measures in this press release and in the accompanying conference call to discuss the Company’s quarterly results. These non-GAAP financial measures reflect adjustments to corresponding GAAP financial measures in order to exclude the impact of the following: share-based compensation expenses; amortization of intangible assets; restructuring expenses; foreign exchange differences associated with ASC 842; and M&A and class action-related legal fees. The Company defines “Adjusted EBITDA” as non-GAAP operating income (loss), which reflects the adjustments described in the preceding paragraph to the Company’s GAAP net income (loss), as further adjusted to exclude depreciation expense. The purpose of the foregoing non-GAAP financial measures is to convey the Company’s performance exclusive of non-cash charges and other items that are considered by management to be outside of the Company’s core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage, and evaluate the Company’s business and make operating decisions, and the Company believes that they are useful to investors as a consistent and comparable measure of the ongoing performance of the Company’s business. The Company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. The reconciliation tables included below present a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures for our results for the second quarter of 2026. We have not provided, however, in this press release guidance for our expected GAAP net loss margin in the third quarter of 2026, or a reconciliation of our guidance for Adjusted EBITDA margin in the third quarter of 2026 to the most directly comparable GAAP financial measure for that quarter (i.e., GAAP net loss margin), as the information needed to provide that GAAP guidance and that reconciliation is not available to us without unreasonable effort or with reasonable certainty from a quantitative perspective. We expect that the foregoing missing information related to our outlook on a GAAP basis for the third quarter of 2026 is likely to yield significant changes relative to our non-GAAP outlook in respect of the subject financial measure. Investor Contact Andrew G. BackmanChief Capital Markets [email protected]

Kornit Digital (KRNT) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of a loss of $0.02 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +300.00%. A quarter ago, it was expected that this digital textile printer would post a loss of $0.01 per share when it actually produced a loss of $0.01, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Kornit Digital, which belongs to the Zacks Commercial Printing industry, posted revenues of $55.32 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.09%. This compares to year-ago revenues of $49.75 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kornit Digital shares have added about 22.3% since the beginning of the year versus the S&P 500's gain of 12.9%. While Kornit Digital has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kornit Digital was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.06 on $55.53 million in revenues for the coming quarter and $0.16 on $218.89 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Commercial Printing is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Stratasys (SSYS), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This maker of 3D printers is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of -66.7%. The consensus EPS estimate for the quarter has been revised 8.3% higher over the last 30 days to the current level. Stratasys' revenues are expected to be $139.78 million, up 1.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kornit Digital Ltd. (KRNT) : Free Stock Analysis Report Stratasys, Ltd. (SSYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $55.3 million, up 11.2% year over year, exceeding the high end of guidance. Services Revenue: Increased 34.7% year over year. Product Revenue: Grew 4.3% year over year. Annual Recurring Revenue (ARR): Reached $33.8 million, up 79% year over year and 26% sequentially. All-Inclusive Click (AIC) Revenue: Increased 112% year over year and 32.7% sequentially. Non-GAAP Gross Margin: 47.4%, an improvement of 110 basis points year over year. Non-GAAP Operating Expenses: $28.8 million, up $2.1 million year over year. Adjusted EBITDA: $0.3 million, compared with a loss of $1.2 million in the prior-year period. Adjusted EBITDA Margin: 0.6%, up 290 basis points year over year. Cash and Marketable Securities: Approximately $451 million at quarter end. Operating Cash Flow: Approximately $8.5 million, marking the 11th consecutive quarter of positive operating cash flow. Share Repurchases: Invested $5.4 million during the quarter; approximately $60 million remaining under the current authorization. Third-Quarter 2026 Guidance: Revenue expected between $55 million and $60 million, with adjusted EBITDA margin between breakeven and 3%. Warning! GuruFocus has detected 6 Warning Signs with KRNT. Is KRNT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue of $55.3 million exceeded the high end of guidance, with 11.2% year-over-year growth. Annual recurring revenue (ARR) surged 79% year-over-year to $33.8 million, with total contract value of $142 million providing strong future visibility. All-inclusive click (AIC) model revenue grew 112% year-over-year, driving higher system utilization and customer engagement. Approximately 60% of systems sales in Q2 and H1 2026 were to traditional screen printers, indicating strong momentum in the analog-to-digital transition. Adjusted EBITDA turned positive at $0.3 million, improving 290 basis points year-over-year, and operating cash flow remained positive for the 11th consecutive quarter. Overall apparel market growth remains sluggish, with mixed regional performance and declines in the long-tail customer segment. Non-GAAP operating expenses increased $2.1 million year-over-year, partly due to foreign exchange headwinds of $1.9 million. Product revenue growth was modest at 4.3%, reflecting slower outright system sales compared to the recurring model shift. The roll-to-roll business is still recovering from a slow 2025, with contributions expected only in H2 2026. Guidance for Q3 2026 revenue ($55-60 million) implies a potential sequential decline from Q2, and adjusted EBITDA margin remains low at 0-3%. Q: What is fundamentally different about Kornit today versus a few years ago, and what is driving the recent acceleration in the business? A: Ronen Samuel (CEO) highlighted a complete transformation driven by a strategy implemented 2.5 years ago. Key changes include a shift to a recurring revenue model (80% of revenue is now recurring or highly recurring), the introduction of new industrial technologies like the Apollo and Atlas MATRIX systems, and a major strategic move into the traditional screen printing market. This has led to strong ARR growth (79% YoY to $33.8 million) and a total contract value of $142 million from five-year AIC agreements, providing much stronger visibility and predictability for the future. Q: Is the acceleration in the shift from analog to digital being driven more by new customers in the traditional screen printing industry or by your existing customer base? A: Ronen Samuel (CEO) stated the growth is driven mainly by new customers penetrating the screen market, though existing customers are also expanding. He emphasized a structural shift in the screen printing market driven by the need for agility, flexibility, faster turnaround, shorter run lengths, and onshore production. Labor shortages and costs are also pushing automation. Kornit's new technology, combined with the all-inclusive click (AIC) model that lowers upfront investment, is making digital highly competitive for longer runs, with 60% of systems sales in Q2 and H1 going to screen printers. Q: Where will the expected 15% half-on-half revenue growth in the second half of 2026 primarily come from? A: Ronen Samuel (CEO) explained that H2 is traditionally stronger due to customer peak seasons. The growth will be driven by strong visibility into the recurring revenue base, a strong pipeline of Systems orders (both CapEx and AIC), and a significant expansion in AIC revenue. Most importantly, the main growth driver will be consumables (ink) as the installed base grows, which is also expected to lead to significant gross margin and profitability expansion in H2. Q: What is causing the acceleration in trailing 12-month impressions growth, and is it an industry dynamic or unique to Kornit? A: Ronen Samuel (CEO) noted that while the overall apparel market is not growing strongly, a significant portion of jobs are becoming shorter with more SKUs and a need for faster time-to-market. This is driving a shift to on-demand and onshore production, causing digital to grow much faster than the overall market. He sees strong growth in North America and among strategic customers, while the long-tail customer segment is declining, indicating Kornit is gaining market share. Q: Can you clarify what constitutes the 20% of revenue that is not recurring, and how are outright CapEx Systems sales performing? A: Ronen Samuel (CEO) clarified that the 20% non-recurring revenue consists of CapEx Systems sales and non-recurring services like upgrades. He noted that unit sales are currently higher than expected at the beginning of the year. The split between CapEx and AIC system deliveries is roughly 50/50, and Q2 was a very good quarter for CapEx sales, with a strong pipeline expected to continue into H2. Q: Is the success with traditional screen printer customers primarily a US phenomenon, or is it a global trend? A: Ronen Samuel (CEO) confirmed that the adoption is absolutely global. He cited examples of strong adoption in Europe, India (SNQS), Sri Lanka, and Japan, in addition to the US. The same pressures driving the transition in the US, such as the need for agility and shorter runs, are being seen across Europe and Asia. Q: Can you provide more color on the progress and improvement in the roll-to-roll (direct-to-fabric) business? A: Ronen Samuel (CEO) acknowledged that 2025 was a slow year for roll-to-roll but stated they are regaining momentum with the new Presto MAX PLUS system, which targets unique applications like footwear, home decor, and technical markets. He hinted at exciting new technologies to be announced by the end of the year and expects roll-to-roll to contribute to total revenue in H2, with a strong pipeline building into 2027. Q: How would you characterize the demand from your global strategic customer, and how should we think about their contribution to second-half guidance? A: Ronen Samuel (CEO) declined to share specific details about the customer's demand, respecting their confidentiality. However, he confirmed that the upgrade program for their large installed base of systems began in Q1, is continuing through H2, and is expected to extend into next year. He emphasized the excellent relationship and multiple ongoing projects with this customer. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance exceeded guidance driven by a structural shift in manufacturing where brands and retailers prioritize agility, shorter production runs, and nearshore production over traditional analog models. The transition from analog to digital is accelerating, evidenced by 60% of system sales in the first half of 2026 going to traditional screen printers replacing legacy production. Management characterizes the current environment as one of the most significant manufacturing transitions in decades, with customers shifting from questioning digital's role to focusing on implementation speed. The business model has fundamentally shifted to a manufacturing platform approach, with approximately 80% of revenue now recurring or highly recurring through ARR, ink, services, and software. The All-Inclusive Click (AIC) model is driving deeper customer engagement by lowering upfront capital barriers while aligning Kornit's economics directly with customer production volumes. Strategic acquisitions, such as PrintFactory, are being integrated to move beyond hardware sales into providing comprehensive software, AI, and automation solutions. Management expects second-half 2026 revenue to be approximately 15% higher than the first half, supported by seasonal peaks and strong backlog visibility. Full-year revenue growth expectations have been upgraded to high single-digits, an improvement from the low single-digit growth anticipated at the start of the year. The AIC model provides significant forward visibility, with current agreements representing approximately $142 million in total contract value typically spanning five-year terms. Profitability is expected to expand in the second half of 2026, driven by a higher mix of consumable (ink) revenue and increased platform utilization across the installed base. Future growth initiatives include a new technology announcement for the roll-to-roll market expected by year-end to address footwear, home decor, and technical textile applications. Gross margins benefited from a one-time $2 million tariff refund, resulting in a net tariff-related benefit of approximately $830,000 for the quarter. Operating expenses were impacted by $1.9 million in foreign exchange headwinds and costs associated with the Konnections customer conference. The company maintained its 11th consecutive quarter of positive operating cash flow, ending the period with $451 million in cash and liquid assets. Capital allocation remains focused on the share repurchase program, with $5.4 million deployed in Q2 and approximately $60 million remaining under current authorization. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is attributed to traditional seasonality where Q3 and Q4 see peak production volumes, alongside a significant expansion in AIC recurring revenue. Management noted that 80% of revenue is already visible through recurring streams, with the remainder driven by a strong pipeline of system sales. Adoption is global, with significant momentum in the U.S., Europe, India, and Sri Lanka as manufacturers seek to mitigate labor shortages and rising costs through automation. The AIC model is specifically helping screen printers who are not accustomed to large upfront capital expenditures to transition their core production to digital. After a slow 2025, the segment is gaining momentum through the new Presto MAX PLUS, which targets specialized applications like footwear and home decor. Management teased a 'very exciting' additional technology announcement for this segment expected by the end of 2026. Large-scale system upgrades for a major global strategic customer began in Q1 and are expected to continue through the second half of 2026 and into next year. Management declined to provide specific demand forecasts for this customer but emphasized that multiple collaborative projects are currently underway.

Interested in Kornit Digital Ltd.? Here are five stocks we like better. Second-quarter performance exceeded expectations: Revenue rose 11.2% year over year to $55.3 million, while adjusted EBITDA improved to $0.3 million and operating cash flow remained positive for the 11th consecutive quarter. Recurring revenue and digital adoption accelerated: Annual recurring revenue increased 79% to $33.8 million, with all-inclusive click revenue more than doubling year over year. Traditional screen printers accounted for about 60% of system sales, reflecting continued migration from analog to digital production. Kornit raised its growth outlook: The company expects third-quarter revenue of $55 million to $60 million and now projects high-single-digit revenue growth for full-year 2026, supported by seasonal demand, system sales, AIC agreements and consumables such as ink. The Sell-Off In Kornit Digital May Set Up A 2nd Half Opportunity Kornit Digital (NASDAQ:KRNT) reported second-quarter 2026 revenue above its guidance range, supported by growth in annual recurring revenue, all-inclusive click agreements and demand from traditional screen printers transitioning to digital production. Revenue for the quarter totaled $55.3 million, up 11.2% from a year earlier. Chief Executive Officer Ronen Samuel said the result exceeded the high end of the company’s outlook, while adjusted EBITDA of $0.3 million also surpassed guidance. Kornit generated positive operating cash flow of about $8.5 million, its 11th consecutive quarter of positive operating cash flow. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat “The second quarter marked another important step in Kornit’s transformation,” Samuel said, pointing to revenue growth alongside expansion in recurring revenue and higher system utilization. Annual recurring revenue reached $33.8 million, rising 79% year over year and 26% sequentially. The company added $7 million in ARR during the quarter. According to Chief Financial Officer Assaf Zipori, that figure represents the next 12 months of minimum commitments under Kornit’s all-inclusive click, or AIC, agreements. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Because the agreements generally span five years, Kornit said its ARR base equates to approximately $142 million in total contract value. Revenue from the AIC model increased 112% from the prior-year quarter and 32.7% sequentially. The AIC model lowers customers’ upfront investment by charging based on production activity, Samuel said. Kornit views the arrangements as a way to improve customer engagement and align its economics with customer growth. The company said approximately 80% of revenue is now recurring or highly recurring, including ARR, ink, services and software revenue. → First Solar’s Profit Engine Faces a New Policy Test in Washington Samuel said the remaining roughly 20% includes capital-equipment system sales and nonrecurring service-related revenue, such as upgrades. He added that Kornit saw a strong quarter for outright capital-equipment sales and expects that activity to continue in the second half. About half of system deliveries are currently made under capital-expenditure arrangements and half under AIC agreements, though that mix can vary by quarter. Kornit said approximately 60% of system sales in the second quarter and first half went to traditional screen printers. Around 40% of system sales during the quarter came from new customers. Samuel characterized the momentum as global, citing adoption in the U.S., Europe, India, Sri Lanka and Japan. He said screen printers are facing demand for shorter production runs, faster turnaround times, more localized manufacturing and automation, while also confronting labor availability and cost pressures. “Customers are no longer asking whether digital production has a role,” Samuel said. “They are asking how quickly they can shift from analog to digital.” Among customer examples, Kornit said U.S. screen printer Jerry Lee purchased two Apollo systems and two Atlas MAX platforms. Printful, which already operates Atlas MAX systems, added two Apollo systems. U.K.-based print-on-demand provider Shirt Monkey expanded through the AIC model, while India-based screen printer SNQS added Apollo after using Atlas MAX. Samuel said Kornit’s Apollo, Atlas MAX and newer MATRIX offerings, combined with automation, artificial intelligence and software capabilities, position the company as a manufacturing platform rather than solely a provider of printing equipment. He also said the PrintFactory acquisition, which closed during the second quarter, adds workflow capabilities. Second-quarter non-GAAP gross margin was 47.4%, up 110 basis points from a year earlier. Zipori said the result included an approximately $830,000 net benefit related to tariffs, driven by a $2 million tariff refund. Underlying gross-margin performance improved sequentially due to greater customer activity, higher platform utilization and changes in revenue mix, he said. Non-GAAP operating expenses were $ 大发分分彩 28.8 million, up $2.1 million year over year. The increase reflected costs associated with Kornit’s Konnections customer conference and about $1.9 million in foreign-exchange headwinds, Zipori said. Adjusted EBITDA improved from a $1.2 million loss in the second quarter of 2025, and adjusted EBITDA margin rose 290 basis points to 0.6%. Kornit ended the quarter with approximately $451 million in cash, bank deposits and marketable securities. During the quarter, it repurchased $5.4 million of shares. Since launching its repurchase program in 2023, the company has bought about 9.5 million shares for roughly $205 million, with about $60 million remaining under the current authorization. For the third quarter, Kornit forecast revenue of $55 million to $60 million and adjusted EBITDA margin between breakeven and 3%. The company expects second-half revenue to be about 15% higher than first-half revenue, supporting high-single-digit revenue growth for full-year 2026. That outlook is an improvement from the low-single-digit growth Kornit expected at the start of the year. Samuel said second-half growth is expected to be supported by seasonal customer demand, AIC revenue, system sales and consumables, particularly ink. He also expects consumables to contribute to improved gross margin and profitability. Separately, Samuel said Kornit is working to rebuild momentum in its roll-to-roll business after a slower 2025. The company introduced the Presto MAX PLUS for applications including footwear, home décor, technical markets and performance markets, and said it expects roll-to-roll to contribute to revenue in the second half while building a pipeline for 2027. Kornit Digital Ltd. (NASDAQ: KRNT) is a global technology company specializing in digital textile printing solutions. Headquartered in Rosh Ha'Ayin, Israel, Kornit develops and manufactures an integrated ecosystem of industrial inkjet printers, proprietary NeoPigment inks and pretreatment systems. Its product portfolio addresses a range of applications including direct-to-garment, direct-to-fabric, digital embellishment and hybrid manufacturing, enabling businesses to produce custom apparel, sportswear, fashion and home textiles on demand. The company's flagship offerings include the Avalanche and Atlas series for high-volume production, as well as the Storm and Helix lines designed for mid-to-large scale operations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kornit Digital Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: $48.5 million, at the high end of guidance. Adjusted EBITDA Loss: $2.8 million. Operating Cash Flow: $6.3 million, positive for the 10th consecutive quarter. Annual Recurring Revenue (ARR): Approximately $27 million at the end of Q1. Non-GAAP Gross Margin: 41%, down from 45.2% in Q1 2025. Non-GAAP Operating Expenses: $25.5 million, down 7% year-over-year. Adjusted EBITDA Margin: Negative 5.8%, improved by approximately 260 basis points year-over-year. Cash Balance: Approximately $462.2 million, including bank deposits and marketable securities. Share Repurchase: Over $30 million repurchased in Q1, totaling approximately $200 million since 2023. Q2 2026 Revenue Guidance: Between $51 million and $55 million. Q2 2026 Adjusted EBITDA Margin Guidance: Between -5% and breakeven. Warning! GuruFocus has detected 2 Warning Signs with KRNT. Is KRNT fairly valued? Test your thesis with our free DCF calculator. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kornit Digital Ltd (NASDAQ:KRNT) reported Q1 2026 revenues of $48.5 million, at the high end of their guidance. The company achieved positive operating cash flow for the 10th consecutive quarter. Approximately 40% of system sales in Q1 came from new customers, indicating strong market penetration. Kornit Digital Ltd (NASDAQ:KRNT) showcased its new Atlas MATRIX platform, receiving positive feedback and building a meaningful backlog of orders. The acquisition of PrintFactory enhances Kornit Digital Ltd (NASDAQ:KRNT)'s software, workflow, and production automation capabilities. Kornit Digital Ltd (NASDAQ:KRNT) reported an adjusted EBITDA loss of $2.8 million for Q1 2026. Non-GAAP gross margins decreased to 41% from 45.2% in Q1 2025, impacted by FX movements and tariff-related costs. The strengthening of the shekel is creating pressure on the company's cost structure. Legal costs related to a prior class action lawsuit impacted financial performance, though largely covered by insurance. Despite strong revenue growth, the company continues to face challenges in maintaining profitability, with an adjusted EBITDA margin of negative 5.8%. Q: Can you discuss the momentum coming out of Konnections and the setup for the second quarter and the rest of the year? A: Ronen Samuel, CEO, highlighted that the industry is moving towards on-demand production, which was evident at Konnections. The company has shifted its strategy to target high production in the screen market and new segments like footwear. Q1 results showed growth in both products and services, with a strong pipeline for upgrades to the MATRIX platform. The AIC model is growing significantly, and the company is managing costs despite currency pressures. The acquisition of PrintFactory and the introduction of new technologies like MATRIX and Apollo are expected to drive further growth. Q: What revenue do you expect from upgrades or new system sales of the MATRIX and Presto MAX PLUS in 2026 and 2027? A: Ronen Samuel, CEO, indicated that the MATRIX platform will generate revenue from both upgrades of existing systems and new system sales. The company expects significant impression growth and increased revenue per impression, especially for polyester printing. The Presto MAX PLUS opens new markets like footwear and camouflage, with strong interest from both existing and new customers. Q: What feedback did you receive from customers at Konnections, and what was the impact on order bookings? A: Ronen Samuel, CEO, stated that Konnections was a strategic event to position Kornit at the center of the industry's shift to on-demand manufacturing. The event attracted close to 600 participants, including brands, retailers, and solution providers. The company received strong feedback and orders on the spot, with a robust pipeline for H2 and beyond, particularly from new customers. Q: How is the AIC model performing, and what is the mix between AIC and traditional CapEx methods? A: Ronen Samuel, CEO, explained that the AIC model is seeing high adoption, especially in the screen market, with over 90% of new customers opting for it. Existing customers in customized design may prefer CapEx, but newcomers are leaning towards AIC. The AIC model offers better predictability of recurring revenue and gross margins, as customers on AIC tend to print more impressions. Q: What is the average selling cycle for new customers, and how does it impact system sales? A: Ronen Samuel, CEO, noted that the market's maturity and the AIC model have shortened the sales cycle. Deals can close in one to two months, especially for existing customers. The sales cycle varies by market segment, with screen market deals taking longer than customized design. Overall, the sales cycle is becoming shorter. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Kornit Digital Ltd.? Here are five stocks we like better. Kornit Digital said first-quarter 2026 revenue came in at the high end of guidance at about $48.5 million, with positive operating cash flow for the 10th straight quarter despite a non-GAAP gross margin decline to 41% from 45.2% a year ago. Recurring revenue momentum remained a bright spot, as AIC revenue more than doubled year over year and ARR rose to about $27 million; management expects a meaningful step-up in ARR in Q2 and further acceleration in the second half of 2026. The company is expanding its addressable market with new platforms like Atlas MATRIX and Presto MAX PLUS, while its announced PrintFactory acquisition is intended to strengthen software and workflow automation; Kornit guided Q2 revenue to $51 million-$55 million. The Sell-Off In Kornit Digital May Set Up A 2nd Half Opportunity Kornit Digital (NASDAQ:KRNT) reported first-quarter 2026 revenue at the high end of its guidance range and said customer activity is strengthening as the company pushes further into digital, on-demand textile production. Chief Executive Officer Ronen Samuel said on the company’s earnings call that the quarter was “a strong start to the year” and evidence that Kornit’s strategy is translating into execution. The company posted revenue of approximately $48.5 million and an adjusted EBITDA loss of $2.8 million. Kornit also generated positive operating cash flow for the 10th consecutive quarter. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Samuel said trailing 12-month impressions grew about 12% year over year, driven by higher utilization across Kornit’s installed base and the ongoing shift from screen printing to digital production. He said approximately 40% of first-quarter system sales came from new customers, while about 65% were to traditional screen-printing customers, primarily targeting long-run production environments. Chief Financial Officer Assaf Zipori said total revenue for the quarter reflected year-over-year product and services growth of 4% and 7%, respectively. Revenue from Kornit’s AIC model grew approximately 103% compared with the first quarter of 2025. → MercadoLibre Boldly Invests in Growth: Discount Deepens Kornit ended the quarter with approximately $27 million in annual recurring revenue, or ARR, after adding about $2.1 million during the quarter. Samuel said the company expects a “meaningful step-up” in ARR in the second quarter, with further acceleration in the second half of the year, based on signed backlog, advanced pipeline and customers committed to AIC. In response to a question from Morgan Stanley analyst Maya Neuman, Samuel said adoption of AIC is particularly high among new customers in the screen-printing market. He said more than 90% of those customers are entering through AIC, while adoption among customized-design customers varies depending on whether they are new or existing customers. → MP Materials Is Quietly Building a Rare Earth Powerhouse Samuel said AIC can shorten the sales cycle and improve predictability. He added that AIC customers, on average, print more impressions than customers using traditional capital expenditure purchases because they have both commitments and incentives to produce more. Kornit reported a first-quarter non-GAAP gross margin of 41%, down from 45.2% in the prior-year quarter. Zipori said the decline primarily reflected a higher mix of systems and services relative to consumables, tied to normal seasonality. He said gross margin was also affected by foreign exchange movements related to the strengthening Israeli shekel and certain tariff-related costs, which together reduced gross margin by about 190 basis points year over year. Non-GAAP operating expenses were $25.5 million, down 7% from the prior-year period despite an unfavorable foreign exchange impact of approximately $2 million from the stronger shekel. Zipori said Kornit remains disciplined on costs while continuing to invest in growth initiatives, product innovation and go-to-market activity. The company ended the quarter with approximately $462.2 million in cash, bank deposits and marketable securities. Operating cash flow was $6.3 million. During the quarter, Kornit repurchased just over $30 million of stock under its share purchase program. Since launching its initial repurchase program in 2023 through the end of the first quarter of 2026, the company has repurchased approximately 9.1 million shares for a total gross amount of about $200 million. Asked about future buybacks, Zipori said Kornit continues to evaluate capital allocation across organic growth, acquisitions and repurchases. He noted that the company has authorization to buy up to $100 million, but said the pace does not necessarily imply a consistent quarterly run rate. Samuel highlighted Kornit’s Konnections 2026 event, which he described as a defining moment for the company and the broader industry. He said the event drew close to 600 participants, including existing customers, prospects, brands, retailers, fulfillers and partners. At the event, Kornit demonstrated its Atlas MATRIX platform for the first time. Samuel said customer response exceeded expectations, citing the platform’s ability to produce across cotton, polyester and blends with industrial-scale quality and consistency. He said the system is powered by Kornit’s Karbon Shield technology, which is designed to enable digital production on polyester fabrics while preventing dye migration. Samuel said Atlas MATRIX expands Kornit’s addressable market into polyester, sportswear, performance apparel and other growth segments. He said the company is already building a meaningful backlog of new and upgrade orders. Kornit also showcased Apollo in live production environments and, for the first time, demonstrated production on cut pieces using Apollo. Samuel said that capability opens opportunities in workflows that historically have been difficult to automate digitally at scale. Following Konnections, Kornit introduced Presto MAX PLUS at Texprocess in Frankfurt. Samuel said the product generated high interest in footwear, technical apparel, camouflage, performance wear, home décor and other high-performance applications. He said Presto MAX PLUS is powered by Kornit’s DuraTech architecture and is intended to deliver durability and print performance on demanding fabrics without traditional pre- and post-processing steps. Kornit also discussed its announced acquisition of PrintFactory, which Samuel called a strategic transaction that strengthens the company’s software, workflow and production automation capabilities. Zipori said the transaction, announced after quarter-end, is expected to close during the second quarter. Samuel said PrintFactory is already deployed across thousands of production sites globally and supports Kornit’s long-term strategy to build connected digital infrastructure for textile and apparel production, linking demand generation, workflow, production and fulfillment. For the second quarter of 2026, Kornit guided for revenue of $51 million to $55 million and adjusted EBITDA margin between negative 5% and breakeven. Zipori said the outlook reflects continued momentum in customer activity, backlog growth and execution, while also including investments in strategic initiatives and ongoing pressure from the stronger shekel. Samuel said Kornit’s backlog and pipeline are improving visibility into the second half of the year. He told analysts the company expects revenue from Atlas MATRIX to begin in the second quarter, including both new shipments and upgrades, with most upgrades expected in the third quarter and early fourth quarter and continuing into next year. In closing remarks, Samuel said the industry is accelerating toward digital on-demand production and that Kornit is increasingly positioned as a platform enabling that shift. He said the company is entering the rest of 2026 with stronger momentum, improved visibility and growing confidence in its strategy. Kornit Digital Ltd. (NASDAQ: KRNT) is a global technology company specializing in digital textile printing solutions. Headquartered in Rosh Ha'Ayin, Israel, Kornit develops and manufactures an integrated ecosystem of industrial inkjet printers, proprietary NeoPigment inks and pretreatment systems. Its product portfolio addresses a range of applications including direct-to-garment, direct-to-fabric, digital embellishment and hybrid manufacturing, enabling businesses to produce custom apparel, sportswear, fashion and home textiles on demand. The company's flagship offerings include the Avalanche and Atlas series for high-volume production, as well as the Storm and Helix lines designed for mid-to-large scale operations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kornit Digital Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.