Kornit Digital Reports Second Quarter 2026 Results

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. Backman Chief Capital Markets Officer [email protected] KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) June 30, December 31, 2026 2025 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $33,806 $35,476 Short-term bank deposit 339,596 368,446 Marketable securities 56,329 53,926 Trade receivables, net 52,320 60,796 Inventory 54,159 47,211 Other accounts receivable and prepaid expenses 35,690 29,661 Total current assets 571,900 595,516 LONG-TERM ASSETS: Marketable securities 21,151 33,332 Severance pay fund 422 385 Property,plant and equipment, net 71,984 69,492 Operating lease right-of-use assets 16,350 17,174 Intangible assets, net 18,396 9,429 Goodwill 32,825 29,164 Other long-term assets 18,325 16,018 Total long-term assets 179,453 174,994 Total assets 751,353 770,510 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables 18,055 6,059 Employees and payroll accruals 15,811 13,214 Deferred revenues and advances from customers 1,636 1,529 Operating lease liabilities 4,248 3,886 Other payables and accrued expenses 25,198 17,305 Total current liabilities 64,948 41,993 LONG-TERM LIABILITIES: Deferred tax liability 1,785 - Accrued severance pay 1,237 1,155 Operating lease liabilities 14,060 14,727 Other long-term liabilities 3,545 62 Total long-term liabilities 20,627 15,944 SHAREHOLDERS’ EQUITY 665,778 712,573 Total liabilities and shareholders' equity $751,353 $770,510 KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(U.S. dollars in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Unaudited) (Unaudited) Revenues Products$40,047 $38,413 $75,127 $72,278 Services 15,272 11,341 28,732 23,933 Total revenues 55,319 49,754 103,859 96,211 Cost of revenues Products 17,135 17,967 33,955 33,580 Services 13,120 11,043 26,450 22,087 Total cost of revenues 30,255 29,010 60,405 55,667 Gross profit 25,064 20,744 43,454 40,544 Operating expenses: Research and development, net 9,158 9,143 18,785 18,421 Sales and marketing 18,078 14,993 31,126 29,942 General and administrative 12,713 7,474 21,927 15,118 Total operating expenses 39,949 31,610 71,838 63,481 Operating loss (14,885) (10,866) (28,384) (22,937) Financial income, net 3,920 3,465 9,476 10,848 Loss before taxes on income (10,965) (7,401) (18,908) (12,089) Taxes on income 200 117 475 488 Net loss$(11,165) $(7,518) $(19,383) $(12,577) Basic net loss per share$(0.26) $(0.17) $(0.45) $(0.28) Weighted average number of shares used in computing basic net loss per share 42,872,109 45,164,493 43,552,778 45,482,748 Diluted net loss per share$(0.26) $(0.17) $(0.45) $(0.28) Weighted average number of shares used in computing diluted net loss per share 42,872,109 45,164,493 43,552,778 45,482,748 KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESRECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS(U.S. dollars in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Unaudited) (Unaudited) Revenues $55,319 $49,754 $103,859 $96,211 GAAP cost of revenues$30,255 $29,010 $60,405 $55,667 Cost of product recorded for share-based compensation (1) (441) (542) (882) (1,061)Cost of service recorded for share-based compensation (1) (408) (404) (762) (799)Intangible assets amortization on cost of product (2) (150) (150) (298) (298)Intangible assets amortization on cost of service (2) (160) (160) (320) (320)Restructuring expenses (3) - (1,026) (167) (1,026)Tariff (6) - - (228) - Non-GAAP cost of revenues$29,096 $26,728 $57,748 $52,163 GAAP gross profit$25,064 $20,744 $43,454 $40,544 Gross profit adjustments 1,159 2,282 2,657 3,504 Non-GAAP gross profit$26,223 $23,026 $46,111 $44,048 GAAP operating expenses$39,949 $31,610 $71,838 $63,481 Share-based compensation (1) (4,251) (4,810) (8,178) (9,216)Intangible assets amortization (2) (74) (74) (148) (148)Restructuring expenses (3) (1,562) - (1,705) - M&A‑related costs (4) (166) - (401) - Class action - legal fees (5) (5,059) - (7,088) - Non-GAAP operating expenses$28,837 $26,726 $54,318 $54,117 GAAP Financial income, net$3,920 $3,475 $9,476 $10,848 Foreign exchange loss associated with ASC 842 617 1,568 484 1,535 Non-GAAP Financial income , net$4,537 $5,043 $9,960 $12,383 GAAP Taxes on income$200 $117 $475 $488 Non-GAAP Taxes on income$200 $117 $475 $488 GAAP Net loss$(11,165) $(7,518) $(19,383) $(12,577)Share-based compensation (1) 5,100 5,756 9,822 11,076 Intangible assets amortization (2) 384 384 766 766 Restructuring expenses (3) 1,562 1,026 1,872 1,026 Foreign exchange loss associated with ASC 842 617 1,578 484 1,535 M&A‑related costs (4) 166 - 401 - Class action - legal fees (5) 5,059 - 7,088 - Tariff (6) - - 228 - Non-GAAP net income$1,723 $1,226 $1,278 $1,826 GAAP diluted net loss per share$(0.26) $(0.17) $(0.45) $(0.28) Non-GAAP diluted net income per share$0.04 $0.03 $0.03 $0.04 Weighted average number of shares Shares used in computing GAAP diluted net loss per share 42,872,109 45,164,493 43,552,778 45,482,748 Shares used in computing Non-GAAP diluted net income per share 44,915,179 45,508,379 45,852,936 45,931,988 (1) Share-based compensation Cost of product revenues$441 $542 $882 $1,061 Cost of service revenues 408 404 762 799 Research and development 1,009 1,213 1,954 2,415 Sales and marketing 1,687 1,831 3,195 3,368 General and administrative 1,555 1,766 3,029 3,433 $5,100 $5,756 $9,822 $11,076 (2) Intangible assets amortization Cost of product revenues$150 $150 $298 $298 Cost of service revenues 160 160 320 320 Sales and marketing 74 74 148 148 $384 $384 $766 $766 (3) Restructuring expenses Cost of product revenues$- $1,026 $- $1,026 Cost of service revenues - - 167 - Research and development - - 87 - Sales and marketing 1,537 - 1,581 - General and administrative 25 - 37 - $1,562 $1,026 $1,872 $1,026 (4) M&A-related costs General and administrative$166 $- $401 $- (5) Class action - legal fees General and administrative$5,059 $- $7,088 $- (6) Tariff Cost of product revenues$- $- $228 $- KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(U.S. dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Unaudited) (Unaudited)Cash flows from operating activities: Net loss$(11,162) $(7,518) $(19,383) $(12,577)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 3,318 2,930 6,490 5,776 Impairment of long-lived assets 1,264 - 1,264 - Share-based compensation 5,100 5,756 9,822 11,076 Amortization of premium and accretion of discount on marketable securities, net (87) (246) (218) (550)Realized loss on sale and redemption of marketable securities (61) - (63) (22)Loss from disposal of property and Equipments - 134 - 134 Change in operating assets and liabilities: Trade receivables, net (2,674) (3,046) 9,216 1,002 Other accounts receivables and prepaid expenses (3,086) (1,507) (5,499) (2,872)Inventory 9 5,280 (6,741) 7,600 Operating leases right-of-use assets and liabilities, net 634 1,590 519 1,430 Other long term assets 141 (3,234) (2,316) (3,547)Trade payables 7,570 5,403 10,390 93 Employees and payroll accruals 3,377 (438) 3,611 1,654 Deferred revenues and advances from customers (1,200) (227) (1,202) (773)Other payables and accrued expenses 5,417 (531) 7,366 1,699 Accrued severance pay, net (58) (588) 45 (617)Other long - term liabilities 6 (28) 29 (12)Net cash provided by operating activities 8,508 3,730 13,330 9,494 Cash flows from investing activities: Purchase of property, plant and equipment and capitalized software development costs (6,740) (5,808) (10,781) (9,579)Proceeds from (investment in) short-term bank deposits, net 19,200 (79,503) 28,850 (100,503)Proceeds from sales and redemption of marketable securities 4,750 3,260 8,000 6,060 Proceeds from maturities of marketable securities 13,150 77,802 24,320 143,122 Investment in marketable securities (22,698) (6,763) (22,698) (32,578)Cash paid in connection with acquisition, net of cash acquired (5,820) - (5,820) - Net cash provided by (used in) investing activities 1,842 (11,012) 21,871 6,522 Cash flows from financing activities: Exercise of employee stock options 161 239 190 768 Payments related to shares withheld for taxes (392) (392) (1,055) (1,369)Repurchase of ordinary shares (6,977) (23,176) (37,486) (25,000)Increase in other financial liabilities - - 1,480 - Net cash used in financing activities (7,208) (23,329) (36,871) (25,601) Increase (decrease) in cash and cash equivalents 3,142 (30,611) (1,670) (9,585)Cash and cash equivalents at the beginning of the period 30,664 56,029 35,476 35,003 Cash and cash equivalents at the end of the period$33,806 $25,418 $33,806 $25,418 0 Non-cash investing and financing activities: Purchase of property and equipment on credit 450 1,167 853 1,167 Inventory transferred to be used as property and equipment 798 2,548 844 2,953 Property, plant and equipment transferred to be used as inventory 970 234 1,047 234 Lease liabilities arising from obtaining right-of-use assets 390 561 1,029 1,083 Fair value of contingent obligations to selling shareholders provided as consideration for business combination 2,443 - 2,443 - KORNIT DIGITAL LTD.AND ITS SUBSIDIARIESRECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA(U.S. dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 (Unaudited) (Unaudited) GAAP Revenues $55,319 $49,754 $103,859 $96,211 GAAP loss (11,165) (7,518) (19,383) (12,577)Taxes on income 200 117 475 488 Financial income, net (3,920) (3,465) (9,476) (10,848)Share-based compensation 5,100 5,756 9,822 11,076 Intangible assets amortization 384 384 766 766 Restructuring expenses 1,562 1,026 1,872 1,026 M&A‑related costs 166 - 401 - Class action - legal fees 5,059 - 7,088 - Tariff - - 228 - Non-GAAP Operating loss (2,614) (3,700) (8,207) (10,069)Depreciation 2,934 2,546 5,724 5,010 Adjusted EBITDA $320 $(1,154) $(2,483) $(5,059)