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 SUBSIDIARIES
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
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 SUBSIDIARIES
RECONCILIATION 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 SUBSIDIARIES
CONSOLIDATED 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 SUBSIDIARIES
RECONCILIATION 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	)

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