Kornit Digital (NASDAQ:KRNT) Announces Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Kornit Digital beat quarterly estimates: EPS was $0.04 versus the $0.01 loss analysts expected, while revenue reached $55.32 million, up 11.1% year over year and above the $52.80 million consensus.
• Recurring revenue showed strong momentum: Annual recurring revenue rose 79% to $33.8 million, with about 80% of revenue now recurring or highly recurring. Digital adoption among traditional screen printers also accelerated, supporting growth in bulk-apparel markets.
• Management raised its outlook: Kornit expects third-quarter revenue of $55 million to $60 million and projects second-half revenue about 15% above the first half, though profitability remains limited with adjusted EBITDA only slightly positive and a negative net margin.

Kornit Digital (NASDAQ:KRNT - Get Free Report) issued its quarterly earnings data on Wednesday. The industrial products company reported $0.04 earnings per share for the quarter, beating analysts' consensus estimates of ($0.01) by $0.05, FiscalAI reports. Kornit Digital had a negative return on equity of 1.15% and a negative net margin of 7.93%.The firm had revenue of $55.32 million during the quarter, compared to analyst estimates of $52.80 million. During the same quarter last year, the firm earned $0.03 EPS. Kornit Digital's quarterly revenue was up 11.1% on a year-over-year basis.

Here are the key takeaways from Kornit Digital's conference call:

• Q2 exceeded guidance: Revenue rose 11.2% year over year to $55.3 million, while adjusted EBITDA was positive at $0.3 million and operating cash flow reached $8.5 million, marking the 11th consecutive positive quarter.
• Recurring revenue momentum strengthened: Annual recurring revenue increased 79% year over year to $33.8 million, driven by 112% growth in the all-inclusive click model; management said roughly 80% of revenue is now recurring or highly recurring.
• Digital adoption among traditional screen printers is accelerating: About 60% of systems sold in Q2 and the first half went to screen printers, supporting Kornit’s expansion into the larger bulk-apparel market and the broader shift from analog to digital production.
• Management raised its outlook for the year: Kornit expects third-quarter revenue of $55 million to $60 million and adjusted EBITDA margins of breakeven to 3%, while projecting second-half revenue approximately 15% above the first half and high-single-digit growth for full-year 2026.
• Profitability still has room to improve: Non-GAAP gross margin was 47.4%, helped by an approximately $830,000 net tariff benefit including a $2 million refund, while operating expenses rose year over year due partly to the Konnections conference and $1.9 million of foreign-exchange headwinds.

Kornit Digital Stock Up 1.5%

KRNT stock traded up $0.27 during midday trading on Wednesday, reaching $17.85. The company had a trading volume of 189,092 shares, compared to its average volume of 304,716. The firm has a market capitalization of $767.01 million, a PE ratio of -45.77 and a beta of 1.72. The stock has a 50 day moving average price of $15.86 and a 200 day moving average price of $15.39. Kornit Digital has a fifty-two week low of $11.93 and a fifty-two week high of $19.78.

Institutional Trading of Kornit Digital

Several hedge funds have recently made changes to their positions in KRNT. CIBC Private Wealth Group LLC grew its stake in Kornit Digital by 1,359.8% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,927 shares of the industrial products company's stock worth $26,000 after buying an additional 1,795 shares during the last quarter. Johnson Financial Group Inc. acquired a new position in shares of Kornit Digital during the third quarter valued at $27,000. Raymond James Financial Inc. bought a new position in shares of Kornit Digital during the second quarter worth about $31,000. State of Tennessee Department of Treasury acquired a new stake in shares of Kornit Digital in the 2nd quarter worth about $35,000. Finally, Quadrature Capital Ltd acquired a new stake in shares of Kornit Digital in the 4th quarter worth about $144,000. Institutional investors own 92.76% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have issued reports on KRNT. Zacks Research cut Kornit Digital from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 30th. Morgan Stanley boosted their price target on Kornit Digital from $17.00 to $18.00 and gave the company an "equal weight" rating in a report on Tuesday, June 23rd. Finally, Needham & Company LLC raised their price objective on Kornit Digital from $20.00 to $22.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Kornit Digital currently has a consensus rating of "Hold" and an average price target of $21.00.

Kornit Digital Company Profile

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.

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