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.
“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.
Recurring Revenue and Click Model Expand
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.
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.
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.
Screen Printers Account for Larger Share of System Sales
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.
Margins, Cash Position and Capital Allocation
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.
Third-Quarter and Full-Year Outlook
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.
About Kornit Digital (NASDAQ:KRNT)
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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