Kornit Digital reports stronger momentum as recurring revenue strategy accelerates
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Kornit Digital reported first-quarter 2026 revenue of $48.5 million, up from $46.5 million a year ago, as the company continued its transition toward recurring revenue and scaled digital textile production.
The company said results came in at the top end of its guidance range, with continued growth driven by increasing adoption of digital textile production and higher utilization across its installed base. Kornit highlighted that trailing 12-month impressions increased approximately 12% year over year, reflecting the ongoing industry shift from traditional screen printing to digital production.
A major focus for Kornit remains its All-Inclusive Click (AIC) business model, which generates recurring revenue through usage-based agreements. AIC revenue surged approximately 103% year over year during the quarter, while annual recurring revenue (ARR) rose to approximately $26.8 million, compared with $14.5 million in the prior-year period.
CEO Ronen Samuel said the company’s strategy is translating into measurable operational progress.
“The first quarter marked a strong start to the year and clear evidence that our strategy is translating into execution and measurable results,” Samuel said in the earnings release. He added that Kornit has now generated positive operating cash flow for 10 consecutive quarters.
Kornit also pointed to strong customer response following its Konnections 2026 event, particularly around its Atlas MATRIX production platform. The company said it has built a “meaningful backlog” for both new systems and upgrades, signaling broader adoption of digital production for higher-volume manufacturing environments.
Despite revenue gains, profitability remained under pressure. GAAP gross margin declined to 37.9% from 42.6% a year ago, while the company posted a GAAP net loss of $8.2 million, or $0.19 per diluted share, compared with a loss of $5.1 million in the prior-year quarter. On a non-GAAP basis, Kornit reported a net loss of $0.4 million, compared with non-GAAP net income of $0.6 million a year earlier.
Adjusted EBITDA improved to a loss of $2.8 million from a loss of $3.9 million in the first quarter of 2025.
| KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) |
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| (U.S. dollars in thousands) | March 31, 2026 |
December 31, 2025 |
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| (Unaudited) | (Audited) | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 30,664 | $ | 35,476 | ||
| Short-term bank deposit | 358,796 | 368,446 | ||||
| Marketable securities | 49,084 | 53,926 | ||||
| Trade receivables, net | 48,906 | 60,796 | ||||
| Inventory | 53,992 | 47,211 | ||||
| Other accounts receivable and prepaid expenses | 31,821 | 29,661 | ||||
| Total current assets | 573,263 | 595,516 | ||||
| LONG-TERM ASSETS: | ||||||
| Marketable securities | 23,614 | 33,332 | ||||
| Severance pay fund | 388 | 385 | ||||
| Property, plant and equipment, net | 69,045 | 69,492 | ||||
| Operating lease right-of-use assets | 16,903 | 17,174 | ||||
| Intangible assets, net | 10,310 | 9,429 | ||||
| Goodwill | 29,164 | 29,164 | ||||
| Other long-term assets | 18,475 | 16,018 | ||||
| Total long-term assets | 167,899 | 174,994 | ||||
| Total assets | 741,162 | 770,510 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Trade payables | 8,476 | 6,059 | ||||
| Employees and payroll accruals | 12,785 | 13,214 | ||||
| Deferred revenues and advances from customers | 1,527 | 1,529 | ||||
| Operating lease liabilities | 3,997 | 3,886 | ||||
| Other payables and accrued expenses | 20,856 | 17,305 | ||||
| Total current liabilities | 47,641 | 41,993 | ||||
| LONG-TERM LIABILITIES: | ||||||
| Accrued severance pay | 1,261 | 1,155 | ||||
| Operating lease liabilities | 14,230 | 14,727 | ||||
| Other long-term liabilities | 1,565 | 62 | ||||
| Total long-term liabilities | 17,056 | 15,944 | ||||
| SHAREHOLDERS’ EQUITY | 676,465 | 712,573 | ||||
| Total liabilities and shareholders’ equity | $ | 741,162 | $ | 770,510 | ||
| KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share and per share data) |
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| Three Months Ended March 31, |
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| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Revenues | ||||||||
| Products | $ | 35,080 | $ | 33,865 | ||||
| Services | 13,460 | 12,592 | ||||||
| Total revenues | 48,540 | 46,457 | ||||||
| Cost of revenues | ||||||||
| Products | 16,820 | 15,613 | ||||||
| Services | 13,331 | 11,044 | ||||||
| Total cost of revenues | 30,151 | 26,657 | ||||||
| Gross profit | 18,389 | 19,800 | ||||||
| Operating expenses: | ||||||||
| Research and development, net | 9,627 | 9,278 | ||||||
| Sales and marketing | 13,050 | 14,949 | ||||||
| General and administrative | 9,214 | 7,644 | ||||||
| Total operating expenses | 31,891 | 31,871 | ||||||
| Operating loss | (13,502 | ) | (12,071 | ) | ||||
| Financial income, net | 5,556 | 7,383 | ||||||
| Loss before taxes on income | (7,946 | ) | (4,688 | ) | ||||
| Taxes on income | 275 | 371 | ||||||
| Net loss | $ | (8,221 | ) | $ | (5,059 | ) | ||
| Basic net loss per share | $ | (0.19 | ) | $ | (0.11 | ) | ||
| Weighted average number of shares used in computing basic net loss per share |
44,233,446 | 45,801,003 | ||||||
| Diluted loss per share | $ | (0.19 | ) | $ | (0.11 | ) | ||
| Weighted average number of shares used in computing diluted net loss per share |
44,233,446 | 45,801,003 | ||||||
| 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) |
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| Three Months Ended March 31, |
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| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Revenues | $ | 48,540 | $ | 46,457 | ||||
| GAAP cost of revenues | $ | 30,151 | $ | 26,657 | ||||
| Cost of product recorded for share-based compensation (1) | (441 | ) | (519 | ) | ||||
| Cost of service recorded for share-based compensation (1) | (354 | ) | (395 | ) | ||||
| Intangible assets amortization on cost of product (2) | (148 | ) | (148 | ) | ||||
| Intangible assets amortization on cost of service (2) | (160 | ) | (160 | ) | ||||
| Restructuring expenses (3) | (168 | ) | – | |||||
| Tariff (6) | (228 | ) | – | |||||
| Non-GAAP cost of revenues | $ | 28,652 | $ | 25,435 | ||||
| GAAP gross profit | $ | 18,389 | $ | 19,800 | ||||
| Gross profit adjustments | 1,499 | 1,222 | ||||||
| Non-GAAP gross profit | $ | 19,888 | $ | 21,022 | ||||
| GAAP operating expenses | $ | 31,891 | $ | 31,871 | ||||
| Share-based compensation (1) | (3,927 | ) | (4,406 | ) | ||||
| Intangible assets amortization (2) | (74 | ) | (74 | ) | ||||
| Restructuring expenses (3) | (143 | ) | – | |||||
| M&A‑related costs (4) | (235 | ) | – | |||||
| Class action – legal fees (5) | (2,029 | ) | – | |||||
| Non-GAAP operating expenses | $ | 25,483 | $ | 27,391 | ||||
| GAAP Financial income, net | $ | 5,556 | $ | 7,383 | ||||
| Foreign exchange income associated with ASC 842 | (133 | ) | (43 | ) | ||||
| Non-GAAP Financial income , net | $ | 5,423 | $ | 7,340 | ||||
| GAAP Taxes on income | $ | 275 | $ | 371 | ||||
| Non-GAAP Taxes on income | $ | 275 | $ | 371 | ||||
| GAAP Net loss | $ | (8,221 | ) | $ | (5,059 | ) | ||
| Share-based compensation (1) | 4,722 | 5,320 | ||||||
| Intangible assets amortization (2) | 382 | 382 | ||||||
| Restructuring expenses (3) | 311 | – | ||||||
| Foreign exchange income associated with ASC 842 | (133 | ) | (43 | ) | ||||
| M&A‑related costs (4) | 235 | – | ||||||
| Class action – legal fees (5) | 2,029 | – | ||||||
| Tariff (6) | 228 | – | ||||||
| Non-GAAP net income (loss) | $ | (447 | ) | $ | 600 | |||
| GAAP diluted loss per share | $ | (0.19 | ) | $ | (0.11 | ) | ||
| Non-GAAP diluted income (loss) per share | $ | (0.01 | ) | $ | 0.01 | |||
| Weighted average number of shares | ||||||||
| Shares used in computing GAAP diluted net income (loss) per share | 44,233,446 | 45,801,003 | ||||||
| Shares used in computing Non-GAAP diluted net income per share | 44,233,446 | 46,355,596 | ||||||
| (1) Share-based compensation | ||||||||
| Cost of product revenues | $ | 441 | $ | 519 | ||||
| Cost of service revenues | 354 | 395 | ||||||
| Research and development | 945 | 1,202 | ||||||
| Sales and marketing | 1,508 | 1,537 | ||||||
| General and administrative | 1,474 | 1,667 | ||||||
| $ | 4,722 | $ | 5,320 | |||||
| (2) Intangible assets amortization | ||||||||
| Cost of product revenues | $ | 148 | $ | 148 | ||||
| Cost of service revenues | 160 | 160 | ||||||
| Sales and marketing | 74 | 74 | ||||||
| $ | 382 | $ | 382 | |||||
| (3) Restructuring expenses | ||||||||
| Cost of service revenues | $ | 168 | $ | – | ||||
| Research and development | 87 | – | ||||||
| Sales and marketing | 44 | – | ||||||
| General and administrative | 12 | – | ||||||
| $ | 311 | $ | – | |||||
| (4) M&A‑related costs | ||||||||
| General and administrative | $ | 235 | $ | – | ||||
| (5) Class action – legal fees | ||||||||
| General and administrative | $ | 2,029 | $ | – | ||||
| (6) Tariff | ||||||||
| Cost of product revenues | $ | 228 | $ | – | ||||
| KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) |
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| Three Months Ended March 31, |
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| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (8,221 | ) | $ | (5,059 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 3,172 | 2,846 | ||||||
| Share-based compensation | 4,722 | 5,320 | ||||||
| Amortization of premium and accretion of discount on marketable securities, net | (131 | ) | (304 | ) | ||||
| Realized loss on sale and redemption of marketable securities | (2 | ) | (22 | ) | ||||
| Change in operating assets and liabilities: | ||||||||
| Trade receivables, net | 11,890 | 4,048 | ||||||
| Other accounts receivables and prepaid expenses | (2,413 | ) | (1,365 | ) | ||||
| Inventory | (6,750 | ) | 2,320 | |||||
| Operating leases right-of-use assets and liabilities, net | (115 | ) | (160 | ) | ||||
| Other long term assets | (2,457 | ) | (313 | ) | ||||
| Trade payables | 2,820 | (5,310 | ) | |||||
| Employees and payroll accruals | 234 | 2,092 | ||||||
| Deferred revenues and advances from customers | (2 | ) | (546 | ) | ||||
| Other payables and accrued expenses | 1,949 | 2,230 | ||||||
| Accrued severance pay, net | 103 | (29 | ) | |||||
| Other long – term liabilities | 1,503 | 16 | ||||||
| Net cash provided by operating activities | 6,302 | 5,764 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of property, plant and equipment and capitalized software development costs | (4,041 | ) | (3,771 | ) | ||||
| Proceeds from (investment in) short-term bank deposits, net | 9,650 | (21,000 | ) | |||||
| Proceeds from sales and redemption of marketable securities | 3,250 | 2,800 | ||||||
| Proceeds from maturities of marketable securities | 11,170 | 65,320 | ||||||
| Investment in marketable securities | – | (25,815 | ) | |||||
| Net cash provided by investing activities | 20,029 | 17,534 | ||||||
| Cash flows from financing activities: | ||||||||
| Exercise of employee stock options | 29 | 529 | ||||||
| Payments related to shares withheld for taxes | (663 | ) | (977 | ) | ||||
| Repurchase of ordinary shares | (30,509 | ) | (1,824 | ) | ||||
| Net cash used in financing activities | (31,143 | ) | (2,272 | ) | ||||
| Increase (decrease) in cash and cash equivalents | (4,812 | ) | 21,026 | |||||
| Cash and cash equivalents at the beginning of the period | 35,476 | 35,003 | ||||||
| Cash and cash equivalents at the end of the period | $ | 30,664 | $ | 56,029 | ||||
| Non-cash investing and financing activities: | ||||||||
| Purchase of property and equipment on credit | 403 | 2,435 | ||||||
| Inventory transferred to be used as property and equipment | 46 | 405 | ||||||
| Property, plant and equipment transferred to be used as inventory | 77 | – | ||||||
| Lease liabilities arising from obtaining right-of-use assets | 639 | 522 | ||||||
| KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (U.S. dollars in thousands, except share and per share data) |
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| Three Months Ended March 31, |
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| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| GAAP Revenues | $ | 48,540 | $ | 46,457 | ||||
| GAAP loss | (8,221 | ) | (5,059 | ) | ||||
| Taxes on income | 275 | 371 | ||||||
| Financial income | (5,556 | ) | (7,383 | ) | ||||
| Share-based compensation | 4,722 | 5,320 | ||||||
| Intangible assets amortization | 382 | 382 | ||||||
| Restructuring expenses | 311 | – | ||||||
| M&A‑related costs | 235 | – | ||||||
| Class action – legal fees | 2,029 | – | ||||||
| Tariff | 228 | – | ||||||
| Non-GAAP Operating loss | (5,595 | ) | (6,369 | ) | ||||
| Depreciation | 2,790 | 2,464 | ||||||
| Adjusted EBITDA | ||||||||
