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Kornit Digital (KRNT)
NASDAQ:KRNT
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Kornit Digital
(NASDAQ:KRNT)
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Rating:62Neutral
Price Target:
$15.00
▲(4.02% Upside)
Action:ReiteratedDate:02/13/26
Score is driven primarily by solid financial resilience (strong balance sheet and improved cash generation) and a constructive earnings outlook focused on expanding recurring ARR, partially offset by continued GAAP unprofitability/negative P/E and technical overbought risk despite an overall uptrend.
Positive Factors
Balance Sheet Strength
Kornit’s very low leverage and conservative capital structure provide lasting financial flexibility. With minimal debt relative to equity, the company can fund R&D, support longer sales cycles, absorb cyclical equipment demand, and execute ARR-focused initiatives without near-term refinancing risk.
Recurring Revenue / ARR Build
Rapid ARR and AIC expansion creates a more predictable revenue base that reduces dependence on lumpy equipment sales. Multi-year commitments and higher recurring revenue improve visibility, support customer lifecycle monetization, and make top-line durability less sensitive to capital spending cycles.
Cash Generation & Liquidity
Nine consecutive quarters of positive operating cash flow and a large cash position give Kornit durable runway to invest, scale AIC/ARR, fund working capital, and pursue targeted buybacks or capex. Strong liquidity cushions execution risk during revenue transitions.
Negative Factors
Revenue Downtrend & Losses
A multi-year revenue decline paired with ongoing GAAP losses means the company’s path to durable profitability is unproven. Even with improving margins, persistent top-line weakness raises execution risk and increases reliance on ARR and higher utilization to offset weaker system sales.
Margin Pressure from Mix, Tariffs & FX
Structural mix shifts toward different products plus tariffs and FX exposure have compressed gross margins. If persistent, these factors can cap operating leverage from higher volumes and slow sustainable EBITDA expansion as recurring ARR may carry different margin dynamics than systems sales.
Segment Execution & Longer Sales Cycles
Underperformance in roll-to-roll and extended onboarding for new customers are durable operational constraints. Longer sales and ramp cycles delay revenue realization, raise customer success costs, and slow the pace at which installed-base utilization and consumables consumption scale to support recurring revenue growth.
Kornit Digital (KRNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$645.94M
Dividend YieldN/A
Average Volume (3M)334.32K
Price to Earnings (P/E)―
Beta (1Y)2.02
Revenue Growth9.62%
EPS Growth67.12%
CountryUS
Employees715
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.18
Shares Outstanding44,794,720
10 Day Avg. Volume256,161
30 Day Avg. Volume334,324
Financial Highlights & Ratios
PEG Ratio3.36
Price to Book (P/B)0.91
Price to Sales (P/S)3.11
P/FCF Ratio204.08
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit6.82
Enterprise Value/Ebitda-28.52
Forecast
1Y Price Target
$20.25Price Target Upside40.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.29
Revenue Forecast (FY)$212.75M
Kornit Digital Business Overview & Revenue Model
Company DescriptionKornit Digital Ltd. develops, designs, and markets digital printing solutions for the fashion, apparel, and home decor segments of printed textile industry in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company's solutions include digital printing systems, ink and other consumables, associated software, and value-added services. Its products and services include direct-to-garment printing platform for smaller industrial operators to mass producers; NeoPigment ink and other consumables; QuickP designer software; and maintenance and support, consulting, and professional services. The company serves decorators, online businesses, brand owners, and contract printers. Kornit Digital Ltd. was incorporated in 2002 and is headquartered in Rosh HaAyin, Israel.
How the Company Makes MoneyKornit Digital primarily makes money by selling digital textile printing equipment and by generating recurring revenue from customers who operate that installed base.
1) Equipment (systems) revenue: A major source of revenue comes from the sale of its industrial DTG/DTF printers and related hardware. These are typically higher-ticket, less frequent purchases tied to customer capital expenditure cycles, production expansion, or replacement/upgrade needs.
2) Consumables revenue (recurring): Kornit sells consumables used in the printing process—most notably inks—and this can create an ongoing, usage-based revenue stream that scales with customers’ print volumes. As the installed base grows and customers print more, consumables purchases can provide repeat business and help smooth cyclicality in equipment demand.
3) Services, software, and support: Kornit also earns revenue from services associated with its systems, which may include maintenance/support arrangements, training, professional services, and software/workflow solutions that help customers run production more efficiently. These offerings can be sold alongside equipment or over time to existing customers.
4) Ecosystem/market adoption factors: Demand for Kornit’s offerings is influenced by broader shifts toward on-demand manufacturing, e-commerce fulfillment, faster design-to-delivery cycles, and reduced inventory/overproduction in apparel and textiles. Significant partnerships or specific counterparty arrangements contributing to earnings: null.
Kornit Digital Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
Overall the call presented a constructive transformation story: the company met its 2025 objectives (return to growth, positive adjusted EBITDA, consistent operating cash generation) and materially expanded recurring ARR/AIC revenue and impressions. Customer adoption of flagship products (Apollo, Atlas MAX family) and multiple multi-system renewals/upgrades are strong positives. Offsetting these gains are margin compression (impacted by product mix, tariffs and FX), a decline in Q4 EBITDA versus prior-year quarter, underperformance in roll-to-roll in 2025, and conservative near-term guidance (negative Q1 EBITDA margin and low single-digit revenue growth for 2026) as the business transitions to a more recurring model. On balance the call emphasized durable progress and improved predictability, while acknowledging near-term margin and segment-specific challenges.Q4-2025 Updates
Positive Updates
Revenue and Profitability Achieved Targets
Q4 revenue of $58.9M (at upper end of guidance) and full year 2025 revenue of $208.2M, up 2% YoY. Company delivered positive adjusted EBITDA for full year 2025 of $1.5M (versus $0.3M prior year) and Q4 adjusted EBITDA of $5.5M. Executed on stated 2025 objectives: returned to revenue growth, achieved positive EBITDA and generated positive operating cash flow.
Strong Cash Generation and Liquidity
Generated operating cash flow of $10.6M in Q4 and approximately $24.4M for full year 2025. This marked the ninth consecutive quarter of positive operating cash flow. Cash, bank deposits and marketable securities of approximately $491.2M at quarter end.
Rapid ARR and AIC Expansion
Exited 2025 with roughly $24.8M–$25M in ARR from the AIC program (multiyear, ~5-year commitments). AIC revenue increased materially to ~$15.0M in 2025 from $3.3M in 2024 (more than a 300% increase year-over-year for the full year), demonstrating strong recurring revenue build and predictability.
Impression Growth and Installed Base Utilization
Impressions reached 243 million for full year 2025, up 11% YoY, and Q4 showed strong double-digit impression growth YoY. Growth driven by higher utilization across installed base and increased adoption of digital for longer runs.
Product Traction — Apollo and Atlas MAX
Apollo gained momentum: over 40% of existing Apollo customers added a second system or more in 2025; strong Q4 peak-season uptime (>90%) reported for Apollo. Atlas MAX family continues to gain traction among small/midsize screen printers and upgrades to Atlas MAX PLUS are driving capacity expansion (e.g., Zumiez, 500 Level, MARUI).
Recurring/Highly Predictable Revenue Mix
Management reports that more than 83% of revenues entering 2026 are recurring or highly predictable, reflecting the shift toward AIC/ARR and subscription-style revenue that improves visibility and long-term durability.
Capital Return Activity
Repurchased $27M of shares in 2025 and a total of ~6.9M shares (~$167M gross) repurchased since 2023, demonstrating active capital allocation alongside investment plans.
Negative Updates
Gross Margin Compression
Q4 non-GAAP gross margin fell to 50.7% from 55.1% in Q4 2024 (down 4.4 percentage points). Full year non-GAAP gross margin declined to 47.2% from 48.6% in 2024 (down 1.4 percentage points). Management attributed part of the decline to product mix changes and tariffs.
Quarterly EBITDA Decline Versus Prior Year
Q4 adjusted EBITDA decreased to $5.5M from $8.4M in Q4 2024 (approximately a 34% decrease year-over-year in dollar terms). Q4 adjusted EBITDA margin declined to ~9.3% from 13.8% a year ago.
Near-Term Profitability Guidance Weakness
Q1 2026 guidance implies sequential weakness: revenue $45M–$49M with an adjusted EBITDA margin between -10% and -4%. Management noted seasonal patterns with typically negative adjusted EBITDA in the first half of the year.
Roll-to-Roll / Direct-to-Fabric Underperformance
Roll-to-roll (direct-to-fabric) business underdelivered in 2025 relative to expectations. Management expects improvement in 2H 2026 with new product introductions but acknowledges 2025 was a challenging year for this segment.
FX and Tariff Headwinds
Q4 non-GAAP operating expenses included an unfavorable $1.1M FX impact and full year included an unfavorable $2.6M FX impact. Tariffs were cited as a contributor to margin pressure and prompted targeted price increases.
Longer Sales Cycles for Net-New Apollo Customers
Management noted longer onboarding and ramp cycles for net-new screen-printer customers adopting Apollo (different workflows, training needs), which can slow near-term revenue realization despite promising customer wins and lighthouse accounts.
Conservative 2026 Revenue Growth Expectation
Company expects only low single-digit revenue growth in 2026 due to deliberate acceleration of the shift to AIC/ARR (short-term revenue timing impact), meaning near-term top-line growth is constrained while recurring revenue quality improves.
Company Guidance
Kornit guided Q1 2026 revenue of $45–49 million with an adjusted EBITDA margin of negative 10% to negative 4% (noting seasonality with margins typically negative in H1), and reiterated full‑year 2026 expectations for low single‑digit revenue growth, stronger profitability expansion and continued positive operating cash flow as AIC/ARR deployments scale. For context, the company enters 2026 with ~$24.8 million in ARR, more than 83% of revenues recurring or highly predictable, cash and marketable securities of ~$491.2 million, Q4 revenue of $58.9 million, FY‑2025 revenue of $208.2 million (+2% YoY), AIC revenue of roughly $15.0 million (up from $3.3 million), Q4 adjusted EBITDA of $5.5 million (reported margin 9.3%, 11.5% constant currency), FY adjusted EBITDA $1.5 million, FY impressions of 243 million (up 11% YoY) with Q4 impressions up a strong double‑digit, and operating cash flow of ~$10.6 million in Q4 and ~$24.4 million for the full year.Kornit Digital Financial Statement Overview
Summary
Balance sheet strength (very low leverage and ample flexibility) and improved operating cash flow offset an income statement still challenged by multi-year revenue pressure and ongoing losses; free cash flow was less consistent in 2025.Income Statement
Revenue has been in a clear downtrend from 2022–2025 (including a sharp drop in 2025), but profitability is improving from the 2022–2023 trough. Gross margin rebounded strongly in 2024–2025 (~44–45% vs. ~30% in 2023), and losses narrowed materially (net margin improved to about -6% in 2025 from roughly -29% in 2022–2023). Still, the company remains unprofitable with negative operating and EBITDA margins, keeping the income statement quality below average.34
Negative
Balance Sheet
The balance sheet is a key strength: leverage is very low (debt is only ~2–4% of equity across the period), and equity remains large relative to assets. While returns on equity are negative in recent years due to losses, the capital structure appears conservative and provides flexibility to navigate a weak revenue environment.82
Very Positive
Cash Flow
Cash generation has improved versus 2022–2023, with operating cash flow turning positive in 2024 and remaining positive in 2025. However, cash flow quality weakened in 2025 as free cash flow fell sharply versus 2024, despite a smaller net loss. Overall, the company has regained positive operating cash flow, but free cash flow is currently less consistent than desired.58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 208.20M | 203.82M | 219.79M | 271.52M | 322.01M |
| Gross Profit | 92.27M | 91.76M | 66.96M | 96.50M | 151.91M |
| EBITDA | -22.68M | -24.27M | -72.83M | -56.32M | 19.89M |
| Net Income | -13.52M | -16.80M | -64.35M | -79.06M | 15.53M |
Balance Sheet | |||||
| Total Assets | 770.51M | 787.48M | 865.58M | 957.67M | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 457.85M | 463.87M | 332.50M | 400.01M | 648.84M |
| Total Debt | 18.61M | 18.38M | 23.61M | 26.02M | 26.96M |
| Total Liabilities | 57.94M | 60.59M | 69.91M | 88.84M | 121.32M |
| Stockholders Equity | 712.57M | 726.90M | 795.67M | 868.82M | 919.55M |
Cash Flow | |||||
| Free Cash Flow | 3.17M | 33.59M | -41.69M | -117.39M | 39.04M |
| Operating Cash Flow | 24.45M | 48.73M | -34.68M | -99.35M | 53.64M |
| Investing Cash Flow | 3.13M | 31.49M | 26.21M | -407.27M | 89.75M |
| Financing Cash Flow | -27.11M | -84.81M | -56.52M | -332.00K | 342.38M |
Kornit Digital Technical Analysis
Negative
14.42
Price Trends
14.66
Negative
14.15
Positive
15.90
Negative
Market Momentum
0.03
Positive
43.33
Neutral
18.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRNT, the sentiment is Negative. The current price of 14.42 is below the 20-day moving average (MA) of 15.50, below the 50-day MA of 14.66, and below the 200-day MA of 15.90, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 18.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRNT.
Kornit Digital Risk Analysis
Kornit Digital disclosed 44 risk factors in its most recent earnings report. Kornit Digital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kornit Digital Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $645.94M | -47.93 | -1.90% | ― | 9.62% | 67.12% | |
55 Neutral | $32.05M | 15.05 | -0.73% | ― | 19.84% | 95.71% | |
54 Neutral | $51.51M | 12.35 | 8.34% | ― | -1.47% | 52.65% | |
43 Neutral | $33.51M | -3.96 | -118.04% | ― | 176.99% | -30.97% | |
35 Underperform | $29.10M | -0.91 | ― | ― | -98.20% | 93.77% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.