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Kornit Digital (KRNT)
NASDAQ:KRNT
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Kornit Digital
(NASDAQ:KRNT)
Rating:44Neutral
Price Target:
$15.00
▼(-3.85% Downside)
Positive Factors
Growth Potential
Kornit Digital Ltd. is seen as a leader in digital textile printing technology, which positions the company strongly in the growing market.
Product Demand
Demand remains healthy, driven by positive market response to the new Apollo high-volume production system and uptake of the All-Inclusive Click program.
Strategic Partnerships
The company has formed strategic partnerships with leading brands, enhancing its market presence and growth potential.
Negative Factors
Competitive Pressures
Competitive pressures in the digital printing industry could pose challenges to maintaining market share.
Financial Performance
Shares declined more than 20% after Kornit reported lackluster results and management noted that several KPIs are behind schedule.
Revenue Decline
The company experienced weakness in consumables and services revenue, both declining at a double-digit rate year-over-year.
Kornit Digital (KRNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$694.42M
Dividend YieldN/A
Average Volume (3M)343.19K
Price to Earnings (P/E)―
Beta (1Y)2.36
Revenue Growth5.53%
EPS Growth75.65%
CountryUS
Employees715
SectorIndustrials
Sector Strength76
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.03
Shares Outstanding45,327,503
10 Day Avg. Volume330,815
30 Day Avg. Volume343,187
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue2.34
Enterprise Value/Gross Profit5.02
Enterprise Value/Ebitda-28.51
Forecast
1Y Price Target
$22.25Price Target Upside42.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
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 generates revenue through a combination of product sales, service contracts, and consumables. Its primary revenue streams include the sale of digital printing systems, proprietary inks, and software licenses. The company also earns recurring revenue from service agreements and maintenance contracts for its printing equipment. Additionally, Kornit has established strategic partnerships with major brands and retailers, enhancing its market presence and expanding its customer base. These collaborations often lead to joint development initiatives and increased adoption of Kornit's technology, further contributing to its overall earnings.
Kornit Digital Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -18.67%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
While Kornit Digital reported some positive developments such as year-over-year revenue growth and progress in expanding into new markets, the company also faced challenges including revenues falling below the midpoint of guidance, declines in service and consumable revenues, and negative EBITDA margins. The sentiment is mixed, with both positive achievements and notable challenges impacting the company's performance.Q2-2025 Updates
Positive Updates
Year-Over-Year Revenue Growth
Kornit Digital reported year-over-year revenue growth of 2% for Q2 2025, and a total first-half growth of approximately 5%.
Annual Recurring Revenue Increase
Annual recurring revenues increased by $4 million, reaching approximately $19 million, indicating progress in building a more predictable and resilient business model.
Expansion in Customized Design Segment
Significant capacity expansion across the installed base with notable customers like Cimpress and T-Shirt & Sons adding new systems, reinforcing their confidence in Kornit's technology.
Penetration into Screen Printing Market
Strong progress in penetrating the screen printing market with new customers adopting digital solutions, including Promos and Basic Thinking.
Strategic Development Agreement
Signed a strategic development agreement with a top sports brand to co-develop a proprietary application, highlighting the relevance of Kornit's technology for global brands.
Negative Updates
Revenues Below Midpoint of Guidance
Second-quarter revenues of $49.8 million were within the guidance range but below the midpoint.
Decline in Service and Consumable Revenues
Service and consumable revenues declined year-over-year, primarily due to fewer Atlas MAX upgrades and customers adjusting inventory approaches.
Adjusted EBITDA Margin Negative
Adjusted EBITDA margin came in at negative 2.3%, although it was within the guidance range.
Challenges with Apollo System Shipments
Apollo system shipments are tracking below targets due to longer sales cycles, particularly with new customers from the traditional screen market.
ARR Tracking Below Expectations
Annual recurring revenue is tracking below expectations, primarily due to slower-than-anticipated rollout and adoption of the AIC model.
Company Guidance
During Kornit Digital's Second Quarter 2025 Earnings Conference Call, the company provided guidance indicating a modest top-line growth in the low single digits for the second half of the year, with a plan to further expand its Annual Recurring Revenue (ARR) base, setting the stage for significant growth in 2026. The company reported second-quarter revenues of approximately $49.8 million, within their guidance range of $49 million to $55 million, with a gross margin of 46.3% and an adjusted EBITDA margin at negative 2.3%. Kornit Digital also highlighted a year-over-year revenue growth of 2% in Q2, contributing to a total first-half growth of approximately 5%. Despite some softness in service and consumable revenues, system sales and their all-inclusive click business model continue to drive growth. The company experienced a 5% growth in impressions to $222.7 million on a trailing 12-month basis, with strong double-digit growth among top customers in the DTG and roll-to-roll segments. For the third quarter, Kornit Digital expects revenues to remain within the $49 million to $55 million range, with an adjusted EBITDA margin ranging from negative 3% to positive 3%.Kornit Digital Financial Statement Overview
Summary
Kornit Digital faces significant challenges with declining revenues and persistent net losses impacting its financial health. The balance sheet remains relatively strong with low leverage and a solid equity position, providing some stability. However, inconsistent cash flow generation and operational inefficiencies present ongoing risks.Income Statement
Kornit Digital's income statement shows a decline in revenue over the past few years, with a significant drop from $322 million in 2021 to $206.8 million in TTM 2025. The company has been operating at a net loss since 2020, with a negative EBIT and EBITDA indicating operational challenges. The gross profit margin improved slightly in the TTM period to 47.2% from 45% in 2024, but this is overshadowed by the negative net profit margin of -4.2% for TTM 2025. These factors suggest a struggling business environment and operational inefficiencies.45
Neutral
Balance Sheet
Kornit Digital's balance sheet indicates a strong equity position with a high equity ratio of 91.6% in TTM 2025. The company maintains a low debt-to-equity ratio of 0.025, suggesting low leverage risk. However, total assets have been declining, and the return on equity remains negative due to continued net losses. While the company has a solid cash position, the shrinking asset base and persistent losses pose concerns about long-term financial stability.60
Neutral
Cash Flow
The cash flow statement reveals that Kornit Digital has managed to improve its cash flow from operations, with a positive operating cash flow of $50.4 million in TTM 2025. However, the free cash flow has decreased compared to 2024, reflecting higher capital expenditures. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion relative to reported losses. Despite this, the company's ability to generate free cash flow remains inconsistent, impacting its financial flexibility.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 207.64M | 203.82M | 219.79M | 271.52M | 322.01M | 193.33M |
| Gross Profit | 96.91M | 91.76M | 66.96M | 96.50M | 151.91M | 87.80M |
| EBITDA | -17.07M | -24.27M | -72.83M | -54.11M | 12.79M | -2.02M |
| Net Income | -11.27M | -16.80M | -64.35M | -79.06M | 15.53M | -4.78M |
Balance Sheet | ||||||
| Total Assets | 765.96M | 787.48M | 865.58M | 957.67M | 1.04B | 628.99M |
| Cash, Cash Equivalents and Short-Term Investments | 431.61M | 463.87M | 332.50M | 400.01M | 648.84M | 364.30M |
| Total Debt | 19.20M | 18.38M | 23.61M | 26.02M | 26.96M | 22.64M |
| Total Liabilities | 61.21M | 60.59M | 69.91M | 88.84M | 122.70M | 109.97M |
| Stockholders Equity | 704.75M | 726.90M | 795.67M | 868.82M | 919.55M | 519.02M |
Cash Flow | ||||||
| Free Cash Flow | 27.71M | 33.59M | -41.69M | -117.70M | 37.03M | 18.80M |
| Operating Cash Flow | 49.76M | 48.73M | -34.68M | -99.35M | 52.46M | 32.41M |
| Investing Cash Flow | 53.81M | 31.49M | 26.21M | -407.27M | 88.93M | -114.63M |
| Financing Cash Flow | -100.71M | -84.81M | -56.52M | -332.00K | 344.38M | 167.04M |
Kornit Digital Technical Analysis
Negative
15.60
Price Trends
18.83
Negative
19.43
Negative
23.80
Negative
Market Momentum
-1.27
Negative
37.20
Neutral
76.46
Neutral
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 15.6 is below the 20-day moving average (MA) of 16.83, below the 50-day MA of 18.83, and below the 200-day MA of 23.80, indicating a bearish trend. The MACD of -1.27 indicates Negative momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 76.46 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $341.49M | 20.06 | 20.68% | 4.06% | -4.53% | -11.25% | |
70 Neutral | $1.49B | 25.17 | 9.51% | 1.39% | -0.38% | -44.93% | |
69 Neutral | $2.46B | 43.88 | 8.37% | 0.61% | 9.64% | -24.68% | |
69 Neutral | $1.10B | 21.18 | 13.70% | 1.74% | 2.60% | 51.33% | |
64 Neutral | $275.09M | 7.93 | 11.16% | 2.66% | -2.82% | 69.68% | |
64 Neutral | $10.71B | 16.03 | 7.42% | 2.02% | 2.57% | -16.39% | |
44 Neutral | $694.42M | ― | -1.51% | ― | 5.53% | 75.65% |
* Industrials Sector Average
Performance Comparison
KRNT
Kornit Digital
15.60
-4.48
-22.31%
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42.65
4.05
10.49%
OFLX
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36.30
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PKOH
Park-Ohio Holdings
19.96
-9.86
-33.07%
SXI
Standex International
210.48
35.28
20.14%
TNC
Tennant Co
83.71
-10.93
-11.55%
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.