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Kornit Digital Ltd. (KRNT)
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Kornit Digital (KRNT) AI Stock Analysis

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KRNT

Kornit Digital

(NASDAQ:KRNT)

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Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
$15.00
▲(9.25% Upside)
Kornit Digital's overall score is primarily impacted by its financial performance and technical analysis. Strong revenue growth is overshadowed by profitability challenges and bearish technical indicators. Valuation concerns due to a negative P/E ratio further weigh down the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and demand for Kornit's products, supporting long-term business expansion.
Strategic Development Agreement
This agreement enhances Kornit's market presence and demonstrates the value of its technology to major global brands, potentially leading to new revenue streams.
Annual Recurring Revenue Increase
Growing recurring revenues contribute to a more predictable and stable financial outlook, reducing reliance on one-time sales.
Negative Factors
Profitability Challenges
Negative EBITDA margins indicate ongoing profitability issues, which could hinder investment in growth and innovation.
Decline in Service and Consumable Revenues
A decline in these revenues suggests potential challenges in maintaining customer engagement and recurring income.
ARR Tracking Below Expectations
Underperformance in ARR growth may impact long-term revenue stability and indicate slower adoption of new business models.

Kornit Digital (KRNT) vs. SPDR S&P 500 ETF (SPY)

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: |
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 shows strong revenue growth but struggles with profitability and cash flow sustainability. The balance sheet is stable with low leverage, but negative ROE highlights inefficiencies. Operational efficiency improvements are needed.
Income Statement
45
Neutral
Kornit Digital's income statement shows a mixed performance. The company has experienced a significant revenue growth rate of 39.6% in the TTM period, indicating strong top-line growth. However, profitability remains a concern with negative net profit and EBIT margins, reflecting ongoing operational challenges. The gross profit margin is relatively healthy at 46.67%, suggesting efficient production processes, but the negative net profit margin of -5.43% highlights the need for cost control and improved operational efficiency.
Balance Sheet
60
Neutral
The balance sheet of Kornit Digital is relatively stable with a low debt-to-equity ratio of 0.027, indicating conservative leverage and financial stability. However, the return on equity is negative at -1.53%, reflecting the company's struggle to generate returns for shareholders. The equity ratio is strong, suggesting a solid capital structure, but the negative ROE indicates potential inefficiencies in asset utilization.
Cash Flow
50
Neutral
Kornit Digital's cash flow statement presents a mixed picture. The operating cash flow to net income ratio is positive at 1.10, indicating that the company is generating cash from its operations. However, the free cash flow growth rate is negative at -15.48%, suggesting challenges in maintaining cash flow growth. The free cash flow to net income ratio of 0.56 indicates that a significant portion of net income is being converted into free cash flow, but the decline in free cash flow growth is a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue207.64M203.82M219.79M271.52M322.01M193.33M
Gross Profit96.91M91.76M66.96M96.50M151.91M87.80M
EBITDA-17.07M-24.27M-72.83M-54.11M12.79M-2.02M
Net Income-11.27M-16.80M-64.35M-79.06M15.53M-4.78M
Balance Sheet
Total Assets765.96M787.48M865.58M957.67M1.04B628.99M
Cash, Cash Equivalents and Short-Term Investments431.61M463.87M332.50M400.01M648.84M364.30M
Total Debt19.20M18.38M23.61M26.02M26.96M22.64M
Total Liabilities61.21M60.59M69.91M88.84M122.70M109.97M
Stockholders Equity704.75M726.90M795.67M868.82M919.55M519.02M
Cash Flow
Free Cash Flow27.71M33.59M-41.69M-117.70M37.03M18.80M
Operating Cash Flow49.76M48.73M-34.68M-99.35M52.46M32.41M
Investing Cash Flow53.81M31.49M26.21M-407.27M88.93M-114.63M
Financing Cash Flow-100.71M-84.81M-56.52M-332.00K344.38M167.04M

Kornit Digital Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.73
Price Trends
50DMA
15.91
Negative
100DMA
18.42
Negative
200DMA
21.61
Negative
Market Momentum
MACD
-0.58
Positive
RSI
36.65
Neutral
STOCH
10.90
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 13.73 is below the 20-day moving average (MA) of 14.45, below the 50-day MA of 15.91, and below the 200-day MA of 21.61, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 36.65 is Neutral, neither overbought nor oversold. The STOCH value of 10.90 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$60.53M-12.88-103.61%123.75%66.85%
51
Neutral
$22.57M-61.65-1.45%34.35%93.12%
49
Neutral
$47.93M-21.25-3.73%-18.38%-128.11%
44
Neutral
$622.35M-1.51%5.53%75.65%
35
Underperform
$21.50M-0.07-98.68%91.24%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KRNT
Kornit Digital
13.73
-12.11
-46.87%
BWEN
Broadwind Energy
2.12
>-0.01
-0.47%
CVV
CVD Equipment
3.28
0.00
0.00%
BURU
Nuburu
0.22
-0.23
-51.11%
SHMD
SCHMID Group NV
2.90
-0.41
-12.39%
LASE
Laser Photonics Corp.
4.75
-4.43
-48.26%

Kornit Digital Corporate Events

Kornit Digital Announces Results of 2025 Annual Shareholder Meeting
Sep 17, 2025

On September 15, 2025, Kornit Digital Ltd. held its annual general meeting of shareholders at its offices in Israel. During the meeting, shareholders approved the re-election of Dov Ofer and Ofer Ben-Zur as Class I directors for a three-year term, and the re-appointment of Kost Forer Gabbay & Kasierer as the company’s independent registered public accounting firm for the year ending December 31, 2025. These approvals reflect the company’s ongoing commitment to maintaining strong leadership and financial oversight, which are crucial for its strategic growth and market positioning.

Kornit Digital Announces 2025 Annual General Meeting
Aug 7, 2025

Kornit Digital Ltd. has announced its 2025 annual general meeting of shareholders, scheduled for September 15, 2025, at its offices in Rosh Ha’Ayin, Israel. Shareholders of record as of August 11, 2025, are entitled to vote on the re-election of directors and the re-appointment of the company’s independent auditors. The meeting will also include discussions on the company’s financial statements for the year ended December 31, 2024. This meeting is crucial for stakeholders as it involves decisions on leadership continuity and financial oversight, impacting Kornit’s strategic direction and governance.

Kornit Digital Announces Second Quarter 2025 Financial Results
Aug 6, 2025

Kornit Digital reported its second-quarter 2025 results on August 6, 2025, with revenues of $49.8 million, aligning with previous guidance. Despite a challenging market environment, the company saw positive adoption of its Apollo and AIC systems, particularly among screen-printing customers. Kornit continues to focus on scaling its business towards recurring revenue and long-term growth, maintaining adjusted EBITDA profitability and operating cash flow generation.

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.Date of analysis: Aug 19, 2025