Kornit Digital Ltd.

Second quarter revenue was $55.3 million, up 11.2% year over year and above the top of guidance. Services revenue increased 34.7% and product revenue grew 4.3%. Non-GAAP gross margin was 47.4%, up 110 basis points year over year, and adjusted EBITDA was $0.3 million versus a loss of $1.2 million in Q2 2025, with margin at 0.6%. Operating cash flow was approximately $8.5 million, marking the 11th consecutive quarter of positive operating cash flow. Cash, bank deposits and marketable securities totaled about $451 million. For Q3 2026, Kornit expects revenue of $55 million to $60 million and adjusted EBITDA margin between breakeven and 3%. Management also said second-half 2026 revenue should be approximately 15% higher than first half, implying high single-digit full-year revenue growth.

Ronen Samuel framed the quarter as further evidence that Kornit’s strategy is working, emphasizing a shift toward a more recurring, visible, and resilient business model. He said the company is becoming a manufacturing platform rather than just a printer vendor, with Apollo, Atlas MATRIX, Presto MAX PLUS, software, AI, and automation all contributing to a broader digital production stack. His tone was confident and strategic, repeatedly pointing to structural adoption of digital manufacturing, especially among traditional screen printers moving from analog to digital.

Assaf Zipori focused on the financial quality of growth. He highlighted the 79% year-over-year ARR growth to $33.8 million, the implied $142 million of total contract value, the 47.4% non-GAAP gross margin, and the $0.3 million adjusted EBITDA profit versus a loss last year. He also noted $451 million of cash, bank deposits and marketable securities, $8.5 million of operating cash flow, and $5.4 million of share repurchases in the quarter, with about $60 million remaining under authorization. He said the outlook reflects confidence in demand, pipeline strength, and continued improvement in profitability and operating cash flow.

Analysts pressed on what is driving the acceleration in demand and whether the growth is coming mainly from traditional screen printers or Kornit’s existing customer base. Management said the shift is being driven mainly by new customers in the screen market, though some existing customers are expanding into bulk apparel; Ronen also said the trend is global, with strong adoption in the U.S., Europe, Japan, India, Sri Lanka and other regions. Another focus was the mix of CapEx versus AIC system sales: Ronen said units sold are higher than expected, roughly half of system deliveries are CapEx and half are AIC, and CapEx was strong in Q2. Analysts also asked about roll-to-roll and strategic customer upgrades; management said roll-to-roll was slow in 2025 but is gaining momentum, and that upgrades for a global strategic customer started in Q1 and should continue into next year.