This article first appeared on GuruFocus .
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Revenue:$48.5 million, at the high end of guidance.
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Adjusted EBITDA Loss:$2.8 million.
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Operating Cash Flow:$6.3 million, positive for the 10th consecutive quarter.
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Annual Recurring Revenue (ARR):Approximately $27 million at the end of Q1.
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Non-GAAP Gross Margin:41%, down from 45.2% in Q1 2025.
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Non-GAAP Operating Expenses:$25.5 million, down 7% year-over-year.
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Adjusted EBITDA Margin:Negative 5.8%, improved by approximately 260 basis points year-over-year.
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Cash Balance:Approximately $462.2 million, including bank deposits and marketable securities.
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Share Repurchase:Over $30 million repurchased in Q1, totaling approximately $200 million since 2023.
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Q2 2026 Revenue Guidance:Between $51 million and $55 million.
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Q2 2026 Adjusted EBITDA Margin Guidance:Between -5% and breakeven.
Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Kornit Digital Ltd ( NASDAQ:KRNT ) reported Q1 2026 revenues of $48.5 million, at the high end of their guidance.
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The company achieved positive operating cash flow for the 10th consecutive quarter.
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Approximately 40% of system sales in Q1 came from new customers, indicating strong market penetration.
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Kornit Digital Ltd ( NASDAQ:KRNT ) showcased its new Atlas MATRIX platform, receiving positive feedback and building a meaningful backlog of orders.
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The acquisition of PrintFactory enhances Kornit Digital Ltd ( NASDAQ:KRNT )'s software, workflow, and production automation capabilities.
Negative Points
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Kornit Digital Ltd ( NASDAQ:KRNT ) reported an adjusted EBITDA loss of $2.8 million for Q1 2026.
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Non-GAAP gross margins decreased to 41% from 45.2% in Q1 2025, impacted by FX movements and tariff-related costs.
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The strengthening of the shekel is creating pressure on the company's cost structure.
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Legal costs related to a prior class action lawsuit impacted financial performance, though largely covered by insurance.
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Despite strong revenue growth, the company continues to face challenges in maintaining profitability, with an adjusted EBITDA margin of negative 5.8%.
Q & A Highlights
Q: Can you discuss the momentum coming out of Konnections and the setup for the second quarter and the rest of the year? A: Ronen Samuel, CEO, highlighted that the industry is moving towards on-demand production, which was evident at Konnections. The company has shifted its strategy to target high production in the screen market and new segments like footwear. Q1 results showed growth in both products and services, with a strong pipeline for upgrades to the MATRIX platform. The AIC model is growing significantly, and the company is managing costs despite currency pressures. The acquisition of PrintFactory and the introduction of new technologies like MATRIX and Apollo are expected to drive further growth.
Q: What revenue do you expect from upgrades or new system sales of the MATRIX and Presto MAX PLUS in 2026 and 2027? A: Ronen Samuel, CEO, indicated that the MATRIX platform will generate revenue from both upgrades of existing systems and new system sales. The company expects significant impression growth and increased revenue per impression, especially for polyester printing. The Presto MAX PLUS opens new markets like footwear and camouflage, with strong interest from both existing and new customers.
Q: What feedback did you receive from customers at Konnections, and what was the impact on order bookings? A: Ronen Samuel, CEO, stated that Konnections was a strategic event to position Kornit at the center of the industry's shift to on-demand manufacturing. The event attracted close to 600 participants, including brands, retailers, and solution providers. The company received strong feedback and orders on the spot, with a robust pipeline for H2 and beyond, particularly from new customers.
Q: How is the AIC model performing, and what is the mix between AIC and traditional CapEx methods? A: Ronen Samuel, CEO, explained that the AIC model is seeing high adoption, especially in the screen market, with over 90% of new customers opting for it. Existing customers in customized design may prefer CapEx, but newcomers are leaning towards AIC. The AIC model offers better predictability of recurring revenue and gross margins, as customers on AIC tend to print more impressions.
Q: What is the average selling cycle for new customers, and how does it impact system sales? A: Ronen Samuel, CEO, noted that the market's maturity and the AIC model have shortened the sales cycle. Deals can close in one to two months, especially for existing customers. The sales cycle varies by market segment, with screen market deals taking longer than customized design. Overall, the sales cycle is becoming shorter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
