Kornit Digital (KRNT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $48.5 million, at the high end of guidance, with positive operating cash flow for the 10th consecutive quarter and 12% year-over-year impressions growth.

• Growth driven by both new and existing customers, with approximately 40% of system sales to new customers and 65% to traditional screen printing customers.

• Major product launches, including Atlas MATRIX and Presto MAX PLUS, are expanding addressable markets and automation capabilities, driving new orders and strong customer feedback.

• Acquisition of PrintFactory enhances software, workflow, and automation capabilities, supporting the digital manufacturing ecosystem strategy.

• Entered Q2 with momentum, improved visibility, and confidence in 2026 trajectory.

Financial highlights

• Product revenue grew to $35.1 million and services revenue to $13.5 million year-over-year; AIC revenue increased 103% year-over-year to $4.9 million.

• Non-GAAP gross margin was 41%, down from 45.2% in Q1 2025, impacted by product mix, FX, and tariffs.

• Non-GAAP operating expenses were $25.5 million, down 7% year-over-year despite FX headwinds.

• Adjusted EBITDA loss improved to $2.8 million (margin -5.8%) from $3.9 million (margin -8.4%) last year.

• Cash, deposits, and marketable securities totaled $462.2 million at quarter end; $6.3 million positive operating cash flow in Q1.

• Over $30 million in share repurchases in Q1; total repurchases since 2023 reached $200 million.

Outlook and guidance

• Q2 2026 revenue expected between $51 million and $55 million, with adjusted EBITDA margin between -5% and breakeven.

• Anticipates sequential growth in AIC revenue and ARR, with continued margin improvement in H2 2026.

• Improving visibility and confidence for the second half of 2026, with recurring revenues expected to grow.

• Ongoing positive operating cash flow and improving profitability expected as business scales through 2026.