Kornit Digital (KRNT) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $55.3 million, up 11% year-over-year and exceeding guidance, driven by strong customer activity and expanding installed base.

• Annual recurring revenue (ARR) grew 79% year-over-year to $33.8 million, with AIC model revenue up 112% year-over-year and total contract value at approximately $142 million.

• 40% of system sales were to new customers, and 60% to traditional screen printers in Q2 and H1 2026, highlighting the shift from analog to digital.

• Recurring or highly recurring revenues now represent approximately 80% of total revenues, enhancing predictability and resilience.

• Positive operating cash flow was achieved for the eleventh consecutive quarter.

Financial highlights

• Q2 2026 revenues were $55.3 million, up from $49.8 million in Q2 2025, with services revenue up 34.7% and product revenue up 4.3%.

• Non-GAAP gross margin improved to 47.4% from 46.3% year-over-year, aided by a $2 million tariff refund.

• Adjusted EBITDA was $0.3 million (0.6% margin), improving 290 basis points year-over-year.

• Non-GAAP net income was $1.7 million ($0.04 per diluted share), up from $1.2 million ($0.03 per share) year-over-year.

• Operating cash flow was $8.5 million; cash, deposits, and securities totaled $451 million at quarter end.

Outlook and guidance

• Q3 2026 revenue expected between $55 million and $60 million, with adjusted EBITDA margin projected between breakeven and 3%.

• Second half 2026 revenue forecasted to be 15% higher than the first half, supporting high single-digit full-year growth.

• Profitability and positive operating cash flow expected to continue, supported by a robust pipeline and new product launches.