Kornit Digital (NASDAQ:KRNT) Announces Earnings Results, Beats Estimates By $0.05 EPS

Kornit Digital (NASDAQ:KRNT) issued its quarterly earnings results on Wednesday. The industrial products company reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.05, FiscalAI reports. Kornit Digital had a negative return on equity of 1.15% and a negative net margin of 7.93%.The firm had revenue of $55.32 million during the quarter, compared to the consensus estimate of $52.80 million. During the same quarter in the prior year, the business posted $0.03 earnings per share. Kornit Digital’s revenue for the quarter was up 11.1% on a year-over-year basis.

Here are the key takeaways from Kornit Digital’s conference call:

• Q2 exceeded guidance: Revenue rose 11.2% year over year to $55.3 million, while adjusted EBITDA was positive at $0.3 million and operating cash flow reached $8.5 million, marking the 11th consecutive positive quarter.
• Recurring revenue momentum strengthened: Annual recurring revenue increased 79% year over year to $33.8 million, driven by 112% growth in the all-inclusive click model; management said roughly 80% of revenue is now recurring or highly recurring.
• Digital adoption among traditional screen printers is accelerating: About 60% of systems sold in Q2 and the first half went to screen printers, supporting Kornit’s expansion into the larger bulk-apparel market and the broader shift from analog to digital production.
• Management raised its outlook for the year: Kornit expects third-quarter revenue of $55 million to $60 million and adjusted EBITDA margins of breakeven to 3%, while projecting second-half revenue approximately 15% above the first half and high-single-digit growth for full-year 2026.
• Profitability still has room to improve: Non-GAAP gross margin was 47.4%, helped by an approximately $830,000 net tariff benefit including a $2 million refund, while operating expenses rose year over year due partly to the Konnections conference and $1.9 million of foreign-exchange headwinds.

Kornit Digital Stock Up 3.5%

KRNT stock traded up $0.62 during trading on Wednesday, hitting $18.20. 255,590 shares of the company’s stock traded hands, compared to its average volume of 304,988. The stock has a fifty day moving average price of $15.86 and a two-hundred day moving average price of $15.39. Kornit Digital has a 52 week low of $11.93 and a 52 week high of $19.78. The stock has a market capitalization of $782.05 million, a price-to-earnings ratio of -46.67 and a beta of 1.72.

Hedge Funds Weigh In On Kornit Digital

A number of large investors have recently bought and sold shares of KRNT. CIBC Private Wealth Group LLC grew its holdings in shares of Kornit Digital by 1,359.8% during the third quarter. CIBC Private Wealth Group LLC now owns 1,927 shares of the industrial products company’s stock valued at $26,000 after purchasing an additional 1,795 shares during the last quarter. Johnson Financial Group Inc. acquired a new position in Kornit Digital during the 3rd quarter valued at approximately $27,000. Raymond James Financial Inc. acquired a new position in Kornit Digital during the 2nd quarter valued at approximately $31,000. State of Tennessee Department of Treasury bought a new position in Kornit Digital during the 2nd quarter worth $35,000. Finally, Quadrature Capital Ltd bought a new position in Kornit Digital during the 4th quarter worth $144,000. Institutional investors own 92.76% of the company’s stock.

Wall Street Analyst Weigh In

KRNT has been the topic of several recent analyst reports. Needham & Company LLC upped their price target on shares of Kornit Digital from $20.00 to $22.00 and gave the company a “buy” rating in a report on Thursday, May 14th. Zacks Research downgraded shares of Kornit Digital from a “hold” rating to a “strong sell” rating in a research report on Thursday, July 30th. Finally, Morgan Stanley upped their target price on shares of Kornit Digital from $17.00 to $18.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 23rd. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $21.00.

About Kornit Digital

Kornit Digital Ltd. (NASDAQ: KRNT) is a global technology company specializing in digital textile printing solutions. Headquartered in Rosh Ha’Ayin, Israel, Kornit develops and manufactures an integrated ecosystem of industrial inkjet printers, proprietary NeoPigment inks and pretreatment systems. Its product portfolio addresses a range of applications including direct-to-garment, direct-to-fabric, digital embellishment and hybrid manufacturing, enabling businesses to produce custom apparel, sportswear, fashion and home textiles on demand.

The company’s flagship offerings include the Avalanche and Atlas series for high-volume production, as well as the Storm and Helix lines designed for mid-to-large scale operations.