Total Revenues of
Trailing Twelve-Month Impressions Up Approximately 12% Year Over Year, Driven by Continued Screen-to-Digital Shift
AIC Revenues Increased Approximately 103% Year Over Year
Delivered Positive Operating Cash Flow for
Strong Customer Response and Growing Atlas MATRIX Backlog Reinforce Expansion of Digital Production at Scale
Enters Second Quarter with Strengthening Momentum, Improved Visibility and Continued AIC Transition
ROSH-HA`AYIN,
“The first quarter marked a strong start to the year and clear evidence that our strategy is translating into execution and measurable results,” said
First Quarter 2026 Results of Operations
- Total revenue for the first quarter of 2026 increased to
$48.5 million compared with$46.5 million in the prior year period.
- AIC revenues increased approximately 103% year over year.
- ARR at the end of the first quarter was approximately
$26.8 million compared with$14.5 million at the end of the prior year period.
- GAAP gross profit margin for the first quarter of 2026 was 37.9% compared with 42.6% in the prior year period. On a non-GAAP basis, gross profit margin was 41.0% compared with 45.2% in the prior year period.
- GAAP operating expenses for the first quarter of 2026 were
$31.9 million , in line with$31.9 million in the prior year period. On a non-GAAP basis, operating expenses were$25.5 million compared with$27.4 million in the prior year period.
- GAAP net loss for the first quarter of 2026 was
$8.2 million , or ($0.19 ) per diluted share, compared with net loss of$5.1 million , or ($0.11 ) per diluted share, in the prior year period.
- Non-GAAP net loss for the first quarter of 2026 was
$0.4 million , or ($0.01 ) per diluted share, compared with non-GAAP net income of$0.6 million , or$0.01 per diluted share, in the prior year period.
- Adjusted EBITDA loss for the first quarter of 2026 improved to
$2.8 million compared with adjusted EBITDA loss of$3.9 million for the first quarter of 2025. Adjusted EBITDA margin for the first quarter of 2026 was negative 5.8% compared with negative 8.4% in the prior year period.
Second Quarter 2026 Guidance
For the second quarter of 2026, the Company currently expects revenues to be in the range of
Earnings Conference Call Information
The Company will host a conference call today,
A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-877-407-0792 or 1-201-689-8263. The toll-free Israeli number is 1 809 406 247.
To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671 and enter confirmation code 13759148. The telephone replay will be available approximately three hours after the completion of the live call until
About
Forward Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other
Non-GAAP Discussion Disclosure
The Company presents certain non-GAAP financial measures in this press release and in the accompanying conference call to discuss the Company’s quarterly results. These non-GAAP financial measures reflect adjustments to corresponding GAAP financial measures in order to exclude the impact of the following: share-based compensation expenses; amortization of intangible assets; restructuring expenses; foreign exchange differences associated with ASC 842; and non-cash deferred tax income.
The Company defines “Adjusted EBITDA” as non-GAAP operating income (loss), which reflects the adjustments described in the preceding paragraph to the Company’s GAAP net income (loss), as further adjusted to exclude depreciation expense.
The purpose of the foregoing non-GAAP financial measures is to convey the Company’s performance exclusive of non-cash charges and other items that are considered by management to be outside of the Company’s core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage, and evaluate the Company’s business and make operating decisions, and the Company believes that they are useful to investors as a consistent and comparable measure of the ongoing performance of the Company’s business. The Company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
The reconciliation tables included below present a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures for our results for the first quarter of 2026. We have not provided, however, in this press release guidance for our expected GAAP net loss margin in the second quarter of 2026, or a reconciliation of our guidance for Adjusted EBITDA margin in the second quarter of 2026 to the most directly comparable GAAP financial measure for that quarter (i.e., GAAP net loss margin), as the information needed to provide that GAAP guidance and that reconciliation is not available to us without unreasonable effort or with reasonable certainty from a quantitative perspective. We expect that the foregoing missing information related to our outlook on a GAAP basis for the second quarter of 2026 is likely to yield significant changes relative to our non-GAAP outlook in respect of the subject financial measure.
Investor Contact
Chief Capital Markets Officer
Andrew.Backman@kornit.com
AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ( | ||||||
| ( | 2026 | 2025 | ||||
| (Unaudited) | (Audited) | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 30,664 | $ | 35,476 | ||
| Short-term bank deposit | 358,796 | 368,446 | ||||
| Marketable securities | 49,084 | 53,926 | ||||
| Trade receivables, net | 48,906 | 60,796 | ||||
| Inventory | 53,992 | 47,211 | ||||
| Other accounts receivable and prepaid expenses | 31,821 | 29,661 | ||||
| Total current assets | 573,263 | 595,516 | ||||
| LONG-TERM ASSETS: | ||||||
| Marketable securities | 23,614 | 33,332 | ||||
| Severance pay fund | 388 | 385 | ||||
| Property, plant and equipment, net | 69,045 | 69,492 | ||||
| Operating lease right-of-use assets | 16,903 | 17,174 | ||||
| Intangible assets, net | 10,310 | 9,429 | ||||
| 29,164 | 29,164 | |||||
| Other long-term assets | 18,475 | 16,018 | ||||
| Total long-term assets | 167,899 | 174,994 | ||||
| Total assets | 741,162 | 770,510 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Trade payables | 8,476 | 6,059 | ||||
| Employees and payroll accruals | 12,785 | 13,214 | ||||
| Deferred revenues and advances from customers | 1,527 | 1,529 | ||||
| Operating lease liabilities | 3,997 | 3,886 | ||||
| Other payables and accrued expenses | 20,856 | 17,305 | ||||
| Total current liabilities | 47,641 | 41,993 | ||||
| LONG-TERM LIABILITIES: | ||||||
| Accrued severance pay | 1,261 | 1,155 | ||||
| Operating lease liabilities | 14,230 | 14,727 | ||||
| Other long-term liabilities | 1,565 | 62 | ||||
| Total long-term liabilities | 17,056 | 15,944 | ||||
| SHAREHOLDERS' EQUITY | 676,465 | 712,573 | ||||
| Total liabilities and shareholders' equity | $ | 741,162 | $ | 770,510 | ||
AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ( | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Revenues | ||||||||
| Products | $ | 35,080 | $ | 33,865 | ||||
| Services | 13,460 | 12,592 | ||||||
| Total revenues | 48,540 | 46,457 | ||||||
| Cost of revenues | ||||||||
| Products | 16,820 | 15,613 | ||||||
| Services | 13,331 | 11,044 | ||||||
| Total cost of revenues | 30,151 | 26,657 | ||||||
| Gross profit | 18,389 | 19,800 | ||||||
| Operating expenses: | ||||||||
| Research and development, net | 9,627 | 9,278 | ||||||
| Sales and marketing | 13,050 | 14,949 | ||||||
| General and administrative | 9,214 | 7,644 | ||||||
| Total operating expenses | 31,891 | 31,871 | ||||||
| Operating loss | (13,502 | ) | (12,071 | ) | ||||
| Financial income, net | 5,556 | 7,383 | ||||||
| Loss before taxes on income | (7,946 | ) | (4,688 | ) | ||||
| Taxes on income | 275 | 371 | ||||||
| Net loss | $ | (8,221 | ) | $ | (5,059 | ) | ||
| Basic net loss per share | $ | (0.19 | ) | $ | (0.11 | ) | ||
| Weighted average number of shares used in computing basic net loss per share | 44,233,446 | 45,801,003 | ||||||
| Diluted loss per share | $ | (0.19 | ) | $ | (0.11 | ) | ||
| Weighted average number of shares used in computing diluted net loss per share | 44,233,446 | 45,801,003 | ||||||
AND ITS SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS ( | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Revenues | $ | 48,540 | $ | 46,457 | ||||
| GAAP cost of revenues | $ | 30,151 | $ | 26,657 | ||||
| Cost of product recorded for share-based compensation (1) | (441 | ) | (519 | ) | ||||
| Cost of service recorded for share-based compensation (1) | (354 | ) | (395 | ) | ||||
| Intangible assets amortization on cost of product (2) | (148 | ) | (148 | ) | ||||
| Intangible assets amortization on cost of service (2) | (160 | ) | (160 | ) | ||||
| Restructuring expenses (3) | (168 | ) | - | |||||
| Tariff (6) | (228 | ) | - | |||||
| Non-GAAP cost of revenues | $ | 28,652 | $ | 25,435 | ||||
| GAAP gross profit | $ | 18,389 | $ | 19,800 | ||||
| Gross profit adjustments | 1,499 | 1,222 | ||||||
| Non-GAAP gross profit | $ | 19,888 | $ | 21,022 | ||||
| GAAP operating expenses | $ | 31,891 | $ | 31,871 | ||||
| Share-based compensation (1) | (3,927 | ) | (4,406 | ) | ||||
| Intangible assets amortization (2) | (74 | ) | (74 | ) | ||||
| Restructuring expenses (3) | (143 | ) | - | |||||
| M&A-related costs (4) | (235 | ) | - | |||||
| Class action - legal fees (5) | (2,029 | ) | - | |||||
| Non-GAAP operating expenses | $ | 25,483 | $ | 27,391 | ||||
| GAAP Financial income, net | $ | 5,556 | $ | 7,383 | ||||
| Foreign exchange income associated with ASC 842 | (133 | ) | (43 | ) | ||||
| Non-GAAP Financial income , net | $ | 5,423 | $ | 7,340 | ||||
| GAAP Taxes on income | $ | 275 | $ | 371 | ||||
| Non-GAAP Taxes on income | $ | 275 | $ | 371 | ||||
| GAAP Net loss | $ | (8,221 | ) | $ | (5,059 | ) | ||
| Share-based compensation (1) | 4,722 | 5,320 | ||||||
| Intangible assets amortization (2) | 382 | 382 | ||||||
| Restructuring expenses (3) | 311 | - | ||||||
| Foreign exchange income associated with ASC 842 | (133 | ) | (43 | ) | ||||
| M&A-related costs (4) | 235 | - | ||||||
| Class action - legal fees (5) | 2,029 | - | ||||||
| Tariff (6) | 228 | - | ||||||
| Non-GAAP net income (loss) | $ | (447 | ) | $ | 600 | |||
| GAAP diluted loss per share | $ | (0.19 | ) | $ | (0.11 | ) | ||
| Non-GAAP diluted income (loss) per share | $ | (0.01 | ) | $ | 0.01 | |||
| Weighted average number of shares | ||||||||
| Shares used in computing GAAP diluted net income (loss) per share | 44,233,446 | 45,801,003 | ||||||
| Shares used in computing Non-GAAP diluted net income per share | 44,233,446 | 46,355,596 | ||||||
| (1) Share-based compensation | ||||||||
| Cost of product revenues | $ | 441 | $ | 519 | ||||
| Cost of service revenues | 354 | 395 | ||||||
| Research and development | 945 | 1,202 | ||||||
| Sales and marketing | 1,508 | 1,537 | ||||||
| General and administrative | 1,474 | 1,667 | ||||||
| $ | 4,722 | $ | 5,320 | |||||
| (2) Intangible assets amortization | ||||||||
| Cost of product revenues | $ | 148 | $ | 148 | ||||
| Cost of service revenues | 160 | 160 | ||||||
| Sales and marketing | 74 | 74 | ||||||
| $ | 382 | $ | 382 | |||||
| (3) Restructuring expenses | ||||||||
| Cost of service revenues | $ | 168 | $ | - | ||||
| Research and development | 87 | - | ||||||
| Sales and marketing | 44 | - | ||||||
| General and administrative | 12 | - | ||||||
| $ | 311 | $ | - | |||||
| (4) M&A-related costs | ||||||||
| General and administrative | $ | 235 | $ | - | ||||
| (5) Class action - legal fees | ||||||||
| General and administrative | $ | 2,029 | $ | - | ||||
| (6) Tariff | ||||||||
| Cost of product revenues | $ | 228 | $ | - | ||||
AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS ( | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (8,221 | ) | $ | (5,059 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 3,172 | 2,846 | ||||||
| Share-based compensation | 4,722 | 5,320 | ||||||
| Amortization of premium and accretion of discount on marketable securities, net | (131 | ) | (304 | ) | ||||
| Realized loss on sale and redemption of marketable securities | (2 | ) | (22 | ) | ||||
| Change in operating assets and liabilities: | ||||||||
| Trade receivables, net | 11,890 | 4,048 | ||||||
| Other accounts receivables and prepaid expenses | (2,413 | ) | (1,365 | ) | ||||
| Inventory | (6,750 | ) | 2,320 | |||||
| Operating leases right-of-use assets and liabilities, net | (115 | ) | (160 | ) | ||||
| Other long term assets | (2,457 | ) | (313 | ) | ||||
| Trade payables | 2,820 | (5,310 | ) | |||||
| Employees and payroll accruals | 234 | 2,092 | ||||||
| Deferred revenues and advances from customers | (2 | ) | (546 | ) | ||||
| Other payables and accrued expenses | 1,949 | 2,230 | ||||||
| Accrued severance pay, net | 103 | (29 | ) | |||||
| Other long - term liabilities | 1,503 | 16 | ||||||
| Net cash provided by operating activities | 6,302 | 5,764 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of property, plant and equipment and capitalized software development costs | (4,041 | ) | (3,771 | ) | ||||
| Proceeds from (investment in) short-term bank deposits, net | 9,650 | (21,000 | ) | |||||
| Proceeds from sales and redemption of marketable securities | 3,250 | 2,800 | ||||||
| Proceeds from maturities of marketable securities | 11,170 | 65,320 | ||||||
| Investment in marketable securities | - | (25,815 | ) | |||||
| Net cash provided by investing activities | 20,029 | 17,534 | ||||||
| Cash flows from financing activities: | ||||||||
| Exercise of employee stock options | 29 | 529 | ||||||
| Payments related to shares withheld for taxes | (663 | ) | (977 | ) | ||||
| Repurchase of ordinary shares | (30,509 | ) | (1,824 | ) | ||||
| Net cash used in financing activities | (31,143 | ) | (2,272 | ) | ||||
| Increase (decrease) in cash and cash equivalents | (4,812 | ) | 21,026 | |||||
| Cash and cash equivalents at the beginning of the period | 35,476 | 35,003 | ||||||
| Cash and cash equivalents at the end of the period | $ | 30,664 | $ | 56,029 | ||||
| Non-cash investing and financing activities: | ||||||||
| Purchase of property and equipment on credit | 403 | 2,435 | ||||||
| Inventory transferred to be used as property and equipment | 46 | 405 | ||||||
| Property, plant and equipment transferred to be used as inventory | 77 | - | ||||||
| Lease liabilities arising from obtaining right-of-use assets | 639 | 522 | ||||||
AND ITS SUBSIDIARIES RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA ( | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| GAAP Revenues | $ | 48,540 | $ | 46,457 | ||||
| GAAP loss | (8,221 | ) | (5,059 | ) | ||||
| Taxes on income | 275 | 371 | ||||||
| Financial income | (5,556 | ) | (7,383 | ) | ||||
| Share-based compensation | 4,722 | 5,320 | ||||||
| Intangible assets amortization | 382 | 382 | ||||||
| Restructuring expenses | 311 | - | ||||||
| M&A-related costs | 235 | - | ||||||
| Class action - legal fees | 2,029 | - | ||||||
| Tariff | 228 | - | ||||||
| Non-GAAP Operating loss | (5,595 | ) | (6,369 | ) | ||||
| Depreciation | 2,790 | 2,464 | ||||||
| Adjusted EBITDA | $ | (2,805 | ) | $ | (3,905 | ) | ||
