Kornit Digital (NASDAQ:KRNT) Posts Earnings Results, Beats Expectations By $0.05 EPS

Kornit Digital (NASDAQ:KRNT) issued its quarterly earnings data on Wednesday. The industrial products company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $55.32 million during the quarter, compared to the consensus estimate of $52.80 million. During the same period in the previous year, the firm posted $0.03 earnings per share. The business’s revenue 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 Performance

Shares of NASDAQ KRNT traded up $0.27 during trading on Wednesday, hitting $17.85. The company had a trading volume of 189,092 shares, compared to its average volume of 304,716. Kornit Digital has a 52 week low of $11.93 and a 52 week high of $19.78. The business’s 50-day moving average is $15.86 and its 200 day moving average is $15.39. The company has a market cap of $767.01 million, a P/E ratio of -45.77 and a beta of 1.72.

Wall Street Analyst Weigh In

KRNT has been the subject of a number of research analyst reports. Morgan Stanley upped their price target on shares of Kornit Digital from $17.00 to $18.00 and gave the stock an “equal weight” rating in a research note on Tuesday, June 23rd. Zacks Research downgraded Kornit Digital from a “hold” rating to a “strong sell” rating in a research report on Thursday, July 30th. Finally, Needham & Company LLC boosted their price target on shares of Kornit Digital from $20.00 to $22.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. Two 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 company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $21.00.

Hedge Funds Weigh In On Kornit Digital

A number of hedge funds have recently modified their holdings of the stock. CIBC Private Wealth Group LLC raised its position 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 worth $26,000 after purchasing an additional 1,795 shares during the period. Johnson Financial Group Inc. acquired a new position in shares of Kornit Digital in the 3rd quarter valued at $27,000. Raymond James Financial Inc. purchased a new position in Kornit Digital in the 2nd quarter worth about $31,000. State of Tennessee Department of Treasury purchased a new position in Kornit Digital in the 2nd quarter worth about $35,000. Finally, Quadrature Capital Ltd acquired a new stake in Kornit Digital during the 4th quarter worth about $144,000. 92.76% of the stock is currently owned by institutional investors and hedge funds.

Kornit Digital Company Profile

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.