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.

• Strong growth in recurring revenues, with AIC revenues up 103% year-over-year and ARR at $27 million at quarter end.

• Approximately 40% of system sales were to new customers, and 65% targeted traditional screen printing customers.

• Major product launches, including Atlas MATRIX and Presto MAX PLUS, expanded addressable markets and automation capabilities, generating strong customer feedback and order pipeline.

• Acquisition of PrintFactory enhances software, workflow, and automation capabilities, supporting long-term digital infrastructure strategy.

Financial highlights

• Product revenue grew to $35.1 million and services revenue to $13.5 million, with AIC revenue increasing 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; operating cash flow was $6.3 million.

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

Outlook and guidance

• Q2 2026 revenue guidance: $51–$55 million; adjusted EBITDA margin expected between -5% and breakeven.

• Expect continued sequential growth in AIC revenue and ARR, with improving profitability and ongoing positive operating cash flow through 2026.

• Backlog and pipeline provide improved visibility and confidence for the second half of the year.