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1. Company Snapshot

1.a. Company Description

Kornit Digital Ltd.develops, designs, and markets digital printing solutions for the fashion, apparel, and home decor segments of printed textile industry in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally.The company's solutions include digital printing systems, ink and other consumables, associated software, and value-added services.


Its products and services include direct-to-garment printing platform for smaller industrial operators to mass producers; NeoPigment ink and other consumables; QuickP designer software; and maintenance and support, consulting, and professional services.The company serves decorators, online businesses, brand owners, and contract printers.Kornit Digital Ltd.


was incorporated in 2002 and is headquartered in Rosh HaAyin, Israel.

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1.b. Last Insights on KRNT

Kornit Digital's recent performance was negatively impacted by a Q4 earnings miss, with the company reporting a quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.21 per share. This underperformance was a departure from the company's previous growth trajectory, which had been driven by its expanding customer base and increasing adoption of its digital textile printing solutions. The company's revenue growth, although still positive, was slower than expected, with a year-over-year increase of 12.1%.

1.c. Company Highlights

2. Kornit Digital's 2025 Earnings: A Year of Transition and Growth

Kornit Digital reported a strong fourth quarter and full-year 2025, with revenues of $58.9 million and $208.2 million, respectively, and adjusted EBITDA of $5.5 million for Q4. The company's EPS came in at $0.18, beating estimates of $0.14. For the full year, AIC revenue grew to $15.0 million from $3.3 million last year, driving a 2% year-over-year increase in total revenue. The company's focus on transitioning to a more recurring ARR model is evident, with approximately $25 million in ARR from the AIC program, supported by multiyear customer commitments.

Publication Date: Mar -06

📋 Highlights
  • Q4 Revenue and EBITDA Growth: Achieved $58.9M revenue and $5.5M adjusted EBITDA, both at the upper end of guidance.
  • Full-Year Revenue and Cash Flow: Generated $208.2M revenue with $24M operating cash flow, up 2% YoY despite strategic AIC model shift.
  • ARR Expansion: Built $25M ARR from AIC program, driven by 104% YoY growth in AIC revenue and 40% of 2025 system deals from net new customers.
  • Impression Growth: Delivered 11% annual impression growth, fueled by higher utilization and adoption of digital production for bulk apparel (e.g., Cedarstream, Zumiez).

Financial Performance

The company's financial performance was marked by a significant increase in AIC revenue, which grew 104% year-over-year in Q4. Impressions also grew at a strong double-digit rate for the quarter, driven by higher utilization across the installed base and increased adoption of digital production for longer runs. The company's operating cash flow was approximately $11 million in Q4, making it the ninth consecutive quarter of positive operating cash generation.

Guidance and Outlook

Kornit Digital expects low single-digit revenue growth in 2026, driven by the continued expansion of the AIC program. The company also expects stronger profitability expansion and continued positive cash flow from operations. Analysts estimate revenue growth of 7.0% next year, indicating a potential upside. With a current P/S Ratio of 3.46 and EV/EBITDA of -31.94, the market is pricing in a certain level of growth, which Kornit Digital is poised to deliver.

Business Highlights

The company's focus on penetrating the screen market is yielding results, with over 40% of system deals in 2025 coming from net new customers. Kornit Digital is also innovating in the digital space for footwear and has major meetings with leading sports brands, seeing a 2 billion impression opportunity in the footwear market. As Ronen Samuel noted, "We see a clear shift from screen production to digital, with impression growth driven by higher utilization across our installed base and an increased adoption of digital production for longer runs."

Valuation

With a P/E Ratio of -52.32 and P/B Ratio of 0.99, Kornit Digital's valuation is a mix of growth and value characteristics. The company's ROE of -1.9% and ROIC of -4.72% indicate that there is still room for improvement in terms of profitability. However, the company's focus on transitioning to a more recurring ARR model and its strong operating cash flow generation are positives.

3. NewsRoom

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Kornit Digital Ltd. (NASDAQ:KRNT) Given Consensus Recommendation of “Hold” by Brokerages

Mar -11

Source: defenseworld.net

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Kornit Digital to Participate in the 2026 Cantor Global Technology & Industrial Growth Conference

Feb -26

Source: globenewswire.com

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Kornit Digital Ltd. (NASDAQ:KRNT) Given Average Rating of “Hold” by Analysts

Feb -14

Source: defenseworld.net

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Kornit Digital Q4 Earnings Call Highlights

Feb -13

Source: defenseworld.net

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Kornit Digital Ltd. (KRNT) Q4 2025 Earnings Call Transcript

Feb -11

Source: seekingalpha.com

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Kornit Digital (KRNT) Q4 Earnings and Revenues Surpass Estimates

Feb -11

Source: zacks.com

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Kornit Digital Reports Fourth Quarter and Full Year 2025 Results

Feb -11

Source: globenewswire.com

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Kornit Digital Sets Fourth Quarter and Full Year 2025 Earnings Release Date and Webcast

Jan -28

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.38%)

6. Segments

Ink and Consumables

Expected Growth: 7%

Kornit Digital's 7% growth in Ink and Consumables is driven by increasing adoption of digital textile printing, rising demand for sustainable and eco-friendly printing solutions, and growing popularity of online shopping and e-commerce, leading to higher volumes of customized apparel and packaging. Additionally, Kornit's expanding customer base and strategic partnerships contribute to the segment's growth.

Systems

Expected Growth: 9%

Kornit Digital's 9% growth is driven by increasing adoption of digital textile printing, rising demand for sustainable and on-demand production, and expansion into new markets such as Asia and Latin America. Additionally, the company's innovative products and partnerships with industry leaders are contributing to its growth momentum.

Service - Spare Parts

Expected Growth: 6%

Kornit Digital's Spare Parts service growth is driven by increasing adoption of digital textile printing, rising demand for customized apparel, and growing need for timely maintenance and repair of Kornit's installed base of printers. Additionally, the shift towards sustainable and on-demand production, as well as the company's expanding global footprint, contribute to the 6% growth rate.

Service Contracts and Software Subscriptions

Expected Growth: 8%

Kornit Digital's 8% growth in Service Contracts and Software Subscriptions is driven by increasing adoption of digital textile printing, growing demand for sustainable and on-demand production, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, customer support, and subscription-based models contribute to the segment's growth.

7. Detailed Products

Atlas

A high-speed, industrial-grade direct-to-garment printer designed for high-volume production

Storm

A high-volume, industrial-grade direct-to-garment printer for high-production environments

Aurora

A high-speed, industrial-grade direct-to-garment printer for high-volume production

Presto

A single-step, industrial-grade direct-to-garment printer for on-demand production

NeoPigment

A sustainable, water-based pigment ink for digital textile printing

Kornit Konnect

A cloud-based software platform for monitoring, managing, and optimizing digital textile printing operations

8. Kornit Digital Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Kornit Digital Ltd. has a moderate threat of substitutes due to the presence of alternative digital printing solutions. However, the company's unique technology and high-quality products help to mitigate this threat.

Bargaining Power Of Customers

Kornit Digital Ltd.'s customers have limited bargaining power due to the company's strong brand reputation and the lack of alternative suppliers for its specialized digital printing solutions.

Bargaining Power Of Suppliers

Kornit Digital Ltd. has a moderate bargaining power of suppliers due to the presence of multiple suppliers for its raw materials and components. However, the company's strong relationships with its suppliers help to mitigate this risk.

Threat Of New Entrants

Kornit Digital Ltd. has a low threat of new entrants due to the high barriers to entry in the digital printing industry, including the need for significant investment in research and development and manufacturing capabilities.

Intensity Of Rivalry

Kornit Digital Ltd. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry. The company must continually innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.88%
Debt Cost 3.95%
Equity Weight 97.12%
Equity Cost 13.35%
WACC 13.08%
Leverage 2.97%

11. Quality Control: Kornit Digital Ltd. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Waga Energy

A-Score: 4.3/10

Value: 6.2

Growth: 3.6

Quality: 3.2

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
ITM Power

A-Score: 4.1/10

Value: 7.0

Growth: 5.7

Quality: 2.7

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Nel

A-Score: 3.2/10

Value: 8.0

Growth: 5.6

Quality: 2.8

Yield: 0.0

Momentum: 2.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Koenig & Bauer

A-Score: 2.8/10

Value: 8.0

Growth: 2.7

Quality: 2.0

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
LPKF Laser & Electronics

A-Score: 2.6/10

Value: 4.8

Growth: 2.7

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Kornit Digital

A-Score: 2.5/10

Value: 6.6

Growth: 3.2

Quality: 4.0

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.74$

Current Price

13.74$

Potential

-0.00%

Expected Cash-Flows