Kornit Digital (KRNT) Q2 2026 Earnings Report

The call was broadly positive: the company delivered a revenue beat, meaningful ARR expansion (+79% YoY), strong AIC growth (+112% YoY), sequential and year-over-year improvements in margins and four quarters of accelerating impressions growth. Cash generation remained strong ($8.5M operating cash flow; $451M liquidity), and management raised H2/full-year expectations. Offsetting items include modest absolute adjusted EBITDA ($0.3M), increased operating expenses (Konnections and FX), some margin improvement aided by a tariff refund (~$830k), and uneven demand among long-tail customers and product lines (roll-to-roll still recovering). Overall the positive execution, recurring revenue mix, cash strength and upgraded outlook outweigh the outlined challenges.

Kornit guided Q3 2026 revenue of $55–$60 million with adjusted EBITDA margin between breakeven and 3%, and said second‑half 2026 revenue should be ~15% higher than the first half—positioning the company to deliver high single‑digit revenue growth for the full year (up from the low single‑digit outlook earlier) while continuing to improve margins and generate positive operating cash flow. Management’s outlook is supported by Q2 operating metrics including revenue of $55.3M, adjusted EBITDA of $0.3M (0.6% margin), non‑GAAP gross margin of 47.4%, ARR of $33.8M (79% YoY, 26% sequential; ~$142M total contract value), All‑Inclusive Click revenue up 112% YoY (32.7% sequential), trailing‑12‑month impressions +15%, operating cash flow ≈$8.5M (11th consecutive positive quarter), cash and marketable securities ≈$451M, and $5.4M of share repurchases in the quarter (≈9.5M shares repurchased for ~$205M total, with ≈$60M remaining authorization).