Q2 2026 Kornit Digital Ltd Earnings Call Transcript
Key Points
- Revenue of $55.3 million exceeded the high end of guidance, with 11.2% year-over-year growth.
- Annual recurring revenue (ARR) surged 79% year-over-year to $33.8 million, with total contract value of $142 million providing strong future visibility.
- All-inclusive click (AIC) model revenue grew 112% year-over-year, driving higher system utilization and customer engagement.
- Approximately 60% of systems sales in Q2 and H1 2026 were to traditional screen printers, indicating strong momentum in the analog-to-digital transition.
- Adjusted EBITDA turned positive at $0.3 million, improving 290 basis points year-over-year, and operating cash flow remained positive for the 11th consecutive quarter.
- Overall apparel market growth remains sluggish, with mixed regional performance and declines in the long-tail customer segment.
- Non-GAAP operating expenses increased $2.1 million year-over-year, partly due to foreign exchange headwinds of $1.9 million.
- Product revenue growth was modest at 4.3%, reflecting slower outright system sales compared to the recurring model shift.
- The roll-to-roll business is still recovering from a slow 2025, with contributions expected only in H2 2026.
- Guidance for Q3 2026 revenue ($55-60 million) implies a potential sequential decline from Q2, and adjusted EBITDA margin remains low at 0-3%.
Greetings, and welcome to Kornit Digital's second-quarter 2026 earnings conference call. As a reminder, this call is being recorded.
I would now like to turn the conference over to Andy Backman, Chief Capital Markets Officer to Kornit Digital. Mr. Backman, please go ahead.
Thank you, operator. Good day, everyone, and welcome to Kornit Digital's second-quarter 2026 earnings conference call.
With me today are Ronen Samuel, Kornit's Chief Executive Officer; and Assaf Zipori, our Chief Financial Officer. For today's call, Ronen will share his overall commentary on the second quarter, followed by Assaf, who will review our results and provide guidance for our third quarter, before we open up the call for Q&A.
Before we begin, I would like to remind you that forward-looking statements within the meaning of the US securities laws will be made on this call. These statements involve known and unknown risks and uncertainties. I encourage you to review the company's filings
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