Kornit Digital (NASDAQ:KRNT) reported first-quarter results on Wednesday that exceeded Wall Street expectations on both revenue and earnings, although the company’s shares slipped slightly in after-hours trading following the announcement.
The stock edged down 0.44% after the results were released.
Revenue and earnings come in ahead of forecasts
Kornit posted adjusted earnings per share of -$0.01 for the quarter, ahead of analyst estimates of -$0.02 per share.
Revenue reached $48.5 million, surpassing the consensus estimate of $46.73 million and representing year-on-year growth of 4.5% from $46.5 million in the prior-year period.
The company said revenue landed at the upper end of its previously issued guidance range of $48 million to $49 million.
Recurring revenue and AIC growth accelerate
Kornit reported positive operating cash flow for the tenth consecutive quarter.
Revenue generated from its All-Inclusive Click (AIC) model increased approximately 103% year-on-year, while annual recurring revenue rose to $26.8 million from $14.5 million in the same quarter last year.
Trailing twelve-month impressions grew roughly 12% year-on-year, supported by continued industry migration from traditional screen printing toward digital production.
“The first quarter marked a strong start to the year and clear evidence that our strategy is translating into execution and measurable results,” said Ronen Samuel, chief executive officer of Kornit Digital.
“We delivered revenue at the top end of our guidance range and generated positive operating cash flow for the tenth consecutive quarter.”
EBITDA loss narrows despite lower margins
Adjusted EBITDA loss improved to $2.8 million from a loss of $3.9 million in the first quarter of 2025.
Non-GAAP gross margin came in at 41.0%, compared with 45.2% in the same period a year earlier.
Second-quarter outlook comes in above consensus
For the second quarter of 2026, Kornit expects revenue in a range of $51 million to $55 million.
The midpoint of the guidance range, at $53 million, was above analyst consensus expectations.
The company also forecast an adjusted EBITDA margin between negative 5% and breakeven.
Samuel added that customer demand for the Atlas MATRIX platform remains strong and said the company continues to see a growing order backlog supporting the expansion of digital textile production at scale.