Digital fashion firm Kornit's Q2 revenue misses expectations

Overview

• Kornit Q2 revenue of $49.8 mln missed analyst expectations, per LSEG data

• GAAP net loss of $7.5 mln missed estimates, non-GAAP net income at $1.2 mln

• Company focuses on recurring revenue model and AIC contract adoption

Outlook

• Kornit expects Q3 2025 revenue between $49 mln and $55 mln

• Company anticipates Q3 adjusted EBITDA margin between -3% and 3%

• Kornit focuses on scaling Apollo and AIC adoption

• Company aims to maintain adjusted EBITDA profitability and cash flow

Result Drivers

• RECURRING REVENUE - Kornit attributes Q2 performance to ongoing transformation towards a recurring revenue model, per CEO Ronen Samuel

• SCREEN-PRINTING CUSTOMERS - Positive traction from screen-printing customers embracing digital for various run lengths, according to CEO

• AIC ADOPTION - Continued adoption of AIC contracts with annual recurring revenue reaching $18.9 mln, particularly from screen-printing customers

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Kornit Digital Ltd is $31.00, about 38.1% above its August 5 closing price of $19.18

• The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 61 three months ago

Press Release: ID:nGNX5QKxM5