Overview

• Israel's digital textile firm Q4 revenue beat analyst expectations despite a slight decline yr/yr

• Adjusted EBITDA for Q4 decreased compared to the prior year

• Company ended 2025 with $25 mln in ARR from AIC program

Outlook

• Kornit expects Q1 2026 revenue between $45 mln and $49 mln

• Company anticipates Q1 2026 adjusted EBITDA margin between negative 10% and negative 4%

• Kornit plans to unveil innovations to expand market and accelerate digital adoption in 2026

Result Drivers

• AIC PROGRAM - Kornit Digital highlighted the success of its All-Inclusive Click $(AIC)$ program, contributing $25 mln in ARR, reflecting increased customer adoption

• PEAK SEASON SUCCESS - Successful peak season drove full-year impressions growth of 11%, indicating higher utilization of digital production solutions

• DIGITAL ADOPTION - Co focused on accelerating digital adoption in mass apparel production, replacing traditional screen printing with on-demand digital solutions

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", 2 "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 $19.00, about 33.4% above its February 10 closing price of $14.24

• The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 48 three months ago

Press Release: ID:nGNX8nFRYJ

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)