Start here if you're new
what it is
Kornit sells digital textile printers, ink, software, and service so apparel and home-decor brands can print short runs without giant setup costs.
how it gets paid
Last year Kornit Digital made $204M in revenue. digital printing systems was the main engine at $102M, or 50% of sales.
what just happened
Kornit posted Q4 revenue of $58.9M and EPS of $0.18, beating the $0.12 consensus.
At a glance
B balance sheet — gets the job done, barely
15/100 earnings predictability — expect surprises
58.5x trailing p/e — you're paying up for this one
4.0% return on capital — nothing to write home about
xvary composite: 31/100 — weak
What they do
Kornit sells digital textile printers, ink, software, and service so apparel and home-decor brands can print short runs without giant setup costs.
Kornit wins by making textile printing less painful for your customer. AIC (all-inclusive clicks → pay-per-print leases → less cash paid upfront) now covers about 80% of Apollo systems, which helps top customers scale without buying machines outright. Once your workflow, ink, service, and billing sit inside one stack, switching gets expensive in both time and cash.
How they make money
$204M
annual revenue
digital printing systems
$102M
6.0%
ink and consumables
$49M
+4.0%
all-inclusive clicks
$25M
+300.0%
value-added services
$16M
+2.0%
software
$12M
+4.0%
The products that matter
digital textile printing systems
Digital Textile Printing Systems
$204M revenue · entire business
it's the full $204M revenue base. if the transition to recurring clicks works, this segment becomes steadier. if it doesn't, there is nowhere else to hide.
entire revenue base
Key numbers
$28
18-month target
That is 91% above the current $14.63 price, which tells you the stock only works if recurring revenue and margins keep improving.
18.3%
operating margin
The business still loses money on operations, so the turnaround is real only when this moves above 0%.
58.5x
trailing p/e
You are paying a rich multiple for a company with thin profits, which leaves little room for another stumble.
4.0%
return on capital
Return on capital means profit from each dollar invested, and 4.0% says the business is not earning much yet.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- net profit margin 10.8% — keeps 11 cents of every dollar in revenue
- return on equity 4% — $0.04 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in KRNT 3 years ago → it's now worth $7,120.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Kornit posted Q4 revenue of $58.9M and EPS of $0.18, beating the $0.12 consensus.
The quarter met or reached the high end of guidance, while the company kept leaning into AIC and profitability discipline. Q4 non-GAAP gross margin was 50.7%, down from 55.1% a year earlier, so the margin rebuild is still uneven.
$58.9M
revenue
$0.18
eps
50.7%
gross margin
the number that mattered
The key number was the 50% EPS beat versus the $0.12 estimate because it showed cost control is finally helping the model.
-
kornit digital faces top-line headwinds while it transforms its business.
-
the company is making efforts to shift from equipment sales to recurring revenue.the all-inclusive click (aic) model offers the same products and services, but with a higher profit margin.
-
approximately 80% of apollo systems now operate under aic.
-
the lower investment cost associated with this leasing style has helped drive existing top customers to scale operations, despite macroeconomic uncertainty.
-
deployments of max systems have been performing well.however, the aic model has failed to attract new customers to the expected amount, which remains a pain point. this, alongside customers working through elevated inventory levels for consumables, weighed heavily on third-quarter revenues.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is the all-inclusive click transition improving mix without bringing in enough new demand.
med
aic adoption can plateau before growth returns
about 80% of apollo systems now operate under aic, but the company has already said the model has not attracted new customers at the expected level. if recurring mix rises without new demand, you get accounting improvement without enough business improvement.
this risk touches the entire $204M revenue base and is the main reason a 58.5x trailing p/e looks fragile.
med
customer inventory digestion keeps delaying consumables revenue
management flagged elevated customer inventory levels for consumables as a major drag on third-quarter revenue. that matters because consumables are supposed to make the recurring model steadier.
if customers keep burning through inventory instead of reordering, the path from $204M to the $210M revenue estimate gets harder.
med
the stock already prices in cleaner execution than the business has shown
price stability is 10 / 100, total return trails the market by $6,800 on a $10,000 starting investment over three years, and institutions have been net sellers for three straight quarters. that's not a market giving management endless benefit of the doubt.
when a volatile small cap trades at nearly 49x forward earnings and 58.5x trailing earnings, even small disappointments can move the stock hard.
a failed transition would pressure all of KRNT's $204M revenue base, while the valuation leaves less room for patience than the business results suggest.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next update on aic and new-customer adds
the recurring model is the whole story now. you want to see adoption stay high and demand broaden beyond existing customers.
metric
fy2026 revenue estimate
the street sits at $210M. if that starts moving down, the stabilization narrative is weakening in real time.
risk
institutional selling streak
three straight quarters of net selling is not fatal. a fourth would tell you the big holders still do not trust the transition.
trend
consumables inventory normalization
recurring revenue only feels recurring when customers reorder. inventory digestion easing is one of the cleaner signs that demand is stabilizing.
Analyst rankings
short-term outlook
bottom 5%
momentum score 5 — the lowest rating. in human-speak, analysts think this is one of the market's weakest near-term setups.
risk profile
below average
stability score 4 means more volatility than most stocks. this is not where you go for a quiet quarter.
chart momentum
bottom 5%
technical score 5 says price action has been weak. the chart is not arguing with the skeptics.
earnings predictability
15 / 100
earnings predictability this low means the numbers can swing around on you. translation: brace for surprises.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 68 buyers vs. 75 sellers in 3q2025. total institutional holdings: 43.6M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$11
$44
$15
current price
$28
target midpoint · +91% from current · 3-5yr high: $30 (+105% · 19% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive