Kornit Digital stock barely budged after earnings, up about 1% to US$17.85, which suggests investors saw a routine quarter. The headline numbers tell a sharper story. Q2 revenue reached US$55.3m and adjusted EBITDA turned modestly positive. More importantly for a digital printing business that lives on recurring usage, annual recurring revenue climbed to US$33.8m.

The result is a stock priced for a premium growth story and a business still posting quarterly losses, but now showing recurring revenue and cash generation moving in the right direction. The rest of the numbers fill in that tension.

Is Kornit Digital’s premium P/S multiple pointing to genuine growth potential, or setting up a valuation air pocket for shareholders? See how the current share price lines up against cash flow and peer benchmarks in our valuation analysis for Kornit Digital

Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): US$55.3m vs. US$49.8m (up about 11%)
• Net Loss (Q2 2026 vs. Q2 2025): US$11.2m loss vs. US$7.5m loss (loss widened)
• Basic EPS (Q2 2026 vs. Q2 2025): US$0.26 loss per share vs. US$0.17 loss per share (loss per share increased)
• Annual Recurring Revenue, ARR (Q2 2026 vs. Q2 2025): US$33.8m vs. about US$18.9m (up about 79%)

Prefer clean visuals over scrolling through blocks of earnings tables and commentary? View Kornit Digital’s full financial picture, with a clear focus on its valuation, in our company report for Kornit Digital.

Kornit Digital bull case hinges on recurring flywheel

Bulls argue Kornit Digital is turning into a recurring revenue platform where usage, not box sales, does the heavy lifting. Q2 gives that claim some concrete support. ARR reached US$33.8m, up US$7m in a single quarter and 79% higher year on year, which directly addresses earlier worries about a slow ARR ramp. All Inclusive Click contracts grew 112% and now sit behind roughly 80% of revenue that is recurring or highly recurring. Services revenue grew much faster than product revenue, which fits the story of deeper engagement with the installed base. Kornit also reported its 11th straight quarter of positive operating cash flow and a small positive adjusted EBITDA margin. Those milestones show the usage model is starting to fund itself, even while the company keeps investing in AIC, software and automation.

Bear case focuses on profit gap and execution risk

The bear view is that a premium growth narrative still rests on uneven adoption, volatile earnings and dependence on a few big customers. Q2 does not dismiss those concerns. Kornit is still loss making on a net basis, with operating expenses rising and helped this quarter by a one time tariff refund. Management called out FX as a US$1.9m headwind to operating costs, which highlights ongoing sensitivity to external factors. Revenue is guided to grow at a high single digit rate for 2026, not at a level that would quickly resolve questions on operating leverage. Kornit also acknowledged that apparel demand is mixed and that a global strategic customer remains important, without quantifying the exposure. That keeps the risk of lumpier system and consumables orders firmly on the table.

Compare Kornit Digital’s recurring revenue momentum with the market’s muted share price move to see whether analysts think this earnings progress justifies the current valuation. See the consensus price target analysis for Kornit Digital to check how Wall Street’s targets stack up against the latest numbers.

Stay Ahead With Kornit Digital Insights

Kornit Digital now has a mix of recurring revenue growth and ongoing losses that can move sentiment quickly, so it helps to track the stock closely. Register for free with Simply Wall St and add Kornit Digital to your Watchlist to watch how the share price compares with fair value and wait for a setup that fits your plan. Once you own it, use the Portfolio Command Center to keep your holdings organised and surface only the updates that really matter. Round that out with the Community to see how other investors are thinking about the same data, so you can spot potential catalysts and risks early and stay a step ahead of the market.

Seeking Alternatives Beyond Kornit Digital?

Fresh ideas move fast and early momentum can be gone before the crowd reacts. Scan new stock sets while the data still matters and potential breakouts stay under the radar. Act now.

• Spot cash rich companies that still trade like they are being ignored, and review the curated 51 high quality undervalued stocks before prices catch up and the easy entry points vanish.
• Ride long term demand for critical materials by checking the hand picked 28 best rare earth metal stocks while these suppliers remain under the radar for now and before momentum starts flying.
• Target resilient cash generators with room to keep paying out by scanning the focused 11 dividend fortresses while yields stay elevated and before income hunters crowd in.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.