Kornit Digital Ltd.: 1Q26 Earnings Quick Take - Execution Consistency Improving

Research evidence excerpt

Kornit Digital Ltd.: 1Q26 Earnings Quick Take - Execution Consistency Improving

UpdateMforward estimates and price target are under review following the quarter. Below,

we share 3 key observations following the quarter:

• The TAM expansion opportunity is real. The Atlas MATRIX - which was first

announced at Kornit Konnections last month - addresses one of the biggest

historical limitations of digital textile printing: high-quality production on

polyester and blended fabrics at scale, opening the door to new markets

such as sportswear and performance apparel, compression wear and other

technical textile applications that were previously difficult to penetrate

digitally. Importantly, mgmt cited strong demand across 1) existing Atlas

MAX PLUS and Atlas MAX POLY customers who are looking to upgrade, 2)

existing customers who are already placing additional orders after successful

initial deployments, and 3) net new customers such as screen printers who

were previously "on the fence" of digital production. In fact, ~40% of system

sales in 1Q came from net new customers, with the majority coming from

traditional screen printers. While mgmt didn't size the backlog, they

highlighted a "meaningful" backlog of new orders and upgrades, improving

visibility into 2Q and 2H26. The Presto MAX PLUS (announced last month)

represents another important TAM expansion opportunity, broadening

Kornit's addressable market into categories such as footwear, camouflage/

military apparel, performance sports apparel, home décor and other

technical textiles.

• AIC model continues to gain traction, improving revenue visibility and

predictability. In the March quarter, annualized recurring revenue (ARR)

from Kornit's AIC model reached ~$27M (+85% Y/Y, +8% Q/Q). Looking