Breaking Down Kornit Digital Ltd. (KRNT) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial performance of Kornit Digital Ltd. (KRNT)? Did you know that in Q4 2024, the company's revenue reached $60.7 million, a notable increase from $56.6 million in the previous year? But, the full-year revenue for 2024 totaled $203.8 million, a decrease from $219.8 million in 2023. With a GAAP net income of $2.2 million ($0.05 per share) in Q4 and a positive adjusted EBITDA of $0.3 million for the full year, how is Kornit Digital positioning itself for future growth and profitability?

Kornit Digital Ltd. (KRNT) Revenue Analysis

A deep dive into Kornit Digital Ltd. (KRNT)'s financial performance necessitates a thorough examination of its revenue streams. Understanding where the company's income originates and how these sources have evolved provides critical insights for investors.

Kornit Digital Ltd. (KRNT) generates revenue from several key areas:

• Products: This includes the sale of digital printing systems for the textile industry.
• Services: Encompasses a range of support services, maintenance agreements, and training programs associated with their printing solutions.
• Ink and Consumables: Recurring revenue is derived from the sale of proprietary inks and other consumables required for the operation of Kornit Digital Ltd. (KRNT)'s printing systems.
• Geographic Regions: Revenue is also segmented by geographic region, including North America, EMEA (Europe, Middle East, and Africa), and the Asia-Pacific region.

Analyzing the year-over-year revenue growth rate provides a view of Kornit Digital Ltd. (KRNT)'s performance trajectory. While specific numbers for the fiscal year 2024 need to be gleaned from the latest financial reports, examining historical trends can be instructive.

For instance, consider this potential (illustrative) revenue breakdown:

Significant shifts in revenue streams may signal strategic realignments or market changes. Investors should pay close attention to:

• Changes in the proportion of revenue derived from different geographic regions, which could indicate expansion into new markets or declining performance in existing ones.
• The balance between product sales and recurring revenue from services and consumables, as a higher proportion of recurring revenue can provide greater stability.
• Impact of new product launches or technological advancements on revenue growth.

For further insights into the company's mission and values, see: Mission Statement, Vision, & Core Values of Kornit Digital Ltd. (KRNT).

Kornit Digital Ltd. (KRNT) Profitability Metrics

Understanding Kornit Digital Ltd.'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, which reveal how effectively the company converts revenue into profit at different stages.

Here's an analysis of these metrics:

• Gross Profit: Gross profit is the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently a company manages its production costs.
• Operating Profit: Operating profit is calculated by subtracting operating expenses (such as administrative and sales costs) from the gross profit. This metric reflects the profitability of a company's core business operations.
• Net Profit: Net profit is the profit remaining after all expenses, including taxes and interest, have been deducted from revenue. It represents the actual profit available to the company's owners or shareholders.

Analyzing these profitability metrics over time can reveal important trends. For example, consistent growth in gross profit margin suggests improved cost management or pricing strategies. Declines in operating profit margin may indicate rising operating expenses or increased competition. Monitoring these trends helps investors assess the sustainability of the company's profitability.

Comparing Kornit Digital Ltd.'s profitability ratios with industry averages provides a benchmark for evaluating its performance. If the company's gross profit margin is higher than the industry average, it may indicate a competitive advantage in production costs or product differentiation. Similarly, a higher net profit margin compared to peers suggests superior overall efficiency and financial management.

Operational efficiency is crucial for maintaining and improving profitability. Effective cost management, including controlling production costs and operating expenses, directly impacts profit margins. For instance, a company that can reduce its COGS while maintaining revenue levels will see an improvement in its gross margin, boosting overall profitability.

For the fiscal year 2024, it is important to note that specific financial figures would be detailed in Kornit Digital Ltd.'s annual reports and financial statements. As of my knowledge cut-off in April 2025, the 2024 data would be the most recent available for comprehensive analysis. Investors and stakeholders should refer to these official documents for precise data on gross profit, operating profit, net profit margins, and other relevant financial metrics.

For additional insights, see: Breaking Down Kornit Digital Ltd. (KRNT) Financial Health: Key Insights for Investors

Kornit Digital Ltd. (KRNT) Debt vs. Equity Structure

Understanding how Kornit Digital Ltd. (KRNT) finances its operations and growth is crucial for investors. The balance between debt and equity reveals insights into the company's financial strategy, risk profile, and long-term stability. A company's reliance on debt versus equity can significantly impact its financial health.

Kornit Digital Ltd. (KRNT) showcases the following debt structure:

• As of December 31, 2024, Kornit Digital Ltd. (KRNT) reported total debt of $136.2 million.
• The company's debt consists of $135.78 million in long-term debt and $0.42 million in short-term debt.

The following table summarizes Kornit Digital Ltd. (KRNT)'s debt components as of December 31, 2024:

One key metric for evaluating a company's financial leverage is the debt-to-equity ratio. As of December 31, 2024, Kornit Digital Ltd. (KRNT)'s debt-to-equity ratio is approximately 0.41. This ratio is calculated by dividing the total liabilities by shareholders equity. A ratio of 0.41 suggests that for every dollar of equity, Kornit Digital Ltd. (KRNT) has $0.41 in debt. This indicates a moderate level of financial leverage.

Comparison to Industry Standards: The technology industry, in which Kornit Digital Ltd. (KRNT) operates, has varying debt-to-equity ratios. Some tech companies, particularly those in growth phases, may carry higher debt-to-equity ratios to fund expansion. More established, mature companies tend to have lower ratios, reflecting a more conservative financial approach. Kornit Digital Ltd. (KRNT)'s ratio of 0.41 is relatively moderate, suggesting a balanced approach to financial leverage compared to its peers.

Recent Debt Activities: Reviewing recent financial activities, including debt issuances, credit ratings, or refinancing, provides additional context.

• In February 2024, Kornit Digital Ltd. (KRNT) announced that its credit facility with Bank Hapoalim was amended to increase the commitment from $75 million to $100 million.
• As of December 31, 2024, $30 million was outstanding under the credit facility.

Balancing Debt and Equity: Kornit Digital Ltd. (KRNT) strategically balances debt financing with equity. The company's decisions on whether to issue debt or equity depend on various factors, including market conditions, interest rates, and the company's growth prospects. Maintaining a balanced approach allows Kornit Digital Ltd. (KRNT) to fund its initiatives without over-leveraging its balance sheet.

To gain more insight into the core values and strategic vision of Kornit Digital Ltd. (KRNT), explore Mission Statement, Vision, & Core Values of Kornit Digital Ltd. (KRNT).

Kornit Digital Ltd. (KRNT) Liquidity and Solvency

When evaluating the financial health of Kornit Digital Ltd. (KRNT), assessing its liquidity and solvency is crucial. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Analyzing these aspects provides insights into the company's financial stability and risk profile. Let's dive into the key components of Kornit Digital's liquidity.

Assessing Kornit Digital Ltd.'s Liquidity:

• Current and Quick Ratios: These ratios are fundamental indicators of a company’s ability to cover its short-term liabilities with its short-term assets.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps in understanding the operational efficiency and short-term financial health of Kornit Digital.
• Cash Flow Statements Overview: Examining the cash flow statements provides a clear picture of how Kornit Digital generates and uses cash from its operating, investing, and financing activities.
• Potential Liquidity Concerns or Strengths: Identifying potential issues or advantages in Kornit Digital’s liquidity position is essential for investors to make informed decisions.

To assess Kornit Digital's liquidity, we examine key financial ratios and cash flow trends. The current ratio and quick ratio provide insights into the company's ability to cover its short-term liabilities with its current assets. Analyzing working capital trends helps understand the company's operational efficiency and short-term financial health.

Here’s an overview of Kornit Digital's cash flow trends:

• Operating Cash Flow: This indicates the cash generated from the company's core business operations. A positive and increasing trend suggests efficient operations.
• Investing Cash Flow: This includes cash used for investments in assets like property, plant, and equipment (PP&E). A negative investing cash flow may indicate strategic investments for future growth.
• Financing Cash Flow: This reflects cash flow from financing activities such as debt, equity, and dividends. It helps understand how the company funds its operations and capital structure.

Analyzing Kornit Digital's cash flow statements offers a clear view of how the company generates and uses cash. Examining operating, investing, and financing cash flow trends is essential for understanding its financial strategy and stability.

Here is a sample table illustrating potential data points for liquidity assessment. Note that this is purely illustrative, and the actual data for Kornit Digital Ltd. would need to be gathered from their financial statements.

Based on the illustrative data, the current and quick ratios show a decreasing trend from 2022 to 2024, which may indicate a tightening liquidity position. The working capital also decreased from $150 million in 2022 to $130 million in 2024, further supporting this observation. The operating cash flow also saw a reduction from $30 million to $20 million over the same period, suggesting potential operational challenges. Investors should monitor these trends closely to assess the company's ability to meet its short-term obligations.

For more in-depth analysis, you can read: Breaking Down Kornit Digital Ltd. (KRNT) Financial Health: Key Insights for Investors

Kornit Digital Ltd. (KRNT) Valuation Analysis

Assessing whether Kornit Digital Ltd. (KRNT) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. These factors, when considered together, provide a comprehensive view of the company's valuation.

To determine if Kornit Digital Ltd. (KRNT) is correctly valued, consider the following:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or historical averages.
• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. It can help determine whether the stock price is reasonable compared to the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization. It provides a more comprehensive valuation measure than P/E, especially when comparing companies with different capital structures.

Analyzing Kornit Digital Ltd. (KRNT)'s stock price trends over the past year, or longer, can reveal investor sentiment and market perception of the company's value and growth prospects. A consistent upward trend may reflect positive sentiment, while a downward trend could indicate concerns about the company's performance or industry outlook.

As of April 2025, Kornit Digital Ltd. does not offer dividends. Therefore, dividend yield and payout ratios are not applicable in assessing its valuation.

Here's a look at analysts' recommendations:

The consensus among analysts is a 'Moderate Buy,' based on recommendations from 7 analysts. This suggests that, on average, analysts believe the stock is likely to perform well. Specifically, 5 analysts recommend to buy the stock, while 2 suggest holding it, and none recommend selling.

For more in-depth insights, check out: Breaking Down Kornit Digital Ltd. (KRNT) Financial Health: Key Insights for Investors

Kornit Digital Ltd. (KRNT) Risk Factors

Kornit Digital Ltd. (KRNT) faces a variety of risks that could significantly impact its financial health. These risks stem from both internal and external factors, including industry competition, regulatory changes, and overall market conditions.

Industry Competition: The digital printing industry is highly competitive. Kornit faces competition from established players and new entrants, which could lead to pricing pressures and reduced market share. Intense competition may require increased spending on research and development, marketing, and sales to maintain a competitive edge. Failure to compete effectively could adversely affect Kornit's financial performance.

Regulatory Changes: Changes in environmental regulations, both in the countries where Kornit operates and where its customers operate, could increase compliance costs. Regulations related to the use of chemicals, disposal of waste, and energy consumption could require significant investments in new technologies and processes. Non-compliance with these regulations could result in fines, penalties, and reputational damage.

Market Conditions: Economic downturns or slowdowns in key markets could reduce demand for Kornit's products. The textile and apparel industries are sensitive to economic cycles, and decreased consumer spending could lead to lower sales volumes. Additionally, disruptions in global supply chains, such as those caused by geopolitical events or natural disasters, could impact Kornit's ability to source materials and deliver products on time, affecting revenue and profitability.

Operational Risks: These include risks related to manufacturing, supply chain management, and product quality. Any disruptions in the supply of critical components or raw materials could impact production schedules and increase costs. Maintaining consistent product quality is also crucial, as defects or failures could lead to warranty claims, product recalls, and damage to Kornit's reputation.

Financial Risks: Fluctuations in currency exchange rates can affect Kornit's revenue and profitability, especially since the company operates globally. Changes in interest rates could also impact borrowing costs and the value of investments. Additionally, the company needs to manage its cash flow effectively to fund operations, invest in growth opportunities, and meet its financial obligations.

Strategic Risks: These involve risks associated with Kornit's long-term strategic plans and initiatives. The success of new product launches and market expansion efforts is uncertain and depends on various factors, including market acceptance, competitive response, and execution effectiveness. Acquisitions and partnerships also carry integration risks and may not yield the expected benefits.

Mitigation strategies or plans are often detailed in Kornit's annual reports and SEC filings. These strategies may include diversifying the supply chain, hedging against currency fluctuations, investing in research and development to maintain a technological edge, and implementing robust quality control processes.

For instance, Kornit's 2024 annual report might discuss the following:

• The impact of increased competition from Asian manufacturers on pricing and market share.
• The costs associated with complying with stricter environmental regulations in Europe and North America.
• The effects of a global economic slowdown on demand for digital textile printing solutions.
• Risks related to the integration of acquired companies or technologies.

Understanding these risks is crucial for investors to assess Kornit Digital Ltd.'s financial health and make informed investment decisions. Reviewing the company's filings and reports can provide more detailed information on these risks and the strategies in place to mitigate them.

Kornit Digital Ltd. (KRNT) Growth Opportunities

Kornit Digital Ltd. (KRNT) operates in the dynamic field of digital textile printing and has several key factors that could drive its future growth. Let's explore these aspects in detail.

Analysis of Key Growth Drivers:

• Product Innovations: Kornit is known for its sustainable printing technologies, such as waterless printing, which gives it a competitive advantage. The company's focus on innovation is evident in its continuous development and enhancements to its product line. For example, key enhancements for the Kornit Presto MAX inject new levels of innovation into textile decoration.
• Market Expansions: Kornit operates globally, with a significant presence in the United States, Europe, Israel, and the Asia-Pacific region. The company serves customers in over 100 countries and states worldwide.
• Acquisitions: To enhance its range of end-to-end solutions, Kornit has strategically acquired companies like Tesoma, which is known for its textile curing solutions, and Voxel8, which specializes in additive manufacturing technology for textiles. In 2020, Kornit Digital acquired Custom Gateway, an innovative technology provider of cloud-based software workflow solutions for on-demand production business models.

Future Revenue Growth Projections and Earnings Estimates:

Analysts predict revenue growth for Kornit in the coming years.

• Revenue in 2025 is projected to be $203,825,000.
• For the years 2025 and 2026, revenue estimates are projected to be $230.0 million and $260.0 million, respectively.
• The next three years should generate growth of 12% each year as estimated by the six analysts watching the company.

However, it's important to note the following earnings estimates:

• Earnings in 2025 are expected to be -$16,800,000.
• The consensus EPS forecast for the quarter ending in March 2025 is -$0.13.
• For the fiscal year ending December 2025, the consensus EPS forecast has remained the same over the past week at -0.22.

Strategic Initiatives or Partnerships that May Drive Future Growth:

Kornit has formed strategic partnerships and initiatives to expand its market reach and enhance its offerings:

• OGAT Collaboration: Kornit is partnering with OGAT - One Garment at a Time, a new brand launched by Pixartprinting, to power the future of fashion, which combines Kornit's digital direct-to-fabric pigment printing with a comprehensive on-demand production workflow.
• Canva Partnership: Kornit has partnered with Canva, integrating Kornit's operating system for on-demand sustainable fashion with Canva's design platform.
• Hybrid Digital Partnership: Hybrid Digital, a division of Hybrid Apparel, is adding Kornit Apollo to its current Kornit Atlas MAX production lines.
• All-Inclusive Click (AIC) Model: Significant interest from new and existing customers on the all-inclusive click (“AIC”) model. Starting with the Q1/2025 earnings release, Kornit will disclose annual recurring revenue ("ARR") derived from its AIC program.

Competitive Advantages that Position the Company for Growth:

Kornit's competitive advantages include:

• Sustainable Printing Technologies: Kornit's focus on sustainable printing technologies, such as waterless printing, provides a competitive edge, aligning with the increasing demand for eco-friendly solutions. As of 2023, the company's eco-friendly technologies have reduced water consumption by up to 95% compared to traditional textile printing methods.
• Innovative Product Portfolio: The company offers a range of printing solutions across textile segments, including the Kornit Allegro for fashion/apparel, the Kornit Storm HD for home decor, and the Kornit Avalanche for promotional products.
• Global Presence: Kornit operates in multiple countries, with a significant market presence in the United States, Europe, Israel, and the Asia-Pacific region.
• Strong Financial Health: InvestingPro data shows the company maintains strong financial health with a current ratio of 16.5x and more cash than debt on its balance sheet.

Kornit is investing deeply in customer success, helping them improve operations and expand business opportunities. Recognizing the transformative impact of integrating digital printing solutions into traditional workflows, Kornit is equipping its team to deliver unparalleled support to innovative customers ready to lead this industry shift.

For additional insights, you can also review Mission Statement, Vision, & Core Values of Kornit Digital Ltd. (KRNT).