KRNT Kornit Digital Ltd

 

UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

 

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2024

 

Commission File Number 001-36903

 

KORNIT DIGITAL LTD.

(Translation of Registrant’s name into English)

 

12 Ha’Amal Street

Park Afek

Rosh Ha’Ayin 4824096 Israel

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒ Form 40-F ☐

 

 

 

CONTENTS

 

Results of Operations and Financial Condition— Quarter and Six Months Ended June 30, 2024

 

On August 7, 2024, Kornit Digital Ltd. (“Kornit”) issued a press release entitled “Kornit Digital Reports Second Quarter 2024 Results,” in which Kornit reported its results of operations for the quarter and six months ended June 30, 2024. A copy of that press release is furnished as Exhibit 99.1 hereto.

 

Kornit is holding a conference call on August 7, 2024 to discuss its quarterly and six-months results for the quarter and six months ended June 30, 2024 and, in connection with that call, is making available to its investors a slide presentation to provide additional information regarding its business and its financial results. That slide presentation is attached as Exhibit 99.2 to this Report of Foreign Private Issuer on Form 6-K (this “Form 6-K”) and is incorporated herein by reference.

 

Exhibits

 

Exhibit No.		Description
99.1		Press release, dated May 8, 2024, titled “Kornit Digital Reports First Quarter 2024 Results”
99.2		Slide presentation for conference call of Kornit held on May 8 2024 discussing Kornit’s quarterly financial results for the first quarter of 2024

 

Incorporation by Reference

 

The U.S. GAAP financial information contained in the (i) consolidated balance sheets, (ii) consolidated statements of operations and (iii) consolidated statements of cash flows included in the press release attached as Exhibit 99.1 to this Report of Foreign Private Issuer on Form 6-K is hereby incorporated by reference into Kornit’s Registration Statements on Form S-8 (File No.’s 333-203970, 333-214015, 333-217039, 333-223794, 333-230567, 333-237346, 333-254749, and 333-263975).

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	KORNIT DIGITAL LTD.
Date: August 7, 2024	By:	/s/ Lauri Hanover
	Name:	Lauri Hanover
	Title:	Chief Financial Officer

 

 

2

Exhibit 99.1

 

Investor Contact:

Jared Maymon

Global Head of Investor Relations & Strategic Finance

Jared.Maymon@Kornit.com

 

 

Kornit Digital Reports Second Quarter 2024 Results

 

●

Second quarter revenues of $48.6 million, in line with previous guidance

 

●

Second quarter GAAP net loss of $4.9 million; non-GAAP net income of $1.1 million

 

●	Generated positive cash flow from operations for the second quarter of 2024

●

Both impressions and consumables grew year-over-year during the second quarter

 

●

Interest in our pilot of the all-inclusive click (“AIC”) program and our Apollo system remains strong, with multiple orders added to our backlog in second quarter

 

Rosh-Ha’Ayin, Israel – August 7, 2024 – Kornit Digital Ltd. (“Kornit” or the “Company”) (Nasdaq: KRNT), a worldwide market leader in sustainable, on-demand, digital fashion^X and textile production technologies, today reported results for the second quarter ended June 30, 2024.

 

“We are witnessing a pivotal shift to on-demand production in the fashion industry, where consumers are demanding both increased variety and faster delivery.” said Ronen Samuel, Kornit’s Chief Executive Officer. He added, “While the positive impact of these trends on our systems sales remains muted, we again saw growth in impressions and consumables. This supports our view that our customers continue to digest available capacity.”

 

Mr. Samuel continued, “In the second quarter, we also received several additional Apollo orders, including four on our AIC model. Given the strong initial feedback and traction we have seen with our AIC model, we made the decision to begin piloting the model on the Atlas MAX system for screen replacement customers.” He concluded, “We look forward to updating the investor community on our long-term business plans and capital allocation strategy at our investor event planned on September 10th.”

 

Second Quarter 2024 Results of Operations

 

●

Total revenue for the second quarter of 2024 was $48.6 million compared with $56.2 million in the prior year period, due primarily to lower systems revenues.

 

●

GAAP gross profit margin for the second quarter of 2024 was 45.8% compared with 33.3% in the prior year period. On a non-GAAP basis, gross profit margin was 48.6% compared with 36.1% in the prior year period.

 

●

GAAP operating expenses for the second quarter of 2024 were $33.0 million compared with $39.6 million in the prior year period. On a non-GAAP basis, operating expenses decreased by 17.9% to $28.0 million compared with the prior year period.

 

 

●

GAAP net loss for the second quarter of 2024 was $4.9 million, or ($0.10) per basic share, compared with net loss of $14.3 million, or ($0.29) per basic share, for the second quarter of 2023.

 

●

Non-GAAP net income for the second quarter of 2024 was $1.1 million, or $0.02 per diluted share, compared with non-GAAP net loss of $7.4 million, or ($0.15) per basic share, for the second quarter of 2023.

 

●

Adjusted EBITDA loss for the second quarter of 2024 was $1.6 million compared with adjusted EBITDA loss of $10.7 million for the second quarter of 2023. Adjusted EBITDA margin for the second quarter of 2024 was -3.4% compared with -19.1% for the second quarter of 2023.

 

Third Quarter 2024 Guidance

 

For the third quarter of 2024, the Company expects revenues to be in the range of $48 million to $52 million and adjusted EBITDA margin between 1% to 6%.

 

Second Quarter Earnings Conference Call Information

 

The Company will host a conference call today at 8:30 a.m. ET, or 3:30 p.m. Israel time, to discuss the results, followed by a question-and-answer session with the investor community.

 

A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-800-717-1738 or 1-646-307-1865. The toll-free Israeli number is 972 3 384 8161. The conference confirmation code is 71703.

 

To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671 (international) and enter confirmation code 1171703. The telephonic replay will be available approximately three hours after the completion of the live call until 11:59 pm ET on August 21, 2024. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website.

 

About Kornit Digital

 

Kornit Digital (NASDAQ: KRNT) is a worldwide market leader in sustainable, on-demand, digital fashion^x and textile production technologies. The Company is writing the operating system for fashion with end-to-end solutions including digital printing systems, inks, consumables, and an entire global ecosystem that manages workflows and fulfillment. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit Digital serves customers in more than 100 countries and states worldwide. To learn more about how Kornit Digital is boldly transforming the world of fashion and textiles, visit www.kornit.com/.

 

Forward Looking Statements

 

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as “will,” “expects,” “anticipates,” “continue,” “believes,” “should,” “intended,” “guidance,” “preliminary,” “future,” “planned,” or other words. These forward-looking statements include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events, or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: the duration and severity of adverse macro-economic headwinds that were caused by inflationary pressures and higher interest rates, which have impacted, and may continue to impact, in an adverse manner, the Company’s operations, financial position and cash flows, in part due to the adverse impact on the Company’s customers and suppliers; the Company’s degree of success in developing, introducing and selling new or improved products and product enhancements including specifically the Company’s Poly Pro and Presto products, and the Company’s Apollo direct-to-garment platform; the extent of the Company’s ability to consummate sales to large accounts with multi-system delivery plans; the degree of the Company’s ability to fill orders for its systems and consumables; the extent of the Company’s ability to increase sales of its systems, ink and consumables; the extent of the Company’s ability to leverage its global infrastructure build-out; the development of the market for digital textile printing; the availability of alternative ink; competition; sales concentration; changes to the Company’s relationships with suppliers; the extent of the Company’s success in marketing; and those additional factors referred to under “Risk Factors” in Item 3.D of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 28, 2024. Any forward-looking statements in this press release are made as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

 

 

Non-GAAP Discussion Disclosure

 

The Company presents certain non-GAAP financial measures, in this press release and in the accompanying conference call to discuss the Company’s quarterly results. These non-GAAP financial measures reflect adjustments to corresponding GAAP financial measures in order to exclude the impact of the following: share-based compensation expenses; amortization of intangible assets; restructuring expenses; foreign exchange differences associated with ASC 842; and non-cash deferred tax income.

 

The Company defines “Adjusted EBITDA” as non-GAAP operating income (loss), which reflects the adjustments described in the preceding paragraph, as further adjusted to exclude depreciation expense.

 

The purpose of the foregoing non-GAAP financial measures is to convey the Company’s performance exclusive of non-cash charges and other items that are considered by management to be outside of the Company’s core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage, and evaluate the Company’s business and make operating decisions, and the Company believes that they are useful to investors as a consistent and comparable measure of the ongoing performance of the Company’s business. The Company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

 

The reconciliation tables included below present a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures.

 

 

KORNIT DIGITAL LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

 

		June 30,				December 31,
		2024				2023
		(Unaudited)				(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	22,522			$	39,605
Short-term bank deposit			243,396				235,600
Marketable securities			160,121				57,292
Trade receivables, net			79,461				93,632
Inventory			70,595				67,712
Other accounts receivable and prepaid expenses			27,062				28,546
Total current assets			603,157				522,387
LONG-TERM ASSETS:
Marketable securities			128,396				223,203
Deposits and other long-term assets			10,727				8,209
Severance pay fund			286				283
Property, plant and equipment, net			47,710				50,905
Operating lease right-of-use assets			19,697				23,782
Intangible assets, net			6,623				7,647
Goodwill			29,164				29,164
Total long-term assets			242,603				343,193
Total assets			845,760				865,580
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Trade payables			4,794				6,936
Employees and payroll accruals			11,865				12,121
Deferred revenues and advances from customers			1,486				2,158
Operating lease liabilities			3,270				5,073
Other payables and accrued expenses			22,152				23,814
Total current liabilities			43,567				50,102
LONG-TERM LIABILITIES:
Accrued severance pay			1,021				1,080
Operating lease liabilities			15,676				18,533
Other long-term liabilities			138				198
Total long-term liabilities			16,835				19,811
SHAREHOLDERS’ EQUITY			785,358				795,667
Total liabilities and shareholders’ equity		$	845,760			$	865,580

 

 

KORNIT DIGITAL LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2024				2023				2024				2023
		(Unaudited)								(Unaudited)
Revenues
Products		$	34,366			$	40,083			$	63,379			$	71,986
Services			14,255				16,116				29,018				31,991
Total revenues			48,621				56,199				92,397				103,977
Cost of revenues
Products			13,271				22,620				28,962				42,999
Services			13,066				14,886				27,012				29,213
Total cost of revenues			26,337				37,506				55,974				72,212
Gross profit			22,284				18,693				36,423				31,765
Operating expenses:
Research and development, net			10,472				12,907				21,824				25,989
Sales and marketing			14,976				18,158				28,772				33,341
General and administrative			7,532				8,541				14,809				17,489
Total operating expenses			32,980				39,606				65,405				76,819
Operating loss			(10,696	)			(20,913	)			(28,982	)			(45,054	)
Financial income, net			6,435				7,018				11,781				12,422
Loss before taxes on income			(4,261	)			(13,895	)			(17,201	)			(32,632	)
Taxes on income			648				430				907				624
Net loss		$	(4,909	)		$	(14,325	)		$	(18,108	)		$	(33,256	)
Basic loss per share		$	(0.10	)		$	(0.29	)		$	(0.38	)		$	(0.67	)
Weighted average number of shares used in computing basic net loss per share			47,535,212				49,554,383				47,573,334				49,720,453
Diluted loss per share		$	(0.10	)		$	(0.29	)		$	(0.38	)		$	(0.67	)
Weighted average number of shares used in computing diluted net loss per share			47,535,212				49,554,383				47,573,334				49,720,453

 

 

KORNIT DIGITAL LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP  CONSOLIDATED  STATEMENTS  OF  OPERATIONS

(U.S. dollars in thousands, except share and per share data)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2024				2023				2024				2023
		(Unaudited)								(Unaudited)
Revenues		$	48,621			$	56,199			$	92,397			$	103,977
GAAP cost of revenues		$	26,337			$	37,506			$	55,974			$	72,212
Cost of product recorded for share-based compensation (1)			(490	)			(672	)			(992	)			(1,179	)
Cost of service recorded for share-based compensation (1)			(453	)			(493	)			(872	)			(844	)
Intangible assets amortization on cost of product (2)			(264	)			(263	)			(529	)			(526	)
Intangible assets amortization on cost of service (2)			(160	)			(160	)			(320	)			(320	)
Restructuring expenses (3)			-				-				(914	)			(89	)
Non-GAAP cost of revenues		$	24,970			$	35,918			$	52,347			$	69,254
GAAP gross profit		$	22,284			$	18,693			$	36,423			$	31,765
Gross profit adjustments			1,367				1,588				3,627				2,958
Non-GAAP gross profit		$	23,651			$	20,281			$	40,050			$	34,723
GAAP operating expenses		$	32,980			$	39,606			$	65,405			$	76,819
Share-based compensation (1)			(4,926	)			(5,385	)			(9,453	)			(9,772	)
Intangible assets amortization (2)			(87	)			(152	)			(175	)			(340	)
Restructuring expenses (3)			-				-				(757	)			(206	)
Non-GAAP operating expenses		$	27,967			$	34,069			$	55,020			$	66,501
GAAP Financial income, net		$	6,435			$	7,018			$	11,781			$	12,422
Foreign exchange losses associated with ASC 842			(269	)			(121	)			116				(497	)
Non-GAAP Financial income, net		$	6,166			$	6,897			$	11,897			$	11,925
GAAP Taxes on income		$	648			$	430			$	907			$	624
Non-cash deferred tax income			86			$	102				173			$	323
Non-GAAP Taxes on income		$	734			$	532			$	1,080			$	947
GAAP net loss		$	(4,909	)		$	(14,325	)		$	(18,108	)		$	(33,256	)
Share-based compensation (1)			5,869				6,550				11,317				11,795
Intangible assets amortization (2)			511				575				1,024				1,186
Restructuring expenses (3)			-				-				1,671				295
Foreign exchange losses associated with ASC 842			(269	)			(121	)			116				(497	)
Non-cash deferred tax income			(86	)			(102	)			(173	)			(323	)
Non-GAAP net income (loss)		$	1,116			$	(7,423	)		$	(4,153	)		$	(20,800	)
GAAP diluted loss per share		$	(0.10	)		$	(0.29	)		$	(0.38	)		$	(0.67	)
Non-GAAP diluted income (loss) per share		$	0.02			$	(0.15	)		$	(0.09	)		$	(0.42	)
Weighted average number of shares
Shares used in computing GAAP diluted net loss per share			47,535,212				49,554,383				47,573,334				49,720,453
Shares used in computing Non-GAAP diluted net loss per share			49,898,775				49,554,383				47,573,334				49,720,453
(1) Share-based compensation
Cost of product revenues		$	490			$	672			$	992			$	1,179
Cost of service revenues			453				493				872				844
Research and development			1,376				1,601				2,671				2,952
Sales and marketing			1,784				1,944				3,366				3,307
General and administrative			1,766				1,840				3,416				3,513
		$	5,869			$	6,550			$	11,317			$	11,795
(2) Intangible assets amortization
Cost of product revenues		$	264			$	263			$	529			$	526
Cost of service revenues			160				160				320				320
Sales and marketing			87				152				175				340
		$	511			$	575			$	1,024			$	1,186
(3) Restructuring expenses
Cost of product revenues		$	-			$	-			$	865			$	89
Cost of service revenues			-				-				49				-
Research and development			-				-				235				20
Sales and marketing			-				-				190				186
General and administrative			-				-				332				-
		$	-			$	-			$	1,671			$	295

 

KORNIT DIGITAL LTD.

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2024				2023				2024				2023
		(Unaudited)								(Unaudited)
Cash flows from operating activities:
Net loss		$	(4,909	)		$	(14,325	)		$	(18,108	)		$	(33,256	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			3,191				3,654				6,515				7,527
Fair value of warrants deducted from revenues			(313	)			3,332				3,273				5,676
Share-based compensation			5,869				6,550				11,317				11,795
Amortization of premium and accretion of discount on marketable securities, net			16				202				9				525
Realized loss on sale and redemption of marketable securities			-				(43	)			-				(3	)
Change in operating assets and liabilities:
Trade receivables, net			1,266				(11,248	)			14,171				(16,856	)
Other accounts receivables and prepaid expenses			970				(1,682	)			1,484				(766	)
Inventory			(3,868	)			4,963				(3,964	)			1,940
Operating leases right-of-use assets and liabilities, net			(488	)			(555	)			(575	)			(1,012	)
Deposits and other long term assets			(511	)			(851	)			(1,219	)			(1,878	)
Trade payables			1,832				(225	)			(1,933	)			(1,702	)
Employees and payroll accruals			1,674				1,752				522				2,489
Deferred revenues and advances from customers			(364	)			(2,199	)			(672	)			(3,237	)
Other payables and accrued expenses			123				(4,378	)			(2,190	)			(38	)
Accrued severance pay, net			(30	)			(161	)			(62	)			(62	)
Other long - term liabilities			26				(330	)			(60	)			(690	)
Net cash provided by (used in) operating activities		$	4,484			$	(15,544	)		$	8,508			$	(29,548	)
Cash flows from investing activities:
Purchase of property, plant and equipment		$	(1,439	)		$	(1,791	)		$	(2,723	)		$	(5,069	)
Proceeds from (investment in) short-term bank deposits, net			16,601				(219,997	)			(7,796	)			54,935
Proceeds from sales and redemption of marketable securities			-				1,250				3,494				5,250
Proceeds from maturities of marketable securities			24,581				7,680				35,879				11,252
Investment in marketable securities			(26,602	)			(8,911	)			(44,619	)			(18,935	)
Net cash provided by (used in) investing activities		$	13,141			$	(221,769	)		$	(15,765	)		$	47,433
Cash flows from financing activities:
Exercise of employee stock options		$	7			$	53			$	7			$	95
Payments related to shares withheld for taxes			(184	)			(302	)			(778	)			(437	)
Repurchase of ordinary shares			(1,427	)			(14,066	)			(9,055	)			(20,818	)
Net cash used in financing activities		$	(1,604	)		$	(14,315	)		$	(9,826	)		$	(21,160	)
Increase (decrease) in cash and cash equivalents		$	16,021			$	(251,628	)		$	(17,083	)		$	(3,275	)
Cash and cash equivalents at the beginning of the period			6,501				352,950				39,605				104,597
Cash and cash equivalents at the end of the period		$	22,522			$	101,322			$	22,522			$	101,322
Non-cash investing and financing activities:
Purchase of property and equipment on credit			105				219				105				219
Inventory transferred to be used as property and equipment and long term assets			455				-				1,401				-
Property, plant and equipment transferred to be used as inventory			166				-				320				734
Lease liabilities arising from obtaining right-of-use assets			338				(550	)			(1,408	)			5,487

 

 

KORNIT DIGITAL LTD.

AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

(U.S. dollars in thousands, except share and per share data)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2024				2023				2024				2023
		(Unaudited)								(Unaudited)
GAAP Revenues		$	48,621			$	56,199			$	92,397			$	103,977
GAAP Net Loss			(4,909	)			(14,325	)			(18,108	)			(33,256	)
Taxes on income			648				430				907				624
Financial income			(6,435	)			(7,018	)			(11,781	)			(12,422	)
Share-based compensation			5,869				6,550				11,317				11,795
Intangible assets amortization			511				575				1,024				1,186
Restructuring expenses			-				-				1,671				295
Non-GAAP Operating Loss			(4,316	)			(13,788	)			(14,970	)			(31,778	)
Depreciation			2,680				3,079				5,491				6,341
Adjusted EBITDA		$	(1,636	)		$	(10,709	)		$	(9,479	)		$	(25,437	)

 

 

8

 

Exhibit 99.2

 

Kornit Digital. All Rights Reserved. Kornit Digital. All Rights Reserved. Kornit Digital (NASDAQ: KRNT) Second Quarter 2024 Earnings Conference Call Supporting Slides August 7, 2024 Kornit Digital. All Rights Reserved.

Kornit Digital. All Rights Reserved. On Today’s Call Ronen Samuel CEO Lauri Hanover CFO Jared Maymon Investor Relations

Kornit Digital. All Rights Reserved. Safe Harbor This presentation contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U . S . securities laws . Forward - looking statements are characterized by the use of forward - looking terminology such as “will,” “expects,” “anticipates,” “continue,” “believes,” “should,” “intended,” “guidance,” “preliminary,” “future,” “planned,” or other words . These forward - looking statements include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events, or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future . Forward - looking statements are not guarantees of future performance and are subject to risks and uncertainties . The Company has based these forward - looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate . Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward - looking statements include, among other things : the duration and severity of adverse macro - economic headwinds that were caused by inflationary pressures and higher interest rates, which have impacted, and may continue to impact, in an adverse manner, the Company’s operations, financial position and cash flows, in part due to the adverse impact on the Company’s customers and suppliers ; the Company’s degree of success in developing, introducing and selling new or improved products and product enhancements including specifically the Company’s Poly Pro and Presto products, and the Company’s Apollo direct - to - garment platform ; the extent of the Company’s ability to consummate sales to large accounts with multi - system delivery plans ; the degree of the Company’s ability to fill orders for its systems and consumables ; the extent of the Company’s ability to increase sales of its systems, ink and consumables ; the extent of the Company’s ability to leverage its global infrastructure build - out ; the development of the market for digital textile printing ; the availability of alternative ink ; competition ; sales concentration ; changes to the Company’s relationships with suppliers ; the extent of the Company’s success in marketing ; and those additional factors referred to under “Risk Factors” in Item 3 . D of the Company’s Annual Report on Form 20 - F for the year ended December 31 , 2023 , filed with the SEC on March 28 , 2024 . Any forward - looking statements in this press release are made as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law . In addition to U . S . GAAP financials, this presentation includes certain non - GAAP financial measures . These non - GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U . S . GAAP . Please see the reconciliation table that appears among the financial tables in our earnings release being issued today, which earnings release is attached as Exhibit 99 . 1 to our report of foreign private issuer on Form 6 - K being furnished to the SEC today, which reconciliation table is incorporated by reference in this presentation . This presentation contains statistical data that we obtained from industry publications and reports generated by third parties . Although we believe that the publications and reports are reliable, we have not independently verified this statistical data . Kornit, Kornit Digital, the K logo, and NeoPigment are trademarks of Kornit Digital Ltd . All other trademarks are the property of their respective owners and are used for reference purposes only . Such use should not be construed as an endorsement of our products or services .

Kornit Digital. All Rights Reserved. Business Highlights

Kornit Digital. All Rights Reserved. ― Revenues of $48.6 million and adjusted EBITDA margin of negative 3.4% ― Within the guidance range provided in May ― Generated positive cash from operations for Q2 2024 ― Continued improvements year - over - year to impressions and consumables sales ― Macroeconomic environment continues to delay investments in systems Second Quarter 2024 Recap

Kornit Digital. All Rights Reserved. ― The system is driving significant improvements to productivity and TCO ― Regarded as the best solution for replacing screen printing for mid - sized runs ― Received several additional orders in Q2, with four on the AIC model ― Pipeline for 2024 remains filled with a mixture of AIC and CapEx deals ― Continuing to build 2025 pipeline with new and existing customers Apollo Update

Kornit Digital. All Rights Reserved. ― AIC removes barriers to entry by eliminating large capital investments and providing predictable unit economics ― AIC provides better visibility for Kornit on revenue, profitability, and cash flow ― Expanded the program from Apollo to the Atlas family of systems ― Gaining momentum with new and existing customers for AIC on Atlas MAX All - inclusive Click (AIC) Pilot Program Update

Kornit Digital. All Rights Reserved. ― Continues to drive revenue diversification ― Gaining traction in key textile - producing regions ― Viewing India, China, Peru, Portugal, and others as growth drivers for our future in DTF ― Making progress in footwear applications ― Working to have a production - ready footwear solution in coming quarters Direct - to - Fabric Update

Kornit Digital. All Rights Reserved. ― Continuing to see signs of improvement ― Anticipating a stronger second half than first half ― Sales to increase by 20 - 25% in the second half ― Growth to be primarily driven by consumables sales ― Expecting positive EBITDA on a full - year basis and positive operating cash flow throughout 2024 Current View on the Second Half of 2024

Kornit Digital. All Rights Reserved. ― Hosting an Investor Event on September 10 th in Las Vegas ― Event to be held in conjunction with participation in Printing United trade show ― Investor Event will feature presentations from members of executive mgmt. ― Event will also feature panels with key customers and demand generators ― Planning to provide insights into its recent business activities, GTM strategy, and capital allocation plans Announcement of Investor Event

Kornit Digital. All Rights Reserved. ― We achieved significant year - over - year improvements to profitability and cash flow ― Despite a challenging backdrop, we continue to see improvements in impressions, consumables, and utilization ― Adding to our pipeline of orders on AIC for both Apollo and Atlas systems ― Stabilizing our business and improving our P&L in H2 2024 Concluding Remarks

Kornit Digital. All Rights Reserved. Financial Highlights

Kornit Digital. All Rights Reserved. ― Q2 2024 revenues were $48.6 million ― Within the guidance range of $47 - $52 million ― Consumables contributed to year - over - year growth for Q2 2024 ― Systems and services sales declined year - over - year, as expected Revenues $56.2 $48.6 Q2 Revenues ($M) 2023 2024 66% 24% 10% Revenues By Region Americas EMEA Asia Pacific

Kornit Digital. All Rights Reserved. ― Q2 2024 non - GAAP gross margin of 48.6% compared to 36.1% in Q2 2023 ― Improvement again attributable to better mix between comparatively higher - margin consumables and systems, as well as reduced fixed costs due to restructuring efforts ― Q2 2024 margin also benefitted from lack of warrant expense, as first tranche of our warrant agreement with our largest global strategic account concluded Gross Margins 36.1% 48.6 % Q2 Non - GAAP Gross Margin 2023 2024

Kornit Digital. All Rights Reserved. ― Q2 2024 Non - GAAP Operating Expenses: $28.0 million, down from $34.1 million in Q2 2023 ― Reduction reflects cost - savings and restructuring initiatives ― Including workforce reductions, consolidation of facilities, and phasing - out legacy platforms ― OPEX includes ~$1.5 million allowance for doubtful debts related to a customer that filed Ch. 11 ― We continue to target FY24 non - GAAP OPEX to be ~$20 million lower versus FY23 Operating Expenses Non - GAAP Operating Expenses ($ in millions) Q2 2024 Q2 2023 $9.1 $11.3 Research & Development $13.1 $16.1 Sales & Marketing $5.8 $6.7 General & Administrative $28.0 $34.1 Total Operating Expenses (1) (1) Figures may not sum due to rounding

Kornit Digital. All Rights Reserved. P&L KPI’s Q 2 2024 Q2 2023 ($4.3) ($13.8) Non - GAAP Operating Loss ($1.6) ($10.7) Adjusted EBITDA Loss $1.1 ($7.4) Non - GAAP Net Income (Loss) $0.02 ($0.15) Non - GAAP Diluted income (loss) per share ($4.9) ($14.3) GAAP Net Loss ($0.10) ($0.29) GAAP Diluted loss per share $ in millions, except per share amounts

Kornit Digital. All Rights Reserved. ― At quarter end, cash, including bank deposits and marketable securities, was ~$554 million ― Q2 2024 cash generated from operating activities: ~$4.5 million ― Accounts receivable decreased ~$1.2 million from Q1 2024 ― Inventories increased ~$3.6 million from Q1 2024 ― Trade payables increased ~$1.9 million from Q1 2024 Balance Sheet & Cash Flow Q2 2024 Q1 2024 Q2 2023 $554.4 $551.4 $591.7 Cash, Deposits & Marketable Securities $79.5 $80.7 $84.2 Accounts r eceivable, net $70.6 $67.0 $88.2 Inventory $4.8 $2.9 $11.6 Trade p ayables $ in millions

Kornit Digital. All Rights Reserved. ― Interest in our pilot of the AIC offering remains strong ― In Q2 we signed four new Apollo AIC units for delivery towards the end of this year ― Overall, expect to deliver 15 Apollo systems this year, with 10 of those expected on AIC model ― Also began a pilot AIC program for the Atlas family of systems this quarter ― Plan to provide an update on our progress at our Investor Event in September ― Under our AIC model revenue is generated from impressions a customer produces over time rather than upfront at the time of a system sale ― As such P&L benefits of systems shipped on the AIC model will begin to ramp toward the end of this year and into 2025 AIC Pilot Program Update

Kornit Digital. All Rights Reserved. ― We were subject to a blackout period under our existing trading plan ― Unable to repurchase shares for most of Q2 ― Repurchase activity was limited to ~83,000 shares for Q2 ― Average price paid per share net of fees was $14.32 ― Existing authorization for our share repurchase program expired in July ― The Israeli approval process regarding share repurchases recently changed as well ― We are currently navigating this new process ― We look forward to updating the investor community on our capital allocation strategy at upcoming Investor Event planned for September 10 th Share Repurchase Program

Kornit Digital. All Rights Reserved. ― Q3 2024 Revenues: ― Expected to be in the range of $48 million to $52 million ― Q3 2024 Adjusted EBITDA margin: ― Expected to be in the range of 1% to 6% of revenue Third Quarter 2024 Guidance

Kornit Digital. All Rights Reserved. 2024 2023 2024 2023 GAAP Revenues 48,621$ 56,199$ 92,397$ 103,977$ GAAP Net Loss (4,909) (14,325) (18,108) (33,256) Taxes on income 648 430 907 624      Financial income (6,435) (7,018) (11,781) (12,422)      Share-based compensation 5,869 6,550 11,317 11,795      Intangible assets amortization 511 575 1,024 1,186      Restructuring expenses - - 1,671 295 Non-GAAP Operating Loss (4,316) (13,788) (14,970) (31,778)      Depreciation 2,680 3,079 5,491 6,341 Adjusted EBITDA (1,636)$ (10,709)$ (9,479)$ (25,437)$ KORNIT DIGITAL LTD. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA AND ITS SUBSIDIARIES (U.S. dollars in thousands, except share and per share data) Six Months Ended June 30, June 30, (Unaudited) (Unaudited) Three Months Ended

Kornit Digital. All Rights Reserved. Thank You!

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