Kornit Digital Ltd.

Greetings and welcome to Cornete Digital's first quarter 2026 earnings conference call. As a reminder, this call is being recorded. I would now like to turn the conference over to our host, Mr. Andy Backman, Chief Capital Markets Officer for Cornete Digital. Mr. Backman, you may begin.

Thank you, Operator. Good day, everyone, and welcome to Cornete Digital's first quarter 2026 earnings conference call. Joining me today are Ronan Samuel, Courtney's Chief Executive Officer, and Asaf Zapari, our Chief Financial Officer. For today's call, Ronan will share his overall commentary on the first quarter, followed by Asaf, who will review our first quarter 2026 results and provide our guidance for the second quarter 2026 before we open up the call for Q&A. Before we begin, I would like to remind you that forward-looking statements within the meaning of the U.S. securities laws will be made on this call. These forward-looking statements include but are not limited to statements relating to the company's plans, strategies, projected results of operations or financial condition, and similar statements regarding the company's expectations for the future. The fulfillment of forward-looking statements is subject to known and unknown risks and uncertainties. I encourage you to review the company's filings with the Securities and Exchange Commission, including the company's annual report on foreign 20F filed with the SEC on March 26, 2026, which identifies specific risk factors that could cause actual results to differ materially. Any forward-looking statements are made currently, and the company undertakes no obligation to publicly update them except as required by law. Additionally, the company will be making reference to certain non-GAAP financial measures on this call. The reconciliation of these non-GAAP measures to the most directly comparable GAAP measures can be found in the company's earnings release published today, which is also posted on the company's investor relations website. At this time, I would like to turn the call over to Ronan. Ronan?

Thank you, Andy, and good day, everyone. Q1 was a strong start to the year and a clear proof point that our strategy is translating into execution and measurable results. We delivered revenues of approximately $48.5 million at the high end of our guidance with adjusted EBITDA loss of $2.8 million and continued to generate positive operating cash flow for the 10th consecutive quarter. We are seeing continued strong impression growth with trailing 12-month year-over-year growth of approximately 12% driven by higher utilization across our install base and the ongoing shift from screen to digital. Momentum is being driven by both new and existing customers. Approximately 40% of our system sales in the first quarter came from new customers, while approximately 65% were to traditional screen printing customers, primarily targeting long-run production environments. At the same time, relatively new customers are already expanding their fleets after seeing the operational and economic benefits of digital production. Together, these trends reinforce the shift from analog to digital manufacturing. As an example, Promos Inc., who became a Cornite customer just last year, expanded its Apollo and Atlas Max fleet with multiple Atlas Max Plus systems through Cornite AIC platform. The company is also beta testing our newly unveiled Atlas Metrics platform. Another example is Printiz, a high-volume Canadian screen printer focused on sports and at leisure, which expanded its Atlas Max polyfleet with multiple Atlas Max Plus systems during the first quarter. The company is also committed to upgrade all its systems to Atlas Metrics platform, including its plan expansions into the U.S. market. Our pipeline and backlog continue to strengthen, improving visibility into Q2 and the second half of the year and reinforcing our confidence in the business momentum. In the first quarter, we added ARR of approximately 2.1 million, ending Q1 with about 27 million in ARR. Based on our signed backlog, advanced pipeline, and customers already committed to AIC, we expect a meaningful step up in ARR in Q2 with continued acceleration throughout the second half of the year. A few weeks ago, we hosted Connection 2026, which was a defining moment for Cornit and for the industry. We had close to 600 participants, including hundreds of existing customers and a strong mix of new prospects, brands, retailers, fulfillers, and solution partners. The energy and feedback around our vision, strategy, and solutions was extremely strong. Connections is becoming much more than an event. It is evolving into a platform where the industry comes together to shape the future of on-demand production and demonstrates CONIT's leadership in that transformation. What became very clear during the event was that the industry is accelerating toward agile, demand-driven manufacturing models, and customers are actively looking for technologies and integrated platforms that can reduce inventory risk, improving speed to market, and drive more sustainable production. At Connections, we demonstrated Atlas metrics for the first time. and the response exceeded our expectations. Customers immediately recognized the breakthrough value of a single platform capable of producing across cotton, polyesters, and blends with industrial scale quality, durability, consistency, and efficiency. Powered by our unique carbon shield technology, Metrix addresses one of the industry's biggest challenges, enabling high-quality digital production on polyester fabrics while preventing dye migration, a critical limitation that has constrained digital apparel printing for years. This breakthrough significantly expands our addressable market into polyester, sportswear, performance apparel, and other high-growth segments, opening new applications and production opportunities for our customers. Customer and partner feedback has been extremely positive. and we are already building a meaningful backlog of new and upgraded orders, reinforcing Atlas Metrics' potential to accelerate the transition from analog to digital production across a much broader portion of the market. We also showcased Apollo in live production environments, demonstrating the level of automation, throughput, and consistency required to address bulk and mid-run production at scale. For the first time, we demonstrated production on cut pieces using Apollo, opening new market opportunities in applications and workflows that historically were difficult to automate digitally at scale. The response from customers looking to replace analog screen printing was very strong, reinforcing the significant market opportunities ahead of us. In parallel, we announced the acquisition of Print Factory, a strategic transaction that significantly strengthens our software, workflow and production automation capabilities. What we are seeing more clearly now is that digital production is no longer limited to short-run customization. It is increasingly moving into scaled manufacturing environments. Print Factory is already deployed across thousands of production sites globally, bringing advanced color management, workflow automation, and production control capabilities that are becoming increasingly critical in scaled digital manufacturing environments. More importantly, Print Factory accelerates our long-term strategy to build the connected digital infrastructure for the textile and apparel industry, connecting demand generation, workflow, production, and fulfillment into one scalable ecosystem. Customers increasingly recognize that the future of production lies in intelligent, connected platforms, not just hardware. Very few companies in the industry can bring together production systems, workflow, automation, consumable, and fulfillment connectivity into a single integrated offering the way Cornit can. Following connection, we continued to build momentum at tax process in Frankfurt, where we introduced and demonstrated Presto Max Plus for the first time. Interest levels were extremely high, particularly in the footwear, technical apparel, camouflage, performance wear, home decor, and other high-performance applications. and we are already seeing a growing pipeline of opportunities and orders for the new platform. Presto Max Plus represents another important expansion of our addressable market, bringing Kornit's digital production capabilities into entirely new categories and applications. Powered by our new Duatec architecture, the system delivers exceptional durability and print performance on demanding fabrics and applications that historically were impossible to address with digital production. Combined with our advanced vision system and intelligent production capabilities, Presto Max Plus brings a new level of automation, consistency, and production control to all-to-all digital textile manufacturing. Customer feedback around print durability, fabric flexibility, sustainability, and the ability to eliminate traditional pre- and post-processing steps was extremely positive. Taken together, these developments reinforce the strengths of our innovation pipeline, the breadth of our platform, and the momentum we are building across products, customers, and markets, positioning Corneet well to capture the growing shift towards on-demand production. Looking ahead, the momentum we build in Q1 continues to strengthen into Q2. Our Q2 guidance reflects the continued progress and execution we are seeing across the business. In addition, Our growing pipeline, backlog, and customer activity are providing us with better visibility and confidence as we look towards the second half of the year. We also remain disciplined on cost. While the strengthening of the shekel creates some pressure, we are taking the right actions to manage our cost structure and protect profitability as we scale. Stepping back, Over the past two years, we focused on stabilizing the business, strengthening our foundation, and redefining our strategy. Today, we are seeing the results through a stronger product portfolio, expansion into new markets and applications, a growing recurring revenue model through AIC, and a clear position as the technology and platform leader enabling the shift towards on-demand manufacturing at scale. Most importantly, we are executing consistently and building the foundation to scale and grow from here. With that, I will turn the call over to Asaf. Asaf.