Gooten, Kornit Digital form global print-on-demand alliance

NEW YORK - Gooten, a print-on-demand fulfillment company, has entered into a strategic partnership with Kornit Digital (NASDAQ: KRNT), a leader in digital fashion and textile production technologies with a market capitalization of $891 million. According to InvestingPro data, Kornit maintains a strong financial position with more cash than debt on its balance sheet. The collaboration, announced today, aims to enhance e-commerce by connecting Gooten’s platform with Kornit’s Global Fulfillment Network (GFN), spanning over 250 production locations worldwide.

The partnership allows brands using the Gooten platform to access Kornit’s network, scaling their operations efficiently. This integration offers a broad product catalog and simplifies logistics, meeting consumer demands for high-quality textile products with rapid and precise fulfillment. With a robust current ratio of 13.88, Kornit demonstrates strong operational capability to support this expansion. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with analysts projecting profitability in 2025.

Maddy Alcala, President of Gooten, expressed enthusiasm about the collaboration, stating that it significantly expands Gooten’s catalog and production reach. The alliance is expected to provide brands with a unique solution for global e-commerce, enabling them to innovate and sell internationally with confidence from a scalable platform.

The partnership’s key benefits include the delivery of retail-quality products at scale, local production for global reach, seamless connectivity for quick onboarding, and support for sustainable growth. Additionally, it presents opportunities for brands to explore new revenue streams and market entry, backed by Kornit’s production capacity.

Both companies advocate for responsible production models that aim to reduce waste and minimize inventory risks, supporting sustainable brand expansion.

This initiative underscores Gooten’s commitment to advancing the digital transformation of fashion and lifestyle products. Kornit’s infrastructure plays a crucial role in supporting brands to deliver exceptional value and growth in the current dynamic marketplace.

Based on a press release statement, the partnership between Gooten and Kornit Digital represents a significant step in the evolution of on-demand textile production, offering a comprehensive solution for brands to scale globally.

In other recent news, Kornit Digital Ltd reported its fourth-quarter 2024 financial results, revealing a mixed performance. The company announced a revenue of $60.7 million, slightly surpassing expectations but showing a decline in full-year revenue to $203.8 million from $219.8 million in 2023. The fourth-quarter earnings per share (EPS) were $0.18, falling short of the forecasted $0.21, leading to a negative surprise for investors. Despite this, Kornit Digital’s non-GAAP gross margin improved to 55.1% in Q4, up from 48.6% the previous year, indicating better cost efficiency.

Cantor Fitzgerald maintained an Overweight rating on Kornit Digital, setting a price target of $39.00, acknowledging the company’s ability to exceed revenue and adjusted EBITDA expectations. Kornit Digital reported an adjusted EBITDA of $8.4 million, which was better than anticipated, reflecting a margin of 13.8%. The company’s operational cash flow also showed significant improvement, reaching $26.7 million for the quarter.

Looking ahead, Kornit Digital provided guidance for the first quarter of 2025, with expected revenues between $45.5 million and $49.5 million, and an adjusted EBITDA margin ranging from -4% to -9%. The company remains focused on product innovation and market expansion, with plans to deliver 30 Apollo systems in 2025. Kornit Digital’s management emphasized their commitment to profitable growth and execution in the coming year.

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