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KRT

Karat Packaging Inc.

KRT

Karat Packaging Inc. • NASDAQ
$22.04 ▼ -0.77% (-0.17)
Market Cap $442.90 M
52w High $33.89
52w Low $20.61
Dividend Yield 1.80%
P/E 14.69
Volume 50.94K
Outstanding Shares 20.10M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $124.516M ▲ $34.345M ▲ $7.325M ▼ 5.883% ▼ $0.36 ▼ $15.272M ▼
Q2-2025 $123.986M ▲ $32.557M ▼ $10.934M ▲ 8.819% ▲ $0.55 ▲ $20.355M ▲
Q1-2025 $103.624M ▲ $32.942M ▲ $6.409M ▲ 6.185% ▲ $0.32 ▲ $14.386M ▲
Q4-2024 $101.649M ▼ $32.523M ▲ $5.615M ▼ 5.524% ▼ $0.28 ▼ $13.676M ▼
Q3-2024 $112.771M $32.227M $9.094M 8.064% $0.45 $17.098M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $43.968M ▼ $302.837M ▼ $141.251M ▼ $154.481M ▼
Q2-2025 $56.992M ▲ $320.963M ▲ $158.257M ▲ $155.847M ▲
Q1-2025 $56.273M ▼ $312.216M ▲ $152.005M ▲ $153.307M ▼
Q4-2024 $59.927M ▼ $294.522M ▼ $132.323M ▼ $155.569M ▼
Q3-2024 $60.434M $306.803M $143.207M $157.312M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $7.325M ▼ $982K ▼ $4.283M ▲ $-11.792M ▼ $-6.527M ▼ $-1.519M ▼
Q2-2025 $11.052M ▲ $9.75M ▲ $-2.369M ▼ $-9.305M ▲ $-1.924M ▼ $9.583M ▲
Q1-2025 $6.815M ▲ $7.726M ▼ $3.533M ▲ $-10.37M ▼ $889K ▲ $6.63M ▼
Q4-2024 $5.615M ▼ $8.25M ▼ $-7.675M ▼ $-7.894M ▲ $-7.319M ▼ $7.49M ▼
Q3-2024 $9.699M $19.478M $10.287M $-10.173M $19.592M $21.934M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Online
Online
 $40.00M ▲$20.00M ▼$20.00M ▲$20.00M ▲
Retail
Retail
 $10.00M ▲$10.00M ▲$10.00M ▲$10.00M ▲
Distributors
Distributors
 $120.00M ▲$0 ▼$0 ▲$0 ▲
National Distribution
National Distribution
 $50.00M ▲$0 ▼$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Karat Packaging shows a pattern of steady, profitable operations. Sales have grown meaningfully from a few years ago and are now holding at a relatively stable level, with only small year‑to‑year shifts. Profit margins have generally improved compared with the early years, reflecting better cost control and scale benefits. More recently, earnings appear to have leveled off rather than continuing to accelerate, suggesting the business is in a more mature, steady-growth phase where the focus is on maintaining margins and efficiency rather than rapid expansion.

Balance Sheet

Balance Sheet The balance sheet looks progressively stronger over time. Total assets and shareholders’ equity have been building, helped by the company’s public listing and retained profits. Cash levels have climbed from very lean to more comfortable, giving the business more flexibility. Debt has risen from the early post‑IPO period but remains moderate compared with the equity base, indicating a reasonable use of leverage rather than dependence on borrowing. Overall, the financial foundation appears solid, with room to absorb shocks and invest selectively.

Cash Flow

Cash Flow Cash generation has improved meaningfully. Operating cash flow is now consistently positive and notably higher than in the early years, showing that reported profits are being backed by real cash coming in. After capital spending, the company is regularly producing positive free cash flow, a shift from the more investment-heavy period before and just after the IPO. Capital expenditures have become more modest and predictable, suggesting the company has already built much of the capacity and infrastructure it needs and is now in a more cash‑generative phase.

Competitive Edge

Competitive Edge Karat occupies a differentiated niche in foodservice packaging by leaning heavily into eco‑friendly products and an asset‑light model. Its Karat Earth brand gives it a strong position in compostable and biodegradable items at a time when regulation and consumer preferences are moving in that direction. A diversified global sourcing network and a broad product catalog, including beverage ingredients and cleaning supplies, make it a one‑stop shop for many customers. Customization and branding services deepen relationships with larger clients, and a national warehouse footprint supports reliable delivery. The main competitive pressures come from a crowded packaging landscape, margin sensitivity to material and freight costs, and the risk that larger players push harder into sustainable products over time.

Innovation and R&D

Innovation and R&D Innovation is focused more on product development, materials, and logistics efficiency than on heavy, formal R&D spending. Karat continues to expand its sustainable Karat Earth line, experimenting with renewable materials and new formats, while also growing specialty offerings like Tea Zone for beverage ingredients and Total Clean for ancillary supplies. On the operations side, the company is leaning into automation, e‑commerce tools, and greener logistics, including plans for more advanced trucking solutions, to improve service and costs. It is also open to acquisitions and further supply-chain diversification, which are more strategic than purely technological moves but still important forms of innovation for this business model.

Summary

Karat Packaging has evolved into a steady, profitable, and cash‑generative foodservice packaging company with a clear sustainability angle. Financial statements show healthier margins, stronger cash flow, and a more robust balance sheet than in its pre‑IPO phase, though recent growth appears more incremental than explosive. Its competitive edge is built around eco‑friendly products, flexible sourcing, customization, and a broad one‑stop offering to restaurants and beverage operators. The main watchpoints are cost inflation, intense competition in packaging, and the need to keep innovating in sustainable materials and logistics to defend margins and market share. Overall, it looks like a relatively disciplined operator in a competitive but growing niche driven by environmental and regulatory tailwinds.

NEWS

November 6, 2025 · 4:05 PM UTC

Karat Packaging Reports 2025 Third Quarter Financial Results

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November 5, 2025 · 8:00 AM UTC

Karat Packaging Board Declares Quarterly Cash Dividend; Initiates First-Ever Share Repurchase Program

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October 23, 2025 · 8:00 AM UTC

Karat Packaging to Report 2025 Third Quarter Financial Results and Host Conference Call on Thursday, November 6, 2025

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October 17, 2025 · 8:00 AM UTC

Lollicup USA Relocates Headquarters to Rockwall, Texas

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