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May 7, 2026·SEC
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Karat Packaging Inc.(KRT)Earnings, Financials & Key Ratios
KRT•NASDAQ
$33.83
21.7× P/E·Price updated Jul 2, 2026
AboutKarat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand. The company offers its products to domestic and regional distributors, restaurant chains, retail establishments, and online customers. It also provides new product development, design, printing, and logistics services. Karat Packaging Inc. was founded in 2000 and is based in Chino, California.Show more
- Revenue$468M+10.7%
- EBITDA$62M+11.1%
- Net Income$31M+5.0%
- EPS (Diluted)1.56+4.7%
- Gross Margin36.8%-5.4%
- EBITDA Margin13.31%+0.3%
- Operating Margin8.79%-1.6%
- Net Margin6.73%-5.1%
- ROE19.73%+6.9%
KRT Price & Volume
Karat Packaging Inc. (KRT) stock price & volume — 10-year historical chart
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Revenue Growth Faces Structural Margin Compression Headwinds
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Expanding
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Input Cost Volatility Exposure
Key Thesis Takeaways
- Karat Packaging demonstrates consistent top-line expansion with 12.9% year-over-year revenue growth in 2026Q1, yet this growth is increasingly offset by significant margin volatility and inefficient capital allocation.
- While the company maintains a stable liquidity buffer with a 2.29 current ratio, the aggressive $9.0M quarterly dividend payout appears unsustainable given the erratic free cash flow, which dipped to -1.2% in 2025Q3.
- Investors should monitor whether the company can stabilize its operating margins, which contracted from 13.3% in 2025Q2 to 7.2% in 2026Q1, before committing further capital to this cyclical packaging play.
Verdict Logic
while the company shows top-line growth, the 21.61 P/FCF multiple and the recent contraction in operating margins to 7.2% suggest that current valuation levels may not fully account for the underlying operational risks.
KRT Growth Metrics
Karat Packaging Inc. (KRT) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years9.62%
3 Years3.41%
TTM11.71%
Profit CAGR
10 Years-
5 Years12.44%
3 Years10%
TTM5.27%
EPS CAGR
10 Years-
5 Years6.66%
3 Years9.44%
TTM5.33%
Return on Capital
10 Years17.24%
5 Years16.48%
3 Years17.44%
Last Year17.67%
KRT Recent Earnings
Karat Packaging Inc. (KRT) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 5/12 qtrs (42%)●Beat Revenue 6/12 qtrs (50%)
Q2 2026Latest
May 7, 2026Metric
Actual
Est
EPS
$0.34+6.3%
$0.32
Rev
$117M+3.5%
$113M
Q2 2026
Mar 12, 2026Metric
Actual
Est
EPS
$0.34+23.3%
$0.28
Rev
$116M+1.5%
$114M
Q4 2025
Nov 6, 2025Metric
Actual
Est
EPS
$0.37-5.1%
$0.39
Rev
$125M+9.3%
$114M
Q3 2025
Aug 7, 2025Metric
Actual
Est
EPS
$0.57-5.0%
$0.60
Rev
$124M-0.0%
$124M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 7, 2026 | $0.34vs $0.32+6.3% | $117Mvs $113M+3.5% |
| Q2 2026 | Mar 12, 2026 | $0.34vs $0.28+23.3% | $116Mvs $114M+1.5% |
| Q4 2025 | Nov 6, 2025 | $0.37vs $0.39-5.1% | $125Mvs $114M+9.3% |
| Q3 2025 | Aug 7, 2025 | $0.57vs $0.60-5.0% | $124Mvs $124M-0.0% |
Based on last 12 quarters of dataView full earnings history →
Peers Comparison
Key metrics vs top competitors for Karat Packaging Inc. (KRT)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $33.83 | $675.37M | 21.69 | 10.67% | 6.73% | 19.73% | 5.29% | |
| $268.67 | $2.08B | 30.64 | 19.5% | 11.27% | 16.61% | — | |
| $46.11 | $4.87B | 17.08 | 10.73% | 4.31% | 12.47% | — | |
| $6.91 | $591.01M | -15.36 | 7.08% | -9.28% | -7.04% | — | |
| $74.81 | $3.54B | 4.99 | -1% | 29% | 33.73% | — | |
| $42.15 | $6.21B | 12.29 | -0.61% | 9.43% | 48.39% | — |
Compare KRT vs Peers
Karat Packaging Inc. (KRT) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
KRT SEC Filings & Documents
Karat Packaging Inc. (KRT) SEC filings — annual & quarterly reports (10-K, 10-Q)
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KRT Frequently Asked Questions
Karat Packaging Inc. (KRT) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Karat Packaging Inc.'s revenue?
Karat Packaging Inc. (KRT) reported $481.1M in revenue for fiscal year 2025. This represents a 243% increase from $140.1M in 2017.
How fast is Karat Packaging Inc. growing?
Karat Packaging Inc. (KRT) grew revenue by 10.7% over the past year. This is steady growth.
Is KRT profitable?
Yes, Karat Packaging Inc. (KRT) is profitable, generating $31.8M in net income for fiscal year 2025 (6.7% net margin).
Dividend & Returns
Does KRT pay dividends?
Yes, Karat Packaging Inc. (KRT) pays a dividend with a yield of 5.29%. This makes it attractive for income-focused investors.
What is KRT's return on equity?
Karat Packaging Inc. (KRT) has a return on equity (ROE) of 19.7%. This is reasonable for most industries.
What is Karat Packaging Inc.'s free cash flow?
Karat Packaging Inc. (KRT) generated $28.6M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.