The earnings call highlights Karat Packaging Inc.'s strong sales growth and strategic supply chain diversification, alongside significant challenges in managing increased operating expenses and maintaining margins. The company's solid cash flow and liquidity are positive, but the decline in adjusted EBITDA and earnings per share indicate some underlying financial pressures.

Company Guidance -

Q2 2025

During Karat Packaging Inc.'s 2025 first quarter conference call, the company provided guidance on several key financial metrics. They reported an 8.4% increase in net sales, reaching $103.6 million, with a 10.9% increase in sales volume year over year. The gross margin remained stable at 39.3%, and the company generated an operating cash flow of $7.7 million for the quarter. The adjusted EBITDA was $11.9 million, with an adjusted EBITDA margin of 11.5%. Looking forward, Karat Packaging expects net sales for the second quarter to grow by high single digits to low double digits compared to the previous year, with a gross margin consistent with the first quarter and an adjusted EBITDA margin in the mid-teens. The company is also working to reduce its reliance on Chinese imports, aiming to decrease imports from China to under 10% by the end of the second quarter, while expanding its sourcing from countries like Malaysia, Indonesia, and Vietnam.

Strong Sales Growth

Karat Packaging Inc. achieved an 8.4% growth in net sales and a nearly 11% increase in sales volume year over year for the first quarter of 2025.

Diversification of Supply Chain

The company reduced sourcing from China from 20% at the end of 2024 to 15% by March 2025, with plans to further reduce to under 10% by the end of Q2 2025, moving production to countries like Malaysia, Indonesia, Vietnam, and Thailand.

Expansion of Online Business

Online sales experienced a nearly 20% increase during the first quarter, reflecting a strong focus on expanding this high-margin category.

New Distribution Center

The company opened a new 187,000 square feet distribution center near their headquarters in Chino, providing additional capacity to support growth.

Operating Cash Flow and Liquidity

Karat Packaging Inc. generated $7.7 million in operating cash flow and ended the quarter with $111.9 million in working capital and $46.7 million in financial liquidity.

Karat Packaging Inc (KRT) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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KRT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 07, 2025	2025 (Q2)	0.56 / -	0.49	―	―	―
May 08, 2025	2025 (Q1)	0.28 / 0.33	0.4	-17.50% (-0.07)	―
Mar 13, 2025	2024 (Q4)	0.38 / 0.29	0.24	20.83% (+0.05)	―
Nov 07, 2024	2024 (Q3)	0.49 / 0.47	0.47	0.00% (0.00)	―
Aug 08, 2024	2024 (Q2)	0.58 / 0.49	0.53	-7.55% (-0.04)	―
May 09, 2024	2024 (Q1)	0.43 / 0.40	0.46	-13.04% (-0.06)	―
Mar 14, 2024	2023 (Q4)	0.39 / 0.24	0.3	-20.00% (-0.06)	―
Nov 09, 2023	2023 (Q3)	0.47 / 0.47	0.33	42.42% (+0.14)	―
Aug 09, 2023	2023 (Q2)	0.32 / 0.53	0.34	55.88% (+0.19)	―
May 10, 2023	2023 (Q1)	0.31 / 0.46	0.36	27.78% (+0.10)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

KRT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 08, 2025	$26.94	$29.81	+10.65%
Mar 13, 2025	$28.52	$27.92	-2.10%
Nov 07, 2024	$28.10	$28.36	+0.93%
Aug 08, 2024	$26.28	$22.38	-14.84%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Karat Packaging Inc (KRT) report earnings?

Karat Packaging Inc (KRT) is schdueled to report earning on Aug 07, 2025, After Close (Confirmed).

What is Karat Packaging Inc (KRT) earnings time?

Karat Packaging Inc (KRT) earnings time is at Aug 07, 2025, After Close (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

You can see a list of the companies which are reporting today on TipRanks earnings calendar.

What is KRT EPS forecast?

KRT EPS forecast for the fiscal quarter 2025 (Q2) is 0.57.

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