Despite strong sales growth and strategic expansions, the company faced significant challenges with decreased margins, lower net income, and softness in the retail channel. The introduction of a stock repurchase program and expansion in new product categories indicate confidence in future growth, but current financial pressures temper the overall outlook.

Company Guidance

During the Karat Packaging Third Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance for the upcoming period. Net sales for Q3 were reported at $124.5 million, marking a 10.4% increase year-over-year, driven by a $9.4 million increase in volume and a favorable product mix impact of $3.5 million. The gross margin was sustained at 34.5%, despite higher import costs due to increased duties and tariffs, and the company projects this to remain between 33% to 35% for Q4. Adjusted EBITDA for Q3 was $13.1 million, with a margin of 10.5%, and the company anticipates a Q4 margin of 8% to 10%. The company also highlighted a new two-year contract to supply paper bags, expected to contribute approximately $20 million in additional annual revenue, with a projection to scale this business to more than $100 million annually over the next 2 to 3 years. The Board approved a quarterly dividend of $0.45 per share and initiated a $15 million share repurchase program, reflecting confidence in future growth. For Q4, net sales are expected to increase by 10% to 14% over the previous year.

Record Net Sales Growth

Karat Packaging achieved record net sales, increasing over 10% year-over-year, driven by solid volume expansion, a favorable product mix, and effective pricing initiatives.

Expansion in Paper Bag Business

Secured a major business add-on to supply paper bags, expected to contribute approximately $20 million in annual revenue, with plans to scale to $100 million within 2-3 years.

Successful Sourcing Diversification

Increased domestic sourcing to 20% and reduced imports from Taiwan to 42%, aiding in supply chain management despite higher import costs.

First-Ever Stock Repurchase Program

Announced a $15 million stock repurchase program, indicating confidence in future growth prospects.

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

Daily Earnings Calendar >

KRT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 12, 2026	2025 (Q4)	0.26 / -	0.29	―	―	―
Nov 06, 2025	2025 (Q3)	0.38 / 0.37	0.47	-21.28% (-0.10)	―
Aug 07, 2025	2025 (Q2)	0.56 / 0.57	0.49	16.33% (+0.08)	―
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)	―

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
Nov 06, 2025	$24.00	$22.50	-6.25%
Aug 07, 2025	$26.28	$24.62	-6.32%
May 08, 2025	$26.47	$29.30	+10.69%
Mar 13, 2025	$28.03	$27.44	-2.10%

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 Mar 12, 2026, After Close (Confirmed).

What is Karat Packaging, Inc. (KRT) earnings time?

Karat Packaging, Inc. (KRT) earnings time is at Mar 12, 2026, 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 (Q4) is 0.26.

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