Karat Packaging delivered a strong second quarter with notable growth in sales, income, and operational efficiency, bolstered by strategic diversification and new business wins. However, challenges such as unfavorable pricing, increased freight costs, and currency losses were noted, alongside an expected gross margin decline in the next quarter.

Company Guidance -

Q3 2025

During the Karat Packaging Inc. Second Quarter 2025 Earnings Conference Call, the company reported a 10.1% increase in net sales to $124 million and a 13% growth in sales volume year-over-year. Despite a foreign currency headwind, net income increased by 19.8% to $11.1 million, with a net income margin of 8.9%. Adjusted EBITDA rose to $17.7 million, with a margin of 14.3%. The company also highlighted a reduction in reliance on China for sourcing to 10% and emphasized plans to further diversify sourcing across Asia and Latin America. Karat Packaging announced a quarterly dividend of $0.45 per share and projected a 9% to 10% increase in net sales for the third quarter of 2025. Gross margin is expected to be in the low to mid-30s, with an adjusted EBITDA margin between 10% and 12%.

Record Second Quarter Performance

Achieved a record second quarter with a 13% increase in sales volume, 10% growth in net sales, and 20% growth in net income year-over-year.

Diversification and Supply Chain Resilience

Reduced reliance on China to 10% of sourcing in the second quarter and expanded sourcing to other Asian countries and Latin America.

New Business and Distribution Center

Secured new business wins from large national chains and opened a new distribution center near Chino headquarters to strengthen logistics capabilities.

Improved Operating Income and Gross Margin

Operating income increased by 48.9% to $16.6 million, and gross margin increased 110 basis points to 39.6%.

Positive Online Sales Growth

Online sales increased by 6.8% over the prior year quarter, reflecting a focus on expanding this high-margin category.

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
Nov 06, 2025	2025 (Q3)	0.36 / -	0.47	―	―	―
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)	―
Aug 09, 2023	2023 (Q2)	0.32 / 0.53	0.34	55.88% (+0.19)	―

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
Aug 07, 2025	$26.74	$25.06	-6.28%
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%

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 Nov 06, 2025, After Close (Confirmed).

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

Karat Packaging, Inc. (KRT) earnings time is at Nov 06, 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 (Q3) is 0.36.

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