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Karat Packaging Inc (KRT)
NASDAQ:KRT
Earnings Data
Report Date
May 07, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.31Last Year’s EPS
0.33Same Quarter Last Year
Based on 3 Analysts Ratings
Earnings Call Summary
Q4 2025
Earnings Call Date:Mar 12, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive tone: the company delivered strong top-line growth, improved operating efficiency, robust cash generation, meaningful returns to shareholders, and expanding eco-friendly and paper bag businesses. Key near-term guidance is constructive (Q1 and full-year 2026). However, meaningful margin pressure from higher tariffs, duties and import costs, a decline in gross margin versus the prior year, freight/energy uncertainty, and weather-related disruptions pose tangible near-term risks. On balance, the favorable operational execution, cash flow and growth drivers outweigh the current headwinds, with management expecting tariff and FX tailwinds to help margins later in the year.Company Guidance
Top-line Growth and Volume Expansion
Net sales of $115.6M in Q4 2025, up 13.7% from $101.6M a year ago; growth driven by double-digit volume growth across major markets and a $6.3M favorable impact from pricing and product mix (volume contributed ~$8.2M). Pricing turned positive for the first time since early 2023.
Profitability and Income Gains
Net income rose 22.8% to $7.2M (net income margin 6.2% vs 5.8% prior-year). Operating income increased 16% to $8.5M. Adjusted EBITDA increased to $12.5M from $11.3M and adjusted diluted EPS rose to $0.34 from $0.29.
Strong Cash Generation and Capital Actions
Operating cash flow of $15.4M and free cash flow of $14.6M in the quarter. Early loan repayment of $8.0M on a VIE term loan. Returned capital via regular $0.45 quarterly dividend and $3.0M share repurchase (137,374 shares) with ~$12.0M remaining repurchase authorization. Working capital $91.0M and liquidity $45.6M.
Operating Efficiency and Cost Control
Operating expenses decreased to $30.9M from $32.5M year-over-year. Company reduced online platform fees by $1.6M, marketing by $0.5M and professional services by $0.4M. Operating cost leverage improved to 26.7% from 32% in the prior-year quarter.
Eco-friendly Product Momentum and Category Expansion
Eco-friendly product sales grew to 37.3% of total revenue in 2025 vs 34.5% prior-year quarter (increase of 2.8 percentage points). Paper bag category gaining traction (supplying a large national chain, adding generic and custom bags) with SKU expansion planned (adding ~50+ SKUs).
Supply Chain Diversification and Sourcing Flexibility
Import mix shifted to 46% Taiwan, 14% China, 13% U.S., 11% Vietnam and 11% Malaysia, enabling resilience amid tariff and FX volatility and positioning the company to realize margin tailwinds beginning in Q2 as tariffs and FX stabilized.
Positive Near-Term Outlook
Q1 2026 guidance: net sales growth ~8%–10% YoY, gross margin guidance 34%–36% and adjusted EBITDA margin 9%–11%. Full-year 2026 expected to deliver low double-digit revenue growth and year-over-year margin improvement under the current tariff environment.
KRT Earnings History
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 |
|---|---|---|---|
Mar 12, 2026 | $22.31 | $26.92 | +20.66% |
Nov 06, 2025 | $23.07 | $21.63 | -6.27% |
Aug 07, 2025 | $25.26 | $23.68 | -6.28% |
May 08, 2025 | $25.45 | $28.17 | +10.68% |
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 May 07, 2026, After Close (Confirmed).
What is Karat Packaging Inc (KRT) earnings time?
Karat Packaging Inc (KRT) earnings time is at May 07, 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 2026 (Q1) is 0.31.