Karat Packaging Inc.

24.51-0.24 (-0.97%)

Oct 29, 4:00:02 PM EDT · NasdaqGS · KRT · USD

Upcoming Earnings

Report date

Nov 6, 2025 (in 7 days)

Key Stats

Market Cap

492.47M

P/E (TTM)

15.42

Basic EPS (TTM)

1.59

Dividend Yield

0.07%

Recent Filings

10-Q

Q2 FY2025 results

8/8/25Aug 8, 2025

Karat Packaging posted solid Q2 FY2025 results, with net sales climbing 10.1% year-over-year to $124.0M on higher volume and favorable product mix, though pricing dipped slightly. Gross margin expanded to 39.6% from 38.5%, fueled by better vendor terms and more imports, while operating income surged 48.9% to $16.6M despite steady expenses. Diluted EPS rose to $0.54 from $0.45, aligning with 20.2M weighted shares; net income hit $11.1M, up 19.8%, but trailed operating income due to $2.9M foreign currency losses from USD weakening against the New Taiwan Dollar. Cash stood at $30.5M with $26.4M in short-term investments and $14.2M revolver availability, supporting $17.5M operating cash flow (down 13.7% y/y) and $16.2M free cash flow (derived); total debt was $48.0M at fixed rates of 3.5%-4.375%, maturing 2026-2027, with covenants met. Renewed a key New Jersey lease through 2030. Supply chain disruptions remain a key risk.

8-K

Record Q2 sales surge

8/7/25Aug 7, 2025

Karat Packaging Inc. reported record Q2 2025 net sales of $124.0 million, up 10.1% from $112.6 million last year, with net income hitting $11.1 million, a 19.8% rise. Gross margin expanded to 39.6%, fueled by favorable vendor pricing and product mix, despite tariff hikes and a $2.9 million foreign currency loss from a weakening USD against the New Taiwan Dollar. Diversifying sourcing away from China to 10% bolstered supply chain resilience. Q3 sales guidance points to high single-digit to low double-digit growth; tariffs pose ongoing risks.

8-K

Quarterly dividend declared

8/6/25Aug 6, 2025

Karat Packaging's board declared a regular quarterly cash dividend of $0.45 per share on August 5, 2025, payable on or about August 27 to shareholders of record on August 20. This payout underscores the company's steady cash flow from its disposable foodservice products business. Dividend declared.

8-K

Shareholders approve directors, auditors

6/20/25Jun 20, 2025

Karat Packaging Inc. held its 2025 Annual Meeting on June 19, where shareholders elected Alan Yu, Jian Guo, Paul Y. Chen, Eric Chen, and Eve Yen as directors, each receiving over 16.8 million votes for amid minimal opposition. The board ratified PricewaterhouseCoopers LLP as auditors for the fiscal year ending December 31, 2025, with 18.2 million votes in favor. Say-on-pay approval passed with 16.9 million supporting votes. All directors won decisively.

8-K

Secondary stock offering priced

6/12/25Jun 12, 2025

Karat Packaging Inc. entered an underwriting agreement on June 10, 2025, for a secondary offering of 1,500,000 shares of common stock by certain management team members at $27.00 per share, with underwriters BofA Securities and William Blair granted a 30-day option for 225,000 more shares. The offering, set to close June 12, 2025, brings no proceeds to the company. Management cashes out. Forward-looking statements highlight risks from SEC filings.

About

Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It offers food and take-out containers, bags, boxes, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, utensils, janitorial and warehouse supplies, and other products under the Karat Earth brand. The company also distributes food and beverage items, such as syrups, boba tea, and coffee drinks; and provides new product development, design, printing, and logistics services. It offers its products to national and regional distributors, restaurant chains, retail establishments, and online customers. The company was founded in 2000 and is based in Chino, California.

CEO

Mr. Alan Yu

IPO

4/15/2021

Website

https://www.karatpackaging.com

Employees

683

Sector

Consumer Cyclical

Industry

Packaging & Containers