KRT
Karat Packaging Inc.23.36
+0.43+1.88%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Conservative guidance flags pipeline upside
Q&A clarified Karat's low double-digit 2026 sales guidance as conservative market-share plays in paper bags—adding 50+ SKUs, shopping bags, custom printing—amid competitors posting negative to low single-digit growth. Weather shutdowns in Texas and East Coast explained Q1's moderated 8-10% growth pace, with March momentum rebounding. Management downplayed full pipeline impact from dozens of chain accounts in testing (6-9 months), eyeing mid-teens upside; online sales set for double-digits via Target.com and bulk strategies. Eco demand stays robust beyond bags, with PLA affordability and regulations boosting adoption, while California slows but Karat grabs share from exiting rivals. Guidance bakes in 10-15% ocean freight hikes. Optimism intact; investors watch pipeline conversions.
Key Stats
Market Cap
469.52MP/E (TTM)
15.57Basic EPS (TTM)
1.50Dividend Yield
0.08%Recent Filings
10-K
FY2025 results
Karat Packaging drove FY2025 net sales to a record $467.7M, up 10.7% y/y, with volume up 11.2% and paper bags surging to $13.7M from $7.9M on a key chain contract starting H2. Gross margin slipped to 36.8% from 38.9% as duties nearly doubled to $29.3M, yet net income climbed 6.0% to $32.7M on operating leverage. Q4 momentum shone in chains/distributors at $370.6M (64.7% growth since 2020) and eco-products at 34.1% mix, while manufacturing dipped to 9% of sales in an asset-light pivot. Strong cash flow funded $36.1M dividends and $3M buybacks under a $15M program ($12M remains). Supply chain disruptions risk quarterly momentum.
8-K
Q4 sales hit record $115.6M
Karat Packaging posted record Q4 net sales of $115.6 million, up 13.7% from $101.6 million, driven by volume and positive pricing. Tariffs crushed gross margin to 34.0% from 39.2%, yet net income climbed 22.8% to $7.2 million. Supply chain flexed: 46% from Taiwan. Q1 2026 sales to rise 8-10%. Repurchased $3.0 million in stock.
8-K
Quarterly dividend declared
10-Q
Q3 FY2025 results
Karat Packaging drove Q3 net sales to $124.5M, up 10.4% y/y from $112.8M, fueled by chains and distributors while online held steady; gross profit dipped to $42.9M yet margins held at 34.5% amid tariff-hit import costs. Operating income fell 24% y/y to $8.6M on higher shipping and rent, but diluted EPS landed at $0.36, matching 20.2M shares. Cash dropped to $24.0M with $19.9M short-term investments, $44.1M debt (mostly Global Wells term loans maturing 2026-27), and $10.7M line availability despite covenants. Free cash flow not disclosed in the 10-Q. Supply chain disruptions shadow growth.
IPO
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