NASDAQ$KRT

Karat Packaging Inc · Q2 2025 earnings

Q2 2025 earnings · · After market close · Investor relations

Briefing

Karat Packaging Inc reported record quarterly net sales and net income for Q2 2025.

Net sales rose 10.1% year-over-year to $124.0 million driven by volume growth. Gross margin expanded 110 basis points to 39.6% and operating income increased 48.9% to $16.6 million. Net income grew 19.8% to $11.1 million with net income margin improving to 8.9%.

  • Net sales reached a record $124.0 million, up 10.1% YoY on higher volumes and favorable mix.
  • Gross margin improved 110 bps to 39.6% due to better vendor pricing and product mix.
  • Operating income jumped 48.9% to $16.6 million while net income rose 19.8% to $11.1 million.
  • Adjusted EBITDA increased 12.8% to $17.7 million with margin expanding 40 bps to 14.3%.

Headline financials

Total Revenue

$124M

Previous: $113M+10.1%
EPS (adj)

$0.55

Previous: $0.49+12.2%
Capital Expenditures

-$274K

Previous: -$415K+34.0%
Net Income

$10.9M

Previous: $9.1M+20.2%
Operating Income

$16.6M

Previous: $11.1M+48.9%
Gross Profit

$49.1M

Previous: $43.4M+13.1%
Cash & Equivalents

$30.5M

Previous: $19.3M+58.2%

Revenue & EPS history

Karat Packaging · Revenue · Quarterly

$124M

Q2 2025+10.1%vs Q2 2024
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Karat Packaging · $124M total across 3 segments · Q2 2025

  • Chains and distributors
    $97.2M
  • Online
    $20.9M
  • Retail
    $5.94M

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports

Historical avg

-0.7%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+0.8%

Avg return

30 days after

42%

10 / 24 earnings

Positive

+20.7%

Q4 2025

Best reaction

-18.6%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2025
Q1 2026-7.5%-10.4%-6.3%
Q4 2025+20.7%+24.4%+33.5%
Q3 2025-6.1%-8.5%-8.5%
Q1 2025+10.9%+10.0%+14.2%
Q4 2024-2.1%+0.8%-14.7%
Q3 2024-0.1%+3.5%+5.3%
Q2 2024-14.6%-7.8%-13.2%
Q1 2024-9.0%-5.2%-7.7%
Q4 2023-11.8%-7.2%-5.7%
Q3 2023-18.6%-9.2%-5.5%
Q2 2023+3.8%+21.6%+0.8%
Q1 2023+3.6%+6.2%+12.5%
Q4 2022-1.6%-6.6%-6.2%
Q3 2022-2.8%-7.6%-5.8%
Q2 2022+1.2%+0.1%+1.2%
Q1 2022+11.6%+16.7%+10.0%
Q4 2021+13.3%+26.2%+24.5%
Q3 2020-10.6%-10.8%-9.7%
Q3 2021-7.5%-7.8%-7.6%
Q2 2020-3.7%-6.5%-6.1%
Q2 2021-2.6%-7.6%-6.2%
Q4 2020+6.1%+3.7%+6.2%
Q1 2020+6.1%+3.7%+6.2%
Q1 2021+3.5%+8.2%+8.2%
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q2 2018
Q1 2018
Q4 2017

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