NASDAQ$KRT

Karat Packaging Inc · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

Karat Packaging reported Q3 2025 net sales of $124.5M with net income of $7.6M and diluted EPS of $0.36.

Third-quarter net sales increased to $124.5 million from $112.8 million a year ago on higher foodservice packaging demand. Net income was $7.6 million and diluted EPS was $0.36. Operating income was $8.6 million for the quarter.

  • Q3 net sales $124.5M (+10% YoY).
  • Net income $7.6M; diluted EPS $0.36.
  • Nine-month net sales $352.1M; net income $25.5M.
  • Gross margin supported by product mix and volume.

Headline financials

Total Revenue

$125M

Previous: $113M+10.4%
EPS (adj)

$0.36

Previous: $0.45-20.0%
Capital Expenditures

-$520K

Previous: -$718K+27.6%
Free Cash Flow

$6.81M

Previous: $8.38M-18.8%
Net Income

$7.33M

Previous: $9.09M-19.5%
Operating Income

$8.57M

Previous: $11.3M-23.9%
Gross Profit

$42.9M

Previous: $43.5M-1.3%

Revenue & EPS history

Karat Packaging · Revenue · Quarterly

$125M

Q3 2025+10.4%vs Q3 2024
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Karat Packaging · $82.1M total across 3 segments · Q3 2023

  • Chains and distributors
    $61M-4.0%
  • Online
    $14.3M+1.6%
  • Retail
    $6.81M-19.3%

Forward guidance

The filing discusses Karat Packaging's outlook for upcoming periods, including capital allocation, operating priorities, and market risks disclosed in the quarterly report.

Tailwinds

  • Karat Packaging cites operational execution and demand trends supporting the outlook.
  • Balance sheet and capital actions aim to fund growth and shareholder returns.

Headwinds

  • Macro, pricing, and input-cost volatility could pressure margins.
  • Segment mix and one-time items may affect quarter-to-quarter comparability.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

-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
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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