10-Q · May 8, 2026
Karat Packaging reported strong Q1 2026 results with revenue of $116.9 million, exceeding estimates and reflecting a 12.9% increase year-over-year. Despite a decline in gross margin to 35.5% due to heightened import…
Earnings analysis · 10-Q
KRT earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Karat Packaging delivered a strong Q2 2026 revenue result of $136.302 million, up 16.5% sequentially and 9.9% year over year, and above consensus. EPS improved to $0.48 from $0.34 in Q1 but declined from $0.54 a year…
Read full summary
Karat Packaging delivered a strong Q2 2026 revenue result of $136.302 million, up 16.5% sequentially and 9.9% year over year, and above consensus. EPS improved to $0.48 from $0.34 in Q1 but declined from $0.54 a year earlier and missed estimates by $0.03. The provided filing text contains no new risk-factor changes or explicit numeric guidance, while continued repurchases and the EPS miss temper the positive revenue trend.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.48
What stood out
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Strong Revenue Growth and Beat
Revenue was $136.302 million, up approximately 16.5% from $117 million in Q1 2026 and 9.9% from $124 million in Q2 2025. Revenue exceeded the $135.039 million consensus estimate by approximately 0.9%.
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EPS Rebounded Sequentially, Missed Estimates
Diluted EPS was $0.48, up from $0.34 in Q1 2026 but down from $0.54 in Q2 2025. EPS was $0.03 below the $0.51 consensus estimate, a 5.9% miss.
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Share Repurchases Continued
The company repurchased 73,510 shares during Q2 2026 at a weighted-average price of $27.11 per share in May and $26.76 per share in June, leaving approximately $10.022 million available under the repurchase program at June 30, 2026.
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Controls Remained Effective
Management concluded that disclosure controls and procedures were effective as of June 30, 2026, and reported no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter.
What to watch
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Earnings Miss and Year-Over-Year Decline
Diluted EPS of $0.48 was $0.03 below the $0.51 consensus estimate and 11.1% below $0.54 in the year-ago quarter, indicating earnings conversion lagged the strong revenue result.
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No New Risk-Factor Detail
The filing states that there were no material changes to the risk factors in the 2025 Form 10-K; however, it does not provide new quantified disclosure on previously identified margin or import-cost risks.
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Capital Allocation Could Constrain Liquidity
The company spent approximately $2.0 million on share repurchases during Q2 based on 73,510 shares and the disclosed May and June weighted-average prices, while approximately $10.022 million remained authorized; repurchases could reduce liquidity available for other uses.
Management's outlook
The provided 10-Q text does not include explicit numeric revenue or EPS guidance. Prior Q1 commentary had called for Q2 sales growth of 8%-10%; reported Q2 revenue growth was approximately 9.9% year over year.
Earlier filings 4
10-K · March 13, 2026
Karat Packaging outlines an asset-light, distribution-first strategy focused on e-commerce, vendor diversification and eco-friendly product expansion. The company reported a better-than-expected Q4 2025 (revenue…
10-Q · August 9, 2024
Karat Packaging reported Q2 net sales of $112,600,000, up $3,860,000 versus Q2 2023, while diluted EPS declined to $0.45. Gross margin remained roughly stable at ~38.6% but operating income fell to $11,115,000 and the…
10-Q · November 9, 2023
Karat Packaging reported Q3 net sales of $105,528,000 and diluted EPS of $0.45. Revenue declined versus Q3 2022 ($109,996,000) but gross profit, operating income, net income and operating cash flow meaningfully…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.