Karat Packaging Inc
karatpackaging.comWhat Do They Do?
Distributes and manufactures disposable foodservice products, including take-out packaging, bags and cups, for restaurant and supermarket chains, distributors and online buyers.
10-K for FY2025, filed Mar 13, 2026
How Do They Make Money?
Customers buy disposable foodservice products through chain and distributor, online, and retail channels; the company earns the sale when the products pass to the customer.
10-K for FY2025, filed Mar 13, 2026Revenue Recognition: The Company generates revenues from product sales to customers that include national and regional chains…View ↗
Chains and distributors revenue: National and regional chains revenue is derived from chain restaurants, supermarkets, and other businesses…View ↗
customer. For online sales on third-party e-commerce platforms, the Company is the principal in the three-party arrangement and control of…View ↗
Retail revenue: Retail revenue is derived primarily from regional and local restaurants, small mom-and-pop restaurants, coffee houses…View ↗
$467.7M
-
10-K for FY2025, filed Mar 13, 2026
$467.7M ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Chains and distributors *
Sold outright
10-K for FY2025, filed Mar 13, 2026 |
79%
FY2022: 23%
|
Chains and distributors *, FY2025
$370.6M Sources
|
Sold outright |
|
Online
Sold outright
10-K for FY2025, filed Mar 13, 2026 |
16%
FY2022: 13%
|
Online, FY2025
$75.3M Sources
|
Sold outright |
|
Retail *
Sold outright
|
4.7%
FY2022: 7.4%
|
Retail *, FY2025
$21.9M Sources
|
Sold outright |
|
Logistics Services
|
1.0%
FY2022: 1.5%
|
Logistics Services, FY2025
$4.7M Sources
|
Who Are Their Customers?
National and regional chains often order through distribution partners, and distributors buy for resale; online customers order through the company store, app, and third-party marketplaces. Retail buyers include local restaurants, coffee houses, and bubble-tea shops.
10-K for FY2025, filed Mar 13, 2026Chains and distributors: National and regional chains customers are typically fast casual, fast food restaurants, and supermarket chains…View ↗
We are an omni-channel provider and have made significant investments in e-commerce, distribution network, technology, supply chain, and…View ↗
We have established a scaled and flexible distribution and logistics system, with distribution centers strategically located throughout the…View ↗
Do Revenues Turn Into Profits?
Yes. It kept 7 cents of every revenue dollar as net income in FY2025 and turned 7 cents into free cash flow.
How Are They Changing?
- Net income
-
Sources
10-Q for Q2 FY2026, filed Aug 7, 2026
$29.3MView ↗
- ▲ +168%
- vs $10.9M in Q2 FY2025
-
Aug 6, 2026
Gave sales and margin guidance for the next quarter and full year
It expects low-double-digit sales growth in both periods, gross margin of 35 to 37 percent and adjusted EBITDA margin of 9 to 11 percent in the quarter.
Sources
8-K, filed Aug 6, 2026
Net sales for the 2026 third quarter expected to increase by low double-digits from the prior-year quarter. Gross margin for the 2026 third…View ↗
-
Mar 17, 2026
Replaced PwC with BDO as independent auditor
BDO was engaged for fiscal 2026 after PwC was dismissed; PwC’s 2025 and 2024 reports were not qualified or modified, and no accounting disagreements were reported.
Sources
8-K, filed Mar 17, 2026
During the Company’s fiscal years ended December 31, 2025 and 2024, and the subsequent interim period through March 13, 2026, there were…View ↗
Growing. Revenue grew 28% in 4 years, from $364.2M in FY2021 to $467.7M in FY2025, about 6% a year.
From domestic production to imports
The older report described select U.S. manufacturing as a complement to distribution. The latest describes scaling back domestic production and increasing imports, while keeping some U.S. manufacturing capability.
10-K for FY2022, filed Mar 16, 2023 10-K for FY2025, filed Mar 13, 2026
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