greeksoup/ stock research

Karat Packaging (KRT) Q3 FY2026 earnings: revenue $135 million, up 8.2% on the year

Karat Packaging Inc. (KRT) reported revenue of $135 million for Q3 FY2026, the quarter ended 30 September 2026, up 8.2% on the same quarter a year earlier. Net income was $4 million, down 40.0% on the year, and diluted earnings per share $0.22. The figures are the company's own, from the 10-Q it filed with the SEC on 6 November 2026.

Revenue
$135 million
+8.2% on the year · -1.1% on the quarter
Q4 FY2024Q3 FY2026
Operating margin
3.6%
6.9% a year earlier
Q4 FY2024Q3 FY2026
Net income
$4 million
-40.0% on the year · -85.0% on the quarter
Q4 FY2024Q3 FY2026
Diluted EPS
$0.22
-38.9% on the year · -84.9% on the quarter
Q4 FY2024Q3 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 2 new.

  • Net sales rose 8.2 percent: Net sales were $134.7 million, up from $124.5 million. Management attributed the increase mainly to $10.7 million of volume growth and product mix, plus a $0.4 million pricing comparison, less $0.8 million lower shipping revenue.
  • Adjusted EBITDA fell to $8.9 million: Adjusted EBITDA was $8.9 million, a 6.6 percent margin, against $13.1 million and 10.5 percent. Adjusted diluted EPS was $0.24, against $0.37 a year earlier.
  • Online sales grew nearly 38 percent: Online net sales were $26.9 million, up from $19.5 million. Nine-month online sales reached $72.2 million, against $58.2 million.
Read the earnings call summary

Income statement (profit and loss)

$ millionQ3 FY2026Q2 FY2026Q3 FY2025On the quarterOn the yearLast 8 quarters
Revenue135136125-1.1%+8.2%
Cost of revenue89.659.181.6+51.5%+9.8%
Gross profit45.177.242.9-41.5%+5.2%
Gross margin33.5%56.6%34.5%
Operating income4.937.68.6-87.0%-43.2%
Operating margin3.6%27.6%6.9%
Interest expense0.40.40.5-1.2%-22.1%
Pre-tax income5.939.09.9-85.0%-40.9%
Income tax1.19.42.3-88.0%-51.2%
Effective tax rate19.2%24.0%23.3%
Net income4.429.37.3-85.0%-40.0%
Net margin3.3%21.5%5.9%
Diluted EPS$0.22$1.46$0.36-84.9%-38.9%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionQ3 FY2026Q2 FY2026Q3 FY2025On the quarterOn the yearLast 8 quarters
Operating cash flow9.733.21.0-70.8%+885.7%
Capital expenditure0.10.10.2+1.8%-76.8%
Free cash flow9.633.10.7-70.9%+1,207.5%
Free cash flow margin7.1%24.3%0.6%
Cash from investing5.2-11.44.3+21.8%
Cash from financing-19.9-12.1-11.8
Depreciation and amortisation2.52.72.8-7.0%-8.4%
Share-based compensation0.70.60.3+9.9%+158.9%
Buybacks-0.0n/a0.0
Dividends paid9.49.09.0+4.7%+3.9%
Dividend per share$0.47$0.45$0.45+4.4%+4.4%
Diluted shares, weighted20m20m20m+0.5%-0.0%
Shares outstanding at period end20m20m20m+0.4%-0.5%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ millionQ3 FY2026Q2 FY2026Q3 FY2025On the quarterOn the yearLast 8 quarters
Shareholders' equity163166154-1.9%+5.7%
Non-controlling interest8.17.87.1+4.4%+14.7%
Debt23.134.644.2-33.3%-47.8%
Operating lease liabilities24.525.835.3-5.1%-30.4%
Other liabilities87.482.061.8+6.5%+41.5%
Total liabilities and equity306317303-3.3%+1.2%
Fixed assets75.377.484.2-2.7%-10.5%
Goodwill3.53.53.50.0%0.0%
Intangible assets0.30.30.3-2.7%-9.6%
Investments10.015.719.9-36.5%-49.9%
Cash and equivalents33.438.424.0-12.9%+39.2%
Receivables44.949.237.9-8.7%+18.6%
Inventory96.889.184.1+8.7%+15.0%
Other assets42.243.248.9-2.2%-13.7%
Total assets306317303-3.3%+1.2%

Questions

What was Karat Packaging's revenue in Q3 FY2026?

Karat Packaging (KRT) reported revenue of $135 million for Q3 FY2026, the quarter ended 30 September 2026, up 8.2% on the same quarter a year earlier.

How much did Karat Packaging earn in Q3 FY2026?

Net income for Q3 FY2026 was $4 million, down 40.0% on the year, and diluted earnings per share $0.22.

When did Karat Packaging report Q3 FY2026 results?

Karat Packaging filed its 10-Q for the quarter ended 30 September 2026 with the SEC on 6 November 2026.

Quarterly results, the last 20 quarters

Q4 FY2021 *Q1 FY2022Q2 FY2022 †Q3 FY2022Q4 FY2022 *Q1 FY2023Q2 FY2023Q3 FY2023Q4 FY2023 *Q1 FY2024Q2 FY2024Q3 FY2024Q4 FY2024 *Q1 FY2025Q2 FY2025Q3 FY2025Q4 FY2025 *Q1 FY2026Q2 FY2026Q3 FY2026
Revenue91.310511511092.795.810910695.695.6113113102104124125116117136135
Cost of revenue63.071.180.975.863.057.766.966.661.558.069.269.361.862.974.981.676.375.459.189.6
Gross profit28.334.334.034.229.738.141.938.934.137.643.443.539.840.849.142.939.341.577.245.1
Gross margin31%33%30%31%32%40%38%37%36%39%39%39%39%39%40%34%34%36%57%33%
Operating income7.19.57.87.94.812.713.311.44.68.111.111.37.37.816.68.68.58.537.64.9
Operating margin8%9%7%7%5%13%12%11%5%8%10%10%7%8%13%7%7%7%28%4%
Interest expensen/a0.50.60.50.40.40.60.50.50.50.50.50.50.50.50.50.50.40.40.4
Pre-tax income7.110.68.98.14.912.014.012.04.98.512.111.98.38.914.59.99.79.439.05.9
Tax rate15%25%20%24%7%23%24%24%15%23%24%22%30%24%24%23%26%24%24%19%
Net income5.66.76.36.14.59.010.59.13.96.29.19.15.66.410.97.36.86.729.34.4
Net margin6%6%6%6%5%9%10%9%4%6%8%8%6%6%9%6%6%6%22%3%
Diluted EPS$0.31$0.34$0.32$0.31$0.23$0.45$0.53$0.45$0.20$0.31$0.45$0.45$0.28$0.32$0.54$0.36$0.34$0.34$1.46$0.22
Operating cash flow9.9-11.43.720.217.014.216.912.010.36.613.719.58.27.79.81.015.47.233.29.7
Capital expenditure0.20.80.80.40.71.00.81.1n/a0.20.30.30.20.10.20.20.20.60.10.1
Free cash flow9.7-12.32.919.916.313.116.111.0n/a6.413.419.28.07.69.60.715.16.633.19.6
Buybacksn/an/an/an/an/an/an/an/an/an/an/an/an/an/an/a0.0n/an/an/a-0.0
Dividends paid0.0n/an/a0.0n/a0.07.010.04.06.07.010.08.09.09.09.09.09.09.09.4
Shares outstanding20m20m20m20m20m20m20m20m20m20m20m20m20m20m20m20m20m20m20m20m
Filing10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q
Each quarter as filed, linked to its filing.
Read more* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2026, filed 6 November 2026: the filing.