Karat Packaging (KRT) Releases Q4 2025 Earnings: Revenue and EPS Beat; Operating Cash Flow Weakens

Karat Packaging Inc. (KRT) reported fourth-quarter 2025 results showing top-line growth alongside mixed margin and cash-flow dynamics.

Key financials:

Revenue: $115.6 million (up 13.7% year-over-year), slightly above the consensus of $115.1 million.

Gross profit: $39.3 million (down 1.2% YoY) while cost of goods sold rose to $76.3 million (up 23.4% YoY).

Operating profit: $8.5 million (up 16.0% YoY).

Net income attributable to common shareholders: $6.8 million (up 21.3% YoY).

Diluted earnings per share: $0.34 (up 21.4% YoY), above the estimate of $0.2778.

Balance sheet and cash-flow highlights:

Cash from operating activities: $982,000 (down 88.1% YoY).

Purchases of property, plant and equipment: $2.5 million (up 229.1% YoY).

Cash and cash equivalents: $24.0 million (down 23.9% YoY).

Total liabilities: $141.3 million (up 6.8% YoY).

In summary, Karat Packaging (KRT) delivered revenue and EPS above expectations while operating and net income improved year-over-year. Rising cost of sales pressured gross profit, and operating cash flow weakened even as capital spending increased.

Note: This financials data is sourced from a third-party provider and has not been independently verified by Quiver.

Karat Packaging Inc. Insider Trading Activity

Karat Packaging Inc. insiders have traded $KRT stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $KRT stock by insiders over the last 6 months:

JIAN GUO (Chief Financial Officer) purchased 1,361 shares for an estimated $30,091

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

Karat Packaging Inc. Hedge Fund Activity

We have seen 73 institutional investors add shares of Karat Packaging Inc. stock to their portfolio, and 72 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

PERRITT CAPITAL MANAGEMENT INC removed 271,600 shares (-96.4%) from their portfolio in Q3 2025, for an estimated $6,847,036
WASATCH ADVISORS LP removed 259,186 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $5,849,828
BANK OF MONTREAL /CAN/ added 231,107 shares (+inf%) to their portfolio in Q4 2025, for an estimated $5,216,084
ALYESKA INVESTMENT GROUP, L.P. removed 118,899 shares (-100.0%) from their portfolio in Q3 2025, for an estimated $2,997,443
POLAR ASSET MANAGEMENT PARTNERS INC. added 114,204 shares (+57.1%) to their portfolio in Q4 2025, for an estimated $2,577,584
CWA ASSET MANAGEMENT GROUP, LLC added 106,265 shares (+inf%) to their portfolio in Q4 2025, for an estimated $2,398,401
MARSHALL WACE, LLP removed 75,206 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $1,697,399

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Karat Packaging Inc. Analyst Ratings

Wall Street analysts have issued reports on $KRT in the last several months. We have seen 0 firms issue buy ratings on the stock, and 1 firms issue sell ratings.

Here are some recent analyst ratings:

B of A Securities issued a "Underperform" rating on 11/17/2025

To track analyst ratings and price targets for Karat Packaging Inc., check out Quiver Quantitative's $KRT forecast page.