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Karat Packaging cash flow, quarter by quarter

Latest: Q3 2026 · from the cash-flow statements filed with the SEC

Free cash flow$9.6M in Q3 2026 · $64.5M over twelve months

Operating cash flow$9.7M
Capital spending−$57K
Free cash flow+$9.6M
Cash / net income2.0×

Analysis

In Q3 2026, Karat Packaging generated $9.7M of operating cash flow and spent $57K on capital projects, leaving free cash flow of $9.6M. That is $8.9M more than in Q3 2025 ($736K).

Over the twelve months to Sep 30, 2026, operating cash flow was $65.4M; the largest uses were dividends ($36.4M), net borrowing (+) / repaid (−) ($22.1M), buybacks ($5.0M); besides operations, cash came from other investing ($6.9M), shares issued ($1.2M); the cash balance rose by $9.4M.

Operating cash flow was $9.7M against net income of $4.7M — 2.0× profit, cash ran ahead of reported earnings. The largest differences: payables +$11.0M, inventory −$7.9M, income taxes payable −$5.7M.

Free cash flow

Karat Packaging: free cash flow by quarterKarat Packaging: free cash flow by quarter$8.0MQ4 2024$7.6MQ1 2025$9.6MQ2 2025$736KQ3 2025$15.1MQ4 2025$6.6MQ1 2026$33.1MQ2 2026$9.6MQ3 2026
Operating cash flow less capital spending.
Karat Packaging: operating cash flow against capital spendingKarat Packaging: operating cash flow against capital spendingOperating cash flowCapital spending$8.2M$216KQ4 2024$7.7M$107KQ1 2025$9.8M$167KQ2 2025$982K$246KQ3 2025$15.4M$236KQ4 2025$7.2M$565KQ1 2026$33.2M$56KQ2 2026$9.7M$57KQ3 2026
Latest (Q3 2026): Operating cash flow $9.7M, Capital spending $57K.

Capital allocation, year by year

Karat Packaging: where the cash came from (up) and went (down), by fiscal yearKarat Packaging: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingAcquisitionsBuybacksDividendsFY2021: Operating cash flow $8.7MFY2021: Net borrowing −$57.1MFY2021: Shares issued $67.7MFY2021: Capital spending −$4.2MFY2021: Acquisitions −$900K$76.4MFY2021FY2022: Operating cash flow $29.5MFY2022: Net borrowing −$21.6MFY2022: Shares issued $51KFY2022: Asset sales $77KFY2022: Capital spending −$2.7MFY2022: Dividends −$7.0M$29.6MFY2022FY2023: Operating cash flow $53.4MFY2023: Net borrowing −$1.0MFY2023: Shares issued $123KFY2023: Asset sales $841KFY2023: Capital spending −$2.8MFY2023: Dividends −$20.9M$54.3MFY2023FY2024: Operating cash flow $48.0MFY2024: Net borrowing −$1.1MFY2024: Shares issued $725KFY2024: Asset sales $134KFY2024: Capital spending −$934KFY2024: Dividends −$31.0M$48.8MFY2024FY2025: Operating cash flow $33.8MFY2025: Net borrowing −$12.7MFY2025: Shares issued $300KFY2025: Asset sales $1.5MFY2025: Capital spending −$756KFY2025: Buybacks −$3.0MFY2025: Dividends −$36.1M$35.6MFY2025
Over these 5 years operating cash flow totalled $173M; the largest uses were dividends ($95.0M) and net borrowing ($93.5M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$43.4M
Debtnone
Net cash$43.4M
Due within a year$1.2M

Karat Packaging funds itself: free cash flow was $64.5M over the last twelve months, with $43.4M of cash and investments and no debt on the balance sheet ($1.2M due within a year, 36.8× covered by cash).

Karat Packaging: debt maturities by year (FY2024)Karat Packaging: debt maturities by year (FY2024)$1.2MYear 1$20.8MYear 2$26.6MYear 3
Principal due in each year as disclosed in the annual report, against $43.4M of cash and investments now.

Where the cash came from and went

Karat Packaging: sources (+) and uses (−) of cash, Q3 2026Karat Packaging: sources (+) and uses (−) of cash, Q3 2026Net borrowing (+) / repaid (−)−$11.5MOperating cash flow$9.7MDividends−$9.4MOther investing$5.3MCash drawn (+) / kept (−)$5.0MShares issued$1.2MTaxes on employees’ shares−$71KCapital spending−$57KOther financing−$40KBuybacks$11KAsset & business sales$4K
Karat Packaging: sources (+) and uses (−) of cash, TTM to Q3 2026Karat Packaging: sources (+) and uses (−) of cash, TTM to Q3 2026Operating cash flow$65.4MDividends−$36.4MNet borrowing (+) / repaid (−)−$22.1MCash drawn (+) / kept (−)−$9.4MOther investing$6.9MBuybacks−$5.0MShares issued$1.2MCapital spending−$914KAsset & business sales$911KTaxes on employees’ shares−$410KOther financing−$211K

From profit to cash

Karat Packaging: net income to operating cash flow, Q3 2026Karat Packaging: net income to operating cash flow, Q3 2026Net income$4.7MDepreciation & amortization$2.5MStock-based pay$655KGains on disposals−$52KReceivables$4.3MInventory−$7.9MPayables$11.0MAccrued liabilities−$212KDeferred revenue−$41KPrepaid and other assets$359KOther liabilities$39KIncome taxes payable−$5.7MOperating cash flow$9.7M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.

Every quarter

QuarterOperating cash flowCapital spendingBuybacksDividendsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q3 2026$9.7M−$57K$11K−$9.4M−$11.5M$1.2M$5.0M$9.6M
Q2 2026$33.2M−$56K—−$9.0M−$816K—−$9.7M$33.1M
Q1 2026$7.2M−$565K—−$9.0M−$416K$30K$9.2M$6.6M
Q4 2025$15.4M−$236K−$3.0M−$9.0M−$9.3M$1K−$13.9M$15.1M
Q3 2025$982K−$246K—−$9.0M−$3.8M$104K$6.5M$736K
Q2 2025$9.8M−$167K—−$9.0M−$288K$195K$1.9M$9.6M
Q1 2025$7.7M−$107K—−$9.0M−$295K—−$889K$7.6M
Q4 2024$8.2M−$216K—−$8.0M−$288K$284K$7.3M$8.0M

Karat Packaging: income statement and cash flow

Karat Packaging, Q3 2026: revenue $135M (+8% year over year), operating margin 3.6%. The chart follows the revenue to costs, profit and cash.

Karat Packaging: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.