Filing Flows › Karat Packaging (KRT) › Q1 2025
Karat Packaging (KRT) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 9, 2025
Karat Packaging (KRT) reported revenue of $104M for the first quarter 2025 (Q1 2025), +8% from a year earlier and +2% from the quarter before. Operating margin was 7.5%, net earnings $6.4M (6.2% of revenue).
Karat Packaging, Q1 2025: revenue $104M (+8% year over year), operating margin 7.5%, net earnings $6.4M, operating cash flow $7.7M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $104M | +2% | +8% |
| Gross profit | $40.8M | +2% | +8% |
| Operating profit | $7.8M | +7% | -3% |
| Net earnings | $6.4M | +14% | +4% |
| Operating cash flow | $7.7M | -6% | +18% |
| Free cash flow | $6.6M | — | +18% |
What changed
Revenue was $103.6M in Q1 2025, up 8% year over year and up 2% from the previous quarter. Chains and distributors was the largest line at 77% of revenue. Chains and distributors added $5.3M year over year (up 7%), 66% of the total change. Retail declined 3%.
Gross margin was 39.3%, unchanged from a year earlier. Operating profit was $7.8M, a 7.5% margin (down 0.9 points year over year). Operating profit fell $256K even though revenue rose $8.0M versus a year earlier, so costs grew faster than sales. Operating expenses grew 12% against revenue growth of 8%. The fastest-growing cost line was Sales & marketing (+34%). Net earnings were $6.4M, up 4% year over year. The effective tax rate was 23.7%.
Operating cash flow was $7.7M (up 18% year over year), 113% of net income including minority interests. Non-cash charges added back $2.7M of depreciation and amortization and $346K of share-based compensation. Working capital and other items used $2.1M. After deposits paid for property and equipment ($1.0M) and purchase of property and equipment ($107K), free cash flow as the company reports it was $6.6M.
Questions
What was Karat Packaging's revenue in the first quarter 2025?
Karat Packaging (KRT) reported revenue of $104M for the first quarter 2025 (Q1 2025), +8% from a year earlier and +2% from the quarter before.
Was Karat Packaging profitable in the first quarter 2025?
Operating profit was $7.8M (7.5% of revenue) and net earnings $6.4M.
Source: Karat Packaging 10-Q on SEC EDGAR.