Filing Flows › Karat Packaging (KRT) › Q2 2025
Karat Packaging (KRT) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 8, 2025
Karat Packaging (KRT) reported revenue of $124M for the second quarter 2025 (Q2 2025), +10% from a year earlier and +20% from the quarter before. Operating margin was 13.3%, net earnings $10.9M (8.8% of revenue).
Karat Packaging, Q2 2025: revenue $124M (+10% year over year), operating margin 13.3%, net earnings $10.9M, operating cash flow $9.8M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $124M | +20% | +10% |
| Gross profit | $49.1M | +20% | +13% |
| Operating profit | $16.6M | +112% | +49% |
| Net earnings | $10.9M | +71% | +20% |
| Operating cash flow | $9.8M | +26% | -29% |
| Free cash flow | $9.6M | +26% | -29% |
What changed
Revenue was $124.0M in Q2 2025, up 10% year over year and up 20% from the previous quarter. Chains and distributors * was the largest line at 78% of revenue. Chains and distributors * added $9.9M year over year (up 11%), 87% of the total change.
Gross margin was 39.6%, up 1.1 points from a year earlier. Operating profit was $16.6M, a 13.3% margin (up 3.5 points year over year). Of the extra revenue versus a year earlier, 48% reached operating profit, above the 10% margin then. Operating expenses grew 1% against revenue growth of 10%. Net earnings were $10.9M, up 20% year over year. The effective tax rate was 23.8%.
Operating cash flow was $9.8M (down 29% year over year), 88% of net earnings. Non-cash charges added back $2.7M of depreciation and amortization and $445K of share-based compensation. Working capital and other items used $4.4M. Capital expenditures of $167K left free cash flow of $9.6M.
Questions
What was Karat Packaging's revenue in the second quarter 2025?
Karat Packaging (KRT) reported revenue of $124M for the second quarter 2025 (Q2 2025), +10% from a year earlier and +20% from the quarter before.
Was Karat Packaging profitable in the second quarter 2025?
Operating profit was $16.6M (13.3% of revenue) and net earnings $10.9M.
Source: Karat Packaging 10-Q on SEC EDGAR.