Filing Flows › Karat Packaging (KRT) › Q2 2026
Karat Packaging (KRT) Q2 2026 earnings results (second quarter 2026)
10-Q filed Aug 7, 2026
Karat Packaging (KRT) reported revenue of $136M for the second quarter 2026 (Q2 2026), +10% from a year earlier and +17% from the quarter before. Operating margin was 27.6%, net earnings $29.3M (21.5% of revenue).
Karat Packaging, Q2 2026: revenue $136M (+10% year over year), operating margin 27.6%, net earnings $29.3M, operating cash flow $33.2M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $136M | +17% | +10% |
| Gross profit | $77.2M | +86% | +57% |
| Operating profit | $37.6M | +344% | +127% |
| Net earnings | $29.3M | +335% | +168% |
| Operating cash flow | $33.2M | +361% | +240% |
| Free cash flow | $33.1M | +400% | +245% |
What changed
Revenue was $136.3M in Q2 2026, up 10% year over year and up 17% from the previous quarter. Chains and distributors was the largest line at 78% of revenue. Chains and distributors added $8.8M year over year (up 9%), 71% of the total change. Retail declined 23%.
Gross margin was 56.6%, up 17.0 points from Q2 2025. Operating profit was $37.6M, a 27.6% margin (up 14.2 points year over year). Of the extra revenue versus Q2 2025, 171% reached operating profit, above the 13% margin then. Operating expenses grew 22% against revenue growth of 10%. Net earnings were $29.3M, up 168% year over year. The effective tax rate was 24.0%.
Operating cash flow was $33.2M (up 240% year over year), 112% of net earnings. Non-cash charges added back $2.7M of depreciation and amortization and $596K of share-based compensation. Capital expenditures of $56K left free cash flow of $33.1M.
Questions
What was Karat Packaging's revenue in the second quarter 2026?
Karat Packaging (KRT) reported revenue of $136M for the second quarter 2026 (Q2 2026), +10% from a year earlier and +17% from the quarter before.
Was Karat Packaging profitable in the second quarter 2026?
Operating profit was $37.6M (27.6% of revenue) and net earnings $29.3M.
Source: Karat Packaging 10-Q on SEC EDGAR.