Filing Flows › Karat Packaging (KRT) › Q3 2025
Karat Packaging (KRT) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 7, 2025
Karat Packaging (KRT) reported revenue of $125M for the third quarter 2025 (Q3 2025), +10% from a year earlier and +0.4% from the quarter before. Operating margin was 6.9%, net earnings $7.3M (5.9% of revenue).
Karat Packaging, Q3 2025: revenue $125M (+10% year over year), operating margin 6.9%, net earnings $7.3M, operating cash flow $982K. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $125M | +0.4% | +10% |
| Gross profit | $42.9M | -13% | -1% |
| Operating profit | $8.6M | -48% | -24% |
| Net earnings | $7.3M | -33% | -19% |
| Operating cash flow | $982K | -90% | -95% |
| Free cash flow | $736K | -92% | -96% |
What changed
Revenue was $124.5M in Q3 2025, up 10% year over year and roughly flat from the previous quarter. Chains and distributors * was the largest line at 80% of revenue. Chains and distributors * added $12.0M year over year (up 14%), 102% of the total change. Retail * declined 13%.
Gross margin was 34.5%, down 4.1 points from a year earlier. Operating profit was $8.6M, a 6.9% margin (down 3.1 points year over year). Operating profit fell $2.7M even though revenue rose $11.7M versus a year earlier, so costs grew faster than sales. Operating expenses grew 7% against revenue growth of 10%. Net earnings were $7.3M, down 19% year over year. The effective tax rate was 23.3%.
Operating cash flow was $1.0M (down 95% year over year), 13% of net income including minority interests. Non-cash charges added back $2.8M of depreciation and amortization and $253K of share-based compensation. Working capital and other items used $9.6M. Capital expenditures of $246K left free cash flow of $736K.
Questions
What was Karat Packaging's revenue in the third quarter 2025?
Karat Packaging (KRT) reported revenue of $125M for the third quarter 2025 (Q3 2025), +10% from a year earlier and +0.4% from the quarter before.
Was Karat Packaging profitable in the third quarter 2025?
Operating profit was $8.6M (6.9% of revenue) and net earnings $7.3M.
Source: Karat Packaging 10-Q on SEC EDGAR.