Filing Flows › Karat Packaging (KRT) › Q3 2026 › vs Q2 2026
Karat Packaging (KRT) Q3 2026 vs Q2 2026 (quarter over quarter)
Karat Packaging's revenue fell $1.6M (-1%) from $136M in Q2 2026 to $135M in Q3 2026. The biggest changes: Chains and distributors −$2.6M (-3%); Online +$1.1M (+4%); Retail +$9K (+0.2%). Gross margin 33.5% against 56.6% (-23.1 pts).
Karat Packaging, Q3 2026: revenue $135M (+8% year over year), operating margin 3.6%, net earnings $4.4M, operating cash flow $9.7M. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Gross margin | 33.5% | 56.6% | -23.1 pts |
| Operating margin | 3.6% | 27.6% | -24.0 pts |
| Net margin | 3.3% | 21.5% | -18.3 pts |
| Free cash flow margin | 7.1% | 24.3% | -17.1 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Chains and distributors | $103M | $106M | −$2.6M | -3% |
| Online | $26.9M | $25.8M | $1.1M | +4% |
| Retail | $4.6M | $4.5M | $9K | +0.2% |
| Revenue | $135M | $136M | −$1.6M | -1% |
| Gross profit | $45.1M | $77.2M | −$32.0M | -42% |
| Cost of revenue | $89.6M | $59.1M | $30.5M | +52% |
| Other income, net | $979K | $1.4M | −$445K | -31% |
| Operating profit | $4.9M | $37.6M | −$32.7M | -87% |
| Operating expenses | $40.3M | $39.6M | $701K | +2% |
| Pre-tax earnings | $5.9M | $39.0M | −$33.2M | -85% |
| Sales & marketing | $18.0M | $17.5M | $457K | +3% |
| General & admin | $22.3M | $22.0M | $356K | +2% |
| Net earnings | $4.4M | $29.3M | −$24.9M | -85% |
| Minority interests | $331K | $318K | $13K | +4% |
| Income tax | $1.1M | $9.4M | −$8.3M | -88% |
| Depreciation & amortization | $2.5M | $2.7M | −$192K | -7% |
| Share-based compensation | $655K | $596K | $59K | +10% |
| Working capital & other | $2.1M | $500K | $1.6M | +319% |
| Operating cash flow | $9.7M | $33.2M | −$23.5M | -71% |
| Free cash flow (OCF − capex) | $9.6M | $33.1M | −$23.5M | -71% |
| Capital expenditures | $57K | $56K | $1K | +2% |
Questions
How much did Karat Packaging's revenue grow quarter over quarter in Q3 2026?
Karat Packaging's revenue fell $1.6M (-1%) from $136M in Q2 2026 to $135M in Q3 2026.
What drove Karat Packaging's revenue change in Q3 2026?
Chains and distributors −$2.6M (-3%); Online +$1.1M (+4%); Retail +$9K (+0.2%).