Filing Flows › Karat Packaging (KRT) › Q3 2026 › vs Q3 2025
Karat Packaging (KRT) Q3 2026 vs Q3 2025 (year over year)
Karat Packaging's revenue rose $10.2M (+8%) from $125M in Q3 2025 to $135M in Q3 2026. The biggest changes: Online +$7.4M (+38%); Chains and distributors +$3.9M (+4%); Retail −$1.0M (-18%). Gross margin 33.5% against 34.5% (-1.0 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 Q3 2025, the increases inside each band.
Margins
| Q3 2026 | Q3 2025 | Change | |
|---|---|---|---|
| Gross margin | 33.5% | 34.5% | -1.0 pts |
| Operating margin | 3.6% | 6.9% | -3.3 pts |
| Net margin | 3.3% | 5.9% | -2.6 pts |
| Free cash flow margin | 7.1% | 0.6% | +6.6 pts |
Every line
| Line | Q3 2026 | Q3 2025 | Change | % |
|---|---|---|---|---|
| Chains and distributors | $103M | $99.4M | $3.9M | +4% |
| Online | $26.9M | $19.5M | $7.4M | +38% |
| Retail | $4.6M | $5.6M | −$1.0M | -18% |
| Revenue | $135M | $125M | $10.2M | +8% |
| Gross profit | $45.1M | $42.9M | $2.2M | +5% |
| Cost of revenue | $89.6M | $81.6M | $8.0M | +10% |
| Other income, net | $979K | $1.3M | −$355K | -27% |
| Operating profit | $4.9M | $8.6M | −$3.7M | -43% |
| Operating expenses | $40.3M | $34.3M | $5.9M | +17% |
| Pre-tax earnings | $5.9M | $9.9M | −$4.1M | -41% |
| Net earnings | $4.4M | $7.3M | −$2.9M | -40% |
| Minority interests | $331K | $278K | $53K | +19% |
| Income tax | $1.1M | $2.3M | −$1.2M | -51% |
| Depreciation & amortization | $2.5M | $2.8M | −$231K | -8% |
| Share-based compensation | $655K | $253K | $402K | +159% |
| Working capital & other | $2.1M | −$9.4M | $11.5M | — |
| Operating cash flow | $9.7M | $982K | $8.7M | +886% |
| Free cash flow (OCF − capex) | $9.6M | $736K | $8.9M | 13× |
| Capital expenditures | $57K | $246K | −$189K | -77% |
Questions
How much did Karat Packaging's revenue grow year over year in Q3 2026?
Karat Packaging's revenue rose $10.2M (+8%) from $125M in Q3 2025 to $135M in Q3 2026.
What drove Karat Packaging's revenue change in Q3 2026?
Online +$7.4M (+38%); Chains and distributors +$3.9M (+4%); Retail −$1.0M (-18%).