Filing Flows › Karat Packaging (KRT) › Q3 2026
Karat Packaging (KRT) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 6, 2026
Karat Packaging (KRT) reported revenue of $135M for the third quarter 2026 (Q3 2026), +8% from a year earlier and -1% from the quarter before. Operating margin was 3.6%, net earnings $4.4M (3.3% of revenue).
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 follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $135M | -1% | +8% |
| Gross profit | $45.1M | -42% | +5% |
| Operating profit | $4.9M | -87% | -43% |
| Net earnings | $4.4M | -85% | -40% |
| Operating cash flow | $9.7M | -71% | +886% |
| Free cash flow | $9.6M | -71% | 13× |
What changed
Revenue was $134.7M in Q3 2026, up 8% year over year and down 1% from the previous quarter. Chains and distributors was the largest line at 77% of revenue. Online added $7.4M year over year (up 38%), 72% of the total change. Retail declined 18%.
Gross margin was 33.5%, down 1.0 points from Q3 2025. Operating profit was $4.9M, a 3.6% margin (down 3.3 points year over year). Operating profit fell $3.7M even though revenue rose $10.2M versus Q3 2025, so costs grew faster than sales. Operating expenses grew 17% against revenue growth of 8%. Net earnings were $4.4M, down 40% year over year. The effective tax rate was 19.2%.
Operating cash flow was $9.7M (up 886% year over year), 205% of net income including minority interests. Non-cash charges added back $2.5M of depreciation and amortization and $655K of share-based compensation. Working capital and other items added $1.8M. Capital expenditures of $57K left free cash flow of $9.6M.
Questions
What was Karat Packaging's revenue in the third quarter 2026?
Karat Packaging (KRT) reported revenue of $135M for the third quarter 2026 (Q3 2026), +8% from a year earlier and -1% from the quarter before.
Was Karat Packaging profitable in the third quarter 2026?
Operating profit was $4.9M (3.6% of revenue) and net earnings $4.4M.
Source: Karat Packaging 10-Q on SEC EDGAR.