Filing Flows › Karat Packaging (KRT) › Q4 2025
Karat Packaging (KRT) Q4 2025 earnings results (fourth quarter 2025)
10-K filed Mar 13, 2026
Karat Packaging (KRT) reported revenue of $116M for the fourth quarter 2025 (Q4 2025), +14% from a year earlier and -7% from the quarter before. Operating margin was 7.3%, net earnings $6.8M (5.9% of revenue).
Karat Packaging, Q4 2025: revenue $116M (+14% year over year), operating margin 7.3%, net earnings $6.8M, operating cash flow $15.4M. The chart follows the revenue to costs, profit and cash.
| Q4 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $116M | -7% | +14% |
| Gross profit | $39.3M | -8% | -1% |
| Operating profit | $8.5M | -1% | +16% |
| Net earnings | $6.8M | -7% | +21% |
| Operating cash flow | $15.4M | 16× | +86% |
| Free cash flow | $14.6M | — | +95% |
What changed
Revenue was $115.6M in Q4 2025, up 14% year over year and down 7% from the previous quarter.
Gross margin was 34.0%, down 5.1 points from a year earlier. Operating profit was $8.5M, a 7.3% margin (up 0.1 points year over year). Of the extra revenue versus a year earlier, 8% reached operating profit, above the 7% margin then. Operating expenses fell 5% while revenue rose 14%. Net earnings were $6.8M, up 21% year over year. The effective tax rate was 25.6%.
Operating cash flow was $15.4M (up 86% year over year), 213% of net income including minority interests. Non-cash charges added back $2.8M of depreciation and amortization and $138K of share-based compensation. Working capital and other items added $5.3M. After deposits paid for property and equipment ($505K) and purchase of property and equipment ($236K), free cash flow as the company reports it was $14.6M.
Questions
What was Karat Packaging's revenue in the fourth quarter 2025?
Karat Packaging (KRT) reported revenue of $116M for the fourth quarter 2025 (Q4 2025), +14% from a year earlier and -7% from the quarter before.
Was Karat Packaging profitable in the fourth quarter 2025?
Operating profit was $8.5M (7.3% of revenue) and net earnings $6.8M.
Source: Karat Packaging 10-K on SEC EDGAR.