Filing Flows › Karat Packaging (KRT) › How it makes money
How Karat Packaging (KRT) makes money
Karat Packaging (KRT) made $135M of revenue in the third quarter 2026 (Q3 2026), +8% from a year earlier. Chains and distributors brought in $103M (77%); Online brought in $26.9M (20%); Retail brought in $4.6M (3%). Of every dollar of revenue, 33¢ was left as gross profit, 4¢ was left as operating profit, 3¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Chains and distributors | $103M | 76.7% | -3% | +4% |
| Online | $26.9M | 20.0% | +4% | +38% |
| Retail | $4.6M | 3.4% | +0.2% | -18% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $135M | 100.0% |
| Cost of revenue | $89.6M | 66.5% |
| Gross profit | $45.1M | 33.5% |
| Operating expenses | $40.3M | 29.9% |
| Operating profit | $4.9M | 3.6% |
| Income tax | $1.1M | 0.8% |
| Net earnings | $4.4M | 3.3% |
| Operating cash flow | $9.7M | 7.2% |
| Free cash flow | $9.6M | 7.1% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $135M | +8% |
| Q2 2026 | $136M | +10% |
| Q1 2026 | $117M | +13% |
| Q4 2025 | $116M | +14% |
| Q3 2025 | $125M | +10% |
| Q2 2025 | $124M | +10% |
| Q1 2025 | $104M | +8% |
From Karat Packaging's 10-Q filed Nov 6, 2026 (on EDGAR).
Questions
How does Karat Packaging make money?
Karat Packaging (KRT) made $135M of revenue in the third quarter 2026 (Q3 2026), +8% from a year earlier. Chains and distributors brought in $103M (77%); Online brought in $26.9M (20%); Retail brought in $4.6M (3%). Of every dollar of revenue, 33¢ was left as gross profit, 4¢ was left as operating profit, 3¢ was left as net earnings.
What is Karat Packaging's biggest business?
Chains and distributors: $103M in the third quarter 2026, 77% of revenue, +4% from a year earlier.
What is Karat Packaging's profit margin?
Net earnings were $4.4M, 3.3% of revenue, in the third quarter 2026; the operating margin was 3.6%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.