Karat Packaging Inc. Financials
This page shows Karat Packaging Inc. (KRT) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 5 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Karat Packaging Inc. has an operating margin of 8.9%, meaning the company retains $9 of operating profit per $100 of revenue. This results in a moderate score of 45/100, indicating healthy but not exceptional operating efficiency. This is down from 10.4% the prior year.
Karat Packaging Inc.'s revenue grew a modest 4.2% year-over-year to $422.6M. This slow but positive growth earns a score of 41/100.
Karat Packaging Inc. carries a low D/E ratio of 0.85, meaning only $0.85 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 80/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 3.47, Karat Packaging Inc. holds $3.47 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.
Karat Packaging Inc. has a free cash flow margin of 11.1%, earning a moderate score of 56/100. The company generates positive cash flow after capital investments, but with room for improvement.
Karat Packaging Inc. earns a strong 19.3% return on equity (ROE), meaning it generates $19 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 77/100. This is down from 21.1% the prior year.
Karat Packaging Inc. scores 4.98, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Karat Packaging Inc. passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Karat Packaging Inc. generates $1.60 in operating cash flow ($48.0M OCF vs $30.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Karat Packaging Inc. earns $17.8 in operating income for every $1 of interest expense ($37.8M vs $2.1M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Karat Packaging Inc. generated $422.6M in revenue in fiscal year 2024. This represents an increase of 4.2% from the prior year.
Karat Packaging Inc.'s EBITDA was $48.4M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 8.4% from the prior year.
Karat Packaging Inc. generated $47.0M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 6.9% from the prior year.
Karat Packaging Inc. reported $30.0M in net income in fiscal year 2024. This represents a decrease of 7.7% from the prior year.
Karat Packaging Inc. earned $1.49 per diluted share (EPS) in fiscal year 2024. This represents a decrease of 8.6% from the prior year.
Karat Packaging Inc. held $31.6M in cash against $0 in long-term debt as of fiscal year 2024.
Karat Packaging Inc. paid $1.55 per share in dividends in fiscal year 2024. This represents an increase of 47.6% from the prior year.
Karat Packaging Inc. had 20M shares outstanding in fiscal year 2024. This represents an increase of 0.4% from the prior year.
Karat Packaging Inc.'s gross margin was 38.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 1.1 percentage points from the prior year.
Karat Packaging Inc.'s operating margin was 8.9% in fiscal year 2024, reflecting core business profitability. This is down 1.4 percentage points from the prior year.
Karat Packaging Inc.'s net profit margin was 7.1% in fiscal year 2024, showing the share of revenue converted to profit. This is down 0.9 percentage points from the prior year.
Karat Packaging Inc.'s ROE was 19.3% in fiscal year 2024, measuring profit generated per dollar of shareholder equity. This is down 1.8 percentage points from the prior year.
Karat Packaging Inc. invested $934K in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents a decrease of 67.1% from the prior year.
KRT Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q4'23 | Q3'24 | Q2'24 | Q1'24 | Q4'22 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $124.5M+0.4% | $124.0M+19.6% | $103.6M+8.4% | $95.6M-9.4% | $105.5M-3.0% | $108.7M+13.5% | $95.8M+3.4% | $92.7M |
| Cost of Revenue | $81.6M+9.0% | $74.9M+19.1% | $62.9M+2.2% | $61.5M-7.7% | $66.6M-0.4% | $66.9M+16.0% | $57.7M-8.5% | $63.0M |
| Gross Profit | $42.9M-12.6% | $49.1M+20.5% | $40.8M+19.6% | $34.1M-12.5% | $38.9M-7.0% | $41.9M+9.7% | $38.1M+28.6% | $29.7M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $20.9M+9.5% | $19.1M+3.1% | $18.5M+39.9% | $13.3M-33.3% | $19.9M+15.6% | $17.2M+3.4% | $16.6M-3.4% | $17.2M |
| Operating Income | $8.6M-48.2% | $16.6M+111.6% | $7.8M+69.1% | $4.6M-59.4% | $11.4M-14.7% | $13.3M+4.8% | $12.7M+164.6% | $4.8M |
| Interest Expense | $539K+3.5% | $521K+2.4% | $509K-3.4% | $527K-1.7% | $536K-6.5% | $573K+40.8% | $407K-7.7% | $441K |
| Income Tax | $2.3M-33.4% | $3.5M+63.1% | $2.1M+179.4% | $759K-73.9% | $2.9M-12.6% | $3.3M+17.9% | $2.8M+698.3% | $353K |
| Net Income | $7.3M-33.0% | $10.9M+70.6% | $6.4M+64.4% | $3.9M-57.0% | $9.1M-13.7% | $10.5M+16.6% | $9.0M+98.3% | $4.5M |
| EPS (Diluted) | $0.36-33.3% | $0.54+68.8% | $0.32+60.0% | $0.20-55.6% | $0.45-15.1% | $0.53+17.8% | $0.45+104.5% | $0.22 |
KRT Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q4'23 | Q3'24 | Q2'24 | Q1'24 | Q4'22 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $302.8M-5.6% | $321.0M+2.8% | $312.2M+13.0% | $276.4M-1.3% | $280.0M-2.4% | $286.9M+5.0% | $273.3M+8.4% | $252.2M |
| Current Assets | $170.7M-8.4% | $186.3M+8.3% | $172.0M+11.0% | $154.9M-2.4% | $158.7M-1.4% | $161.0M+13.7% | $141.6M+14.3% | $123.8M |
| Cash & Equivalents | $24.0M-21.4% | $30.5M-5.9% | $32.5M+40.7% | $23.1M-18.1% | $28.2M+54.3% | $18.3M-21.4% | $23.2M+44.8% | $16.0M |
| Inventory | $84.1M-5.2% | $88.8M+11.1% | $79.9M+11.7% | $71.5M-0.2% | $71.7M-6.1% | $76.3M+7.6% | $70.9M-0.4% | $71.2M |
| Accounts Receivable | $37.9M+4.1% | $36.4M+12.3% | $32.4M+16.7% | $27.8M-18.3% | $34.0M+3.6% | $32.8M-0.5% | $33.0M+10.2% | $29.9M |
| Goodwill | $3.5M0.0% | $3.5M0.0% | $3.5M0.0% | $3.5M0.0% | $3.5M0.0% | $3.5M0.0% | $3.5M0.0% | $3.5M |
| Total Liabilities | $141.3M-10.7% | $158.3M+4.1% | $152.0M+33.7% | $113.7M-1.3% | $115.2M-5.3% | $121.6M+8.7% | $111.9M+11.6% | $100.2M |
| Current Liabilities | $79.6M+14.5% | $69.5M+15.7% | $60.1M+35.3% | $44.4M-2.8% | $45.7M-9.9% | $50.7M+14.8% | $44.2M+12.6% | $39.3M |
| Long-Term Debt | N/A | N/A | $187K-7.9% | $203K-7.3% | $219K+15.3% | $190K-5.9% | $202K-6.5% | $216K |
| Total Equity | $154.5M-0.9% | $155.8M+1.7% | $153.3M-0.5% | $154.1M0.0% | $154.2M-0.3% | $154.7M+2.5% | $150.9M+6.5% | $141.7M |
| Retained Earnings | $63.9M-2.6% | $65.6M+3.0% | $63.7M-5.8% | $67.7M-0.1% | $67.8M-1.3% | $68.7M+5.4% | $65.1M+16.0% | $56.1M |
KRT Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q4'23 | Q3'24 | Q2'24 | Q1'24 | Q4'22 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $982K-89.9% | $9.8M+26.2% | $7.7M-24.9% | $10.3M-14.5% | $12.0M-28.7% | $16.9M+18.9% | $14.2M-16.4% | $17.0M |
| Capital Expenditures | $246K+47.3% | $167K+56.1% | $107K+405.7% | -$35K-103.3% | $1.1M+36.2% | $774K-25.7% | $1.0M+60.3% | $650K |
| Free Cash Flow | $736K-92.3% | $9.6M+25.8% | $7.6M-25.7% | $10.3M-6.6% | $11.0M-31.8% | $16.1M+22.5% | $13.1M-19.5% | $16.3M |
| Investing Cash Flow | $4.3M+280.8% | -$2.4M-167.1% | $3.5M+140.0% | -$8.8M-210.7% | $8.0M+154.5% | -$14.6M+0.4% | -$14.7M-1058.1% | -$1.3M |
| Financing Cash Flow | -$11.8M-26.7% | -$9.3M+10.3% | -$10.4M-58.5% | -$6.5M+35.2% | -$10.1M-40.3% | -$7.2M-193.8% | $7.7M+206.8% | -$7.2M |
| Dividends Paid | $9.0M+0.1% | $9.0M+0.2% | $9.0M+125.9% | $4.0M-59.9% | $10.0M+42.9% | $7.0M | $0-100.0% | $7.0M |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
KRT Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q4'23 | Q3'24 | Q2'24 | Q1'24 | Q4'22 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.5%-5.1pp | 39.6%+0.3pp | 39.3%+3.7pp | 35.7%-1.2pp | 36.9%-1.6pp | 38.5%-1.3pp | 39.8%+7.8pp | 32.0% |
| Operating Margin | 6.9%-6.5pp | 13.4%+5.8pp | 7.5%+2.7pp | 4.8%-5.9pp | 10.8%-1.5pp | 12.3%-1.0pp | 13.3%+8.1pp | 5.2% |
| Net Margin | 5.9%-2.9pp | 8.8%+2.6pp | 6.2%+2.1pp | 4.1%-4.5pp | 8.6%-1.1pp | 9.7%+0.3pp | 9.4%+4.5pp | 4.9% |
| Return on Equity | 4.7%-2.3pp | 7.0%+2.8pp | 4.2%+1.6pp | 2.5%-3.4pp | 5.9%-0.9pp | 6.8%+0.8pp | 6.0%+2.8pp | 3.2% |
| Return on Assets | 2.4%-1.0pp | 3.4%+1.4pp | 2.1%+0.6pp | 1.4%-1.8pp | 3.2%-0.4pp | 3.7%+0.4pp | 3.3%+1.5pp | 1.8% |
| Current Ratio | 2.14-0.5 | 2.68-0.2 | 2.86-0.6 | 3.49+0.0 | 3.47+0.3 | 3.17-0.0 | 3.20+0.0 | 3.15 |
| Debt-to-Equity | 0.91-0.1 | 1.02+0.0 | 0.99+1.0 | 0.000.0 | 0.000.0 | 0.000.0 | 0.000.0 | 0.00 |
| FCF Margin | 0.6%-7.1pp | 7.7%+0.4pp | 7.3%-3.4pp | 10.7%+0.3pp | 10.4%-4.4pp | 14.8%+1.1pp | 13.7%-3.9pp | 17.6% |
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Frequently Asked Questions
What is Karat Packaging Inc.'s annual revenue?
Karat Packaging Inc. (KRT) reported $422.6M in total revenue for fiscal year 2024. This represents a 4.2% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Karat Packaging Inc.'s revenue growing?
Karat Packaging Inc. (KRT) revenue grew by 4.2% year-over-year, from $405.7M to $422.6M in fiscal year 2024.
Is Karat Packaging Inc. profitable?
Yes, Karat Packaging Inc. (KRT) reported a net income of $30.0M in fiscal year 2024, with a net profit margin of 7.1%.
What is Karat Packaging Inc.'s earnings per share (EPS)?
Karat Packaging Inc. (KRT) reported diluted earnings per share of $1.49 for fiscal year 2024. This represents a -8.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Karat Packaging Inc.'s EBITDA?
Karat Packaging Inc. (KRT) had EBITDA of $48.4M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
What is Karat Packaging Inc.'s gross margin?
Karat Packaging Inc. (KRT) had a gross margin of 38.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Karat Packaging Inc.'s operating margin?
Karat Packaging Inc. (KRT) had an operating margin of 8.9% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Karat Packaging Inc.'s net profit margin?
Karat Packaging Inc. (KRT) had a net profit margin of 7.1% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
Does Karat Packaging Inc. pay dividends?
Yes, Karat Packaging Inc. (KRT) paid $1.55 per share in dividends during fiscal year 2024.
What is Karat Packaging Inc.'s return on equity (ROE)?
Karat Packaging Inc. (KRT) has a return on equity of 19.3% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.
What is Karat Packaging Inc.'s free cash flow?
Karat Packaging Inc. (KRT) generated $47.0M in free cash flow during fiscal year 2024. This represents a -6.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Karat Packaging Inc.'s operating cash flow?
Karat Packaging Inc. (KRT) generated $48.0M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Karat Packaging Inc.'s total assets?
Karat Packaging Inc. (KRT) had $294.5M in total assets as of fiscal year 2024, including both current and long-term assets.
What are Karat Packaging Inc.'s capital expenditures?
Karat Packaging Inc. (KRT) invested $934K in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How many shares does Karat Packaging Inc. have outstanding?
Karat Packaging Inc. (KRT) had 20M shares outstanding as of fiscal year 2024.
What is Karat Packaging Inc.'s current ratio?
Karat Packaging Inc. (KRT) had a current ratio of 3.47 as of fiscal year 2024, which is generally considered healthy.
What is Karat Packaging Inc.'s debt-to-equity ratio?
Karat Packaging Inc. (KRT) had a debt-to-equity ratio of 0.85 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Karat Packaging Inc.'s return on assets (ROA)?
Karat Packaging Inc. (KRT) had a return on assets of 10.2% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Karat Packaging Inc.'s Altman Z-Score?
Karat Packaging Inc. (KRT) has an Altman Z-Score of 4.98, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Karat Packaging Inc.'s Piotroski F-Score?
Karat Packaging Inc. (KRT) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Karat Packaging Inc.'s earnings high quality?
Karat Packaging Inc. (KRT) has an earnings quality ratio of 1.60x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Karat Packaging Inc. cover its interest payments?
Karat Packaging Inc. (KRT) has an interest coverage ratio of 17.8x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Karat Packaging Inc.?
Karat Packaging Inc. (KRT) scores 66 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.