olivLaw · US equity research
Karat Packaging Inc. KRT
Plastics Products, NEC · SIC 3089 · Vertical: Plastics Products, NEC (SIC 3089)
Karat Packaging Inc. is a distributor and manufacturer of disposable foodservice products, with a focus on eco-friendly items and its online channel. The company reported record net sales of 467.7 million USD in 2025, and in the second quarter of 2026 it reported net sales of 136.3 million USD, both relevant for judging growth and the effect of tariff refunds.
At the close of 04 Nov 2026, Karat Packaging Inc. (KRT) stock was 53.63 USD (+2.80% on the day), with market capitalisation 1.1 bn USD, P/E 21.5 on diluted EPS of 2.50 USD over the last 12 months, dividend yield 3.36%, beta 0.77, 52-week range 21.06–54.68 USD. Latest reported quarter (Q2 2026): revenue of 136.3 m USD (+9.9% YoY), net income of 29.3 m USD (+168.3% YoY), diluted EPS 1.46 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 52.8
- neutral
- Bollinger (20, 2)
- 52.55 – 55.01
- in the lower half of the band · %B 0.44 · band width 4.6%
- SMA 50 / 200
- 51.81 / 36.17
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.39 / 0.68
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −1.9% | −1.1% | −0.8 pp | — |
| 3 months | +26.7% | −0.5% | +27.1 pp | — |
| 6 months | +80.7% | +4.4% | +76.3 pp | — |
| Year to date | +137.6% | +12.3% | +125.3 pp | — |
| 1 year | +124.8% | +13.5% | +111.2 pp | +16.1% |
| 3 years | +143.2% | +76.4% | +66.8 pp | +27.2% |
| 5 years | +133.3% | +63.7% | +69.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 112.8 m | 101.6 m | 103.6 m | 124.0 m | 124.5 m | 115.6 m | 116.9 m | 136.3 m |
| Cost of revenue | 69.3 m | 61.8 m | 62.9 m | 74.9 m | 81.6 m | 76.3 m | 75.4 m | 59.1 m |
| Gross profit | 43.5 m | 39.8 m | 40.8 m | 49.1 m | 42.9 m | 39.3 m | 41.5 m | 77.2 m |
| Operating income | 11.3 m | 7.3 m | 7.8 m | 16.6 m | 8.6 m | 8.5 m | 8.5 m | 37.6 m |
| Depreciation & amortisation | 2.7 m ≈ | 2.7 m | 2.7 m | 2.7 m ≈ | 2.8 m ≈ | 2.8 m | 2.7 m | 2.7 m ≈ |
| Interest expense | 535.0 k | 516.0 k | 509.0 k | 521.0 k | 539.0 k | 486.0 k | 409.0 k | 425.0 k |
| Pre-tax income | 11.9 m | 8.3 m | 8.9 m | 14.5 m | 9.9 m | 9.7 m | 9.4 m | 39.0 m |
| Income tax | 2.6 m | 2.5 m | 2.1 m | 3.5 m | 2.3 m | 2.5 m | 2.2 m | 9.4 m |
| Net income | 9.1 m | 5.6 m | 6.4 m | 10.9 m | 7.3 m | 6.8 m | 6.7 m | 29.3 m |
| Diluted EPS | 0.45 | 0.28 ≈ | 0.32 | 0.54 | 0.36 | 0.34 ≈ | 0.34 | 1.46 |
| Operating cash flow | 19.5 m ≈ | 8.3 m | 7.7 m | 9.8 m ≈ | 982.0 k ≈ | 15.4 m | 7.2 m | 33.2 m ≈ |
| Capex | 303.0 k ≈ | 216.0 k | 107.0 k | 167.0 k ≈ | 246.0 k ≈ | 236.0 k | 565.0 k | 56.0 k ≈ |
| Dividends paid | 10.0 m ≈ | 8.0 m | 9.0 m | 9.0 m ≈ | 9.0 m ≈ | 9.0 m | 9.0 m | 9.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 90 percentile of its own 21-quarter history (min 10.2, median 16.8, max 24.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Revenue | 295.5 m | 364.2 m | 423.0 m | 405.7 m | 422.6 m | 467.7 m |
| Revenue YoY | unavailable | +23.3% | +16.1% | −4.1% | +4.2% | +10.7% |
| Net income | 17.5 m | 20.8 m | 23.6 m | 32.5 m | 30.0 m | 31.5 m |
| Net income YoY | unavailable | +18.6% | +13.8% | +37.3% | −7.7% | +5.0% |
| Diluted EPS | 1.13 | 1.12 | 1.19 | 1.63 | 1.49 | 1.56 |
| Diluted EPS YoY | unavailable | −0.9% | +6.2% | +37.0% | −8.6% | +4.7% |
| net % | 5.9% | 5.7% | 5.6% | 8.0% | 7.1% | 6.7% |
| Free cash flow | -15.0 m | 4.5 m | 26.8 m | 50.5 m | 47.0 m | 33.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 37.9 m USD
- Financial debt
- 12.9 m USD
- Net debt
- -24.9 m USD
- Equity
- 156.9 m USD
- Total assets
- 287.7 m USD
- Debt / equity
- 0.08x
- Current ratio
- 2.30x
- ROE
- 19.7%
- ROA
- 10.8%
- FCF margin
- 7.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 295.5 m | 364.2 m | 423.0 m | 405.7 m | 422.6 m | 467.7 m | SEC (XBRL)· 13 Mar 2026verified |
| Cost of revenue | 206.4 m | 256.4 m | 290.9 m | 252.6 m | 258.3 m | 295.6 m | SEC (XBRL)· 13 Mar 2026verified |
| Gross profit | 89.1 m | 107.8 m | 132.1 m | 153.0 m | 164.3 m | 172.1 m | SEC (XBRL)· 13 Mar 2026verified |
| Operating income | 27.7 m | 23.1 m | 30.0 m | 42.1 m | 37.8 m | 41.4 m | SEC (XBRL)· 13 Mar 2026verified |
| Depreciation & amortisation | 8.6 m | 10.0 m | 10.4 m | 10.8 m | 10.7 m | 10.9 m | SEC (XBRL)· 13 Mar 2026verified |
| EBITDA | 36.3 m ≈ | 33.2 m ≈ | 40.4 m ≈ | 52.9 m ≈ | 48.4 m ≈ | 52.3 m ≈ | SEC (XBRL)· 13 Mar 2026derived |
| Interest expense | — | 2.9 m | 2.0 m | 2.0 m | 2.1 m | 2.1 m | SEC (XBRL)· 13 Mar 2026verified |
| Pre-tax income | 21.9 m | 27.5 m | 32.5 m | 43.0 m | 40.7 m | 43.0 m | SEC (XBRL)· 13 Mar 2026verified |
| Income tax | 5.3 m | 5.1 m | 6.7 m | 9.8 m | 9.9 m | 10.4 m | SEC (XBRL)· 13 Mar 2026verified |
| Net income | 17.5 m | 20.8 m | 23.6 m | 32.5 m | 30.0 m | 31.5 m | SEC (XBRL)· 13 Mar 2026verified |
| Diluted EPS | 1.13 | 1.12 | 1.19 | 1.63 | 1.49 | 1.56 | SEC (XBRL)· 13 Mar 2026verified |
| Weighted average diluted shares | 15.4 m | 18.6 m | 19.9 m | 20.0 m | 20.1 m | 20.2 m | SEC (XBRL)· 13 Mar 2026verified |
| Dividend per share | 0.04 | — | 0.35 | 1.05 | 1.55 | 1.80 | SEC (XBRL)· 13 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 448.0 k | 6.5 m | 16.0 m | 23.1 m | 31.6 m | 37.9 m | SEC (XBRL)· 13 Mar 2026verified |
| Receivables | 23.8 m | 32.8 m | 29.9 m | 27.8 m | 26.7 m | 36.4 m | SEC (XBRL)· 13 Mar 2026verified |
| Inventories | 49.0 m | 58.5 m | 71.2 m | 71.5 m | 70.7 m | 81.7 m | SEC (XBRL)· 13 Mar 2026verified |
| Current assets | 79.8 m | 102.9 m | 123.8 m | 154.9 m | 161.0 m | 161.2 m | SEC (XBRL)· 13 Mar 2026verified |
| Property, plant & equipment, net | 95.5 m | 93.5 m | 95.6 m | 95.2 m | 88.0 m | 81.2 m | SEC (XBRL)· 13 Mar 2026verified |
| Goodwill | 3.1 m | 3.5 m | 3.5 m | 3.5 m | 3.5 m | 3.5 m | SEC (XBRL)· 13 Mar 2026verified |
| Intangibles (excl. goodwill) | 0 | 380.0 k | 353.0 k | 327.0 k | 300.0 k | 273.0 k | SEC (XBRL)· 13 Mar 2026verified |
| Total assets | 181.1 m | 207.6 m | 252.2 m | 276.4 m | 294.5 m | 287.7 m | SEC (XBRL)· 13 Mar 2026verified |
| Accounts payable | 20.1 m | 18.5 m | 18.6 m | — | — | — | SEC (XBRL)· 16 Mar 2023verified |
| Short-term debt | 11.4 m | 1.2 m | 957.0 k | 1.1 m | 1.2 m | 12.9 m | SEC (XBRL)· 13 Mar 2026verified |
| Long-term debt | 100.0 k | 200.0 k | 216.0 k | 203.0 k | — | — | SEC (XBRL)· 15 Mar 2024verified |
| Current liabilities | 43.1 m | 30.8 m | 39.3 m | 44.4 m | 46.4 m | 70.2 m | SEC (XBRL)· 13 Mar 2026verified |
| Total liabilities | 141.2 m | 75.6 m | 100.2 m | 113.7 m | 132.3 m | 130.8 m | SEC (XBRL)· 13 Mar 2026verified |
| Equity | 39.9 m | 132.0 m | 151.9 m | 162.7 m | 162.2 m | 156.9 m | SEC (XBRL)· 13 Mar 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 14.5 m | 8.7 m | 29.5 m | 53.4 m | 48.0 m | 33.8 m | SEC (XBRL)· 13 Mar 2026verified |
| Capex | 29.5 m | 4.2 m | 2.7 m | 2.8 m | 934.0 k | 756.0 k | SEC (XBRL)· 13 Mar 2026verified |
| Free cash flow | -15.0 m ≈ | 4.5 m ≈ | 26.8 m ≈ | 50.5 m ≈ | 47.0 m ≈ | 33.1 m ≈ | SEC (XBRL)· 13 Mar 2026derived |
| Investing cash flow | -37.4 m | -13.3 m | -17.8 m | -30.2 m | -5.9 m | 25.4 m | SEC (XBRL)· 13 Mar 2026verified |
| Financing cash flow | 22.5 m | 10.6 m | -2.1 m | -16.2 m | -33.6 m | -52.9 m | SEC (XBRL)· 13 Mar 2026verified |
| Dividends paid | 606.0 k | 0 | 7.0 m | 20.9 m | 31.0 m | 36.1 m | SEC (XBRL)· 13 Mar 2026verified |
| Share repurchases | 248.0 k | 0 | — | — | 0 | 3.0 m | SEC (XBRL)· 13 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 73 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation59
- Returns64
- Quality90
- Balance sheet100
- Growth46
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 23.65 – 93.95 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)38.19 – 57.40 (Mid 45.67)WACC 9.2% · starting FCFF 57.0 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 10.8%
- Peers: EV/EBITDA46.01 – 51.99 (Mid 49.34)6 companies used · median multiple 12.9x · quartiles 12.0x – 13.6xATR, AWI, CMT, MYE, NWL, SWIM
- Peers: P/E65.26 – 93.95 (Mid 89.05)5 companies used · median multiple 35.6x · quartiles 26.1x – 37.6xATR, AWI, CMT, ENTG, MYE
- Dividend discount (DDM)23.65 – 31.81 (Mid 27.13)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 73/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 34.0% | 100 (vs peers) | 10% |
| Net margin · Quality | 10.2% | 63 (vs peers) | 6% |
| FCF conversion · Quality | 110.7% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 3.4% | 28 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 9.4% | 63 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | -0.4x | 100 (vs peers) | 10% |
| Interest coverage · Balance sheet | 33.9x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 2.3x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 21.5x | 86 (vs peers) | 10% |
| EV/EBITDA · Valuation | 14.1x | 29 (vs peers) | 10% |
| FCF yield · Valuation | 5.2% | 65 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 3.8% | 55 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 64.8% | 79 (on a fixed band) | 4% |
Score groups
- Balance sheet100/100 · 3/3 factors with a value
- Growth46/100 · 2/2 factors with a value
- Quality90/100 · 3/3 factors with a value
- Returns64/100 · 2/2 factors with a value
- Valuation59/100 · 3/3 factors with a value
Memo
Karat Packaging Inc. (KRT). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 467.7 m USD in 2025; YoY growth 10.7%; net margin 10.2%; ROE 31.2%; net debt/EBITDA -0.4x.
The estimated value range is 42.10–54.70 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 47.51 USD, the price of 53.63 USD leaves a potential of -11.4% (value / price − 1) and a margin of safety of -12.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 73/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 34.0%
- FCF conversion: 110.7%
- Net debt / EBITDA: -0.4x
- Interest coverage: 33.9x
- Current ratio: 2.3x
- P/E (TTM): 21.5x
- Payout ratio (FCF): 64.8%
What contradicts it
- Revenue CAGR 3Y: 3.4%
- EV/EBITDA: 14.1x
Versus the vertical median
Plastics Products, NEC (SIC 3089) · same industry (4-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ENTGEntegris, Inc. | 21.8 bn | 55.7 | 9.6% | 11.1% | −1.4% | +85% / +37% |
| ATRAptarGroup, Inc | 9.3 bn | 35.6 | 9.9% | 6.7% | +5.4% | +18% / +16% |
| AWIArmstrong World Industries, Inc. | 7.4 bn | 23.5 | 36.0% | 18.4% | +12.1% | −7% / +107% |
| NWLNewell Brands Inc | 2.5 bn | — | -12.8% | -4.4% | −5.0% | +61% / −23% |
| MYEMyers Industries, Inc. | 1.1 bn | 37.6 | 9.7% | 3.3% | −1.3% | +58% / +62% |
| KRTKarat Packaging Inc. | 1.1 bn | 21.5 | 31.2% | 10.2% | +10.7% | +125% / +143% |
| SWIMLatham Group, Inc. | 963.2 m | 100.2 | 2.2% | 1.6% | +7.4% | +14% / +262% |
| CMTCore Molding Technologies, Inc. | 187.1 m | 26.1 | 4.4% | 2.4% | −9.5% | +12% / +18% |
| DSWLDeswell Industries, Inc. | 46.5 m | 4.4 | 10.0% | 17.3% | −9.3% | −19% / +12% |
1- and 3-year price returns: for KRT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 31.61 Total return -38% · Per year -38% | 55.92 Total return 8% · Per year 8% | 84.27 Total return 61% · Per year 61% |
| 3 years | 30.01 Total return -36% · Per year -14% | 59.80 Total return 22% · Per year 7% | 99.04 Total return 98% · Per year 26% |
| 5 years | 28.49 Total return -34% · Per year -8% | 63.95 Total return 38% · Per year 7% | 116.41 Total return 142% · Per year 19% |
- Exit P/E± 14.95
- Net margin± 10.46
- Annual revenue growth± 8.68
- Annual dilution± 0.88
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Karat Packaging Inc. is a distributor and manufacturer of disposable foodservice products, with a focus on eco-friendly items and its online channel. The company reported record net sales of 467.7 million USD in 2025 1, and in the second quarter of 2026 it reported net sales of 136.3 million USD 3, both relevant for judging growth and the effect of tariff refunds.
SWOT
Strengths
- The company offers a wide product range, with a large catalog of references and an extensive distribution network 1.
- The customer base includes well-known restaurant chains, and retention of major customers has been high in recent years 1.
- The eco-friendly product line carries a significant share of sales and is growing, and the company has established experience in this segment 1.
Weaknesses
- Gross margin declined in 2025 due to high tariff-related costs, and reliance on imports makes the company vulnerable to trade changes 1.
- Quarterly results can be influenced by non-recurring items such as tariff refunds, which makes direct comparison with earlier periods difficult 3.
- The company has related party transactions, which raises questions about whether terms match those available from unaffiliated third parties 1.
Opportunities
- Growth in the online channel and a new distribution center in Florida could support sales growth 3.
- Paper bags and other eco-friendly products could become growth drivers if new contracts extend to other customers 1.
- Airline, entertainment venue and other non-restaurant customers could open new revenue sources 1.
Risks
- Dependence on overseas suppliershigh
Most products are imported, and disruptions in the supply chain can delay deliveries and raise costs 1.
- Tariff changeshigh
US tariff policy has changed several times, and new duties could reduce margins if they cannot be offset 2.
- Raw material price volatilitymedium
The cost of resin, aluminum and paper board may rise, and the company does not always have the ability to pass these increases fully to customers 1.
- Related party transactionsmedium
Some contracts are concluded with entities linked to shareholders, which may raise doubts about the terms obtained 1.
- Capital expenditure and expansionlow
Expanding the warehouse network or the truck fleet may require large investments that could affect the ability to meet debt obligations 1.
Investment thesis
What would need to be true (bull case)
- If growth in the online channel and paper bags continues, the company could sustain sales growth that supports profitability 13.
- Demand for eco-friendly products and for delivery could remain solid, supporting the company's market position 1.
- Expanding the distribution network in strategic areas could shorten delivery times and improve customer service 3.
What would break the thesis
- Recent results include non-recurring items such as tariff refunds, and without them profitability could be much lower 3.
- Margins could come under pressure if tariffs or freight costs rise again and the company cannot offset them 12.
- Competition from players with greater resources could lead to price cuts and loss of market share 1.
What to watch
- Net sales and adjusted EBITDA margin guidance for the third quarterQ3 2026
- Development of gross margin after the IEEPA tariff refund effects end2026
- Results of the online channel and new paper bag contracts2026
- Impact of the new Section 301 tariffs on import costs2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Karat Packaging is a company that distributes and manufactures products available in plastic, paper, biopolymer and other compostable forms, including food containers, bags, cups, cutlery, straws and specialty beverage ingredients 1. Most revenue comes from distributing products bought from a global network of about 150 vendors, while domestic manufacturing in the US remains a minor component 1. The company operates one reportable segment and has moved toward a lighter structure with more imports and less production 1.
Customers include fast casual and fast food restaurant chains, national and regional distributors, retail shops and online customers, and no single customer represented more than 10% of revenue in 2025 or 2024 1. The company operates distribution centers in Texas, California, Hawaii, New Jersey, Washington, Illinois, Arizona and South Carolina 2. Its strategy includes expanding the e-commerce channel and paper products such as bags, where a contract with a national chain is expected to become a growth driver 1.
The company is listed on Nasdaq under the symbol KRT and reports quarterly results, including guidance for the third quarter and the full year 2026 3. Management has indicated that supplier and distribution decisions aim to preserve margins in a volatile trade environment 2.
Segments
Market context
The market for disposable foodservice packaging is described by the company as extremely competitive and highly fragmented 1. Growth in food delivery and take-out demand supports demand for such products 1. The company's market share is not quantified in the analyzed sources.
The regulatory environment and consumer preference for eco-friendly products directly influence demand, and legislative changes can arrive quickly 1. Tariffs changed import costs, and the trade rules applicable in 2026 shifted during the year 2.
Trends
- Preference for take-out and deliverytailwind
The company believes consumer preference for delivery and take-out supports demand for packaging 1. If this trend continues, it could support sales volumes.
- Regulation of disposable productsmixed
Environmental concerns have led to rules that favor compostable products, which could raise demand for the company's eco-friendly line 1. Legislative changes can also reduce demand for some products if the company does not adapt quickly 1.
- Tariffs and the supply chainmixed
Tariffs imposed from 2025 raised import costs, and the company diversified sourcing toward Malaysia and Vietnam 1. IEEPA tariff refunds recognized in the second quarter of 2026 had a positive effect on profit, but they are one-time in nature 3.
- Raw material and freight costsheadwind
Prices of PET resin, aluminum and paper board can fluctuate, and delays in passing cost increases to customers can reduce gross margin 1. Ocean freight rates and import costs increased in the second quarter of 2026, adding costs 3.
Competitive position
Competitors are described as larger, with greater financial resources and stronger brand recognition 1. Competitive pressure can lead to price reductions, which would affect the company's margins 1.
The analyzed sources do not name direct competitors; the company only states that the market is fragmented and that many rivals have a broader product range 1. Any assessment of relative position requires additional sources.
- Larger industry competitors
The company states that many competitors are larger and have greater financial resources and a broader product range, without naming them in the analyzed sources 1.
- Plastic and paper packaging manufacturers
Competition comes from producers that can offer lower prices or superior products, according to the company's description 1.
- Foodservice distributors with online platforms
The company sells through platforms such as Sysco and Amazon, which places distributors on those channels within the competitive field 1.
- Alternative suppliers of compostable products
Competition could intensify if lower freight costs reduce barriers to entry, according to the company's description 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- 24 Karat KAFESurge — GDELT DOC · 25 Oct 2026 · RO
The latest news item in our archive is from 25 Oct 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report04 Nov 2026Other events · Financial statements and exhibits
- Quarterly report07 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report05 Aug 2026Other events · Financial statements and exhibits
- Current report17 Jun 2026Shareholder vote
- Quarterly report08 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Current report06 May 2026Other events · Financial statements and exhibits
- Proxy statement24 Apr 2026
- Current report17 Mar 2026Item 4.01 · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Karat Packaging Inc. · 13 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Karat Packaging Inc. · 07 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Karat Packaging Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.