KRT

Karat Packaging’s first quarter was shaped by broad-based sales growth, particularly in online channels and national account expansion. Management pointed to improving demand, with CEO Alan Yu noting that sales momentum accelerated throughout the quarter, culminating in a significant surge in March due to order pull-forwards. The company’s diversified sourcing strategy helped maintain gross margin stability, even as higher tariffs and import costs weighed on profitability. Yu emphasized that the shift to fulfilling more online orders directly led to stronger margin contribution and operational efficiency. Is now the time to buy KRT? Find out in our full research report (it’s free). Revenue: $116.9 million vs analyst estimates of $113 million (12.9% year-on-year growth, 3.5% beat) Adjusted EPS: $0.34 vs analyst estimates of $0.32 (6.3% beat) Adjusted EBITDA: $12.49 million vs analyst estimates of $11.17 million (10.7% margin, 11.8% beat) Revenue Guidance for Q2 CY2026 is $135.1 million at the midpoint, below analyst estimates of $139.3 million Operating Margin: 7.2%, in line with the same quarter last year Market Capitalization: $543.6 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Kyle Benvenuto (Bank of America): Asked about oil price assumptions embedded in margin guidance and the extent to which planned price increases would protect margins. CEO Alan Yu responded that most vendors are absorbing the bulk of cost increases, and recent stabilization in resin prices reduces the risk of further margin pressure. Kyle Benvenuto (Bank of America): Inquired about the drivers of Q2 sales growth, specifically the mix between new national accounts and organic volume. Yu explained that ongoing online sales acceleration is the primary contributor, with additional growth expected from national chains during the summer. Ryan Meyers (Lake Street Capital Markets): Sought clarity on the March order pull-forward and whether it signaled business slowing. Yu clarified that the pull-forward was about $2 million, and April softened as a result, but May sales trends were positive, supporting full-year guidance. Ryan Meyers (Lake...

— Strong Top-Line Growth and Solid Profitability — CHINO, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) ("Karat Packaging" or the "Company"), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its first quarter ended March 31, 2026. First Quarter 2026 Highlights Net sales of $116.9 million, up 12.9 percent, from $103.6 million in the prior-year quarter. Gross profit of $41.5 million, up 1.9 percent, from $40.8 million in the prior-year quarter. Gross margin of 35.5 percent, reflecting an expected decrease from 39.3 percent in the prior-year quarter due to elevated tariffs. Net income of $7.1 million, up 4.8 percent, from $6.8 million in the prior-year quarter. Net income margin of 6.1 percent versus 6.6 percent in the prior-year quarter. Adjusted EBITDA of $12.5 million versus $11.9 million in the prior-year quarter. Adjusted EBITDA margin of 10.7 percent versus 11.5 percent in the prior-year quarter. Guidance Net sales for the 2026 second quarter expected to increase by 8 to 10 percent from the prior-year quarter. Gross margin for the 2026 second quarter expected to be within 35 to 37 percent, excluding potential tariff refund impact under the current trade policy. Adjusted EBITDA margin for the 2026 second quarter expected to be within 11 to 13 percent, excluding potential tariff refund impact under the current trade policy. Net sales for full-year 2026 expected to increase by low double-digits from the prior year. Gross margin for full-year 2026 expected to be within 34 to 36 percent, excluding potential tariff refund impact under the current trade policy. Adjusted EBITDA margin for full-year 2026 expected to be within 11 to 13 percent, excluding potential tariff refund impact under the current trade policy. “We started 2026 with a robust quarter, with year‑over‑year sales increasing almost 13 percent as momentum built throughout the quarter, accelerating from weather-impacted modest progress in January to growth exceeding 20 percent in March,” said Alan Yu, Chief Executive Officer. “Gross margin remained resilient at 35.5 percent despite the continued impact of higher tariffs, demonstrating the effectiveness of our diversified sourcing strategy and benefiting from favorable product mix and pricing. “Given the sharp inc...

Performance acceleration in Q1 was driven by improving demand and market share gains, culminating in 20% growth in March, though this included some order pull-forward. Management successfully pivoted the online sales strategy to fulfill orders via company storefronts and third-party platforms, resulting in a return to robust growth at higher contribution margins. Gross margin resilience was maintained through a diversified sourcing strategy and favorable product mix, despite significant headwinds from higher import duties and tariffs. The company is proactively rebalancing its supply chain, increasing domestic and Southeast Asian sourcing while reducing reliance on Taiwan and China to mitigate geographic risk and tariff impacts. Operational leverage improved as the company reduced online platform fees by shifting away from third-party fulfillment and optimized shipping and transportation costs. Eco-friendly product sales grew 16.9% year-over-year, supported by the expansion of the paper bag category and the acquisition of new national chain accounts. Full-year 2026 net sales are expected to grow in the low double-digit range, supported by a strong pipeline of national chain accounts and record online sales projections. Management anticipates gross margin stability between 34% and 36% for the full year, aided by expected tariff savings under current trade policy and selective price increases. Price increases of 5% to 15% on plastic items are being implemented in mid-May to offset rising oil and product costs, positioned at the lower end of the peer group range to support partners. The Q2 sales growth target of 8% to 10% incorporates a conservative outlook following a softer April caused by the March order pull-forward. Strategic focus remains on converting large national chain pipelines and expanding SKU penetration within existing accounts, particularly in sustainable product lines. Import duty and tariff costs increased significantly to $10.5 million in Q1 2026 from $3.4 million in the prior-year period, while total import costs rose to 13.8% of net sales. The company added a new supplier in the Americas to further diversify the sourcing footprint and enhance supply chain flexibility against global trade volatility. Higher rent expenses of $0.6 million were incurred following the opening of the new Chino distribution center, impacting year-over-year operati...

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET Chief Executive Officer — Alan Yu Chief Financial Officer — Jian Guo Operator: Thank you for standing by. My name is Pryla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Karat Packaging Inc. First Quarter 2026 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. I would now like to hand the conference over to Roger Pondel. Please go ahead. Roger Pondel: Thank you, operator. Good afternoon, everyone, and welcome to Karat Packaging Inc.’s 2026 First Quarter Conference Call. I am Roger Pondel with Pondel Wilkinson, Karat Packaging Inc.’s investor relations firm. It will be my pleasure momentarily to introduce the company’s Chief Executive Officer, Alan Yu, and its Chief Financial Officer, Jian Guo. Before I turn the call over to Alan, I want to remind our listeners that today’s call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the company’s control, including those set forth in the Risk Factors section of the company’s most recent Form 10-K as filed with the Securities and Exchange Commission and copies of which are available on the SEC’s website at sec.gov, along with other company filings made with the SEC from time to time. Actual results could differ materially from these forward-looking statements, and Karat Packaging Inc. undertakes no obligation to update any forward-looking statements, except as required by law. Please also note that during today’s call, we will be discussing adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, and free cash flow, all of which are non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of the most directly comparable GAAP measures to the non-GAAP financial measures is included in today’s press release, which is now posted on the company’s website. And with that, I will...

Interested in Karat Packaging Inc.? Here are five stocks we like better. Karat reported a “robust” Q1 with net sales of $116.9 million, up 12.9% year‑over‑year, accelerating to >20% growth in March and a rebound in online sales to $19.5 million; management says online revenue is on track for $100M+ this year. Gross margin fell to 35.5% from 39.3% as import costs and tariffs surged (import duties rose to $10.5M from $3.4M), prompting price increases of roughly 5%–15% and sourcing shifts; management expects tariff‑related savings to begin lowering COGS this month. Profitability and cash flow remained solid—operating income rose 8.2% to $8.5M, net income was $7.1M ($0.34/share), adjusted EBITDA was $12.5M, free cash flow was $6.3M, and the board approved another quarterly dividend of $0.45; Q2 sales are guided to grow ~8%–10% with full‑year sales expected in the low double‑digit range and adjusted EBITDA margin of 11%–13%. Wrapping Up Profits: Karat Packaging's Earnings Reward Karat Packaging (NASDAQ:KRT) reported a “robust” start to fiscal 2026, with first-quarter sales up nearly 13% year over year amid improving demand, market share gains, and a return to growth in its higher-margin online channel, executives said on the company’s quarterly earnings call. Management also addressed a dynamic cost environment that includes higher oil-related input costs and elevated tariff-related import expenses, while outlining pricing actions and sourcing shifts intended to support margins going forward. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Bristol Myers Squibb’s big buys: $18.1 billion in 2 biotech deals Chief Executive Officer Alan Yu said the company’s performance “accelerated significantly” as the quarter progressed, moving from “modest weather-impacted growth in January” to growth “exceeding 20% in March,” which included some pull-forward of orders. He said the acceleration reflected “improving demand, strong execution across the organization, and continued gain in the market share.” Chief Financial Officer Jian Guo reported net sales of $116.9 million for the first quarter, up 12.9% from $103.6 million in the prior-year period. Guo attributed the increase primarily to $12.1 million from volume and mix and a $2.0 million favorable impact from pricing. → Years in the Making, AMD’s Upside Movement Has Just Begun By channel, Guo said: Sales to...

CHINO, Calif., May 06, 2026 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) (the “Company” or “Karat Packaging”), a specialty distributor and manufacturer of disposable foodservice products and related items, today announced that its board of directors has declared a regular quarterly dividend of $0.45 per share on the Company’s common stock. The dividend is payable on or about May 28, 2026, to the stockholders of record as of May 21, 2026. About Karat Packaging Inc. Karat Packaging Inc. is a specialty distributor and manufacturer of a wide range of disposable foodservice products and related items, primarily used by national and regional restaurants and in foodservice settings throughout the United States. Its products include food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves and other products. The Company’s eco-friendly Karat Earth® line offers quality, sustainably focused products that are made from renewable resources. Karat Packaging also offers customized solutions, including new product development and design, printing, and logistics services. To learn more about Karat Packaging, please visit the Company’s website at www.karatpackaging.com. Investor Relations and Media Contacts: PondelWilkinson Inc. Judy Lin or Roger Pondel 310-279-5980 [email protected]

Karat Packaging has had an impressive run over the past six months as its shares have beaten the S&P 500 by 7.8%. The stock now trades at $28.40, marking a 12.6% gain. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move. Is it too late to buy KRT? Find out in our full research report, it’s free. Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions. A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Karat Packaging’s sales grew at a solid 9.6% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. As you can see below, Karat Packaging’s margin expanded by 7.3 percentage points over the last five years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Karat Packaging’s free cash flow margin for the trailing 12 months was 6.3%. Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business. Sadly for Karat Packaging, its EPS declined by 7% annually over the last two years while its revenue grew by 7.4%. This tells us the company became less profitable on a per-share basis as it expanded. Karat Packaging’s merits more than compensate for its flaws, and with its shares beating the market recently, the stock trades at 14.1× forward P/E (or $28.40 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it's flagging for this m...

CHINO, Calif., April 23, 2026 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (“Karat” or the “Company”) (Nasdaq: KRT), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced it will release its 2026 first quarter after market close on Thursday, May 7, 2026. The Company will host an investor conference call on the same day. About Karat Packaging Inc. Karat Packaging Inc. is a specialty distributor and manufacturer of a wide range of disposable foodservice products and related items, primarily used by national and regional restaurants and in foodservice settings throughout the United States. Its products include food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves and other products. The Company’s eco-friendly Karat Earth® line offers quality, sustainably focused products that are made from renewable resources. Karat Packaging also offers customized solutions, including new product development and design, printing, and logistics services. To learn more about Karat Packaging, please visit the Company’s website at www.karatpackaging.com. Investor Relations and Media Contacts: PondelWilkinson Inc. Judy Lin or Roger Pondel 310-279-5980 [email protected]

Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Karat Packaging (NASDAQ:KRT) and its peers. Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes. The 8 specialty equipment distributors stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.8% since the latest earnings results. Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions. Karat Packaging reported revenues of $115.6 million, up 13.7% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. “We finished 2025 with a strong fourth quarter, demonstrating the strength and resilience of our business model and our ability to continue to drive profitable growth against an uncertain macroeconomic backdrop. We again achieved double-digit volume growth and our pricing turned positive for the first time since the first quarter of 2023,” said Alan Yu, Chief Executive Officer. Interestingly, the stock is up 22.6% since reporting and currently trades at $27.35. Is now the time to buy Karat Packaging? Access our full analysis of the earnings results here, it’s free. Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products. Richardson Electronics reported revenues of $52.29 million, up 5.7% year on year, outperforming analysts’ e...

Karat Packing (KRT) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Karat Packing, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $0.32 per share, which is a change of -3.0% from the year-ago reported number. Over the last 30 days, one estimate has moved higher for Karat Packing compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 29.17%. For the full year, the earnings estimate of $2.02 per share represents a change of +25.5% from the year-ago number. There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for Karat Packing versus no negative revisions. This has pushed the consensus estimate 23.75% higher. The promising estimate revisions have helped Karat Packing earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Karat Packing shares have added 6.9% over the past four weeks, suggesting that investors are betting...

Karat Packaging’s fourth quarter was marked by continued double-digit sales growth, driven by accelerated momentum in its paper bag segment and increased volume across all major customer channels. Management cited the combination of robust demand for eco-friendly products and the successful diversification of sourcing as key contributors to the performance. CEO Alan Yu highlighted, “Our ongoing efforts to diversify sourcing continue to deliver positive results,” referencing the company’s ability to navigate trade volatility and maintain profitable growth despite elevated tariff and duty costs. Is now the time to buy KRT? Find out in our full research report (it’s free). Revenue: $115.6 million vs analyst estimates of $113.9 million (13.7% year-on-year growth, 1.5% beat) Adjusted EPS: $0.34 vs analyst estimates of $0.28 (21.4% beat) Adjusted EBITDA: $12.5 million vs analyst estimates of $10.4 million (10.8% margin, 20.2% beat) Revenue Guidance for Q1 CY2026 is $113 million at the midpoint, below analyst estimates of $116 million Operating Margin: 7.5%, in line with the same quarter last year Market Capitalization: $554 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan Merkel (William Blair) asked if weather-related disruptions solely explained the slower growth outlook for next quarter. CEO Alan Yu confirmed that January and February storms in Texas and along the East Coast were the main cause and that sales momentum had returned in March. Ryan Meyers (Lake Street Capital Markets) questioned whether the full-year guidance included potential new business still in the pipeline. CEO Alan Yu replied that guidance was conservative, reflecting only confirmed opportunities, with upside possible if additional accounts materialize. Ryan Meyers (Lake Street Capital Markets) also sought clarification on margin guidance. CFO Jian Guo emphasized that gross margin is expected to increase year-over-year, even under the current tariff environment, due to sourcing and cost initiatives. Kyle Benvenuto (Bank of America) asked if energy and freight costs were included in margin guidance. CEO Alan Yu explained that full-year l...