Karat Packaging | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 124.52 M

LB filings
2025.11.07 18:23
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Revenue: As of FY2025 Q3, the actual value is USD 124.52 M, beating the estimate of USD 124.5 M.

EPS: As of FY2025 Q3, the actual value is USD 0.36, missing the estimate of USD 0.37.

EBIT: As of FY2025 Q3, the actual value is USD 8.697 M.

Segment Revenue

  • Net Sales: $124.5 million for the three months ended September 30, 2025, compared to $112.8 million for the same period in 2024, an increase of $11.7 million or 10.4%.
  • Net Sales: $352.1 million for the nine months ended September 30, 2025, compared to $321.0 million for the same period in 2024, an increase of $31.1 million or 9.7%.

Operational Metrics

  • Gross Profit: $42.9 million for the three months ended September 30, 2025, compared to $43.5 million for the same period in 2024, a decrease of $0.6 million or 1.3%.
  • Gross Margin: 34.5% for the three months ended September 30, 2025, compared to 38.6% for the same period in 2024, a decrease of 410 basis points.
  • Operating Income: $8.6 million for the three months ended September 30, 2025, compared to $11.3 million for the same period in 2024, a decrease of $2.7 million or 23.9%.
  • Net Income: $7.6 million for the three months ended September 30, 2025, compared to $9.3 million for the same period in 2024, a decrease of $1.7 million or 17.9%.
  • Net Income Margin: 6.1% for the three months ended September 30, 2025, compared to 8.2% for the same period in 2024.

Cash Flow

  • Net Cash Provided by Operating Activities: $18.5 million for the nine months ended September 30, 2025, compared to $39.7 million for the same period in 2024, a decrease of 53.5%.
  • Free Cash Flow: $14.7 million for the nine months ended September 30, 2025, compared to $36.4 million for the same period in 2024.

Unique Metrics

  • Adjusted EBITDA: $13.1 million for the three months ended September 30, 2025, compared to $14.7 million for the same period in 2024, a decrease of 11.3%.
  • Adjusted EBITDA Margin: 10.5% for the three months ended September 30, 2025, compared to 13.0% for the same period in 2024.

Future Outlook and Strategy

  • Core Business Focus: The company is focusing on strengthening supply chain resilience and efficiency by prioritizing strong partnerships with reliable and cost-efficient sources and diversifying sourcing to countries with more favorable trade conditions and minimal tariffs.
  • Non-Core Business: On November 4, 2025, the Board of Directors approved a share repurchase program of up to $15.0 million in common stock.
  • Priority: The company aims to mitigate cost pressures from higher tariffs through price adjustments and strategic domestic manufacturing scalability.
Source: LB filings The copyright of this article belongs to the original author/organization.
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