Karat Packaging
Supplies disposable cups, lids, and eco-friendly packaging to restaurant chains and boba shops nationwide.
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Profile
Supplies disposable cups, lids, containers, and other foodservice packaging to restaurants, cafes, and retailers, pairing imported goods with select US manufacturing and a compostable-alternatives line established well before eco-friendly packaging became standard. Sourcing has shifted from China toward Taiwan and Southeast Asia as tariffs reshaped costs.
Distributes and, on a smaller scale, manufactures disposable foodservice packaging -- cups, lids, containers, cutlery, straws, and gloves -- for restaurants, cafes, and retail chains under an in-house brand. A companion eco-friendly line of compostable alternatives, launched years before compostable packaging became a mainstream expectation, sits alongside a bubble-tea ingredients brand and a separate janitorial-supplies line.
Products reach customers through wholesale distributors, national restaurant chains, independent retail shops, and a direct e-commerce storefront alongside major online marketplaces. The business grew out of a bubble-tea cafe chain that was later sold off, and its founders still run the company day to day.
Sourcing has shifted from China toward Taiwan and Southeast Asia as import tariffs became a persistent cost pressure, supplemented by select US manufacturing and a network of distribution centers across the country.
Company facts
Categories
Key statistics
Year to date +119% · Average volume (30d) 146.8K
Analysts
Ratings
Target range
Latest analyst notes
| Date | Firm | Action | Prior rating | Rating | Target |
|---|---|---|---|---|---|
| Jun 4, 2026 | William Blair | Upgrade | Market Perform | Outperform | |
| May 8, 2026 | Lake Street | Target | $39 | ||
| Mar 13, 2026 | Piper Sandler | Target | $24 | ||
| Nov 17, 2025 | B of A Securities | Downgrade | Buy | Underperform | |
| Jan 2, 2025 | William Blair | Downgrade | Outperform | Market Perform |
Earnings
EPS
Revenue
History
| Report date | EPS est | EPS | Surprise | Revenue est | Revenue | Surprise | Next session |
|---|---|---|---|---|---|---|---|
| Aug 6, 2026Q2 FY26 | $0.47 | $1.48 | +214.9% | $135.5M | $136.3M | +0.6% | +11.14% |
| May 7, 2026Q1 FY26 | $0.32 | $0.34 | +6.3% | $113.0M | $116.9M | +3.5% | −7.69% |
| Mar 12, 2026Q4 FY25 | $0.28 | $0.34 | +23.3% | $113.9M | $115.6M | +1.5% | +20.66% |
| Nov 6, 2025Q3 FY25 | $0.39 | $0.37 | −5.1% | $113.9M | $124.5M | +9.3% | −6.25% |
Financial highlights
| 12 quarters | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | |
|---|---|---|---|---|---|---|---|
| Revenue | $103.6M | $124.0M | $124.5M | $115.6M | $116.9M | $136.3M | |
| Gross profit | $40.8M | $49.1M | $42.9M | $39.3M | $40.4M | $77.2M | |
| Operating income | $7.8M | $16.6M | $8.6M | $8.7M | $8.5M | $37.6M | |
| Net income | $6.4M | $10.9M | $7.3M | $6.8M | $6.7M | $29.3M | |
| Diluted EPS | $0.32 | $0.54 | $0.36 | $0.34 | $0.34 | $1.46 | |
| Gross margin | 39.3% | 39.6% | 34.5% | 34.0% | 34.5% | 56.6% | |
| Operating margin | 7.5% | 13.3% | 6.9% | 7.5% | 7.2% | 27.6% |
Fiscal years (4-quarter sums)FY21 $364.2M · FY22 $423.0M · FY23 $405.7M · FY24 $422.6M · FY25 $467.7M
Revenue by product · Q2 FY26
Balance sheet, Jun 30, 2026Cash & short-term investments $54.1M · Total debt $72.7M · Total assets $316.8M · Shareholders' equity $166.5M
Dividends
Raised for 2 straight years — most recently to $0.47 from $0.45 in Aug 2026. To collect a payout, hold shares through the close before the ex-date.
History
| Ex-date | Record | Paid | Amount | Note |
|---|---|---|---|---|
| Aug 21, 2026 | Aug 21 | Aug 28 | $0.47 | raised from $0.45 |
| May 21, 2026 | May 21 | May 28 | $0.45 | |
| Feb 20, 2026 | Feb 20 | Feb 27 | $0.45 | |
| Nov 21, 2025 | Nov 21 | Nov 28 | $0.45 | |
| Aug 20, 2025 | Aug 20 | Aug 27 | $0.45 | |
| May 16, 2025 | May 16 | May 23 | $0.45 | |
| Feb 24, 2025 | Feb 24 | Feb 28 | $0.45 | raised from $0.40 |
| Nov 20, 2024 | Nov 20 | Nov 29 | $0.40 | raised from $0.35 |
Ownership
Shares outstanding 19.96M · Float 8.53M · 42.7% free float
Top shareholders13F · 13D/G · Form 4
| Holder | Shares | % outstanding | Form | Filed |
|---|---|---|---|---|
| Alan Yu · director, 10 percent owner, officer: Chief Executive Officer | 6.10M | 30.54% | Form 4 | May 15, 2026 |
| Marvin Cheng · 10 percent owner, officer: VP-Manufacturing, Secy | 5.26M | 26.35% | Form 4 | Aug 21, 2026 |
| BlackRock, Inc. | 569.0K | 2.85% | 13F | May 13, 2026 |
| Vanguard Capital Management LLC | 387.9K | 1.94% | 13F | May 15, 2026 |
| Ranger Investment Management, L.P. | 325.1K | 1.63% | 13F | May 15, 2026 |
Insider tradesForm 4
| Date | Insider | Role | Shares | Avg price |
|---|---|---|---|---|
| Aug 20, 2026 | Marvin Cheng | 10 percent owner, officer: VP-Manufacturing, Secy | −4,500 | $47.33 |
| Nov 12, 2025 | Jian Guo | director, officer: Chief Financial Officer | +1,361 | $22.11 |
Peers
- Sysco
Largest US broadline distributor bundling packaging with food orders
- Amcor
Global packaging giant whose foodservice arm descends from Berry Global
- Graphic Packaging
QSR cups, lids and food containers made by a global paperboard packaging giant
CompareAfter-hours close
| Company | Price | Change | |||||
|---|---|---|---|---|---|---|---|
| Karat Packaging | $49.01 | −0.06% | $980.4M | 19.6 | 25.6 | 2.0 | +9.9% |
| Sysco | $82.10 | +0.20% | $39.18B | 22.4 | 16.2 | 0.5 | +4.7% |
| Amcor | $46.80 | +0.28% | $21.58B | 19.6 | 10.7 | 0.9 | +25.9% |
| Graphic Packaging | $11.58 | +0.22% | $3.42B | 17.5 | 12.4 | 0.4 | −0.7% |
| Median | 19.6 | 12.4 | 0.5 | +4.7% |