Lumida
/KRT
⌘K
Karat Packaging Inc

Karat Packaging Inc

KRT
$38.09USD↑+1.25%+0.47 today

MARKET CAP

760.4M

P/E (TTM)

23.5x

FWD P/E

22.1x

DAY RANGE

$37 – $38

52W RANGE

$21
$38

AI Summary

Stalk
StalkMedium

The asset remains in a constructive Stage 2 uptrend, holding above its rising EMAs and 50 DMA with successive higher highs and higher lows backed by Bullish Pivot Point dynamics. Short-term extension above the EMAs and moderate overbought conditions suggest timing is less favorable for new entries. We will wait for pullbacks into the rising 21/50 EMA zone near prior resistance to show acceptance before engaging.

  • ↑Net sales grew 12.9% YoY to $116.9M in Q1 2026, driven by online channels.
  • ↑Eco-friendly product revenue surged 16.9% YoY, aligning with sustainability trends.
  • ↓Gross margin compressed to 35.5% from 39.3% YoY due to tariffs.
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The case for & against

Bull & Bear analysis

Bearish

Karat Packaging Inc. (NASDAQ: KRT) operates in the packaging industry, specializing in environmentally friendly disposable food service products. With a strong foothold in the e-commerce sector and a growing demand for sustainable packaging solutions, the company is well-positioned to capitalize on shifting consumer preferences and increasing regulations favoring eco-friendly materials. Karat’s focus on expanding its market share amid a competitive landscape highlights its strategic growth initiatives in a rapidly evolving market.

Bull says

  • ↑Net sales grew 12.9% YoY to $116.9M in Q1 2026, driven by online channels.
  • ↑Eco-friendly product revenue surged 16.9% YoY, aligning with sustainability trends.
  • ↑Maintains $0.45 quarterly dividend (0.94% yield), underlining shareholder returns.
  • ↑Projects gross margins of 35–37% for Q2 2026 via pricing and tariff cuts.
  • ↑Plans 50+ new SKUs in paperback line, targeting $100M incremental revenue.
  • ↑Strong earnings yield, profitability, and positive analyst revisions signal upside.

Bear says

  • ↓Gross margin compressed to 35.5% from 39.3% YoY due to tariffs.
  • ↓Size and liquidity constraints may hinder capital access and scaling.
  • ↓Short interest is elevated, indicating bearish investor sentiment and volatility risk.
  • ↓Revenue relies heavily on online channels, exposing growth to demand shifts.
  • ↓Intense competition in sustainable packaging may pressure pricing and margins.
  • ↓Negative analyst revisions and high volatility signal caution for future performance.

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 05-30-2026neutral

Transcript signals

Bull points

  • volume grew 10.9% year-over-year.
  • Gross profit for the 2025 first quarter increased 8.4% to $40.8 million from $37.6 million in the prior year quarter.
  • Net income for the 2025 first quarter increased 5.2% to $6.8 million from $6.5 million in the prior year quarter.

Bear points

  • Operating income for the 2025 first quarter was $7.8 million versus $8.1 million in the prior year quarter.
  • Adjusted EBITDA for the 2025 first quarter was $11.9 million, compared with $13.5 million for the prior year quarter.
  • And due to the recent imposed extreme tariffs, we have temporarily suspended imports for most vendors in China starting mid-April.
Read full transcript analysis ›