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Company Reports Q Revenue of $136.3M, Exceeds Consensus
Reports Q revenue $136.3M, consensus $135.46M.
Company Reports Q1 Revenue of $116.95M, Beating Consensus
Reports Q1 revenue $116.95M, consensus $112.98M. "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."
Karat Expects Gross Margin and EBITDA to Improve in 2026
Gross margin and adjusted EBITDA margin for full year 2026 expected to continue to improve compared with the prior year, under current global tariff policy. "Our new paper bags product category continues to perform strongly, expanding steadily and generating meaningful revenue growth. In 2025, we won a significant paper bag contract with one of our largest national chain accounts, and we are actively pursuing further opportunities, some of which are at the final confirmation stage. We are also strengthening this category by supplying generic paper bags to smaller customer accounts, and we expect to continue gaining market share in this category in the coming years. In today's dynamic trade environment, we are confident that Karat's proven global sourcing flexibility and efficient logistics capabilities will support a solid growth trajectory," Yu added.
Company Reports Q4 Revenue of $115.62M, Beating Consensus
Reports Q4 revenue $115.62M, consensus $113.95M. "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. "Our strategy to diversify sourcing is proving successful, enabling us to continue to strengthen our global supply chain and maintain a 34 percent gross margin, despite significantly higher tariffs and duty costs."
Company Expects Q2 2026 Adjusted EBITDA Margin to Rise
Sees Q1 adjusted EBITDA margin up low double-digits. The company said, "We continue to closely monitor tariff and foreign currency developments and adjust our global supply chain as appropriate. During the fourth quarter of 2025, 46 percent of our goods were sourced from Taiwan, 14 percent from China, 13 percent from the United States, and 11 percent each from Vietnam and Malaysia. Following the recent U.S. Supreme Court ruling on tariffs and the stabilization of the U.S. Dollar and New Taiwan Dollar exchange rates, we expect tailwinds on the margin to be realized beginning in the second quarter of 2026."
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