Karat Packaging Misses Q3 2026 Estimates as Revenue Rises 8.2% to $134.7M
Revenue of $134.7M vs. $140.3M expected and adjusted EPS of $0.24 vs. $0.41; revenue up 8.2% from a year earlier.
Karat Packaging (KRT) missed estimates for the third quarter of 2026 on both revenue and adjusted EPS. Revenue was $134.7 million, up 8.2% from a year earlier, below the $140.3 million estimate, and adjusted EPS was $0.24, down 35% from a year earlier, below the $0.41 estimate.
Shares fell 11% in after-hours trading as of 5:13 p.m. ET, to $46.01 from a $51.44 close.
Q3 2026 scorecard
| Parameters | Expected | Actual | Beat/Miss |
|---|---|---|---|
| Adjusted EPS | $0.41 | $0.24 | Miss by 42% |
| Revenue | $140.3M | $134.7M | Miss by 4.0% |
| Change | YoY | QoQ |
|---|---|---|
| Adjusted EPS | ▼ 35% | ▼ 84% |
| Revenue | ▲ 8.2% | ▼ 1.1% |
By our calculation, revenue was $5.6 million below the estimate and adjusted EPS was $0.17 below it. The QoQ column compares with the previous quarter's revenue of $136.3 million and adjusted EPS of $1.48. The YoY column compares with $124.5 million and $0.37 in the same quarter a year earlier.
GAAP results
- GAAP EPS. GAAP diluted EPS was $0.22, against $0.36 a year earlier.
- Net income. The company reported net income of $4.4 million on a GAAP basis, compared with net income of $7.3 million a year earlier.
Track record
- EPS record. Adjusted EPS beat the estimate in 4 of the last 8 reports, including this one.
- Revenue record. Revenue beat the estimate in 4 of the last 8 reports.
- Revenue trend. Revenue over the last 5 reports, oldest first: $124.5 million, $115.6 million, $116.9 million, $136.3 million and $134.7 million.
What to watch
- Next-quarter estimates. Consensus calls for EPS of $0.44 and revenue of $131.4 million next quarter, based on 1 analyst.
- Revenue growth. Whether revenue keeps growing from a year earlier after this quarter's 8.2% increase to $134.7 million.
- Estimate record. Whether Karat Packaging extends a record of beating EPS estimates in 4 of its last 8 reports.
- Related coverage. See our reports on NuScale Power, Silvercorp Metals, MasterBrand and Mach Natural Resources.
Sources: Results are from Karat Packaging's Nov. 5, 2026 quarterly report. Estimates are consensus figures. The prior-quarter and year-ago comparison figures are from Karat Packaging's earlier quarterly reports. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
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