Company Expects Q2 2026 Adjusted EBITDA Margin to Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy KRT?
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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Analyst Views on KRT
Wall Street analysts forecast KRT stock price to rise
3 Analyst Rating
1 Buy
1 Hold
1 Sell
Hold
Current: 27.920
Low
22.00
Averages
28.50
High
35.00
Current: 27.920
Low
22.00
Averages
28.50
High
35.00
About KRT
Karat Packaging Inc. is a specialty distributor and manufacturer of a range of disposable foodservice products and related items, primarily used by national and regional restaurants and in foodservice settings across the United States. The Company classifies its customers into four categories. Distributors include national and regional distributors across the United States that purchase their products and provide a channel to offer their products to restaurants, offices, schools, government entities and other end users. National and regional chains typically include fast casual, fast-food restaurants and supermarket chains with locations across multiple states to which they supply specified products. Retail primarily includes regional bubble tea shops and frozen yogurt shops that often purchase their specialty beverage ingredients and related items. E-commerce/Online includes small businesses, often with only one or two locations, as well as customers who purchase for personal use.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Diversified Sourcing Strategy: The company is effectively navigating the evolving tariff landscape by diversifying its sourcing to South America and the U.S., a strategy that not only mitigates operational risks but also supports future growth prospects.
- Demand for Eco-Friendly Products: Karat's eco-friendly packaging offerings are in high demand, and the company continues to innovate with a steady stream of new products, enhancing its appeal in a competitive market, while its nearly 7% dividend yield provides investors with stable returns.
See More
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- Positive Stock Reaction: Following the sales growth announcement, Karat's shares surged by 17.9% as of 1:35 p.m. ET, reflecting investor optimism about the company's future prospects and bolstering market confidence.
- Diversified Supply Chain Strategy: The company is actively expanding its supply chain beyond Asia to include South America and the U.S. to navigate the evolving tariff landscape, a strategy that helps reduce costs and enhance competitiveness.
- Attractive Dividend Yield: Even after the stock price increase, Karat continues to offer a nearly 7% dividend yield, maintaining its appeal among investors, particularly in the current uncertain macroeconomic environment.
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