KRT News & Events

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."

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.