Assay
Financial-condition grades for SEC filers
Company Report · as of Oct 9, 2026
|
| Karat Packaging Inc.KRT · manufacturing | |
|---|---|
| Grade |  B/Con the B/C boundary of 255 graded peers; percentile 37.4, sampling error 3.0 points; lower is stronger |
| Rank | 96 of 255 |
| Profitability | Cpercentile 50.9 |
| Solvency | Bpercentile 26.1 |
| Growth and financing | C/Dpercentile 58.1 |
| Reliability | 0.87 AUCfailure model, filers with $120M to $591M assets; 95% interval 0.83 to 0.90; 206 events, 2020 to 2025 |
| Peer failure rate | 1.03% a yearItem 1.03 bankruptcies, same asset band, 2012 to 2025 |
| Size band | $120M to $591M assetstotal assets $287.7M[1] |
| Standard universe | insiderevenue above $1M and assets above $10M[1-2] |
| Warnings | none activenot computable: fortress balance sheet |
| Inputs computable | 11 of 14 |
| Graded from | filings received through Mar 13, 2026210 days before the rescan; every figure keyed to the SEC receipt date |
| Last close | $54.162026-10-08; market equity $1.1B; iex feed |
| Price used in grade | None |
| Share price, twelve months to the rescansplit-adjusted close; a lollipop at every rescan carries the letter held then; baseline ticks are SEC receipt dates of the inputs; ranges and dragging scroll the full history | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Percentile at every rescan on file, Jan 21, 2012 to Oct 9, 2026; stronger toward the top. Hover for the date. Open this report as it stood on | ||||||||||||||||||||||||||||||||||||
Each date opens the report as it stood on that rescan. |
Business, in the company's words. Opening of Item 1 of the 10-K received Mar 13, 2026; the document on sec.gov.
As used in this Annual Report on Form 10-K, “we”, “us”, “our”, “Karat”, “the Company” or “our Company” refer to Karat Packaging Inc., a Delaware corporation, and, unless the context requires otherwise, our operating subsidiaries. References to “Global Wells” or “our variable interest entity” refer to Global Wells Investment Group LLC, a Texas limited liability company and our consolidated variable interest entity, in which the Company has an equity interest and which is controlled by one of our stockholders. References to “Lollicup” refer to Lollicup USA Inc., our wholly-owned subsidiary incorporated in California in 2001 and redomesticated to the State of Texas in October 2025.
The Fourteen Inputs [top]
Lower percentile is stronger. Source numbers open the SEC filing; a range that spans filings opens the sources table.
| Input | Percentile, 0 to 100 | Value | Source | Peer median | Percentile | Peers | Period end |
|---|---|---|---|---|---|---|---|
| Profitability, sleeve percentile 50.9 | |||||||
| Gross profitability | 59.8% | [1,3] | 21.9% | 1.5 | 275 | 2025-12-31 | |
| Return on invested capital | not computable | 9.7% | |||||
| one or more required annual facts are missing | |||||||
| Accruals ratio | (0.8%) | [1,4-6] | (3.6%) | 75.2 | 308 | 2025-12-31 | |
| Gross margin stability, five years | 3.7 pts | [2-3,7-14] | 2.1 pts | 75.9 | 229 | 2025-12-31 | |
| Solvency, sleeve percentile 26.1 | |||||||
| Twelve-month failure probability | 0.01% | 0.04% | 0.0 | 34 | 2026-06-30 | ||
| Altman Z double-prime | 4.94 | [1,15-20] | 3.66 | 29.2 | 244 | 2025-12-31 | |
| Net debt to EBITDA | not computable | 1.78x | |||||
| one or more required annual facts are missing | |||||||
| Interest coverage | not computable | 5.09x | |||||
| latest aligned inputs end 2023-12-31; latest annual assets end 2025-12-31 | |||||||
| Current ratio | 2.30x | [15-16] | 2.25x | 49.1 | 325 | 2025-12-31 | |
| Growth and financing, sleeve percentile 58.1 | |||||||
| Revenue growth, three-year compound | 3.4% | [2,8,10,12] | 2.1% | 41.8 | 269 | 2025-12-31 | |
| Free cash flow growth, three-year compound | 7.2% | [5,21-27] | 13.9% | 63.8 | 139 | 2025-12-31 | |
| Reinvestment rate | (107.2%) | [15-16,18,21,28-32] | 26.4% | 93.5 | 139 | 2025-12-31 | |
| Asset growth, three years | 4.5% | [1,6,33-34] | 4.4% | 48.6 | 279 | 2025-12-31 | |
| Net share issuance, one year | (0.4%) | [35-36] | 0.01% | 43.0 | 243 | 2026-03-10 | |
Gross profitability. Revenue less cost of goods sold, over total assets.
Accruals ratio. Net income less operating cash flow, over average assets; lower is stronger.
Gross margin stability, five years. Standard deviation of gross margin; lower is stronger.
Twelve-month failure probability. CHS model; lower is stronger.
Net debt to EBITDA. Lower is stronger.
Net share issuance, one year. Split-adjusted; lower is stronger.
Sleeves are equal-weighted; within a sleeve each computable input carries equal weight. Composite -0.118; sampling error 3.0 percentile points on 255 peers.
Among 255 Peers [top]
Composite score of every graded peer, smoothed. Vertical rules are the letter band edges at the 20th, 40th, 60th and 80th percentiles. Small dots are the six largest peers by market equity.
| Rank | Company | Percentile | Letter | Warnings |
|---|---|---|---|---|
| 91 | Astec Industries Inc. (ASTE) Astec Industries Inc. (ASTE) Bsecond fifth; percentile 35.4 Nasdaq · Construction Machinery & Equip market equity $892.9M; last close $38.81 No active warnings; 10 of 14 inputs | 35.4 | B | |
| 92 | Perma-Pipe International Holdings, Inc. (PPIH) Perma-Pipe International Holdings, Inc. (PPIH) Bsecond fifth; percentile 35.8 Nasdaq · Industrial & Commercial Fans & Blowers & Air Purifing Equip market equity $255.4M; last close $31.15 Warnings: late filer, fortress balance sheet; 9 of 14 inputs | 35.8 | B | late filer, fortress balance sheet |
| 93 | Veeco Instruments Inc. (VECO) Veeco Instruments Inc. (VECO) Bsecond fifth; percentile 36.2 Nasdaq · Special Industry Machinery, NEC market equity $3.1B; last close $51.53 No active warnings; 12 of 14 inputs | 36.2 | B | |
| 94 | Parker-Hannifin Corp. (PH) Parker-Hannifin Corp. (PH) Bsecond fifth; percentile 36.6 NYSE · Miscellaneous Fabricated Metal Products market equity $119.4B; last close $946.61 No active warnings; 12 of 14 inputs | 36.6 | B | |
| 95 | Littelfuse Inc. (LFUS) Littelfuse Inc. (LFUS) Bsecond fifth; percentile 37.0 Nasdaq · Switchgear & Switchboard Apparatus market equity $10.8B; last close $425.22 Warnings: late filer; 11 of 14 inputs | 37.0 | B | late filer |
| 96 | Karat Packaging Inc. (KRT) Karat Packaging Inc. (KRT) B/Con the B/C boundary; percentile 37.4 Nasdaq · Plastics Products, NEC market equity $1.1B; last close $54.16 No active warnings; 11 of 14 inputs | 37.4 | B/C | |
| 97 | AZZ Inc. (AZZ) AZZ Inc. (AZZ) B/Con the B/C boundary; percentile 37.8 NYSE · Coating, Engraving & Allied Services market equity $4.1B; last close $136.43 No active warnings; 11 of 14 inputs | 37.8 | B/C | |
| 98 | Advanced Drainage Systems, Inc. (WMS) Advanced Drainage Systems, Inc. (WMS) B/Con the B/C boundary; percentile 38.2 NYSE · Plastics Foam Products market equity $9.5B; last close $126.22 No active warnings; 12 of 14 inputs | 38.2 | B/C | |
| 99 | United States Antimony Corp. (UAMY) United States Antimony Corp. (UAMY) B/Con the B/C boundary; percentile 38.6 NYSE · Primary Smelting & Refining of Nonferrous Metals market equity $556.8M; last close $3.71 Warnings: dilution, fortress balance sheet; 9 of 14 inputs | 38.6 | B/C | dilution, fortress balance sheet |
| 100 | Gibraltar Industries, Inc. (ROCK) Gibraltar Industries, Inc. (ROCK) B/Con the B/C boundary; percentile 39.0 Nasdaq · Steel Works, Blast Furnaces & Rolling & Finishing Mills market equity $1.1B; last close $37.45 Warnings: fortress balance sheet; 11 of 14 inputs | 39.0 | B/C | fortress balance sheet |
| 101 | Lightwave Logic, Inc. (LWLG) Lightwave Logic, Inc. (LWLG) B/Con the B/C boundary; percentile 39.4 Nasdaq · Miscellaneous Plastics Products market equity $787.8M; last close $5.13 No active warnings; 7 of 14 inputs | 39.4 | B/C |
| Peer policy | Letter | Percentile | Peers |
|---|---|---|---|
| all graded filers, equal sleeves | B | 31.8 | 2204 |
| sector peers, equal sleeves (the grade) | B/C | 37.4 | 255 |
| same exchange, equal sleeves | B | 30.1 | 1219 |
| sector peers, equal inputs | C | 46.9 | 255 |
Each letter is one fifth of the 255 graded peers, about 51 companies. A boundary letter (A/B, B/C, C/D, D/E) marks a percentile within one sampling error of a band edge.
What the Price Implies [top]
Market measures at the 2026-10-08 close. None enters the grade. Percentile among graded peers with the same measure.
| Measure | Value | Peer median | Percentile | Reading |
|---|---|---|---|---|
| Twelve-month price change, skipping the latest month | 101.9% | 13.7% | 93 | hotter than 93 of 100 peers |
| Distance from 52-week high | (1.6%) | (24.3%) | 97 | closer to its high than 97 of 100 peers |
| EBIT to enterprise value | not computable | 4.1% | required accounting or market input is missing | |
| Free cash flow yield | 3.1% | 3.4% | 46 | pricier than 54 of 100 peers |
| Book value to price | 0.16 | 0.34 | 19 | pricier than 81 of 100 peers |
| Sales to price | 0.44 | 0.54 | 39 | pricier than 61 of 100 peers |
| Composite equity issuance, five years | not computable | (9.5%) | a share count from five years earlier is required | |
| Relative strength against the sector, log excess return | 0.57 | (0.00) | 93 | ahead of 93 of 100 peers |
Inputs: market equity $1.1B; EBIT $41.4M; free cash flow $33.1M; book equity $166.5M; sales $467.7M; cash $38.4M[37].
Diagnostics [top]
Diagnostics do not feed the grade.
| Piotroski F-score: None of 9, period end 2025-12-31 | ||
|---|---|---|
| Return on assets above zero | 10.7% | ✓ pass[4,6] |
| Operating cash flow above zero | $33.8M | ✓ pass[5] |
| Return on assets improved | (0.2 pts) | ✗ fail[4,6,33,38] |
| Operating cash flow exceeds net income | $2.3M | ✓ pass[4-5] |
| Long-term leverage fell | n/a[1,6,33] | |
| Current ratio improved | (117.1 pts) | ✗ fail[15-16,31-32] |
| No new shares issued | (0.4%) | ✓ pass[35-36] |
| Gross margin improved | (2.1 pts) | ✗ fail[2-3,7-8] |
| Asset turnover improved | 5.9 pts | ✓ pass[2,6,8,33] |
| Cash, filings, liquidity | |
|---|---|
| Cash and equivalents | $38.4M[39] |
| Operating cash flow, four quarters | $56.7M[5,39-43] |
| Months of runway | not finite |
| trailing operating cash flow is nonnegative, so runway is not finite | |
| Late filings, two years | 0 |
| NT 10-K or NT 10-Q | |
| Days since last periodic filing | 63 |
| 10-Q received Aug 7, 2026 | |
| Median daily dollar volume | $5.9M |
| 63 sessions | |
| Days since newest grade input | 210 |
Downloads [top]
|
Sources [top]
Every citation on this page. Filing opens the SEC index page for that submission; viewer opens the SEC interactive data for the same filing; series opens the SEC XBRL API record for that tag and company.
| # | Concept | XBRL tag | Value | Period end | Received | Form | Links |
|---|---|---|---|---|---|---|---|
| 1 | assets | us-gaap:Assets | $287.7M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 2 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $467.7M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 3 | gross profit | us-gaap:GrossProfit | $172.1M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 4 | net income | us-gaap:NetIncomeLoss | $31.5M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 5 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $33.8M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 6 | assets | us-gaap:Assets | $294.5M | 2024-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 7 | gross profit | us-gaap:GrossProfit | $164.3M | 2024-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 8 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $422.6M | 2024-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 9 | gross profit | us-gaap:GrossProfit | $153.0M | 2023-12-31 | 2025-03-14 | 10-K | filing · viewer · series |
| 10 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $405.7M | 2023-12-31 | 2025-03-14 | 10-K | filing · viewer · series |
| 11 | gross profit | us-gaap:GrossProfit | $132.1M | 2022-12-31 | 2024-03-15 | 10-K | filing · viewer · series |
| 12 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $423.0M | 2022-12-31 | 2024-03-15 | 10-K | filing · viewer · series |
| 13 | gross profit | us-gaap:GrossProfit | $107.8M | 2021-12-31 | 2023-03-16 | 10-K | filing · viewer · series |
| 14 | revenue | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax | $364.2M | 2021-12-31 | 2023-03-16 | 10-K | filing · viewer · series |
| 15 | current assets | us-gaap:AssetsCurrent | $161.2M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 16 | current liabilities | us-gaap:LiabilitiesCurrent | $70.2M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 17 | retained earnings | us-gaap:RetainedEarningsAccumulatedDeficit | $61.7M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 18 | operating income | us-gaap:OperatingIncomeLoss | $41.4M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 19 | book equity | us-gaap:StockholdersEquity | $149.4M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 20 | liabilities | us-gaap:Liabilities | $130.8M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 21 | capital expenditure | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | $756,000 | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 22 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $48.0M | 2024-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 23 | capital expenditure | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | $934,000 | 2024-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 24 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $53.4M | 2023-12-31 | 2025-03-14 | 10-K | filing · viewer · series |
| 25 | capital expenditure | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | $2.8M | 2023-12-31 | 2025-03-14 | 10-K | filing · viewer · series |
| 26 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $29.5M | 2022-12-31 | 2024-03-15 | 10-K | filing · viewer · series |
| 27 | capital expenditure | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | $2.7M | 2022-12-31 | 2024-03-15 | 10-K | filing · viewer · series |
| 28 | depreciation amortization | us-gaap:DepreciationDepletionAndAmortization | $10.9M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 29 | pretax income | us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest | $43.0M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 30 | income tax | us-gaap:IncomeTaxExpenseBenefit | $10.4M | 2025-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 31 | current assets | us-gaap:AssetsCurrent | $161.0M | 2024-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 32 | current liabilities | us-gaap:LiabilitiesCurrent | $46.4M | 2024-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 33 | assets | us-gaap:Assets | $276.4M | 2023-12-31 | 2025-03-14 | 10-K | filing · viewer · series |
| 34 | assets | us-gaap:Assets | $252.2M | 2022-12-31 | 2024-03-15 | 10-K | filing · viewer · series |
| 35 | shares outstanding | dei:EntityCommonStockSharesOutstanding | 19,963,731 | 2026-03-10 | 2026-03-13 | 10-K | filing · viewer · series |
| 36 | shares outstanding | dei:EntityCommonStockSharesOutstanding | 20,036,505 | 2025-03-10 | 2025-03-14 | 10-K | filing · viewer · series |
| 37 | shares outstanding | dei:EntityCommonStockSharesOutstanding | 19,931,721 | 2026-08-04 | 2026-08-07 | 10-Q | filing · viewer · series |
| 38 | net income | us-gaap:NetIncomeLoss | $30.0M | 2024-12-31 | 2026-03-13 | 10-K | filing · viewer · series |
| 39 | cash | us-gaap:CashAndCashEquivalentsAtCarryingValue | $38.4M | 2026-06-30 | 2026-08-07 | 10-Q | filing · viewer · series |
| 40 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $40.3M | 2026-06-30 | 2026-08-07 | 10-Q | filing · viewer · series |
| 41 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $7.2M | 2026-03-31 | 2026-05-08 | 10-Q | filing · viewer · series |
| 42 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $18.5M | 2025-09-30 | 2025-11-07 | 10-Q | filing · viewer · series |
| 43 | operating cash flow | us-gaap:NetCashProvidedByUsedInOperatingActivities | $17.5M | 2025-06-30 | 2026-08-07 | 10-Q | filing · viewer · series |
Limitations [top]
Grade boundary. Percentile 37.4 is 2.6 points from the nearest band edge; sampling error is 3.0 points.
Peer group. Sector assignment from four-digit SIC codes, hand-tuned and published. The grade under three alternative peer policies is tabled above.
Size. Within a sector the letter tracks size. Among graded filers in the smallest asset band, 72% grade E and 0% grade A; in the largest, 13% grade E and 21% grade A. Universe as of Oct 9, 2026.
Failure model. filings 2012-01-01 to 2019-12-31 fit, filings 2020-01-01 to 2025-12-31 test; status post hoc pending confirmation. pre-registered on 2026 filings once their 12-month outcome windows close; supported if the paired per-quintile gain over the pooled model has a lower bound above 0.05.
Input validity. Revenue or total assets at or below $100,000 sets the degenerate-inputs flag. An input whose denominator is at or below $100,000 is left not computable rather than ranked.
Returns. No input on this page has a post-2015 confidence interval on returns that excludes zero. The grade ranks reported financial condition and is not a return forecast.
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