Karat Packaging Inc.
For the period ended Dec 31, 2025. Filed Mar 13, 2026.
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FY2025 · Filed Mar 13, 2026
KRT$37.79+3.5%Stored close · as of Nov 10, 2026
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Item 8. Consolidated Statements of Cash Flows
KARAT PACKAGING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Year Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Cash flows from operating activities | ||
| Net income | $32,664 | $30,824 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization (including $1,214 and $1,213 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | 10,891 | 10,675 |
| Adjustments to allowance for bad debt | 168 | 468 |
| Adjustments to inventory reserve | 70 | 290 |
| Write-off of inventories | 917 | 1,458 |
| Impairment of operating right-of-use asset | — | 1,993 |
| (Gain) loss, net, on disposal of property and equipment | (493) | 759 |
| Amortization of loan fees (including $62 associated with variable interest entity for both the year ended December 31, 2025 and 2024) | 125 | 92 |
| Accrued interest on certificates of deposit (including $0 and $50 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | — | (50) |
| Stock-based compensation | 1,182 | 2,065 |
| Amortization of operating right-of-use assets | 10,227 | 7,622 |
| Deferred income taxes | 2,255 | (3,771) |
| Government grant income (including $33 and $187 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | (70) | (360) |
| (Increase) decrease in operating assets | ||
| Accounts receivable (including $4 and $32 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | (9,834) | 559 |
| Inventories | (11,947) | (942) |
| Prepaid expenses and other current assets (including $255 and $23 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | (1,343) | 2,776 |
| Other non-current assets (including $35 and $20 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | 15 | (79) |
| Increase (decrease) in operating liabilities | ||
| Accounts payable (including $53 and $47 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | 7,791 | (260) |
| Accrued expenses (including $46 and $102 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | (95) | 2,979 |
| Related party payable | 1,542 | (2,176) |
| Income taxes payable (including $0 and 3 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | (65) | 65 |
| Deferred revenue | (29) | (281) |
| Operating lease liabilities | (10,254) | (6,679) |
| Other liabilities (including $66 and $0 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | 98 | (45) |
| Net cash provided by operating activities | $33,815 | $47,982 |
| Year Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Cash flows from investing activities | ||
| Purchases of property and equipment | (756) | (934) |
| Proceeds from disposal of property and equipment | 1,509 | 134 |
| Deposits paid for property and equipment | (3,749) | (3,134) |
| Purchases of publicly-traded equity securities | (451) | 29 |
| Proceeds from disposal of publicly-traded equity securities | 503 | — |
| Purchases of short-term investments (including $7,982 and $18,078 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | (16,300) | (50,806) |
| Redemption of short-term investments (including $19,110 and $7,000 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | 44,643 | 48,856 |
| Net cash provided by (used in) investing activities | $25,399 | $(5,855) |
| Cash flows from financing activities | ||
| Payments on long-term debt (including $12,717 and $1,122 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | (12,717) | (1,122) |
| Payments for lender fees | (147) | — |
| Proceeds from line of credit | 4,500 | — |
| Repayments on line of credit | (4,500) | — |
| Proceeds from exercise of common stock options | 300 | 725 |
| Repurchases of common stock | (2,998) | — |
| Dividends paid to shareholders | (36,100) | (31,016) |
| Payment of Global Wells membership interest tax withholding (including $362 and $0 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | (377) | — |
| Payment of Global Wells noncontrolling membership interest redemption (including $0 and $2,010 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | — | (2,326) |
| Refund of Global Wells members' tax withholding payments (including $0 and $120 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | — | 120 |
| Payment of Global Wells noncontrolling membership interest redemption gain tax withholding (including $879 and $0 associated with variable interest entity for the year ended December 31, 2025 and 2024, respectively) | (879) | — |
| Net cash used in financing activities | $(52,918) | $(33,619) |
| Net increase in cash and cash equivalents | $6,296 | $8,508 |
| Cash and cash equivalents | ||
| Beginning of period | $31,584 | $23,076 |
| End of period | $37,880 | $31,584 |
| Supplemental disclosures of non-cash investing and financing activities: | ||
| Transfers from deposits to property and equipment | $3,785 | $3,708 |
| Non-cash purchases of property and equipment | $962 | $122 |
| Non-cash disposal of property and equipment | $480 | $— |
| Non-cash excise tax on share repurchases | $12 | $— |
| Supplemental disclosures of cash flow information: | ||
| Cash paid for income taxes | $9,136 | $10,969 |
| Cash paid for interest | $1,910 | $2,031 |
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