CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2025	Dec. 31, 2024
Current assets
Cash and cash equivalents (including $1,437 and $1,703 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	$ 24,022	$ 31,584
Short-term investments (including $7,935 and $11,128 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	19,946	28,343
Accounts receivable, net of allowance for bad debt of $559 and $758 at September 30, 2025 and December 31, 2024, respectively	37,868	26,736
Inventories	84,134	70,722
Prepaid expenses and other current assets (including $159 and $27 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	4,709	3,612
Total current assets	170,679	160,997
Property and equipment, net (including $42,061 and $42,972 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	84,168	87,982
Deposits	2	36
Goodwill	3,510	3,510
Intangible assets, net	280	300
Operating right-of-use assets	42,969	40,628
Deferred tax asset	196	0
Other non-current assets (including $54 and $34 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	1,033	1,069
Total assets	302,837	294,522
Current liabilities
Accrued expenses (including $400 and $489 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	16,210	13,555
Income taxes payable (including $0 and $3 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	0	65
Deferred revenue	1,116	742
Long-term debt, current portion (including $21,100 and $1,179 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	21,100	1,179
Operating lease liabilities, current portion	11,647	8,977
Line of credit	1,000	0
Other current liabilities (including $48 and $916 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	139	968
Total current liabilities	79,604	46,447
Deferred tax liability	622	426
Long-term debt, net of current portion and debt discount of $70 and $141 at September 30, 2025 and December 31, 2024, respectively (including $23,031 and $47,279 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively, and debt discount of $70 and $141 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	23,031	47,279
Operating lease liabilities, net of current portion	35,252	35,435
Other non-current liabilities (including $1,233 and $1,198 associated with variable interest entity at September 30, 2025 and December 31, 2024 respectively)	2,742	2,736
Total liabilities	141,251	132,323
Commitments and Contingencies (Note 14)
Karat Packaging Inc. stockholders’ equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding, as of both September 30, 2025 and December 31, 2024	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 20,120,505 and 20,097,505 shares issued and outstanding, respectively, as of September 30, 2025 and 20,059,505 and 20,036,505 shares issued and outstanding, respectively, as of December 31, 2024	20	20
Additional paid in capital	90,800	89,457
Treasury stock, $0.001 par value, 23,000 shares as of both September 30, 2025 and December 31, 2024	(248)	(248)
Retained earnings	63,909	66,340
Total Karat Packaging Inc. stockholders’ equity	154,481	155,569
Noncontrolling interest	7,105	6,630
Total stockholders’ equity	161,586	162,199
Total liabilities and stockholders’ equity	302,837	294,522
Nonrelated Party
Current liabilities
Accounts payable (including $97 and $16 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	25,272	17,831
Related Party
Current liabilities
Accounts payable (including $97 and $16 associated with variable interest entity at September 30, 2025 and December 31, 2024, respectively)	$ 3,120	$ 3,130