CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents (including $1,557 and $1,488 associated with variable interest entity at March 31, 2026 and December 31, 2025, respectively)	$ 28,680	$ 37,880
Short-term investments	5,744	0
Accounts receivable, net of allowance for bad debt of $877 and $581 at March 31, 2026 and December 31, 2025, respectively	42,270	36,402
Inventories	80,009	81,682
Prepaid expenses and other current assets (including $318 and $314 associated with variable interest entity at March 31, 2026 and December 31, 2025, respectively)	4,333	5,224
Total current assets	161,036	161,188
Property and equipment, net (including $41,455 and $41,758 associated with variable interest entity at March 31, 2026 and December 31, 2025, respectively)	78,819	81,159
Deposits	3	0
Goodwill	3,510	3,510
Intangible assets, net	267	273
Operating right-of-use assets	37,586	40,299
Deferred tax asset	255	255
Other non-current assets (including $86 and $68 associated with variable interest entity at March 31, 2026 and December 31, 2025, respectively)	1,206	1,002
Total assets	282,682	287,686
Current liabilities
Accrued expenses (including $189 and $535 associated with variable interest entity at March 31, 2026 and December 31, 2025, respectively)	13,027	13,460
Income taxes payable	1,267	0
Deferred revenue	1,165	713
Long-term debt, current portion (including $12,714 and $12,941 associated with variable interest entity at March 31, 2026 and December 31, 2025, respectively)	12,714	12,941
Operating lease liabilities, current portion	12,323	11,982
Other current liabilities (including $51 and $49 associated with variable interest entity at March 31, 2026 and December 31, 2025, respectively)	111	129
Total current liabilities	70,351	70,220
Deferred tax liability	2,936	2,936
Long-term debt, net of current portion and debt discount of $63 and $78 at March 31, 2026 and December 31, 2025, respectively (including $22,688 and $22,862 associated with variable interest entity at March 31, 2026 and December 31, 2025, respectively, and debt discount of $63 and $78 associated with variable interest entity at March 31, 2026 and December 31, 2025, respectively)	22,688	22,862
Operating lease liabilities, net of current portion	28,827	32,074
Other non-current liabilities (including $1,216 and $1,224 associated with variable interest entity at March 31, 2026 and December 31, 2025 respectively)	2,707	2,724
Total liabilities	127,509	130,816
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 March 31, 2026 and December 31, 2025	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 20,124,105 and 19,963,731 shares issued and outstanding, respectively, as of March 31, 2026 and 20,122,505 and 19,962,131 shares issued and outstanding, respectively, as of December 31, 2025	20	20
Additional paid in capital	91,211	90,939
Treasury stock, $0.001 par value, 160,374 shares as of both March 31, 2026 and December 31, 2025	(3,246)	(3,246)
Retained earnings	59,462	61,704
Total Karat Packaging Inc. stockholders’ equity	147,447	149,417
Noncontrolling interest	7,726	7,453
Total stockholders’ equity	155,173	156,870
Total liabilities and stockholders’ equity	282,682	287,686
Nonrelated Party
Current liabilities
Accounts payable (including $97 associated with variable interest entity as of both March 31, 2026 and December 31, 2025, respectively)	24,282	26,323
Related Party
Current liabilities
Accounts payable (including $97 associated with variable interest entity as of both March 31, 2026 and December 31, 2025, respectively)	$ 5,462	$ 4,672