CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents (including $1,350 and $1,488 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively)	$ 38,399	$ 37,880
Short-term investments	15,744	0
Accounts receivable, net of allowance for bad debt of $1,009 and $581 at June 30, 2026 and December 31, 2025, respectively (including $0 and $4 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively)	49,208	36,402
Inventories	89,085	81,682
Prepaid expenses and other current assets (including $322 and $314 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively)	6,906	5,224
Total current assets	199,342	161,188
Property and equipment, net (including $41,152 and $41,758 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively)	77,418	81,159
Goodwill	3,510	3,510
Intangible assets, net	260	273
Operating right-of-use assets	34,800	40,299
Deferred tax assets	255	255
Other non-current assets (including $98 and $68 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively)	1,228	1,002
Total assets	316,813	287,686
Current liabilities
Accrued expenses (including $324 and $535 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively)	15,940	13,460
Income taxes payable	5,705	0
Deferred revenue	1,054	713
Long-term debt, current portion (including $12,084 and $12,941 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively)	12,084	12,941
Operating lease liabilities, current portion	12,270	11,982
Other current liabilities (including $43 and $49 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively)	111	129
Total current liabilities	88,551	70,220
Deferred tax liabilities	2,936	2,936
Long-term debt, net of current portion and debt discount of $46 and $78 at June 30, 2026 and December 31, 2025, respectively (including $22,518 and $22,862 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively, and debt discount of $46 and $78 associated with variable interest entity at June 30, 2026 and December 31, 2025, respectively)	22,518	22,862
Operating lease liabilities, net of current portion	25,843	32,074
Other non-current liabilities (including $1,208 and $1,224 associated with variable interest entity at June 30, 2026 and December 31, 2025 respectively)	2,690	2,724
Total liabilities	142,538	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 June 30, 2026 and December 31, 2025	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 20,156,605 and 19,922,721 shares issued and outstanding, respectively, as of June 30, 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	91,807	90,939
Treasury stock, $0.001 par value, 233,884 and 160,374 shares as of June 30, 2026 and December 31, 2025, respectively	(5,249)	(3,246)
Retained earnings	79,893	61,704
Total Karat Packaging Inc. stockholders’ equity	166,471	149,417
Noncontrolling interest	7,804	7,453
Total stockholders’ equity	174,275	156,870
Total liabilities and stockholders’ equity	316,813	287,686
Nonrelated Party
Current liabilities
Accounts payable (including $0 and $97 associated with variable interest entity as of June 30, 2026 and December 31, 2025, respectively)	33,997	26,323
Related Party
Current liabilities
Accounts payable (including $0 and $97 associated with variable interest entity as of June 30, 2026 and December 31, 2025, respectively)	$ 7,390	$ 4,672