CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents (including $2,741 and $1,488 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	$ 33,444	$ 37,880
Short-term investments	10,000	0
Accounts receivable, net of allowance for bad debt of $931 and $581 at September 30, 2026 and December 31, 2025, respectively (including $0 and $4 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	44,910	36,402
Inventories	96,792	81,682
Prepaid expenses and other current assets (including $258 and $314 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	6,783	5,224
Total current assets	191,929	161,188
Property and equipment, net (including $40,850 and $41,758 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	75,299	81,159
Deposits	163	0
Goodwill	3,510	3,510
Intangible assets, net	253	273
Operating right-of-use assets	33,811	40,299
Deferred tax assets	255	255
Other non-current assets (including $111 and $68 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	1,211	1,002
Total assets	306,431	287,686
Current liabilities
Accrued expenses (including $423 and $535 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	15,728	13,460
Deferred revenue	1,013	713
Long-term debt, current portion, net of debt discount of $32 and $0 at September 30, 2026 and December 31, 2025, respectively (including $23,071 and $12,941 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively, and debt discount of $32 and $0 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	23,071	12,941
Operating lease liabilities, current portion	12,317	11,982
Other current liabilities (including $45 and $49 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	150	129
Total current liabilities	104,894	70,220
Deferred tax liabilities	2,936	2,936
Long-term debt, net of current portion and debt discount of $0 and $78 at September 30, 2026 and December 31, 2025, respectively (including $0 and $22,862 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively, and debt discount of $0 and $78 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	0	22,862
Operating lease liabilities, net of current portion	24,536	32,074
Other non-current liabilities (including $1,200 and $1,224 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	2,672	2,724
Total liabilities	135,038	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, at both September 30, 2026 and December 31, 2025	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 20,156,605 and 19,995,478 shares issued and outstanding, respectively, at September 30, 2026 and 20,122,505 and 19,962,131 shares issued and outstanding, respectively, at December 31, 2025	20	20
Additional paid in capital	93,654	90,939
Treasury stock, $0.001 par value, 161,127 and 160,374 shares at September 30, 2026 and December 31, 2025, respectively	(5,238)	(3,246)
Retained earnings	74,808	61,704
Total Karat Packaging Inc. stockholders’ equity	163,244	149,417
Noncontrolling interest	8,149	7,453
Total stockholders’ equity	171,393	156,870
Total liabilities and stockholders’ equity	306,431	287,686
Nonrelated Party
Current liabilities
Accounts payable (including $0 and $97 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	45,012	26,323
Related Party
Current liabilities
Accounts payable (including $0 and $97 associated with variable interest entity at September 30, 2026 and December 31, 2025, respectively)	$ 7,603	$ 4,672