---
schema_version: "secwatch.filing_event.v1"
accession: "0001628280-23-028583"
form_type: "8-K"
ticker: "KRT"
cik: "0001758021"
company_name: "Karat Packaging Inc."
filed_at: "2023-08-09T23:59:59+00:00"
generated_at: "2026-06-11T22:53:05.925536+00:00"
event_type: "earnings"
sentiment: "positive"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Karat Packaging Q2 net sales down 5.3% to $108.7M, gross margin expands to 38.5%; declares special $0.40 dividend

## Summary
- Net sales $108.7M (-5.3% YoY); net income $10.7M (+48.3% YoY); diluted EPS $0.53 vs $0.32.
- Gross margin 38.5% vs 29.6% last year; ocean freight costs fell to 6.2% of sales from 18.0%.
- Adjusted EBITDA $21.1M (+78.6% YoY); adjusted diluted EPS $0.69 vs $0.34.
- Board declared special dividend of $0.40/sh and new quarterly dividend of $0.10/sh, initiating quarterly policy.
- Guidance: Q3 net sales expected down 3-4% YoY; Q4 up 10-15%; full-year gross margin goal of 36-37%.

## SEC filing metadata
- accession: 0001628280-23-028583
- form_type: 8-K
- ticker: KRT
- cik: 0001758021
- company_name: Karat Packaging Inc.
- filed_at: 2023-08-09T23:59:59+00:00
- event_type: earnings
- sentiment: positive
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 2.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1758021/000162828023028583/0001628280-23-028583-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1758021/000162828023028583/krt-20230809.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001628280-23-028583
- JSON: https://secwatch.observer/filing/0001628280-23-028583.json
- Plain text: https://secwatch.observer/filing/0001628280-23-028583.txt

## Key facts
- Earnings Releases
  Karat Packaging Inc. reported the first six months of 2023 results: revenue $204.5 million. Guidance initiated.
  - Period: the first six months of 2023
  - Revenue: $204.5 million
  - Guidance: initiated
  - Result: reported results
  source text: Net sales for the first six months of 2023 decreased 7.2 percent to $204.5 million, from $220.3 million in the same period last year.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1758021/000162828023028583/0001628280-23-028583-index.htm
- Earnings Releases
  Karat Packaging Inc. reported the quarter ended June 30, 2023 results: revenue $108.7 million, net income $10.7 million, EPS $0.53 per diluted share. Guidance initiated.
  - Period: the quarter ended June 30, 2023
  - Revenue: $108.7 million
  - Net income: $10.7 million
  - EPS: $0.53 per diluted share
  - Guidance: initiated
  - Result: reported results
  source text: Karat Packaging Inc. (Nasdaq: KRT) (“Karat” or the “Company”), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its quarter ended June 30, 2023. Second Quarter 2023 Highlights • Quarterly net sales of $108.7 million, down 5.3 percent from the prior-year quarter. • Gross profit of $41.9 million, up 23.3 percent from the prior-year quarter. • Gross margin of 38.5 percent versus 29.6 percent in the prior-year quarter. • Net income of $10.7 million, up 48.3 percent from the prior-year quarter. • Net income margin of 9.8 percent versus 6.3 percent in the prior-year quarter. • Adjusted EBITDA of $21.1 million, up $9.3 million, or 78.6 percent from the prior-year quarter. • Adjusted EBITDA margin of 19.4 percent versus 10.3 percent in the prior-year quarter.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1758021/000162828023028583/0001628280-23-028583-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.