Karat Packaging Q3 net sales record $124.5M (+10.4% YoY); EPS down on tariff costs

Karat Packaging Inc.

2025-Q3 EPS reported $1.22 revenue$352,126,000

Q3 net sales record $124.5M (+10.4% YoY); net income $7.6M ($0.36 diluted EPS) vs $9.3M ($0.45) prior year.
Gross margin fell to 34.5% from 38.6% as import duties/tariffs rose to 14.4% of sales (vs 8.6%).
Q4 guidance: net sales +10-14% YoY, gross margin 33-35%, adj. EBITDA margin 8-10%.
Board declared $0.45/share quarterly dividend (payable Nov 28) and authorized up to $15M buyback.
New paper bag contract with national chain expected to add ~$20M annual revenue; US sourcing up to 20.4%.

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