secwatch.observer — SEC 8-K summary
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Issuer:     Karat Packaging Inc. (KRT)
CIK:        0001758021
Form:       8-K
Filed at:   2025-11-06T23:59:59+00:00
Accession:  0001758021-25-000007
Event type: earnings
Sentiment:  neutral
Materiality: 0.75
Item codes: 2.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1758021/000175802125000007/0001758021-25-000007-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1758021/000175802125000007/krt-20251106.htm
  HTML page:      https://secwatch.observer/filing/0001758021-25-000007

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