earnings
confidence high
sentiment positive
materiality 0.75
Karat Q4 sales hit record $115.6M (+13.7%); EPS $0.34 vs $0.28; guides Q1 higher
Karat Packaging Inc.
- Record Q4 net sales $115.6M (+13.7% YoY); GAAP diluted EPS $0.34 vs $0.28; net income $7.2M (+22.8%).
- Gross margin compressed to 34.0% from 39.2% due to $8.4M tariff/duty cost increase.
- Q1 2026 guidance: net sales +8-10%, gross margin 34-36%, adj EBITDA margin 9-11%.
- Full-year 2026 outlook: low double-digit sales growth, margins expected to improve under current tariff policy.
- Share repurchase program continues: $12.0M remaining; $0.45 quarterly dividend declared.