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.

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 1.0

Karat Packaging Inc. reported First Quarter and Full Year 2026 results: revenue Net sales for the 2026 first quarter expected to increase by 8 to 10 percent from the prior-year quarter. Net sales for. Guidance initiated.

Period: First Quarter and Full Year 2026
Revenue: Net sales for the 2026 first quarter expected to increase by 8 to 10 percent from the prior-year quarter. Net sales for
Guidance: initiated
Result: guidance update

Exact text from the filing

Guidance • Net sales for the 2026 first quarter expected to increase by 8 to 10 percent from the prior-year quarter. • Gross margin for the 2026 first quarter expected to be between 34 and 36 percent. • Adjusted EBITDA margin for the 2026 first quarter expected to be between 9 and 11 percent. • Net sales for full-year 2026 expected to increase by low double-digits from the prior year. • Gross margin and adjusted EBITDA margin for full year 2026 expected to continue to improve compared with the prior year, under current global tariff policy.

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Earnings Releases SEC 8-K Item 2.02 confidence 1.0

Karat Packaging Inc. reported Fourth Quarter 2025 results: revenue $115.6 million, net income $7.2 million, EPS $0.34 per diluted share.

Period: Fourth Quarter 2025
Revenue: $115.6 million
Net income: $7.2 million
EPS: $0.34 per diluted share
Result: reported results

Exact text from the filing

Fourth Quarter 2025 Financial Results Net sales for the 2025 fourth quarter increased 13.7 percent to $115.6 million, from $101.6 million in the prior-year quarter. The increase primarily reflected $8.2 million in volume and a $6.3 million favorable impact from pricing and product mix. Cost of goods sold for the 2025 fourth quarter increased 23.4 percent to $76.3 million, from $61.8 million in the prior-year quarter. Product costs increased $6.1 million due to sales growth, partially offset by more favorable vendor pricing and product mix. Within import costs, duty and tariff costs increased $8.4 million, reflecting the overall higher tariff rates and a $0.4 million adjustment to the duty reserve previously recorded on certain imports. Gross profit for the 2025 fourth quarter was $39.3 million, compared with $39.8 million in the prior-year quarter. Gross margin for the 2025 fourth quarter was 34.0 percent, compared with 39.2 percent in the prior-year quarter, reflecting the expected im

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Source: SEC EDGAR

accession 0001758021-26-000008

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