---
schema_version: "secwatch.filing_event.v1"
accession: "0001758021-26-000019"
form_type: "8-K"
ticker: "KRT"
cik: "0001758021"
company_name: "Karat Packaging Inc."
filed_at: "2026-05-07T23:59:59+00:00"
generated_at: "2026-05-14T21:55:39.570636+00:00"
event_type: "earnings"
sentiment: "positive"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# Karat Packaging Q1 2026 net sales $116.9M (+12.9% YoY), EPS $0.34; declares $0.45 dividend

## Summary
- Net sales $116.9M (+12.9% YoY), net income $7.1M (+4.8% YoY), diluted EPS $0.34.
- Gross margin 35.5% vs 39.3% YoY; import duty/tariff costs rose from $3.4M to $10.5M.
- Adjusted EBITDA $12.5M vs $11.9M; adjusted EBITDA margin 10.7% vs 11.5%.
- Q2 guidance: net sales +8-10% YoY, gross margin 35-37%; FY: sales low double-digits, gross margin 34-36%, EBITDA margin 11-13%.
- Quarterly dividend of $0.45/share declared, payable May 28 to holders of record May 21.

## SEC filing metadata
- accession: 0001758021-26-000019
- form_type: 8-K
- ticker: KRT
- cik: 0001758021
- company_name: Karat Packaging Inc.
- filed_at: 2026-05-07T23:59:59+00:00
- event_type: earnings
- sentiment: positive
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 2.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1758021/000175802126000019/0001758021-26-000019-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1758021/000175802126000019/krt-20260507.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001758021-26-000019
- JSON: https://secwatch.observer/filing/0001758021-26-000019.json
- Plain text: https://secwatch.observer/filing/0001758021-26-000019.txt

## Source-grounded claims
- claim_id: 840725883c70e59a7b02861692b2bb6face55905
  claim: Karat Packaging Inc. reported the quarter ended March 31, 2026 results: revenue $116.9 million, net income $7.1 million, EPS $0.34 per diluted share.
  evidence_excerpt: First Quarter 2026 Highlights • Net sales of $116.9 million , up 12.9 percent , from $103.6 million in the prior-year quarter. • Gross profit of $41.5 million , up 1.9 percent , from $40.8 million in the prior-year quarter. • Gross margin of 35.5 percent , reflecting an expected decrease from 39.3 percent in the prior-year quarter due to elevated tariffs. • Net income of $7.1 million , up 4.8 percent , from $6.8 million in the prior-year quarter. • Net income margin of 6.1 percent versus 6.6 percent in the prior-year quarter. • Adjusted EBITDA of $12.5 million versus $11.9 million in the prior-year quarter. • Adjusted EBITDA margin of 10.7 percent versus 11.5 percent i n the prior-year quarter. Guidance • Net sales for the 2026 second quarter expected to increase by 8 to 10 percent from the prior-year quarter. • Gross margin for the 2026 second quarter expected to be within 35 to 37 percent, excluding potential tariff refund impact under the current trade policy. • Adjusted EBITDA marg
  evidence_url: https://www.sec.gov/Archives/edgar/data/1758021/000175802126000019/0001758021-26-000019-index.htm
- claim_id: 9226c6033434d7e083ed0561f6a2e5194413d1f4
  claim: Karat Packaging Inc. updated its the 2026 second quarter and full-year 2026 guidance (initiated).
  evidence_excerpt: Guidance • Net sales for the 2026 second quarter expected to increase by 8 to 10 percent from the prior-year quarter. • Gross margin for the 2026 second quarter expected to be within 35 to 37 percent, excluding potential tariff refund impact under the current trade policy. • Adjusted EBITDA margin for the 2026 second quarter expected to be within 11 to 13 percent, excluding potential tariff refund impact under the current trade policy. • N et sales for full-year 2026 expected to increase by low double-digits from the prior year. • Gross margin for full-year 2026 expected to be within 34 to 36%, excluding potential tariff refund impact under the current trade policy. • Adjusted EBITDA margin for full-year 2026 expected to be within 11 to 13 percent, excluding potential tariff refund impact under the current trade policy.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1758021/000175802126000019/0001758021-26-000019-index.htm

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