Karat Packaging (KRT) Company Report

Karat Packaging reported Q3 2025 net sales of $124.5 million, an increase of 10.4% year-over-year, while net income was $7.6 million, or $0.36 per diluted share, compared to $9.3 million, or $0.45 per diluted share in the prior year quarter.
The company's gross margin for Q3 2025 was 34.5%, down from 38.6% in the prior year quarter, primarily due to higher import costs.
Karat secured a new paperback product category business, initially expected to contribute approximately $20 million in additional annual revenue, with a long-term goal to scale to over $100 million annually within two to three years.
The Board of Directors approved a quarterly dividend of $0.45 per share and initiated a first-ever share repurchase program of up to $15.0 million.
For Q4 2025, the company projects net sales to increase by 10%-14% year-over-year, with gross margin between 33%-35% and adjusted EBITDA margin between 8%-10%.

Nov 6, 2025, 10:00 PM

Karat Packaging Reports Q3 2025 Financial Results and Shareholder Returns

KRT

Earnings

Guidance Update

Share Buyback

Karat Packaging Inc. reported record quarterly net sales of $124.5 million for Q3 2025, an increase of 10.4% from the prior-year quarter, while net income was $7.6 million and diluted earnings per share were $0.36. Gross margin for the quarter was 34.5%, reflecting a decrease from 38.6% in the prior-year quarter due to increased import costs.
For the fourth quarter of 2025, the company expects net sales to increase by 10% to 14%, gross margin to be between 33% and 35%, and Adjusted EBITDA margin to be between 8% and 10%. The full-year 2025 guidance for net sales, gross margin, and Adjusted EBITDA margin is being maintained.
The Board of Directors approved a regular quarterly dividend of $0.45 per share, payable on or about November 28, 2025.
The company's board also approved a share repurchase program of up to $15.0 million.
A new paper bag supply business is projected to add approximately $20 million in annual revenue, with full fulfillment expected by Q1 2026.

Nov 6, 2025, 9:11 PM

Karat Packaging Reports Q3 2025 Financial Results and Provides Q4 Guidance

KRT

Earnings

Guidance Update

Dividends

Karat Packaging Inc. achieved record quarterly net sales of $124.5 million in Q3 2025, marking a 10.4 percent increase compared to the prior-year quarter.
Despite the sales growth, net income decreased to $7.6 million and Adjusted EBITDA fell to $13.1 million in Q3 2025, primarily impacted by higher import costs and tariffs.
For Q4 2025, the company anticipates net sales to grow by 10 to 14 percent, with gross margin projected between 33 to 35 percent and Adjusted EBITDA margin between 8 to 10 percent.
Karat Packaging is maintaining its full-year 2025 guidance for net sales, gross margin, and Adjusted EBITDA margin.
A regular quarterly dividend of $0.45 per share was approved on November 4, 2025, payable on November 28, 2025.

Nov 6, 2025, 9:05 PM

Karat Packaging Declares Quarterly Dividend and Initiates Share Repurchase Program

KRT

Dividends

Share Buyback

Karat Packaging Inc.'s board of directors declared a regular quarterly cash dividend of $0.45 per share.
The dividend is payable on or about November 28, 2025, to stockholders of record as of November 21, 2025.
The board also authorized its first-ever share repurchase program to purchase up to $15.0 million of the Company's common stock.
These actions reflect the board and management's continued confidence in the Company's growth potential and financial strength.