Karat Packaging Inc. SEC Filings

Karat Packaging (KRT) reported record Q3 2025 net sales of $124.5 million, up 10.4% year over year, with volume up 8.7%. Gross margin was 34.5%, down 410 basis points as cost of goods began to reflect elevated tariffs. Operating income was $8.6 million and net income was $7.6 million, with diluted EPS of $0.36 and a 6.1% net margin.

For the first nine months, net sales reached $352.1 million and net income was $25.5 million. Operating cash flow was $18.5 million, reflecting higher duty and inventory payments. Inventory was $84.1 million, and accounts receivable increased with growth. The company reclassified the $20.4 million 2026 Term Loan to current and stated it intends to repay at maturity using $24.0 million in cash and $19.9 million in short‑term investments as of September 30, 2025.

Subsequent to quarter end, the Board authorized a $15.0 million share repurchase program and declared a $0.45 per share quarterly dividend payable on or about November 28, 2025. The company also repaid its $1.0 million line of credit borrowing. During Q3, it paid $1.53 million related to a CBP matter and held a reserve of $1.81 million.

Karat Packaging Inc. (KRT) furnished quarterly results. On November 6, 2025, the company announced it issued a press release reporting financial results for the quarter ended September 30, 2025. The press release is provided as Exhibit 99.1 to an 8-K under Item 2.02. The company stated the information in Item 2.02, including Exhibit 99.1, is furnished and not deemed filed under the Exchange Act, and is not subject to Section 18 liabilities, nor incorporated by reference except as expressly set forth. The filing also lists Exhibit 104 for the cover page Inline XBRL data.

Karat Packaging Inc. (KRT) announced two shareholder actions. The Board declared a regular quarterly cash dividend of 0.45 per share, payable on or about November 28, 2025 to stockholders of record at the close of business on November 21, 2025.

The Board also approved a share repurchase program authorizing up to $15.0 million of common stock repurchases. Buybacks may occur in open market or privately negotiated transactions, or under a future trading plan, in accordance with applicable laws. The authorization has no expiration and may be modified, suspended, or terminated at the Board’s discretion. It does not obligate any purchases, and no shares will be repurchased directly from directors or officers.

Insider exercise and stock acquisition reported for Karat Packaging Inc. (KRT). Chief Financial Officer and director Jian Guo exercised options on 08/15/2025 to acquire 2,450 shares at an exercise price of $16.53 per share. After the transaction Guo directly beneficially owns 29,701 common shares and indirectly owns 500 shares through his spouse. The filing also shows Guo holds a total of 36,550 option shares outstanding following the exercise, with the option terms indicating a $16.53 exercise price and an expiration date of 02/01/2032. The option vesting schedule began 02/01/2023 and vests in three equal annual installments.

What happened: Karat Packaging reported a strong quarter with record net sales of $123.99 million and improved profitability. Gross margin rose to 39.6%, and net income attributable to Karat Packaging was $10.9 million, or $0.55 per basic share.

Why it matters: Sales grew about 10% year-over-year driven by higher volume and product mix. Profit margins improved despite higher import duty and freight costs, showing some pricing and vendor benefits. The company generated $17.5 million of operating cash in the first six months and held liquidity plus investments of roughly $71.1 million combined.

What investors should note: Inventories increased materially to $88.8 million as the company built stock ahead of expected second-half demand, which reduced cash flow versus prior periods. The company also maintains consolidated debt (net long-term debt $46.7 million) and a $3.28 million reserve related to a Customs investigation. The board declared a $0.45 quarterly cash dividend to be paid in late August 2025.

Karat Packaging Inc. (KRT) Form 8-K – Dividend Declaration

On 5 Aug 2025 the Board declared a regular quarterly cash dividend of $0.45 per common share. The dividend will be paid on or about 27 Aug 2025 to shareholders of record at the close of business on 20 Aug 2025. A confirming press release dated 6 Aug 2025 is filed as Exhibit 99.1.

No additional financial metrics, guidance, or operational updates were disclosed. The filing strictly communicates the cash return to shareholders, implying confidence in ongoing cash generation but offering limited insight into broader performance.

Karat Packaging Inc. (NASDAQ: KRT) filed an 8-K to disclose the final voting results from its 2025 Annual Meeting held on June 19, 2025.

• Board of Directors: All five nominated directors—Alan Yu, Jian Guo, Paul Y. Chen, Eric Chen and Eve Yen—were re-elected. Support ranged from 97.1% to 99.4% of votes cast, with broker non-votes of 820,674 shares.
• Auditor Ratification: Shareholders overwhelmingly approved PricewaterhouseCoopers LLP as independent auditors for FY 2025 (18,232,235 votes for; only 9,500 against).
• Say-on-Pay: The advisory resolution on executive compensation passed with 97.2% support (16,925,755 for vs. 485,849 against).

No other proposals were presented, and there were no disclosures of financial performance, strategic initiatives, or material transactions. The filing is primarily procedural, confirming strong shareholder endorsement of existing governance arrangements.