Karat Packaging Inc. filings document the public-company disclosures of a specialty distributor and manufacturer of disposable foodservice products and related items. Recent Form 8-K reports cover quarterly and annual operating results, cash dividend declarations, share repurchase authorization, and changes in the company’s independent registered public accounting firm.
The company’s proxy materials describe annual meeting matters, director elections, auditor ratification, advisory executive compensation votes and related governance procedures. Karat Packaging’s filings also identify its emerging growth company status and include disclosure topics involving common stock capital actions and internal control over financial reporting.
Karat Packaging Inc. director Eric K. Chen acquired 1,000 shares of common stock on May 7, 2026 through the vesting and conversion of restricted stock units (RSUs). This was an exercise of derivative securities at a price of $0.00 per share, reflecting stock-based compensation rather than an open-market purchase.
These 1,000 vested RSUs each converted into one share of common stock, consistent with the grant terms. After this transaction, Chen directly holds 7,000 shares of Karat Packaging common stock. The RSUs stem from a grant of 2,000 RSUs awarded on May 7, 2024, scheduled to vest in two equal annual installments beginning May 7, 2025.
Karat Packaging Inc. director Eve Yen acquired 1,000 shares of common stock on May 7, 2026 through the vesting of previously granted restricted stock units (RSUs). These shares came from a 2,000-RSU award granted on May 7, 2024. Following this vesting, Yen directly holds 8,000 common shares.
Karat Packaging Inc. director Paul Y. Chen reported a routine equity compensation event involving restricted stock units (RSUs). On May 7, 2026, 1,000 RSUs converted into 1,000 shares of common stock, increasing his directly held common shares to 7,000.
The derivative RSU position tied to these 1,000 shares was fully settled and now shows zero remaining units. Footnotes explain that each RSU represented a right to receive one share of common stock and that 2,000 RSUs were originally granted on May 7, 2024, vesting in two equal annual installments beginning May 7, 2025.
Karat Packaging Inc. reported solid growth for the three months ended March 31, 2026. Net sales rose to $116.9 million, up 12.9% from $103.6 million, driven mainly by higher volume and a favorable product mix.
Gross profit increased slightly to $41.5 million, but gross margin declined to 35.5% from 39.3% as import duties and tariffs climbed to $10.5 million, compressing profitability. Net income improved to $7.1 million, or $0.34 per diluted share, compared with $6.8 million, or $0.32 per diluted share, a year earlier.
The company generated $7.2 million of operating cash flow and ended the quarter with $28.7 million in cash and cash equivalents, $5.7 million in short-term investments, and $7.7 million available under its credit line. Management highlighted ongoing supply-chain diversification and noted it has submitted $25.8 million of refund claims for previously paid tariffs, though no refund receivable has been recorded.
Karat Packaging Inc. reported strong growth for the first quarter of 2026, with net sales rising 12.9% to $116.9 million from $103.6 million a year earlier. Higher volume and favorable product mix drove most of the increase, alongside modest pricing benefits.
Gross profit edged up to $41.5 million, but gross margin declined to 35.5% from 39.3% as import duties and tariffs climbed to 13.8% of net sales. Net income rose 4.8% to $7.1 million, or $0.34 per diluted share, and Adjusted EBITDA improved to $12.5 million with a 10.7% margin.
The company guided for continued expansion, targeting second-quarter 2026 net sales growth of 8–10% and Adjusted EBITDA margin of 11–13%, and expects full-year 2026 net sales to grow at a low double-digit rate while maintaining mid-30% gross margins, all guidance excluding potential tariff refund impacts.
Karat Packaging Inc. announced that its board of directors has declared a regular quarterly cash dividend of $0.45 per share on its common stock. The dividend will be paid on or about May 28, 2026 to stockholders of record as of May 21, 2026.
The company is a specialty distributor and manufacturer of disposable foodservice products used by restaurants and other foodservice providers across the United States, including its eco-friendly Karat Earth line.
Karat Packaging Inc. delivered profitable growth in 2025, reporting net sales growth of 10.7% (volume +11.2%) and a 36.8% gross margin as the company realigned its global supply chain amid higher tariffs.
The company generated $33.8 million of net cash from operations, ended the year with $91.0 million working capital and $45.6 million financial liquidity, returned $36.1 million to shareholders via dividends and repurchased $3.0 million of stock. Karat highlighted growth in eco-friendly sales (34.1% of total) and a new paper bag contract with forecasted annualized revenue of $17.0 million, with paper bag sales rising to $13.7 million in 2025.
Karat Packaging Inc. has called its 2026 Annual Meeting for June 16, 2026, asking stockholders to vote on three main items: electing five directors, ratifying BDO USA, P.C. as independent auditor for 2026, and approving executive compensation on an advisory “Say on Pay” basis.
Stockholders of record as of April 21, 2026, when 19,963,731 common shares were outstanding, are entitled to vote. The proxy outlines board structure, committee responsibilities, and governance policies, including a clawback policy and insider trading policy, and discloses that prior internal-control material weaknesses reported for 2023–2024 were remediated by March 31, 2025.
The filing also details 2025 pay for senior executives, with base salaries of $300,000 for the CEO, $350,000 for the CFO, and $250,000 for the Chief Revenue Officer, plus equity awards granted in 2024 that vest through 2026. Directors and executives as a group beneficially own 57.9% of outstanding shares, giving insiders significant voting influence over the proposals.
Karat Packaging Inc. changed its independent auditor, appointing BDO USA, P.C. as its registered public accounting firm for the fiscal year ending December 31, 2026 and dismissing PricewaterhouseCoopers LLP (PwC), effective March 13, 2026.
PwC’s reports on the company’s 2024 and 2025 financial statements contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles. The company reports no disagreements with PwC on accounting, disclosure, or audit matters and no reportable events other than previously disclosed material weaknesses in internal control.
Those material weaknesses related to IT general controls, entity-level controls, and segregation of duties around journal entries, and were reported as remediated by December 31, 2024 and March 31, 2025. The company states it did not consult BDO on accounting or audit issues before the engagement. PwC’s confirming letter to the SEC is filed as an exhibit.
Karat Packaging Inc. filed its annual report describing a fast-growing distributor and manufacturer of disposable foodservice products, with a strong focus on eco-friendly packaging. The company sources mainly from a diversified global vendor network and complements this with selective U.S. manufacturing, which generated about 9% of net sales in 2025.
Sales to chains and distributors reached $370.6 million, supported by blue-chip restaurant customers and an expanded U.S. distribution footprint, including new warehouses in Chino, California and Mesa, Arizona. Eco-friendly products under the Karat Earth® line grew to 34.1% of 2025 sales, with more than 580 SKUs.
Karat is emphasizing paper bags and won a contract with a major national chain, helping grow paper bag revenue from $7.9 million in 2024 to $13.7 million in 2025 and targeting further scaling. The report highlights ESG initiatives, human capital investments across 696 employees, extensive risk factors, and notes that Karat remains an emerging growth and smaller reporting company until at least the end of 2026.