Every 10-Q that Karat Packaging Inc. (KRT) has filed with the SEC in the last 24 months is listed below, newest first, and each one links through to the document itself with the summary and the scores our analysis gives it.
A 10-Q covers the quarterly report filed between annual reports, so if you follow KRT and want that one kind of document rather than the whole filing history, this is the page to keep. The company's other filings, of every form, are on the full KRT filings page.
Karat Packaging Inc. delivered very strong results for the quarter and six months ended June 30, 2026. Net sales were $136.3 million in the quarter and $253.2 million year‑to‑date, up 9.9% and 11.3% year over year. Quarterly net income reached $29.6 million (diluted EPS $1.46), with first‑half net income of $36.8 million (diluted EPS $1.80).
Results were significantly affected by $26.7 million of IEEPA tariff refunds recognized in Q2 2026, including $25.8 million recorded as a reduction of cost of goods sold and $0.9 million as interest income. This lifted gross margin to 56.6% for the quarter and 46.9% for the first half and increased Adjusted EBITDA to $41.6 million in Q2 and $54.1 million year‑to‑date.
Operating cash flow rose to $40.3 million for the first half, supporting dividends of about $18.0 million, early term‑loan repayments, and $2.0 million of share repurchases. As of June 30, 2026, cash and cash equivalents were $38.4 million, short‑term investments $15.7 million, and term debt $34.6 million, with no borrowings under a $20 million revolving credit facility. Management highlighted changing tariff regimes, a CBP duty matter with a $1.3 million reserve, and ongoing supply‑chain realignment as important continuing factors.
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 (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.
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.