[Form 4] Karat Packaging Inc. Insider Trading Activity

Karat Packaging Inc. director and Chief Executive Officer Alan Yu reported a routine tax-related share disposition.

Rhea-AI Filing Summary

Karat Packaging Inc. director and Chief Executive Officer Alan Yu reported a routine tax-related share disposition. On May 15, 2026, 2,124 shares of common stock were delivered to cover tax obligations at a weighted average price of $26.2819 per share. The weighted average reflects multiple transactions within a price range from $26.2805 to $26.4609. After this tax-withholding disposition, Yu directly holds 6,097,181 shares of Karat Packaging common stock, indicating his overall ownership position remains substantial.

Insider Trade Summary

Exercise Price or Tax Liability: 2,124 shares

Exercise Price or Tax Liability 1 txn

Insider Yu Alan

Role Chief Executive Officer

Type	Security	Shares	Price	Value
Exercise Price or Tax Liability	Common Stock	2,124	$26.2819	$56K

Holdings After Transaction: Common Stock — 6,097,181 shares (Direct)

Footnotes (1)

1. F1. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $26.2805 to $26.4609, inclusive. The reporting person undertakes to provide to Karat Packaging Inc. (the "Company"), any security holder of the Company, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote.

Key Figures

Shares used for tax withholding: 2,124 shares Weighted average price: $26.2819 per share Price range of transactions: $26.2805–$26.4609 per share +1 more

4 metrics

Shares used for tax withholding 2,124 shares Tax-withholding disposition on May 15, 2026

Weighted average price $26.2819 per share Price for tax-withholding shares

Price range of transactions $26.2805–$26.4609 per share Range for multiple trades underlying weighted average

Shares held after transaction 6,097,181 shares Direct ownership after tax-withholding disposition

Key Terms

tax-withholding disposition, weighted average price, Form 4, Chief Executive Officer

4 terms

tax-withholding disposition financial

"The filing classifies the event as a tax-withholding disposition of shares."

A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.

weighted average price financial

"The price reported in Column 4 is a weighted average price."

Weighted average price is the average price of a security where each trade or component is counted according to its size, so bigger trades pull the average more than smaller ones. Think of it like calculating the average cost of a grocery haul where items you bought more of have greater influence on the final per-item cost. Investors use it to understand the true average price paid or received, judge execution quality, and compare trading performance against market movement.

Form 4 regulatory

"This insider transaction is reported on a Form 4."

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

Chief Executive Officer financial

"Alan Yu serves as Chief Executive Officer of Karat Packaging Inc."

A chief executive officer (CEO) is the top leader of a company, responsible for making major decisions, setting goals, and guiding the organization’s overall direction. Think of the CEO as the captain of a ship, steering it toward success. Investors pay close attention to the CEO because their leadership and strategy can significantly influence the company's performance and future growth.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Karat Packaging (KRT) CEO Alan Yu report in this Form 4?

Alan Yu reported a tax-withholding disposition of 2,124 Karat Packaging common shares. These shares were delivered to satisfy tax obligations, not as an open-market sale, and he still directly holds 6,097,181 shares after the transaction.

How many Karat Packaging (KRT) shares were involved in Alan Yu’s latest transaction?

The filing shows 2,124 common shares were disposed of to cover tax liabilities. This transaction is classified as a tax-withholding event, meaning shares were used to pay taxes rather than being sold voluntarily on the open market.

What price did the Karat Packaging (KRT) tax-withholding shares reflect?

The reported weighted average price is $26.2819 per share. The footnote explains the shares were transacted in multiple trades at prices ranging from $26.2805 to $26.4609, producing the disclosed weighted average figure.

How many Karat Packaging (KRT) shares does Alan Yu hold after this Form 4 transaction?

After the tax-withholding disposition, Alan Yu directly owns 6,097,181 common shares of Karat Packaging. This post-transaction holding figure comes directly from the Form 4’s ownership column for total shares following the reported transaction.

Is Alan Yu’s Karat Packaging (KRT) Form 4 transaction a sale under a trading plan?

The Form 4 classifies the event as a tax-withholding disposition, not an open-market sale. The available disclosure does not reference any Rule 10b5-1 trading plan, and the main purpose described is satisfying tax liabilities with shares.

What does a tax-withholding disposition mean for Karat Packaging (KRT) insiders?

A tax-withholding disposition occurs when an insider delivers shares to cover tax obligations tied to equity compensation. It is generally a mechanical, compensation-related event rather than a discretionary decision to buy or sell shares in the market.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Form 4 Insider Transactions: What Each Field Means →

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Accepted by SEC EDGAR 05/15/2026 - 06:05 PM Learn about SEC filing dates

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Yu Alan

(Last) (First) (Middle)

6185 KIMBALL STREET

(Street)

CHINO CALIFORNIA 91708

(City) (State) (Zip)

UNITED STATES

(Country)

2. Issuer Name and Ticker or Trading Symbol
Karat Packaging Inc. [ KRT ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	X	10% Owner
X	Officer (give title below)		Other (specify below)
	Chief Executive Officer

2a. Foreign Trading Symbol

3. Date of Earliest Transaction (Month/Day/Year)
05/15/2026

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

4. If Amendment, Date of Original Filed (Month/Day/Year)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	05/15/2026		F		2,124	D	$26.2819(1)	6,097,181	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $26.2805 to $26.4609, inclusive. The reporting person undertakes to provide to Karat Packaging Inc. (the "Company"), any security holder of the Company, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote.

	/s/ Alan Yu	05/15/2026
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
* Form 4: SEC 1474 (03-26)