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. 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.
Karat Packaging Inc. reported fourth quarter and full-year 2025 results showing continued profitable growth despite higher tariffs and logistics costs. Fourth quarter net sales reached a record $115.6 million, up 13.7% from $101.6 million, while net income rose 22.8% to $7.2 million.
Gross margin in the quarter declined to 34.0% from 39.2% as duty and tariff costs increased to 14.5% of net sales, partly offset by better vendor pricing and lower logistics expense. Full-year 2025 net sales grew 10.7% to $467.7 million and net income increased 6.0% to $32.7 million.
Adjusted EBITDA for 2025 was stable at $55.2 million with an 11.8% margin, versus 13.1% last year. The company raised a regular quarterly dividend to $0.45 per share and repurchased 137,374 shares for $3.0 million, ending 2025 with $37.9 million in cash and cash equivalents.
Karat Packaging Inc. reported that its board of directors declared a regular quarterly cash dividend of $0.45 per share on its common stock. The dividend will be paid on or about February 27, 2026 to stockholders of record at the close of business on February 20, 2026.
Karat Packaging (KRT) reported an insider purchase by its Chief Financial Officer and director, Jian Guo. On 11/12/2025, the reporting person bought 1,361 shares of common stock in an open-market transaction at a price of $22.11 per share.
Following the transaction, beneficial ownership stands at 31,062 shares direct, with an additional 500 shares held indirectly by spouse. The filing indicates it was made by one reporting person.
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.