Karat Packaging Reports Third Quarter 2026 Financial Results
Key Highlights
- ➤Q3 net sales $134.7 million, up 8.2 percent year over year
- ➤Q3 net income $4.7 million, down from $7.6 million year over year
- ➤Q3 adjusted EBITDA $8.9 million versus $13.1 million year over year
- ➤Q4 2026 sales expected to increase 9 to 11 percent year over year
- ➤Full-year 2026 adjusted EBITDA margin expected approximately mid-teens, including tariff refunds
- ➤Board approved quarterly dividend of $0.47 per share payable November 27, 2026
Expert Statements
Alan Yu, Chief Executive Officer of Karat Packaging
“We delivered solid top-line growth in the third quarter, with sales increasing 8.2 percent, and we saw continued strong momentum in our e-commerce business, where online sales grew nearly 38 percent over the prior-year quarter.”
Alan Yu, Chief Executive Officer of Karat Packaging
“While increased import as well as domestic shipping costs and elevated resin prices pressured margin and contributed to results below our expectations, we remain encouraged by the strength of our sales performance, especially the continued momentum in our e-commerce business expansion.”
Alan Yu, Chief Executive Officer of Karat Packaging
“With continued success in new account wins and the strength in our pipeline, we remain confident in our long-term growth prospects.”
Alan Yu, Chief Executive Officer of Karat Packaging
“Against a backdrop of elevated oil prices and ocean freight costs, we continue to realign Karat’s global supply chain and diversify sourcing toward markets with more favorable trade conditions and freight costs, including Indonesia, Malaysia and South America.”
Alan Yu, Chief Executive Officer of Karat Packaging
“We believe these efforts, combined with the continued strength of our online channel, new chain account wins, and the opening of our new Florida distribution center expected in November 2026, position us well to accelerate revenue growth and improve operating performance in the quarters ahead.”
CHINO, Calif., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) ("Karat Packaging" or the "Company"), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its third quarter ended September 30, 2026.
Third Quarter 2026 Highlights * Quarterly net sales of $134.7 million, up 8.2 percent, from $124.5 million in the prior-year quarter. * Gross profit of $45.1 million, up 5.2 percent, from $42.9 million in the prior-year quarter. * Gross margin of 33.5 percent, compared with 34.5 percent in the prior-year quarter. * Net income of $4.7 million, compared with $7.6 million in the prior-year quarter. * Net income margin of 3.5 percent versus 6.1 percent in the prior-year quarter. * Adjusted EBITDA of $8.9 million versus $13.1 million in the prior-year quarter. * Adjusted EBITDA margin of 6.6 percent versus 10.5 percent in the prior-year quarter. Guidance * Net sales for the 2026 fourth quarter expected to increase by 9 to 11 percent from the prior-year quarter. * Gross margin for the 2026 fourth quarter expected to be between 33 to 35 percent. * Adjusted EBITDA margin for the 2026 fourth quarter expected to be in the high-single digits. * Net sales for full-year 2026 expected to increase by 9 to 11 percent from the prior year. * Gross margin for full-year 2026 expected to be between 39 and 41 percent, including IEEPA tariff refunds recorded during the first half of 2026. * Adjusted EBITDA margin for full-year 2026 expected to be approximately mid-teens, including IEEPA tariff refunds recorded during the first half of 2026. “We delivered solid top-line growth in the third quarter, with sales increasing 8.2 percent, and we saw continued strong momentum in our e-commerce business, where online sales grew nearly 38 percent over the prior-year quarter,” said Alan Yu, Chief Executive Officer. “While increased import as well as domestic shipping costs and elevated resin prices pressured margin and contributed to results below our expectations, we remain encouraged by the strength of our sales performance, especially the continued momentum in our e-commerce business expansion.”
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