Karat Packaging — Third Quarter 2026 Earnings Summary

Karat Packaging reported third-quarter 2026 net sales of $134.7 million, an 8.2 percent increase from the prior year, driven by volume growth and a 38 percent surge in online sales. Despite this top-line expansion, net income declined to $4.7 million as higher resin prices, import costs, and shipping expenses compressed gross margins to 33.5 percent. The company recorded $25.8 million in IEEPA tariff refunds during the first nine months of 2026, which significantly boosted full-year adjusted EBITDA to $63.0 million. Looking ahead, Karat Packaging expects fourth-quarter net sales to rise 9 to 11 percent and has announced a quarterly dividend of $0.47 per share.