Quarterly ResultMay 7, 2026, 04:29 PM
Karat Packaging Q1 Net Sales +12.9% to $116.9M; Declares $0.45 Dividend
AI Summary
Karat Packaging Inc. reported strong first-quarter 2026 financial results, with net sales increasing 12.9% to $116.9 million and net income rising 4.8% to $7.1 million. Despite a decrease in gross margin due to elevated tariffs, the company maintained solid profitability and saw accelerated sales momentum. The Board of Directors also approved a regular quarterly dividend of $0.45 per share. The company provided positive guidance for Q2 and full-year 2026, expecting continued sales growth and stable margins.
Key Highlights
- Net sales increased 12.9% to $116.9 million in Q1 2026 from $103.6 million.
- Net income rose 4.8% to $7.1 million, with diluted EPS at $0.34.
- Gross profit was $41.5 million, up 1.9%, but gross margin decreased to 35.5% from 39.3%.
- Adjusted EBITDA was $12.5 million, up from $11.9 million in the prior-year quarter.
- Board approved a quarterly dividend of $0.45 per share, payable May 28, 2026.
- Q2 2026 net sales expected to increase 8-10%; gross margin 35-37%.
- Full-year 2026 net sales expected to increase low double-digits; gross margin 34-36%.
- Eco-friendly product sales grew 16.9% in Q1, driven by new paper bag category.
Price Impact
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