Quarterly ResultMay 8, 2026, 04:18 PM
Karat Packaging Q1 Net Sales +12.9% to $116.9M; EPS $0.34
AI Summary
Karat Packaging Inc. reported a strong first quarter for 2026, with net sales increasing by 12.9% to $116.9 million and diluted earnings per share rising to $0.34. The company saw growth across its chains and distributors and online segments, while retail sales experienced a slight decline. Despite a decrease in cash from operating activities and a shift to net cash used in investing activities, the company maintains sufficient liquidity to manage its debt obligations.
Key Highlights
- Net sales increased 12.9% to $116.9 million for Q1 2026 from $103.6 million in Q1 2025.
- Diluted EPS rose to $0.34 in Q1 2026, up from $0.32 in the prior year period.
- Net income attributable to Karat Packaging Inc. grew 5.2% to $6.7 million.
- Chains and distributors revenue increased to $92.9 million from $80.7 million.
- Online revenue increased to $19.5 million from $17.8 million.
- Net cash provided by operating activities was $7.2 million, down from $7.7 million.
- Net cash used in investing activities was $6.9 million, compared to $3.5 million provided in Q1 2025.
- The company has $12.0 million remaining authorization under its share repurchase program.