Karat Packaging Reports Q3 2026 Results with Revenue Growth Amid Margin Pressure
Karat Packaging (KRT) reported third-quarter net sales of $134.7 million, an 8.2% increase year-over-year driven by volume growth and product mix. Despite the revenue rise, net income fell to $4.4 million ($0.22 per diluted share) from $7.3 million in the prior-year period, as higher operating expenses and margin compression impacted profitability. The company faced significant headwinds from rising ocean freight costs and resin price volatility, leading to a contraction in gross margins to 33.5%. To combat these supply chain disruptions and elevated import expenses, management has announced planned price increases of 3% to 13% effective January 1, 2027, and is diversifying sourcing toward Indonesia, Malaysia, and South America.
Tickers: $KRT
Topics: EBITDA Net Income Net Sales Online Sales Growth Operating Expenses