Karat Packaging Inc. reported net sales of $124.5 million for the third quarter of 2025, a 10.4% increase compared to $112.8 million in the same quarter of the previous year. Gross profit decreased to $42.9 million from $43.5 million, with gross margin declining to 34.5% from 38.6% due to higher costs of goods sold related to elevated tariffs. Net income was $7.6 million, down from $9.3 million in the prior-year quarter, and net income margin decreased to 6.1% from 8.2%. Net income attributable to Karat was $7.3 million, or $0.36 per diluted share, compared to $9.1 million, or $0.45 per diluted share last year. Adjusted EBITDA was $13.1 million, compared to $14.7 million in the prior-year quarter, with an adjusted EBITDA margin of 10.5%, down from 13.0%. For the first nine months of 2025, net sales rose 9.7% to $352.1 million and net income increased 2.0% to $25.5 million. The company reported income from subleasing its City of Industry warehouse, which began in April 2024. Other income for the third quarter increased to $1.3 million, primarily due to gains from foreign currency transactions.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Karat Packaging Inc. published the original content used to generate this news brief via GlobeNewswire (Ref. ID: GNW9570787-en) on November 06, 2025, and is solely responsible for the information contained therein.
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