Karat Packaging Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026 with the Securities and Exchange Commission on November 6, 2026, reporting third-quarter net sales of $134,742 thousand and nine-month net sales of $387,991 thousand.

Key Highlights

  • Q3 Net Sales: Net sales for the three months ended September 30, 2026 were $134,742 thousand, compared with $124,516 thousand in the same period of 2025, according to the filing.
  • Nine-Month Net Sales: Net sales for the nine months ended September 30, 2026 were $387,991 thousand, up from $352,126 thousand for the nine months ended September 30, 2025.
  • Q3 Gross Profit: Gross profit for the three months ended September 30, 2026 was $45,131 thousand, compared with $42,918 thousand in the prior-year quarter.
  • Nine-Month Operating Income: Operating income for the nine months ended September 30, 2026 was $50,938 thousand, versus $32,943 thousand for the same period in 2025.
  • Total Assets: Total assets as of September 30, 2026 were $306,431 thousand, compared with $287,686 thousand at December 31, 2025.
  • Retained Earnings: Retained earnings stood at $74,808 thousand at September 30, 2026, up from $61,704 thousand at December 31, 2025.
  • Shares Outstanding: Common shares outstanding as of November 3, 2026 were 20,004,228, as reported on the cover page.

Karat Packaging's Third-Quarter 2026 Financial Position and Results

According to the filing, Karat Packaging Inc. (NASDAQ:KRT) reported net sales of $134,742 thousand for the three months ended September 30, 2026, an increase from $124,516 thousand in the comparable prior-year quarter. Cost of goods sold for the same period was $89,611 thousand, resulting in a gross profit of $45,131 thousand. Total operating expenses for Q3 2026 were $40,259 thousand, leaving operating income of $4,872 thousand, compared with operating income of $8,573 thousand in Q3 2025. The company disclosed total other income, net, of $979 thousand for Q3 2026, with income before provision for income taxes of $5,851 thousand.

For the nine months ended September 30, 2026, the registrant reported net sales of $387,991 thousand and gross profit of $163,817 thousand, against $352,126 thousand and $132,787 thousand, respectively, for the nine months ended September 30, 2025. Operating income for the nine-month period was $50,938 thousand, compared with $32,943 thousand in the year-earlier period. The filing noted nine-month interest expense of $1,254 thousand and interest income of $1,965 thousand.

On the balance sheet, the company disclosed total assets of $306,431 thousand as of September 30, 2026, up from $287,686 thousand at December 31, 2025. Inventories increased to $96,792 thousand from $81,682 thousand over the same interval. Total current liabilities rose to $104,894 thousand from $70,220 thousand, primarily reflecting an increase in accounts payable to $45,012 thousand from $26,323 thousand. Total stockholders' equity was $171,393 thousand at September 30, 2026. The registrant is classified as an accelerated filer, a smaller reporting company, and an emerging growth company, as indicated on the cover page.

What Was Disclosed

Karat Packaging Inc. filed a Form 10-Q for the quarter ended September 30, 2026, disclosing unaudited condensed consolidated financial statements showing higher net sales, gross profit, and total assets compared with prior-year and year-end figures, alongside changes in balance sheet composition.