Karat Packaging Inc.

Dividend On August 5, 2025, Karat s board of directors approved another regular quarterly dividend of 0.45 per share on the Company s common stock, payable on or about August 27, 2025, to stockholders of record as of August 20, 2025.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Share Repurchases: The Company s Board of Directors has approved a Share Repurchase Program authorizing the Company to repurchase up to $ 15,000,000 of its common stock.

SEC original ↗Karat Packaging Inc. — 10-Q Quarterly report10-QAug 7, 2026

Under the Share Repurchase Program, the Company may repurchase shares through open market transactions, through privately negotiated transactions, or pursuant to a trading plan separately adopted in the future, subject to the requirements of the Securities Exchange Act of 1934, as amended.

SEC original ↗Karat Packaging Inc. — 10-Q Quarterly report10-QAug 7, 2026

The Company records the shares repurchased as treasury stock based on the amount paid to repurchase its shares.

SEC original ↗Karat Packaging Inc. — 10-Q Quarterly report10-QAug 7, 2026

See Note 8 Long-Term Debt for a description of the two term loans that Global Wells had with financial institutions as of June 30, 2026.

SEC original ↗Karat Packaging Inc. — 10-Q Quarterly report10-QAug 7, 2026

Under ASC 820, material financial assets and liabilities not carried at fair value, including accounts receivable, accounts payable, related-party payable, accrued expenses, other current liabilities, and borrowings under promissory notes and Line of Credit (as defined below), are reported at their carrying value.

SEC original ↗Karat Packaging Inc. — 10-Q Quarterly report10-QAug 7, 2026

It also allowed us to build inventory during the quarter in preparation for planned expansion in the second half of the year, Yu added.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Import costs, including ocean freight and duty, also increased $2.1 million as a result of higher import duty and tariff, coupled with a 37.0 percent increase in import volume, as we increased inventory purchases ahead of expected business expansion during the second half of 2025.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

These improvements in margin were partially offset by an increase in ocean freight and duty costs as a percentage of net sales from higher import duty and tariff, coupled with increase in import volume, as we increased inventory purchases ahead of expected business expansion during the second half of 2025.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Import costs, including ocean freight and duty, also increased $4.1 million as a result of higher import duty and tariff, coupled with a 25.9 percent increase in import volume, as we increased inventory purchases ahead of expected business expansion during the second half of 2025, and a 0.1 percent increase in average freight container rates during the first half of 2025.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

These improvements in margin were offset by an increase in ocean freight and duty costs as a percentage of net sales from higher import duty and tariff, coupled with an increase in import volume, as we increased inventory purchases ahead of expected business expansion during the second half of 2025.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

htm EX-99.1 Document Karat Packaging Reports 2025 Second Quarter Financial Results -- Record Quarterly Net Sales and Net Income -- -- Successful Alternative Sourcing to Navigate Tariff Uncertainty -- CHINO, Calif, August 7, 2025 Karat Packaging Inc.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Full year guidance Maintaining the 2025 full year guidance on net sales, gross margin and adjusted EBITDA margin, pending potential impact related to additional tariff changes.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Our record quarterly performance is a testimony to our nimble business model and resilient global supply chain, which allowed us to achieve early success in navigating the supply chain disruptions and trade uncertainty.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Despite a significant foreign currency headwind due to a sudden substantial weakening in the United States Dollar against the New Taiwan Dollar, we delivered record quarterly net sales and net income.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Import costs, including ocean freight and duty, also increased $2.1 million as a result of higher import duty and tariff, coupled with a 37.0 percent increase in import volume, as we increased inventory purchases ahead of expected business expansion during the second half of 2025.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

These improvements in margin were partially offset by an increase in ocean freight and duty costs as a percentage of net sales from higher import duty and tariff, coupled with increase in import volume, as we increased inventory purchases ahead of expected business expansion during the second half of 2025.

SEC original ↗Karat Packaging Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025