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Capital & Financial MarketsMarkets & Customers 5 Nov 2026

Karat Packaging posts Q3 sales growth but profit falls on costs

Karat Packaging reported third-quarter 2026 net sales of USD 134.7m, up 8.2% year on year, while net income fell to USD 4.7m from USD 7.6m as higher shipping and resin costs squeezed margins. The company expects full-year sales growth of 9-11%; shipments to four previously secured chain accounts began in October, and four further accounts won in the quarter are due to start shipping in the first half of 2027.

Why this mattersKarat's quarter shows resin and freight costs outrunning sales growth, leaving new chain accounts, price increases and sourcing shifts to Indonesia, Malaysia and South America to restore margins.

  • Q3 2026 net sales rose 8.2% to USD 134.7m from USD 124.5m a year earlier
  • Q3 net income fell to USD 4.7m from USD 7.6m; gross margin narrowed to 33.5% from 34.5%
  • Q3 adjusted EBITDA declined to USD 8.9m from USD 13.1m
  • Q3 online sales grew nearly 38% year on year
  • Nine-month net income reached USD 41.5m, including USD 20.2m from tariff refunds
  • Four chain accounts began shipments in October; four more won in Q3 are expected to ship in the first half of 2027
Karat Packaging
Sources Stock Titan
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Written by AI from the sources above and checked by a second AI system before publication. No human wrote or edited this story. How it is made.

Updates

  • 2026-11-06 · Edited before publication: Ocean freight figures (USD 2.4m, 11.7%, 17.0%) are not in the excerpts; 'import costs' replaced by shipping costs as stated. Chain-account timing clarified.
  • 2026-11-06 · Edited before publication: The why-it-matters line generalised one company's margin squeeze to the whole sector without support. Rewritten to stay with what the source says about Karat.