Karat Packaging stock gains 2.25 percent to USD 54.57

Published on 10/04/2026 at 09:44 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Karat Packaging stock posted USD 136.3 million in Q2 2026 revenue, up 9.9 percent year over year. Q3 gross margin guidance is 35%-37% after Q2 margin reached 56.6 percent.

KRT, US48563L1017, Illustration mit AI erstellt.

Karat Packaging stock (ISIN US48563L1017) was last at USD 54.57 on Nasdaq on October 2, 2026 at 4:00 p.m. ET, up 2.25 percent from USD 53.37. The quote stood USD 0.34 below its USD 54.91 52-week high as the market absorbed strong second-quarter figures and a more cautious margin outlook.

Revenue rises 9.9 percent

According to Yahoo Finance in the August 6, 2026 earnings-call transcript, Karat Packaging generated USD 136.3 million in Q2 2026 net sales, up 9.9 percent from USD 124.0 million in the prior-year quarter. Online sales grew 23.6 percent year over year, while the company added four new chain accounts.

GAAP net income attributable to Karat Packaging reached USD 29.3 million, or USD 1.46 per diluted share, compared with USD 10.9 million and USD 0.54 per share in Q2 2025. The increase included USD 25.8 million of IEEPA tariff refunds, making the reported margin expansion unusually dependent on a temporary benefit.

Margin guidance resets expectations

The same Yahoo Finance transcript records a Q2 gross margin of 56.6 percent, compared with 39.6 percent a year earlier. Management guided Q3 gross margin to 35%-37% and adjusted EBITDA margin to 9%-11%, while maintaining low double-digit sales-growth guidance for full-year 2026.

The tariff refund explains much of the gap between the 56.6 percent reported margin and the 35%-37% Q3 range. For investors, online growth and new chain-account shipments now provide a cleaner test of operating momentum than the refund-boosted Q2 profit alone.

Analyst targets trail the quote

MarketBeat reported on October 2, 2026, that Lake Street Capital reaffirmed a Buy rating and a USD 60.00 price target on September 14, 2026. The same report cited a Hold consensus and a USD 47.00 average target, creating a wide gap between bullish research and the market quote.

MarketBeat also reported that the quarterly dividend increased to USD 0.47 per share from USD 0.45, with the latest payment dated August 28, 2026. The dividend change adds income support, but the 75.20 percent payout ratio makes cash generation an important counterweight to the share-price advance.

Karat Packaging stock stays near its high

Karat Packaging stock was last at USD 54.57 on Nasdaq on October 2, 2026 at 4:00 p.m. ET, with 250,457 shares traded and a market capitalization of USD 1.1 billion. Its 52-week range was USD 20.61 to USD 54.91.