Karat Packaging Declares $0.45 Quarterly Dividend
Karat Packaging Inc., a specialty distributor and manufacturer of disposable foodservice products, announced a regular quarterly dividend of $0.45 per share. The dividend is payable February 27, 2026, to shareholders of record as of February 20, 2026.
Karat Packaging Inc., a specialty distributor and manufacturer of disposable foodservice products used by restaurants and foodservice operators, declared a regular quarterly dividend of $0.45 per share on February 5, 2026. The dividend will be paid on February 27, 2026, to stockholders of record as of February 20, 2026. Read more dividend announcements.
The announcement came as the company reported full-year 2025 results showing net income of $32.7 million, up 6.0 percent from $30.8 million in the prior year. Net income attributable to Karat Packaging rose 5.0 percent to $31.5 million, or $1.56 per diluted share, compared with $30.0 million, or $1.49 per diluted share, in 2024.
| Dividend Details | Information |
|---|---|
| Amount | $0.45 per share |
| Record Date | February 20, 2026 |
| Payment Date | February 27, 2026 |
| Type | Regular Quarterly |
Full-Year Financial Performance
The company's net income margin for 2025 was 7.0 percent, compared with 7.3 percent in the prior year. Adjusted EBITDA was $55.2 million for the year ended December 31, 2025, essentially flat compared with $55.3 million in 2024. Adjusted EBITDA margin declined to 11.8 percent from 13.1 percent.
Adjusted diluted earnings per share, a non-GAAP measure, came in at $1.61 per share for 2025, down slightly from $1.64 per share in 2024.
Other income for the year was $1.6 million, down from $2.9 million in the prior year. The decrease was primarily due to a $1.5 million loss on foreign currency transactions caused by the weakening of the U.S. Dollar against the New Taiwan Dollar, partially offset by increased rental income from subleasing a warehouse in California.
Share Repurchase Activity
During the fourth quarter of 2025, Karat Packaging repurchased 137,374 shares of its common stock at an average price of $21.74 per share, totaling $3.0 million. As of March 11, 2026, approximately $12.0 million remained available under the company's authorized repurchase program.