Karat Packaging Q2 FY26 net income more than doubled to $29.6 million; net sales rise 9.9% to $136.3 million

Gross margin widened to 56.6% from 39.6%, including an 18.9 percentage-point lift from IEEPA tariff refunds.

Diluted EPS climbed to $1.46, including $1 per share from IEEPA tariff refunds.

Karat Packaging posted Q2 net income of $29.6 million, more than doubled from a year earlier, boosted by $20.2 million in IEEPA tariff refunds.

Net sales rose 9.9% to $136.3 million, led by online sales growth of 23.6%.

Management said it is finalizing a lease for a 47,000-square-foot Orlando distribution center, expected to be operational in Q3.