Karat Packaging (KRT) Investor presentation summary

Business overview and product portfolio

• Rapidly growing specialty distributor and manufacturer of disposable foodservice products with over 8,400 SKUs, including containers, cups, lids, straws, napkins, paper bags, utensils, specialty beverage ingredients, and janitorial supplies.

• Leading supplier of eco-friendly products, offering more than 580 SKUs in this category, which accounted for 34.1% of 2025 sales.

• Nationwide coverage through 10 strategically located distribution centers and over 150 global suppliers.

• One-stop shop model provides flexibility and breadth for customers across foodservice, restaurant, and retail industries.

Key investment highlights

• Diverse and broad product range with a focus on innovation and eco-friendly solutions driving margin expansion.

• Growing customer base across foodservice distributors, chain restaurants, online, and retail channels, with significant growth in both chain/distributor and online sales.

• Massive end markets with resilient growth, supported by trends in convenience, food delivery, and sustainability.

• Scaled distribution and diversified global sourcing, complemented by state-of-the-art domestic production capabilities.

• Attractive financial profile with industry-leading growth, margins, and free cash flow conversion.

• Seasoned management team with a strong focus on profitable growth and disciplined capital management.

Financial performance and growth

• 2025 net revenue reached $467.7M, with a 5.1% CAGR from 2021 to 2025.

• 2025 gross profit was $172.1M (36.8% margin), adjusted EBITDA $55.2M (11.8% margin), and net income $32.7M (7.0% margin).

• Free cash flow for 2025 was $29.3M, with a history of strong cash generation and regular dividend payments, including a $36M dividend in 2025 (~7% yield).

• Q2 2026 guidance: net sales growth of 8-10%, gross margin 35-37%, and adjusted EBITDA margin 11-13%.

• Industry-leading gross profit and free cash flow margins compared to peers.