Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2026

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

Basic earnings per share is calculated by dividing the net income attributable to equity holders of the Company for the period by the weighted average number of common shares outstanding during the period.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
	(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.	$	4,395	$	7,325	$	40,467	$	24,668
Weighted average number of common shares outstanding	19,959		20,091		19,957		20,062
Basic earnings per share	$	0.22	$	0.36	$	2.03	$	1.23

The following table summarizes the calculation of diluted earnings per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
	(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.	$	4,395	$	7,325	$	40,467	$	24,668
Weighted average number of common shares outstanding	19,959		20,091		19,957		20,062
Dilutive shares
Stock options and restricted stock units	240		110		169		135
Adjusted weighted average number of common shares	20,199		20,201		20,126		20,197
Diluted earnings per share	$	0.22	$	0.36	$	2.01	$	1.22