Segment Report (Tables)

6 Months Ended

Jun. 30, 2025

The following is the summary of the financial information for the Company’s reportable segment:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(in thousands)
Net sales	$	123,986	$	112,600	$	227,610	$	208,213
Less (Add):
Cost of goods sold	74,879		69,193		137,741		127,204
Shipping and transportation	10,247		8,737		20,863		15,950
Salaries and benefits	9,275		8,849		18,340		17,778
Professional services	1,184		1,160		2,622		2,321
Depreciation and amortization	1,145		1,048		2,284		2,068
Rent expense	3,342		2,155		6,092		3,985
Marketing expense	1,572		2,267		3,090		3,360
Online platform fees	1,911		2,739		4,132		4,925
Warehouse expense	1,015		993		1,954		1,994
Stock-based compensation	445		940		791		1,315
ROU asset impairment expense	—		—		—		1,993
Secondary offering transaction costs	214		—		214		—
(Gain) loss, net, on disposal of property and equipment	(283)		531		(300)		532
Interest expense	521		548		1,030		1,072
Provision for income taxes	3,459		2,841		5,580		4,816
Other segment expenses*	2,490		2,873		5,417		5,597
Interest income	(676)		(533)		(1,242)		(964)
Other expenses (income), net	2,194		(968)		1,135		(1,436)
Segment net income	11,052		9,227		17,867		15,703
Reconciliation of segment net income to consolidated net income
Adjustments and reconciling items	—		—		—		—
Consolidated net income	$	11,052	$	9,227	$	17,867	$	15,703

* Other segment expenses include property taxes, insurance expenses, office expenses, and utilities.

Karat Packaging Inc. 10-Q