Segment Report (Tables)

12 Months Ended

Dec. 31, 2025

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


	Year Ended December 31,
	2025		2024
	(in thousands)
Net sales	$	467,743	$	422,633
Less (Add):
Cost of goods sold	295,607		258,304
Shipping and transportation	41,079		34,119
Salaries and benefits	37,684		36,311
Professional services	4,967		5,024
Depreciation and amortization	4,618		4,290
Rent expense	12,702		9,364
Marketing expense	5,675		6,762
Online platform fees	7,254		11,043
Warehouse expense	4,155		3,862
Stock-based compensation	1,182		2,065
ROU asset impairment expense	—		1,993
Secondary offering transaction costs	214		—
(Gain) loss, net, on disposal of property and equipment	(493)		759
Interest expense	2,055		2,123
Provision for income taxes	10,358		9,871
Other segment expenses*	11,685		10,976
Interest income	2,210		2,299
Other income, net	1,453		2,758
Segment net income	32,664		30,824
Reconciliation of segment net income to consolidated net income
Adjustments and reconciling items	—		—
Consolidated net income	32,664		30,824

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

Karat Packaging Inc. 10-K