v3.25.2
Earnings Per Share
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
(a)Basic

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 June 30,Six Months Ended June 30,
2025202420252024
(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.$10,934 $9,100 $17,343 $15,266 
Weighted average number of common shares in issue20,058 19,994 20,047 19,982 
Basic earnings per share$0.55 $0.46 $0.87 $0.76 

(b)Diluted

Diluted earnings per share is calculated based upon the weighted average number of common shares and common equivalent shares outstanding during the period, calculated using the treasury stock method. Under the treasury stock method, exercise proceeds include the amount the employee must pay for exercising stock options and the amount of compensation cost related to stock awards for future services that the Company has not yet recognized. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.

The following table summarizes the calculation of diluted earnings per share:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.$10,934 $9,100 $17,343 $15,266 
Weighted average number of common shares in issue20,058 19,994 20,047 19,982 
Dilutive shares
Stock options and restricted stock units133 120 148 113 
Adjusted weighted average number of common shares20,191 20,114 20,195 20,095 
Diluted earnings per share$0.54 $0.45 $0.86 $0.76 

For both the three months ended June 30, 2025 and 2024, no shares of potentially dilutive shares have been excluded in the diluted earnings per share calculation due to their anti-dilutive impact on earnings per share. For the six months ended June 30, 2025 and 2024, a total of 0 and 10,000 shares of potentially dilutive shares, respectively, have been excluded in the diluted earnings per share calculation due to their anti-dilutive impact on earnings per share.