| 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 June 30, | | Six Months Ended June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | (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 issue | 20,058 | | | 19,994 | | | 20,047 | | | 19,982 | | | Basic earnings per share | $ | 0.55 | | | $ | 0.46 | | | $ | 0.87 | | | $ | 0.76 | |
The following table summarizes the calculation of diluted earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | (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 issue | 20,058 | | | 19,994 | | | 20,047 | | | 19,982 | | | Dilutive shares | | | | | | | | | Stock options and restricted stock units | 133 | | | 120 | | | 148 | | | 113 | | | Adjusted weighted average number of common shares | 20,191 | | | 20,114 | | | 20,195 | | | 20,095 | | | Diluted earnings per share | $ | 0.54 | | | $ | 0.45 | | | $ | 0.86 | | | $ | 0.76 | |
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