Karat Packaging Inc

The asset remains in a constructive Stage 2 uptrend, holding above its rising EMAs and 50 DMA with successive higher highs and higher lows backed by Bullish Pivot Point dynamics. Short-term extension above the EMAs and moderate overbought conditions suggest timing is less favorable for new entries. We will wait for pullbacks into the rising 21/50 EMA zone near prior resistance to show acceptance before engaging.

• ↑Q2 net sales rose 9.9% YoY to $136.3M, boosted by 23.6% online growth.
• ↑Net income jumped to $29.6M (+168% YoY) and free cash flow reached $31.8M.
• ↓Tariff refunds of $25.8M boosted Q2 margins; ex-refund gross margin 37.7%.