Karat Packaging Inc.

Good afternoon and welcome to the Carrot Packaging fourth quarter 2025 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Roger Pondell, Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, everyone, and welcome to Carrot Packaging's fourth quarter and full year 2025 conference call. I'm Roger Pondell with Pondell Wilkinson, Carrot Packaging's Investor Relations firm. It will be my pleasure momentarily to introduce the company's Chief Executive Officer, Alan Yu, and its Chief Financial Officer, Jan Gatto. Before I turn the call over to Alan, I want to remind our listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions and many of which are beyond the company's control, including those set forth in the risk factor section of the company's most recent Form 10-K, as filed with the Securities and Exchange Commission, copies of which are available on the SEC's website at www.sec.gov, along with other company filings made with the SEC from time to time. Actual results can differ materially from these forward-looking statements, and current packaging undertakes no obligation to update any forward-looking statements except as required by law. Please also note that during this call, we will be discussing adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, and free cash flow, which are non-GAAP financial measures that as defined by SEC Regulation G. A reconciliation of the most directly comparable GAAP measures to the non-GAAP financial measures is included in today's press release, which is now posted on the company's website. And with that, I will turn the call over to CEO Alan Yu.

Alan? Thank you, Roger. Good afternoon, everyone. Despite ongoing trade volatility, Carrick continues to deliver profitable growth, demonstrating the strength and resilience of our business model. We closed 2025 with an increase of 13.7% net sales in the fourth quarter, fueled by strong double-digit volume growth across all major markets. Notably, pricing also turned positive for the first time since early 2023, adding further momentum to our performance. Our ongoing effort to diversify sourcing continues to deliver positive results, we have adjusted our import volume across sourcing countries following tariffs and foreign currency development. During the fourth quarter, our import mix consisted of 46% from Taiwan, 14% from China, 13% from the United States, and 11% each from Vietnam and Malaysia. Our resilient global supply chain enabled us to maintain a solid 34% gross margin, despite significantly higher tariff and duty costs during the quarter. Following the recent favorable global tariff developments and destabilization of favorable U.S. dollar and new Taiwan dollar exchange rates, we expect tailwinds on the margin to be realizing beginning in the second quarter of this year. Our new paperback business product category continues to gain strong momentum, expanding steadily and driving meaningful revenue growth. In addition to supplying one of our largest national chain accounts, we are actively pursuing additional opportunities, some of which are at the final confirmation stage. We are also strengthening this category by supplying generic paperback to smaller customer accounts in addition to custom paperbacks, and we expect to continue gaining market shares in this category in the years ahead. Our eco-friendly product sales, boosted in part by paperbacks, grew to 37.3% of total revenue in the fourth quarter of 2025, up from 34.5% in the same quarter of 2024. As our paperback category businesses continue to expand, we are further strengthening our position as a leading provider of sustainable, eco-friendly, disposable food service product. In today's consistently shifting trade environment, we believe that CARIC global sourcing flexibility and efficient logistic capabilities position us well to support continued growth and the margin improvement. We are also maintaining our focus on operating efficiency reflected in the improvement of our operating costs leveraged to 26.7% in the fourth quarter of 2025 from 32% in the prior year quarter. Together, these efforts provide a solid foundation as we look forward to another strong year. I will now turn the call to Jian Guo, our Chief Financial Officer, to discuss the company financial result in greater detail. Jen?