Ranpak Holdings Corp. Reports Third Quarter 2025 Financial Results

• Net revenue for the third quarter increased 8.0% year over year to $99.6 million, including a $0.8 million non-cash reduction for warrants, and increased 4.4% year over year on a constant currency basis
• Net loss for the third quarter of $10.4 million compared to net loss of $8.1 million for the prior year period
• Adjusted EBITDA ("AEBITDA") for the third quarter of $21.4 million, an increase of 8.1%, or $1.6 million, year over year (3.5% increase on a constant currency basis), including a $0.8 million non-cash reduction for warrants
• Packaging System placement up 1.4% year over year to approximately 145.6 thousand machines at September 30, 2025

Ranpak Holdings Corp. (NYSE:PACK) ("Ranpak" or "the Company"), a leading provider of environmentally sustainable, systems-based, product protection and end-of-line automation solutions for e-commerce and industrial supply chains, today reported its third quarter 2025 financial results.

Omar Asali, Chairman and Chief Executive Officer, commented, "Our third quarter was a major stepping stone towards achieving the expected long-term growth outlook for Ranpak. In August, we signed a partnership and warrant agreement with Walmart that was forged through our innovations in Automation. This is a transformative deal for Ranpak, and with our Automation focus and origins, I believe this agreement solidifies Ranpak as a leading provider of warehouse automation solutions. This partnership is leading to even deeper relationships in protective, providing a concrete example of the symbiotic nature of our two primary product lines. Under this partnership, Walmart has received 22.5 million warrants at a strike price of $6.8308, which vest in stages to the extent they spend $300 million (excluding the cost of paper) on Ranpak products over ten years. We believe over $100 million of this potential spend, if made, would be allocated to Automation, leaving the remainder to be focused on Protective Packaging. While the terms of the Walmart agreement specifically exclude the cost of paper for purposes of determining the vesting of warrants, we estimate, based on current paper pricing, that this implies up to roughly $700 million in total spend over the life of the contract to achieve full vesting.

In 2025, Ranpak forged transformative alliances with two of the world's most innovative and discerning leaders in Protective Packaging and warehouse automation. These landmark collaborations represent a pivotal inflection point in our company's evolution. They position Ranpak to grow meaningfully, accelerate innovation, and redefine industry standards. We believe 2025 will be remembered as the year Ranpak transitioned from a single category leader to a transformative force across both protective packaging and automation solutions.

I'm pleased to report that Ranpak delivered another quarter of top-line growth, with third quarter net revenue increasing 8.0% year over year, or 4.4% on a constant currency basis, driven by a robust 63.0% increase in Automation net revenue and sustained strength in North American e-commerce. Automation growth was broad-based, with Europe maintaining its strong trajectory and North America accelerating meaningfully as Walmart starts to ramp. Momentum in our Automation business continues to build, and we are particularly energized by the pace of adoption in North America which is a newer market for us.

In Protective Packaging, third quarter net revenue increased 3.3% year over year driven by favorable currency impacts as North America posted a 3.7% volume increase despite a tough prior-year comparison while Europe/Asia volumes declined 2.5% in a challenging environment, resulting in a modest global contraction in PPS volumes. Although macroeconomic uncertainty persists in Europe, our strong margin performance in the region contributed positively to overall profitability this quarter.

As anticipated, we achieved sequential margin improvement, with gross margins expanding to 34.5% from 31.1% in the second quarter. This reflects the early impact of our margin enhancement initiatives, and we are confident in our ability to sustain this trajectory through year-end, positioning us to close 2025 on a high note.

Adjusted EBITDA for the quarter grew 8.1% year over year, or 3.5% on a constant currency basis, driven by top-line leverage and disciplined cost management. This includes a $0.8 million non-cash warrant adjustment, representing a 4.0% headwind to reported results.

We believe Automation remains on track to achieve approximately $40–$45 million in net revenue for 2025, setting the stage for an expected strong fourth quarter. As I shared last quarter, we have laid a solid foundation for sustainable and profitable growth. I'm encouraged by the continued strength of our North American PPS business and remain confident in our sales leadership in Europe/Asia to drive volume recovery in the near term. With relentless focus on innovation across our product lines, we are well-positioned to deliver differentiated solutions that fuel our global expansion and long-term value creation."

Third Quarter 2025 Highlights

• Net revenue increased 8.0% year over year (including $0.8 million, or 0.9%, non-cash reduction from warrants) and increased 4.4% on a constant currency basis
• Net loss of $10.4 million compared to net loss of $8.1 million for the prior year period
• AEBITDA⁽¹⁾ of $21.4 million is up 8.1% year over year and up 3.5% on a constant currency basis
• Packaging systems placement increased 1.4% year over year, to approximately 145.6 thousand machines as of September 30, 2025

Net revenue for the third quarter of 2025 was $99.6 million compared to $92.2 million for the third quarter of 2024, an increase of $7.4 million or 8.0% (4.4% on a constant currency basis) and includes a non-cash reduction of $0.8 million to void-fill net revenue from the provision for warrants. Net revenue was positively impacted primarily by increases in automation, void-fill, and wrapping. Cushioning increased $0.1 million, or 0.3%, to $35.8 million from $35.7 million; void-fill increased $2.0 million, or 4.8%, to $43.4 million from $41.4 million; wrapping increased $0.7 million, or 9.0%, to $8.5 million from $7.8 million; and automation net revenue increased $4.6 million, or 63.0% to $11.9 million from $7.3 million for the third quarter of 2025 compared to the third quarter of 2024.

The increase in net revenue for the third quarter of 2025 compared to the third quarter of 2024 is quantified by a 4.5% increase in the automated equipment sales, a 3.6% increase from foreign currency fluctuations, and a 1.0% increase in the price or mix of our paper consumable products, partially offset by a decrease in the volume of sales of our paper consumable products of approximately 0.3%, and includes a 0.8% non-cash decrease from the provision for warrants.

The following table presents the non-cash impact that the Company's outstanding warrants had on the Company's results of operations during the third quarters of 2025 and 2024, respectively:

Balance Sheet and Liquidity

Ranpak completed the third quarter of 2025 with a strong liquidity position, including a cash balance of $49.9 million and no borrowings on its $50.0 million revolving credit facility, which matures in December 2029. As of September 30, 2025, the Company had $406.9 million outstanding under its USD-denominated first lien term facility, which matures in December 2031.

The following table presents Ranpak's installed base of Protective Packaging systems by product line as of September 30, 2025 and 2024:

Conference Call Information

The Company will host a conference call and webcast at 8:30 a.m. (ET) on Thursday, October 30, 2025. The conference call and earnings presentation will be webcast live at the following link: https://events.q4inc.com/attendee/322257025. Investors who cannot access the webcast may listen to the conference call live via telephone by dialing (800) 715-9871 and use the Conference ID: 8369975.

A telephonic replay of the webcast also will be available starting at 11:30 a.m. (ET) on Thursday, October 30, 2025 and ending at 11:59 p.m. (ET) on Thursday, November 6, 2025. To listen to the replay, please dial (800) 770-2030 and use the passcode: 8369975.

Cautionary Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not historical facts are forward-looking statements. Our forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this news release include, for example, statements about our expectations around the future performance of the business, including our forward-looking guidance.

The forward-looking statements contained in this news release are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (i) our inability to secure a sufficient supply of paper to meet our production requirements; (ii) the impact of rising prices on production inputs, including labor, energy, and freight on our results of operations; (iii) the impact of the price of kraft paper on our results of operations; (iv) our reliance on third party suppliers; (v) geopolitical conflicts, government shutdowns and other social and political unrest or potential tariffs on the import of goods; (vi) the high degree of competition and continued consolidation in the markets in which we operate; (vii) consumer sensitivity to increases in the prices of our products, changes in consumer preferences with respect to paper products generally or customer inventory rebalancing; (viii) economic, competitive and market conditions generally, including macroeconomic uncertainty, the impact of inflation, and variability in energy, freight, labor and other input costs; (ix) the loss of certain customers; (x) our failure to develop new products that meet our sales or margin expectations or the failure of those products to achieve market acceptance; (xi) our ability to achieve our environmental, social and governance ("ESG") goals and maintain the sustainable nature of our product portfolio and fulfill our obligations under evolving ESG standards; (xii) our ability to fulfill our obligations under new disclosure regimes relating to ESG matters, such as the European Sustainability Disclosure Standards recently adopted by the European Union ("EU") under the EU's Corporate Sustainability Reporting Directive ("CSRD"); (xiii) our future operating results fluctuating, failing to match performance or to meet expectations; (xiv) our ability to fulfill our public company obligations; (xv) our ability to profitably collaborate with strategic partners and enter new markets; and (xvi) other risks and uncertainties indicated from time to time in filings made with the SEC.

Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. We are not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements.

Non-GAAP Measures

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA ("AEBITDA")

Our unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also present Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and adjusted EBITDA ("AEBITDA"), which are non-GAAP financial measures, because they are key measures used by our management and board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating EBITDA and AEBITDA can provide a useful measure for period-to-period comparisons of our primary business operations. We believe that EBITDA and AEBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

EBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to exclude: benefit from (provision for) income taxes; interest expense; and depreciation and amortization.

AEBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to exclude: benefit from (provision for) income taxes; interest expense; depreciation and amortization; stock-based compensation expense; foreign currency (gain) loss; amortization of cloud-based software implementation costs; and, in certain periods, other income and expense items.

We reconcile this data to our GAAP data for the same periods presented.

Constant Currency

We operate globally, and a substantial portion of our net revenue and operations is denominated in foreign currencies, primarily the Euro. We calculate the year over-year impact of foreign currency movements using prior period foreign currency rates applied to current year results. These "constant currency" change amounts are non-GAAP measures and are not in accordance with, or an alternative to, measures prepared in accordance with GAAP. In addition, constant currency change measures are not based on any established set of accounting rules or principles.

In calculating the Constant Currency (Non-GAAP) % Change, the current year is translated at the average exchange rate for the comparable prior year period, when comparing the current year to the prior year. We believe that our Constant Currency (Non-GAAP) % Change presentation provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Cautionary Notice Regarding Non-GAAP Measures

Non-GAAP measures, such as EBITDA, AEBITDA, and constant currency change, have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. In particular, non-GAAP financial measures should not be viewed as substitutes for, or superior to, net income (loss) prepared in accordance with GAAP as a measure of profitability or liquidity. Some of these limitations are:

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and AEBITDA do not reflect all cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
• EBITDA and AEBITDA do not reflect changes in, or cash requirements for, our working capital needs;
• EBITDA and AEBITDA do not reflect the impact of the recording or release of valuation allowances or tax payments that may represent a reduction in cash available to us;
• AEBITDA does not consider the potentially dilutive impact of stock-based compensation, and in certain periods, other income and expense items, such as restructuring and integration costs;
• constant currency change measures exclude the foreign currency exchange rate impact on our foreign operations; and
• other companies, including companies in our industry, may calculate EBITDA, AEBITDA, and constant currency change differently, which reduces their usefulness as comparative measures.

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Megan Wintersteen

[email protected]