Revenue Breakdown - In 2025, the company generated net revenue of $395.0 million, with approximately 47% from North America, 45% from Europe, and 8% from Asia and other locations[17] - Approximately 40% of net revenue is derived from sales to e-commerce end-users, highlighting the significant growth opportunity in this sector[18] - Sales to the food and beverage industry represented about 3% of net revenue in 2025, with a focus on sustainable cold chain solutions expected to drive future growth[18] - Void-Fill products generated $177.1 million in revenue in 2025, accounting for 45% of total net revenue[27] - Cushioning products generated $142.1 million in revenue in 2025, accounting for 36% of total net revenue[27] - Wrapping products generated $36.7 million in revenue in 2025, accounting for 9% of total net revenue[27] - Sales to industrial manufacturing end-users accounted for approximately 11% of net revenue in 2025[43] - Sales to industrial machinery end-users accounted for approximately 6% of net revenue in 2025[44] - Sales to other industries accounted for approximately 43% of net revenue in 2025[45] - Approximately 80% of total net revenue was derived from sales to distributors in 2025[32] - Direct sales to end-users accounted for approximately 20% of net revenue in 2025, showcasing a diversified sales strategy[33] - Over a third of the company's net revenue in 2025 was attributed to e-commerce sectors, with the highest sales typically occurring in the fourth fiscal quarter[46] Product Performance - Automation and Machine Vision products accounted for 10% of net revenue in 2025, up from 8% in 2024, indicating a growing demand for these solutions[21] - Automation products generated $39.1 million in revenue in 2025, accounting for 10% of total net revenue[30] - The company’s PPS systems operate on a razor/razor-blade model, generating recurring revenue through high-margin paper consumables[23] - The installed base of FillPak units was approximately 88,800 as of December 31, 2025[27] - The installed base of PadPak units was approximately 34,100 as of December 31, 2025[27] - The installed base of Wrapping units was approximately 22,900 as of December 31, 2025[27] Strategic Initiatives - The company aims to enhance its position through strategic partnerships and acquisitions, targeting growth in key areas and adjacent business lines[20] - The company plans to continue product development and innovation to meet evolving consumer and business preferences[20] - The Malaysia facility, operational since the second half of 2024, is expected to improve service capabilities and cost profiles in the Asia Pacific market[19] - The company has established long-standing relationships with paper suppliers, which helps mitigate fluctuations in paper costs through quarterly or semi-annual negotiations[49] Sustainability Efforts - The company aims to reduce greenhouse gas emissions by 46% and source at least 75% of its paper supply from recycled pulp by 2030[53] - The company achieved a significant sustainability milestone, with 66% of its aggregate paper supply manufactured from recycled pulp and 92% of its global raw paper supply being FSC-certified in 2024[55] - The focus on sustainability is expected to drive growth, particularly as consumer preferences shift towards environmentally friendly packaging solutions[18] - Compliance with environmental regulations may increase regulatory burden and compliance costs, impacting financial performance[62] Market Position and Competition - The protective packaging industry is highly competitive, with primary competitors including Sealed Air and Pregis, focusing on both fiber-based and traditional plastic materials[50] - The company holds over 855 U.S. and foreign patents and patent applications, along with more than 310 trademark registrations[60] - The company holds over 855 U.S. and foreign patents related to its business innovations, ensuring a strong intellectual property position[60] Workforce and Operations - As of December 31, 2025, the company employed over 800 full-time employees globally, with approximately 300 located in the United States[59] - The company expects ongoing seasonality in its revenue, with the first fiscal quarter typically showing the slowest sales[46]

Financial Data and Key Metrics Changes - Consolidated net revenue increased by 2.2% year-over-year on a constant currency basis for Q4, or 4.4% excluding the impact of warrants, driven by solid e-commerce volume growth in North America and increased automation sales [16] - For the full year, net revenue increased by 4.7% on a constant currency basis or 6.1% excluding the $5 million headwind associated with warrants [16] - Adjusted EBITDA declined by 10.3% for Q4 on a constant currency basis, or down 1.2% excluding the impact of warrants, bringing the full year's results to down 8.5% on a constant currency basis or down 2.4% excluding the non-cash impact of warrants [21][13] Business Line Data and Key Metrics Changes - Automation achieved nearly 40% growth on a constant currency basis in Q4, with full-year revenue exceeding $40 million, resulting in almost 35% growth [6][10] - North America saw a volume growth of 5.5% in Q4 and 14% for the year, driven by more than 20% growth in void fill and 91.7% growth in automation excluding warrants [10][18] - In Europe and Asia Pacific, combined revenue decreased by 1.4% on a constant currency basis in Q4, primarily due to higher rebate activity and competitive pressures [17] Market Data and Key Metrics Changes - North America was the engine driving top-line performance, with sales up 5.8% for Q4 and 14% for the year [10][18] - Europe experienced a revenue decrease of 1.5% year-over-year on a constant currency basis, with the environment improving from previous tariff impacts [11][12] - The input cost environment remained stable, with energy market volatility being a concern for Europe [12][13] Company Strategy and Development Direction - The company aims to leverage its relationships with large e-commerce players to drive substantial growth, expecting over $1 billion in cumulative revenue from these partnerships over the next 8-10 years [8][24] - Automation is positioned as a hedge against labor shortages and rising costs, with expectations of significant growth in this segment [25][29] - The company is focusing on enhancing its technology stack and operational efficiencies to improve margins and cash generation [20][29] Management's Comments on Operating Environment and Future Outlook - The management noted that the operating environment in North America is more stable than in 2025, with an encouraging outlook despite potential challenges from geopolitical events [26][27] - Inflation is moderating, and real wage growth has turned positive, contributing to a more favorable economic outlook [27] - The company anticipates low to high single-digit volume growth in PPS for 2026, with a focus on automation driving significant revenue growth [29][32] Other Important Information - The company completed 2025 with a strong liquidity position, holding a cash balance of $63 million and no drawings on its revolving credit facility [22] - CapEx for the year was $30.3 million, reflecting a disciplined approach to capital spending [22][23] - The company expects net revenue growth of 5%-12.7% and Adjusted EBITDA growth of 5.4%-19.9% for 2026 [30][31] Q&A Session Summary Question: What is the PPS volume outlook for 2026? - Management expects meaningful growth in North America, potentially high single-digit to double-digit growth, while Europe remains uncertain due to geopolitical factors [36][38] Question: What percentage of PPS growth is driven by customer initiatives with Walmart and Amazon? - Both accounts are expected to drive double-digit growth, particularly as automation equipment is deployed [40] Question: What is the backlog for automation growth in 2026? - The company enters 2026 with its best backlog ever, expecting to surpass $60 million in automation revenue [42][44] Question: How does the company plan to unlock shareholder value? - The company believes it can double its top line and drive significant EBITDA growth through strategic relationships and automation initiatives [60][62]

Financial Data and Key Metrics Changes - Consolidated net revenue increased by 2.2% year-over-year on a constant currency basis for Q4 2025, or 4.4% excluding the impact of warrants, driven by solid e-commerce volume growth in North America and increased automation sales [10][16] - Adjusted EBITDA declined by 10.3% for Q4 on a constant currency basis, or down 1.2% excluding the impact of warrants, bringing the full year's results to down 8.5% on a constant currency basis or down 2.4% excluding the non-cash impact of warrants [13][21] - Gross profit declined by 16% on a constant currency basis in Q4, and 9% for the full year, with expectations for margin improvement in 2026 [18][19] Business Line Data and Key Metrics Changes - Automation achieved nearly 40% growth on a constant currency basis in Q4 and 34.4% growth for the full year, with expectations for substantial growth in 2026 [6][10][29] - North America saw a volume growth of 5.5% in Q4 and 14% for the year, driven by strong e-commerce activity, particularly in December [5][10] - In Europe and Asia Pacific, combined revenue decreased by 1.4% on a constant currency basis in Q4, primarily due to higher rebate activity and a challenging operating environment [11][17] Market Data and Key Metrics Changes - North America was the key driver of performance, with sales up 5.8% for Q4 and 14% for the year, while Europe experienced a revenue decrease of 1.5% year-over-year on a constant currency basis [10][11] - The economic environment in Europe is stabilizing after a period of recession-like conditions, with early signs of improvement in business sentiment [12][27] - The input cost environment has remained stable, but energy market volatility remains a concern, particularly in Europe [12][28] Company Strategy and Development Direction - The company aims to leverage its relationships with large e-commerce players to drive significant growth, expecting over $1 billion in cumulative revenue from these partnerships over the next 8-10 years [8][24] - Automation is positioned as a hedge against labor shortages and rising costs, with a focus on enhancing operational efficiencies and improving margins [25][29] - The company is investing in technology infrastructure to drive productivity and efficiency, with a goal of achieving a net leverage ratio below three times [20][22] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the growth potential in North America and automation, despite uncertainties related to the geopolitical situation in the Middle East [26][30] - The outlook for 2026 includes expected net revenue growth of 5%-12.7% and Adjusted EBITDA growth of 5.4%-19.9%, with automation revenue growth anticipated at 30%-50% [30][31] - The management acknowledged the need for a cautious approach due to recent geopolitical events impacting market sentiment and energy prices [28][56] Other Important Information - The company completed 2025 with a strong liquidity position, holding a cash balance of $63 million and no drawings on its revolving credit facility [22] - Capital expenditures for the year were $30.3 million, reflecting a disciplined approach to spending [22][23] Q&A Session Summary Question: What is the PPS volume outlook for 2026? - Management expects meaningful growth in North America, potentially high single-digit to double-digit growth, while Europe remains uncertain due to geopolitical factors [36][38] Question: What percentage of PPS growth is driven by customer initiatives with Walmart and Amazon? - Both accounts are expected to drive double-digit growth, with automation equipment contributing significantly to the consumables segment [40][41] Question: What is the backlog for automation growth in 2026? - The company enters 2026 with its best backlog ever, expecting to surpass $60 million in automation revenue [42][44] Question: How is free cash flow expected to perform relative to EBITDA guidance? - Free cash flow is anticipated to be around $15 million for the year, considering various expenses and working capital initiatives [46] Question: How does the company view the impact of the Middle East situation on input costs? - While there is some exposure to rising energy prices, the company believes it is manageable and is more concerned about potential demand impacts in Europe [58][59] Question: How does the company plan to unlock shareholder value? - The company aims to double its top line and drive significant EBITDA growth through strategic partnerships and automation initiatives [60][64]

Financial Data and Key Metrics Changes - Consolidated net revenue increased by 2.2% year-over-year on a constant currency basis for Q4, or 4.4% excluding the impact of warrants, driven by solid e-commerce volume growth in North America and increased automation sales [15][10] - For the full year, net revenue increased by 4.7% on a constant currency basis or 6.1% excluding the $5 million headwind associated with warrants [16] - Adjusted EBITDA declined by 10.3% for Q4 on a constant currency basis, or down 1.2% excluding the impact of warrants, bringing the full year's results to down 8.5% on a constant currency basis or down 2.4% excluding the non-cash impact of warrants [21][13] Business Line Data and Key Metrics Changes - Automation achieved nearly 40% growth on a constant currency basis in Q4 and 34.4% growth for the full year, with revenue exceeding $40 million [6][10] - North America saw a 5.5% volume growth in Q4 and 14% for the full year, driven by over 20% growth in void fill and 91.7% growth in automation excluding warrants [10][18] - In Europe and Asia Pacific, combined revenue decreased by 1.4% on a constant currency basis for Q4, primarily due to higher rebate activity and a challenging competitive environment [17] Market Data and Key Metrics Changes - North America experienced a robust e-commerce-led holiday season, particularly in December, contributing to a volume growth of 5.5% in Q4 and 14.3% for the year [5] - Europe showed signs of improvement after a challenging year, with economic fundamentals stabilizing despite ongoing geopolitical uncertainties [12][27] - The input cost environment remained stable, with energy market volatility being a key concern moving forward [12][28] Company Strategy and Development Direction - The company aims to leverage its partnerships with major e-commerce players to drive substantial growth, expecting over $1 billion in cumulative revenue from these relationships over the next 8-10 years [7][23] - Automation is positioned as a hedge against labor shortages and rising costs, with expectations of significant growth in this segment [24][29] - The company is focusing on enhancing its technology stack and operational efficiencies to improve margins and cash generation [20][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural forces shaping the packaging and fulfillment landscape, indicating a stable operating environment in North America and an improving outlook in Europe [26][27] - The geopolitical situation, particularly the conflict in the Middle East, poses uncertainties that could impact demand and pricing [28][56] - The company anticipates net revenue growth of 5%-12.7% and Adjusted EBITDA growth of 5.4%-19.9% for 2026, with a focus on driving top-line growth and improving margins [29][30] Other Important Information - The company completed 2025 with a strong liquidity position, holding a cash balance of $63 million and no drawings on its revolving credit facility [22] - CapEx for the year was $30.3 million, reflecting a disciplined approach to capital expenditures [22] Q&A Session Summary Question: What is the PPS volume outlook for 2026 by region? - Management expects meaningful growth in the U.S., potentially high single-digit to double-digit growth, while Europe remains uncertain due to geopolitical factors [35][36] Question: What percentage of PPS growth is driven by customer initiatives with Walmart and Amazon? - Both accounts are expected to drive double-digit growth, with automation equipment playing a significant role in the growth of consumables [40] Question: What is the backlog visibility for the targeted 30%-50% growth in automation for 2026? - The company enters 2026 with its best backlog ever, driven by strong activity in the U.S. and Europe, and confidence in surpassing the lower end of the growth target [42][43] Question: How does the company plan to unlock shareholder value? - Management believes that doubling the top line and driving significant EBITDA growth through strategic relationships and automation will unlock shareholder value [62][64]

4Q25 Earnings Presentation March 5, 2026 Disclaimers The results of operations data contained in this presentation are based on our preliminary, unaudited results of operations for the quarter and year ended December 31, 2025. Such preliminary data should not be viewed as a comprehensive statement of our financial results for the quarter ended December 31, 2025 CAUTION ABOUT FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of Section 21E of the Securities ...

Financial Performance - Net revenue for Q4 2025 increased by 6.6% year-over-year to $111.9 million, with a constant currency growth of 2.2%[11] - AEBITDA for Q4 2025 was $24.0 million, down 5.1% year-over-year, and down 10.3% on a constant currency basis[11] - Full year 2025 net revenue growth was 4.8% and AEBITDA declined by 8.5% on a constant currency basis[6] - The company reported a net loss of $9.5 million for Q4 2025, compared to a net loss of $8.0 million in the prior year[12] - The net loss for 2025 was $38.3 million, compared to a net loss of $21.5 million in 2024, indicating a worsening of 78.1%[28] - Basic and diluted loss per share for 2025 was $0.45, compared to $0.26 in 2024[28] - For Q4 2025, the net loss was $9.5 million, an increase of 18.8% compared to a net loss of $8.0 million in Q4 2024[42] - EBITDA for the year 2025 was $53.5 million, a decrease of 23.8% from $70.2 million in 2024[46] - AEBITDA for the year 2025 was $79.2 million, down 5.5% from $83.8 million in 2024[46] Revenue Breakdown - Net product revenue for the year ended December 31, 2025, was $332.7 million, an increase of 5.4% from $315.5 million in 2024[28] - Machine lease revenue increased to $62.3 million in 2025, up from $53.4 million in 2024, representing a growth of 13.6%[28] - Total net revenue for 2025 reached $395.0 million, compared to $368.9 million in 2024, marking a year-over-year increase of 7.5%[28] Cash and Liquidity - The company maintains a strong liquidity position with a cash balance of $63.0 million and no borrowings on its $50.0 million Revolving Credit Facility[15] - Cash and cash equivalents at the end of 2025 were $63.0 million, down from $76.1 million at the end of 2024, reflecting a decrease of 17.8%[30] - The company reported a net cash provided by operating activities of $23.1 million for 2025, down from $41.4 million in 2024[32] Asset and Liability Management - Total assets increased to $1,124.9 million in 2025 from $1,104.2 million in 2024, representing a growth of 1.8%[30] - Total liabilities rose to $590.0 million in 2025, up from $556.1 million in 2024, an increase of 6.1%[30] Future Projections - The company forecasts net revenue growth of 5.1% to 12.7% for 2026, estimating revenue between $415 million and $445 million[8] - AEBITDA for 2026 is projected to grow by 5.4% to 19.9%, targeting between $83.5 million and $95 million[8] - The company aims to double its top-line over the next five years while improving its AEBITDA margin profile[7] Operational Metrics - The company achieved a 3.1% overall volume growth in Q4 2025, with Automation growing nearly 40% on a constant currency basis[4] - The installed base of protective packaging systems increased by 2.2% year-over-year to approximately 145.8 thousand machines as of December 31, 2025[17] Expense Analysis - Interest expense for Q4 2025 was $8.6 million, an increase of 10.3% from $7.8 million in Q4 2024[42] - Depreciation and amortization expense for the year 2025 was $66.7 million, slightly up from $65.3 million in 2024[46] Currency Impact - The foreign currency gain for the year 2025 was $(5.3) million, compared to $(1.6) million in 2024, reflecting a 231.3% increase in losses[46] - The constant currency (Non-GAAP) % change for Q4 2025 was 21.7%, indicating a positive trend when excluding foreign currency impacts[42]

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Group 1 - Crude Value Insights provides an investment service and community focused on the oil and natural gas sectors, emphasizing cash flow and companies that generate it [1] - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]

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Financial Performance - In Q3 2025, net revenue increased to $99.6 million, up 8.0% from $92.2 million in Q3 2024, with a constant currency increase of 4.4%[141] - Cost of sales rose to $65.2 million, reflecting a 12.8% increase compared to $57.8 million in the same quarter last year[141] - Gross profit remained stable at $34.4 million, with no percentage change year-over-year[141] - Selling, general and administrative expenses increased to $29.6 million, a rise of 2.8% from $28.8 million[141] - The company reported a net loss of $10.4 million in Q3 2025, compared to a net loss of $8.1 million in Q3 2024, representing a 28.4% increase in loss[141] - EBITDA for Q3 2025 was $11.9 million, down 5.6% from $12.6 million in Q3 2024[141] - AEBITDA increased to $21.4 million, up 8.1% from $19.8 million year-over-year[141] - Net revenue for Q3 2025 was $99.6 million, an increase of $7.4 million or 8.0% from $92.2 million in Q3 2024, with a constant currency increase of 4.4%[143] - North America net revenue increased by 10.9% to $44.7 million, driven by void-fill and automation sales, despite a decrease in cushioning sales[154] - Europe/Asia net revenue rose by 5.8% to $54.9 million, attributed to increases in automation and wrapping sales, partially offset by a decline in void-fill sales[155] Cost and Expenses - Cost of sales for Q3 2025 rose to $65.2 million, a 12.8% increase from $57.8 million in Q3 2024, driven by a 9.5% rise in production costs[145] - SG&A expenses increased by 2.8% to $29.6 million, primarily due to a $2.1 million rise in professional services fees[146] - Cost of sales for the nine months ended September 30, 2025 totaled $188.9 million, an increase of $23.4 million or 14.1% compared to $165.5 million in 2024[163] - SG&A expenses increased by $3.3 million or 3.9% to $87.3 million for the nine months ended September 30, 2025[164] - Depreciation and amortization expense rose by $2.1 million or 8.4% to $27.0 million for the nine months ended September 30, 2025[165] - Interest expense increased by $4.9 million or 23.6% to $25.7 million for the nine months ended September 30, 2025[167] Net Loss and EBITDA - EBITDA for the nine months ended September 30, 2025 was $37.2 million, a decrease of $20.1 million or 35.1% compared to $57.3 million in 2024[172] - Net loss for the nine months ended September 30, 2025 was $28.8 million, an increase of $18.1 million or 169.2% compared to a net loss of $10.7 million in 2024[161] - North America segment EBITDA fell by 63.9% to $3.0 million, primarily due to a non-recurring gain in Q3 2024 and increased professional services fees[157] - Europe/Asia segment EBITDA increased by 107.0% to $8.9 million, driven by higher net revenue[158] - Segment EBITDA for North America was $11.1 million for the nine months ended September 30, 2025, down $6.3 million or 36.2% from $17.4 million in 2024[176] - Segment EBITDA for Europe/Asia decreased to $26.1 million for the nine months ended September 30, 2025, a decline of $13.8 million or 34.6% from $39.9 million in 2024[177] Revenue Drivers - The increase in net revenue was driven by a 5.4% increase in sales volume of paper consumable products and a 2.2% increase in automated equipment sales[162] - Automation revenue surged by 63.0% to $11.9 million, while void-fill and wrapping revenues increased by 4.8% and 9.0%, respectively[143] - Over a third of net revenue in 2024 was attributed to e-commerce sectors, indicating a seasonal sales pattern with peak revenue in Q4[133] Tax and Foreign Currency - Income tax benefit for Q3 2025 was $4.2 million, with an effective tax rate of 28.1%, up from $2.5 million and 23.2% in Q3 2024[152] - Foreign currency gain for the nine months ended September 30, 2025 was $5.0 million, an increase of $3.9 million from $1.1 million in 2024[168] - The company experienced a foreign currency loss of $5.0 million for the nine months ended September 30, 2025, compared to a loss of $1.1 million in 2024, marking a significant increase of 354.5%[181] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $49.9 million, which, along with cash flows from operations, is expected to cover current liquidity needs[182] - The company reported a net cash provided by operating activities of $3.6 million for the nine months ended September 30, 2025, a significant decrease from $34.9 million in the same period of 2024, primarily due to a non-recurring patent litigation settlement[192] - Net cash used in investing activities increased to $27.6 million in the nine months ended September 30, 2025, compared to $24.7 million in 2024, reflecting investments in production equipment and machinery[193] - The company experienced a net cash used in financing activities of $5.3 million for the nine months ended September 30, 2025, up from $2.3 million in 2024, due to principal payments on term loans and other financing arrangements[194] - The company had no outstanding amounts under its $50.0 million revolving credit facility as of September 30, 2025, indicating strong liquidity management[186] - The company remains in compliance with all debt covenants as of September 30, 2025, ensuring financial stability[186] Capital Expenditures and Inventory - The company anticipates an increase in capital expenditures, primarily related to production and maintenance of PPS systems at end-user facilities[183] - The company is evaluating its inventory requirements and adjusting according to volume forecasts, which may impact future capital requirements[185] - The company is evaluating alternative suppliers to mitigate the impact of tariffs on capital expenditures related to equipment sourced from Asia[132] Adjustments and Impairments - Adjustments related to M&A, restructuring, and severance costs increased to $11.6 million in 2025 from $5.6 million in 2024, reflecting a rise of 107.1%[181] - The company recorded a non-cash impairment loss of $0.2 million in 2025, down from $0.9 million in 2024, indicating a decrease of 77.8%[181] Debt and Financing - As of September 30, 2025, the company had $412.0 million in total debt, a slight decrease from $415.7 million as of December 31, 2024, with short-term debt remaining relatively stable at $5.9 million[186] - The Term Facility matures in December 2031, with an interest rate of 8.80% as of September 30, 2025, reflecting the company's borrowing costs[187] - The company had $5.9 million committed to outstanding letters of credit, leaving a net availability of $44.1 million under the Revolving Facility as of September 30, 2025[188] - The company’s cash and cash equivalents decreased to $49.9 million at the end of the period from $76.1 million at the beginning, indicating a cash outflow trend[191]