Ranpak (PACK)

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Ranpak Holdings Corp (PACK) Declined in Q2 Despite Strong Demand
Yahoo Finance· 2025-09-26 13:51
Market Overview - The U.S. equity market experienced a significant recovery in Q2 2025, rising 23% from its low to end the quarter at a record high [1] - U.S. large-cap stocks gained 11.1% during the quarter, with growth stocks outperforming value stocks [1] - The Meridian Contrarian Fund achieved a net return of 16.42% in Q2 2025, surpassing the Russell 2500 Index's return of 8.59% and the Russell 2500 Value Index's return of 7.29% [1] Company Focus: Ranpak Holdings Corp. (NYSE:PACK) - Ranpak Holdings Corp. specializes in paper-based protective packaging solutions, catering to e-commerce and industrial supply chains [2][3] - The stock of Ranpak Holdings Corp. saw a one-month return of -3.03% and a 52-week decline of 20.37%, closing at $5.12 per share with a market capitalization of $431.953 million on September 25, 2025 [2] - The company is recognized for its environmentally friendly products, which are more sustainable compared to traditional packaging materials [3] Investment Insights - Despite recent stock declines due to higher input and logistics costs, the underlying demand for Ranpak's products remains strong [3] - The company is expected to recover margins and expand due to ongoing automation initiatives and a secular shift away from plastics towards paper [3] - Ranpak Holdings Corp. was held by 21 hedge fund portfolios at the end of Q2 2025, a decrease from 23 in the previous quarter, indicating a potential shift in investor interest [4]
Wall Street Analysts Predict a 35.8% Upside in Ranpak Holdings (PACK): Here's What You Should Know
ZACKS· 2025-09-01 14:56
Core Viewpoint - Ranpak Holdings Corp (PACK) has shown a significant price increase of 52.2% over the past four weeks, with a mean price target of $7.17 indicating a potential upside of 35.8% from the current trading price of $5.28 [1] Price Targets and Analyst Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $2.57, where the lowest estimate is $5.00 (5.3% decline) and the highest is $10.00 (89.4% increase) [2] - A low standard deviation among price targets suggests a strong agreement among analysts regarding the stock's price movement direction [9] Earnings Estimates and Analyst Sentiment - There is increasing optimism among analysts about PACK's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 15.8% over the past month, with no negative revisions [12] - PACK holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are often sought after, they can mislead investors, and reliance solely on them may not yield favorable returns [3][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]
Why Fast-paced Mover Ranpak Holdings (PACK) Is a Great Choice for Value Investors
ZACKS· 2025-08-25 13:50
Group 1: Momentum Investing Overview - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for trending stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 2: Investment Strategy - Investing in bargain stocks that have recently shown price momentum may be a safer approach [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Ranpak Holdings Corp (PACK) Analysis - Ranpak Holdings Corp (PACK) has shown a price increase of 16.3% over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, PACK's stock gained 34.8%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - PACK has a beta of 2.7, suggesting it moves 170% higher than the market in either direction, indicating fast-paced momentum [4] Group 4: Performance Metrics - PACK has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investor interest [6] - Currently, PACK is trading at a Price-to-Sales ratio of 0.99, indicating it is reasonably valued at 99 cents for each dollar of sales [6] Group 5: Additional Opportunities - Besides PACK, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify potential winning stocks [8]
Despite Fast-paced Momentum, Ranpak Holdings (PACK) Is Still a Bargain Stock
ZACKS· 2025-08-08 13:51
Core Viewpoint - Momentum investing focuses on buying stocks that are trending upwards rather than undervalued stocks, with the belief that one can achieve higher returns in a shorter time frame [1] Group 1: Momentum Investing Strategy - Momentum investing is characterized by the approach of "buying high and selling higher," contrasting with the traditional "buy low and sell high" strategy [1] - Identifying the right entry point for momentum stocks can be challenging, as these stocks may lose momentum if their valuations exceed future growth potential [1] Group 2: Investment Opportunities - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [2] - Ranpak Holdings Corp (PACK) is highlighted as a strong candidate for momentum investing, with a four-week price change of 4.5% indicating growing investor interest [3] - Over the past 12 weeks, PACK's stock has gained 8.7%, demonstrating its ability to deliver positive returns over a longer time frame [4] - PACK has a high beta of 2.7, suggesting it moves 170% higher than the market in either direction, indicating fast-paced momentum [4] Group 3: Performance Metrics - PACK has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential success [5] - The stock has received a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investor interest [6] - PACK is currently trading at a Price-to-Sales ratio of 0.88, indicating it is relatively cheap at 88 cents for each dollar of sales [6] Group 4: Additional Investment Options - Besides PACK, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]
Ranpak Holdings: We Are At The Early Stages Of A Turnaround
Seeking Alpha· 2025-08-07 11:30
Group 1 - Ranpak Holdings experienced a positive response from shareholders following the announcement of its second quarter financial results for the 2025 fiscal year on August 5th [1] - The company is focused on cash flow generation, which is critical for identifying value and growth prospects within the oil and natural gas sector [1] Group 2 - The investment service offers subscribers access to a 50+ stock model account, providing in-depth cash flow analyses of exploration and production firms [2] - Subscribers can engage in live chat discussions about the oil and gas sector, enhancing their understanding and investment strategies [2]
Ranpak (PACK) Q2 Revenue Rises 7%
The Motley Fool· 2025-08-06 04:27
Core Insights - Ranpak reported Q2 2025 net revenue of $92.3 million and a net loss per share of $0.09, missing analyst expectations for both revenue and earnings [1][2] - The company experienced a significant decline in gross margin, which fell by 5.4 percentage points year-over-year to 31.3% [2][5] - Management highlighted a focus on margin recovery and positive trends in automation and system placements, despite ongoing cost pressures [1][4] Financial Performance - Q2 2025 EPS (GAAP) was $(0.09), compared to an estimate of $(0.08) and a profit of $0.07 in Q2 2024, reflecting a year-over-year decline of 228.6% [2] - Revenue for Q2 2025 was $92.3 million, slightly below the estimated $94.45 million, but up 6.8% from $86.4 million in Q2 2024 [2] - Adjusted EBITDA for Q2 2025 was $16.5 million, down 15.8% from $19.6 million in the same quarter last year [2] Business Overview and Strategic Focus - Ranpak specializes in fiber-based, recyclable, and biodegradable packaging systems aimed at reducing plastic waste, with a business model that ensures recurring revenue through proprietary consumable materials [3] - The company is prioritizing sustainable packaging demand, nurturing recurring revenue from its installed base, and expanding automation offerings, particularly in North America and select Asian markets [4] Operational Developments - Profit margins declined sharply due to higher production and logistics costs, particularly in North America, impacting overall profitability [5] - Revenue growth varied across product lines, with void-fill packaging systems growing by 9.0% and cushioning systems by 5.1%, while wrapping systems saw a decline of 13.1% [6] - North America remained the primary growth engine, with over 145,000 packaging systems installed, a 2.7% increase year-over-year [7] Future Guidance - For the second half of 2025, Ranpak projects net revenue between $216 million and $230 million, with adjusted EBITDA expected to range from $44.5 million to $54.5 million [10] - Management anticipates a gross margin improvement of three to five percentage points in North America, driven by cost actions and automation projects [11]
Ranpak (PACK) - 2025 Q2 - Earnings Call Transcript
2025-08-05 13:30
Financial Data and Key Metrics Changes - Consolidated net revenue increased by 3.8% year-over-year, with a 5.2% increase in volume growth driven by e-commerce activity in North America [12][20] - Adjusted EBITDA declined by 18% for the quarter, or 12% excluding a non-cash impact of $1,200,000 from Amazon warrants [15][24] - Gross profit declined by 12% on a constant currency basis, with a 13% decline in gross profit in Europe and Asia Pacific due to lower sales and higher production costs [22][24] Business Line Data and Key Metrics Changes - North America was the key driver of top-line performance, with sales up 12.2% and volumes up 14.8% compared to Q2 2024 [13][20] - Automation revenue increased by 34% year-over-year, with expectations of full-year automation revenue between $40 million and $45 million [15][20] - Europe and Asia Pacific volumes were flat compared to the prior year, with Europe facing growth challenges due to tariff and trade uncertainties [14][20] Market Data and Key Metrics Changes - North America experienced solid growth, while Europe and Asia Pacific faced challenges, with combined revenue in Europe and APAC decreasing by 2.7% on a constant currency basis [20][21] - The energy market in Europe improved, with Dutch natural gas prices down more than 30% from early Q1 peaks, which is expected to positively impact margins [18][20] Company Strategy and Development Direction - The company is focusing on cost reduction and margin improvement initiatives, particularly in North America, with expectations for these efforts to take effect in Q3 [8][10] - A strategic multiyear deal in North America is anticipated to be transformational for the business, consuming significant capacity in the Shelton facility [6][11] - The company is transitioning to a more global organizational structure to enhance operational efficiency and scalability [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improved financial performance in the second half of the year, driven by cost improvement initiatives and deeper relationships with enterprise customers [6][7] - The company expects to see a normalization of input costs and improved margins in the second half, particularly in North America [17][18] - Management acknowledged the challenging start to the year but emphasized the groundwork laid for future growth and expansion [30][36] Other Important Information - The company has reduced headcount by 3% since April as part of cost-cutting measures [9] - The liquidity position remains strong, with a cash balance of $49.2 million and no drawings on the revolving credit facility [25][26] - The company is evaluating strategic sourcing options to minimize the impact of tariffs on capital expenditures [28] Q&A Session Summary Question: Can you provide a bridge on EBITDA between 2024 and 2025? - Management expects volumes to be up by high single digits, but gross margin is anticipated to compress by about five points due to various pressures including warrants and temporary inefficiencies [38][40] Question: What is the outlook for Europe in July? - July showed volume growth in Europe, indicating potential stabilization, but management cautioned that it is too early to declare a trend [42][44] Question: How much of the gross margin decline was due to product mix in North America? - Approximately 4.7 points of margin pressure was related to warrants and temporary issues, with expectations for margin improvement beginning in Q3 [46][48] Question: What is the free cash flow outlook? - The company expects to finish the year with $70 million to $75 million in cash, lower than initial expectations due to lower EBITDA and inefficiencies [50][51] Question: What factors give confidence in the PPS business stepping up in the second half? - Management highlighted large enterprise wins in North America and improved conditions in Europe as key drivers for expected volume growth [56][58]
Ranpak (PACK) - 2025 Q2 - Quarterly Report
2025-08-05 13:18
[PART I – FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section presents Ranpak Holdings Corp.'s unaudited condensed consolidated financial information, including financial statements, management's discussion, and market risk disclosures [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Ranpak Holdings Corp.'s unaudited condensed consolidated financial statements and accompanying notes [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) This section presents the company's unaudited statements of operations and comprehensive income (loss) for the specified periods | Metric | Three Months Ended June 30, 2025 (Millions) | Three Months Ended June 30, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------- | :------- | | Net Revenue | $92.3 | $86.4 | $5.9 | 6.8% | | Gross Profit | $28.9 | $31.7 | $(2.8) | (8.8)% | | Loss from Operations | $(9.7) | $(5.2) | $(4.5) | 86.5% | | Net (Loss) Income | $(7.5) | $5.5 | $(13.0) | (236.4)% | | Basic and Diluted (Loss) Income per Share | $(0.09) | $0.07 | $(0.16) | (228.6)% | | Metric | Six Months Ended June 30, 2025 (Millions) | Six Months Ended June 30, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :---------------- | :------- | | Net Revenue | $183.5 | $171.7 | $11.8 | 6.9% | | Gross Profit | $59.8 | $64.0 | $(4.2) | (6.6)% | | Loss from Operations | $(17.7) | $(10.0) | $(7.7) | 77.0% | | Net (Loss) Income | $(18.4) | $(2.6) | $(15.8) | 607.7% | | Basic and Diluted (Loss) Income per Share | $(0.22) | $(0.03) | $(0.19) | 633.3% | [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section provides the company's unaudited balance sheet data for the specified periods | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------- | :----------------------- | :--------------------------- | :---------------- | :------- | | Total Assets | $1,138.0 | $1,104.2 | $33.8 | 3.1% | | Total Current Assets | $151.9 | $151.2 | $0.7 | 0.5% | | Cash and Cash Equivalents | $49.2 | $76.1 | $(26.9) | (35.3)% | | Inventories | $38.1 | $21.7 | $16.4 | 75.6% | | Total Liabilities | $599.0 | $556.1 | $42.9 | 7.7% | | Total Shareholders' Equity | $539.0 | $548.1 | $(9.1) | (1.7)% | [Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section details changes in shareholders' equity for the specified period | Item | Amount (Millions) | | :-------------------------------- | :---------------- | | Balance at December 31, 2024 | $548.1 | | Stock-based awards vested and distributed | $(1.2) | | Amortization of restricted stock units | $4.1 | | Initial vesting of common stock warrants | $6.0 | | Provision for common stock warrants | $1.8 | | Net loss | $(18.4) | | Other comprehensive loss | $(1.4) | | Balance at June 30, 2025 | $539.0 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash flow activities for the specified periods | Activity | Six Months Ended June 30, 2025 (Millions) | Six Months Ended June 30, 2024 (Millions) | Change (Millions) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | :---------------- | | Net cash (used in) provided by operating activities | $(4.9) | $24.8 | $(29.7) | | Net cash used in investing activities | $(19.8) | $(19.1) | $(0.7) | | Net cash used in financing activities | $(4.9) | $(1.6) | $(3.3) | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | $2.7 | $(1.0) | $3.7 | | Net (Decrease) Increase in Cash and Cash Equivalents | $(26.9) | $3.1 | $(30.0) | | Cash and Cash Equivalents, end of period | $49.2 | $65.1 | $(15.9) | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the company's nature of operations, accounting policies, and specific financial data [Note 1 — Nature of Operations](index=9&type=section&id=Note%201%20%E2%80%94%20Nature%20of%20Operations) This note describes Ranpak's business as a global provider of environmentally sustainable packaging solutions - Ranpak is a leading global provider of environmentally sustainable, systems-based, product protection and end-of-line automation solutions for e-commerce and industrial supply chains, offering proprietary protective packaging solutions (PPS) systems and paper consumables[24](index=24&type=chunk) [Note 2 — Basis of Presentation and Summary of Significant Accounting Policies](index=9&type=section&id=Note%202%20%E2%80%94%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis of financial statement presentation and summarizes the company's significant accounting policies - The company is evaluating the impact of recently issued Accounting Standards Updates (ASUs): **ASU 2023-09** (Income Tax Disclosures) effective after **Dec 15, 2024**, and **ASU 2024-03** (Expense Disaggregation Disclosures) effective after **Dec 15, 2026**[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 3 — Supplemental Balance Sheet Data and Cash Flow Information](index=10&type=section&id=Note%203%20%E2%80%94%20Supplemental%20Balance%20Sheet%20Data%20and%20Cash%20Flow%20Information) This note provides additional details on specific balance sheet accounts and cash flow information | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :------------------------ | :----------------------- | :--------------------------- | | Accounts receivable | $45.8 | $44.4 | | Allowance for doubtful accounts | $(0.4) | $(0.5) | | Accounts receivable, net | $45.4 | $43.9 | | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :---------------- | :----------------------- | :--------------------------- | | Raw materials | $19.0 | $12.5 | | Work-in-process | $6.0 | $0.0 | | Finished goods | $13.1 | $9.2 | | Total Inventories | $38.1 | $21.7 | | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------- | :----------------------- | :--------------------------- | | Total property, plant, and equipment | $347.4 | $315.9 | | Accumulated depreciation | $(202.2) | $(178.3) | | Property, plant, and equipment, net | $145.2 | $137.6 | [Note 4 — Segment Information](index=12&type=section&id=Note%204%20%E2%80%94%20Segment%20Information) This note presents financial data broken down by the company's operating segments - The company operates in two reportable segments: **North America** and **Europe/Asia**, with segment profit or loss measured by **EBITDA**[42](index=42&type=chunk) | Segment | Three Months Ended June 30, 2025 (Millions) | Three Months Ended June 30, 2024 (Millions) | | :-------------- | :---------------------------------------- | :---------------------------------------- | | North America | $3.1 | $5.6 | | Europe/Asia | $12.5 | $23.7 | | Consolidated | $15.6 | $29.3 | | Segment | Six Months Ended June 30, 2025 (Millions) | Six Months Ended June 30, 2024 (Millions) | | :-------------- | :-------------------------------------- | :-------------------------------------- | | North America | $8.1 | $9.1 | | Europe/Asia | $17.2 | $35.6 | | Consolidated | $25.3 | $44.7 | [Note 5 — Contracts with Customers](index=14&type=section&id=Note%205%20%E2%80%94%20Contracts%20with%20Customers) This note provides information regarding the company's revenue recognition from customer contracts - One customer comprised **12.7%** and **11.6%** of total net revenue for the three and six months ended June 30, 2025, respectively[48](index=48&type=chunk) - On **January 28, 2025**, the Company entered into an equity agreement with a customer for the grant of non-voting common stock warrants, recording an asset of **$6.0 million** for immediately vested warrants[49](index=49&type=chunk)[104](index=104&type=chunk) | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------- | :----------------------- | :--------------------------- | | Contract Assets | $2.5 | $2.1 | | Contract Liabilities | $8.9 | $3.4 | [Note 6 — Goodwill and Intangible Assets, net](index=14&type=section&id=Note%206%20%E2%80%94%20Goodwill%20and%20Intangible%20Assets,%20net) This note details the company's goodwill and intangible assets, net of accumulated amortization | Segment | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------- | :----------------------- | :--------------------------- | | North America | $338.8 | $338.8 | | Europe/Asia | $118.2 | $104.9 | | Total | $457.0 | $443.7 | | Asset Type | Remaining Useful Life (Years) | Gross Carrying Amount (Millions) | Accumulated Amortization (Millions) | Net (Millions) | | :------------------------------ | :---------------------------- | :------------------------------- | :---------------------------------- | :------------- | | Customer/distributor relationships | 9 | $205.7 | $(83.2) | $122.5 | | Patented/unpatented technology | 5 | $171.8 | $(94.6) | $77.2 | | Intellectual property | 6 | $0.5 | $(0.3) | $0.2 | | Trademarks/tradenames (indefinite) | N/A | $106.2 | — | $106.2 | | Total | 8 (weighted-avg) | $484.2 | $(178.1) | $306.1 | [Note 7 — Long-Term Debt](index=15&type=section&id=Note%207%20%E2%80%94%20Long-Term%20Debt) This note provides information on the company's long-term debt obligations and related terms - The company entered into a First Lien Credit Agreement on **December 19, 2024**, comprising a **$410.0 million Term Facility** maturing in **December 2031** and a **$50.0 million Revolving Facility** maturing in **December 2029**[55](index=55&type=chunk) - The interest rate for the Term Facility was **8.80%** as of **June 30, 2025**, and **8.85%** as of **December 31, 2024**[55](index=55&type=chunk)[192](index=192&type=chunk) - As of **June 30, 2025**, there were no amounts outstanding under the Revolving Facility, with a net availability of **$46.5 million** after accounting for **$3.5 million** committed to outstanding letters of credit[57](index=57&type=chunk)[61](index=61&type=chunk)[193](index=193&type=chunk) | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------- | :----------------------- | :--------------------------- | | Term Facility | $408.0 | $410.0 | | Finance lease liabilities | $3.4 | $4.3 | | Equipment financing | $0.9 | $1.4 | | Deferred financing costs, net | $(9.2) | $(9.3) | | Total debt | $403.1 | $406.4 | | Less: current portion | $(5.4) | $(5.6) | | Long-term debt | $397.7 | $400.8 | [Note 8 — Derivative Instruments](index=17&type=section&id=Note%208%20%E2%80%94%20Derivative%20Instruments) This note describes the company's use of derivative instruments to manage market risks - The company uses derivatives, primarily **cross-currency swaps**, to manage exposure to foreign currency rate fluctuations on USD-denominated debt and foreign currency translation[65](index=65&type=chunk) - Net investment hedges include the **May 2025 Swap** (notional **$80.0 million** for **€80.0 million**) and the **January 2025 Swap** (notional **$80.0 million** for **€77.9 million**), designated to protect foreign operations' value[66](index=66&type=chunk)[67](index=67&type=chunk) - A variable-to-variable cross-currency swap (notional **$50.0 million** for **€47.8 million**) was entered on **January 24, 2025**, and designated as a fair value hedge to reduce foreign currency effects on the Dutch Borrower's term loan[69](index=69&type=chunk) | Classification | June 30, 2025 (Millions) | | :-------------------------------- | :----------------------- | | Accrued liabilities and other (fair value hedge) | $(0.5) | | Accrued liabilities and other (net investment hedges) | $(1.5) | | Derivative instruments (fair value hedge) | $(6.7) | | Derivative instruments (net investment hedges) | $(26.8) | [Note 9 — Accumulated Other Comprehensive Loss](index=18&type=section&id=Note%209%20%E2%80%94%20Accumulated%20Other%20Comprehensive%20Loss) This note provides a breakdown of the components of accumulated other comprehensive loss | Component | Gross Balance (Millions) | Tax Effect (Millions) | Net Balance (Millions) | | :-------------------------------- | :----------------------- | :-------------------- | :--------------------- | | Foreign currency translation | $(11.3) | $4.5 | $(6.8) | | Unrealized loss on cross currency fair value hedge | $(1.2) | $0.4 | $(0.8) | | Total | $(12.5) | $4.9 | $(7.6) | | Item | Six Months Ended June 30, 2025 (Millions) | | :-------------------------------- | :---------------------------------------- | | Beginning balance | $(6.2) | | Other comprehensive loss before reclassifications | $(8.4) | | Tax effects | $7.0 | | Ending balance | $(7.6) | [Note 10 — Fair Value Measurement](index=19&type=section&id=Note%2010%20%E2%80%94%20Fair%20Value%20Measurement) This note details the fair value measurements of financial instruments held by the company | Instrument | Carrying Amount (Millions) | Level 1 (Millions) | Level 2 (Millions) | Level 3 (Millions) | | :-------------------------------------- | :----------------------- | :----------------- | :----------------- | :----------------- | | Money market fund | $24.4 | $24.4 | — | — | | Current and long-term Term debt | $408.0 | — | $406.0 | — | | Cross currency swap agreement - Fair value hedge | $7.2 | — | $7.2 | — | | Cross-currency swap agreements - Net investment hedges | $28.3 | — | $28.3 | — | [Note 11 — Income Taxes](index=20&type=section&id=Note%2011%20%E2%80%94%20Income%20Taxes) This note provides information on the company's income tax expense, effective tax rates, and related components | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30, | 21.5% | 24.8% | | Six Months Ended June 30, | 22.2% | (13.3)% | - The fluctuation in the effective tax rate is primarily attributable to the impact of **stock-based compensation windfall and shortfall**, and **state income taxes**[83](index=83&type=chunk) [Note 12 — Leases](index=20&type=section&id=Note%2012%20%E2%80%94%20Leases) This note details the company's lease arrangements, including right-of-use assets and lease liabilities | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :------------------------ | :----------------------- | :--------------------------- | | Operating lease right-of-use assets, net | $24.0 | $20.9 | | Finance lease right of use assets, net | $3.3 | $4.1 | | Total lease assets | $27.3 | $25.0 | | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :------------------------ | :----------------------- | :--------------------------- | | Operating lease liabilities, current | $4.0 | $4.0 | | Operating lease liabilities, non-current | $24.2 | $20.8 | | Finance lease liabilities, current | $1.5 | $1.6 | | Finance lease liabilities, non-current | $1.9 | $2.7 | | Total lease liabilities | $31.6 | $29.1 | | Period | 2025 (Millions) | 2024 (Millions) | | :-------------------------- | :-------------- | :-------------- | | Three Months Ended June 30, | $1.9 | $1.7 | | Six Months Ended June 30, | $3.7 | $3.3 | [Note 13 — Commitments and Contingencies](index=22&type=section&id=Note%2013%20%E2%80%94%20Commitments%20and%20Contingencies) This note discloses the company's commitments and potential contingent liabilities - The company is subject to legal proceedings but believes any future accruals would not materially affect financial condition, liquidity, or cash flows, with no amounts required for contingencies as of **June 30, 2025**[89](index=89&type=chunk)[90](index=90&type=chunk) - Management believes the company is in material compliance with environmental laws and regulations and maintains insurance coverage, expecting no material adverse effect on future results[91](index=91&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk) [Note 14 — Stock-Based Compensation](index=23&type=section&id=Note%2014%20%E2%80%94%20Stock-Based%20Compensation) This note provides details on the company's stock-based compensation plans and related expenses | Period | 2025 (Millions) | 2024 (Millions) | | :-------------------------- | :-------------- | :-------------- | | Three Months Ended June 30, | $2.0 | $1.5 | | Six Months Ended June 30, | $4.1 | $2.8 | - Approximately **5.9 million shares** remained for issuance under the Ranpak Holdings Corp. 2019 Omnibus Incentive Plan as of **June 30, 2025**[96](index=96&type=chunk) [Note 15 — Earnings (Loss) per Share](index=23&type=section&id=Note%2015%20%E2%80%94%20Earnings%20(Loss)%20per%20Share) This note presents the calculation of basic and diluted earnings (loss) per share | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30, | $(0.09) | $0.07 | | Six Months Ended June 30, | $(0.22) | $(0.03) | - **4.6 million shares** (three months ended June 30, 2025) and **3.8 million shares** (six months ended June 30, 2025) were excluded from diluted EPS calculation due to their anti-dilutive effect[101](index=101&type=chunk) [Note 16 — Transactions with Related Parties](index=24&type=section&id=Note%2016%20%E2%80%94%20Transactions%20with%20Related%20Parties) This note discloses transactions between the company and its related parties - The company has a shared services agreement with **One Madison Group LLC**, an entity controlled by its CEO, for administrative and corporate services; total fees were not significant[102](index=102&type=chunk) [Note 17 — Shareholders' Equity](index=24&type=section&id=Note%2017%20%E2%80%94%20Shareholders'%20Equity) This note provides information on the components of shareholders' equity and related transactions - On **July 30, 2025**, the board authorized an extension of the Class A common stock repurchase program up to **$50.0 million**, with a **36-month expiration**[103](index=103&type=chunk) - On **January 28, 2025**, Ranpak issued a warrant to an Amazon affiliate to acquire up to **18,716,456 Class A common shares** at an exercise price of **$6.8308 per share**; **1,871,646 shares** vested immediately[104](index=104&type=chunk) - The total fair value of the Amazon Warrant Shares on the grant date was **$60.5 million**, valued using a Black-Scholes model with a blended volatility of **50.00%** and an expected term of **8 years**[107](index=107&type=chunk) [Note 18 — Strategic Investments](index=25&type=section&id=Note%2018%20%E2%80%94%20Strategic%20Investments) This note details the company's strategic investments in other entities - During **Q2 2025**, an additional **$2.5 million** cash was invested in Pickle Robot Co., resulting in a **$5.8 million unrealized gain**; carrying value was **$22.1 million** as of **June 30, 2025**[110](index=110&type=chunk) - The carrying value of the investment in Creapaper GmbH was **$4.9 million** as of **June 30, 2025**, and **$4.5 million** as of **Dec 31, 2024**[111](index=111&type=chunk) [Note 19 — Subsequent Events](index=25&type=section&id=Note%2019%20%E2%80%94%20Subsequent%20Events) This note describes significant events that occurred after the balance sheet date - On **July 4, 2025**, the **One Big Beautiful Bill Act (OBBBA)** was enacted in the U.S., including permanent extension of certain Tax Cuts and Jobs Act provisions; the company is assessing its impact[112](index=112&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Ranpak's financial condition, operational results, key performance indicators, and liquidity [Overview](index=27&type=section&id=Overview) This section provides a general description of Ranpak's business and operational scope - Ranpak is a leading global provider of environmentally sustainable, systems-based, product protection and end-of-line automation solutions for e-commerce and industrial supply chains[121](index=121&type=chunk) - **R Squared Robotics**, a division of Ranpak, utilizes three-dimensional computer vision and artificial intelligence technologies to improve end-of-line packaging and logistics[121](index=121&type=chunk) - As of **June 30, 2025**, the company had an installed base of approximately **145.0 thousand Protective Packaging Solutions (PPS) systems**[122](index=122&type=chunk) - Net revenue for the six months ended June 30, 2025, was **$183.5 million**, compared to **$171.7 million** for the same period in 2024[122](index=122&type=chunk) [Key Performance Indicators and Other Factors Affecting Performance](index=27&type=section&id=Key%20Performance%20Indicators%20and%20Other%20Factors%20Affecting%20Performance) This section discusses the primary metrics and external factors influencing the company's financial performance | Product Line | June 30, 2025 (Thousands) | June 30, 2024 (Thousands) | Change (Thousands) | % Change | | :----------- | :------------------------ | :------------------------ | :----------------- | :------- | | Cushioning | 34.6 | 34.9 | (0.3) | (0.9)% | | Void-Fill | 87.9 | 83.9 | 4.0 | 4.8% | | Wrapping | 22.5 | 22.4 | 0.1 | 0.4% | | Total | 145.0 | 141.2 | 3.8 | 2.7% | - **Paper** is the largest input cost, subject to significant fluctuations due to inflation, supply and demand, and energy prices, potentially impacting gross margin[124](index=124&type=chunk)[125](index=125&type=chunk) - The company is exposed to currency translation and transaction risks, primarily with the **Euro**, affecting comparability of results and cash flows, with some exposure hedged by cross-currency swaps[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) - Continued inflationary pressures in **2025** have adversely impacted end-users and net revenue, with price increases partially offsetting higher costs[128](index=128&type=chunk) - Approximately **37% of 2024 net revenue** was from e-commerce, leading to seasonal trends with highest net revenue in Q4 and slowest in Q1[130](index=130&type=chunk) [Non-GAAP Measures](index=29&type=section&id=Non-GAAP%20Measures) This section defines and explains the non-GAAP financial measures used by the company - **EBITDA** is calculated as net income (loss) adjusted for income taxes, interest expense, and depreciation and amortization[132](index=132&type=chunk) - **Adjusted EBITDA (AEBITDA)** further adjusts EBITDA by excluding stock-based compensation expense, foreign currency (gain) loss, and other income and expense items[133](index=133&type=chunk) - **Constant currency change** measures the year-over-year impact of foreign currency movements by translating current year results at prior period average exchange rates[134](index=134&type=chunk)[135](index=135&type=chunk) - Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitutes for GAAP measures[136](index=136&type=chunk)[138](index=138&type=chunk) [Consolidated Results of Operations (Comparison of Second Quarter of 2025 to Second Quarter of 2024)](index=29&type=section&id=Consolidated%20Results%20of%20Operations%20(Comparison%20of%20Second%20Quarter%20of%202025%20to%20Second%20Quarter%20of%202024)) This section compares the consolidated financial performance for the second quarter of 2025 against 2024 | Metric | 2025 (Millions) | 2024 (Millions) | $ Change | % Change | Constant Currency % Change | | :---------- | :-------------- | :-------------- | :------- | :------- | :------------------------- | | Net Revenue | $92.3 | $86.4 | $5.9 | 6.8% | 3.8% | | Product Line | 2025 (Millions) | 2024 (Millions) | $ Change | % Change | Constant Currency % Change | | :----------- | :-------------- | :-------------- | :------- | :------- | :------------------------- | | Cushioning | $36.8 | $35.0 | $1.8 | 5.1% | 0.9% | | Void-Fill | $41.1 | $37.7 | $3.4 | 9.0% | 7.4% | | Wrapping | $7.3 | $8.4 | $(1.1) | (13.1)% | (17.9)% | | Other | $7.1 | $5.3 | $1.8 | 34.0% | 32.1% | - Cost of sales increased by **$8.7 million**, or **15.9%** (**13.0% at constant currency**), to **$63.4 million**, primarily due to increased volume (**4.6%**) and production costs (**8.4%**)[146](index=146&type=chunk)[147](index=147&type=chunk) - Net loss was **$(7.5) million** in Q2 2025, a decrease of **$(13.0) million** compared to net income of **$5.5 million** in Q2 2024[142](index=142&type=chunk) | Metric | 2025 (Millions) | 2024 (Millions) | $ Change | % Change | Constant Currency % Change | | :------- | :-------------- | :-------------- | :------- | :------- | :------------------------- | | EBITDA | $15.6 | $29.3 | $(13.7) | (46.8)% | (48.8)% | | AEBITDA | $16.5 | $19.6 | $(3.1) | (15.8)% | (18.4)% | [Segment Results of Operations - Second Quarter of 2025 and Second Quarter of 2024](index=34&type=section&id=Segment%20Results%20of%20Operations%20-%20Second%20Quarter%20of%202025%20and%20Second%20Quarter%20of%202024) This section analyzes segment-level operational results for the second quarter of 2025 compared to 2024 - North America net revenue increased by **$4.6 million** (**12.2%**) to **$42.3 million**, driven by volume increase (**14.8%**) and automated box sizing equipment sales (**3.9%**)[156](index=156&type=chunk) - Europe/Asia net revenue increased by **$1.3 million** (**2.7%**) to **$50.0 million** (decreased **2.7%** on a constant currency basis), driven by foreign currency fluctuations (**5.4%**)[157](index=157&type=chunk) | Segment | 2025 (Millions) | 2024 (Millions) | $ Change | % Change | | :-------------- | :-------------- | :-------------- | :------- | :------- | | North America | $3.1 | $5.6 | $(2.5) | (44.6)% | | Europe/Asia | $12.5 | $23.7 | $(11.2) | (47.3)% | - North America EBITDA decrease was primarily due to increased foreign currency loss (**$8.7 million**) and production/fulfillment costs (**$6.0 million**), partially offset by increased net revenue (**$4.6 million**) and non-operating income (**$8.4 million**)[159](index=159&type=chunk) - Europe/Asia EBITDA decrease was primarily due to a **$20.4 million decrease** in non-operating income (no reoccurrence of **$16.1 million litigation proceeds** from 2024) and increased intersegment royalties (**$4.3 million**)[160](index=160&type=chunk) [Consolidated Results of Operations (Comparison of Six Months Ended June 30, 2025 to Six Months Ended June 30, 2024)](index=35&type=section&id=Consolidated%20Results%20of%20Operations%20(Comparison%20of%20Six%20Months%20Ended%20June%2030,%202025%20to%20Six%20Months%20Ended%20June%2030,%202024)) This section compares the consolidated financial performance for the six months ended June 30, 2025, against 2024 | Metric | 2025 (Millions) | 2024 (Millions) | $ Change | % Change | Constant Currency % Change | | :---------- | :-------------- | :-------------- | :------- | :------- | :------------------------- | | Net Revenue | $183.5 | $171.7 | $11.8 | 6.9% | 6.3% | | Product Line | 2025 (Millions) | 2024 (Millions) | $ Change | % Change | Constant Currency % Change | | :----------- | :-------------- | :-------------- | :------- | :------- | :------------------------- | | Cushioning | $72.0 | $72.3 | $(0.3) | (0.4)% | (1.4)% | | Void-Fill | $81.4 | $70.8 | $10.6 | 15.0% | 14.8% | | Wrapping | $16.7 | $17.0 | $(0.3) | (1.8)% | (2.4)% | | Other | $13.4 | $11.6 | $1.8 | 15.5% | 14.7% | - Cost of sales increased by **$16.0 million**, or **14.9%** (**14.2% at constant currency**), to **$123.7 million**, primarily due to increased volume (**7.6%**) and production costs (**11.7%**)[166](index=166&type=chunk) - Net loss was **$(18.4) million** in the six months ended June 30, 2025, compared to a net loss of **$(2.6) million** in the prior year, an increase of **$(15.8) million**[162](index=162&type=chunk) | Metric | 2025 (Millions) | 2024 (Millions) | $ Change | % Change | Constant Currency % Change | | :------- | :-------------- | :-------------- | :------- | :------- | :------------------------- | | EBITDA | $25.3 | $44.7 | $(19.4) | (43.4)% | (44.3)% | | AEBITDA | $33.8 | $38.8 | $(5.0) | (12.9)% | (13.4)% | [Segment Results of Operations - Six Months Ended June 30, 2025 and Six Months Ended June 30, 2024](index=38&type=section&id=Segment%20Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030,%202025%20and%20Six%20Months%20Ended%20June%2030,%202024) This section analyzes segment-level operational results for the six months ended June 30, 2025, compared to 2024 - North America net revenue increased by **$15.3 million** (**22.0%**) to **$84.9 million**, driven by volume increase (**28.3%**) and automated box sizing equipment sales (**3.6%**)[176](index=176&type=chunk) - Europe/Asia net revenue decreased by **$3.5 million** (**3.4%**, or **4.4% on a constant currency basis**) to **$98.6 million**, primarily due to decreases across product lines and a **3.0% decrease** in price/mix[177](index=177&type=chunk)[178](index=178&type=chunk) | Segment | 2025 (Millions) | 2024 (Millions) | $ Change | % Change | | :-------------- | :-------------- | :-------------- | :------- | :------- | | North America | $8.1 | $9.1 | $(1.0) | (11.0)% | | Europe/Asia | $17.2 | $35.6 | $(18.4) | (51.7)% | - North America EBITDA decrease was primarily due to increased foreign currency loss (**$6.5 million**), IT maintenance costs (**$1.5 million**), and non-manufacturing employee compensation (**$1.3 million**), partially offset by increased non-operating income (**$9.8 million**)[180](index=180&type=chunk) - Europe/Asia EBITDA decrease was primarily due to a **$22.0 million decrease** in non-operating income (no reoccurrence of **$16.1 million litigation proceeds** from 2024) and increased intersegment royalties (**$5.9 million**)[181](index=181&type=chunk) [Reconciliation of U.S. GAAP to Non-GAAP Measures](index=39&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20to%20Non-GAAP%20Measures) This section provides a reconciliation of GAAP financial measures to non-GAAP measures like EBITDA and Adjusted EBITDA | Metric | Three Months Ended June 30, 2025 (Millions) | Three Months Ended June 30, 2024 (Millions) | $ Change | % Change | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :------- | :------- | | Net (loss) income | $(7.5) | $5.5 | $(13.0) | (236.4)% | | Depreciation and amortization expense | $16.8 | $16.7 | $0.1 | 0.6% | | Interest expense | $8.3 | $5.3 | $3.0 | 56.6% | | Income tax (benefit) expense | $(2.0) | $1.8 | $(3.8) | (211.1)% | | **EBITDA** | **$15.6** | **$29.3** | **$(13.7)** | **(46.8)%** | | Adjustments (e.g., FX, M&A, stock-based comp, strategic investments) | $0.9 | $(9.7) | $10.6 | NM | | **AEBITDA** | **$16.5** | **$19.6** | **$(3.1)** | **(15.8)%** | | Metric | Six Months Ended June 30, 2025 (Millions) | Six Months Ended June 30, 2024 (Millions) | $ Change | % Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :------- | :------- | | Net loss | $(18.4) | $(2.6) | $(15.8) | (607.7)% | | Depreciation and amortization expense | $31.9 | $35.5 | $(3.6) | (10.1)% | | Interest expense | $17.0 | $11.5 | $5.5 | 47.8% | | Income tax (benefit) expense | $(5.2) | $0.3 | $(5.5) | NM | | **EBITDA** | **$25.3** | **$44.7** | **$(19.4)** | **(43.4)%** | | Adjustments (e.g., FX, M&A, stock-based comp, strategic investments) | $8.5 | $(5.9) | $14.4 | NM | | **AEBITDA** | **$33.8** | **$38.8** | **$(5.0)** | **(12.9)%** | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to generate and manage cash flows to meet its financial obligations - As of **June 30, 2025**, the company had **$49.2 million** in cash and cash equivalents, along with borrowing capacity under its revolving credit facilities, deemed sufficient for current requirements[187](index=187&type=chunk) - Total debt (excluding deferred financing costs) was **$412.3 million** as of **June 30, 2025**, with **$5.4 million** classified as short-term; no amounts were outstanding under the **$50.0 million revolving credit facility**[191](index=191&type=chunk)[193](index=193&type=chunk) - Net cash used in operating activities was **$4.9 million** for the six months ended June 30, 2025, a significant decrease from **$24.8 million** provided in the prior year, primarily due to increased net loss and working capital changes[196](index=196&type=chunk)[197](index=197&type=chunk) - Net cash used in investing activities was **$19.8 million** for the six months ended June 30, 2025, reflecting purchases of converter equipment, machinery, and strategic investments[198](index=198&type=chunk) - Net cash used in financing activities was **$4.9 million** for the six months ended June 30, 2025, primarily for term loan principal payments, finance lease liabilities, and tax payments for stock-based awards[199](index=199&type=chunk) [Critical Accounting Policies and Estimates](index=43&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section outlines the accounting policies and estimates that require significant judgment and are crucial to the company's financial reporting - All significant accounting policies, including critical accounting policies and estimates, are disclosed in the company's **2024 10-K** and in **Note 2** of the unaudited condensed consolidated financial statements[202](index=202&type=chunk) [Recently Issued and Adopted Accounting Pronouncements](index=43&type=section&id=Recently%20Issued%20and%20Adopted%20Accounting%20Pronouncements) This section provides information on new accounting standards that have been issued or adopted by the company - For details on recently issued and adopted accounting pronouncements, refer to **Note 2 — Basis of Presentation and Summary of Significant Accounting Policies**[203](index=203&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details Ranpak's exposure to market risks, specifically interest rate risk, foreign currency exchange rate risk, and commodity price risk, and outlines strategies to mitigate these exposures [Interest Rate Risk](index=43&type=section&id=Interest%20Rate%20Risk) This section discusses the company's exposure to interest rate fluctuations and their potential financial impact - The company is exposed to **interest rate risk**, affecting interest income on cash and interest expense on floating-rate debt under its Facilities[204](index=204&type=chunk) - A hypothetical **100 basis point** increase or decrease in applicable base interest rates would result in a **$2.0 million impact** on cash interest expense for the six months ended June 30, 2025[204](index=204&type=chunk) [Foreign Currency Exchange Rate Risk](index=43&type=section&id=Foreign%20Currency%20Exchange%20Rate%20Risk) This section details the company's exposure to foreign currency exchange rate fluctuations and mitigation strategies - The company is exposed to **foreign currency exchange risk** related to transactions and subsidiary balances denominated in currencies other than USD, primarily the **Euro**[206](index=206&type=chunk)[208](index=208&type=chunk) - Mitigation strategies include naturally hedging by matching transaction currencies, maintaining credit access in principal currencies, and using **cross-currency swaps**[207](index=207&type=chunk) - For the six months ended June 30, 2025, **54% ($98.6 million)** of net revenue was non-USD denominated; a **10% change** in the Euro's value would impact net revenue by approximately **$9.9 million**[208](index=208&type=chunk) [Commodity Price Risk](index=44&type=section&id=Commodity%20Price%20Risk) This section addresses the company's exposure to commodity price fluctuations, particularly paper prices - The business is significantly impacted by **paper price fluctuations**, its largest input cost, with global inflation potentially leading to increased volatility[209](index=209&type=chunk) - The company aims to obtain competitive prices and allow operating results to reflect market movements, but its ability to pass on price increases to customers may be limited[209](index=209&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the evaluation of Ranpak's disclosure controls and procedures, acknowledging material weaknesses in internal control over financial reporting, outlining remediation plans, and confirming the fair presentation of financial statements despite these weaknesses [Evaluation of Disclosure Controls and Procedures](index=44&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section describes the evaluation of the effectiveness of the company's disclosure controls and procedures - As of **June 30, 2025**, disclosure controls and procedures were not effective due to **material weaknesses** in internal control over financial reporting, as described in the **2024 10-K**[211](index=211&type=chunk) - Despite material weaknesses, management concluded that consolidated financial statements fairly present the financial position, results of operations, and cash flows for the periods presented[212](index=212&type=chunk) [Remediation Plans](index=44&type=section&id=Remediation%20Plans) This section outlines the company's plans to address identified material weaknesses in internal control over financial reporting - The company continues to implement a remediation plan to address material weaknesses, with an expectation to remediate certain weaknesses by the end of **calendar year 2025**[213](index=213&type=chunk)[214](index=214&type=chunk) - Remediation requires controls to operate effectively for a sufficient period, and delays or changes to timing may occur, with mitigating controls being put in place[214](index=214&type=chunk) [Changes in Internal Control Over Financial Reporting](index=44&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports any changes in internal control over financial reporting during the period - The company reviewed control design and began remediation activities in response to material weaknesses, with no other material changes in internal control over financial reporting during the quarter ended **June 30, 2025**[216](index=216&type=chunk) [PART II – OTHER INFORMATION](index=45&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, defaults, exhibits, and other disclosures [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there are no legal proceedings to report - No legal proceedings are reported for the period[217](index=217&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the company's Annual Report on Form 10-K for a comprehensive discussion of risk factors - Information about risk factors is contained in **Item 1A of the 2024 10-K**[218](index=218&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates that there were no unregistered sales of equity securities or use of proceeds to report - No unregistered sales of equity securities or use of proceeds are reported[219](index=219&type=chunk) [Item 3. Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - No defaults upon senior securities are reported[220](index=220&type=chunk) [Item 4. Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable[220](index=220&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report - No other information is reported[221](index=221&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including corporate documents, warrant agreements, employment agreements, certifications, and XBRL financial information - Key exhibits include Certificate of Incorporation, Bylaws, Warrant to Purchase Common Stock with **Amazon.com NV Investment Holdings LLC**, Separation Agreements, Employment Agreement, **CEO/CFO Certifications**, and **XBRL financial information**[222](index=222&type=chunk) [Signatures](index=47&type=section&id=Signatures) This section contains the required signatures for the Quarterly Report on Form 10-Q, certifying its submission on behalf of Ranpak Holdings Corp - The report was signed by **William Drew**, Executive Vice President and Chief Financial Officer, on **August 5, 2025**[226](index=226&type=chunk)
Ranpak (PACK) - 2025 Q2 - Earnings Call Presentation
2025-08-05 12:30
The results of operations data contained in this presentation are based on our preliminary, unaudited results of operations for the quarter ended June 30, 2025. Such preliminary data should not be viewed as a comprehensive statement of our financial results for the quarter ended June 30, 2025 CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS August 5, 2025 Disclaimers 2Q25 Earnings Presentation The forward-looking statements contained in this presentation are based on our current expectations and belie ...
Ranpak (PACK) - 2025 Q2 - Quarterly Results
2025-08-05 11:30
Executive Summary & Business Outlook This section outlines Ranpak's strategic performance, key achievements, and future financial outlook for 2025 [CEO Commentary & Strategic Highlights](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Highlights) Ranpak achieved its eighth consecutive quarter of volume growth, driven by North American enterprise customers and automation, while implementing cost reductions to improve future gross margins and leveraging a robust automation backlog for significant revenue growth - Achieved **8th consecutive quarter of volume growth**, driven by deepening relationships with Enterprise customers in North America in Protective and Automation[3](index=3&type=chunk) - Global paper volumes increased **5.2%** and net revenue increased **6.8%** year-over-year (**3.8% constant currency**), primarily due to North American e-commerce strength[3](index=3&type=chunk) - AEBITDA declined **15.8%** (**18.4% constant currency**) due to lower volumes in Europe and APAC and higher North American production costs, with margin pressures expected to ease in Q3 due to cost reduction initiatives[3](index=3&type=chunk) - Cost reduction initiatives, including headcount reduction and logistics optimization, aim for a **3-5 gross margin point improvement** in North America in H2 2025[3](index=3&type=chunk) - Automation backlog is robust for H2 2025, with expected net revenue of **$40-$45 million** for the full year, implying substantial growth and improved financial profile[4](index=4&type=chunk) - A strategic relationship with a major player in protective packaging and warehouse automation is viewed as a turning point for establishing leadership in both Protective and Automation[5](index=5&type=chunk) [Outlook for Remainder of 2025](index=1&type=section&id=Outlook%20for%20Remainder%20of%202025) Ranpak updated its 2025 guidance, projecting second-half net revenue of **$216-$230 million** and AEBITDA of **$44.5-$54.5 million**, with total 2025 net revenue of **$406.5 million** and AEBITDA of **$83.3 million**, despite warrant expense Updated Forward-Looking Guidance for H2 2025 (at 1 Euro to 1.15 USD) | Metric | Range | | :---------------- | :---------------- | | Net Revenue | $216 - $230 million | | AEBITDA | $44.5 - $54.5 million | Implied Total 2025 Guidance (using year-to-date actuals and midpoint of H2 guidance) | Metric | Amount | | :---------------- | :---------------- | | Total Net Revenue | $406.5 million | | Total AEBITDA | $83.3 million | - Guidance reflects an estimated **$4 million** recognition of warrant expense in H2 2025, leading to a total non-cash net revenue and AEBITDA reduction of **$4-$6 million** for the full year[6](index=6&type=chunk) - Ranpak is positioned to weather the current environment due to operational diversity, global footprint, and value-added solutions, with cemented partnerships expected to drive strong future growth[6](index=6&type=chunk)[8](index=8&type=chunk) Second Quarter 2025 Financial Highlights This section details Ranpak's Q2 2025 financial performance, including revenue, net loss, AEBITDA, and the impact of warrants on overall results [Overall Performance](index=1&type=section&id=Overall%20Performance) Ranpak reported a **6.8%** year-over-year net revenue increase to **$92.3 million** in Q2 2025, despite a **$7.5 million** net loss and a **15.8%** decrease in Adjusted EBITDA Q2 2025 Key Financial Highlights (YoY Change) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | % Change | % Change (Constant Currency) | | :-------------------------------- | :----------------- | :----------------- | :------- | :--------------------------- | | Net Revenue | $92.3 | $86.4 | 6.8% | 3.8% | | Net (Loss) Income | ($7.5) | $5.5 | (236.4)% | (236.4)% | | Adjusted EBITDA (AEBITDA) | $16.5 | $19.6 | (15.8)% | (18.4)% | - Net revenue includes a **$1.2 million** non-cash reduction for warrants, impacting the reported growth[7](index=7&type=chunk)[10](index=10&type=chunk)[14](index=14&type=chunk) [Revenue Breakdown by Product Line](index=2&type=section&id=Revenue%20Breakdown%20by%20Product%20Line) Q2 2025 net revenue growth was primarily driven by increases in cushioning and void-fill product lines, alongside higher paper consumable sales volume and automated box sizing equipment sales Q2 2025 Net Revenue by Product Line (YoY Change) | Product Line | Q2 2025 (Millions) | Q2 2024 (Millions) | $ Change | % Change | | :----------- | :----------------- | :----------------- | :------- | :------- | | Cushioning | $36.8 | $35.0 | $1.8 | 5.1% | | Void-Fill | $41.1 | $37.7 | $3.4 | 9.0% | | Wrapping | $7.3 | $8.4 | ($1.1) | (13.1)% | | Other Net Revenue | $7.1 | $5.3 | $1.8 | 32.1% | - Net revenue increase was driven by a **5.2%** increase in paper consumable product sales volume, a **1.8%** increase in automated box sizing equipment sales, and a **3.0%** increase from foreign currency fluctuations[11](index=11&type=chunk) - Partially offset by a **1.9%** decrease in price or mix of paper consumable products and a **1.3%** decrease from the provision for common stock warrants[11](index=11&type=chunk) [Impact of Warrants](index=2&type=section&id=Impact%20of%20Warrants) Outstanding warrants resulted in a **$1.2 million** non-cash reduction in Q2 2025 net revenue, impacting gross profit, gross margin, AEBITDA, and AEBITDA margin Non-Cash Impact of Warrants on Q2 2025 Results (in millions) | Metric | 2025 | 2024 | % Change | % Change Related to Non-cash Impact of Warrants | | :----------- | :--- | :--- | :------- | :-------------------------------------------- | | Net revenue | $92.3 | $86.4 | 6.8% | (1.4)% | | Gross profit | $28.9 | $31.7 | (8.8)% | (3.8)% | | Gross margin | 31.3% | 36.7% | (5.4)% | (0.9)% | | AEBITDA | $16.5 | $19.6 | (15.8)% | (6.1)% | | AEBITDA Margin | 17.9% | 22.7% | (4.8)% | (1.1)% | - The non-cash reduction in revenue from warrants related to the agreement with Amazon was **$1.2 million** in Q2 2025[12](index=12&type=chunk) [Packaging Systems Installed Base](index=3&type=section&id=Packaging%20Systems%20Installed%20Base) Ranpak's total installed base of protective packaging systems grew **2.7%** year-over-year to approximately **145.0 thousand** machines as of June 30, 2025, primarily driven by Void-Fill systems Installed Base of Protective Packaging Systems (in thousands) | Product Line | June 30, 2025 | June 30, 2024 | Change | % Change | | :----------- | :------------ | :------------ | :----- | :------- | | Cushioning | 34.6 | 34.9 | (0.3) | (0.9)% | | Void-Fill | 87.9 | 83.9 | 4.0 | 4.8% | | Wrapping | 22.5 | 22.4 | 0.1 | 0.4% | | Total | 145.0 | 141.2 | 3.8 | 2.7% | [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) Ranpak maintained a strong liquidity position at Q2 2025 with **$49.2 million** cash and no revolving credit facility borrowings, alongside **$408.0 million** outstanding on its term facility Liquidity Position as of June 30, 2025 (in millions) | Metric | Amount | | :-------------------------------- | :----- | | Cash Balance | $49.2 | | Revolving Credit Facility Borrowings | $0.0 | | USD-denominated First Lien Term Facility Outstanding | $408.0 | - The **$50.0 million** revolving credit facility matures in December 2029, and the **$408.0 million** term facility matures in December 2031[13](index=13&type=chunk) Financial Statements This section presents Ranpak's condensed consolidated statements of operations, balance sheets, and cash flows for the periods ended June 30, 2025 [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Ranpak reported **$92.3 million** net revenue but a **$7.5 million** net loss, a significant shift from prior year net income, with a **$18.4 million** net loss for the six-month period Condensed Consolidated Statements of Operations (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenue | $92.3 | $86.4 | $183.5 | $171.7 | | Cost of product sales | $56.0 | $48.5 | $110.8 | $94.2 | | Cost of leased machines | $7.4 | $6.2 | $12.9 | $13.5 | | Gross profit | $28.9 | $31.7 | $59.8 | $64.0 | | Selling, general and administrative expenses | $28.8 | $27.3 | $57.7 | $55.2 | | Depreciation and amortization expense | $8.8 | $8.3 | $17.8 | $16.7 | | Loss from operations | ($9.7) | ($5.2) | ($17.7) | ($10.0) | | Interest expense | $8.3 | $5.3 | $17.0 | $11.5 | | Net (loss) income | ($7.5) | $5.5 | ($18.4) | ($2.6) | | Basic and diluted (loss) income per share | ($0.09) | $0.07 | ($0.22) | ($0.03) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1,138.0 million** and total liabilities to **$599.0 million**, while shareholders' equity slightly decreased to **$539.0 million** Condensed Consolidated Balance Sheets (in millions) | Asset/Liability/Equity | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $49.2 | $76.1 | | Total current assets | $151.9 | $151.2 | | Property, plant and equipment, net | $145.2 | $137.6 | | Goodwill | $457.0 | $443.7 | | Total assets | $1,138.0 | $1,104.2 | | **Liabilities:** | | | | Total current liabilities | $87.3 | $68.4 | | Long-term debt | $397.7 | $400.8 | | Total liabilities | $599.0 | $556.1 | | **Shareholders' Equity:** | | | | Total shareholders' equity | $539.0 | $548.1 | | Total liabilities and shareholders' equity | $1,138.0 | $1,104.2 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, net cash used in operating activities was **$4.9 million**, a significant decrease from prior year, primarily due to net loss and increased inventories, resulting in a **$26.9 million** decrease in cash Condensed Consolidated Statements of Cash Flows (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | ($4.9) | $24.8 | | Net cash used in investing activities | ($19.8) | ($19.1) | | Net cash used in financing activities | ($4.9) | ($1.6) | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | $2.7 | ($1.0) | | Net (Decrease) Increase in Cash and Cash Equivalents | ($26.9) | $3.1 | | Cash and Cash Equivalents, end of period | $49.2 | $65.1 | - Key adjustments to reconcile net loss to net cash from operating activities include depreciation and amortization (**$31.9 million**), stock-based compensation (**$4.1 million**), and provision for common stock warrants (**$2.0 million**)[27](index=27&type=chunk) - Changes in operating assets and liabilities show a **$15.0 million** increase in inventories and a **$4.0 million** increase in income tax receivable, contributing to the decrease in operating cash flow[27](index=27&type=chunk) Non-GAAP Financial Measures This section defines and reconciles Ranpak's non-GAAP financial measures, including EBITDA, Adjusted EBITDA (AEBITDA), and Constant Currency, to provide additional insights into operational performance [Definitions of Non-GAAP Measures](index=7&type=section&id=Definitions%20of%20Non-GAAP%20Measures) Ranpak uses non-GAAP measures like EBITDA, AEBITDA, and Constant Currency to offer additional insights into operating performance by adjusting for non-cash and non-recurring items - EBITDA is calculated as net income (loss) adjusted to exclude benefit from (provision for) income taxes, interest expense, and depreciation and amortization[29](index=29&type=chunk) - AEBITDA is calculated as net income (loss) adjusted to exclude income taxes, interest expense, depreciation and amortization, stock-based compensation, foreign currency (gain) loss, amortization of cloud-based software implementation costs, and other income/expense items[30](index=30&type=chunk) - Constant Currency change amounts are non-GAAP measures that calculate the year-over-year impact of foreign currency movements using prior period foreign currency rates applied to current year results, providing a clearer view of operational performance without currency volatility[31](index=31&type=chunk)[32](index=32&type=chunk) - Non-GAAP measures have limitations, including not reflecting cash capital expenditure requirements, changes in working capital, or the impact of tax payments, and may not be comparable to measures used by other companies[33](index=33&type=chunk) [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP net income (loss) to non-GAAP EBITDA and AEBITDA for the three and six months ended June 30, 2025 and 2024, highlighting various adjustments [Three Months Ended June 30, 2025 and 2024](index=8&type=section&id=Three%20Months%20Ended%20June%2030,%202025%20and%202024) This subsection reconciles GAAP net income (loss) to non-GAAP EBITDA and AEBITDA for Q2 2025 and 2024, detailing adjustments for non-recurring items Reconciliation of GAAP to Non-GAAP for Q2 2025 (in millions) | Metric | 2025 | 2024 | $ Change | % Change | Constant Currency (Non-GAAP) % Change | | :------------------------------------ | :--- | :--- | :------- | :------- | :------------------------------------ | | Net (loss) income | ($7.5) | $5.5 | ($13.0) | (236.4) | (236.4) | | EBITDA | $15.6 | $29.3 | ($13.7) | (46.8) | (48.8) | | Adjustments (total) | $0.9 | ($9.7) | $10.6 | NM | NM | | AEBITDA | $16.5 | $19.6 | ($3.1) | (15.8) | (18.4) | - Significant adjustments for Q2 2025 include M&A, restructuring, severance (**$3.6 million**), stock-based compensation (**$2.0 million**), and unrealized gain on strategic investments ((**$5.8 million**))[34](index=34&type=chunk) - Q2 2024 adjustments included a gain on sale of patents ((**$5.4 million**)) and patent litigation settlement ((**$16.1 million**))[34](index=34&type=chunk) [Six Months Ended June 30, 2025 and 2024](index=9&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20and%202024) This subsection reconciles GAAP net loss to non-GAAP EBITDA and AEBITDA for H1 2025 and 2024, detailing adjustments for non-recurring items Reconciliation of GAAP to Non-GAAP for H1 2025 (in millions) | Metric | 2025 | 2024 | $ Change | % Change | Constant Currency (Non-GAAP) % Change | | :------------------------------------ | :--- | :--- | :------- | :------- | :------------------------------------ | | Net loss | ($18.4) | ($2.6) | ($15.8) | (607.7) | (611.5) | | EBITDA | $25.3 | $44.7 | ($19.4) | (43.4) | (44.3) | | Adjustments (total) | $8.5 | ($5.9) | $14.4 | NM | NM | | AEBITDA | $33.8 | $38.8 | ($5.0) | (12.9) | (13.4) | - Significant adjustments for H1 2025 include M&A, restructuring, severance (**$6.5 million**), stock-based compensation (**$4.1 million**), and unrealized gain on strategic investments ((**$5.8 million**))[35](index=35&type=chunk) - H1 2024 adjustments included a gain on sale of patents ((**$5.4 million**)) and patent litigation settlement ((**$16.1 million**))[35](index=35&type=chunk) Additional Information This section provides details on the Q2 2025 conference call and a cautionary notice regarding forward-looking statements and associated risks [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Ranpak hosted a conference call and webcast on August 5, 2025, to discuss Q2 2025 financial results, with a telephonic replay available - Conference call and webcast held on Tuesday, August 5, 2025, at 8:30 a.m. (ET)[16](index=16&type=chunk) - Webcast link: https://events.q4inc.com/attendee/183436170; Conference ID: 8369975[16](index=16&type=chunk) - Telephonic replay available from August 5 to August 12, 2025, using passcode: 8369975[17](index=17&type=chunk) [Cautionary Notice Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Notice%20Regarding%20Forward-Looking%20Statements) This notice highlights that forward-looking statements are subject to risks like supply chain issues, market competition, and economic conditions, which could cause actual results to differ materially - Forward-looking statements are based on current expectations and beliefs, but actual results may differ materially due to various risks and uncertainties[18](index=18&type=chunk)[19](index=19&type=chunk) - Risks include inability to secure paper supply, rising input prices (labor, energy, freight), geopolitical conflicts, high competition, consumer sensitivity, macroeconomic uncertainty, loss of customers, and failure to develop new products[19](index=19&type=chunk) - The company does not undertake any obligation to update or revise forward-looking statements, and past trends are not a guarantee of future activities[20](index=20&type=chunk)[21](index=21&type=chunk)