Ranpak (PACK) Q2 Revenue Rises 7%

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]