Ranpak Holdings Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for the third quarter increased 2.3% year over year to $101.9 million, or 3.4% on a constant currency basis.
• Net loss for the third quarter was $7.2 million, compared to a net loss of $10.4 million in the prior year period.
• Adjusted EBITDA (AEBITDA) for the third quarter was $22.5 million, an increase of 5.1% year over year, or 6.1% on a constant currency basis.
• Gross margin improved to 35.6% in the third quarter, an increase of 110 basis points versus the prior year and 280 basis points sequentially from the second quarter.
• Year-to-date net revenue increased 8.9% year over year to $308.3 million, or 6.6% on a constant currency basis.
• Year-to-date net loss was $25.3 million, compared to $28.8 million in the prior year period.
• Year-to-date AEBITDA increased 9.6% to $60.5 million, or 6.0% on a constant currency basis.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $24.8 million, compared to $3.6 million in the prior year period.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $35.2 million, compared to $27.6 million in the prior year period.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $1.8 million, compared to net cash used of $5.3 million in the prior year period.

Guidance and Future Outlook:

• Management expects to achieve prior guidance for the full year 2026 despite increased volatility since the end of the second quarter.
• The Automation segment is on track to achieve approximately $60 million in revenue for the full year.
• Management expects to return to growth in the Europe/Asia region in the fourth quarter following lower volumes in the third quarter.
• The company aims to scale the Automation segment to a level that enables it to effectively absorb overhead and become profitable going forward.

Business Segments and Product Lines:

• Automation net revenue increased 22.7% year over year to $14.6 million, with constant currency growth of 26.9% excluding warrants.
• Automation year-to-date revenue increased 79.4% on a constant currency basis excluding warrants.
• Wrapping revenue increased 8.2% year over year to $9.2 million.
• Cushioning revenue increased 0.3% year over year to $35.9 million.
• Void-fill revenue decreased 2.8% year over year to $42.2 million.
• PPS system placements decreased 1.9% year over year to approximately 142.8 thousand machines as of September 30, 2026.
• North America distribution channel volumes grew 1.8% year over year.
• Europe/Asia volumes decreased 4.9% year over year due to channel destocking and a cautious environment.
• Price or mix of paper consumable products increased 3.5% year over year.
• Volume of paper consumable product sales decreased 2.5% year over year.

Market and Competitive Landscape:

• The company operates in a dynamic environment characterized by rising energy prices and macroeconomic uncertainty.
• Management notes a high degree of competition and continued consolidation in the markets in which the company operates.
• The company differentiates itself through diversification into Automation solutions.

Risks and Challenges:

• Risks include the inability to secure sufficient paper supply, rising prices for production inputs (labor, energy, freight), and the price of kraft paper.
• Geopolitical conflicts, social unrest, and potential tariffs on imports pose risks.
• Consumer sensitivity to price increases and changes in preferences regarding paper products are potential challenges.
• Risks include the failure to develop new products that meet sales or margin expectations or achieve market acceptance.
• Future operating results may fluctuate or fail to match performance expectations.

Management Commentary and Tone:

• Chairman and CEO Omar Asali expressed pleasure at growing top-line revenue and AEBITDA, attributing success to Automation diversification.
• Management stated they remain disciplined on cost and focused on delivering top-line growth while strengthening the margin profile.
• Management expressed confidence in executing on controllable factors and achieving prior full-year guidance.

Other Key Points:

• The company completed the third quarter with a cash balance of $53.4 million.
• There were no borrowings on the $50.0 million revolving credit facility, which matures in December 2029.
• Outstanding letters of credit totaled $2.9 million, leaving net availability of $47.1 million under the revolving credit facility.
• The company had $402.8 million outstanding under its U.S. dollar-denominated first lien term facility, maturing in December 2031.
• A non-cash provision for warrants reduced third-quarter net revenue by $1.2 million and AEBITDA by $1.2 million.
• Year-to-date, the non-cash provision for warrants reduced net revenue by $4.6 million and AEBITDA by $4.6 million.
• The company hosted a conference call and webcast on October 29, 2026.