Ranpak Holdings Corp. 10-Q Summary: Q1 2026
Business Context and Reporting Period
This filing covers the quarterly period ended March 31, 2026. Ranpak Holdings Corp. is a provider of environmentally sustainable, systems-based product protection and end-of-line automation solutions for e-commerce and industrial supply chains. The company operates manufacturing facilities in the United States, Europe, and Asia, organized into two reportable segments: North America and Europe/Asia.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Revenue | $101.2 million | $91.2 million |
| Gross Profit | $34.9 million | $30.9 million |
| Gross Margin | 34.5% | 33.9% |
| Net Loss | $(10.2) million | $(10.9) million |
| Loss Per Share (Diluted) | $(0.12) | $(0.13) |
| EBITDA (Non-GAAP) | $11.7 million | $9.7 million |
| Adjusted EBITDA (Non-GAAP) | $18.9 million | $17.3 million |
| Cash and Equivalents | $48.5 million | $65.5 million (end of period) |
| Total Debt | $403.1 million | $401.9 million |
| Operating Cash Flow | $4.4 million | $(1.3) million |
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased 11.0% year-over-year, driven primarily by a 112.7% surge in automation equipment sales ($13.4 million vs. $6.3 million). On a constant currency basis, revenue grew 4.5%.
- Segment Performance: Europe/Asia revenue grew 20.8% to $58.7 million, while North America revenue remained flat at $42.5 million. Europe/Asia growth was aided by favorable foreign currency fluctuations and increased automation sales.
- Profitability: The net loss narrowed by $0.7 million. Operating loss improved from $(8.0) million to $(3.8) million due to higher gross profit and reduced other operating expenses.
- Cash Flow: Operating cash flow turned positive ($4.4 million) compared to a use of cash in the prior year, largely due to a lower net loss and working capital management. However, investing cash outflows increased significantly to $18.3 million, including a $10.0 million strategic investment in Pickle Robot Co.
- Foreign Currency: The company recorded a $1.3 million foreign currency loss in Q1 2026, compared to a $2.6 million gain in Q1 2025, due to Euro volatility.
Outlook, Risks, and Management Commentary
- Guidance: The filing does not provide specific numerical guidance for the full year 2026. Management notes that Q1 is typically the slowest quarter due to seasonality, with higher revenue expected in Q4.
- Cost Pressures: Management anticipates continued pressure on gross margins due to inflationary pressures on paper, labor, energy, and freight costs. They are evaluating alternative suppliers and refurbishing existing machines to mitigate tariff impacts on capital equipment.
- Strategic Investments: The company invested $10.0 million in Pickle Robot Co. via a SAFE note in February 2026, aligning with its strategy to integrate robotics solutions.
- Liquidity: The company maintains $48.5 million in cash and $44.2 million in available revolver capacity. It is in compliance with all debt covenants.
- Risks: Key risks include supply chain disruptions (paper availability), rising input costs, geopolitical conflicts affecting energy prices, and the inability to pass cost increases to customers.
Investor Verification Checklist
- Automation Sales Sustainability: Verify if the 112% increase in automation revenue is a one-time spike or indicative of a sustained trend in capital equipment demand.
- Margin Compression: Monitor the ability to offset rising paper and energy costs with price increases, as management explicitly warns of medium-term margin pressure.
- Strategic Investment Returns: Track the performance and valuation of the $10.0 million investment in Pickle Robot Co. and the existing investment in Creapaper.
- Currency Hedging Effectiveness: Assess the impact of continued Euro volatility on the Europe/Asia segment, which generated 58% of total revenue.
- Debt Servicing: Confirm the company's ability to service its ~$403 million debt load given the current interest rate environment and operating cash flow generation.