Ranpak Holdings Corp.

Previous wording

As of March 31, 2025, we had an installed base of approximately 143.8 thousand PPS systems serving a diverse set of distributors and end-users. We generated net revenue of $91.2 million and $85.3 million in the three months ended March 31, 2025 and 2024, respectively.

Current wording

As of June 30, 2025, we had an installed base of approximately 145.0 thousand PPS systems serving a diverse set of distributors and end-users. We generated net revenue of $183.5 million and $171.7 million in the six months ended June 30, 2025 and 2024, respectively.

Previous wording

In addition, we are subject to currency translation exposure because the operations of our subsidiaries are measured in their functional currency, which is the currency of the primary economic environment in which the subsidiary operates. Any currency balances that are denominated in currencies other than the functional currency of the subsidiary are re-measured into the functional currency, with the resulting gain or loss recorded in the foreign currency (gains) losses line-item in our Unaudited Condensed Consolidated Statements of Operations. In turn, subsidiary income statement balances that are denominated in currencies other than USD are translated into USD, our reporting currency, in consolidation using the average exchange rate in effect during each fiscal month during the period, with any related gain or loss recorded as foreign currency translation adjustments in other comprehensive income (loss). The assets and liabilities of subsidiaries that use functional currencies other than the USD are translated into USD in consolidation using period end exchange rates, with the effects of foreign currency translation adjustments included in accumulated other comprehensive income (loss).

Current wording

In addition, we are subject to currency translation exposure because the operations of our subsidiaries are measured in their functional currency, which is the currency of the primary economic environment in which the subsidiary operates. Any currency balances that are denominated in currencies other than the functional currency of the subsidiary are re-measured into the functional currency, with the resulting gain or loss recorded in the foreign currency (gains) losses line-item in our Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). In turn, subsidiary income statement balances that are denominated in currencies other than USD are translated into USD, our reporting currency, in consolidation using the average exchange rate in effect during each fiscal month during the period, with any related gain or loss recorded as foreign currency translation adjustments in other comprehensive income (loss). The assets and liabilities of subsidiaries that use functional currencies other than the USD are translated into USD in consolidation using period end exchange rates, with the effects of foreign currency translation adjustments included in accumulated other comprehensive income (loss).

Previous wording

EBITDA is a non-GAAP financial measure that we calculate as net loss, adjusted to exclude: benefit from (provision for) income taxes; interest expense; and depreciation and amortization.

Current wording

EBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to exclude: benefit from (provision for) income taxes; interest expense; and depreciation and amortization.

Previous wording

AEBITDA is a non-GAAP financial measure that we calculate as net loss, adjusted to exclude: benefit from (provision for) income taxes; interest expense; depreciation and amortization; stock-based compensation expense; foreign currency (gain) loss; amortization of cloud-based software implementation costs; and, in certain periods, other income and expense items.

Current wording

AEBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to exclude: benefit from (provision for) income taxes; interest expense; depreciation and amortization; stock-based compensation expense; foreign currency (gain) loss; amortization of cloud-based software implementation costs; and, in certain periods, other income and expense items.

Previous wording

Non-GAAP measures, such as EBITDA, AEBITDA, and constant currency change, have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. In particular, non-GAAP financial measures should not be viewed as substitutes for, or superior to, net loss prepared in accordance with U.S. GAAP as a measure of profitability or liquidity. Some of these limitations are:

Current wording

Non-GAAP measures, such as EBITDA, AEBITDA, and constant currency change, have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. In particular, non-GAAP financial measures should not be viewed as substitutes for, or superior to, net income (loss) prepared in accordance with U.S. GAAP as a measure of profitability or liquidity. Some of these limitations are:

Previous wording

The following tables set forth our consolidated results of operations for the three months ended March 31, 2025 and 2024, presented in millions of dollars.

Current wording

The following tables set forth our consolidated results of operations for the three months ended June 30, 2025 and 2024, presented in millions of dollars. “NM” represents “not meaningful.”

Previous wording

In addition, in our discussion below, we include certain other unaudited, non-GAAP data and Constant Currency (Non-GAAP) % Change data for the three months ended March 31, 2025 and 2024. This data is based on our historical financial statements included elsewhere in this Quarterly Report. Refer to “Non-GAAP Measures” and “Reconciliation of U.S. GAAP to Non-GAAP Measures” for additional information and a reconciliation of EBITDA and AEBITDA to our net loss under U.S. GAAP.

Current wording

In addition, in our discussion below, we include certain other unaudited, non-GAAP data and Constant Currency (Non-GAAP) % Change data for the three months ended June 30, 2025 and 2024. This data is based on our historical financial statements included elsewhere in this Quarterly Report. Refer to “Non-GAAP Measures” and “Reconciliation of U.S. GAAP to Non-GAAP Measures” for additional information and a reconciliation of EBITDA and AEBITDA to our net income (loss) under U.S. GAAP.

Previous wording

Net revenue for the first quarter of 2025 was $91.2 million compared to $85.3 million in the first quarter of 2024, an increase of $5.9 million year over year or 6.9% (8.8% on a constant currency basis) and includes a reduction of $0.8 million in void-fill for the provision for common stock warrants. Net revenue was positively impacted by increases in void-fill and wrapping, partially offset by a decrease in cushioning. Cushioning decreased $7.2 million, or 19.3%, to $30.1 million from $37.3 million; void-fill increased $11.0 million, or 33.2%, to $44.1 million from $33.1 million; wrapping increased $2.1 million, or 24.4%, to $10.7 million from $8.6 million; and other net revenue remained flat at $6.3 million for the first quarter of 2025 compared to the first quarter of 2024. Other net revenue includes automated box sizing equipment and non-paper revenue from packaging systems installed in the field, such as systems accessories.

Current wording

Net revenue for the second quarter of 2025 was $92.3 million compared to $86.4 million for the second quarter of 2024, an increase of $5.9 million or 6.8% (3.8% on a constant currency basis) and includes a reduction of $1.2 million to void-fill net revenue for the provision for common stock warrants. Net revenue was positively impacted by increases in cushioning, void-fill, and other net revenue, partially offset by a decrease in wrapping. Cushioning increased $1.8 million, or 5.1%, to $36.8 million from $35.0 million; void-fill increased $3.4 million, or 9.0%, to $41.1 million from $37.7 million; wrapping decreased $1.1 million, or 13.1%, to $7.3 million from $8.4 million; and other net revenue increased $1.8 million, or 34.0% to $7.1 million from $5.3 million for the second quarter of 2025 compared to the second quarter of 2024. Other net revenue includes automated box sizing equipment and non-paper revenue from packaging systems installed in the field, such as systems accessories.

Previous wording

The increase in net revenue for the first quarter of 2025 compared to the first quarter of 2024 is quantified by an increase in the volume of sales of our paper consumable products of approximately 12.0%, partially offset by a 2.4% decrease in the price or mix of our paper consumable products, a 0.9% decrease from the provision for common stock warrants, and a 1.8% decrease from foreign currency fluctuations.

Current wording

The increase in net revenue for the second quarter of 2025 compared to the second quarter of 2024 is quantified by an increase in the volume of sales of our paper consumable products of approximately 5.2%, a 1.8% increase in the sales of automated box sizing equipment, and a 3.0% increase from foreign currency fluctuations, partially offset by a 1.9% decrease in the price or mix of our paper consumable products and a 1.3% decrease from the provision for common stock warrants.

Previous wording

Cost of sales for the first quarter of 2025 totaled $60.3 million, an increase of $7.3 million, or 13.8% (15.7% at constant currency), compared to $53.0 million in the first quarter of 2024. We have quantified the change in cost of sales as follows:

Current wording

Cost of sales for the second quarter of 2025 totaled $63.4 million, an increase of $8.7 million, or 15.9% (13.0% at constant currency), compared to $54.7 million in the second quarter of 2024. We have quantified the change in cost of sales as follows:

Previous wording

Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the first quarter of 2025 were $28.9 million, an increase of $1.0 million, or 3.6%, from $27.9 million in the first quarter of 2024. The change in SG&A was primarily due to increases in stock-based compensation expense and information technology maintenance costs of $0.8 million and $0.8 million, respectively, partially offset by a decrease in professional fees of $0.5 million compared to the first quarter of 2024.

Current wording

Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the second quarter of 2025 were $28.8 million, an increase of $1.5 million, or 5.5%, from $27.3 million in the second quarter of 2024. The change in SG&A was primarily due to increases in compensation costs of $1.4 million and information technology maintenance costs of $0.7 million, partially offset by a decrease in temporary labor costs of $0.5 million compared to the second quarter of 2024.

Previous wording

Depreciation and Amortization. Depreciation and amortization expense for the first quarter of 2025 was $9.0 million, an increase of $0.6 million, or 7.1%, from $8.4 million in the first quarter of 2024. The increase in depreciation and amortization expense was due to an increase in depreciation expense from our building improvements and internal-use software.

Current wording

Depreciation and Amortization Expense. Depreciation and amortization expense for the second quarter of 2025 was $8.8 million, an increase of $0.5 million, or 6.0%, from $8.3 million in the second quarter of 2024. The increase in depreciation and amortization expense was primarily due to an increase in amortization of internal-use software of $0.5 million for the second quarter of 2025 compared to the second quarter of 2024.

Previous wording

Other Operating Expense, Net. Other operating expense, net for the first quarter of 2025 was $1.0 million, an increase of $0.2 million from $0.8 million in the first quarter of 2024. The increase was due to increased research and development expense of $0.6 million, partially offset by a decrease of $0.4 million on losses from disposal of property, plant, and equipment for the first quarter of 2025 compared to the first quarter of 2024.

Current wording

Other Operating Expense, Net. Other operating expense, net for the second quarter of 2025 was $1.0 million, a decrease of $0.3 million from $1.3 million in the second quarter of 2024. The decrease was due to decreased research and development expense of $0.3 million for the second quarter of 2025 compared to the second quarter of 2024.

Previous wording

Interest expense for the first quarter of 2025 was $8.7 million, an increase of $2.5 million, or 40.3%, from $6.2 million in the first quarter of 2024. The increase was primarily due to a decrease in interest income of $3.0 million from the effects of our swap agreements during the first quarter of 2025 compared to the first quarter of 2024, partially offset by a $0.4 million decrease in amortization of deferred financing costs.

Current wording

Interest expense for the second quarter of 2025 was $8.3 million, an increase of $3.0 million, or 56.6%, from $5.3 million in the second quarter of 2024. The increase was primarily due to a decrease in interest income of $3.5 million from the effects of our swap agreements during the second quarter of 2025 compared to the second quarter of 2024, partially offset by a $0.4 million decrease in amortization of deferred financing costs.

Previous wording

Foreign currency gain for the first quarter of 2025 was $2.6 million, a decrease of $1.2 million, from foreign currency gain of $1.4 million in the first quarter of 2024 due to the volatility in Euro exchange rates compared to USD.

Current wording

Foreign currency gain for the second quarter of 2025 was $2.6 million, a change of $2.7 million, from foreign currency loss of $0.1 million in the second quarter of 2024 due to the volatility in Euro exchange rates compared to USD.

Previous wording

Income tax benefit for the first quarter of 2025 was $3.2 million, or an effective tax rate of 22.6%. Income tax benefit was $1.5 million in the first quarter of 2024, or an effective tax rate of 15.8%. The fluctuation in the effective tax rate between periods and the difference between the effective tax rate for the first quarter of 2025 and the combined federal and state statutory rates is primarily attributable to the impact of stock-based compensation.

Current wording

Income tax benefit for the second quarter of 2025 was $2.0 million, or an effective tax rate of 21.5%. Income tax expense was $1.8 million in the second quarter of 2024, or an effective tax rate of 24.8%. The fluctuation in the effective tax rate between periods is primarily attributable to the impact of stock-based compensation, and the difference between the effective tax rate for the second quarter of 2025 and the combined federal and state statutory rates is primarily due to state income taxes.

Previous wording

EBITDA and AEBITDA are Non-GAAP measures. Refer to the section “Reconciliation of U.S. GAAP to Non-GAAP Measures.” EBITDA for the first quarter of 2025 was $9.7 million, a decrease of $5.7 million, or 37.0%, compared to $15.4 million in the first quarter of 2024. AEBITDA for the first quarter of 2025 was $17.3 million, a decrease of $1.9 million, or 9.9% (7.8% on a constant currency basis), compared to $19.2 million in the first quarter of 2024. AEBITDA for the first quarter of 2025 includes a reduction of revenue from the provision for warrants of $0.8 million.

Current wording

EBITDA and AEBITDA are non-GAAP measures. Refer to the section “Reconciliation of U.S. GAAP to Non-GAAP Measures.” EBITDA for the second quarter of 2025 was $15.6 million, a decrease of $13.7 million, or 46.8%, compared to $29.3 million in the second quarter of 2024. AEBITDA for the second quarter of 2025 was $16.5 million, a decrease of $3.1 million, or 15.8% (18.4% on a constant currency basis), compared to $19.6 million in the second quarter of 2024. AEBITDA for the second quarter of 2025 includes a reduction to net revenue from the provision for warrants of $1.2 million.

Previous wording

We have two segments, North America and Europe/Asia. Management evaluates segment performance by net revenue and EBITDA by geographic region. The following tables set forth our net revenue by segment for the first quarter of 2025 and the first quarter of 2024, presented in millions of dollars:

Current wording

We have two segments, North America and Europe/Asia. Management evaluates segment performance by net revenue and EBITDA by geographic region. The following tables set forth our net revenue by segment for the second quarter of 2025 and the second quarter of 2024, presented in millions of dollars:

Previous wording

Net revenue in North America for the first quarter of 2025 totaled $42.6 million compared to net revenue in North America of $31.9 million in the first quarter of 2024. The increase of $10.7 million, or 33.5%, was attributable to increased void-fill sales of $10.4 million, or 66.2%, an increase in wrapping sales of $1.8 million, and an increase in other net revenue of $1.0 million, or 90.9%, partially offset by a decrease in cushioning sales of $2.5 million. The increase in void-fill was partially offset by a reduction of $0.8 million for the provision for warrants. The change in net revenue for North America can be quantified by an increase in volume of 45.1% and a 3.3% increase from sales of automated box sizing equipment, partially offset by a 12.5% decrease in the price/mix of our paper consumable products and a decrease of 2.4% for the provision for warrants.

Current wording

Net revenue in North America for the second quarter of 2025 totaled $42.3 million compared to $37.7 million in the second quarter of 2024. The increase of $4.6 million, or 12.2%, for the second quarter of 2025 compared to the second quarter of 2024 was attributable to an increase in cushioning sales of $0.9 million, or 8.7%, an increase in void-fill sales of $2.5 million, or 11.0%, and an increase in other net revenue of $1.5 million, partially offset by a decrease in wrapping sales of $0.3 million, or 6.8%, and a reduction of $1.1 million in void-fill net revenue from the provision for warrants. The change in net revenue for North America can be quantified by an increase in volume of 14.8% and a 3.9% increase from sales of automated box sizing equipment, partially offset by a 3.7% decrease in the price/mix of our paper consumable products and a decrease of 2.8% from the provision for warrants.

Previous wording

North America and Europe/Asia segment EBITDA includes intersegment royalty charges from North America to Europe/Asia for use of trademarks of $5.2 million and $3.6 million for the three months ended March 31, 2025 and 2024, respectively, which eliminates on a consolidated basis.

Current wording

North America and Europe/Asia segment EBITDA includes intersegment royalty charges from North America to Europe/Asia for use of trademarks of $7.6 million and $3.3 million for the three months ended June 30, 2025 and 2024, respectively, which eliminates on a consolidated basis.

Previous wording

The increase in cost of sales was primarily due to an increase in the volume of products sold and increased production costs, partially offset by a decrease in depreciation expense due to an increase in fully depreciated assets compared to the first quarter of 2024 and a decrease from fluctuations in foreign currency rates. Production costs include costs from materials and labor and overhead.

Current wording

The increase in cost of sales was primarily due to an increase in the volume of products sold of 7.6%, an increase in production costs of 11.7%, partially offset by a 4.4% decrease in depreciation expense due to an increase in fully depreciated assets compared to the six months ended June 30, 2024. Production costs include costs from materials and labor and overhead.

Previous wording

Net revenue in Europe/Asia for the first quarter of 2025 totaled $48.6 million compared to net revenue of $53.4 million in the first quarter of 2024. The decrease of 4.8 million, or 9.0% (6.0% on a constant currency basis), was attributable to a decrease in cushioning sales of $4.7 million, or 17.7%, and a decrease in other net revenue of $1.0 million, or 19.2%, partially offset by an increase in void-fill sales of $0.6 million, or 3.4% and an increase in wrapping sales of $0.3 million, or 7.1%. The change in net revenue for Europe/Asia can be quantified by a decrease in volume of 0.8%, a 3.3% decrease in the price/mix of our paper consumable products, an 1.9% decrease from the sales of automated box sizing equipment, and a 2.9% decrease due to foreign currency fluctuations.

Current wording

Net revenue in Europe/Asia for the six months ended June 30, 2025 totaled $98.6 million compared to net revenue of $102.1 million in the six months ended June 30, 2024. The decrease of $3.5 million, or 3.4% (4.4% on a constant currency basis), was attributable to a decrease in cushioning sales of $1.0 million, or 2.0%, a decrease in void-fill sales of $0.6 million, or 1.9% and a decrease in wrapping sales of $1.2 million, or 14.6%, and a decrease in other net revenue of $0.7 million, or 6.8%. The change in net revenue for Europe/Asia can be quantified by a decrease in volume of 0.4%, a 3.0% decrease in the price/mix of our paper consumable products, a 0.9% decrease from the sales of automated box sizing equipment, and a decrease of 0.1% from the provision for warrants, partially offset by a 1.0% increase due to foreign currency fluctuations.

Previous wording

The following tables and related notes reconcile certain non-GAAP measures, including the non-GAAP constant currency measures, to GAAP information presented in this Quarterly Report for the three months ended March 31, 2025 and 2024:

Current wording

The following tables and related notes reconcile certain non-GAAP measures, including the non-GAAP constant currency measures, to GAAP information presented in this Quarterly Report for the three and six months ended June 30, 2025 and 2024:

Previous wording

(6)The Constant Currency (Non-GAAP) % Change excludes the impact of foreign currency translation effects when comparing to the prior year. In calculating the Constant Currency (Non-GAAP) % Change, the current year results are translated at the average exchange rate for the prior year period, which in this case was 1 Euro to 1.0863 USD. Refer to further discussion in “Non-GAAP Measures.”

Current wording

(6)The Constant Currency (Non-GAAP) % Change excludes the impact of foreign currency translation effects when comparing to the prior year. In calculating the Constant Currency (Non-GAAP) % Change, the current year results are translated at the average exchange rate for the prior year period, which in this case was 1 Euro to 1.0768 USD. Refer to further discussion in “Non-GAAP Measures.”

Previous wording

(5)In 2025, Other adjustments includes non-recurring warehouse and transitory costs incurred related to conversion services, non-recurring excess above market procurement costs, and other insignificant items. In the first quarter of 2024, Other adjustments represents primarily legal expenses and fees related to the Company’s patent litigation which was settled in the second quarter of 2024.

Current wording

(5)In the six months ended June 30, 2025, Other adjustments includes non-recurring warehouse and transitory costs incurred related to conversion services, non-recurring excess above market procurement costs, and other insignificant items. In the six months ended June 30, 2024, Other adjustments represents primarily non-recurring costs incurred from the outsourcing of paper conversion services, legal expenses and fees related to the Company’s patent litigation which was settled in the second quarter of 2024, and other insignificant items.

Previous wording

We evaluate liquidity in terms of cash flows from operations and other sources and the sufficiency of such cash flows to fund our operating, investing and financing activities. We believe that our $65.5 million in cash and cash equivalents as of March 31, 2025 and cash flows from operations, together with borrowing capacity under the revolving portion of our senior secured credit facilities, will provide us with sufficient resources to cover our current requirements.

Current wording

We evaluate liquidity in terms of cash flows from operations and other sources and the sufficiency of such cash flows to fund our operating, investing and financing activities. We believe that our $49.2 million in cash and cash equivalents as of June 30, 2025 and cash flows from operations, together with borrowing capacity under the revolving portion of our senior secured credit facilities, will provide us with sufficient resources to cover our current requirements.

Previous wording

Including finance lease liabilities and equipment financing and excluding deferred financing costs, we had $414.3 million in debt, $5.7 million of which was classified as short-term, as of March 31, 2025, compared to $415.7 million in debt, $5.6 million of which was classified as short-term, as of December 31, 2024. At March 31, 2025, we did not have amounts outstanding under our $50.0 million revolving credit facility, and we had no borrowings under such facility through May 6, 2025. No mandatory prepayments were required under our Facilities and the Company was in compliance with all debt covenants as of March 31, 2025.

Current wording

Including finance lease liabilities and equipment financing and excluding deferred financing costs, we had $412.3 million in debt, $5.4 million of which was classified as short-term, as of June 30, 2025, compared to $415.7 million in debt, $5.6 million of which was classified as short-term, as of December 31, 2024. At June 30, 2025, we did not have amounts outstanding under our $50.0 million revolving credit facility, and we had no borrowings under such facility through August 5, 2025. No mandatory prepayments were required under our Facilities and the Company was in compliance with all debt covenants as of June 30, 2025.

Previous wording

The material terms of the Facilities are summarized in Note 7 — Long-Term Debtto the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report and under the heading “Liquidity and Capital Resources — Debt Profile” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the 2024 10-K. The Term Facility matures in December 2031 and the Revolving Facility matures in December 2029. Borrowings under the Facilities, at our option, bear interest at either (1) the secured overnight financing rate (“SOFR”) plus 4.50% or (2) the base rate plus 3.50%, in each case assuming a First Lien Leverage Ratio, as defined in the 2024 Credit Agreement, of greater than 3.60:1.00, and subject to a leverage-based step-down to 4.25% for SOFR borrowings and 3.25% for base rate borrowings, respectively. The interest rate for the Term Facility as of March 31, 2025 and December 31, 2024, was 8.85%.

Current wording

The material terms of the Facilities are summarized in Note 7 — Long-Term Debtto the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report and under the heading “Liquidity and Capital Resources — Debt Profile” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the 2024 10-K. The Term Facility matures in December 2031 and the Revolving Facility matures in December 2029. Borrowings under the Facilities, at our option, bear interest at either (1) the secured overnight financing rate (“SOFR”) plus 4.50% or (2) the base rate plus 3.50%, in each case assuming a First Lien Leverage Ratio, as defined in the 2024 Credit Agreement, of greater than 3.60:1.00, and subject to a leverage-based step-down to 4.25% for SOFR borrowings and 3.25% for base rate borrowings, respectively. The interest rate for the Term Facility as of June 30, 2025 and December 31, 2024, was 8.80% and 8.85%, respectively.

Previous wording

The Revolving Facility includes borrowing capacity available for standby letters of credit of up to $50.0 million. Any issuance of letters of credit will reduce the amount available under the Revolving Facility. As of March 31, 2025, we had $1.7 million committed to outstanding letters of credit, leaving net availability under the Revolving Facility at $48.3 million.

Current wording

The Revolving Facility includes borrowing capacity available for standby letters of credit of up to $50.0 million. Any issuance of letters of credit will reduce the amount available under the Revolving Facility. As of June 30, 2025, we had $3.5 million committed to outstanding letters of credit, leaving net availability of $46.5 million under the Revolving Facility.

Previous wording

Net cash used in operating activities was $1.3 million in the three months ended March 31, 2025. Cash provided by operating activities was $5.2 million in the three months ended March 31, 2024. The changes in operating cash flows are largely due to the increased net loss and decreased non-cash adjustments for depreciation expense for the current period compared with prior year and the increase in inventory, partially offset by an increase in accounts payable and a decrease in accounts receivable as of March 31, 2025.

Current wording

Net cash used in operating activities was $4.9 million in the six months ended June 30, 2025. Cash provided by operating activities was $24.8 million in the six months ended June 30, 2024. The changes in operating cash flows are largely due to the increased net loss, primarily due to the non-recurring patent litigation settlement of $16.1 million in the second quarter of 2024. Non-cash adjustments decreased $13.5 million due primarily to the changes in unrealized (gain) loss on strategic investments, deferred income taxes, and foreign currency gain for the current period compared with prior year. Working capital adjustments also decreased, primarily due to inventory builds as of the second quarter of 2025 and timing of payments on accounts payable and collections on accounts receivable as of June 30, 2025.

Previous wording

Net cash used in investing activities was $7.5 million and $10.3 million in the three months ended March 31, 2025 and 2024, respectively, and reflects cash used for production of converter equipment and purchases of machinery and equipment. Net cash used in investing activities in the three months ended March 31, 2024 also includes an additional investment in Pickle.

Current wording

Net cash used in investing activities was $19.8 million and $19.1 million in the six months ended June 30, 2025 and 2024, respectively, and reflects cash used for production of converter equipment, purchases of machinery and equipment and cash paid for investments in Pickle. Net cash used in investing activities in the six ended June 30, 2024 also included $5.4 million in proceeds from sale of patents.

Previous wording

Net cash used in financing activities was $2.8 million and $1.3 million in the three months ended March 31, 2025 and 2024, respectively, and reflects principal payments on debt, payments on finance lease liabilities, tax payments for withholdings on stock compensation, and payments on our equipment financing arrangement.

Current wording

Net cash used in financing activities was $4.9 million and $1.6 million in the six months ended June 30, 2025 and 2024, respectively, and reflects principal payments on our term loans, payments on finance lease liabilities, tax payments for withholdings on stock compensation, and payments on our equipment financing arrangement, partially offset by proceeds from our hedging instruments.