Ranpak Holdings Corp.

Previous 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.

Current wording

As of September 30, 2025, we had an installed base of approximately 145.6 thousand PPS systems serving a diverse set of distributors and end-users. We generated net revenue of $283.1 million and $263.9 million in the nine months ended September 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 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).

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 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

Seasonality. Approximately 37% of our net revenue in 2024, either directly or to distributors, was destined for end-users in the e-commerce sectors, whose businesses frequently follow traditional retail seasonal trends, including a concentration of sales in the holiday period in the fourth quarter. Our results tend to follow similar patterns, with the highest net revenue typically recorded in our fourth fiscal quarter and the slowest sales in our first fiscal quarter of each fiscal year. We expect this seasonality to continue in the future and, as a result, our results of operations between fiscal quarters in a given year may not be directly comparable.

Current wording

Seasonality. We estimate that over a third of our net revenue in 2024, either directly or to distributors, was destined for end-users in the e-commerce sectors, whose businesses frequently follow traditional retail seasonal trends, including a concentration of sales in the holiday period in the fourth quarter. Our results tend to follow similar patterns, with the highest net revenue typically recorded in our fourth fiscal quarter and the slowest sales in our first fiscal quarter of each fiscal year. We expect this seasonality to continue in the future and, as a result, our results of operations between fiscal quarters in a given year may not be directly comparable.

Previous wording

Our unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP. We also present Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and adjusted EBITDA (“AEBITDA”), which are non-GAAP financial measures, because they are key measures used by our management and board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating EBITDA and AEBITDA can provide a useful measure for period-to-period comparisons of our primary business operations. We believe that EBITDA and AEBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Current wording

Our unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We also present EBITDA and AEBITDA, which are non-GAAP financial measures, because they are key measures used by our management and board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating EBITDA and AEBITDA can provide a useful measure for period-to-period comparisons of our primary business operations. We believe that EBITDA and AEBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

Previous wording

We reconcile this data to our U.S. GAAP data for the same periods presented.

Current wording

We reconcile this data to our GAAP data for the same periods presented.

Previous wording

We operate globally, and a substantial portion of our net revenue and operations is denominated in foreign currencies, primarily the Euro. We calculate the year over-year impact of foreign currency movements using prior period foreign currency rates applied to current year results. These “constant currency” change amounts are non-GAAP measures and are not in accordance with, or an alternative to, measures prepared in accordance with U.S. GAAP. In addition, constant currency change measures are not based on any established set of accounting rules or principles.

Current wording

We operate globally, and a substantial portion of our net revenue and operations is denominated in foreign currencies, primarily the Euro. We calculate the year over-year impact of foreign currency movements using prior period foreign currency rates applied to current year results. These “constant currency” change amounts are non-GAAP measures and are not in accordance with, or an alternative to, measures prepared in accordance with GAAP. In addition, constant currency change measures are not based on any established set of accounting rules or principles.

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 income (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 GAAP. In particular, non-GAAP financial measures should not be viewed as substitutes for, or superior to, net income (loss) prepared in accordance with GAAP as a measure of profitability or liquidity. Some of these limitations are:

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 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.

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 September 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 GAAP to Non-GAAP Measures” for additional information and a reconciliation of EBITDA and AEBITDA to our net loss under GAAP.

Previous wording

The following table and the discussion that follows compares our net revenue by product line for three months ended June 30, 2025 and 2024 on a U.S. GAAP basis and also presents the Constant Currency (Non-GAAP) % Change. See also “Non-GAAP Measures” for further details:

Current wording

The following table and the discussion that follows compares our net revenue by product line for three months ended September 30, 2025 and 2024 on a GAAP basis and also presents the Constant Currency (Non-GAAP) % Change. See also “Non-GAAP Measures” for further details:

Previous 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.

Current wording

The increase in net revenue for the third quarter of 2025 compared to the third quarter of 2024 is quantified by a 4.5% increase in the automated equipment sales, a 3.6% increase from foreign currency fluctuations, and a 1.0% increase in the price or mix of our paper consumable products, partially offset by a decrease in the volume of sales of our paper consumable products of approximately 0.3%, and includes a 0.8% non-cash decrease from the provision for warrants.

Previous 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:

Current wording

Cost of sales for the third quarter of 2025 totaled $65.2 million, an increase of $7.4 million, or 12.8% (9.3% at constant currency), compared to $57.8 million in the third quarter of 2024. We have quantified the change in cost of sales as follows:

Previous 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.

Current wording

The increase in cost of sales was primarily due to an increase in production costs of 9.5% and fluctuations in foreign currency rates of 3.5%, partially offset by a decrease in the volume of products sold of 0.2% compared to the third quarter of 2024. Production costs include costs from materials, labor and overhead, and depreciation expense.

Previous 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.

Current wording

Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the third quarter of 2025 were $29.6 million, an increase of $0.8 million, or 2.8%, from $28.8 million in the third quarter of 2024. The increase in SG&A expenses was primarily due to a $2.1 million increase in professional services fees, partially offset by a $1.2 million decrease in compensation and temporary labor costs, compared to the third quarter of 2024. SG&A expenses were further impacted by foreign currency headwinds in the third quarter of 2025 as compared to 2024.

Previous 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.

Current wording

Depreciation and Amortization Expense. Depreciation and amortization expense for the third quarter of 2025 was $9.2 million, an increase of $1.0 million, or 12.2%, from $8.2 million in the third 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 and an increase in depreciation of machinery and equipment of $0.3 million for the third quarter of 2025 compared to the third quarter of 2024.

Previous 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.

Current wording

Other Operating Expense, Net. Other operating expense, net for the third quarter of 2025 was $1.3 million, a decrease of $0.3 million from $1.6 million in the third quarter of 2024, due to decreased loss on the disposal of property, plant, and equipment for the third quarter of 2025 compared to the third quarter of 2024.

Previous 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.

Current wording

Interest expense for the third quarter of 2025 was $8.7 million, a decrease of $0.6 million, or 6.5%, from $9.3 million in the third quarter of 2024. The decrease was primarily due to a $1.0 million increase in interest income from the effects of our swap agreements and a $0.4 million decrease in amortization of deferred financing costs, partially offset by a $0.6 million increase in interest expense associated with our First Lien Credit Facilities in the third quarter of 2025 compared to the third quarter of 2024.

Previous 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.

Current wording

Income tax benefit for the third quarter of 2025 was $4.2 million, or an effective tax rate of 28.1%. Income tax benefit was $2.5 million in the third quarter of 2024, or an effective tax rate of 23.2%. The fluctuation in the effective tax rate between periods is primarily attributable to taxes related to foreign activities and no impact from stock-based compensation for the same period in 2024. The difference between the effective tax rate for the third 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 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.

Current wording

EBITDA and AEBITDA are non-GAAP measures. Refer to the section “Reconciliation of GAAP to Non-GAAP Measures.” EBITDA for the third quarter of 2025 was $11.9 million, a decrease of $0.7 million, or 5.6%, compared to $12.6 million in the third quarter of 2024. AEBITDA for the third quarter of 2025 was $21.4 million, a decrease of $1.6 million, or 8.1% (3.5% on a constant currency basis), compared to $19.8 million in the third quarter of 2024. AEBITDA for the third quarter of 2025 includes a non-cash reduction to net revenue from the provision for warrants of $0.8 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 second quarter of 2025 and the second quarter of 2024, presented in millions of dollars:

Current wording

The following tables set forth our net revenue by segment for the third quarter of 2025 and the third quarter of 2024, presented in millions of dollars:

Previous 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.

Current wording

Net revenue in North America for the third quarter of 2025 totaled $44.7 million compared to $40.3 million in the third quarter of 2024. The increase of $4.4 million, or 10.9%, for the third quarter of 2025 compared to the third quarter of 2024 was attributable to increases in void-fill, automation, and wrapping sales, partially offset by a decrease in cushioning sales, and includes a non-cash reduction of $0.7 million in void-fill net revenue from the provision for warrants. The increase in net revenue for North America can be quantified by a 5.1% increase from automated equipment sales, a 3.8% increase in the price/mix of our paper consumable products, and an increase in volume of 3.7%, partially offset by a 1.7% non-cash decrease from the provision for warrants.

Previous wording

Net revenue in Europe/Asia for the second quarter of 2025 totaled $50.0 million compared to net revenue of $48.7 million in the second quarter of 2024. The increase of $1.3 million, or 2.7%, 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 3.7%, an increase in void-fill sales of $0.9 million, or 6.0%, and an increase in other net revenue of $0.3 million, or 5.9%, partially offset by a decrease in wrapping sales of $0.8 million, or 20.0%. The change in net revenue for Europe/Asia can be quantified by a 0.3% increase from the sales of automated box sizing equipment, a 0.1% increase in volume, and a 5.4% increase due to foreign currency fluctuations, partially offset by a 2.9% decrease in the price/mix of our paper consumable products and a 0.2% decrease from the provision for warrants.

Current wording

Net revenue in Europe/Asia for the third quarter of 2025 totaled $54.9 million compared to net revenue of $51.9 million in the third quarter of 2024. The increase of $3.0 million, or 5.8%, for the third quarter of 2025 compared to the third quarter of 2024 was attributable to increases in automation, wrapping, and cushioning sales, partially offset by a decrease in void-fill sales. The increase in net revenue for Europe/Asia can be quantified by a 6.4% increase due to foreign currency fluctuations and a 4.0% increase from automated equipment sales, partially offset by a 2.5% decrease in volume, a 1.9% decrease in the price/mix of our paper consumable products, and a 0.2% non-cash decrease 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 $7.6 million and $3.3 million for the three months ended June 30, 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 $3.8 million and $5.3 million for the three months ended September 30, 2025 and 2024, respectively, which eliminates on a consolidated basis.

Previous wording

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

Current wording

The following tables set forth our consolidated results of operations for the nine months ended September 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 six 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.

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 nine months ended September 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 GAAP to Non-GAAP Measures” for additional information and a reconciliation of EBITDA and AEBITDA to our net loss under GAAP.

Previous wording

The following table and the discussion that follows compares our net revenue by product line for six months ended June 30, 2025 and 2024 on a U.S. GAAP basis and also presents the Constant Currency (Non-GAAP) % Change. See also “Non-GAAP Measures” for further details:

Current wording

The following table and the discussion that follows compares our net revenue by product line for nine months ended September 30, 2025 and 2024 on a GAAP basis and also presents the Constant Currency (Non-GAAP) % Change. See also “Non-GAAP Measures” for further details:

Previous wording

The increase in net revenue for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is quantified by an increase in the volume of sales of our paper consumable products of approximately 8.5%, a 1.0% increase in the sales of automated box sizing equipment, and a 0.6% increase from foreign currency fluctuations, partially offset by a 2.1% decrease in the price or mix of our paper consumable products and a 1.1% decrease from the provision for common stock warrants.

Current wording

The increase in net revenue for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 is quantified by a 5.4% increase in the volume of sales of our paper consumable products, a 2.2% increase in automated equipment sales, and a 1.7% increase from foreign currency fluctuations, partially offset by a 1.1% non-cash decrease from the provision for warrants and a 0.9% decrease in the price/mix of our paper consumable products.

Previous wording

Cost of sales for the six months ended June 30, 2025 totaled $123.7 million, an increase of $16.0 million, or 14.9% (14.2% at constant currency), compared to $107.7 million in the six months ended June 30, 2024. We have quantified the change in cost of sales as follows:

Current wording

Cost of sales for the nine months ended September 30, 2025 totaled $188.9 million, an increase of $23.4 million, or 14.1% (12.5% at constant currency), compared to $165.5 million in the nine months ended September 30, 2024. We have quantified the change in cost of sales as follows:

Previous wording

The increase in cost of sales was primarily due to an increase in the volume of products sold of 4.6%, an increase in production costs of 8.4%, and an increase from fluctuations in foreign currency rates of 2.9% compared to the second quarter of 2024. Production costs include costs from materials, labor and overhead, and depreciation expense.

Current wording

The increase in cost of sales was primarily due to an increase in production costs of 7.5%, an increase in the volume of products sold of 5.0%, and fluctuations in foreign currency rates of 1.6% compared to the nine months ended September 30, 2024. Production costs include costs from materials and labor and overhead.

Previous wording

Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the six months ended June 30, 2025 were $57.7 million, an increase of $2.5 million, or 4.5%, from $55.2 million in the six months ended June 30, 2024. The change in SG&A was primarily due to increases in information technology maintenance costs of $1.5 million, stock-based compensation expense of $1.2 million, compensation of $1.1 million, and facility costs of $0.8 million, partially offset by a decrease in temporary labor of $1.0 million and professional fees of $0.7 million compared to the six months ended June 30, 2024.

Current wording

Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the nine months ended September 30, 2025 were $87.3 million, an increase of $3.3 million, or 3.9%, from $84.0 million in the nine months ended September 30, 2024. The increase in SG&A expenses was due to a $1.7 million increase in information technology maintenance costs, a $1.4 million increase in stock-based compensation expense, and a $1.4 million increase in professional services fees, partially offset by a $1.6 million decrease in temporary labor costs for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. SG&A expenses were further impacted by foreign currency headwinds in the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

Previous wording

Depreciation and Amortization Expense. Depreciation and amortization expense for the six months ended June 30, 2025 was $17.8 million, an increase of $1.1 million, or 6.0%, from $16.7 million in the six months ended June 30, 2024. The increase in depreciation and amortization expense was primarily due to a $0.9 million increase in amortization of internal-use software during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Current wording

Depreciation and Amortization Expense. Depreciation and amortization expense for the nine months ended September 30, 2025 was $27.0 million, an increase of $2.1 million, or 8.4%, from $24.9 million in the nine months ended September 30, 2024. The increase in depreciation and amortization expense was primarily due to an increase in amortization of internal-use software of $1.5 million and an increase in depreciation of machinery and equipment of $0.4 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Previous wording

Other Operating Expense, Net. Other operating expense, net for the six months ended June 30, 2025 was $2.0 million, a decrease of $0.1 million from $2.1 million in the six months ended June 30, 2024. The decrease was due to a decrease of $0.4 million from loss from disposal of property, plant, and equipment, partially offset by a $0.3 million increase in research and development expense for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Current wording

Other Operating Expense, Net. Other operating expense, net for the nine months ended September 30, 2025 was $3.3 million, a decrease of $0.4 million from $3.7 million in the nine months ended September 30, 2024. The decrease was due to a $0.7 million decrease in loss from disposal of property, plant, and equipment, partially offset by a $0.3 million increase in research and development expense for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Previous wording

Interest expense for the six months ended June 30, 2025 was $17.0 million, an increase of $5.5 million, or 47.8%, from $11.5 million in the six months ended June 30, 2024. The increase was primarily due to a decrease in interest income of $6.5 million from the effects of our swap agreements during the six months ended June 30, 2025 due to the expiration of our interest rate swap during the second quarter of 2024, partially offset by a $0.8 million decrease in amortization of deferred financing costs.

Current wording

Interest expense for the nine months ended September 30, 2025 was $25.7 million, an increase of $4.9 million, or 23.6%, from $20.8 million in the nine months ended September 30, 2024. The increase was primarily due to a $5.5 million decrease in interest income due to the expiration of our interest rate swap during the second quarter of 2024 and a $0.8 million increase in interest expense associated with our First Lien Credit Facilities, partially offset by a $1.2 million decrease in amortization of deferred financing costs.

Previous wording

Foreign currency gain for the six months ended June 30, 2025 was $5.2 million, a decrease of $3.9 million, from foreign currency gain of $1.3 million in the six months ended June 30, 2024 due to the volatility in Euro exchange rates compared to USD.

Current wording

Foreign currency gain for the nine months ended September 30, 2025 was $5.0 million, an increase of $3.9 million, from foreign currency gain of $1.1 million in the nine months ended September 30, 2024 due to the volatility in Euro exchange rates compared to USD.

Previous wording

Other non-operating income, net for the six months ended June 30, 2025 primarily represents a $5.8 million unrealized gain on our strategic investment in Pickle. Other non-operating income, net for the six months ended June 30, 2024 was $17.9 million and primarily represents $16.1 million in litigation proceeds and a $5.4 million gain on the sale of patents, partially offset by a $3.5 million unrealized loss on our strategic investment in Pickle.

Current wording

Other non-operating income, net for the nine months ended September 30, 2025 was $5.9 million, and primarily represents a $5.8 million unrealized gain on our strategic investment in Pickle. Other non-operating income, net for the nine months ended September 30, 2024 was $21.0 million and primarily represents $16.1 million in patent litigation settlement proceeds and a $5.4 million gain on the sale of patents, partially offsetby a $0.4 million unrealized loss on our strategic investment in Pickle.

Previous wording

Income tax benefit for the six months ended June 30, 2025 was $5.2 million, or an effective tax rate of 22.2%. Income tax expense was $0.3 million in the six months ended June 30, 2024, or an effective tax rate of (13.3)%. 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 six months ended June 30, 2025 and the combined federal and state statutory rates is primarily due to state income taxes.

Current wording

Income tax benefit for the nine months ended September 30, 2025 was $9.4 million, or an effective tax rate of 24.5%. Income tax benefit was $2.2 million in the nine months ended September 30, 2024, or an effective tax rate of 16.8%. The fluctuation in the effective tax rate between periods is primarily attributable to state income taxes, taxes related to foreign activities and tax expense related to a stock-based compensation windfall and shortfall recognized for the nine months ended September 30, 2025 and 2024, respectively. The difference between the effective tax rate 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 six months ended June 30, 2025 was $25.3 million, a decrease of $19.4 million, or 43.4%, compared to $44.7 million in the six months ended June 30, 2024. AEBITDA for the six months ended June 30, 2025 was $33.8 million, a decrease of $5.0 million, or 12.9% (13.4% on a constant currency basis), compared to $38.8 million in the six months ended June 30, 2024. AEBITDA for the six months ended June 30, 2025 includes a reduction to net revenue from the provision for warrants of $2.0 million.

Current wording

EBITDA and AEBITDA are non-GAAP measures. Refer to the section “Reconciliation of GAAP to Non-GAAP Measures.” EBITDA for the nine months ended September 30, 2025 was $37.2 million, a decrease of $20.1 million, or 35.1%, compared to $57.3 million in the nine months ended September 30, 2024. AEBITDA for the nine months ended September 30, 2025 was $55.2 million, a decrease of $3.4 million, or 5.8% (7.8% on a constant currency basis), compared to $58.6 million in the nine months ended September 30, 2024. AEBITDA for the nine months ended September 30, 2025 includes a non-cash reduction to net revenue from the provision for warrants of $2.8 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 six months ended June 30, 2025 and the six months ended June 30, 2024, presented in millions of dollars:

Current wording

The following tables set forth our net revenue by segment for the nine months ended September 30, 2025 and the nine months ended September 30, 2024, presented in millions of dollars:

Previous wording

Net revenue in North America for the six months ended June 30, 2025 totaled $84.9 million compared to net revenue in North America of $69.6 million in the six months ended June 30, 2024. The increase of $15.3 million, or 22.0%, was attributable to an increase in cushioning sales of $0.7 million, or 3.3%, an increase in void-fill sales of $11.2 million, or 29.2%, an increase in wrapping sales of $0.9 million, or 10.2%, and an increase in other net revenue of $2.5 million. The increase in void-fill was partially offset by a reduction of $1.9 million from the provision for warrants. The change in net revenue for North America can be quantified by an increase in volume of 28.3% and a 3.6% increase from sales of automated box sizing equipment, partially offset by a 7.2% decrease in the price/mix of our paper consumable products and a decrease of 2.7% from the provision for warrants.

Current wording

Net revenue in North America for the nine months ended September 30, 2025 totaled $129.6 million compared to net revenue in North America of $109.9 million in the nine months ended September 30, 2024. The increase of $19.7 million, or 17.9%, was attributable to increases in void-fill, automation, wrapping, and cushioning sales, and includes a non-cash reduction of $2.6 million in void-fill net revenue from the provision for warrants. The increase in net revenue for North America can be quantified by an increase in volume of 18.8% and a 4.2% increase from automated equipment sales, partially offset by a 2.7% decrease in the price/mix of our paper consumable products and a 2.4% non-cash decrease from the provision for warrants.

Previous 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.

Current wording

Net revenue in Europe/Asia for the nine months ended September 30, 2025 totaled $153.5 million compared to net revenue of $154.0 million in the nine months ended September 30, 2024. The decrease of $0.5 million, or 0.3% (3.1% on a constant currency basis, was attributable to decreases in void-fill, wrapping, and cushioning sales, partially offset by an increase in automation net revenue. The decrease in net revenue for Europe/Asia can be quantified by a 2.6% decrease in the price/mix of our paper consumable products, a decrease in volume of 1.1%, and a non-cash decrease of 0.1% from the provision for warrants, partially offset by a 2.8% increase due to foreign currency fluctuations and a 0.7% increase from automated equipment sales.

Previous wording

North America and Europe/Asia segment EBITDA includes intersegment royalty charges from North America to Europe/Asia for use of trademarks of $12.8 million and $6.9 million for the six months ended June 30, 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 $16.6 million and $12.2 million for the nine months ended September 30, 2025 and 2024, respectively, which eliminates on a consolidated basis.