Ranpak Holdings Corp.
For the period ended Jun 30, 2026. Filed Jul 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 30, 2026
PACK$3.63+8.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-30.
0001628280-26-028666
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsReconciliation of GAAP to Non-GAAP MeasuresCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001628280-26-050839
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsReconciliation of GAAP to Non-GAAP MeasuresThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 100 previous paragraphs and 143 current paragraphs.
66 unchanged; 30 reworded; 34 added; 4 removed; 0 previous and 13 current paragraphs rearranged.
Tables are not compared: 9 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
Comparison of Second Quarter of 2026 to Second Quarter of 2025
Current report
Depreciation and Amortization Expense. Depreciation and amortization expense for the second quarter of 2026 was $8.6 million, a decrease of $0.2 million from $8.8 million in the second quarter of 2025. The decrease in depreciation and amortization expense was primarily due to a decrease in amortization of finance leases, partially offset by an increase in depreciation of machinery and equipment for the second quarter of 2026 compared to the second quarter of 2025.
Current report
Other Non-Operating Expense (Income), Net
Current report
Other non-operating expense, net for the second quarter of 2026 was $0.1 million, a change of $6.0 million, from other non-operating income of $5.9 million in the second quarter of 2025 primarily due to a $5.8 million unrealized gain on our strategic investment in Pickle that did not recur in the second quarter of 2026.
Current report
Segment Results of Operations -Second Quarter of 2026 and Second Quarter of 2025
Current report
Segment EBITDA for North America was $6.6 million for the second quarter of 2026 compared to $3.1 million in the second quarter of 2025, an increase of $3.5 million, or 112.9%. The increase was primarily due to increased net revenue as described above and an increase in foreign currency gain of $9.3 million. The increase was partially offset by a $2.7 million decrease in intersegment royalty charges and a $5.8 million unrealized gain on our strategic investment in Pickle in the second quarter of 2025 that did not recur in the second quarter of 2026.
Current report
Segment EBITDA for Europe/Asia was $6.5 million for the second quarter of 2026 compared to $12.5 million in the second quarter of 2025, a decrease of $6.0 million, or 48.0%. The decrease was primarily due to the foreign currency loss of $0.7 million for the second quarter of 2026 compared to the foreign currency gain of $11.4 million for the second quarter of 2025. The decrease was partially offset by the increased net revenue as described above and a $2.7 million decrease in intersegment royalty charges for the three months ended June 30, 2026.
Current report
Consolidated Results of Operations
Current report
Comparison of Six Months Ended June 30, 2026 to Six Months Ended June 30, 2025
Current report
Net Revenue
Current report
Net revenue for the six months ended June 30, 2026 was $206.4 million compared to $183.5 million for the six months ended June 30, 2025, an increase of $22.9 million or 12.5% (8.4% on a constant currency basis) and includes a non-cash reduction of $1.9 million to void-fill and $1.5 million to automation net revenue from the provision for warrants. Net revenue for the six months ended June 30, 2025 includes a non-cash reduction of $2.0 million to void-fill from the provision for warrants. Net revenue was positively impacted by increases in automation equipment sales, void-fill and wrapping, partially offset by a decrease in cushioning. Automation net revenue increased $16.6 million or 123.9% to $30.0 million from $13.4 million; void-fill increased $5.3 million, or 6.5%, to $86.7 million from $81.4 million; wrapping increased $1.3 million, or 7.8%, to $18.0 million from $16.7 million; and cushioning decreased $0.3 million, or 0.4%, to $71.7 million from $72.0 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report
The increase in net revenue for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 is quantified by an 8.4% increase in automation equipment sales, a 4.1% increase from foreign currency fluctuations, and a 1.6% increase in the volume of sales of our paper consumable products, partially offset by a 0.9% decrease in the price/mix of our paper consumable products and a 0.7% impact from an increase in the non-cash provision for warrants.
Current report
Cost of Sales
Current report
Cost of sales for the six months ended June 30, 2026 totaled $137.0 million, an increase of $13.3 million, or 10.8% (7.0% on a constant currency basis), compared to $123.7 million in the six months ended June 30, 2025. We have quantified the change in cost of sales as follows:
Current report
Operating expenses
Current report
Depreciation and Amortization Expense. Depreciation and amortization expense for the six months ended June 30, 2026 was $17.6 million, a decrease of $0.2 million from $17.8 million in the six months ended June 30, 2025. The decrease in depreciation and amortization expense was primarily due to a decrease in amortization of finance leases, partially offset by an increase in depreciation of machinery and equipment for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report
Other Operating Expense, Net. Other operating expense, net for the six months ended June 30, 2026 was $1.2 million, a decrease of $0.8 million from $2.0 million in the six months ended June 30, 2025. The decrease was primarily due to a $0.5 million gain on the sublease of equipment classified as finance leases for the six months ended June 30, 2026, with no comparable gain in the six months ended June 30, 2025.
Current report
Interest Expense
Current report
Interest expense for the six months ended June 30, 2026 was $16.7 million, a decrease of $0.3 million, or 1.8%, from $17.0 million in the six months ended June 30, 2025. The decrease was primarily due to the decrease in interest expense associated with our Term Facility for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report
Foreign Currency Loss (Gain)
Current report
Foreign currency loss for the six months ended June 30, 2026 was $1.5 million, a change of $6.7 million, from foreign currency gain of $5.2 million in the six months ended June 30, 2025 due to the volatility in Euro exchange rates compared to USD.
Current report
Other Non-Operating Expense (Income), Net
Current report
Other non-operating expense, net for the six months ended June 30, 2026 was $0.1 million compared to other non-operating income, net of $5.9 million for the six months ended June 30, 2025. Other non-operating income, net for the six months ended June 30, 2025 included a $5.8 million unrealized gain on our strategic investment in Pickle that did not recur for the six months ended June 30, 2026.
Current report
Income Tax Benefit
Current report
EBITDA and AEBITDA
Current report
EBITDA and AEBITDA are non-GAAP measures. Refer to “Reconciliation of GAAP to Non-GAAP Measures.” EBITDA for the six months ended June 30, 2026 was $24.8 million, a decrease of $0.5 million, or 2.0%, compared to $25.3 million in the six months ended June 30, 2025. AEBITDA for the six months ended June 30, 2026 was $38.0 million, an increase of $4.2 million, or 12.4% (6.2% on a constant currency basis), compared to $33.8 million in the six months ended June 30, 2025. AEBITDA for the six months ended June 30, 2026 includes a non-cash reduction to net revenue from the provision for warrants of $3.4 million compared to $2.0 million for the six months ended June 30, 2025.
Current report
Segment Results of Operations -Six Months Ended June 30, 2026 and Six Months Ended June 30, 2025
Current report
The following tables set forth our net revenue by segment for the six months ended June 30, 2026 and the six months ended June 30, 2025, presented in millions of dollars:
Current report
Net revenue in North America for the six months ended June 30, 2026 totaled $88.4 million compared to $84.9 million for the six months ended June 30, 2025. The increase of $3.5 million, or 4.1%, was attributable to increases in automation equipment sales and void-fill, partially offset by decreases in cushioning and wrapping, and includes a non-cash reduction of $1.7 million in void-fill and $1.5 million in automation net revenue from the provision for warrants. Net revenue in North America for the six months ended June 30, 2025 includes a non-cash reduction of $1.9 million in void-fill from the provision for warrants. The increase in net revenue for North America can be quantified by a 6.8% increase from automation equipment sales and a 1.0% increase in the price/mix of our paper consumable products, partially offset by a 2.2% decrease in volume of sales of our paper consumable products and a 1.5% impact from an increase in the non-cash provision for warrants.
Current report
Net revenue in Europe/Asia for the six months ended June 30, 2026 totaled $118.0 million compared to net revenue of
Current report
$98.6 million for the six months ended June 30, 2025. The increase of $19.4 million, or 19.7% (12.1% on a constant currency basis), was attributable to increases in automation equipment sales, void-fill, and wrapping sales. The increase in cushioning was primarily driven by favorable foreign currency fluctuations. The increase in net revenue for Europe/Asia can be quantified by a 9.7% increase from automation equipment sales, a 7.6% increase due to foreign currency fluctuations, and a 3.8% increase in the volume of sales of our paper consumable products, partially offset by a 1.4% decrease in the price/mix of our paper consumable products.
Current report
Segment EBITDA for North America was $13.4 million for the six months ended June 30, 2026 compared to $8.1 million in the six months ended June 30, 2025, an increase of $5.3 million, or 65.4%. The increase was primarily due to an increase in net revenue as described above and an increase in foreign currency gain of $9.7 million. The increase was partially offset by a $2.9 million decrease in intersegment royalty charges and a $5.8 million unrealized gain on our strategic investment in Pickle during the six months ended June 30, 2025 that did not recur for the six months ended June 30, 2026.
Current report
Segment EBITDA for Europe/Asia was $11.4 million for the six months ended June 30, 2026 compared to $17.2 million in the six months ended June 30, 2025, a decrease of $5.8 million, or 33.7%. The decrease was primarily due to the foreign currency loss of $4.6 million for the six months ended June 30, 2026 compared to the foreign currency gain of $11.8 million for the six months ended June 30, 2025. The decrease was partially offset by the increase in net revenue as described above.
Removed paragraphs (4)
Previous report
Comparison of First Quarter of 2026 to First Quarter of 2025
Previous report
Depreciation and Amortization Expense. Depreciation and amortization expense for the first quarter of 2026 was $9.0 million, consistent with the first quarter of 2025.
Previous report
Segment Results of Operations -First Quarter of 2026 and First Quarter of 2025
Previous report
Segment EBITDA for Europe/Asia was $4.9 million for the first quarter of 2026 compared to $4.6 million in the first quarter of 2025, an increase of $0.3 million, or 6.5%. The increase was primarily due to increased net revenue as described above, partially offset by increased foreign currency losses for the three months ended March 31, 2026.
Reworded paragraphs (30)
Previous wording
We generated net revenue of $101.2 million and $91.2 million in the three months ended March 31, 2026 and 2025, respectively. We have two segments, North America and Europe/Asia. Management evaluates segment performance by net revenue and Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) by geographic region.
Current wording
We generated net revenue of $206.4 million and $183.5 million in the six months ended June 30, 2026 and 2025, respectively. We have two segments, North America and Europe/Asia. Management evaluates segment performance by net revenue and Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) by geographic region.
Previous wording
Paper and Other Costs. Paper is a key component of our cost of goods sold and paper costs can fluctuate significantly between periods. We purchase both 100% virgin and 100% recycled paper, as well as blends, from various suppliers for conversion into the paper consumables we sell. The cost of paper supplies is our largest input cost, and we historically have negotiated supply and pricing arrangements with most of our paper suppliers annually, with a view towards mitigating fluctuations in paper cost. Nevertheless, as paper is a commodity, its price on the open market, and in turn the prices we negotiate with suppliers at a given point in time, can fluctuate significantly, and is affected by several factors outside of our control, including inflationary pressures, supply and demand and the cost of other commodities that are used in the manufacture of paper, including wood, energy, and chemicals. For example, energy prices in Europe have experienced recent increased volatility, and such volatility has, in the past, increased the cost of paper. The market for our solutions is competitive and it may be difficult to pass on increases in paper prices to our customers immediately, or at all, which has in the past, and could in the future, adversely affect our operating results. Although we look to pass increased market costs on to our customers to mitigate the impact of these costs, we are unable to predict the extent to which we will be able to do so. As such, we expect some continued pressure on our gross margin in the medium term relative to our historical margin profile.
Current wording
Paper and Other Costs. Paper is a key component of our cost of goods sold and paper costs can fluctuate significantly between periods. We purchase both 100% virgin and 100% recycled paper, as well as blends, from various suppliers for conversion into the paper consumables we sell. The cost of paper supplies is our largest input cost, and we historically have negotiated supply and pricing arrangements with most of our paper suppliers annually, with a view towards mitigating fluctuations in paper cost. Nevertheless, as paper is a commodity, its price on the open market, and in turn the prices we negotiate with suppliers at a given point in time, can fluctuate significantly, and is affected by several factors outside of our control, including inflationary pressures, supply and demand and the cost of other commodities that are used in the manufacture of paper, including wood, energy, and chemicals. For example, energy prices in Europe have experienced recent increased volatility, and such volatility has, in the past, increased the cost of paper. The market for our solutions is competitive and it may be difficult to pass on increases in paper prices to our customers immediately, or at all, which has in the past, and could in the future, adversely affect our operating results. Although we look to pass increased market costs on to our customers to mitigate the impact of these costs, we are unable to predict the extent to which we will be able to do so. As such, we expect some continued pressure on our gross margin in fiscal 2026 relative to our historical margin profile.
Previous wording
In addition to inflationary pressures, our U.S. operations are subject to the impact of tariffs, largely related to our capital expenditures for our PPS converters, some of which are sourced from China or contain parts and components from China and other Asian countries. We are taking steps to minimize the potential impact of these tariffs by evaluating alternative parts and global suppliers as well as stepping up our efforts to refabricate and refurbish existing machines in our fleet to reduce cost. Our box customization equipment is currently made in Europe and shipped to the United States and thus will be subject to the U.S. tariff on European goods. We are focused on cost reduction and efficiencies to minimize the impact to our customers, and believe in the ongoing value proposition of our equipment.
Current wording
In addition to inflationary pressures, our U.S. operations are subject to the impact of tariffs, largely related to our capital expenditures for our PPS converters, some of which are sourced from China or contain parts and components from China and other Asian countries. We are taking steps to minimize the potential impact of these tariffs by evaluating alternative parts and global suppliers as well as stepping up our efforts to refabricate and refurbish existing machines in our fleet to reduce cost. Our box customization equipment is currently made in Europe and shipped to the United States and thus are subject to U.S. tariffs on European goods. We are focused on cost reduction and efficiencies to minimize the impact to our customers, and believe in the ongoing value proposition of our equipment.
Previous wording
We expect certain headwinds from the recent U.S.-Iran hostilities which have resulted in increased energy prices globally. The market for our solutions is competitive and it may be difficult to pass on increases in paper prices to our customers immediately, or at all, which has in the past, and could in the future, adversely affect our operating results. Although we look to pass increased market costs on to our customers to mitigate the impact of these costs, we are unable to predict the extent to which we will be able to do so. As such, there could be continued pressure on our gross margin in our results for fiscal 2026 relative to our historical margin profile.
Current wording
We have experienced and expect to continue to experience headwinds from the recent U.S.-Iran hostilities which have resulted in increased energy prices globally. The market for our solutions is competitive and it may be difficult to pass on increases in paper prices to our customers immediately, or at all, which has in the past, and could in the future, adversely affect our operating results. Although we look to pass increased market costs on to our customers to mitigate the impact of these costs, we are unable to predict the extent to which we will be able to do so. As such, there could be continued pressure on our gross margin in our results for fiscal 2026 relative to our historical margin profile.
Previous wording
Net revenue for the first quarter of 2026 was $101.2 million compared to $91.2 million for the first quarter of 2025, an increase of $10.0 million or 11.0% (4.5% on a constant currency basis) and includes a non-cash reduction of $0.9 million to void-fill and $0.8 million to automation net revenue from the provision for warrants in the current period. Net revenue for the first quarter of 2025 includes a non-cash reduction of $0.8 million to void-fill from the provision for warrants. Net revenue was positively impacted primarily by increases in automation equipment sales. The increase in void-fill and cushioning was primarily driven by favorable foreign currency fluctuations. Cushioning increased $1.4 million, or 4.0%, to $36.6 million from $35.2 million; void-fill increased $1.6 million, or 4.0%, to $41.9 million from $40.3 million; wrapping decreased $0.1 million, or 1.1%, to $9.3 million from $9.4 million; and automation net revenue increased $7.1 million, or 112.7% to $13.4 million from $6.3 million for the first quarter of 2026 compared to the first quarter of 2025.
Current wording
Net revenue for the second quarter of 2026 was $105.2 million compared to $92.3 million for the second quarter of 2025, an increase of $12.9 million or 14.0% (12.2% on a constant currency basis) and includes a non-cash reduction of $1.0 million to void-fill and $0.7 million to automation net revenue from the provision for warrants in the current period. Net revenue for the second quarter of 2025 includes a non-cash reduction of $1.2 million to void-fill from the provision for warrants. Net revenue was positively impacted by increases in automation equipment sales, void-fill, and wrapping, partially offset by a decrease in cushioning. Automation net revenue increased $9.5 million, or 133.8% to $16.6 million from $7.1 million; void-fill increased $3.7 million, or 9.0%, to $44.8 million from $41.1 million; wrapping increased $1.4 million, or 19.2%, to $8.7 million from $7.3 million; and cushioning decreased $1.7 million, or 4.6%, to $35.1 million from $36.8 million for the second quarter of 2026 compared to the second quarter of 2025.
Previous wording
The increase in net revenue for the first quarter of 2026 compared to the first quarter of 2025 is quantified by a 6.8% increase in automation equipment sales, a 6.5% increase from foreign currency fluctuations, and a 0.8% increase in the volume of sales of our paper consumable products, partially offset by a 2.1% decrease in the price or mix of our paper consumable products and a 1.0% non-cash decrease from the provision for warrants.
Current wording
The increase in net revenue for the second quarter of 2026 compared to the second quarter of 2025 is quantified by a 10.0% increase in automation equipment sales, a 2.4% increase in the volume of sales of our paper consumable products, a 1.8% increase from foreign currency fluctuations, and a 0.2% increase in the price or mix of our paper consumable products, partially offset by a 0.4% impact from an increase in the non-cash provision for warrants.
Previous wording
Cost of sales for the first quarter of 2026 totaled $66.3 million, an increase of $6.0 million, or 10.0% (4.1% at constant currency), compared to $60.3 million in the first quarter of 2025. We have quantified the change in cost of sales as follows:
Current wording
Cost of sales for the second quarter of 2026 totaled $70.7 million, an increase of $7.3 million, or 11.5% (9.8% on a constant currency basis), compared to $63.4 million in the second quarter of 2025. 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/mix of products sold of 7.9% and fluctuations in foreign currency rates of 5.9%, partially offset by a decrease in production costs of 3.8% compared to the first quarter of 2025. The 7.9% change in volume/mix is primarily attributable to an increase in automation equipment sales, which drove a 7.2% increase in cost of sales. 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 the volume/mix of products sold of 11.3% and fluctuations in foreign currency rates of 1.7%, partially offset by a decrease in production costs of 1.5% compared to the second quarter of 2025. The 11.3% change in volume/mix is primarily attributable to an increase in automation equipment sales, which drove a 9.4% increase in cost of sales. Production costs include costs from materials, labor and overhead, and depreciation expense.
Previous wording
Segment EBITDA for North America was $6.8 million for the first quarter of 2026 compared to $5.1 million in the first quarter of 2025, an increase of $1.7 million, or 33.3%. The increase was primarily due to a $0.8 million decrease in research and development expense and a $0.5 million decrease in stock-based compensation expense for the first quarter of 2026 compared to the first quarter of 2025.
Current wording
Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the second quarter of 2026 were $27.6 million, a decrease of $1.2 million, or 4.2%, from $28.8 million in the second quarter of 2025. The decrease in SG&A expenses was primarily due to a $0.8 million decrease in facility costs and a $0.7 million decrease in stock-based compensation expense for the second quarter of 2026 compared to the second quarter of 2025.
Previous wording
Other Operating Expense, Net. Other operating expense, net for the first quarter of 2026 was $0.5 million, a decrease of $0.5 million from $1.0 million in the first quarter of 2025, due to decreased research and development expense of $0.4 million for the first quarter of 2026 compared to the first quarter of 2025.
Current wording
Other Operating Expense, Net. Other operating expense, net for the second quarter of 2026 was $0.7 million, a decrease of $0.3 million from $1.0 million in the second quarter of 2025. The decrease was primarily due to a $0.5 million gain on the sublease of equipment classified as finance leases, partially offset by a $0.3 million increase in research and development expense for the second quarter of 2026 compared to the second quarter of 2025.
Previous wording
Interest expense for the first quarter of 2026 was $8.6 million, a decrease of $0.1 million, or 1.1%, from $8.7 million in the first quarter of 2025. The decrease was primarily due to the decrease in interest expense associated with our First Lien Credit Facilities in the first quarter of 2026 compared to the first quarter of 2025.
Current wording
Interest expense for the second quarter of 2026 was $8.1 million, a decrease of $0.2 million, or 2.4%, from $8.3 million in the second quarter of 2025. The decrease was primarily due to the decrease in interest expense associated with our Term Facility in the second quarter of 2026 compared to the second quarter of 2025.
Previous wording
Foreign currency loss for the first quarter of 2026 was $1.3 million, a change of $3.9 million, from foreign currency gain of $2.6 million for the first quarter of 2025 due to the volatility in Euro exchange rates compared to USD.
Current wording
Foreign currency loss for the second quarter of 2026 was $0.2 million, a change of $2.8 million, from foreign currency gain of $2.6 million for the second quarter of 2025 due to the volatility in Euro exchange rates compared to USD.
Previous wording
Income tax benefit for the first quarter of 2026 was $3.5 million, or an effective tax rate of 26.0%. Income tax benefit was $3.2 million in the first quarter of 2025, or an effective tax rate of 22.6%. The fluctuation in the effective tax rate between periods is primarily attributable to taxes related to foreign activities and the impact from stock-based compensation for the same period in 2025. The difference between the effective tax rate for the first quarter of 2026 and the combined federal and state statutory rates is primarily due to state income taxes.
Current wording
Income tax benefit for the second quarter of 2026 was $2.9 million, or an effective tax rate of 26.9%. Income tax benefit was $2.0 million in the second quarter of 2025, or an effective tax rate of 21.5%. The fluctuation in the effective tax rate between periods is primarily attributable to taxes related to foreign activities and the impact from stock-based compensation for the same period in 2025. The difference between the effective tax rate for the second quarter of 2026 and the combined federal and state statutory rates is primarily due to international and state income benefits.
Previous wording
EBITDA and AEBITDA are non-GAAP measures. Refer to “Reconciliation of GAAP to Non-GAAP Measures.” EBITDA for the first quarter of 2026 was $11.7 million, an increase of $2.0 million, or 20.6%, compared to $9.7 million in the first quarter of 2025. AEBITDA for the first quarter of 2026 was $18.9 million, an increase of $1.6 million, or 9.2% (flat on a constant currency basis), compared to $17.3 million in the first quarter of 2025. AEBITDA for the first quarter of 2026 includes a non-cash reduction to net revenue from the provision for warrants of $1.7 million compared to $0.8 million for the first quarter of 2025.
Current wording
EBITDA and AEBITDA are non-GAAP measures. Refer to “Reconciliation of GAAP to Non-GAAP Measures.” EBITDA for the second quarter of 2026 was $13.1 million, a decrease of $2.5 million, or 16.0%, compared to $15.6 million in the second quarter of 2025. AEBITDA for the second quarter of 2026 was $19.1 million, an increase of $2.6 million, or 15.8% (13.9% on a constant currency basis), compared to $16.5 million in the second quarter of 2025. AEBITDA for the second quarter of 2026 includes a non-cash reduction to net revenue from the provision for warrants of $1.7 million compared to $1.2 million for the second quarter of 2025.
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 2026 and the first quarter of 2025, 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 2026 and the second quarter of 2025, presented in millions of dollars:
Previous wording
Net revenue in North America for the first quarter of 2026 totaled $42.5 million compared to $42.6 million in the first quarter of 2025. The decrease of $0.1 million, or 0.2%, for the first quarter of 2026 compared to the first quarter of 2025 was attributable to decreases in wrapping, cushioning, and void-fill sales, partially offset by an increase in automation equipment sales, and includes a non-cash reduction of $0.8 million in void-fill and $0.8 million in automation net revenue from the provision for warrants. The decrease in net revenue for North America can be quantified by a decrease in the volume of sales of our paper consumable products of 3.6% and a 1.9% non-cash decrease from the provision for warrants, partially offset by a 5.2% increase from automation equipment sales and a 0.1% increase in the price/mix of our paper consumable products.
Current wording
Net revenue in North America for the second quarter of 2026 totaled $45.9 million compared to $42.3 million in the second quarter of 2025. The increase of $3.6 million, or 8.5%, for the second quarter of 2026 compared to the second quarter of 2025 was attributable to increases in automation equipment sales, void-fill, and wrapping, partially offset by a decrease in cushioning, and includes a non-cash reduction of $0.9 million in void-fill and $0.7 million in automation net revenue from the provision for warrants. Net revenue in North America for the second quarter of 2025 includes a non-cash reduction of $1.1 million to void-fill from the provision for warrants. The increase in net revenue for North America can be quantified by an 8.5% increase from automation equipment sales and a 1.9% increase in the price/mix of our paper consumable products, partially offset by a 1.2% impact from an increase in the non-cash provision for warrants and a 0.7% decrease in the volume of sales of our paper consumable products.
Previous wording
Net revenue in Europe/Asia for the first quarter of 2026 totaled $58.7 million compared to net revenue of $48.6 million in the first quarter of 2025. The increase of $10.1 million, or 20.8%, for the first quarter of 2026 compared to the first quarter of 2025 was attributable to increases in automation equipment sales, cushioning, void-fill, and wrapping sales. The increase in net revenue for Europe/Asia can be quantified by a 12.2% increase due to foreign currency fluctuations and a 8.2% increase from automation equipment sales, and a 3.4% increase in volume of sales of our paper consumable products, partially offset by a 2.8% decrease in the price/mix of our paper consumable products and a 0.2% non-cash decrease from the provision for warrants.
Current wording
Net revenue in Europe/Asia for the second quarter of 2026 totaled $59.3 million compared to net revenue of $50.0 million in the second quarter of 2025. The increase of $9.3 million, or 18.6% (15.4% on a constant currency basis), for the second quarter of 2026 compared to the second quarter of 2025 was attributable to increases in automation equipment sales, void-fill, and wrapping sales. The increase in cushioning was primarily driven by favorable foreign currency fluctuations. The increase in net revenue for Europe/Asia can be quantified by an 11.2% increase from automation equipment sales, a 4.2% increase in volume of sales of our paper consumable products, and a 3.2% increase due to foreign currency fluctuations.
Previous wording
North America and Europe/Asia segment EBITDA includes intersegment royalty charges from North America to Europe/Asia for use of trademarks of $5.0 million and $5.2 million for the three months ended March 31, 2026 and 2025, 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 $4.9 million and $7.6 million for the three months ended June 30, 2026 and 2025, respectively, which eliminates on a consolidated basis.
Previous wording
The following table and the discussion that follows compares our net revenue by product line for three months ended March 31, 2026 and 2025 on a 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 the six months ended June 30, 2026 and 2025 on a GAAP basis and also presents the Constant Currency (Non-GAAP) % Change. See also “Non-GAAP Measures” for further details:
Previous wording
Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the first quarter of 2026 were $29.2 million, an increase of $0.3 million, or 1.0%, from $28.9 million in the first quarter of 2025. The net increase in SG&A expenses includes a $1.5 million unfavorable impact from foreign currency fluctuations and a $2.3 million increase in compensation expense, partially offset by a $0.9 million decrease in stock-based compensation and reductions in discretionary spend from cost reduction initiatives.
Current wording
Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the six months ended June 30, 2026 were $56.8 million, a decrease of $0.9 million, or 1.6%, from $57.7 million in the six months ended June 30, 2025. The net change in SG&A expenses includes a $1.7 million decrease in stock-based compensation expense and a $1.6 million decrease in facility costs, partially offset by a $2.5 million increase in compensation expense. These changes are inclusive of a $1.8 million unfavorable impact from foreign currency fluctuations.
Previous wording
The following table and related notes reconcile certain non-GAAP measures to GAAP information presented in this Quarterly Report for the three months ended March 31, 2026 and 2025:
Current wording
The following table and related notes reconcile certain non-GAAP measures to GAAP information presented in this Quarterly Report for the three and six months ended June 30, 2026 and 2025:
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 1.0521 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 1.1323 USD. Refer to further discussion in “Non-GAAP Measures.”
Previous wording
(5)In the first quarter of 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.
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.
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 $48.5 million in cash and cash equivalents as of March 31, 2026 and cash flow 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 $43.2 million in cash and cash equivalents as of June 30, 2026 and cash flow 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 financing arrangements and excluding deferred financing costs, we had $411.4 million in debt, $6.6 million of which was classified as short-term, as of March 31, 2026, compared to $410.5 million in debt, $5.5 million of which was classified as short-term, as of December 31, 2025.
Current wording
Including finance lease liabilities and financing arrangements and excluding deferred financing costs, we had $410.6 million in debt, $6.8 million of which was classified as short-term, as of June 30, 2026, compared to $410.5 million in debt, $5.5 million of which was classified as short-term, as of December 31, 2025.
Previous wording
At March 31, 2026, we did not have amounts outstanding under the Revolving Facility, and we had no borrowings under such facility through April 30, 2026. 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, 2026, we had $5.8 million committed to outstanding letters of credit, leaving net availability of $44.2 million under the Revolving Facility.
Current wording
At June 30, 2026, we did not have amounts outstanding under the Revolving Facility, and we had no borrowings under such facility through July 30, 2026. 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, 2026, we had $2.8 million committed to outstanding letters of credit, leaving net availability of $47.2 million under the Revolving Facility.
Previous wording
Net cash provided by operating activities was $4.4 million in the three months ended March 31, 2026. Net cash used in operating activities was $1.3 million in the three months ended March 31, 2025. The changes in operating cash flows are largely due to lower net loss and foreign currency changes.
Current wording
Net cash provided by operating activities was $7.1 million in the six months ended June 30, 2026. Net cash used in operating activities was $4.9 million in the six months ended June 30, 2025. The changes in operating cash flows are largely due to a decrease in the purchase of inventory compared to the six months ended June 30, 2025, which included a significant inventory build that did not recur in the current period. This was partially offset by less favorable changes in accounts payable and accounts receivable. Net loss for the six months ended June 30, 2025 also included a $5.8 million unrealized gain on our strategic investment in Pickle that did not recur for the six months ended June 30, 2026 and foreign currency loss for the six months ended June 30, 2026 compared to foreign currency gains for the six months ended June 30, 2025.
Previous wording
Net cash used in investing activities was $18.3 million and $7.5 million in the three months ended March 31, 2026 and 2025, 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, 2026 also included $10.0 million in cash paid for the additional investment in Pickle.
Current wording
Net cash used in investing activities was $24.9 million and $19.8 million for the six months ended June 30, 2026 and 2025, respectively, and reflects cash used for production of converter equipment and purchases of machinery and equipment. Net cash used in investing activities in the six months ended June 30, 2026 also included $10.0 million in cash paid for the Pickle SAFE note.
Previous wording
Cash Flows Provided by (Used in) Financing Activities
Current wording
Cash Flows Used in Financing Activities
Previous wording
Net cash provided by financing activities was $0.2 million in the three months ended March 31, 2026 and reflects proceeds from our financing arrangements, partially offset by principal payments on our term loans, tax payments for withholdings on stock-based awards, payments on financing arrangements, and payments on finance lease liabilities. Net cash used in financing activities was $2.8 million in the three months ended March 31, 2025 and reflects tax payments for withholdings on stock-based awards, principal payments on our term loans, payments on finance lease liabilities, and payments on financing arrangements.
Current wording
Net cash used in financing activities was $1.1 million in the six months ended June 30, 2026 and reflects proceeds from our financing arrangements, partially offset by principal payments on our term loans, payments on financing arrangements, payments on finance lease liabilities, and other financing activities, net. Net cash used in financing activities was $4.9 million in the six months ended June 30, 2025 and reflects principal payments on our term loans, payments on finance lease liabilities, payments on our equipment financing arrangement, and other financing activities, net.
Rearranged current paragraphs (13)
Current report — wording carried from elsewhere
The following table and the discussion that follows compares our net revenue by product line for the three months ended June 30, 2026 and 2025 on a GAAP basis and also presents the Constant Currency (Non-GAAP) % Change. Refer to “Non-GAAP Measures” for further details:
Current report — wording carried from elsewhere
The following tables set forth our consolidated results of operations for the six months ended June 30, 2026 and 2025, presented in millions of dollars. “NM” represents “not meaningful.”
Current report — wording carried from elsewhere
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, 2026 and 2025. 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.
Current report — wording carried from elsewhere
The increase in cost of sales was primarily due to an increase in the volume/mix of products sold of 9.6% and fluctuations in foreign currency rates of 3.8%, partially offset by a decrease in production costs of 2.6% compared to the six months ended June 30, 2025. The 9.6% change in volume/mix is primarily attributable to an increase in automation equipment sales, which drove an 8.3% increase in cost of sales. Production costs include costs from materials, labor and overhead, and depreciation expense.
Current report — wording carried from elsewhere
Income tax benefit for the six months ended June 30, 2026 was $6.4 million, or an effective tax rate of 26.1%. Income tax benefit was $5.2 million in the six months ended June 30, 2025, or an effective tax rate of 22.2%. The fluctuation in the effective tax rate between periods is primarily attributable to state income benefits, benefits related to foreign activities and tax impact related to a stock-based compensation shortfall and windfall for the same periods in 2026 and 2025, respectively. The difference between the effective tax rate and the combined federal and state statutory rates is primarily due to international and state income benefits.
Current report — wording carried from elsewhere
The following table sets forth segment EBITDA, presented in millions of dollars:
Current report — wording carried from elsewhere
North America and Europe/Asia segment EBITDA includes intersegment royalty charges from North America to Europe/Asia for use of trademarks of $9.9 million and $12.8 million for the six months ended June 30, 2026 and 2025, respectively, which eliminates on a consolidated basis.
Current report — wording carried from elsewhere
(5)In the second quarter of 2025, ‘Other adjustments’ includes non-recurring excess above market procurement costs and other insignificant items.
Current report — wording carried from elsewhere
(1)Reconciliations of EBITDA and AEBITDA for each period presented are to net loss, the nearest GAAP equivalent.
Current report — wording carried from elsewhere
(2)Adjustments are related to non-cash unusual or infrequent costs such as: effects of non-cash foreign currency remeasurement or adjustment; impairment of returned machines; costs associated with the evaluation of acquisitions; costs associated with executive severance; costs associated with restructuring actions such as plant rationalization or realignment, reorganization, and reductions in force; costs associated with the implementation of the global ERP system; and other items deemed by management to be unusual, infrequent, or non-recurring.
Current report — wording carried from elsewhere
(3)Represents amortization of capitalized costs primarily related to the implementation of the global ERP system, which are included in SG&A.
Current report — wording carried from elsewhere
(4)Third-party professional services and consulting fees related to post-implementation system remediation.
Current report — wording carried from elsewhere
(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 1.0919 USD. Refer to further discussion in “Non-GAAP Measures.”