Ranpak Holdings Corp.

Previous 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.

Current wording

We generated net revenue of $308.3 million and $283.1 million in the nine months ended September 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 fiscal 2026 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. Energy price volatility has in the past increased the cost of paper, and we have experienced and expect to continue to experience headwinds from higher global energy prices resulting from the recent U.S.-Iran hostilities. 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, such as surcharges implemented during 2026 in response to rising energy 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

Inflationary Pressures and Other Costs. We have continued to experience inflationary pressures in 2026, which have adversely impacted some of our end-users, such as automotive companies; electronic manufacturers; machinery manufacturers; e-commerce and mail order fulfillment firms; and other end-users that are particularly sensitive to reductions in business and consumer spending by their respective customers, and which in turn have impacted our net revenue. Higher costs due to inflation were partially offset by price increases, which mitigated the impact on our operating results. However, our ability to predict or further offset inflationary cost increases in the future or during economic downturns or recessions may be limited or impacted by heightened competition for market share, an unwillingness by our customers to accept price increase or pressure to reduce selling prices if end-users reduce their volume of purchases. Inflationary pressures and associated changing interest rates and borrowing costs may also impact the ability of some of our end-users and suppliers to obtain funds for operations and capital expenditures, which could negatively impact our ability to obtain necessary supplies as well as the sales of materials and equipment to affected end-users. This could also result in reduced or delayed collections of outstanding accounts receivable from end-users, which could impact our cash flows. As a result, to the extent inflationary pressures continue, we expect additional pressure on our net revenue and gross margin. We will continue to evaluate the impact of inflationary pressures on our profitability and cash flows as well as our end-users.

Current wording

Inflationary Pressures and Other Costs. We have continued to experience inflationary pressures in 2026, which have adversely impacted some of our end-users, such as automotive companies; electronic manufacturers; machinery manufacturers; e-commerce and mail order fulfillment firms; and other end-users that are particularly sensitive to reductions in business and consumer spending by their respective customers, and which in turn have impacted our net revenue. Higher costs due to inflation were partially offset by price increases, which mitigated the impact on our operating results. However, our ability to predict or further offset inflationary cost increases in the future or during economic downturns or recessions may be limited or impacted by heightened competition for market share, an unwillingness by our customers to accept price increases or pressure to reduce selling prices if end-users reduce their volume of purchases. Inflationary pressures and associated changing interest rates and borrowing costs may also impact the ability of some of our end-users and suppliers to obtain funds for operations and capital expenditures, which could negatively impact our ability to obtain necessary supplies as well as the sales of materials and equipment to affected end-users. This could also result in reduced or delayed collections of outstanding accounts receivable from end-users, which could impact our cash flows. As a result, to the extent inflationary pressures continue, we expect additional pressure on our net revenue and gross margin. We will continue to evaluate the impact of inflationary pressures on our profitability and cash flows as well as our end-users.

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, 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

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, 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

Previous wording

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

Current wording

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

Previous 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.

Current wording

Net revenue for the third quarter of 2026 was $101.9 million compared to $99.6 million for the third quarter of 2025, an increase of $2.3 million or 2.3% (3.4% on a constant currency basis) and includes a non-cash reduction of $0.8 million to void-fill and $0.4 million to automation net revenue from the provision for warrants in the current period. Net revenue for the third 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 by increases in automation equipment sales and wrapping, partially offset by a decrease in void-fill. Automation net revenue increased $2.7 million, or 22.7%, to $14.6 million from $11.9 million; wrapping increased $0.7 million, or 8.2%, to $9.2 million from $8.5 million; cushioning increased $0.1 million, or 0.3%, to $35.9 million from $35.8 million; and void-fill decreased $1.2 million, or 2.8%, to $42.2 million from $43.4 million for the third quarter of 2026 compared to the third quarter of 2025.

Previous 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.

Current wording

The increase in net revenue for the third quarter of 2026 compared to the third quarter of 2025 is quantified by a 3.5% increase in the price or mix of our paper consumable products and a 2.8% increase in automation equipment sales, partially offset by a 2.5% decrease in the volume of sales of our paper consumable products, a 1.1% decrease from foreign currency fluctuations, and a 0.4% reduction from an increase in the non-cash provision for warrants.

Previous 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:

Current wording

Cost of sales for the third quarter of 2026 totaled $65.6 million, an increase of $0.4 million, or 0.6% (1.4% on a constant currency basis), compared to $65.2 million in the third 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 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.

Current wording

The increase in cost of sales was primarily due to an increase in the volume/mix of products sold of 2.2%, partially offset by decreases in production costs of 0.8% and fluctuations in foreign currency rates of 0.8% compared to the third quarter of 2025. The 2.2% change in volume/mix is primarily attributable to an increase in automation equipment sales, which drove a 4.3% increase in cost of sales. 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 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.

Current wording

Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the third quarter of 2026 were $25.7 million, a decrease of $3.9 million, or 13.2%, from $29.6 million in the third quarter of 2025. The decrease in SG&A expenses was primarily due to a $2.7 million decrease in professional service fees and a $0.9 million decrease in stock-based compensation expense for the third quarter of 2026 compared to the third quarter of 2025.

Previous wording

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 wording

Depreciation and Amortization Expense. Depreciation and amortization expense for the third quarter of 2026 was $8.8 million, a decrease of $0.4 million from $9.2 million in the third quarter of 2025. The decrease in depreciation and amortization expense was primarily due to a decrease in amortization of finance leases and lower patent amortization as certain assets became fully amortized for the third quarter of 2026 compared to the third quarter of 2025.

Previous 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.

Current wording

Other Operating Expense, Net. Other operating expense, net for the third quarter of 2026 was $1.8 million, an increase of $0.5 million from $1.3 million in the third quarter of 2025. The increase was primarily due to a $1.0 million loss on the sublease of equipment classified as finance leases, partially offset by a $0.5 million decrease in research and development expense for the third quarter of 2026 compared to the third quarter of 2025.

Previous 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.

Current wording

Foreign currency loss for the third quarter of 2026 was $0.3 million, a change of $0.1 million, from foreign currency loss of $0.2 million for the third quarter of 2025 due to the volatility in Euro exchange rates compared to USD.

Previous 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.

Current wording

Income tax benefit for the third quarter of 2026 was $1.8 million, or an effective tax rate of 20.0%. Income tax benefit was $4.2 million in the third quarter of 2025, or an effective tax rate of 28.1%. 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.

Previous 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.

Current wording

EBITDA and AEBITDA are non-GAAP measures. Refer to “Reconciliation of GAAP to Non-GAAP Measures.” EBITDA for the third quarter of 2026 was $15.7 million, an increase of $3.8 million, or 31.9%, compared to $11.9 million in the third quarter of 2025. AEBITDA for the third quarter of 2026 was $22.5 million, an increase of $1.1 million, or 5.1% (6.1% on a constant currency basis), compared to $21.4 million in the third quarter of 2025. AEBITDA for the third quarter of 2026 includes a non-cash reduction to net revenue from the provision for warrants of $1.2 million compared to $0.8 million for the third 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 second quarter of 2026 and the second 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 third quarter of 2026 and the third quarter of 2025, presented in millions of dollars:

Previous 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.

Current wording

Net revenue in North America for the third quarter of 2026 totaled $47.8 million compared to $44.7 million in the third quarter of 2025. The increase of $3.1 million, or 6.9%, for the third quarter of 2026 compared to the third quarter of 2025 was attributable to increases in cushioning, automation equipment sales, and wrapping, partially offset by a decrease in void-fill, and includes a non-cash reduction of $0.8 million in void-fill and $0.4 million in automation net revenue from the provision for warrants. Net revenue in North America for the third quarter of 2025 includes a non-cash reduction of $0.7 million to void-fill from the provision for warrants. The increase in net revenue for North America can be quantified by a 3.3% increase in the price/mix of our paper consumable products, a 2.9% increase from automation equipment sales and a 1.8% increase in the volume of sales of our paper consumable products, partially offset by a 1.1% impact from the non-cash provision for warrants.

Previous wording

Net revenue in Europe/Asia for the six months ended June 30, 2026 totaled $118.0 million compared to net revenue of

Current wording

Net revenue in Europe/Asia for the third quarter of 2026 totaled $54.1 million compared to net revenue of $54.9 million in the third quarter of 2025. The decrease of $0.8 million, or 1.5% (0.5% increase on a constant currency basis), for the third quarter of 2026 compared to the third quarter of 2025 was attributable to a decrease in sales in cushioning, wrapping and void-fill, partially offset by an increase in automation equipment sales. The decrease in net revenue for Europe/Asia can be quantified primarily by a 4.9% decrease in volume of sales of our paper consumable products and a 2.0% decrease due to foreign currency fluctuations, partially offset by a 2.7% increase from automation equipment sales and a 2.5% increase in the price/mix of our paper consumable products.

Previous 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.

Current wording

North America and Europe/Asia segment EBITDA includes intersegment royalty charges from North America to Europe/Asia for use of trademarks of $4.5 million and $3.8 million for the three months ended September 30, 2026 and 2025, respectively, which eliminates on a consolidated basis.

Previous wording

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 wording

Segment EBITDA for North America was $8.5 million for the third quarter of 2026 compared to $3.0 million in the third quarter of 2025, an increase of $5.5 million, or 183.3%. The increase was primarily due to the increase in net revenue as described above and a $2.7 million decrease in professional services fees in the third quarter of 2026.

Previous wording

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 wording

The following tables set forth our consolidated results of operations for the nine months ended September 30, 2026 and 2025, 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, 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 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, 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.

Previous 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:

Current wording

The following table and the discussion that follows compares our net revenue by product line for the nine months ended September 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

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 wording

Net revenue for the nine months ended September 30, 2026 was $308.3 million compared to $283.1 million for the nine months ended September 30, 2025, an increase of $25.2 million or 8.9% (6.6% on a constant currency basis) and includes a non-cash reduction of $2.7 million to void-fill and $1.9 million to automation net revenue from the provision for warrants. Net revenue for the nine months ended September 30, 2025 includes a non-cash reduction of $2.8 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 slight decrease in cushioning. Automation net revenue increased $19.3 million, or 76.3%, to $44.6 million from $25.3 million; void-fill increased $4.1 million, or 3.3%, to $128.9 million from $124.8 million; wrapping increased $2.0 million, or 7.9%, to $27.2 million from $25.2 million; and cushioning decreased $0.2 million, or 0.2%, to $107.6 million from $107.8 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

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 wording

The increase in net revenue for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 is quantified by a 6.4% increase in automation equipment sales, a 2.3% increase from foreign currency fluctuations, a 0.6% increase in the price/mix of our paper consumable products, and a 0.2% increase in the volume of sales of our paper consumable products, partially offset by a 0.6% reduction from an increase in the non-cash provision for warrants.

Previous wording

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 wording

Cost of sales for the nine months ended September 30, 2026 totaled $202.6 million, an increase of $13.7 million, or 7.3% (5.2% on a constant currency basis), compared to $188.9 million in the nine months ended September 30, 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 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 wording

The increase in cost of sales was primarily due to an increase in the volume/mix of products sold of 7.1% and fluctuations in foreign currency rates of 2.1%, partially offset by a decrease in production costs of 1.9% compared to the nine months ended September 30, 2025. The 7.1% change in volume/mix is primarily attributable to an increase in automation equipment sales, which drove a 6.9% increase in cost of sales. 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 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.

Current wording

Selling, General, and Administrative (“SG&A”) Expenses. SG&A expenses for the nine months ended September 30, 2026 were $82.5 million, a decrease of $4.8 million, or 5.5%, from $87.3 million in the nine months ended September 30, 2025. The net change in SG&A expenses includes a $3.0 million decrease in professional service fees, a $2.5 million decrease in stock-based compensation expense, and a $0.7 million decrease in facility costs, partially offset by a $1.0 million increase in compensation expense and a $0.9 million increase in travel expenses. These changes are inclusive of a $1.5 million unfavorable impact from foreign currency fluctuations.

Previous wording

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 wording

Depreciation and Amortization Expense. Depreciation and amortization expense for the nine months ended September 30, 2026 was $26.4 million, a decrease of $0.6 million from $27.0 million in the nine months ended September 30, 2025. The decrease in depreciation and amortization expense was primarily due to a decrease in amortization of finance leases for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

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 wording

Other Operating Expense, Net. Other operating expense, net for the nine months ended September 30, 2026 was $3.0 million, a decrease of $0.3 million from $3.3 million in the nine months ended September 30, 2025. The decrease was primarily due to a $0.6 million decrease in research and development expense, partially offset by a $0.5 million loss on the sublease of equipment classified as finance leases for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025.

Previous wording

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 wording

Interest expense for the nine months ended September 30, 2026 was $25.4 million, a decrease of $0.3 million, or 1.2%, from $25.7 million in the nine months ended September 30, 2025. The decrease was primarily due to the decrease in interest expense associated with our Term Facility for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

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 wording

Foreign currency loss for the nine months ended September 30, 2026 was $1.8 million, a change of $6.8 million from foreign currency gain of $5.0 million in the nine months ended September 30, 2025 due to the volatility in Euro exchange rates compared to USD.

Previous wording

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 wording

Other non-operating expense, net for the nine months ended September 30, 2026 was $0.1 million compared to other non-operating income, net of $5.9 million for the nine months ended September 30, 2025. Other non-operating income, net for the nine months ended September 30, 2025 included a $5.8 million unrealized gain on our strategic investment in Pickle that did not recur for the nine months ended September 30, 2026.

Previous wording

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 wording

Income tax benefit for the nine months ended September 30, 2026 was $8.2 million, or an effective tax rate of 24.5%. Income tax benefit was $9.4 million in the nine months ended September 30, 2025, or an effective tax rate of 24.5%. The effective tax rate is consistent with the combined federal and state statutory rates.

Previous wording

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 wording

EBITDA and AEBITDA are non-GAAP measures. Refer to “Reconciliation of GAAP to Non-GAAP Measures.” EBITDA for the nine months ended September 30, 2026 was $40.5 million, an increase of $3.3 million, or 8.9%, compared to $37.2 million in the nine months ended September 30, 2025. AEBITDA for the nine months ended September 30, 2026 was $60.5 million, an increase of $5.3 million, or 9.6% (6.0% on a constant currency basis), compared to $55.2 million in the nine months ended September 30, 2025. AEBITDA for the nine months ended September 30, 2026 includes a non-cash reduction to net revenue from the provision for warrants of $4.6 million compared to $2.8 million for the nine months ended September 30, 2025.

Previous wording

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 wording

The following tables set forth our net revenue by segment for the nine months ended September 30, 2026 and the nine months ended September 30, 2025, presented in millions of dollars:

Previous wording

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 wording

Net revenue in North America for the nine months ended September 30, 2026 totaled $136.2 million compared to $129.6 million for the nine months ended September 30, 2025. The increase of $6.6 million, or 5.1%, was attributable to increases in automation equipment sales, wrapping, and void-fill, partially offset by a decrease in cushioning, and includes a non-cash reduction of $2.5 million in void-fill and $1.9 million in automation net revenue from the provision for warrants. Net revenue in North America for the nine months ended September 30, 2025 includes a non-cash reduction of $2.6 million in void-fill from the provision for warrants. The increase in net revenue for North America can be quantified by a 5.5% increase from automation equipment sales and a 1.8% increase in the price/mix of our paper consumable products, partially offset by a 0.8% decrease in volume of sales of our paper consumable products and a 1.4% reduction from an increase in the non-cash provision for warrants.

Previous 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.

Current wording

Net revenue in Europe/Asia for the nine months ended September 30, 2026 totaled $172.1 million compared to net revenue of $153.5 million for the nine months ended September 30, 2025. The increase of $18.6 million, or 12.1% (7.9% on a constant currency basis), was attributable to increases in automation equipment sales, void-fill, wrapping, and cushioning sales. The increase in cushioning was primarily driven by favorable foreign currency fluctuations. The increase in net revenue for Europe/Asia can be quantified primarily by a 7.2% increase from automation equipment sales, a 4.2% increase due to foreign currency fluctuations, and a 0.8% increase in the volume of sales of our paper consumable products.

Previous wording

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 wording

North America and Europe/Asia segment EBITDA includes intersegment royalty charges from North America to Europe/Asia for use of trademarks of $14.4 million and $16.6 million for the nine months ended September 30, 2026 and 2025, respectively, which eliminates on a consolidated basis.

Previous wording

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 wording

Segment EBITDA for North America was $21.9 million for the nine months ended September 30, 2026 compared to $11.1 million in the nine months ended September 30, 2025, an increase of $10.8 million, or 97.3%. The increase was primarily due to an increase in net revenue as described above, a change in foreign currency of $10.5 million from a loss of $6.6 million in the nine months ended September 30, 2025 to a gain of $3.9 million for the nine months ended September 30, 2026, and a decrease in professional services fees of $3.2 million. The increase was partially offset by a $2.2 million decrease in intersegment royalty charges and a $5.8 million unrealized gain on our strategic investment in Pickle during the nine months ended September 30, 2025 that did not recur for the nine months ended September 30, 2026.