Ranpak's Third-Quarter Revenue Growth Cools After a Strong Second Quarter

The Tip Desk · October 29, 2026 · 3 min read

Net revenue rose 2.3% to $101.9 million as automation equipment sales, wrapping and paper price-or-mix contributed to growth while paper-consumable volume fell 2.5%.

Ranpak Holdings Corp. (PACK), a provider of environmentally sustainable product-protection and end-of-line automation systems, reported third-quarter net revenue of $101.9 million, up 2.3% from $99.6 million a year earlier and 3.4% on a constant-currency basis.

That year-over-year pace slowed from 14.0% in the second quarter. Sequential revenue was $101.9 million, down from $105.2 million in the second quarter.

The company said the 2.3% increase reflected a 3.5% price-or-mix gain in paper consumables and a 2.8% rise in automation equipment sales, offset by a 2.5% decline in paper-consumable volume, a 1.1% foreign-currency drag, and a 0.4% reduction from a larger non-cash warrant provision.

Automation net revenue was $14.6 million, up 22.7% from $11.9 million. Wrapping rose 8.2% to $9.2 million. Cushioning was $35.9 million. Void-fill fell 2.8% to $42.2 million.

Chairman and Chief Executive Officer Omar Asali said Automation delivered another strong quarter with revenue growth of 26.9% year over year on a constant-currency basis excluding warrants, bringing year-to-date Automation results up 79.4% on that basis. He said the company remains on track to achieve approximately $60 million in Automation revenue for the year and is scaling toward a level that would let it absorb overhead and become profitable.

In Protective Packaging Solutions, Asali said the North America distribution channel returned to growth as the company lapped challenging first-half comparisons, producing 1.8% year-over-year volume growth overall in the region. Europe/Asia volumes were 4.9% lower year over year after exceeding expectations in the second quarter, which the company attributed to some channel destocking and a more cautious environment. The company said it expects to return to growth in Europe/Asia in the fourth quarter.

Gross margin expanded 110 basis points year over year to 35.6% and increased 280 basis points sequentially from the second quarter, which the company said was driven by improvement in North America. Gross profit was $36.3 million.

Adjusted EBITDA was $22.5 million, up 5.1% from $21.4 million a year earlier and 6.1% on a constant-currency basis. Excluding warrants, AEBITDA increased 7.7% on a constant-currency basis. Sequential AEBITDA rose from $19.1 million in the second quarter. The year-over-year AEBITDA rate slowed from 15.8% in the second quarter.

Net loss narrowed to $7.2 million, or $0.08 a share, from a $10.4 million loss, or $0.12 a share, in the year-ago quarter. Loss from operations was $5.7 million in the third quarter of 2025. Selling, general and administrative expenses were $25.7 million. Interest expense was $8.7 million.

PPS system placement decreased 1.9% year over year to approximately 142.8 thousand machines as of September 30, 2026, after a 2.3% year-over-year decline to 141.7 thousand machines at June 30.

Ranpak ended the quarter with $53.4 million in cash, no borrowings on its $50.0 million revolving credit facility, and $402.8 million outstanding under its first-lien term facility. Net availability under the revolver was $47.1 million.

Asali said volatility has stepped up markedly since the end of the second quarter, but that the company is executing on the things in its control and expects to achieve its prior guidance for the year.