Ranpak (PACK) investor relations material

Executive summary

• Net revenue for Q1 2026 rose 11.0% year-over-year to $101.2 million, driven by automation equipment sales, large enterprise accounts, and favorable foreign currency impacts, with EMEA outperforming expectations and North America facing tough comps.

• Net loss narrowed to $10.2 million from $10.9 million in Q1 2025, reflecting improved gross profit and lower other operating expenses.

• Adjusted EBITDA increased 9.2% year-over-year to $18.9 million, remaining flat on a constant currency basis, with EBITDA up 20.6%.

• Automation net revenue surged 112.7% to $13.4 million, with strong EMEA growth and continued large enterprise e-commerce activity in North America.

• Margin enhancement initiatives and disciplined cost management are supporting improved profitability.

Financial highlights

• Gross profit increased 12.9% year-over-year to $34.9 million, with gross margin at 34.5%.

• Net product revenue was $81.8 million, and machine lease revenue was $19.4 million for Q1 2026.

• Cost of product sales was $59.5 million, and cost of leased machines was $6.8 million.

• Basic and diluted loss per share was $0.12, compared to $0.13 in Q1 2025.

• Cash balance at quarter-end was $48.5 million, with no borrowings on a $50 million revolver.

Outlook and guidance

• Management remains confident in the growth trajectory, citing strong automation momentum, deepening relationships with major customers, and a focus on margin initiatives and disciplined cost management.

• Cash balance expected to increase through the remainder of 2026.

• Margin enhancement and cost controls are expected to drive further improvement, with gross margin targeted to improve by 200 basis points for the year.

• Free cash flow guidance remains at approximately $15 million prior to debt paydown.