Ranpak Holdings 2025 Q2 Earnings Misses Targets as Net Income Plummets 236%

Ranpak Holdings (PACK) reported its fiscal 2025 Q2 earnings on August 5, 2025, showing a 6.8% revenue increase year-over-year, but a significant drop in profitability. The company swung to a net loss of $7.5 million, missing expectations and marking a 236.4% decline from the $5.5 million net income in the prior-year period. Management revised 2025 guidance, maintaining a cautious outlook amid global economic uncertainty and warrant-related expenses.

Revenue
Ranpak reported total revenue of $92.30 million in Q2 2025, representing a 6.8% year-over-year increase. This growth was driven by a $77.80 million contribution from net product revenue and an additional $14.50 million from machine lease revenue. The combined performance reflects continued demand in core markets and the ongoing importance of both product and leasing models to the company’s revenue mix.

Earnings/Net Income
Ranpak’s earnings performance declined sharply, with a loss of $0.09 per share in Q2 2025 compared to a profit of $0.07 per share in Q2 2024, reflecting a 228.6% negative change. The company recorded a net loss of $7.5 million, a deterioration of 236.4% from a $5.5 million net income the previous year, underscoring the challenges in managing costs and margins.

Price Action
Following the earnings report, the stock price of Ranpak experienced strong short-term performance, surging 16.85% on the latest trading day, 9.02% over the week, and 13.71% month-to-date, indicating a positive market reaction despite the earnings miss.

Post-Earnings Price Action Review
The post-earnings investment strategy of buying shares after a revenue increase quarter-over-quarter and holding for 30 days has shown poor results over the past three years. The strategy returned -38.12%, significantly underperforming the 0.00% benchmark. With a compound annual growth rate of -15.27% and a maximum drawdown of 69.79%, the approach highlights the high risk and potential for substantial losses in the stock.

CEO Commentary
CEO Omar Asali emphasized eight consecutive quarters of volume growth, particularly in the North American Enterprise segment, where protective and automation solutions have driven strong customer relationships. Global paper volumes rose 5.2%, and net revenue grew 6.8% year-over-year. Despite challenges in the exclusive distribution channel, the automation backlog remains robust, with expected 2025 net revenue of $40–$45 million. Cost-cutting and pricing improvements are expected to drive a 3–5 gross margin point improvement in North America in the second half of the year.

Guidance
Ranpak updated its 2025 guidance, forecasting second-half net revenue of $216–$230 million and AEBITDA of $44.5–$54.5 million, based on a 1 Euro to 1.15 USD exchange rate. Including the warrant expense, total 2025 net revenue is projected at $406.5 million and AEBITDA at $83.3 million. The guidance also notes a non-cash reduction of $4–$6 million in 2025 due to warrant expense recognition.

Additional News
On August 6, 2025, the earnings call transcript for Ranpak Holdings Q2 2025 was released with the note: “Enable JavaScript and cookies to continue.” No additional earnings-related metrics or financial figures were provided in the transcript, but the call was noted for the CEO’s emphasis on strategic growth areas and margin improvement. No significant M&A activity, C-level changes, or dividend announcements were reported in the days following the earnings release, suggesting the focus remains on operational execution and market expansion.