Gross margins have experienced structural compression, falling from 37.9% in 2024Q1 to 25.6% in 2026Q1, as the company struggles to achieve the scale necessary to offset fixed overhead costs.
| Sales/Revenue | 405M | 395M | 368.9M | 336.3M | 326.5M | 383.9M | 298.2M | 269.5M | 267.9M | 244.1M |
| Revenue Growth % | 8.06% | 7.08% | 9.69% | 3% | -14.95% | 28.74% | 10.65% | 0.6% | 9.75% | - |
| Cost of Goods Sold | 306.3M | 300.3M | 229.1M | 213M | 226.9M | 235M | 175.6M | 158.6M | 196.5M | 131.7M |
| COGS % of Revenue | - | 76.03% | 62.1% | 63.34% | 69.49% | 61.21% | 58.89% | 58.85% | 73.35% | 53.95% |
| Gross Profit | 98.7M | 94.7M | 139.8M | 123.3M | 99.6M | 148.9M | 122.6M | 110.9M | 71.4M | 112.4M |
| Gross Margin % | 24.37% | 23.97% | 37.9% | 36.66% | 30.51% | 38.79% | 41.11% | 41.15% | 26.65% | 46.05% |
| Gross Profit Growth % | - | -32.26% | 13.38% | 23.8% | -33.11% | 21.45% | 10.55% | 55.32% | -36.48% | - |
| Operating Expenses | 118.8M | 119M | 152.6M | 130.8M | 142.1M | 136.7M | 110.9M | 108.7M | 3.73M | 80.8M |
| OpEx % of Revenue | - | 30.13% | 41.37% | 38.89% | 43.52% | 35.61% | 37.19% | 40.33% | 1.39% | 33.1% |
| Selling, General & Admin | 114.8M | 114.5M | 102M | 91.8M | 84.4M | 98.3M | 72.5M | 61.5M | 53.2M | 46.3M |
| SG&A % of Revenue | - | 28.99% | 27.65% | 27.3% | 25.85% | 25.61% | 24.31% | 22.82% | 19.86% | 18.97% |
| Research & Development | 0 | 4.1M | 4.4M | 3.7M | 3.6M | 1.7M | 2.3M | 2.1M | 2.4M | 0 |
| R&D % of Revenue | - | 1.04% | 1.19% | 1.1% | 1.1% | 0.44% | 0.77% | 0.78% | 0.9% | - |
| Other Operating Expenses | 3.5M | 400K | 46.2M | 35.3M | 54.1M | 36.7M | 36.1M | 45.1M | -1.5M | 34.5M |
| Operating Income | -20.1M | -24.3M | -12.8M | -7.5M | -42.5M | 12.2M | 11.7M | 2.2M | -3.73M | 31.2M |
| Operating Margin % | -4.96% | -6.15% | -3.47% | -2.23% | -13.02% | 3.18% | 3.92% | 0.82% | -1.39% | 12.78% |
| Operating Income Growth % | - | -89.84% | -70.67% | 82.35% | -448.36% | 4.27% | 431.82% | 158.95% | -111.96% | - |
| EBITDA | 48.3M | 42.4M | 52.5M | 62.1M | 26.5M | 85.8M | 74.4M | 60.5M | 60.77M | 92.3M |
| EBITDA Margin % | 11.93% | 10.73% | 14.23% | 18.47% | 8.12% | 22.35% | 24.95% | 22.45% | 22.68% | 37.81% |
| EBITDA Growth % | 5.92% | -19.24% | -15.46% | 134.34% | -69.11% | 15.32% | 22.98% | -0.44% | -34.16% | - |
| D&A (Non-Cash Add-back) | 68.4M | 66.7M | 65.3M | 69.6M | 69M | 73.6M | 62.7M | 58.3M | 64.5M | 61.1M |
| EBIT | -20.1M | -24.3M | -1.7M | -14.2M | -20.3M | 14M | 16.6M | 9.9M | 16.1M | 17M |
| Net Interest Income | -31.6M | -31.3M | -28.6M | -24.3M | -20.7M | -22.4M | -30.2M | -47.5M | -30.9M | -30.7M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.12M | 0 |
| Interest Expense | 31.6M | 31.3M | 28.6M | 24.3M | 20.7M | 22.4M | 30.2M | 47.5M | 36.02M | 30.7M |
| Other Income/Expense | -27M | -23.2M | -10.9M | -23.8M | -14.2M | -17.1M | -36.3M | -46M | -26.7M | -44.9M |
| Pretax Income | -47.1M | -47.5M | -23.7M | -31.3M | -56.7M | -4.9M | -24.6M | -43.8M | 1.39M | -13.7M |
| Pretax Margin % | -11.63% | -12.03% | -6.42% | -9.31% | -17.37% | -1.28% | -8.25% | -16.25% | 0.52% | -5.61% |
| Income Tax | -9.5M | -9.2M | -2.2M | -4.2M | -15.3M | -2.1M | -1.2M | -7.6M | -5.12M | -41.4M |
| Effective Tax Rate % | 20.17% | 19.37% | 9.28% | 13.42% | 26.98% | 42.86% | 4.88% | 17.35% | -369.1% | 302.19% |
| Net Income | -37.6M | -38.3M | -21.5M | -27.1M | -41.4M | -2.8M | -23.4M | -36.2M | 1.39M | 27.7M |
| Net Margin % | -9.28% | -9.7% | -5.83% | -8.06% | -12.68% | -0.73% | -7.85% | -13.43% | 0.52% | 11.35% |
| Net Income Growth % | -54.73% | -78.14% | 20.66% | 34.54% | -1378.57% | 88.03% | 35.36% | -2710.42% | -94.99% | - |
| Net Income (Continuing) | -37.6M | -38.3M | -21.5M | -27.1M | -41.4M | -2.8M | -23.4M | -36.2M | -8.6M | 27.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.44 | -0.45 | -0.26 | -0.33 | -0.51 | -0.04 | -0.32 | -0.52 | 0.03 | 0.67 |
| EPS Growth % | -50.81% | -73.08% | 21.21% | 35.29% | -1332.58% | 88.88% | 38.46% | -1647.62% | -94.99% | - |
| EPS (Basic) | - | -0.45 | -0.26 | -0.33 | -0.51 | -0.04 | -0.32 | -0.52 | 0.03 | 0.67 |
| Diluted Shares Outstanding | 84.84M | 84.18M | 83.06M | 82.37M | 81.88M | 78.54M | 72.43M | 70.81M | 41.25M | 41.25M |
| Basic Shares Outstanding | 84.84M | 84.18M | 83.06M | 82.37M | 81.88M | 78.54M | 72.43M | 70.81M | 41.25M | 41.25M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Persistent Operating Margin Deficit
According to recent financial disclosures, Ranpak achieved 11.0% year-over-year revenue growth in 2026Q1, suggesting a potential stabilization in demand, though this follows a period of inconsistent top-line performance that reflects the company's sensitivity to broader e-commerce parcel volumes and European industrial activity levels.
The recent uptick in revenue growth appears to indicate that the company's installed base strategy is beginning to capture incremental volume, yet the volatility in quarterly growth rates warrants caution. Investors should monitor whether this growth is driven by sustainable recurring consumable demand or temporary inventory restocking cycles within the distributor network.
Based on reported figures, gross margins have contracted significantly from 37.9% in 2024Q1 to 25.6% in 2026Q1, highlighting a challenging environment where the company struggles to pass through rising fiber input costs to its fragmented distributor base while maintaining competitive pricing in the protective packaging market.
The sharp decline in gross profitability suggests that the company's pricing power may be more limited than previously anticipated, especially when compared to more diversified peers. This margin erosion implies that the current cost structure is highly vulnerable to commodity price spikes, necessitating a more disciplined approach to supply chain management.
As indicated by the income statement, Ranpak continues to report negative operating margins, with 2026Q1 operating income at -$3.8M, suggesting that the company has yet to achieve the necessary scale to offset its fixed overhead and the depreciation costs associated with its proprietary converter fleet.
The failure of operating income to scale alongside revenue growth indicates a lack of operating leverage, which may be exacerbated by the capital-intensive nature of placing equipment at customer sites. This trend suggests that the company's current business model requires a higher revenue threshold to reach break-even than is currently being generated.
Analysis of the income statement reveals that stock-based compensation remains a consistent expense, totaling $1.3M in 2026Q1, which further suppresses net income and complicates the assessment of the company's underlying operational performance during this period of persistent bottom-line losses.
The recurring nature of stock-based compensation, combined with consistent net losses, suggests that shareholders are experiencing ongoing dilution without the benefit of positive earnings growth. This warrants further investigation into whether management's compensation structure is sufficiently aligned with the achievement of sustainable profitability and cash flow generation.
Quick answers to the most common questions about buying PACK stock.
For fiscal year 2025, Ranpak Holdings Corp. (PACK) reported total revenue of $395.0M. This represents a 61.8% increase compared to $244.1M in 2017.
Ranpak Holdings Corp. (PACK) reported a net loss of $38.3M for the fiscal year ending 2025.
Ranpak Holdings Corp. (PACK) reported an operating income of $-24.3M, resulting in an operating profit margin of -6.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Ranpak Holdings Corp. (PACK) generated $94.7M in gross profit for the year, representing a gross profit margin of 24.0%. This demonstrates the company's core pricing power and production efficiency.