Ranpak Holdings Corp (NYSE:PACK) Reports Q3 2025 Revenue Miss and Wider-Than-Expected Loss

Ranpak Holdings Corp (NYSE:PACK) reported third-quarter financial results that presented a mixed picture for investors, with revenue growth and strategic progress weighed down by a wider-than-expected loss, triggering a negative market reaction in pre-market trading.

Third Quarter 2025 Financial Performance vs. Estimates

Ranpak posted Q3 2025 net revenue of $99.6 million, falling short of the analyst consensus estimate of $101.9 million. This represents an 8.0% year-over-year increase, or 4.4% on a constant currency basis.

The company reported a net loss of $10.4 million, or a loss of $0.12 per share. This significantly missed the analyst expectation for a non-GAAP loss of $0.087 per share.

Key financial results versus estimates include:

• Revenue: $99.6 million reported vs. $101.9 million estimated (Miss)
• EPS (Non-GAAP): -$0.12 reported vs. -$0.087 estimated (Miss)

The market's immediate response was negative, with the stock down approximately 7.7% in pre-market trading following the earnings release.

Operational Highlights and Business Segment Performance

The earnings report was not without its bright spots, particularly regarding the company's strategic initiatives. Chairman and CEO Omar Asali characterized the quarter as a "major stepping stone" and highlighted a transformative partnership with Walmart. The agreement involves 22.5 million warrants for Walmart, which vest based on spending targets that could imply up to $700 million in total spend over ten years.

A key driver of growth was the Automation segment, which saw net revenue surge 63.0% year-over-year to $11.9 million. The company noted that Automation remains on track to achieve $40–$45 million in net revenue for the full year 2025. In contrast, the core Protective Packaging segment saw a more modest revenue increase of 3.3%, with global volumes experiencing a slight contraction.

Profitability metrics showed improvement sequentially, with gross margins expanding to 34.5% from 31.1% in the second quarter. Adjusted EBITDA grew 8.1% to $21.4 million, though this figure was impacted by a $0.8 million non-cash warrant adjustment.

Balance Sheet and Forward Outlook

Ranpak maintained a solid liquidity position, ending the quarter with $49.9 million in cash and no borrowings on its $50 million revolving credit facility. The company expressed confidence in its margin trajectory and expects to finish 2025 on a high note.

While the press release did not provide a specific quantitative financial outlook for the next quarter or full year beyond the Automation revenue target, the company's commentary emphasized building momentum, particularly in North America, and a foundation for sustainable growth.

Conclusion

Ranpak's third-quarter results highlight the company's ongoing transition. Strong growth in the high-potential Automation business and a landmark partnership with Walmart signal future potential. However, a miss on both top and bottom-line estimates, coupled with a net loss, underscores the near-term challenges and costs associated with this strategic shift. The market's negative reaction reflects investor concern over the company's current profitability amidst its growth investments.

For a detailed look at historical earnings and future analyst estimates for Ranpak Holdings Corp, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions involve risk, and readers should conduct their own research before making any investment decisions.