Ranpak Q2 2026 Earnings Report

Ranpak EPS Results

• Actual EPS: -$0.09
• Consensus EPS: -$0.08
• Beat/Miss: Missed by -$0.02
• One Year Ago EPS: N/A

Ranpak Revenue Results

• Actual Revenue: $105.20 million
• Expected Revenue: $100.94 million
• Beat/Miss: Beat by +$4.26 million
• YoY Revenue Growth: N/A

Ranpak Announcement Details

• Quarter: Q2 2026
• Date: 7/30/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, July 30, 2026
• Conference Call Time: 8:30AM ET

Ranpak (NYSE:PACK). (NYSE: PACK) is a leading provider of sustainable, paper-based packaging solutions designed to protect products during transit. The company’s core business centers on the design, manufacture and distribution of automated systems and consumable paper packaging materials that offer an eco-friendly alternative to plastic-based void-fill and protective packaging. Ranpak’s solutions include crumpled paper fillers, paper wrap systems and tailored automation equipment that serve diverse end markets such as e-commerce, industrial parts, electronics and retail.

Founded in 1972 and headquartered in Concord Township, Ohio, Ranpak has built a global presence by combining innovation in paper converting technology with a commitment to sustainability. Its product portfolio features automated packaging machines that integrate seamlessly with warehouse operations, reducing labor costs, material waste and environmental impact. By leveraging renewable, recyclable materials, the company helps customers meet increasing regulatory and consumer demands for greener packaging practices.

Ranpak serves customers across North America, Europe, Asia Pacific and Latin America through a network of sales offices, manufacturing facilities and distribution centers. The company’s automated systems are backed by a team of packaging engineers and service specialists who provide customized consulting, installation and ongoing technical support. Underpinning its global expansion strategy is a leadership team of executives with extensive experience in industrial manufacturing, logistics and sustainability initiatives, positioning Ranpak to capture growth opportunities in fast-growing e-commerce and supply-chain markets.

Ranpak Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Automation revenue surged 139% year over year on a constant-currency basis, supported by expansion with major customers such as Walmart and Medline and new integrator partnerships. Management said most 2026 revenue is contracted and reaffirmed its goal of approximately $60 million in automation revenue this year.
• Positive Sentiment: Consolidated revenue rose 12.2% on a constant-currency basis, while adjusted EBITDA increased 13.9%; gross margin improved 150 basis points year over year. Management expects further margin gains in the second half from pricing, efficiency initiatives and Lean/Six Sigma programs.
• Positive Sentiment: Automation is expected to reach EBITDA breakeven by year-end and become an EBITDA-positive contributor in 2027. The company also sees strong growth potential in sustainable cold-chain products, including Climaliner Plus, with relatively low ongoing capital requirements.
• Neutral Sentiment: PPS volumes increased 2.4%, with Europe outperforming and North American enterprise demand remaining strong, but the distribution channel continued to face difficult comparisons. Ranpak expects distribution activity to improve in the second half as comparisons normalize and new products gain traction.
• Negative Sentiment: Management described the near-term environment as uncertain, citing volatile energy and paper costs, geopolitical risks and cautious customers. The company plans to prune lower-margin PPS and warrant-related business, which should improve profitability but may constrain some lower-quality revenue growth.

Presentation

[Operator]

Hello, everyone. Thank you for joining us, and welcome to the Ranpak Holdings second quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Sara Horvath, Chief Legal and HR Officer. Please go ahead.

[Sara Horvath, Chief Legal and HR Officer at Ranpak Holdings]

Thank you. Good morning, everyone. Before we begin, I'd like to remind you that we will discuss forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements as a result of various factors, including those discussed in our press release and the risk factors identified in our Form 10-K and our other filings filed with the SEC. Some of the statements in responses to your questions in this conference call may include forward-looking statements that are subject to future events and uncertainties that could cause our actual results to differ materially from these statements. Ranpak assumes no obligation and does not intend to update any such forward-looking statements. You should not place undue reliance on these forward-looking statements, all of which speak to the company only as of today.

[Sara Horvath, Chief Legal and HR Officer at Ranpak Holdings]

The earnings release we issued this morning and the presentation for today's call are posted on the investor relations section of our website. A copy of the release has been included in a Form 8-K that we submitted to the SEC before this call. We will also make a replay of this conference call available via webcast on the company website. For financial information that is presented on a non-GAAP basis, we have included reconciliations to the comparable GAAP information. Please refer to the table and slide presentation accompanying today's earnings release. Lastly, we'll be filing our 10-Q with the SEC for the period ending June 30, 2026. The 10-Q will be available through the SEC or on the investor relations section of our website. With me today, I have Omar Asali, our Chairman and CEO, and Bill Drew, our CFO.

[Sara Horvath, Chief Legal and HR Officer at Ranpak Holdings]

Omar will summarize our second quarter results and market conditions. Bill will provide additional detail on the financial results before we open up the call for questions. With that, I'll turn the call over to Omar.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Thank you, Sara. Good morning, everyone, and thank you for joining us today. We are pleased with our second quarter results and how we have started the year as we continue to effectively navigate a dynamic environment. Our investments in automation are paying off as we experience an exceptionally strong quarter in both North America and Europe. Automation delivered another quarter of strong growth, with revenue increasing 139% year-over-year on a constant currency basis and excluding the impact of warrants. The momentum has continued to build across North America and Europe. In North America, we continue to experience strong activity with Walmart and Medline and are expanding the breadth of customers at a solid clip to start the year. In Europe, we are more established in that market as our automation product line began there and continue to experience broad-based activity.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

We believe automation will be a strong growth engine for us for years to come. PPS volumes increased 2.4% year-over-year, marking growth in 11 out of the last 12 quarters. Europe was the outperformer again, as anticipated weakness following the start of the war has not immediately materialized to the extent we were concerned about. The trends we experienced in North America in the first quarter, where large enterprise outperformed while the distribution channel faced a challenging comparison, persisted into Q2, but did improve somewhat in the latter part of the quarter. Overall, we continue to expect to see improved performance in the distribution channel in the second half as the comparison normalizes and our new product initiatives in cushioning, void fill, and wrapping take hold.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

We're getting great receptivity to our new products such as Guardian 24, which has a smaller footprint relative to other units and provides meaningful cost savings versus foam. Now, more onto our results. Consolidated net revenue increased 12.2% on a constant currency basis for the quarter, or 12.6% excluding the impact of warrants, driven by an outstanding growth in automation equipment sales on a constant currency basis. We also benefited from currency tailwinds in the quarter, which added 1.8 percentage points to top-line growth on a reported basis in the quarter, bringing reported top-line growth to 14% for the quarter and 12.5% on a year-to-date basis. Adjusted EBITDA increased $2.6 million to $19.1 million on a reported basis and was up 13.9% in constant currency terms.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Excluding the impact of warrants, adjusted EBITDA increased 15.8% on a constant currency basis and roughly in line with growth in sales and gross profit ex depreciation on a constant currency basis. Now moving on to the market environment and how Ranpak is positioned. The macro backdrop through the second quarter was noisy to say the least. We saw oil prices hit multi-year highs in April and then fall back, consumer confidence plummet and then recover, and geopolitical tensions that started to fade have now heightened once again. Against that volatility, the quarter ended in a better place than it started. Several months in, demand seems generally okay, but we see that customers remain understandably nervous about the impact higher oil and gas prices will have on input costs and the consumer and are therefore being conservative and focused on cost reduction.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

The consumer at the lower end of the K-shaped economy is stretched as gas and energy prices remain elevated and other inflationary pressures for consumer goods persist. Recent improvement in consumer confidence is encouraging, we would like to see it stabilize and also see it flow through to more durable sectors like housing and industrial activity before getting really bullish. In the near term, we are focused on driving our value and sustainability proposition. We're getting good traction with our cushioning offerings versus foam in place, and would expect that product to inflect soon. In North America, the paper market has gotten somewhat tighter for the second half as producers try to push price increases. From a competitive standpoint, we believe we remain well-positioned against plastic and resin, where we saw meaningful price increases flow through in the second quarter.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

We continue to be aggressive in pushing the sales team to accelerate the plastic-to-paper transition, as this is a dynamic we have not seen in North America in years. In Europe, Dutch natural gas pricing has been volatile since the start of the conflict, moving from more than EUR 60 per megawatt-hour at the end of Q1 back down to EUR 40, and now back in the mid-50s. Paper producers in Europe have been passing on price since the beginning of Q2, and we, in turn, took steps to protect our margins through a temporary surcharge. We continue to be transparent with our customers, and when conditions normalize, we will remove the surcharge.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

From a commercial perspective in Europe, we continue to emphasize the advantages we see for paper versus plastic, as resin costs and availability in the region are experiencing greater pressures than what we are currently seeing flow through in the paper markets. Conditions seem to be changing daily, overall, we believe they remain manageable. Just as we are doing internally, companies everywhere are extremely focused on costs to minimize inflationary impact. We remain disciplined on our spend and focused on improving our margin profile. We also see great pockets of opportunity that we are attacking with vigor, which we believe will be the bedrock for growth in years to come. The near term is somewhat uncertain, I remain very excited by Ranpak's offerings and positioning in the marketplace. With that, here is Bill with more info on the quarter.

[Bill Drew, CFO at Ranpak Holdings]

Thank you, Omar. In the deck, you'll see a summary of some of our key performance indicators. We'll also be filing our 10-Q, which provides further information on Ranpak's operating results. Overall net revenue for the company in the second quarter increased 12.2% year-over-year on a constant currency basis, or an increase of 12.6% excluding the impact of warrants, driven by accelerating growth in automation, volume strength in EMEA/APAC, and solid e-commerce growth in North America. Our North America revenues increased 8.5% in the quarter, or up 9.4% excluding the impact of warrants, driven by more than 250% growth in automation excluding warrants. PPS was a slight detractor as channel continued to face a tougher comp, and we lapped 14.8% volume growth in the prior year.

[Bill Drew, CFO at Ranpak Holdings]

In Europe and APAC, net revenue increased 15.4% on a constant currency basis, driven by 103.7% growth in automation and 4.2% volume growth in PPS, driven largely by strength in EMEA, which is highly encouraging. Gross profit increased 17.6% on a constant currency basis in the quarter and would have increased 18.6%, excluding the $1.7 million non-cash provision for warrants. We continue to be very focused on improving our margin profile through the back half of the year and are pleased to report 150 basis points improvement in gross margin versus Q2 of last year. In North America and PPS, where margins have been most pressured, we made continued progress through our efficiency gains and improved more than 250 basis points excluding depreciation versus the prior year.

[Bill Drew, CFO at Ranpak Holdings]

In EMEA, there was some pressure due to the timing of the implementation of the surcharge versus when our input costs increased. I feel good about what we are doing there. We continue to be pleased with the actions the teams are taking to take cost out and get more efficient. Just a note on the consolidated gross margin, automation being a larger contributor masks some of the progress we are making overall, given the lower margin profile of that product line. We do expect to continue to improve the margin of that product line as we scale. As we have shared before, automation is a sale of capital goods, so there is minimal CapEx required to expand our sales. We have invested in the facilities already and can service $100+ million in revenue in our existing footprint.

[Bill Drew, CFO at Ranpak Holdings]

Over time, as automation becomes a larger component of our revenue profile, we expect you will see CapEx as a percentage of sales in Ranpak decline. SG&A, excluding RSU expense, was down 3% on a constant currency basis versus the prior year. Consistent with what we have shared previously, we continue to prioritize cost discipline and margin expansion. Keeping spend lean and putting our G&A investments to work against our fixed overhead is where we are focused. Getting automation to break even on an adjusted EBITDA basis remains a key goal for us, and we believe we have line of sight to that as we approach $60 million in revenue this year. As Omar mentioned, adjusted EBITDA increased 13.9% year-over-year on a constant currency basis, or up 15.8% excluding the impact of warrants, as greater sales and gross profit flowed through with slightly lower G&A.

[Bill Drew, CFO at Ranpak Holdings]

The constant currency calculation is based on a rate of 1.1323, which was last year's average rate for the quarter. Beginning in Q3 of last year, there was considerable movement in the EUR. Next quarter, if rates stay as they are, we will have a slight rate headwind for comparisons as the average EUR/USD for Q3 2025 was 1.169 compared to 1.14 today. Please note that for the remainder of the year. Moving to the balance sheet and liquidity. We completed Q2 2026 with a strong liquidity position with a cash balance of $43.2 million and no drawings on our revolving credit facility, bringing our reported net leverage to 4.5x on an LTM basis, which is down 0.2 turns from Q1.

[Bill Drew, CFO at Ranpak Holdings]

On cash, the first half of the year is typically a draw on cash, and as previously shared, we made a $10 million follow-on investment in Pickle in Q1. We do expect cash to improve meaningfully in the back half of the year due to seasonality and our ability to free up some working capital. Our goal remains to achieve between two and a half to three turns, which we believe we can do over the next 24 months. Our CapEx for the quarter was $6.6 million, which is $3.2 million lower from prior year as we remain disciplined on spend but continue investing in further production capacity to drive growth in key products in upcoming years in areas like cold chain and related to the growth plans for our enterprise customers. With that, I'll turn it to Omar.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Thank you, Bill. Before I close, I want to touch on a few of our key initiatives and add some color on the rest of the year and into 2027. Over the past several years, our strategy has been to build a best-in-class portfolio of end-of-line automation solutions and to partner with others who play key roles in the flow of goods through the warehouse. We believe there is tremendous value in Ranpak having as many touchpoints in the warehouse as possible. It maximizes efficiency for our customers and gives us deep, sticky relationships with the most sophisticated customers in the world. From my perspective, there are few bigger areas of opportunity than removing bottlenecks in the warehouse. Between our own solutions and our partnerships with Pickle Robot and others, we now have the pieces in place across vision, physical AI, and end-of-line automation.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

That means we can help companies maximize throughput, reduce labor dependency, and improve accuracy at every step in the process. How are we different in the industry? We've been building an integrated intelligence ecosystem to address these warehouse pain points, and we and our partners have access to some of the largest physical data sets in the world. We believe that high-quality data cannot just be simulated in a model with the same impact and is exactly what you need to win with physical AI. We believe our ecosystem is genuinely unique and strategically advantaged in our pursuit of warehouse orchestration. In the public realm, I don't know of anyone else who's doing what we are doing. These are the steps that have positioned us so well with our large enterprise customers and increasingly separate us in the industry.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

We're very focused on partnering with our large enterprise customers at scale to deliver value-added and differentiated solutions while reducing our exposures to products we view as more commoditized and lower growth. The packaging needs of these players are changing rapidly, and Ranpak is pivoting to serve the opportunities we think can scale meaningfully and carry more value. Let me turn to a few specifics for the second half. In automation, we believe we are on track to hit the roughly $60 million in revenue this year. That was my single biggest goal coming into 2026. Automation has real momentum in both North America and Europe, and I believe it is a business that should command a higher multiple in the public markets relative to protective. In North America, we're pruning the PPS portfolio somewhat to improve the margin profile.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Given the warrant relationship, we are trying to be mindful of where and how we participate in the consumables area. In the second half, that means you could see us do less of the lower margin business where we have been providing warrants to a level we are more comfortable with. Our capacity additions and development work we have been doing sets us up well to be able to participate in size for the larger and more attractive initiatives that we believe will begin to scale in 2027 and help us achieve our longer-term goals. We continue to expect to meet our guidance for the year. We remain very confident in our outlook and the capacity we are building in the second half of 2026 positions us well to achieve our longer-term revenue targets while adjusting our portfolio more towards value-added solutions.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Talking about positioning for 2027, we're also building out more cold chain capacity in the second half. We believe that product line has hit an inflection point with our Climaliner Plus offering as an alternative to EPS foam. The feedback in the marketplace has been outstanding, and we think it is poised for a step change in growth. Sustainable cold chain is one of the great opportunities out there right now, and like automation, it gives us another scalable revenue stream with low ongoing capital intensity. I'm extremely pleased with where we are and where we are headed. It is never a straight line, but I have not been this excited about our product pipeline at any point in my time at Ranpak.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

I think we have some real game changers in the portfolio, and they will help drive us toward our goal of $800 million in top line by 2030. We remain focused on growth while staying very disciplined on costs and operations to strengthen our margin profile. I believe everything we are doing right now moves us in that direction. With that, we'd like to open the line up for questions. Operator?

[Operator]

We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question for optimum sound quality, and if muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ghansham Panjabi with Baird. Your line is open. Please go ahead.

[Ghansham Panjabi, Analyst at Baird]

Thank you, operator. Good morning, everybody.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Morning, Ghansham.

[Ghansham Panjabi, Analyst at Baird]

Morning. I guess first off, on the automation momentum that you're seeing so far this year, obviously 2Q built on 1Q. Can you just give us a sense, Omar, as it relates to whether these are existing customers that are proliferating the technology through their enterprises and production networks? Is it new customers? How would you have us think about the split between the two?

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Yeah, it's actually Both, Ghansham, which is quite exciting from our seat. You have some of the large enterprises, Walmart, Medline, which again, we're helping them roll out in more facilities as well as new facilities, and that continues. What we're seeing is very decent activity with new customers. I'll highlight for you, we have formed a couple of key partnerships with integrators. One of them is one of the largest integrators in AS/RS, and we've signed a partnership with them the last few months and are rolling out some of their key accounts for end-of-line packaging. It's a mix of both. Clearly, the large enterprises will continue to drive a big part of the volume for the next couple of years, and that was part of our thinking. We're seeing very good activity with new accounts.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

By the way, for the rest of the year, Ghansham, most of the revenue and our confidence in hitting the $60 million is contracted. Our funnel and pipeline that we're building for 2027 and frankly for 2028 is quite robust. We really like the activity and how we're positioned in automation.

[Ghansham Panjabi, Analyst at Baird]

Okay, that's helpful. What is the impact on EBITDA, specific to automation in 2026, as it relates to the breakeven that you called out for the end of the year? If I could, on the paper business and the variability between the EMEA and North America, just your thoughts as it relates to what's going on there. Did EMEA benefit from any sort of pre-buy ahead of price increases, as they have done in the past during previous inflation cycles? Thank you.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Sure. On automation, I'll start there just with EBITDA. We still think we're on track for getting to breakeven later this year. As you know, we're in the scaling phase. As we scale more, which we're starting to get closer to that, we think the financial profile will improve significantly. The plan is to be sort of EBITDA even towards the end of the year. Starting next year, automation will be an EBITDA positive contributor. That's still intact, and based on what we're seeing in terms of volume and what we just discussed with both existing new accounts and the pipeline, we feel very confident that we're on track to hit that. On PPS variability, I would say there's a couple of components here between Europe and U.S.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

One. In the U.S., we continue to see tremendous strength on the enterprise side and large customers. The distribution channel has been a bit softer than we like. Frankly, our expectation just from talking to them is that you're going to see a pickup in that channel in the second half of the year. We're hoping to see some good activity there, and inventory and stock levels there are really small given just geopolitics, risk appetite in general. In Europe, we're seeing better, broader strength. There was some pre-buy earlier on. Our channel checking right now, Ghansham, show very low levels of inventory, stocks, et cetera. People are not stocked up. People are trying to assess in Europe where the war is going and how that may impact energy prices and customer demand.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

I think the consumer there, as well as some of our customers, are being a little bit cautious. As they get clarity on that, we'll see how volume trends behave. We're not entering Q3 with any high levels of stock or inventory at any of these customers. We're expecting some decent activity. Frankly, the war is a bigger factor in Europe than it is in North America.

[Ghansham Panjabi, Analyst at Baird]

Okay, perfect. Thank you so much.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Thank you.

[Operator]

Your next question comes from the line of Greg Palm with Craig-Hallum. Your line is open. Please go ahead.

[Greg Palm, Analyst at Craig-Hallum]

Yeah, thanks. Morning, everybody. Can you expand a little bit on the margins? I think, Bill, you mentioned that just there was a little bit of a timing between surcharge and input cost. Just given what we're seeing, inflationary input costs basically everywhere, your ability to pass through some of that and maybe just confidence level that you'll see a better margin profile in the second half.

[Bill Drew, CFO at Ranpak Holdings]

Yeah, sure. Happy to, Greg. As we said in the prepared statements, we did improve gross margin by about 150 basis points year-over-year, that was good to see. There are some moving pieces related to that, right? In North America, we continue to make great progress, being more efficient and taking cost out. The North America PPS business, we were able to improve margins by over 300 basis points. In EMEA, right, as you pointed out, the surcharge went in place in May, our input cost did increase starting in April, right? There was a lag there that we had to absorb. You're also seeing in EMEA a little bit of a trade-down of customers going to lower dollar price, lower margin SKUs, particularly as it relates to void fill, which creates a little bit of a mixed headwind.

[Bill Drew, CFO at Ranpak Holdings]

Overall, I think we continue to operate more efficiently, and I think we're doing a good job moving in the right direction for the things that are within our control. Just as the rest of the year goes, we do expect to continue to improve the gross margins. We'll continue to see improvement, we think, in North America as we get more efficient and pass on pricing. In EMEA, we'll continue to work with the surcharge to make sure that we're covering additional costs.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Greg, if I may add, in the second half in North America, we think there is room for price increases in the marketplace, in particular in light of where plastic and some of the resin-based products are. I think expect us to do something there that will help the margin profile. I think, and I've said that in prior calls, we have really been working very hard on a number of Lean and Six Sigma initiatives that are starting to translate into the margin. It's still early days, our expectations in the second half of the year, you will see that also come through in our margin profile. There's a number of very important initiatives around quality, around efficiency, productivity, et cetera, and the big continuous improvement mentality inside the company, and it's starting to yield results.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Hopefully that's something you'll see in Q3 and Q4.

[Greg Palm, Analyst at Craig-Hallum]

Okay, perfect. Following up on the comment of pruning the PPS portfolio. Is this related, I assume it is, but just to the installed base starting to shrink a lot more in recent quarters than it has been historically, and maybe just you can expand a little bit upon this new strategy that you called out.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

I think this is part of our strategy, Greg, to continue to improve the margin profile and financial profile. I don't think it's going to be noticeable for you guys in terms of the top line, if you know what I mean, i.e., what we're doing inside there as we drive growth in good accounts and good opportunities. We're pruning some things that we feel financially are not yielding the type of results that we want. Part of it, to be honest with you, will deal with efficiency of fleet that you're referring to, where some accounts they may have had maybe let's say more converters than needed given the actual volumes we're seeing today. The other part of it may deal with some of the consumable businesses with some of our enterprise partners where we have warrants.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

We want to be a very good partner and fulfill their needs as much as possible, but we want to be prudent in terms of what does it mean for us in terms of bottom line and financial profile. I would say consider it just healthy pruning that we feel given what we're seeing from volume trends and the strength of the business, that it's wise to do that to enhance our financial profile.

[Greg Palm, Analyst at Craig-Hallum]

Yeah, understood. Okay, thanks.

[Operator]

Your next question comes from Troy Jensen with Cantor Fitzgerald. Your line is open. Please go ahead.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Hi, Troy.

[Operator]

Troy, if your line is muted, we cannot hear you speaking.

[Omar Asali, Chairman and CEO at Ranpak Holdings]

Maybe we can move on and see if Troy rejoins.

[Operator]

Certainly. There are no further questions at this time. I will pass back to Bill Drew for any closing remarks.

[Bill Drew, CFO at Ranpak Holdings]

Thanks a lot, Ellen. Thank you all for joining us today. We look forward to speaking next quarter.

[Operator]

This concludes today's call. Thank you for attending. You may now disconnect.

Participants

Executives

• Sara Horvath, Chief Legal and HR Officer
• Bill Drew, CFO

Analysts

• Omar Asali, Chairman and CEO at Ranpak Holdings
• Ghansham Panjabi, Analyst at Baird
• Greg Palm, Analyst at Craig-Hallum