A maker of recyclable paper protective packaging, Ranpak produces machines and consumables under brands like FillPak, PadPak, WrapPak, and Geami that cushion goods in shipping boxes, used by e-commerce and industrial shippers. Founded in 1972 in Painesville, Ohio, the company grew from George Johnson's 1970 patent for a machine that crinkled kraft paper into padding for automotive parts. The name "Ranpak" is short for "Random Packaging," and its paper pads are made substantially from recycled pulp.
Automation equipment sales more than doubled again, driving 14% revenue growth, but gross margin slipped to 32.8% as the mix shift toward lower-margin equipment deepened.
Automation equipment sales more than doubled for a second straight quarter. rose 14% to $105.2 million and grew 19%, but fell 1.7 points sequentially to 32.8% as the mix shifted further toward lower-margin automation equipment. The company is growing the top line at the expense of profitability, and the trade-off is accelerating.
Key takeaways
Automation equipment rose 133.8% to $16.6 million, the primary driver of the 14% revenue increase, after a 112.7% increase in Q1 2026.
fell 1.7 points sequentially to 32.8%, as the mix shift toward lower-margin automation equipment outweighed a 1.5% decline in production costs.
Net loss was $7.9 million, roughly flat with the $7.5 million loss a year ago, as a $2.8 million swing to a foreign currency loss and the absence of a prior-year $5.8 million unrealized gain on a strategic investment offset the increase.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 14% to $105.2M driven by automation equipment sales, while net loss widened slightly to $7.9M.
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Consolidated net increased 14.0% to $105.2M, led by a 133.8% surge in Automation revenue to $16.6M and a 9.0% increase in Void-Fill.
expenses fell 4.2% to $27.6 million, helped by lower facility costs and reduced .
turned positive at $7.1 million for the first half of 2026, up from a $4.9 million use of cash a year earlier, aided by lower purchases.
Europe/Asia rose 18.6% to $59.3 million, while North America grew 8.5% to $45.9 million; segment profitability diverged sharply due to foreign currency swings.
What changed
Q1 2026 flagged whether the 112.7% automation growth rate represented a new run rate or a one-time order concentration. Q2 delivered a 133.8% increase, confirming the acceleration is sustained for now.
Q1 2026 asked whether the 34.5% would hold as the mix shift toward lower-margin automation grew. It did not — gross margin fell to 32.8%, the lowest quarterly level since Q4 2025.
The FY2025 10-K flagged whether the ERP-related would be remediated in 2026. This filing provides no update, and the risk factors section refers readers to the 2025 10-K, suggesting no change.
The FY2025 10-K flagged the evaluation of alternative suppliers to mitigate 20% tariffs on PPS converters sourced from China. This filing provides no update on the outcome of that evaluation.
What to watch
Q3 2026 to see whether the 32.8% level stabilizes or erodes further as automation equipment becomes a larger share of .
Automation equipment growth rate in Q3 2026 to determine whether the triple-digit increases are sustainable or reflect a pull-forward of orders.
Any disclosure on the outcome of the alternative supplier evaluation to mitigate the 20% tariffs on PPS converters sourced from China, which management flagged as an active initiative but has not updated.
Whether the ERP-related in internal controls is remediated in 2026, which would allow KPMG to issue an unqualified opinion on controls for the first time since 2022.
grew 19.4% to $34.5M as a 11.3% volume/mix-driven cost increase was partially offset by a 1.5% decline in production costs.
SG&A expenses decreased 4.2% to $27.6M, primarily due to lower facility costs and reduced .
Net loss was $7.9M compared to $7.5M a year ago, impacted by a $2.8M swing to foreign currency loss and the absence of a prior-year $5.8M unrealized gain on a strategic investment.
Europe/Asia rose 18.6% to $59.3M, while North America grew 8.5% to $45.9M; segment diverged sharply due to foreign currency swings.
turned positive to $7.1M for the first half of 2026 from a $4.9M use in the prior year, helped by lower purchases.