Ranpak Holdings Corp. (PACK): Business Model Canvas [Dec-2025 Updated]

You're digging into the financial blueprint of Ranpak Holdings Corp., and honestly, their model is a sharp, modern take on the classic razor-and-blade. They make their real money selling the high-margin, specialized paper consumables that run through the proprietary machines they install for giants like Amazon and Walmart-deals that target up to $700 million in spend. It's all about recurring paper revenue, not just selling metal boxes. With their automation segment jumping 63.0% in Q3 2025, this strategy is clearly gaining traction, so let's map out the nine essential building blocks driving their current performance right here.

Ranpak Holdings Corp. (PACK) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel Ranpak Holdings Corp.'s growth engine as of late 2025. These aren't just vendor agreements; they are deep, warrant-backed strategic alliances with the world's largest e-commerce and retail players. Honestly, locking in these two giants sets a powerful precedent for scaling automation.

The deployment of Ranpak Holdings Corp.'s automation technology is heavily concentrated with these anchor customers. For instance, Walmart is rolling out Ranpak AutoFill™ systems across five Next Generation Fulfillment Centers, specifically naming locations in Greencastle, PA, Joliet, IL, Lancaster, TX, and Stockton, CA, in addition to the existing McCordsville, IN site. This deployment is designed to streamline fulfillment, cut waste, and simplify associate work.

Here's a breakdown of the financial scaffolding behind these two massive relationships:

The Amazon warrant agreement, executed on January 28, 2025, ties the issuance of up to 18,716,456 common stock shares to a cumulative expenditure of $400 million under their commercial agreements. This commitment is so significant that it represents an estimated 17% of Ranpak Holdings Corp.'s shares upon full completion. The non-cash reduction in revenue recognized due to this warrant provision was $0.8 million in the third quarter of 2025.

The Walmart deal is structured similarly, granting them 22.5 million warrants at the same $6.8308 strike price. The vesting is tied to $300 million in spending over ten years, specifically excluding the cost of paper. Analysts estimate that to hit that $300 million threshold, the total spend, including paper, implies up to roughly $700 million in total value. Ranpak Holdings Corp. expects each AutoFill unit placed with Walmart to generate solid recurring revenue, consuming over $100,000 of paper annually per machine.

These two enterprise deals together project potential for "over a billion dollars in revenue from these two customers alone over the next eight to 10 years." The focus on automation is paying off in Ranpak Holdings Corp.'s internal metrics:

• Automation revenue surged 32.1% in the second quarter of 2025.
• Automation revenue grew 63.0% year over year in the third quarter of 2025.
• Automation net revenue is projected to reach $40-$45 million for the full year 2025.

You can see the direct financial impact of these large customers on the top line; for example, enterprise e-commerce accounts drove 3.7% volume growth for Ranpak Holdings Corp.'s North America business in Q3 2025.

Ranpak Holdings Corp. (PACK) - Canvas Business Model: Key Activities

Manufacturing and deploying proprietary converting machines.

The installed base of packaging systems reached approximately $145.6$ thousand machines as of September 30, 2025.

Research and development (R&D) of new paper-based solutions.

New product launches included the Cut't! ™ EVO Multi-Lid, DecisionTower™, Ranpak Precube'it! ™, naturemailer™, and RecyCold® Climaliner plus™. The company is exploring advanced materials and technologies to enhance product performance and sustainability.

Global paper conversion and distribution logistics.

A new full-service paper conversion facility was established in Malaysia, becoming operational in the second half of 2024 to improve service to the APAC region. Logistics optimization was a stated cost-cutting measure.

Scaling the high-growth automation segment (expected $40-$45 million net revenue in 2025).

The company expects its automation segment to achieve approximately $\$40$-$\$45$ million in net revenue for the full year 2025. Automation net revenue for the third quarter of 2025 was $\$11.9$ million. This represented a year-over-year increase of 63.0% in Q3 2025, or a 56% increase on a constant currency basis in the quarter versus last year.

You're looking at the core growth engine here; the automation segment is clearly the priority for scaling investment.

Deepening enterprise customer relationships and integration.

Ranpak signed a transformative partnership and warrant agreement with Walmart in August.

Under this agreement, Walmart received $22.5$ million warrants at a strike price of $\$6.8308$.

The vesting is based on spending targets that could imply up to $\$700$ million in total spend over ten years.

Management estimates that over $\$100$ million of this potential spend would be allocated to Automation.

The company also has strategic partnerships with Medline.

The company's overall Q3 2025 net revenue was $\$99.6$ million, with gross margins expanding to 34.5% from 31.1% in the second quarter.

Ranpak Holdings Corp. (PACK) - Canvas Business Model: Key Resources

You're looking at the core assets Ranpak Holdings Corp. (PACK) relies on to run its business as of late 2025. These aren't just things they own; they are the foundation for their value proposition in protective and automation solutions.

The first major asset is the Proprietary Protective Packaging Systems (PPS) technology itself. This technology is what drives the installed base of equipment out in the field, which is a critical resource for recurring consumable revenue. As of September 30, 2025, Ranpak Holdings Corp. reported its packaging system placements reached approximately 145.6 thousand machines. That's up 1.4% year-over-year, showing continued, albeit modest, physical footprint expansion.

This installed base is the physical manifestation of their technology moat. To be fair, the growth in the automation segment is where the real momentum is, with Automation net revenue surging 63.0% in Q3 2025 to reach $11.9 million for the quarter. Management expects the full year 2025 Automation net revenue to land between $40-$45 million.

Ranpak Holdings Corp. also maintains global manufacturing and paper conversion facilities. For instance, they operate facilities in locations like Malaysia, which supports their global supply chain for paper-based packaging materials. Another key resource is the Intellectual property (IP) that protects their specific paper-based packaging designs, which underpins the value of their systems and consumables.

You need to look closely at their balance sheet strength, which is a key enabler for near-term operations and investment. Ranpak Holdings Corp. closed the third quarter of 2025 with a strong liquidity position. Specifically, they held a cash balance of $49.9 million. Importantly, they had no borrowings on their $50.0 million revolving credit facility, which is set to mature in December 2029.

Here's a quick look at some of the core operational and financial metrics that define the scale of these resources as of Q3 2025:

The strategic partnership signed in August 2025 with Walmart also represents a significant, albeit contingent, resource. Under that agreement, Walmart received 22.5 million warrants with a strike price of $6.8308, vesting based on future spending.

To summarize the tangible and intangible assets underpinning Ranpak Holdings Corp.'s operations:

• Installed base of 145.6 thousand converting machines as of September 30, 2025.
• Cash on hand of $49.9 million at quarter-end.
• Proprietary technology protected by Intellectual Property.
• Automation segment revenue growth of 63.0% in the quarter.
• Access to a $50.0 million undrawn credit facility.

Finance: draft 13-week cash view by Friday.

Ranpak Holdings Corp. (PACK) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Ranpak Holdings Corp. in late 2025, focusing only on the hard numbers that back up their claims.

Sustainable, paper-based alternative to plastic protective packaging.

Ranpak Holdings Corp. offers packaging materials that are fundamentally renewable, biodegradable, and 100% curbside recyclable. This commitment to paper directly addresses the increasing consumer demand for environmental action, as 81% of consumers believe it is very important for companies to take action that improves the environment.

The company has set clear, measurable environmental targets:

• Commitment to source at least 75% recycled pulp by 2030.
• In 2024, the aggregate paper supply was 66% recycled pulp.
• Goal to obtain FSC, SFI, or PEFC certification for 100% of paper packaging materials by 2030.
• Commitment to reduce absolute Scope 1 and 2 GHG emissions by 46% by 2030.

It's worth noting that in 2024, 66% of Ranpak's raw material supply consisted of renewable materials, a slight dip from 70% in 2023, which management attributes to the growth of their automation business.

End-of-line automation systems for high-volume fulfillment.

The focus on automation is clearly paying off in the financials. For the third quarter of 2025, Automation net revenue surged to $11.9 million, representing a massive year-over-year increase of 63.0%. Management believes the Automation segment remains on track to achieve approximately $40-$45 million in net revenue for the full year 2025.

The installed base of their protective packaging systems continues to grow, showing market penetration:

This installed base supports the paper consumables business, which saw global volumes increase by 12.0% in Q1 2025.

Reduced shipping costs by minimizing package void (right-sizing).

While I don't have a direct dollar figure for customer shipping cost reduction, the value proposition is tied directly to the performance of the paper-based cushioning, void-fill, and wrapping solutions, which inherently minimize void space. The North American Protective Packaging Systems (PPS) volume growth hit 45% in Q1 2025, showing strong adoption of these right-sizing solutions in that key market. The company's strategy is to provide solutions that make businesses better and offer strong returns on investment, especially when tariffs make other automation solutions more expensive.

High-quality cushioning, void-fill, and wrapping product protection.

The core protective packaging segment continues to deliver solid revenue, even as automation accelerates. Here's the breakdown of the paper product revenue streams for the third quarter of 2025:

Total net revenue for Q3 2025 reached $99.6 million. The growth in void-fill and wrapping outpaced cushioning in the quarter.

Operational efficiency and labor savings for e-commerce giants.

The automation push is directly aimed at operational efficiency and labor savings for large shippers. The transformative partnership signed with Walmart in August 2025 is a concrete example of this value capture. Under that agreement, Walmart received 22.5 million warrants, which vest based on spending targets that could imply up to $700 million in total spend on Ranpak products over ten years. Management believes over $100 million of this potential spend would be allocated to Automation.

Internally, Ranpak is also driving efficiency to benefit the customer value equation. They implemented cost-cutting measures, including a 3% global workforce reduction and logistics optimization, which are expected to improve North American gross margins by 3-5 points by year-end 2025. The company finished Q3 2025 with $49.9 million in cash and no borrowings on its $50.0 million revolving credit facility.

Finance: draft 13-week cash view by Friday.

Ranpak Holdings Corp. (PACK) - Canvas Business Model: Customer Relationships

You're looking at how Ranpak Holdings Corp. keeps its customers locked in, especially as they push hard into automation. The relationship strategy clearly splits between big players and smaller users.

Dedicated, high-touch sales and service for large Enterprise accounts.

The focus on Enterprise customers is driving major growth in the Automation segment. For example, in the third quarter of 2025, Automation net revenue surged by 63.0% year-over-year, reaching $11.9 million for that quarter alone. Ranpak expects the full-year 2025 Automation net revenue to be approximately $40-$45 million. This high-touch approach is exemplified by the transformative partnership signed with Walmart in August 2025. This deal involves 22.5 million warrants vesting based on Walmart's spending targets, which could imply up to $700 million in total spend over ten years, with over $100 million potentially allocated to Automation products.

The solutions driving these deep enterprise relationships include several integrated technologies:

• Pad'it! ™ - automated pad insertion for streamlined operations.
• PadPak Guardian Bulk - paper-based cushioning for optimal shipping protection.
• DecisionTower™ - void measuring and error reduction technology.
• Cut'it! EVO- automated height reduction and lid application.
• Print'it! - on-demand, full-color box-top printing across multiple box sizes.

Long-term contracts and systems-based deployment for recurring revenue.

The deployment of packaging systems forms the backbone of the recurring revenue stream. As of September 30, 2025, Ranpak Holdings Corp. had approximately 145.6 thousand packaging system placements globally, a 1.4% increase year-over-year. The Walmart warrant structure is a concrete example of tying long-term commitment to system utilization, as vesting is based on spending over ten years. This systems-based model ensures a continuous need for Ranpak's Protective Packaging consumables.

Exclusive distribution channel management for smaller end-users.

For smaller end-users, the reliance is more on the exclusive distribution channel. However, this channel experienced headwinds; uncertainty across the globe weighed on the exclusive distribution channel in the second quarter of 2025, leading to a less robust May and June globally. Still, global paper volumes increased 5.2% in Q2 2025, showing underlying demand even with channel softness.

Packaging consulting and training services for optimization.

Optimization is delivered through the integration of technology that provides data-driven insights, effectively acting as ongoing consulting. Solutions like the DecisionTower™ technology directly address error reduction and void measurement, which translates to material optimization consulting for the customer. The company is evolving into a sustainable tech-based company redefining intralogistics with smart packaging solutions that use Physical AI to analyze and react to warehouse data.

Building trust through a shared sustainability vision.

Trust is cemented by aligning with customer sustainability goals, which Ranpak Holdings Corp. quantifies rigorously. The commitment to circularity and responsible sourcing is central to these customer discussions.

For context on material composition in 2023, 70% of the pulp used was recycled (both PIW & PCW), which was a 9% increase from 2022.

Ranpak Holdings Corp. (PACK) - Canvas Business Model: Channels

The Channels component for Ranpak Holdings Corp. relies on a dual approach, blending broad third-party reach with targeted direct engagement, especially for high-value automation solutions.

Direct sales force for major e-commerce and retail customers

Direct sales efforts focus on securing large Enterprise accounts, particularly those transitioning from plastic to paper packaging solutions in North America. The North American Protective Packaging Systems (PPS) business showed continued strength, with North American sales volume increasing 3.7% year over year in the third quarter of 2025. This direct channel also handles the placement and sale of proprietary converting equipment.

The historical split shows that direct sales to end-users accounted for approximately 9.5% of net revenue in 2022.

Global network of exclusive third-party distributors

The majority of Ranpak Holdings Corp.'s consumable sales flow through its global network of exclusive third-party distributors. In 2022, sales to these distributors represented 90.5% of the company's net revenue. As of late 2022, this network comprised approximately 300 distributors worldwide. However, uncertainty across the globe weighed on this exclusive distribution channel in the second quarter of 2025, leading to a less robust May and June globally.

The installed base served by this channel is substantial:

• Total installed systems across all channels: approximately 145.6 thousand machines as of September 30, 2025.
• Total end-users served across all channels (as of 2022): over 36,000.

Direct placement/sale of proprietary converting equipment

Revenue from packaging systems, which includes direct placement and sales of proprietary converting equipment, is tracked under Automation net revenue and Other net revenue. Automation net revenue saw significant growth in the third quarter of 2025, increasing 63.0% year over year to $11.9 million. The increase in total net revenue for the third quarter of 2025 was quantified by a 4.5% increase in automated equipment sales. Ranpak Holdings Corp. forecasts total Automation net revenue for the full year 2025 to be between $40 million and $45 million. This segment is a key focus, especially following a transformative partnership and warrant agreement signed with Walmart in August 2025, which is anticipated to drive significant revenue growth in automation.

Global manufacturing and distribution footprint (North America, Europe, Asia)

Ranpak Holdings Corp. supports its channels through a global operational footprint, with a majority of its revenue historically derived from Europe and Asia. The company maintains its corporate office in Concord Township, Ohio, United States of America.

The geographic revenue distribution for the full year 2024 was:

Key international locations and subsidiaries supporting this footprint include operations in:

• The Netherlands (Ranpak CZ BV)
• France (NeoPack Solutions S.A.S.)
• Japan (Ranpak KK)
• China (Ranpak Packaging Technology (Qingdao) Co. Ltd)
• Australia (Ranpak Australia Pty Ltd)

The company also has operations in Brazil.

Ranpak Holdings Corp. (PACK) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Ranpak Holdings Corp. as of late 2025. The customer base is clearly split between high-volume users needing automation and those needing core protective materials across different geographies. This segmentation drives how Ranpak Holdings Corp. structures its sales and service efforts.

Large-scale e-commerce and retail enterprises represent a critical, high-growth segment, especially with the focus on automation. A prime example is the transformative partnership signed with Walmart in August 2025. This agreement includes a warrant structure where Walmart received 22.5 million warrants at a strike price of $6.8308, vesting based on spending over ten years. The potential total spend under this partnership is cited as up to $700 million over the contract's life. This segment is heavily targeted by the Automation business line, which saw net revenue surge 63.0% year-over-year in Q3 2025 to $11.9 million.

Global industrial supply chains and manufacturing companies form the base for the Protective Packaging business. This group relies on Ranpak Holdings Corp. for its core paper consumables like cushioning, void-fill, and wrapping. In the third quarter of 2025, the Protective Packaging segment net revenue grew by 3.3% year-over-year. The overall installed base of packaging systems supporting these users reached approximately 145.6 thousand machines as of September 30, 2025, a 1.4% increase year-over-year.

Third-party logistics (3PL) providers and fulfillment centers are served through the same protective and automation solutions, often overlapping with the large e-commerce enterprises but also including independent logistics operators. The company's strategic focus on end-of-line automation is designed to solve efficiency challenges for these high-throughput operations.

Small to mid-sized end-users are generally reached indirectly. Ranpak Holdings Corp. generates revenue by serving customers directly, but also through a network of exclusive paper packaging solution distributors. This channel helps ensure broad market penetration for the paper consumables beyond the largest direct accounts.

The customer base is distinctly geographically segmented into North America and Europe/Asia, with performance varying significantly between the two as of late 2025. North America is showing stronger current momentum, while Europe/Asia presents a volume recovery opportunity.

Here's a quick look at the geographic performance from the third quarter of 2025:

The full-year 2025 Automation net revenue target is set between $40 million and $45 million, with the majority of that expected to be driven by North American adoption.

You should track the ongoing volume trends in Europe/APAC; if that region starts showing positive constant currency growth, it signals broader market health for Ranpak Holdings Corp.

Ranpak Holdings Corp. (PACK) - Canvas Business Model: Cost Structure

You're looking at the expenses that Ranpak Holdings Corp. is managing to deliver its packaging and automation solutions. It's a mix of heavy upfront investment and ongoing material costs, which is typical for a company deploying equipment.

The cost structure is heavily influenced by the capital intensity of the business. Manufacturing and deploying the packaging systems require significant upfront spending. For instance, Capital Expenditures (CapEx) in the first quarter of 2025 were reported at $7.5 million, largely directed toward PPS converter spend, which speaks directly to the fixed asset base investment required to support volume growth.

The Cost of Goods Sold (COGS) for paper raw materials is a major variable cost component. While the specific Q1 2025 COGS figure isn't explicitly isolated, the pressure is evident: Gross Profit for Q1 2025 was $30.9 million on net revenue of $91.2 million. By the second quarter of 2025, the Cost of product sales had risen to $56.0 million, indicating significant input cost pressure that compressed the Q2 Gross Profit to $28.9 million.

Operating expenses are closely watched, especially the overhead. Selling, General, and Administrative (SG&A) expenses, excluding RSU expense, were $28.9 million in the first quarter of 2025. This represented an increase of 0.4% versus the prior year's first quarter, even as the company deferred some spend.

Ranpak Holdings Corp. is actively working to manage these costs through targeted actions. Management has identified structural cost reductions totaling $8 million, which are being implemented across the organization. Furthermore, the company executed on headcount reduction, cutting staff by 3% since April 2025, with the full run rate of this cost-out expected to reach $2 million per quarter by the fourth quarter of 2025.

Investment in the future, particularly in automation, is another key cost area. Ranpak Holdings Corp. is investing in R&D to support its automation segment, which is targeted for approximately 50% growth in 2025. While a specific R&D dollar amount for Q1 2025 isn't immediately available, the focus on automation is a strategic allocation of resources.

Here is a snapshot of key cost and related financial metrics from the first half of 2025:

You should keep an eye on how these costs translate into the gross margin profile, especially in North America, where the company is targeting a 300 to 500 basis point gross margin improvement in the second half of the year due to these cost actions.

• High fixed cost driver: Manufacturing and deploying Packaging Systems.
• Significant variable cost: Paper raw materials for consumables.
• Cost-cutting focus: Headcount reduction of 3% since April 2025.
• Automation investment: Supporting a segment targeted for 50% growth in 2025.
• Non-cash headwind: Amazon warrants caused a $0.8 million reduction to Q1 2025 revenue.

Ranpak Holdings Corp. (PACK) - Canvas Business Model: Revenue Streams

You're looking at how Ranpak Holdings Corp. brings in money, which is a mix of selling the things they make and the machines that make them work. The core of the business is definitely the recurring revenue from sales of high-margin specialized paper consumables. This is the bread and butter, the steady stream that keeps the lights on, though the volume of these sales saw a slight dip of approximately 0.3% in Q3 2025 compared to the prior year period.

Next up, you have the revenue tied to the sales or leasing fees from the proprietary converting equipment. This is connected to the physical footprint of their technology. As of September 30, 2025, Ranpak Holdings Corp. had approximately 145.6 thousand packaging systems placed, which was a 1.4% increase year-over-year. This placement growth supports the ongoing consumable sales.

The real growth story right now is the Automation segment revenue. This area saw a massive 63.0% surge in Q3 2025 compared to Q3 2024, hitting $11.9 million in net revenue for the quarter. Management believes this segment remains on track to achieve between $40-$45 million in net revenue for the full year 2025.

To give you a clearer picture of the top-line performance, here's how the revenue broke down in the third quarter of 2025:

The Protective Packaging revenue, which is where the core paper consumables sit, is further detailed by product line for Q3 2025. This shows you the specific streams within the traditional business:

• Void-fill revenue was $43.4 million.
• Cushioning revenue was $35.8 million.
• Wrapping revenue was $8.5 million.

When you look at the full-year expectation, the company is guiding toward a full-year 2025 Adjusted EBITDA (AEBITDA) of $83.3 million, using year-to-date actuals and the midpoint of the remaining guidance range. This guidance does factor in an expected non-cash reduction of between $4 million and $6 million in 2025 related to warrant expense recognition. The 8.0% year-over-year increase in Q3 net revenue to $99.6 million was positively impacted by growth in automation, void-fill, and wrapping.