XBP Global Holdings, Inc. Announces Fourth Quarter and Full Year 2025 Financial Results

Company Overview & Transformational Acquisition

XBP Global Holdings, Inc. (“XBP Global” or “the Company”) (NASDAQ: XBP), a multinational technology and services company specializing in hyper-automation and digital transformation, reported its financial results for the fourth quarter and fiscal year ended December 31, 2025. Notably, 2025 marked a significant transition year for XBP Global, following the transformative acquisition of Exela Technologies BPA, LLC (“BPA”) in July 2025. The results reflect a substantial reorganization, with BPA treated as the accounting acquirer and XBP Europe’s results excluded until July 31, 2025.

Key Financial Highlights

• Reported Revenue: \$791.0 million, representing a 9.4% year-over-year decline.
• Gross Margin: 21.7% (reported), up 10 basis points YoY; Pro Forma Gross Margin at 21.9%, up 30 basis points YoY.
• Combined Pro Forma Revenue: \$879.6 million, a 13.6% year-over-year decline.
• GAAP Net Income: \$1.1 billion, a dramatic turnaround from a net loss of \$215.2 million the prior year.
• Pro Forma Normalized EBITDA: \$90.2 million, down 13.7% year-over-year.
• Total Contract Value (TCV) Closed: \$297.8 million, with \$163.8 million attributable to new contracts.

Fourth Quarter 2025 Highlights

• Revenue: \$207.0 million (pro forma), down 15.1% year-over-year.
• Gross Margin: 22.7% (pro forma), up 110 basis points YoY.
• Pro Forma Normalized EBITDA: \$19.2 million, a 35.0% year-over-year decrease.
• New TCV Closed: \$60.2 million, up 53.2% YoY and 68.4% above the four-quarter average.
• New ACV Closed: \$34.8 million, up 37.7% YoY and 46.7% above the four-quarter average.

Management’s Commentary & Strategic Initiatives

Andrej Jonovic, Chief Executive Officer, characterized 2025 as a “defining year of transition” with the successful acquisition of BPA and repositioning of the company as XBP Global. Management acknowledged the expected revenue adjustments due to legacy performance trends in the acquired business but emphasized a “laser-focus” on stabilizing the portfolio and laying groundwork for a return to growth.

Key strategic actions:

• Investment in sales leadership and expanded client outreach to win back business and new client relationships.
• Focused rollout of AI-driven solutions across business functions, unlocking significant operating leverage and driving gross margin expansion.
• Entering 2026 with an enhanced suite of agentic AI-driven solutions to help clients transition from labor-intensive, reactive workflows to orchestrated, exception-driven workflows.

Segment Results

As Reported (FY2025 vs. FY2024)

• Applied Workflow Automation: Revenue \$723.2 million (-11.4% YoY), Gross Margin 17.9% (-60 bps YoY)
• Technology Segment: Revenue \$67.8 million (+20.6% YoY), Gross Margin 62.5% (-460 bps YoY)
• Total: Revenue \$791.0 million (-9.4% YoY), Gross Margin 21.7% (+10 bps YoY)

Pro Forma (FY2025 vs. FY2024)

• Applied Workflow Automation: Revenue \$788.6 million (-14.3% YoY), Gross Margin 17.4% (-10 bps YoY)
• Technology Segment: Revenue \$91.0 million (-6.3% YoY), Gross Margin 60.6% (-70 bps YoY)
• Total: Revenue \$879.6 million (-13.6% YoY), Gross Margin 21.9% (+30 bps YoY)

Fourth Quarter Segment Results (Pro Forma)

• Applied Workflow Automation: Revenue \$185.2 million (-15.1% YoY), Gross Margin 18.4% (+140 bps YoY)
• Technology Segment: Revenue \$21.7 million (-14.6% YoY), Gross Margin 59.1% (-150 bps YoY)
• Total: Revenue \$207.0 million (-15.1% YoY), Gross Margin 22.7% (+110 bps YoY)

Balance Sheet Overview (as of December 31, 2025)

• Total Assets: \$902.1 million (vs. \$390.4 million in 2024)
• Cash and Cash Equivalents: \$37.1 million (vs. \$11.6 million in 2024)
• Total Liabilities: \$814.8 million (vs. \$1,847.2 million in 2024)
• Stockholders’ Equity: \$87.3 million (vs. deficit of \$1,456.8 million in 2024)
• Current Portion of Long-Term Debt: \$34.3 million (vs. \$1,433.5 million in 2024)
• Long-Term Debt (net of current maturities): \$353.3 million (vs. \$1.5 million in 2024)

Statement of Operations

• Net Income: \$1,103.5 million for 2025 (vs. loss of \$227.3 million in 2024).
• Impairment of Goodwill: \$320.3 million recognized in 2025.
• EBITDA: Pro Forma Normalized EBITDA for the year \$90.2 million (down from \$104.4 million in 2024).
• Net Loss per Share: \$(29.88) (Successor period).

Cash Flow Highlights

• Net cash provided by operating activities: \$18.2 million (Successor), \$(159.9) million (Predecessor), \$23.3 million (2024).
• Net cash used in investing activities: \$(6.3) million (Successor), \$(2.7) million (Predecessor), \$(6.5) million (2024).
• Net cash provided by financing activities: \$13.1 million (Successor), \$145.3 million (Predecessor), \$(2.8) million (2024).
• End-of-period cash, restricted cash, and cash equivalents: \$68.7 million (2025).

Potential Price-Sensitive Developments

• Turnaround to GAAP Net Income: The company reported a GAAP net income of \$1.1 billion for 2025, compared to a significant net loss in 2024. This turnaround is largely attributable to reorganization items and acquisition effects.
• Acquisition and Integration: The acquisition of BPA and exclusion of XBP Europe until July 31, 2025 fundamentally changes the reported metrics and should be closely monitored for ongoing impacts on comparability and future earnings.
• Gross Margin Expansion: Despite revenue declines, gross margin improved both on a reported and pro forma basis, driven by AI-driven automation and operational leverage. This signals management’s success in cost controls and potential for future profitability.
• Contract Value Growth: New TCV and ACV are substantially higher year-over-year, indicating successful sales efforts and expansion opportunities.
• Debt Reduction: The company significantly reduced its current portion of long-term debt and total liabilities, strengthening the balance sheet and reducing financial risk.
• Impairment Charges: The recognition of \$320.3 million in goodwill impairment may have implications for future asset values and investor perception.
• AI Investment: Strategic investments in agentic AI-driven solutions are expected to unlock further margin expansion and attract new clients, positioning XBP Global for growth in 2026.
• Conference Call & Investor Presentation: Investors should note the upcoming earnings call and supplemental presentation available on the company’s investor relations website, offering further insights into strategy and performance.

Risks and Forward-Looking Statements

The company cautions that forward-looking statements are subject to risks including acquisition integration challenges, legal proceedings, compliance with Nasdaq listing standards, competition, geopolitical and regulatory changes, and retention of clients and employees. These risks may materially affect future results and share values.

About XBP Global

XBP Global operates in 20 countries with approximately 10,600 employees, partnering with over 2,000 clients including many Fortune 100 companies. The company’s proprietary platforms and AI solutions support mission-critical digital transformations for organizations globally.

Investor Relations

For further information, presentations, and updates, investors should monitor the company’s website and social media channels, as information posted may be considered material.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. All financial data, projections, and forward-looking statements are subject to risks and uncertainties and may change without notice. Investors should review official SEC filings and consult with their financial advisors before making investment decisions.

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