Summary of XBP Global Holdings Conference Call Company Overview - **Company Name**: XBP Global Holdings (NasdaqCM:XBP) - **Industry**: Workflow Automation and Digital Transformation - **Recent Acquisition**: Acquired Exela Technologies BPA, expanding global footprint to 20 countries and pro forma revenue to approximately $900 million annually [2][4][5] Core Business and Offerings - **Core Offerings**: Workflow automation and digital transformation solutions for over 2,500 clients, including major banks, healthcare providers, and government agencies [3][6] - **Client Contracts**: Long-term contracts with an average duration of 2-5 years; top 25 clients have been with the company for an average of 15 years [3][32] - **Revenue Concentration**: Largest client contributes 7.5% of revenue; top 10 clients account for 34% of revenue [6][3] Financial Performance - **Pro Forma Revenue**: Approximately $916 million with adjusted EBITDA of about $103 million [5] - **Debt Metrics**: Net debt to adjusted EBITDA ratio of 3.37 times, below Russell 2000 average of 3.85 times; no material debt maturities until 2028 [5][6] - **Recent Financial Trends**: Adjusted EBITDA increased by 7.4% year-over-year and 22% sequentially, driven by higher gross margins [21] Strategic Focus and Growth Opportunities - **AI Integration**: Focus on large-scale AI-led deployments to enhance efficiency and customer experience; proprietary tools include Generative AI and Agentic AI [11][12] - **Public Sector Focus**: Recent contracts with government agencies, including a $40 million contract with HMPO for digitizing historical records [15][17] - **New Contracts**: Multiple strategic wins in the U.S. and Europe, including a multi-year contract with BG Phoenix valued at up to EUR 21.5 million [23][21] Market Position and Competitive Landscape - **Market Cap**: Estimated between $50-$60 million with a net debt of $350 million and EBITDA around $100 million, valuing the company at approximately four times enterprise value to adjusted EBITDA [37] - **Competitive Edge**: Ability to be nimble and leverage advanced technology; strong relationships in the public sector expected to lead to follow-on deals [35][36] Future Outlook - **Revenue Growth Potential**: Anticipated stabilization of revenues with new contracts expected to contribute positively over the next few years [29][30] - **Debt Refinancing Plans**: Plans to refinance existing debt to achieve lower interest rates, potentially saving tens of millions annually [27][28] - **Investor Value Proposition**: Significant upside potential for investors as the company is currently undervalued compared to peers trading at 8-16 times enterprise value to adjusted EBITDA [38] Additional Insights - **Employee Efficiency**: Revenue per employee exceeds $80,000, significantly higher than the peer average of $57,000, indicating improved operational efficiency [18] - **Automation Impact**: Automation efforts have led to a steady decrease in headcount while maintaining revenue stability [17][18] This summary encapsulates the key points discussed during the XBP Global Holdings conference call, highlighting the company's strategic direction, financial health, and growth opportunities in the workflow automation industry.

Core Insights - XBP Global Holdings, Inc. has entered into a five-year agreement with BG-Phoenics GmbH, valued at up to 21.5 million Euro, to provide workflow automation services in Germany's statutory accident insurance sector [1][2][4] Group 1: Agreement Details - The contract involves XBP Global transitioning the client's mail processing from paper-based workflows to AI-driven digital document management [2][4] - XBP Global will utilize its Intelligent Document Processing (IDP) Software platform to process and digitize up to 148 million pages during the contract period [3][4] Group 2: Strategic Positioning - This agreement enhances XBP Global's presence in the German public sector and reinforces its reputation as a strategic partner for technology-enabled document management services [2][4] - The engagement follows a competitive tender process and aligns with XBP Global's strategy to strengthen its foothold in regulated industries and key European markets [4] Group 3: Company Overview - XBP Global operates in 20 countries with approximately 11,000 professionals and partners with over 2,500 clients, including many Fortune 100 companies [6][7] - The company focuses on intelligent workflows and hyper-automation, leveraging its proprietary platforms and AI-driven automation to support digital transformations [7]

XBP Global Holdings, Inc. (NASDAQ:XBP) is set to implement a reverse stock split to potentially increase its stock price and appeal to investors.The company will participate in the Sidoti Year End Virtual Investor Conference, presenting a strategic opportunity to engage with investors.XBP's stock has experienced volatility, with a significant decrease in price over the past year, but the reverse stock split and investor conference participation could help stabilize and improve its market performance.XBP Glo ...

Core Viewpoint - XBP Global Holdings, Inc. has announced a 1-for-10 reverse stock split, effective December 12, 2025, to enhance its stock price and market perception [1][2]. Group 1: Reverse Stock Split Details - The reverse stock split was authorized by stockholders at the Annual Meeting on July 25, 2025, where every ten shares will be combined into one share [2]. - No fractional shares will be issued; stockholders entitled to fractional shares will receive cash based on the closing price on the effective date [2]. - Post-split, XBP Global will have approximately 11.75 million shares of common stock outstanding, with adjustments made to outstanding warrants, stock options, and other derivative securities [3]. Group 2: Company Overview - XBP Global is a multinational technology and services company specializing in intelligent workflows, with operations in 20 countries and around 11,000 employees [5]. - The company partners with over 2,500 clients, including many Fortune 100 companies, to facilitate hyper-automation and digital transformation [5][6].

Core Insights - XBP Global Holdings, Inc. will participate in Sidoti's Year End Virtual Investor Conference on December 10-11, 2025 [1] - David Shamis, VP of Investor Relations, will present on December 11, 2025, at 12:15 p.m. Eastern Time [2] - The company has a global presence in 20 countries with approximately 11,000 professionals and partners with over 2,500 clients, including many Fortune 100 companies [4] Company Overview - XBP Global is a multinational technology and services company focused on intelligent workflows and hyper-automation [4] - The company utilizes proprietary platforms and agentic AI-driven automation to facilitate digital transformations for clients [5] - XBP Global emphasizes innovation and execution excellence to help businesses reimagine their operations and unlock value [5]

STOCKHOLM, Dec. 02, 2025 (GLOBE NEWSWIRE) -- XBP Global Holdings, Inc. (“XBP Global” or “the Company”) (NASDAQ: XBP), a workflow automation leader that leverages decades of industry experience, a global footprint, and agentic AI to rethink business process automation and digital transformation, announced a new long-term engagement with Region Uppsala, Sweden’s regional public authority. The collaboration marks a significant milestone in XBP’s strategy to support high-performance, citizen-facing services acr ...

Core Points - XBP Global Holdings, Inc. is sponsoring the 11th Annual Palisades Turkey Trot on Thanksgiving Day, November 27, 2025, featuring new 5K and 10K courses [1][8] - The event supports the rebuilding of the YMCA for the Palisades-Malibu community, with XBP Global contributing a $5,000 community match that has been fully met [2] - The festivities will begin at 8:00 AM and conclude before noon, with an expected participation of over 2,000 runners [3][8] Company Involvement - XBP Global is the presenting sponsor of the event, collaborating with community partners such as Equinox and The Palisades Village [5] - The event emphasizes community spirit and resilience, particularly in light of the recent Palisades fire, with statements from the CEO highlighting the importance of maintaining traditions [4] Event Details - The Palisades Turkey Trot will feature a new 5K and 10K loop starting and finishing at the Village Green [8] - Early registration has shown overwhelming enthusiasm, indicating strong community engagement [3]

Core Insights - XBP Global Holdings, Inc. has secured a digital transformation contract with the Saarland State Administration Office through its European subsidiary, XBP Europe, marking a significant expansion in public-sector digitization [1][2] - The contract aims to enhance the digital infrastructure for government institutions in Europe, focusing on creating secure, compliant, and resilient administrative ecosystems [2][3] Group 1 - The awarded contract emphasizes XBP Europe's leadership in secure public-sector digitization and its role in shaping next-generation digital infrastructure [2] - The project will deliver a government-grade digital chain of custody, ensuring secure access, consistent data quality, and a scalable foundation for future automation and AI-enabled services [2][3] - Services are expected to commence in Q1 2026, following a short mobilization phase, with a structured project governance model overseen by both the authority and XBP Europe [3] Group 2 - XBP Europe is recognized as a trusted modernization partner for high-security public-sector environments, supported by its TR-Resiscan 'Very High' certification and proprietary platforms [3] - The company operates in 20 countries with approximately 11,000 professionals and partners with over 2,500 clients, including many Fortune 100 companies [5][6] - XBP Global focuses on intelligent workflows and hyper-automation, combining innovation with execution excellence to help businesses transform their operations [6][7]

Financial Data and Key Metrics Changes - For Q3 2025, XBP Global reported total consolidated pro forma revenue of $220.4 million, representing an 18.1% year-over-year decrease compared to Q3 2024 on a combined pro forma basis [9] - Excluding a one-time client notification project from Q3 2024, the revenue decline was 8.3%, primarily driven by the completion of client projects and client exits [10] - Pro forma gross margin expanded to 21.9%, up 190 basis points year-over-year, driven by operational efficiencies and better operating leverage [10] - Pro forma adjusted EBITDA was $24.6 million, an increase of 7.1% year-over-year, with an adjusted EBITDA margin increase of 260 basis points to 11.2% [10] Business Line Data and Key Metrics Changes - The applied workflow automation segment, contributing approximately 90% of revenues, experienced a year-over-year revenue decline of 18.9%. Excluding the client notification project, this decline would have been 8% [12][13] - The technology segment, making up about 10% of revenues, saw a revenue decline of 10.2% year-over-year, primarily due to the completion of one-time projects and customer exits [13] - Gross margins in the applied workflow automation segment grew by 160 basis points year-over-year to 17.3% [13] Market Data and Key Metrics Changes - XBP Global serves over 2,500 clients globally, with no single client contributing more than 7.5% of total revenue. The top 10 clients account for 34% of revenue [20] - The company has a well-distributed industry coverage, with significant presence in healthcare and BFSI, but not overly exposed to a single industry [21] Company Strategy and Development Direction - The acquisition of Exela Technologies BPA significantly expands XBP Global's global footprint and enhances capabilities, with a focus on hyperautomation through domain expertise and adaptive AI [4][5] - The company aims to grow the applied workflow automation segment similarly to past growth seen in XBP Europe, focusing on operational efficiencies and automation [12] - XBP Global is investing in new talent and proactive engagement with clients to set up for long-term growth [4] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that perceived financial risks from BPA created sales headwinds, but proactive discussions with clients are ongoing to win back lost business [14][16] - The company is optimistic about its ability to improve win rates through a robust pipeline growth, despite current revenue declines [16] - Guidance for future performance is not provided this quarter due to the recent acquisition, but the company expects to offer guidance in the future [17] Other Important Information - The company emphasizes its commitment to innovation and excellence, as recognized by leading analysts, validating its strategic direction [8] - XBP Global's revenue per employee stands at over $80,000, significantly exceeding the average of approximately $57,000 for its peer group [20] Q&A Session Summary Question: Will the company provide guidance for future performance? - The company is not providing guidance this quarter due to the recent acquisition but expects to offer guidance in the future [17] Question: What is the impact of AI on operations and client services? - The company has achieved automation rates of 70%-75% in marquee AI-enabled accounts, demonstrating significant efficiency gains through AI adoption [18]

Business Combination and Valuation - XBP Global completed its business combination with Exela Technologies BPA, LLC on July 29, 2025, acquiring it for $1.00 amid its voluntary bankruptcy proceedings [278]. - The overall implied equity valuation of the combined company is $585.7 million, reflecting a valuation of BPA equity at $407.0 million [285]. - The business combination was accounted for as a reverse acquisition, treating XBP Europe Holdings, Inc. as the acquired company for financial reporting purposes [281]. Revenue and Segments - XBP Global's revenue primarily comes from transaction processing, including payment processing and data capture, with a focus on the Americas, Europe, and increasing presence in Asia [275]. - The Applied Workflow Automation segment generated $189.4 million in revenue, a decline of $30.9 million, or 14.0%, primarily due to lower postage revenue and project completions [303]. - Technology segment revenue increased by $5.4 million, or 13.4%, to $45.9 million for the nine months ended September 30, 2025, largely due to the inclusion of a newly acquired entity [324]. Financial Performance - For the three months ended September 30, 2025, total revenue decreased by $24.3 million, or 10.4%, to $209.08 million from $233.4 million for the same period in 2024 [302]. - Net revenue for the nine months ended September 30, 2025, decreased by $79.9 million, or 12.0%, to $584.1 million from $664.0 million for the same period in 2024 [322]. - The net loss for the three months ended September 30, 2025, was $305,838 million, while the net profit for the nine months was $1,148,820 million [394][396]. Expenses and Cost Management - Cost of revenue decreased by $26.2 million, or 13.9%, compared to the prior year, with the Applied Workflow Automation segment's cost decreasing by $29.4 million, or 15.9% [305][307]. - Selling, general and administrative expenses increased by $2.1 million, or 7.9%, to $28.9 million, with SG&A expenses as a percentage of revenue rising to 13.8% from 11.5% [309]. - Selling, general and administrative expenses decreased by $22.5 million, or 23.8%, to $71.9 million for the nine months ended September 30, 2025, attributed to lower bad debt provisions and decreased legal fees [329]. Goodwill and Impairment - Goodwill impairment for the three months ended September 30, 2025, was $295.8 million, with $215.8 million related to the Applied Workflow Automation segment and $80.0 million to the Technology segment [311][331]. - The company incurred a significant impairment of goodwill amounting to $295,800,000 during the reporting period [397]. Cash Flow and Liquidity - Cash, restricted cash, and cash equivalents totaled $64.2 million as of September 30, 2025, slightly up from $64.1 million at the end of 2024 [347]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $13.9 million, a significant increase compared to a net cash used of $159.9 million in the same period of 2024, reflecting a change of $173.8 million [354]. - The company expects to continue facing liquidity constraints until all pre-petition liabilities are settled following its emergence from Chapter 11 [350]. Financing and Debt - The company entered into exit financing arrangements, including the issuance of $183.0 million in July 2030 Notes and a $150 million revolving credit facility [288]. - As of September 30, 2025, there were borrowings of $72.1 million outstanding under the ABL Facility, which matures on July 29, 2028 [377]. - The ABL Facility requires maintaining a minimum fixed charge coverage ratio of not less than 0.85 to 1.00 through December 31, 2025 [379]. Strategic Plans and Future Outlook - The company anticipates future growth opportunities driven by its proprietary platforms and automation solutions [274]. - The company plans to explore strategic transactions, including joint ventures and acquisitions, which may require additional funding [398]. - The company may seek to raise additional debt or equity financing through private placements or underwritten offerings to support potential transactions [400].