XBP Europe invites individual and institutional investors, as well as advisors and analysts, to attend its real-time, interactive presentation at the Emerging Growth ConferenceLONDON and SANTA MONICA, Calif., May 21, 2025 (GLOBE NEWSWIRE) -- XBP Europe Holdings, Inc. (“XBP Europe” or “the Company”) (NASDAQ: XBP), a pan-European integrator of bills, payments, and related solutions and services seeking to enable the digital transformation of its clients, is pleased to announce that it will be giving an update ...

First Quarter 2025 Highlights Revenue of $37.7 million, a decrease of 1.2% year-over-year and increase of 5.7% sequentiallyGross margin of 30.1%, a 380 bps increase year-over-year and 190 bps increase sequentiallyAdjusted EBITDA of $3.7 million, an increase of 25.6% year-over-year and decrease of 16.1% sequentially LONDON and Santa Monica, Calif., May 15, 2025 (GLOBE NEWSWIRE) -- XBP Europe Holdings, Inc. (“XBP Europe” or “the Company”) (NASDAQ: XBP), a pan-European integrator of bills, payments, and relate ...

Exhibit 99.1 XBP Europe Holdings, Inc. Reports First Quarter 2025 Results LONDON, UK and Santa Monica, CA, May 15, 2025 (GLOBE NEWSWIRE) – XBP Europe Holdings, Inc. ("XBP Europe" or "the Company") (NASDAQ: XBP), a pan-European integrator of bills, payments, and related solutions and services seeking to enable the digital transformation of its clients, announced today its financial results for the quarter ended March 31, 2025. May 15, 2025 First Quarter 2025 Highlights "Our strong momentum continued into 202 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40206 XBP Europe Holdings, Inc. (Exact Name of Registrant as Specified in its Charter) (State of or other Jurisdiction ...

Financial Performance - Total revenue for 2024 was $142.8 million, a decline of 8.0% year-over-year, primarily due to project completions and lower volumes [4]. - Gross margin for the full year was 26.8%, reflecting a 110 basis points increase year-over-year [4]. - Operating profit for 2024 was $3.5 million, an increase of $2.4 million compared to 2023 [4]. - Adjusted EBITDA from continuing operations was $13.4 million, a decrease of 15.1% compared to 2023, with an adjusted EBITDA margin of 9.4% [5]. - The company reported a net loss from continuing operations of $6.5 million, compared to a net loss of $5.6 million in 2023 [5]. - Net loss for 2024 was $12,366,000, compared to a net loss of $11,047,000 in 2023, reflecting a 12.0% increase in losses [16]. - Adjusted EBITDA from continuing operations decreased to $13,390,000 in 2024 from $15,774,000 in 2023, a decline of 15.1% [20]. Revenue Breakdown - Bills & Payments segment revenue was $101.9 million, a decline of 7.8% year-over-year, while Technology segment revenue was $40.9 million, a decrease of 8.5% year-over-year [5]. - Total revenue for 2024 was $142,408,000, a decrease of 8.0% from $154,943,000 in 2023 [16]. Liquidity and Assets - Cash and cash equivalents totaled $12.1 million as of December 31, 2024, indicating adequate liquidity [6]. - Cash and cash equivalents increased to $12,106,000 at the end of 2024, up from $6,905,000 at the end of 2023, representing a 75.0% increase [18]. - Total assets decreased to $88,045,000 in 2024 from $102,739,000 in 2023, a reduction of 14.3% [15]. - Total liabilities decreased to $109,391,000 in 2024 from $115,307,000 in 2023, a decline of 5.5% [15]. - Accounts receivable decreased to $19,810,000 in 2024 from $30,238,000 in 2023, a decrease of 34.5% [15]. Strategic Initiatives - The company signed a non-binding letter of intent to acquire Exela Technologies BPA, LLC, which could potentially expand revenue to approximately $1 billion annually [4][7]. - The company is optimistic about its organic growth trajectory in 2025 and is pursuing the acquisition to benefit from global scale [2]. - Approximately $25 million of annual contract value (ACV) was in active ramp, contributing to improved margins in the second half of 2024 [4]. Other Financial Impacts - The company reported a foreign currency exchange impact of $(1,055,000) on revenues, indicating the effect of currency fluctuations on financial performance [19]. - The company incurred $1,611,000 in stock-based compensation expense in 2024, reflecting ongoing investment in employee incentives [20].

Full Year 2024 Highlights - Total revenue for 2024 was $142.8 million, a decline of 8.0% year-over-year, primarily due to project completions and lower volumes [6][7] - Gross margin improved to 26.8%, an increase of 110 basis points year-over-year [6] - Operating profit increased to $3.5 million, up $2.4 million from 2023, driven by higher gross margins and cost optimizations [6][7] - Net loss from continuing operations was $6.5 million, compared to a net loss of $5.6 million in 2023 [7][19] - Adjusted EBITDA from continuing operations was $13.4 million, a decrease of 15.1% compared to 2023 [7][25] Fourth Quarter 2024 Highlights - Revenue for Q4 2024 was $35.6 million, a decrease of 7.5% year-over-year but an increase of 0.7% sequentially [6][7] - Gross margin for Q4 was 28.3%, a 480 basis point increase year-over-year [6] - Operating profit for Q4 was $1.0 million, an increase of $3.4 million year-over-year [6][7] - Net loss for Q4 was $2.7 million, which included $0.5 million of foreign exchange losses [6] Segment Revenue and Profitability - Bills & Payments segment revenue was $101.9 million, a decline of 7.8% year-over-year [7][9] - Technology segment revenue was $40.9 million, a decrease of 8.5% year-over-year [7][9] - Segment gross profit for Bills & Payments was $16.4 million, while for Technology it was $21.9 million for the full year [9] Pending Acquisition - XBP Europe has signed a non-binding letter of intent to acquire Exela Technologies BPA, LLC, which could potentially increase annual revenue to approximately $1 billion [4][8] - The acquisition is contingent upon Exela completing a corporate reorganization to create a sustainable capital structure [8] Liquidity and Capital Expenditures - Cash and cash equivalents totaled $12.1 million as of December 31, 2024, compared to $6.5 million in 2023 [7][17] - Capital expenditures were 1.2% of revenue, down from 1.7% in 2023 [7]

Financial Performance - For the year ended December 31, 2024, the company reported a net loss of $12.366 million, compared to a net loss of $11.047 million in 2023, representing an increase in loss of approximately 11.97%[426]. - Revenue for the year ended December 31, 2024, was $142.408 million, down from $154.943 million in 2023, indicating a decrease of about 8.06%[426]. - The company reported an operating profit of $3.472 million for 2024, compared to $1.117 million in 2023, reflecting an increase of approximately 211.5%[426]. - The company’s accumulated deficit increased from $11.339 million in 2023 to $23.705 million in 2024, representing a growth of approximately 109.5%[425]. - The net loss for the year ended December 31, 2024, was $12,366,000, compared to a net loss of $11,047,000 for 2023, representing an increase in loss of approximately 11.9%[433]. - The Company recorded a net revenue of $8.064 million from discontinued operations for the year ended December 31, 2024, down from $11.393 million in 2023, representing a decrease of approximately 29.5%[449]. - The net loss from discontinued operations, after income taxes, was $5.833 million for 2024, compared to a loss of $5.479 million in 2023, reflecting an increase in loss of approximately 6.4%[449]. Assets and Liabilities - The company's total current assets decreased from $49.867 million in 2023 to $41.338 million in 2024, a decline of approximately 17.3%[425]. - Total liabilities decreased from $115.307 million in 2023 to $109.391 million in 2024, a reduction of about 5.3%[425]. - The company’s cash and cash equivalents increased from $6.537 million in 2023 to $12.099 million in 2024, an increase of approximately 85.5%[425]. - Accounts receivable, net decreased to $19.8 million as of December 31, 2024, down from $30.2 million in 2023[491]. - Total current liabilities held for sale were $2.443 million as of December 31, 2024, compared to $3.818 million in 2023, showing a decrease of approximately 36%[450][451]. - Total accrued liabilities decreased from $23,850 thousand in 2023 to $17,993 thousand in 2024, representing a reduction of about 24.6%[545]. Cash Flow and Financing - Cash used in operating activities for 2024 was $5,227,000, a significant increase from $1,535,000 in 2023[433]. - The Company incurred interest expense of $0.6 million related to the Secured Borrowing Facility in 2023, which was eliminated in 2024[547]. - The outstanding balances payable under the Secured Borrowing Facility decreased from $0.1 million in 2023 to $0 in 2024[547]. - The Company repaid a total of $1.9 million under the Term Loan A Facility, $0.4 million under the Term Loan B Facility, and $6.4 million under the Revolving Credit Facility during the year ended December 31, 2024[551]. - The maturity of the Revolving Credit Facility was further extended to August 31, 2025 on May 10, 2024[551]. Operational Challenges - The company is uncertain about achieving continued and sustained profitability[17]. - The company may need to raise debt or equity financing, which could be on unfavorable terms[18]. - The company's revenues are highly dependent on the banking and finance industries, and any decrease in demand could reduce revenues[24]. - The company faces significant competition, including from clients who may choose to perform business processes in-house[22]. - The company relies on ETI, which is a highly leveraged company facing substantial doubt about its ability to continue as a going concern[18]. - The company may not be able to offset increased costs with increased fees under its contracts[22]. - The company is subject to regular client and third-party security reviews, and failure to pass these may adversely impact operations[27]. - The invasion of Ukraine by Russia and the resulting sanctions have caused significant economic disruption[31]. Shareholder Information - The company does not expect to declare any dividends in the foreseeable future[34]. - The company reported a total of 30,166,102 shares of common stock outstanding following the business combination[444]. - The weighted average common shares outstanding increased from 22,535,920 in 2023 to 30,166,102 in 2024[515]. - Basic and diluted loss per share for continuing operations improved from $(0.25) in 2023 to $(0.22) in 2024[515]. Expenses and Costs - The company incurs significant increased expenses and administrative burdens as a result of being a public company[35]. - The Company recognized stock-based compensation expense of $1,611,000 in 2024, compared to no such expense in 2023[433]. - Research and development expenses were $0.6 million for the year ended December 31, 2024, down from $0.9 million in 2023[502]. - Advertising expenses increased to $0.2 million in 2024 from $0.1 million in 2023[500]. - Restructuring charges for the years ended December 31, 2024 and 2023 were $1.1 million and $4.3 million, respectively[504]. Currency and Translation Adjustments - Foreign currency translation adjustments resulted in a gain of $1.890 million in 2024, compared to a loss of $2.995 million in 2023[429]. - Foreign exchange losses were $2.5 million in 2024, compared to $0.6 million in 2023[512]. - The company’s foreign currency translation adjustment resulted in a loss of $1,416,000 for the year ended December 31, 2023[431]. Goodwill and Impairment - The Company recorded an impairment charge of $0.1 million related to goodwill for the year ended December 31, 2024[449]. - The impairment of goodwill recorded in 2024 was due to the classification of certain operations as held for sale, indicating a significant strategic shift[449]. - The Company recorded a goodwill impairment of $0.1 million in discontinued operations for the year ended December 31, 2024[473].

Core Viewpoint - XBP Europe Holdings, Inc. has entered into a non-binding letter of intent to acquire Exela Technologies BPA, LLC, which will significantly increase XBP Europe's revenue and enhance its market position in business process automation solutions [1][2]. Company Overview - XBP Europe is a pan-European integrator focused on bills, payments, and related solutions, serving over 2,000 clients across various industries including banking, healthcare, and public sector [3]. - The company aims to facilitate digital transformation and optimize clients' billing and payment processes through proprietary software and cloud-based solutions [3]. - XBP Europe operates in 15 countries with a workforce of approximately 1,500 employees [3]. Exela Technologies BPA Overview - BPA is a leading provider of business process automation solutions, serving over 1,550 customers globally [4]. - The company utilizes proprietary technology to enhance quality, productivity, and user experience across various sectors including finance, healthcare, and legal management [4]. - BPA employs around 11,000 individuals and operates in 5 countries, providing integrated technology and operations as a digital journey partner [4]. Transaction Details - The acquisition, if completed, will increase XBP Europe's revenue from $145 million to over $1 billion on a pro forma basis for the twelve months ending September 30, 2024 [1]. - The transaction is contingent upon BPA completing a corporate reorganization to achieve a sustainable capital structure [1]. - Both parties are committed to negotiating definitive agreements and completing due diligence, although there is no guarantee that the transaction will be finalized [2].

Core Insights - XBP Europe Holdings, Inc. has been selected as a supplier for the AGIRC-ARRCO framework, which is valued at over €25 million for all suppliers, to provide data processing and payment services [1][2][3] Group 1: Company Overview - XBP Europe is a pan-European integrator focused on bills, payments, and related solutions, aiming to facilitate digital transformation for over 2,000 clients across various sectors including banking, healthcare, and public services [5] - The company operates in 15 countries with a workforce of approximately 1,500 individuals, leveraging a cloud-based structure to deploy its solutions across Europe, the Middle East, and Africa [5] Group 2: AGIRC-ARRCO Framework - AGIRC-ARRCO manages a compulsory supplementary pension scheme for private-sector employees in France, collecting contributions from 27 million employees and 1.8 million companies, and disbursing €90 billion annually [2] - XBP Europe will collaborate with three other suppliers to support pension applications and administrative services related to pension contributions, utilizing its advanced IDP/TTY, workflow solutions, and Digital Mailroom platforms [3][4] Group 3: Strategic Importance - The partnership with AGIRC-ARRCO enhances XBP Europe's reputation as a trusted partner in digital transformations, emphasizing its expertise in data digitization and workflow automation to ensure operational efficiency and accuracy [4]

Core Insights - XBP Europe Holdings, Inc. has been registered with the European Payments Council as a vendor of Verification of Payee (VOP) services, positioning the company to assist organizations in the Eurozone with compliance to new instant payment regulations [1][2] - The VOP regulations, effective by October 5, 2025, aim to reduce annual losses in the payments industry, which amount to approximately $120 billion due to erroneous payments and fraud [2] - XBP Europe's cloud-based VOP solution is distinguished in the market, utilizing deterministic AI technologies to enhance accuracy in verifying payee accounts, thereby minimizing false positives and negatives [3][4] Company Overview - XBP Europe has nearly 30 years of experience in account name verification and was an early adopter of the UK's equivalent service, Confirmation of Payee (CoP), supporting over 400 banks [4][5] - The company operates across 15 countries with a workforce of approximately 1,500 individuals, providing services to over 2,000 clients in various sectors including banking, healthcare, and utilities [7] - XBP Europe aims to facilitate digital transformation and improve market liquidity by expediting payments, while also promoting sustainable business practices [7]