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]

Core Insights - XBP Global Holdings, Inc. has announced a long-term engagement with Region Uppsala, Sweden's regional public authority, marking a significant step in its strategy to enhance public sector services in Europe [1][3] - The collaboration aims to improve the management of critical healthcare and administrative records through XBP's Plexus workflow platform and XDS technology, ensuring accuracy, security, and operational consistency [2][3] Company Overview - XBP Global is a multinational technology and services company specializing in intelligent workflows, with a presence in 20 countries and approximately 11,000 professionals [5] - The company partners with over 2,500 clients, including many Fortune 100 companies, to facilitate hyper-automation and digital transformation [5][6] Strategic Focus - The engagement with Region Uppsala reflects the trust public institutions have in XBP to enhance service reliability and operational standards [3] - XBP's solutions are designed to support resilient, compliant, and scalable processes that ensure vital information is accurate and accessible when needed [3]

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].

Financial Performance - Reported revenue for Q3 2025 totaled $209.1 million, a decline of 10.4% year-over-year[6] - Combined pro forma revenue for Q3 2025 was $220.4 million, a decrease of 18.1% year-over-year[7] - The net loss for the period was $305.838 million, compared to a net profit of $1.480 billion in the prior period, indicating a significant shift in financial performance[34] - Operating loss for the current period was $292.166 million, compared to a loss of $1.883 million in the previous period, highlighting operational challenges[34] - Pro Forma Revenue for Q3 2025 was $220,433 thousand, down from $269,167 thousand in Q3 2024, reflecting a decrease of approximately 18.1%[39] - Pro Forma Gross Profit for Q3 2025 was $48,328 thousand, compared to $53,872 thousand in Q3 2024, indicating a decline of about 9.4%[39] - Pro Forma Adjusted EBITDA for Q3 2025 was $24.7 million, an increase of 7.4% year-over-year[7] - Pro Forma Adjusted EBITDA for the nine months ended September 30, 2025, was $70,928 thousand, slightly down from $71,711 thousand for the same period in 2024[41] - The company reported a basic and diluted net loss per common share of $2.60 for the current period[34] - Net profit for the period from August 1, 2025, through September 30, 2025, was a loss of $305,838 thousand, compared to a profit of $1,454,658 thousand for the previous period[37] Asset and Liability Management - Total assets increased to $947.932 million as of September 30, 2025, compared to $390.421 million as of December 31, 2024, reflecting significant growth[31] - Total current liabilities amounted to $330.363 million, a decrease from $1.790 billion in the previous period, indicating improved liquidity management[31] - Cash and cash equivalents increased to $34.534 million from $11.635 million, reflecting better cash flow management[31] - The company reported a net cash increase of $20,344 thousand in cash, restricted cash, and cash equivalents, compared to a decrease of $20,174 thousand in the prior period[37] Operational Highlights - Applied Workflow Automation segment reported revenue of $189.4 million, down 14.0% year-over-year[4] - Technology segment revenue increased by 50.3% year-over-year, reaching $19.7 million[4] - Selling, general and administrative expenses rose to $17.980 million from $10.966 million, indicating increased operational costs[34] - Cash flows from operating activities for the period were $13,866 thousand, a significant improvement compared to a cash outflow of $159,942 thousand in the previous period[37] Goodwill and Impairment - Goodwill impairment recorded was $295.800 million, which may impact future earnings and asset valuations[34] - The company incurred a goodwill impairment of $295,800 thousand during the period[41] Strategic Initiatives - The acquisition of Exela BPA was finalized on July 29, 2025, with an equity valuation of $585.7 million[6] - The company is focusing on growth through client outreach and investment in new talent[3] - Future strategies include enhancing corporate governance and expanding agentic AI capabilities[3] Credit and Interest Expenses - Interest expense for the nine months ended September 30, 2025, was $89,506 thousand, compared to $80,118 thousand for the same period in 2024[41] - The company reported a provision for credit losses of $920 thousand for the period[37] - The company had cash paid for debt issuance costs amounting to $1,035 thousand during the period[37] Related Party Transactions - Related party revenue decreased to $4 thousand from $1.487 million, suggesting a decline in transactions with related entities[34]

Core Insights - XBP Global Holdings, Inc. reported its financial results for Q3 2025, highlighting a transformative business combination with Exela BPA and a focus on growth initiatives [2][3]. Financial Performance - Reported revenue for Q3 2025 was $209.1 million, a decrease of 10.4% year-over-year, while combined pro forma revenue was $220.4 million, reflecting an 18.1% decline year-over-year [6][7]. - The gross margin on a reported basis was 22.0%, representing a 310 basis point increase year-over-year, while the pro forma gross margin was 21.9%, a 190 basis point increase year-over-year [6][7]. - Pro forma adjusted EBITDA was $24.7 million, marking a 7.4% increase year-over-year, with an adjusted EBITDA margin of 11.2%, up 260 basis points year-over-year [6][7]. Segment Results - In the Applied Workflow Automation segment, reported revenue was $189.4 million, down 14.0% year-over-year, with a gross margin of 17.7%, an increase of 170 basis points [4]. - The Technology segment saw reported revenue of $19.7 million, a 50.3% increase year-over-year, but with a gross margin of 62.9%, down 500 basis points [4]. Acquisition Details - XBP Europe finalized the acquisition of Exela BPA on July 29, 2025, issuing approximately 81.8 million shares for an equity valuation of $585.7 million, or $4.98 per share [6]. - The acquisition is expected to enhance XBP Global's corporate governance and expand its agentic AI capabilities, positioning the company for future growth [3]. Future Outlook - The CEO expressed optimism about the company's future, emphasizing initiatives in client outreach, investment in talent, and increased engagement with the investor community [3].

Core Insights - XBP Global Holdings, Inc. will host a live conference call on November 14, 2025, at 4:30 pm Eastern Time to discuss its third quarter 2025 financial results [1] - The press release detailing the third quarter results will be issued after market close on the same day [1] Company Overview - XBP Global is a multinational technology and services company specializing in intelligent workflows, with a presence in 20 countries and approximately 11,000 professionals [5] - The company partners with over 2,500 clients, including many Fortune 100 companies, to facilitate hyper-automation [5] - XBP Global utilizes proprietary platforms and agentic AI-driven automation to support digital transformations and workflows across various industries [6]