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]

Core Insights - XBP Global Holdings, Inc. has announced a multi-year contract with a large insurance carrier for its Re-mail processing service, aimed at enhancing mail delivery open rates [1][3] Company Overview - XBP Global is a multinational technology and services company specializing in intelligent business 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 digital transformation and improve customer experiences [5] Service Details - The Re-mail processing service utilizes AI-driven automation and proprietary technology, including Intelligent Document Processing (IDP), to streamline returned mail processes [2][3] - Key features of the service include Automated Address Correction, Intelligent Rerouting, Detailed Reporting, and Secure Handling, which collectively aim to improve renewals and enrollments for guaranteed issue products [3] Benefits - The automated solution is expected to drive higher re-enrollment rates, reduce operational costs, minimize delays in critical communications, and enhance data accuracy [3]

Core Insights - XBP Global Holdings, Inc. has partnered with the New York City Department of Finance to enhance payment processing for parking violation tickets, utilizing its Lockbox Services to streamline transactions and improve user experience [1][2][3] Company Overview - XBP Global is a multinational technology and services company specializing in intelligent business workflows, with a presence in 20 countries and approximately 11,000 professionals [5] - The company serves over 2,500 clients, including many Fortune 100 companies, focusing on accelerating digital transformation and enhancing customer experiences [5][6] Partnership Details - The partnership with the New York City Department of Finance is set for an initial term of six years and aims to provide more payment options, reduce processing times, and enhance security for residents [2][3] - XBP Global's solutions are designed to simplify transactions and improve overall customer experience by reducing cycle times [3] Strategic Goals - The partnership reflects XBP Global's commitment to innovation in the public sector and aims to set new standards for convenience and accessibility in payment services [3] - The company plans to pursue similar opportunities in the future, leveraging its global footprint and technological capabilities [3]