XBP Europe (US:XBP)2025-11-14 21:37Financial 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]