XBP Europe Holdings, Inc. Reports First Quarter 2025 Results

Core Insights - XBP Europe Holdings, Inc. reported financial results for Q1 2025, showing continued revenue growth and gross margin expansion, driven by AI technology and operational improvements [2][4]. Financial Performance - Total revenue for Q1 2025 was $37.7 million, a decrease of 1.2% year-over-year but an increase of 5.7% sequentially [6][7]. - Gross margin improved to 30.1%, reflecting a 380 basis points increase year-over-year and a 190 basis points increase sequentially [6]. - Adjusted EBITDA was $3.7 million, representing a 25.6% increase year-over-year but a 16.1% decrease sequentially [6][7]. Segment Performance - Revenue from the Bills & Payments segment was $26.3 million, down 1.2% year-over-year but up 1.8% sequentially [7]. - Revenue from the Technology segment was $11.4 million, a decrease of 1.0% year-over-year but an increase of 16% sequentially [7]. Operating Loss and Net Loss - The company reported an operating loss of $1.8 million compared to an operating profit of $1.3 million a year ago [7]. - The net loss from continuing operations was $3.9 million, which adjusted for non-cash stock-based compensation, resulted in a net loss of $0 million [7]. Acquisition Plans - XBP Europe has entered into a non-binding letter of intent to acquire Exela Technologies BPA, LLC, which could potentially increase revenue to approximately $1 billion from $143 million on a pro forma basis for the year ending December 31, 2024 [4]. Liquidity Position - As of March 31, 2025, the company had cash and cash equivalents totaling $9.7 million [6].