XBP Global Holdings, Inc. Reports Third Quarter 2025 Results

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].