XBP Global Q2 rev up 17.8% YoY to $39.6 mln, adj. EBITDA up 173.8% YoY.

• XBP Global Holdings acquires Exela Technologies BPA. • Q2 2025 revenue up 17.8% YoY to $39.6 million. • Gross margin increases 1,020 bps YoY to 29.8%. • Adjusted EBITDA up 173.8% YoY to $3.3 million. • Digital transformation focus for clients.

XBP Global Holdings (NASDAQ: XBP) reported robust financial performance for the second quarter of 2025, with revenue up 17.8% year-over-year (YoY) to $39.6 million. The company also achieved a significant improvement in gross margin, which increased by 1,020 basis points to 29.8%. Adjusted EBITDA, a key measure of operational performance, grew by 173.8% YoY to $3.3 million. These results reflect the company's continued digital transformation focus for clients.

The standout achievement for XBP Global in Q2 2025 was the acquisition of Exela Technologies BPA, which formed the new entity XBP Global. This acquisition is expected to generate annual revenue of approximately $900 million, a substantial increase from XBP's current annual revenue of about $158 million. The transaction involved the issuance of approximately 81.8 million new shares and the elimination of $1.1 billion of BPA's secured debt, based on an implied share price of $4.98.

Despite the strong revenue growth and margin expansion, XBP Global reported an operating loss of $1.6 million, which was slightly worse than the $1.4 million loss in Q2 2024. However, after adjusting for non-cash stock compensation and acquisition-related expenses, the company achieved an adjusted operating profit of $1.7 million, a notable turnaround from the $1.2 million adjusted operating loss a year ago. The Adjusted EBITDA margin improved to 8.3%, up 4.7% from last year.

The balance sheet reflects significant cash burn, with cash levels decreasing from $12.1 million at year-end 2024 to $6.1 million at the end of Q2 2025. Total debt stands at approximately $32.3 million, combining current and long-term portions. The company's negative stockholders' equity of $28.3 million worsened from $21.3 million at the end of 2024, indicating continued financial challenges despite operational improvements.

The acquisition of Exela Technologies BPA marks a significant expansion for XBP Global, with the combined entity expecting annual revenue approaching $900 million. The transaction involved issuing 81.8 million new shares and eliminated $1.1 billion of BPA's secured debt based on an implied share price of $4.98. The acquisition expands XBP's global footprint to 20 countries, with approximately 11,000 employees serving over 2,500 clients, including many Fortune 100 companies.

While revenue growth and margin expansion are encouraging, the widening operating losses and deteriorating balance sheet metrics warrant close monitoring as the company integrates its major acquisition.

References:
[1] https://www.stocktitan.net/news/XBP/xbp-global-holdings-inc-reports-second-quarter-2025-ghedw2ewxloh.html