Q4 2025 XBP Global Holdings Inc Earnings Call Transcript
Key Points
- XBP Global Holdings Inc (XBP) successfully completed the transformative acquisition of Exela Technologies BPA, integrating European and Americas/Asia businesses into one platform.
- The company is focusing on becoming an AI-led organization, which is expected to expand margins and improve operational efficiency.
- XBP Global Holdings Inc (XBP) has a diversified client base with over 2,500 clients, and no single client accounts for more than 7.5% of revenue, reducing dependency on any single client.
- The company reported a significant increase in new TCV bookings, up 53.2% year over year in the fourth quarter, indicating strong sales momentum.
- Gross margins have improved, with a 200 basis point increase over the last two quarters, driven by automation and cost efficiency efforts.
- Pro forma revenue for the full year 2025 was down 13.6% year over year, primarily due to project completions and client exits.
- Normalized EBITDA decreased by 13.7% year over year, with a flat EBITDA margin of 10.3%, indicating challenges in maintaining profitability.
- The company experienced a 15.1% year-over-year decline in fourth-quarter revenue, attributed to restructuring-related client exits.
- Operating cash flows were negatively impacted by transaction-related cash outflows and pre-petition liabilities exceeding $21 million.
- Sales cycles remain long, and macroeconomic headwinds are creating challenges in converting sales momentum into immediate revenue growth.
Hello, and welcome to the XBP Global fourth-quarter 2025 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
It is now my pleasure to introduce Head of Investor Relations, David Shamis.
Thank you, and good afternoon, everyone. Welcome to XBP Global's fourth-quarter and full-year 2025 earnings call. Joining me are CEO, Andrej Jonovic; and CFO Dejan Avramovic.
Before we begin, please note that today's remarks may contain forward-looking statements, including statements regarding our future performance, outlook, and strategy. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those described. For a detailed discussion on these risks and uncertainties, please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our proxy statement
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