IRVING, Texas, May 14, 2026 (GLOBE NEWSWIRE) -- XBP Global Holdings, Inc. ("XBP Global" or "the Company") $(XBP)$, a multinational technology and services company orchestrating mission-critical systems that enable hyper-automation and digital transformation, today announced its financial results for the quarter ended March 31, 2026.
First Quarter 2026 Highlights
-- Revenue totaled $197.1 million, a decline of 14.2% year-over-year on a
pro forma basis1
-- Gross margin was 22.9%, a 70 basis point increase year-over-year on a pro
forma basis1
-- Net loss of $26.8 million
-- Normalized EBITDA2 of $15.6 million, a decrease of 39.9% year-over-year
on a pro forma basis1
-- Closed $108.1 million of total TCV, a 68.8% increase year-over-year and
45.1% above the trailing four quarter average1,3
-- Closed $27.3 million of new ACV, a 3.7% decrease year-over-year and 4.4%
above the trailing four quarter average1,3
-- The Company expects to achieve $55 to $60 million in annualized
operational efficiencies resulting from Company-wide automation efforts,
with a significant portion of the underlying actions implemented during
the first half of 2026
-- The Company expects an approximate 20% reduction in global headcount by
the end of 2026, subject to the timing and execution of its automation
initiatives compared to year-end 2025, as the Company transitions to a
high-productivity, AI-first operating model
-- Announced approval by XBP's Board of Directors to initiate a formal
process to explore strategic alternatives to enhance value for all
stakeholders
-- Results reflect an ongoing transition in the Company's operating model,
with revenue and earnings trends impacted by legacy contract dynamics,
while bookings and pipeline growth are expected to support future
performance
"Disciplined management and increased automation have resulted in our third consecutive quarter of margin expansion, and we believe these efforts will support a more substantial uplift in the coming quarters," said Andrej Jonovic, CEO of XBP Global. "Our sales pipeline is gaining momentum, we are fundamentally altering our operating model through ambitious use of automation, and we expect this to translate to improved margin profile and materially higher revenue per employee in the second half of the year."
"Separately, we announced today that our Board has approved an exploration of strategic alternatives. We believe this is a necessary step to evaluate opportunities to enhance value for XBP stakeholders, position XBP Global for long-term growth, and create financial flexibility to invest in our core growth engines and AI-first initiatives."
There can be no assurance that the exploration of strategic alternatives will result in any transaction or other strategic outcome, and the Company has not set a timetable for the completion of this process.
First Quarter 2026 Segment Results(4) :
Revenue (in $'000) Gross Margin
Q1
Q1 2026 2025(4) Y/Y (%) Q1 2026 Q1 2025(4) Y/Y (%)
-------- -------- --------- --------- ------------ -------
Applied
Workflow +260
Automation $178,426 $204,253 -12.6% 19.9% 17.3% bps
-930
Technology 18,706 25,431 -26.4% 52.4% 61.7% bps
----------- -------
Total $197,132 $229,686 -14.2% 22.9% 22.2% +70 bps
----------- -------- -------- ----- ----- ------- -------
Below are the notes referenced above:
(1) Pro forma results reflect the combined company as
if the Exela Technologies BPA, LLC (together with
its subsidiaries and certain affiliates "BPA") acquisition
had occurred on January 1, 2024, and include adjustments
to provide period-to-period comparability where the
reported results exclude XBP Europe until July 31,
2025.
(2) Normalized EBITDA is a non-GAAP measure. A reconciliation
of non-GAAP measures is attached to this release.
(3) Total Contract Value ("TCV") represents the initial
estimated revenue related to contracts signed in the
period without regard for early termination or revenue
recognition rules. Changes to contracts and scope
are treated as TCV only to the extent of the incremental
new value. New TCV represents TCV attributable to
expansion and new scope for existing clients, as well
as TCV attributable to new clients. Annual contract
value ("ACV") represents the annualized value of the
TCV, calculated by dividing the TCV of each individual
contract by its respective duration in years.
(4) Presented on a pro forma basis for the combined company,
as if the acquisition of BPA had been consummated
on January 1, 2024.
Earnings Call and Supplemental Investor Presentation
The Company will host a live conference call at 5:00 pm Eastern Time on May 14, 2026, accompanied by a live webcast. Hosting the call will be Andrej Jonovic, Chief Executive Officer, Dejan Avramovic, Chief Financial Officer, and Mike Shufeldt, Chief Revenue Officer.
Participant Call-In Registration: Participants who wish to join the conference by telephone must register using the following dial-in registration link to receive the dial-in number and a personalized PIN code that will be required to access the call: https://register-conf.media-server.com/register/BIf2fe6a6b62164945946dae9bd02995a5.
Participant Live Webcast Registration: To access the live webcast, please visit https://edge.media-server.com/mmc/p/svpo92yg or XBP Global's Investor Relations website at https://investors.xbpglobal.com/.
Rebroadcast: Following the live webcast, a replay will be available on XBP Global's Investor Relations website.
An investor presentation relating to our first quarter 2026 performance will be available at https://investors.xbpglobal.com.
About Pro Forma Financial Information
This press release includes certain pro forma financial information, which is presented for informational purposes only and is not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Pro forma results are presented on an unaudited basis as if the acquisition of BPA had been consummated on January 1, 2024, regardless of the actual closing date.
For financial reporting purposes, BPA is treated as the accounting acquirer, and results exclude XBP Europe until July 31, 2025. As a result, reported results for periods prior to July 31, 2025 are not comparable to previous annual earnings results presented by the Company.
Pro forma financial information is intended to provide investors with a clearer understanding of the underlying performance and trends of the combined business by illustrating the impact of the acquisition on historical results. These results are designed to facilitate period-to-period comparisons and enhance transparency into ongoing operations.
Pro forma information is based on certain assumptions and adjustments, including the elimination of intercompany transactions, acquisition-related costs, and the alignment of accounting policies, as described in the accompanying tables and footnotes. This information is unaudited and does not purport to represent what actual results would have been had the acquisition occurred at the dates indicated, nor does it project future results.
Pro forma financial information should be read in conjunction with historical financial statements, related notes, and the pro forma adjustments and explanatory notes included in this release.
About Non-GAAP Financial Measures
This press release also includes certain non-GAAP financial measures, including EBITDA, Normalized EBITDA, and Pro Forma Normalized EBITDA, which are not prepared in accordance with GAAP.
Management believes these non-GAAP measures are useful supplemental measures; however, investors are encouraged to review the Company's GAAP results and not rely on any single financial measure.
These measures provide investors with additional insight into financial performance, results of operations, and liquidity, and help facilitate comparisons of underlying business trends across periods. Management uses these measures to evaluate performance consistently by excluding the effects of capital structure (such as varying debt levels, interest expense, and transaction costs from acquisitions).
We define EBITDA as net income (loss), plus taxes, interest expense, and depreciation and amortization. We define Normalized EBITDA as EBITDA plus non-recurring transaction costs, non-cash equity compensation, restructuring and related expenses, loss/(gain) on sale of assets, impairment of goodwill and other non-recurring items such as reorganization items. We define Pro Forma Normalized EBITDA as Normalized EBITDA plus management's estimates of the impact of the accounting acquisition of XBP Europe and reorganization of BPA, had such transactions occurred at the beginning of the earliest period presented. Non-GAAP financial measures should not be considered in isolation or as alternatives to liquidity or financial measures determined in accordance with GAAP. A limitation of these measures is that they exclude significant expenses and income required by GAAP to be recorded in the financial statements. In addition, the determination of which items to exclude or include requires the application of management judgement, and these measures may not be comparable to similarly titled measures reported by other companies.
These measures are not required to be uniformly applied, are unaudited, and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP, and their presentation may not be comparable to similar measures used by other companies. Net loss is the GAAP measure most directly comparable to the non-GAAP measures presented here. For a reconciliation of the comparable GAAP measures to these non-GAAP financial measures, see the schedules attached to this release.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. These statements include financial forecasts, projections, and other statements about future operations, financial position, business strategy, market opportunities, and trends. Forward-looking statements can often be identified by terms such as "may, " "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "plan," "targets," "projects," "could," "would," "continue," "forecast," or similar expressions. All forward-looking statements are based on estimates, forecasts, and assumptions that are inherently uncertain and subject to risks and factors that could cause actual results to differ materially. These include, but are not limited to: (1) risks related to the acquisition and related restructuring, including the inability to realize anticipated benefits, disruptions to operations, and costs associated with the acquisition; (2) legal proceedings; (3) failure to maintain compliance with Nasdaq listing standards; (4) competition and market conditions; (5) economic, geopolitical, and regulatory changes; (6) challenges in retaining clients, employees, and suppliers; and (7) other risks detailed in the Company's filings with the SEC, including the "Risk Factors" section of its Annual Report on Form 10-K for 2025. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. XBP Global undertakes no obligation to update these statements, except as required by law. There is no assurance that XBP Global or its subsidiaries will achieve the results projected in these statements.
About XBP Global
XBP Global is a multinational technology and services company powering intelligent workflows for organizations worldwide. With a presence in 20 countries and approximately 10,200 employees, XBP Global partners with over 2,000 clients, including many of the Fortune 100, to orchestrate mission-critical systems that enable hyper-automation.
Our proprietary platforms, agentic AI-driven automation, and deep domain expertise across industries and the public and private sectors enable our clients to entrust us with their most impactful digital transformations and workflows. By combining innovation with execution excellence, XBP Global helps businesses reimagine how they work, transact, and unlock value.
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The information posted on XBP Global's website and/or via its social media accounts may be deemed material to investors. Accordingly, investors, media and others interested in XBP Global should monitor XBP Global's website and its social media accounts in addition to XBP Global's press releases, SEC filings and public conference calls and webcasts.
XBP Global Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of March 31, 2026 (Successor) and December 31,
2025 (Successor)
(in thousands of United States dollars except share
and per share amounts)
Successor
--------------------------------
Consolidated
--------------------------------
March 31,
2026 December 31,
(Unaudited) 2025
-------------- ----------------
Assets
Current assets
Cash and cash equivalents $ 28,464 $ 37,113
Restricted cash 24,639 31,553
Accounts receivable, net of allowance
for credit losses of $4,927 and
$5,660, respectively 130,253 130,281
Related party receivables and prepaid
expenses 987 736
Inventories, net 11,385 11,365
Prepaid expenses and other current
assets 26,681 28,699
--------- ---------
Total current assets 222,409 239,747
Property, plant and equipment, net of
accumulated depreciation of $15,074
and $11,094, respectively 78,055 82,956
Operating lease right-of-use assets,
net 27,856 30,339
Goodwill 189,881 189,881
Intangible assets, net 335,232 344,080
Other noncurrent assets 18,008 15,094
--------- ---------
Total assets $ 871,441 $ 902,097
--------- ---------
Liabilities and Stockholders' Equity
Liabilities
Current liabilities
Current portion of long-term debt $ 32,260 $ 34,334
Accounts payable 69,775 55,700
Related party payables 4,968 5,343
Income tax payable 5,747 6,158
Accrued liabilities 51,987 47,101
Accrued compensation and benefits 56,892 56,314
Accrued interest 9,374 13,685
Customer deposits 18,359 21,691
Deferred revenue 14,197 11,881
Obligation for claim payment 53,203 55,632
Current portion of finance lease
liabilities 4,325 4,390
Current portion of operating lease
liabilities 9,592 9,814
--------- ---------
Total current liabilities 330,679 322,043
--------- ---------
Long-term debt, net of current
maturities 348,947 353,267
Finance lease liabilities, net of
current portion 5,818 6,857
Net defined benefit liability 6,161 6,241
Deferred income tax liabilities 48,546 52,595
Long-term income tax liabilities 11,188 10,554
Operating lease liabilities, net of
current portion 20,224 22,530
Other long-term liabilities 37,318 40,671
--------- ---------
Total liabilities 808,881 814,758
--------- ---------
Commitments and Contingencies (Note
9)
Stockholders' Equity
Common stock, par value of $0.0001 per
share; 400,000,000 shares authorized;
11,768,050 shares issued and
outstanding as of March 31, 2026 and
11,755,434 shares issued and
outstanding as of December 31, 2025 12 12
Preferred stock, par value of $0.0001
per share; 20,000,000 shares
authorized; none issued and
outstanding as of March 31, 2026 and
December 31, 2025 -- --
Additional paid in capital 438,406 437,995
Accumulated deficit (377,885) (351,123)
Accumulated other comprehensive
profit (loss):
Foreign currency translation
adjustment 419 (1,263)
Unrealized pension actuarial gains,
net of tax 1,608 1,718
--------- ---------
Total accumulated other comprehensive
profit 2,027 455
--------- ---------
Total stockholders' equity 62,560 87,339
--------- ---------
Total liabilities and stockholders'
equity $ 871,441 $ 902,097
--------- ---------
XBP Global Holdings, Inc. and Subsidiaries
Condensed Consolidated and Combined Statements of
Operations
For the three months ended March 31, 2026 (Successor)
and March 31, 2025 (Predecessor)
(in thousands of United States dollars except share
and per share amounts)
(Unaudited)
Successor Predecessor
------------------------- -------------------------
Consolidated Combined and Consolidated
------------------------- -------------------------
Three Months Ended March Three Months Ended March
31, 31,
2026 2025
-------------------- --- -------------------- ---
Revenue $ 197,085 $ 190,495
Related party
revenue 47 1,484
Cost of revenue
(exclusive of
depreciation and
amortization) 151,897 150,645
Selling, general
and
administrative
expenses
(exclusive of
depreciation and
amortization) 42,814 22,262
Depreciation and
amortization 14,849 10,535
Related party
expense, net 2,653 2,553
-------------- --- ---- -------------- ---
Operating profit
(loss) (15,081) 5,984
Other expense
(income), net:
Interest
expense, net 14,069 23,780
Debt
modification
and
extinguishment
costs, net -- 109
Sundry expense
(income), net (392) 1,312
Other income,
net (561) (23)
-------------- ---- --------------
Loss before
reorganization
items and income
taxes (28,197) (19,194)
Reorganization
items -- (60,845)
-------------- --- ---- --------------
Profit (loss)
before income
taxes (28,197) 41,651
Income tax
expense
(benefit) (1,435) 2,028
---- -------------- ---- -------------- ---
Net profit (loss) $ (26,762) $ 39,623
---- -------------- ---- -------------- ---
Net loss per
common share
Basic and
diluted (2.28)
XBP Global Holdings, Inc. and Subsidiaries
Condensed Consolidated and Combined Statements of
Cash Flows
For the three months ended March 31, 2026 (Successor)
and March 31, 2025 (Predecessor)
(in thousands of United States dollars except share
and per share amounts)
(Unaudited)
Successor Predecessor
----------------------- --------------------------
Consolidated Combined and Consolidated
----------------------- --------------------------
Three Months Ended Three Months Ended March
March 31, 31,
2026 2025
------------------- --------------------- ---
Cash flows from
operating
activities
Net profit (loss) $ (26,762) $ 39,623
Adjustments to
reconcile net
profit (loss) to
cash used in
operating
activities
Depreciation and
amortization 14,849 10,535
Original issue
discount, debt
premium and debt
issuance cost
amortization 1,832 (17,272)
Reorganization
items -- (81,383)
Interest on BR
Exar AR
Facility -- (669)
Debt modification
and
extinguishment
loss (gain),
net -- 109
Provision for
credit losses (611) 488
Deferred income
tax provision (4,182) 375
Equity-based
compensation
expense 484 105
Unrealized
foreign currency
loss 37 3
Loss on sale of
assets 225 --
Fair value
adjustment for
private warrants
liability (2) --
Payment-in-kind
interest 1,174 --
Change in
operating assets
and liabilities,
net of effect
from
acquisitions
Accounts
receivable 639 (26,379)
Prepaid expenses
and other
current assets (1,109) 1,817
Accounts payable
and accrued
liabilities 9,148 29,181
Related party
receivables
(payables) (626) (185)
Additions to
outsourced
contract costs (141) (67)
--- -------------- ---- ---------------
Net cash used
in operating
activities (5,045) (43,719)
--- -------------- ---- ---------------
Cash flows from
investing
activities
Purchase of
property, plant
and equipment (1,088) (1,270)
Additions to
internally
developed
software (552) (506)
Proceeds from sale
of assets 84 3
--- -------------- ---- --------------- ---
Net cash used
in investing
activities (1,556) (1,773)
--- -------------- ---- ---------------
Cash flows from
financing
activities
Cash paid for debt
issuance costs (834) (57)
Cash paid for
withholding taxes
on vested RSUs (73) --
Principal payments
on finance lease
obligations (1,101) (1,194)
Borrowings from
other loans 10,236 441
Proceeds from
Super Senior Term
Loan 4,000 --
Proceeds from ABL
Facility 133,700 --
Repayments on ABL
Facility (141,376) --
Repayment of Second
Lien Note (3,250) --
Proceeds from DIP
New Money Loans -- 50,000
Borrowing under BR
Exar AR Facility -- 10,675
Repayments under BR
Exar AR Facility (1,440) (12,286)
Borrowing under
Amended BR Exar AR
Facility 20,000 --
Repayments under
Amended BR Exar AR
Facility (10,290) --
Repayments on 2028
Term Loan
Facilities (817) --
Principal
repayments on
senior secured
term loans and
other loans (17,208) (9,326)
--- -------------- ---- ---------------
Net cash
provided by
(used in)
financing
activities (8,453) 38,253
--- -------------- ---- --------------- ---
Effect of exchange
rates on cash,
restricted cash
and cash
equivalents (509) 108
--- -------------- ---- --------------- ---
Net decrease
in cash,
restricted
cash and cash
equivalents (15,563) (7,131)
Cash, restricted
cash and cash
equivalents
Beginning of period 68,666 64,067
--- -------------- ---- --------------- ---
End of period $ 53,103 $ 56,936
--- -------------- ---- --------------- ---
Supplemental cash
flow data:
Income tax
payments, net of
refunds received $ 1,261 $ 1,219
Interest paid 14,705 4,356
Cash paid for
reorganization
items -- 20,538
Noncash investing
and financing
activities:
Assets acquired
through
right-of-use
arrangements 467 2,315
Amendment fee
payable on Amended
BR Exar Facility
accrued 1,000 --
Accrued capital
expenditures 46 3
Reconciliation of Revenue and Gross Profit As Reported
to Combined Pro Forma Revenue and Gross Profit for
the Three Months Ended March 31, 2026
(in thousands of United States dollars)
(Unaudited)
Q1 2026 Q1 2025
------------------------------------------------- -------- --------
As Reported Revenue $197,132 $191,979
Intercompany Eliminations -1,626
Revenue Adjustment for XBP Europe 39,332
------------------------------------------------- -------- --------
Pro Forma Revenue $197,132 $229,686
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