XBP Europe Holdings, Inc. Reports Fourth Quarter and Full Year 2024 Results
XBP Europe Holdings (NASDAQ: XBP) reported its Q4 and full-year 2024 results, showing mixed financial performance. The company's full-year revenue declined 8.0% to $142.8 million, while gross margin improved 110 bps to 26.8%. Operating profit increased by $2.4 million to $3.5 million.
Q4 2024 highlights include revenue of $35.6 million (down 7.5% YoY), gross margin of 28.3% (up 480 bps YoY), and operating profit of $1.0 million. The company reported a net loss of $2.7 million for Q4, including $0.5 million in FX losses.
Notably, XBP Europe has signed a non-binding LOI to acquire Exela Technologies BPA, , which could potentially expand the company's annual revenue to approximately $1 billion. The company maintains adequate liquidity with $12.1 million in cash and cash equivalents as of December 31, 2024, and has approximately $25M of ACV in active ramp.
XBP Europe Holdings (NASDAQ: XBP) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, mostrando una performance finanziaria mista. I ricavi annuali dell'azienda sono diminuiti dell'8,0% a 142,8 milioni di dollari, mentre il margine lordo è migliorato di 110 punti base, raggiungendo il 26,8%. L'utile operativo è aumentato di 2,4 milioni di dollari, arrivando a 3,5 milioni di dollari.
I punti salienti del quarto trimestre 2024 includono ricavi di 35,6 milioni di dollari (in calo del 7,5% rispetto all'anno precedente), un margine lordo del 28,3% (in aumento di 480 punti base rispetto all'anno precedente) e un utile operativo di 1,0 milione di dollari. L'azienda ha riportato una perdita netta di 2,7 milioni di dollari per il quarto trimestre, inclusi 0,5 milioni di dollari di perdite da cambio.
È importante notare che XBP Europe ha firmato una lettera di intenti non vincolante per acquisire Exela Technologies BPA, il che potrebbe potenzialmente espandere i ricavi annuali dell'azienda a circa 1 miliardo di dollari. L'azienda mantiene una liquidità adeguata con 12,1 milioni di dollari in contanti e equivalenti di cassa al 31 dicembre 2024 e ha circa 25 milioni di dollari di ACV in ramp attivo.
XBP Europe Holdings (NASDAQ: XBP) informó sus resultados del cuarto trimestre y del año completo 2024, mostrando un desempeño financiero mixto. Los ingresos anuales de la empresa disminuyeron un 8.0% a $142.8 millones, mientras que el margen bruto mejoró 110 puntos básicos, alcanzando el 26.8%. La utilidad operativa aumentó en $2.4 millones, alcanzando los $3.5 millones.
Los aspectos destacados del cuarto trimestre de 2024 incluyen ingresos de $35.6 millones (una disminución del 7.5% interanual), un margen bruto del 28.3% (un aumento de 480 puntos básicos interanuales) y una utilidad operativa de $1.0 millón. La empresa reportó una pérdida neta de $2.7 millones para el cuarto trimestre, incluyendo $0.5 millones en pérdidas cambiarias.
Es notable que XBP Europe ha firmado una carta de intención no vinculante para adquirir Exela Technologies BPA, lo que podría expandir potencialmente los ingresos anuales de la empresa a aproximadamente $1 mil millones. La empresa mantiene una liquidez adecuada con $12.1 millones en efectivo y equivalentes de efectivo al 31 de diciembre de 2024, y tiene aproximadamente $25 millones de ACV en rampa activa.
XBP 유럽 홀딩스 (NASDAQ: XBP)는 2024년 4분기 및 전체 연도 실적을 발표하며 혼합된 재무 성과를 보였습니다. 회사의 연간 수익은 8.0% 감소하여 1억 4280만 달러에 달했으며, 총 이익률은 110bp 개선되어 26.8%에 도달했습니다. 운영 이익은 240만 달러 증가하여 350만 달러에 이르렀습니다.
2024년 4분기 주요 내용으로는 3560만 달러의 수익(전년 대비 7.5% 감소), 28.3%의 총 이익률(전년 대비 480bp 증가), 100만 달러의 운영 이익이 포함됩니다. 회사는 4분기에 270만 달러의 순손실을 보고했으며, 이중 50만 달러는 환손실로 인한 것입니다.
특히, XBP 유럽은 Exela Technologies BPA 인수를 위한 비구속적인 LOI를 체결했으며, 이는 회사의 연간 수익을 약 10억 달러로 확장할 수 있는 잠재력을 가지고 있습니다. 회사는 2024년 12월 31일 현재 1210만 달러의 현금 및 현금성 자산을 보유하고 있으며, 약 2500만 달러의 ACV를 활성화하고 있습니다.
XBP Europe Holdings (NASDAQ: XBP) a publié ses résultats du quatrième trimestre et de l'année complète 2024, montrant une performance financière mixte. Le chiffre d'affaires annuel de l'entreprise a diminué de 8,0 % pour atteindre 142,8 millions de dollars, tandis que la marge brute a augmenté de 110 points de base à 26,8 %. Le bénéfice d'exploitation a augmenté de 2,4 millions de dollars pour atteindre 3,5 millions de dollars.
Les points forts du quatrième trimestre 2024 incluent un chiffre d'affaires de 35,6 millions de dollars (en baisse de 7,5 % par rapport à l'année précédente), une marge brute de 28,3 % (en hausse de 480 points de base par rapport à l'année précédente) et un bénéfice d'exploitation de 1,0 million de dollars. L'entreprise a enregistré une perte nette de 2,7 millions de dollars pour le quatrième trimestre, y compris 0,5 million de dollars de pertes de change.
Il est à noter que XBP Europe a signé une lettre d'intention non contraignante pour acquérir Exela Technologies BPA, ce qui pourrait potentiellement porter le chiffre d'affaires annuel de l'entreprise à environ 1 milliard de dollars. L'entreprise maintient une liquidité adéquate avec 12,1 millions de dollars en espèces et équivalents de liquidité au 31 décembre 2024, et dispose d'environ 25 millions de dollars d'ACV en ramp-up actif.
XBP Europe Holdings (NASDAQ: XBP) hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht, die eine gemischte finanzielle Leistung zeigen. Der Jahresumsatz des Unternehmens sank um 8,0% auf 142,8 Millionen US-Dollar, während die Bruttomarge um 110 Basispunkte auf 26,8% stieg. Der Betriebsgewinn erhöhte sich um 2,4 Millionen US-Dollar auf 3,5 Millionen US-Dollar.
Die Höhepunkte des vierten Quartals 2024 umfassen einen Umsatz von 35,6 Millionen US-Dollar (rückläufig um 7,5% im Jahresvergleich), eine Bruttomarge von 28,3% (steigend um 480 Basispunkte im Jahresvergleich) und einen Betriebsgewinn von 1,0 Million US-Dollar. Das Unternehmen meldete einen Nettoverlust von 2,7 Millionen US-Dollar für das vierte Quartal, einschließlich 0,5 Millionen US-Dollar an Währungsverlusten.
Bemerkenswert ist, dass XBP Europe eine unverbindliche Absichtserklärung zur Übernahme von Exela Technologies BPA unterzeichnet hat, die potenziell den Jahresumsatz des Unternehmens auf etwa 1 Milliarde US-Dollar steigern könnte. Das Unternehmen verfügt über ausreichende Liquidität mit 12,1 Millionen US-Dollar in Bar- und Zahlungsmitteln zum 31. Dezember 2024 und hat etwa 25 Millionen US-Dollar an aktivem ACV.
- Operating profit increased by $2.4 million to $3.5 million in 2024
- Gross margin improved 110 basis points to 26.8% in 2024
- Q4 gross margin increased significantly by 480 bps year-over-year
- Potential acquisition could expand revenue to ~$1 billion annually
- $25M of ACV in active ramp expected to improve margins
- Reduced capital expenditures from 1.7% to 1.2% of revenue
- Full-year revenue declined 8.0% to $142.8 million
- Q4 revenue decreased 7.5% year-over-year to $35.6 million
- Net loss increased to $6.5 million in 2024 from $5.6 million in 2023
- Adjusted EBITDA decreased by $2.4 million (15.1%) with margin decline of 80 bps
- Technology segment revenue dropped 8.5% year-over-year
Insights
XBP Europe's 2024 results present a nuanced financial picture with improving operational efficiency despite top-line pressure. The 8.0% revenue decline to
Most notably, operating profit increased to
The pending acquisition of Exela Technologies BPA represents a potential step-change in scale, with pro forma revenue potentially expanding to
The
XBP Europe's results reveal a strategic pivot toward operational efficiency and potential inorganic growth to overcome organic revenue challenges. The company appears to be implementing a classic turnaround strategy - first stabilizing margins through cost optimization before pursuing transformative growth.
The
The potential Exela Technologies BPA acquisition represents a bold strategic gambit that could fundamentally reposition XBP Europe in the business process automation market. A successful integration would create approximately
However, the execution risks are substantial. Exela requires a corporate reorganization to create a "sustainable capital structure" - suggesting significant financial challenges within the target company. XBP's ability to finance and integrate an acquisition of this magnitude while maintaining operational improvements will be critical. The strategic focus on cloud migration (
Full Year 2024 Highlights
- Revenue of
$142.8 million , decrease of8.0% year-over-year - Gross margin of
26.8% , a 110 bps increase year-over-year - Operating profit of
$3.5 million , an increase of$2.4 million year-over-year - Approximately
$25M of ACV in active ramp, resulting in an incremental step-up in margin contribution in the second half of 2024 - Signed an exclusive, non-binding LOI to acquire Exela Technologies BPA, LLC, a potentially transformational deal that could expand XBP Europe’s revenue to ~
$1 billion annually
Fourth Quarter 2024 Highlights
- Revenue of
$35.6 million , decrease of7.5% year-over-year and increase of0.7% sequentially - Gross margin of
28.3% , a 480 bps increase year-over-year and 440 bps decrease sequentially - Operating profit of
$1.0 million , an increase of$3.4 million year-over-year and a decrease of$1.5 million sequentially - Net loss of
$2.7 million includes$0.5 million of FX losses, an improvement of$2.4 million year-over-year and$0.1 million sequentially
LONDON and SANTA MONICA, Calif., March 19, 2025 (GLOBE NEWSWIRE) -- XBP Europe Holdings, Inc. (“XBP Europe” or “the Company”) (NASDAQ: XBP), a pan-European integrator of bills, payments, and related solutions and services seeking to enable the digital transformation of its clients, announced today its financial results for the quarter and full year ended December 31, 2024.
“We ended 2024 with growing momentum, as we continued to ramp our recently awarded contracts, leading to improving profitability and operating metrics. We are excited about our organic growth trajectory in 2025 and we continue to work towards a potential acquisition of Exela Technologies BPA, LLC in 2025 so that we can benefit from global scale,” said Andrej Jonovic, Chief Executive Officer of XBP Europe.
Full Year Highlights
- Revenue: Total Revenue for 2024 was
$142.8 million , a decline of8.0% year-over-year, primarily due to completion of projects, lower volumes, and client contract ends, offset by positive impact of newly won business.- Bills & Payments segment revenue was
$101.9 million , a decline of7.8% year-over-year, primarily attributable to completion of one-time projects, lower volumes, and client contract end, offset by the positive impact of newly won business. - Technology segment revenue was
$40.9 million , a decrease of8.5% year-over-year, largely due to a lower volume of licenses sold, offset by a drop in technology implementation and professional services revenue.
- Bills & Payments segment revenue was
- Operating Profit: Operating Profit was
$3.5 million , an increase of$2.4 million compared to 2023. This improvement was driven primarily by higher gross margins coupled with SG&A cost optimizations. Our operating expenses include costs associated with accelerated migration to the cloud.
- Net Loss: Net loss from continuing operations was
$6.5 million , compared with a net loss from continuing operations of$5.6 million in 2023. The year-over-year increase was primarily driven by higher income tax expense and interest expense, offset by higher operating profit and lower related party interest expense.
- Adjusted EBITDA(1): Adjusted EBITDA from Continuing Operations was
$13.4 million , a decrease of$2.4 million or15.1% compared to 2023. Adjusted EBITDA margin was9.4% , a decrease of 80 basis points from10.2% in 2023.
- Capital Expenditures: Capital expenditures were
1.2% of revenue compared to1.7% of revenue in 2023, with the decrease primarily due to lower purchases of PP&E.
- Adequate Liquidity: The Company’s cash and cash equivalents totaled
$12.1 million as of December 31, 2024.
Other Highlights:
- Pending Acquisition: As announced on March 4, 2025, XBP Europe has entered into an exclusive, non-binding letter of intent with Exela Technologies, Inc. to acquire Exela Technologies BPA, LLC (“BPA”), a leading provider of business process automation solutions. The closing of the acquisition will be subject to BPA completing a corporate reorganization which is expected to create a sustainable capital structure with a substantially deleveraged balance sheet. If completed, the acquisition will expand XBP Europe’s revenue to more than
$1 billion from$145 million on a pro forma basis for the twelve months ending September 30, 2024. The parties have agreed to act in good faith to negotiate definitive agreements, complete due diligence, undertake necessary regulatory approvals, and seek any necessary approvals, including from XBP Europe's shareholders. Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Readers are cautioned that those portions of the LOI that describe the proposed transaction are non-binding. XBP Europe only intends to announce additional details regarding the proposed transaction if and when a definitive agreement is executed.
Segment Revenue and Profitability:
| Three months ended December 31, 2024 | ||||||||
| Bills & Payments | Technology | Total | ||||||
| Revenue, net | $ | 25,851 | $ | 9,794 | $ | 35,645 | ||
| Cost of revenue | 20,460 | 5,108 | 25,568 | |||||
| Segment Gross Profit | 5,391 | 4,686 | 10,077 | |||||
| Three months ended December 31, 2023 | ||||||||
| Bills & Payments | Technology | Total | ||||||
| Revenue, net | $ | 27,368 | $ | 11,165 | $ | 38,533 | ||
| Cost of revenue | 24,203 | 5,270 | 29,472 | |||||
| Segment Gross Profit | 3,165 | 5,895 | 9,061 | |||||
| Twelve months ended December 31, 2024 | ||||||||
| Bills & Payments | Technology | Total | ||||||
| Revenue, net | $ | 101,850 | $ | 40,922 | $ | 142,772 | ||
| Cost of revenue | 85,454 | 19,059 | 104,513 | |||||
| Segment Gross Profit | 16,396 | 21,863 | 38,259 | |||||
| Twelve months ended December 31, 2023 | ||||||||
| Bills & Payments | Technology | Total | ||||||
| Revenue, net | $ | 110,458 | $ | 44,719 | $ | 155,177 | ||
| Cost of revenue | 95,572 | 19,738 | 115,310 | |||||
| Segment Gross Profit | 14,886 | 24,981 | 39,867 | |||||
Below is the note referenced above:
(1) Adjusted EBITDA is a non-GAAP measure. A reconciliation of Adjusted EBITDA is attached to this release.
Supplemental Investor Presentation
An investor presentation relating to our fourth quarter and full year 2024 performance is available at investors.xbpeurope.com. This information has also been furnished to the SEC in a current report on Form 8-K.
About Non-GAAP Financial Measures
This press release includes constant currency, EBITDA and Adjusted EBITDA, each of which is a financial measure that is not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). XBP Europe believes that the presentation of these non-GAAP financial measures will provide useful information to investors in assessing our financial performance, results of operations and liquidity and allows investors to better understand the trends in our business and to better understand and compare our results. XBP Europe’s board of directors and management use constant currency, EBITDA and Adjusted EBITDA to assess XBP Europe’s financial performance, because it allows them to compare XBP Europe’s operating performance on a consistent basis across periods by removing the effects of XBP Europe’s capital structure (such as varying levels of debt and interest expense, as well as transaction costs resulting from the combination with CF Acquisition Corp. VIII. on November 29, 2023). Adjusted EBITDA also seeks to remove the effects of restructuring and related expenses and other similar non-routine items, some of which are outside the control of our management team. Restructuring expenses are primarily related to the implementation of strategic actions and initiatives related to right sizing of the business. All of these costs are variable and dependent upon the nature of the actions being implemented and can vary significantly driven by business needs. Accordingly, due to that significant variability, we exclude these charges since we do not believe they truly reflect our past, current or future operating performance. The constant currency presentation excludes the impact of fluctuations in foreign currency exchange rates. We calculate constant currency revenue on a constant currency basis by converting our current-period local currency revenue using the exchange rates from the corresponding prior-period and compare these adjusted amounts to our corresponding prior period reported results. XBP Europe does not consider these non-GAAP measures in isolation or as an alternative to liquidity or financial measures determined in accordance with GAAP. A limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in XBP Europe’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures and therefore the basis of presentation for these measures may not be comparable to similarly-titled measures used by other companies. These non-GAAP financial measures are not required to be uniformly applied, are not audited and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP. Net loss is the GAAP measure most directly comparable to the non-GAAP measures presented here. For 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 certain “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 (the “Securities Act”), and Section 21E of the Exchange Act, including certain financial forecasts and projections. All statements other than statements of historical fact contained in this press release, including statements as to future results of operations and financial position, revenue and other metrics planned products and services, business strategy and plans, objectives of management for future operations of XBP Europe, market size and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by XBP Europe and its management, as the case may be, are inherently uncertain and many factors may cause the actual results to differ materially from current expectations which include, but are not limited to: (1) the outcome of any legal proceedings that may be instituted against XBP Europe or others and any definitive agreements with respect thereto; (2) the inability to meet the continued listing standards of Nasdaq or another securities exchange; (3) the risk that the business combination disrupts current plans and operations of XBP Europe and its subsidiaries; (4) the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of XBP Europe and its subsidiaries to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (5) costs related to the business combination; (6) changes in applicable laws or regulations; (7) the possibility that XBP Europe or any of its subsidiaries may be adversely affected by other economic, business and/or competitive factors; (8) risks related to XBP Europe’s potential inability to achieve or maintain profitability and generate cash; (9) the impact of the COVID-19 pandemic, including any mutations or variants thereof, and its effect on business and financial conditions; (10) volatility in the markets caused by geopolitical and economic factors; (11) the ability of XBP Europe to retain existing clients; (12) the potential inability of XBP Europe to manage growth effectively; (13) the ability to recruit, train and retain qualified personnel, and (14) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Annual Reports on Form 10-K filed on April 1, 2024 and, our subsequent quarterly reports on Form 10-Q and our current reports on Form 8-K as filed with the Securities and Exchange Commission (the “SEC”). These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. Readers should not place undue reliance on forward-looking statements, which speak only as of the date they are made. XBP Europe gives no assurance that either XBP Europe or any of its subsidiaries will achieve its expected results. XBP Europe undertakes no duty to update these forward-looking statements, except as otherwise required by law.
About XBP Europe
XBP Europe is a pan-European integrator of bills, payments and related solutions and services seeking to enable digital transformation of its more than 2,000 clients. The Company’s name – ‘XBP’ – stands for ‘exchange for bills and payments’ and reflects the Company’s strategy to connect buyers and suppliers, across industries, including banking, healthcare, insurance, utilities and the public sector, to optimize clients’ bills and payments and related digitization processes. The Company provides business process management solutions with proprietary software suites and deep domain expertise, serving as a technology and services partner for its clients. Its cloud-based structure enables it to deploy its solutions across the European market, along with the Middle East and Africa. The physical footprint of XBP Europe spans 15 countries and 32 locations and a team of approximately 1,500 individuals. XBP Europe believes its business ultimately advances digital transformation, improves market wide liquidity by expediting payments, and encourages sustainable business practices. For more information, please visit: www.xbpeurope.com.
For more XBP Europe news, commentary, and industry perspectives, visit: https://www.xbpeurope.com/
And please follow us on social:
X: https://X.com/XBPEurope
LinkedIn: https://www.linkedin.com/company/xbp-europe/
The information posted on XBP Europe's website and/or via its social media accounts may be deemed material to investors. Accordingly, investors, media and others interested in XBP Europe should monitor XBP Europe’s website and its social media accounts in addition to XBP Europe’s press releases, SEC filings and public conference calls and webcasts.
Investor and/or Media Contacts:
investors@xbpeurope.com
| XBP Europe Holdings, Inc. Consolidated Balance Sheets For the years ended December 31, 2024 and 2023 (in thousands of United States dollars except share and per share amounts) | |||||
| December 31, | |||||
| 2024 | 2023 | ||||
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 12,099 | $ | 6,537 | |
| Accounts receivable, net of allowance for credit losses of | 19,810 | 30,238 | |||
| Inventories, net | 3,823 | 4,045 | |||
| Prepaid expenses and other current assets | 4,228 | 6,550 | |||
| Current assets held for sale | 1,378 | 2,497 | |||
| Total current assets | 41,338 | 49,867 | |||
| Property, plant and equipment, net of accumulated depreciation of | 11,272 | 12,811 | |||
| Operating lease right-of-use assets, net | 4,805 | 5,206 | |||
| Goodwill | 21,666 | 22,823 | |||
| Intangible assets, net | 1,121 | 1,498 | |||
| Deferred income tax assets | 7,026 | 6,811 | |||
| Other noncurrent assets | 817 | 705 | |||
| Noncurrent assets held for sale | — | 3,018 | |||
| Total assets | $ | 88,045 | $ | 102,739 | |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||
| LIABILITIES | |||||
| Current liabilities | |||||
| Accounts payable | $ | 12,553 | $ | 13,281 | |
| Related party payables | 5,443 | 13,012 | |||
| Accrued liabilities | 17,993 | 23,850 | |||
| Accrued compensation and benefits | 16,482 | 16,267 | |||
| Customer deposits | 277 | 323 | |||
| Deferred revenue | 6,870 | 6,004 | |||
| Current portion of finance lease liabilities | 12 | 91 | |||
| Current portion of operating lease liabilities | 1,734 | 1,562 | |||
| Current portion of long-term debts | 4,958 | 3,863 | |||
| Current liabilities held for sale | 2,443 | 3,818 | |||
| Total current liabilities | 68,765 | 82,071 | |||
| Related party notes payable | 1,451 | 1,542 | |||
| Long-term debt, net of current maturities | 23,966 | 12,763 | |||
| Finance lease liabilities, net of current portion | — | 23 | |||
| Pension liabilities | 10,339 | 12,208 | |||
| Operating lease liabilities, net of current portion | 3,271 | 3,785 | |||
| Other long-term liabilities | 1,599 | 1,635 | |||
| Noncurrent liabilities held for sale | — | 1,280 | |||
| Total liabilities | $ | 109,391 | $ | 115,307 | |
| STOCKHOLDERS’ DEFICIT | |||||
| Preferred stock, par value of | — | — | |||
| Common Stock, par value of | 30 | 30 | |||
| Additional paid in capital | 1,611 | — | |||
| Accumulated deficit | (23,705) | (11,339) | |||
| Accumulated other comprehensive loss: | |||||
| Foreign currency translation adjustment | 474 | (1,416) | |||
| Unrealized pension actuarial gains, net of tax | 244 | 157 | |||
| Total accumulated other comprehensive loss | 718 | (1,259) | |||
| Total stockholders’ deficit | (21,346) | (12,568) | |||
| Total liabilities and stockholders’ deficit | $ | 88,045 | $ | 102,739 | |
| XBP Europe Holdings, Inc. Consolidated Statements of Operations For the years ended December 31, 2024 and 2023 (in thousands of United States dollars except share and per share amounts) | |||||
| Year ended December 31, | |||||
| 2024 | 2023 | ||||
| Revenue, net | $ | 142,408 | $ | 154,943 | |
| Related party revenue, net | 364 | 234 | |||
| Cost of revenue (exclusive of depreciation and amortization) | 104,467 | 115,234 | |||
| Related party cost of revenue | 47 | 76 | |||
| Selling, general and administrative expenses (exclusive of depreciation and amortization) | 26,525 | 31,173 | |||
| Related party expense | 5,101 | 4,633 | |||
| Depreciation and amortization | 3,160 | 2,944 | |||
| Operating profit | 3,472 | 1,117 | |||
| Other expense (income), net | |||||
| Interest expense, net | 6,232 | 5,035 | |||
| Related party interest expense, net | 90 | 1,971 | |||
| Foreign exchange losses, net | 2,520 | 599 | |||
| Changes in fair value of warrant liability | (43) | (597) | |||
| Pension income, net | (1,705) | (929) | |||
| Net loss before income taxes | (3,622) | (4,962) | |||
| Income tax expense | 2,911 | 606 | |||
| Net loss from continuing operations | (6,533) | (5,568) | |||
| Net loss from discontinued operations, net of income taxes | (5,833) | (5,479) | |||
| Net loss | $ | (12,366) | $ | (11,047) | |
| Loss per share: | |||||
| Basic and diluted - continuing operations | $ | (0.22) | $ | (0.25) | |
| Basic and diluted - discontinued operations | (0.19) | (0.24) | |||
| Basic and diluted | $ | (0.41) | $ | (0.49) | |
| XBP Europe Holdings, Inc. Consolidated Statements of Cash Flows For the years ended December 31, 2024 and 2023 (in thousands of United States dollars) | |||||
| Years ended December 31, | |||||
| 2024 | 2023 | ||||
| Cash flows from operating activities | |||||
| Net loss | $ | (12,366) | $ | (11,047) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||
| Depreciation | 2,965 | 3,467 | |||
| Amortization of intangible assets | 750 | 384 | |||
| Debt issuance cost amortization | 216 | — | |||
| Impairment of goodwill | 87 | — | |||
| Credit loss expense | 16 | 343 | |||
| Changes in fair value of warrant liability | (43) | (597) | |||
| Stock-based compensation expense | 1,611 | — | |||
| Unrealized foreign currency losses (gains) | 2,428 | (616) | |||
| Change in deferred income taxes | (247) | (422) | |||
| Change in operating assets and liabilities | |||||
| Accounts receivable | 9,568 | 5,990 | |||
| Inventories | 240 | (58) | |||
| Prepaid expense and other assets | 2,297 | 2,123 | |||
| Accounts payable | (365) | (2,417) | |||
| Related party payables | (8,446) | (843) | |||
| Accrued expenses and other liabilities | (4,848) | 2,629 | |||
| Deferred revenue | 1,099 | 67 | |||
| Customer deposits | (189) | (538) | |||
| Net cash used in operating activities | (5,227) | (1,535) | |||
| Cash flows from investing activities | |||||
| Purchase of property, plant and equipment | (1,263) | (2,330) | |||
| Cash paid for costs of fulfilling a contract | — | (339) | |||
| Additions to internally developed software | (447) | — | |||
| Net cash used in investing activities | (1,710) | (2,669) | |||
| Cash flows from financing activities | |||||
| Borrowings under secured borrowing facility | — | 87,635 | |||
| Principal repayment on borrowings under secured borrowing facility | (79) | (91,662) | |||
| Borrowings under 2024 Term Loan A Facility | 3,834 | — | |||
| Borrowings under 2024 Term Loan B Facility | 11,360 | — | |||
| Borrowings under 2024 Revolving Credit Facility | 15,352 | — | |||
| Cash paid for debt issuance costs | (1,527) | — | |||
| Principal payments on 2024 Term Loan A Facility | (383) | — | |||
| Principal payments on 2024 Term Loan B Facility | (1,136) | — | |||
| Principal payments on long-term obligations | (15,270) | (920) | |||
| Proceeds from Secured Credit Facility | 930 | 223 | |||
| Principal payments on finance leases | (635) | (786) | |||
| Proceeds from Business Combination, net of transaction expenses | — | 5,205 | |||
| Net cash provided by (used in) financing activities | 12,446 | (305) | |||
| Effect of exchange rates on cash and cash equivalents | (308) | 3,941 | |||
| Net increase (decrease) in cash and cash equivalents | 5,201 | (568) | |||
| Cash and equivalents, beginning of period, including cash from discontinued operations | 6,905 | 7,473 | |||
| Cash and equivalents, end of period, including cash from discontinued operations | $ | 12,106 | $ | 6,905 | |
| Supplemental cash flow data: | |||||
| Income tax payments, net of refunds received | 567 | 1,059 | |||
| Interest paid | 3,429 | 1,798 | |||
| XBP Europe Holdings, Inc. Schedule 1: Reconciliation of Adjusted EBITDA and constant currency revenues | ||||
| Reconciliation of Non-GAAP Financial Measures to GAAP Measures | ||||
| Non-GAAP constant currency revenue reconciliation | ||||
| Twelve Months ended December 31, | ||||
| ($ in thousands) | 2024 | 2023 | ||
| Revenues, as reported (GAAP) | 142,772 | 155,177 | ||
| Foreign currency exchange impact (1) | (1,055) | - | ||
| Revenues, at constant currency (Non-GAAP) | 141,717 | 155,177 | ||
| Reconciliation of Adjusted EBITDA from Continuing Operations | ||||||
| Year Ended December 31, | ||||||
| (dollars in thousands) | 2024 | 2023 | ||||
| Net loss from continuing operations | $ | (6,533) | $ | (5,568) | ||
| Income tax expense | 2,911 | 606 | ||||
| Interest expense including related party interest expense, net | 6,322 | 7,006 | ||||
| Depreciation and amortization | 3,160 | 2,944 | ||||
| EBITDA from continuing operations | 5,860 | 4,988 | ||||
| Restructuring and related expenses (2) | 1,879 | 5,053 | ||||
| Employee litigation matter (3) | 1,283 | 1,431 | ||||
| Related party management fee and royalties (4) | — | 1,330 | ||||
| Foreign exchange losses, net | 2,520 | 599 | ||||
| Non-cash equity compensation (5) | 1,611 | — | ||||
| Changes in fair value of warrant liability | (43) | (597) | ||||
| Transaction Fees (6) | 280 | 2,970 | ||||
| Adjusted EBITDA from continuing operations | $ | 13,390 | $ | 15,774 | ||
(1) Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the year ended December 31, 2023, to the revenues during the corresponding period in 2024.
(2) Adjustment represents costs associated with restructuring, including employee severance and vendor and lease termination costs.
(3) Represents litigation settlement and associated expenses incurred in connection with the Company subsidiary litigation.
(4) Primarily represents management fee incurred in exchange for services, which included provision of legal, human resources, corporate finance, and marketing support. The management services agreement was terminated in connection with the Business Combination and was replaced by the related party service fee pursuant to the Services Agreement which reduced the fee and modified the services provided.
(5) Represents the non-cash charges to restricted stock units and options.
(6) Represents transaction costs incurred as part of the Business Combination.
| Reconciliation of Adjusted EBITDA from Discontinued Operations | ||||||
| Year Ended December 31, | ||||||
| (dollars in thousands) | 2024 | 2023 | ||||
| Net loss from discontinued operations, net of income taxes | $ | (5,833) | $ | (5,479) | ||
| Income tax expense | — | — | ||||
| Interest expense, net | 145 | 189 | ||||
| Depreciation and amortization | 555 | 907 | ||||
| EBITDA from discontinued operations | (5,133) | (4,383) | ||||
| Restructuring and related expenses (7) | 38 | 187 | ||||
| Related party service fees and royalties | — | 25 | ||||
| Impairment of goodwill | 87 | — | ||||
| Foreign exchange losses (gains), net | 211 | (5) | ||||
| Adjusted EBITDA from discontinued operations | $ | (4,797) | $ | (4,176) | ||
(7) Adjustment represents costs associated with restructuring related to employee severance.
Source: XBP Europe Holdings, Inc.
FAQ
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