XBP Global (XBP) Q4 2025 earnings summary

Executive summary

• Completed transformative acquisition of Exela Technologies BPA in July 2025, integrating European and Americas/Asia businesses and resulting in a significant transition period and changes in financial reporting.

• Focused on AI-led transformation, organizational streamlining, and investments in growth, including hiring a new Chief Revenue Officer and expanding the sales team.

• Emphasized mission-critical, highly regulated client mandates, with a diversified client base and no single client accounting for more than 7.5% of revenue.

• Added 251 new clients in FY 2025, a 5.5% increase year-over-year, and maintained a diversified client base.

• AI-driven solutions and automation are central to strategy, aiming for higher margins and sustainable growth.

Financial highlights

• FY 2025 pro forma revenue was $879.6 million, down 13.6% year-over-year; reported revenue was $791.0 million, down 9.4%.

• Pro forma gross margin for 2025 increased 30 basis points year-over-year to 21.9%; reported gross margin rose 10 bps to 21.7%.

• Pro forma normalized EBITDA was $90.2 million, down 13.7% year-over-year; normalized EBITDA margin was 10.3%.

• Q4 2025 pro forma revenue was $207.0 million, down 15.1% year-over-year; gross margin rose 110 basis points to 22.7%.

• Q4 normalized EBITDA was $19.2 million, a 35% year-over-year decline.

Outlook and guidance

• 2026 expected to be a pivotal year with further margin improvement and progression toward being an AI-led provider.

• Strong sales momentum with $297.8 million TCV closed won in FY 2025 and pipeline creation of $1.4 billion.

• Focus on onboarding new clients and migrating existing ones to AI-powered workflows to drive future growth.