XBP Global (XBP) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $197.1 million, down 14.2% year-over-year on a pro forma basis, reflecting transition to an AI-led, automation-first model and customer exits.

• Gross margin improved by 70 basis points year-over-year to 22.9%.

• Normalized EBITDA was $15.6 million, a 39.9% decrease year-over-year, with margin at 7.9%.

• Net loss was $26.8 million for the quarter.

• The company is undergoing a transition to an AI-first, high-productivity operating model, with significant automation initiatives and leadership changes.

Financial highlights

• Revenue: $197.1 million, down 14.2% year-over-year on a pro forma basis.

• Gross margin: 22.9%, up 70 basis points year-over-year.

• Normalized EBITDA: $15.6 million, down 39.9% year-over-year.

• Net loss for Q1 2026 was $26.8 million, or $(2.28) per share.

• Total contract value (TCV) bookings rose 68.8% year-over-year to $108.1 million; new ACV bookings were $27.3 million, up 4.4% over the last four-quarter average.

Outlook and guidance

• Transitioning to an AI-first, automation-driven model, targeting a 20% workforce reduction by year-end 2026.

• Revenue per employee projected to reach $100,000 by year-end, well above peer average.

• Operational efficiencies of $55–$60 million annually expected, with most actions implemented in H1 2026.

• Bookings and pipeline growth are expected to support future performance despite current revenue and earnings trends being impacted by legacy contracts.

• Management expects continued cost optimization, expansion of AI-enabled offerings, and targeted client retention to partially offset revenue headwinds.