XBP Global (XBP) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $191.3 million, down 14% year-over-year on a pro forma basis, with Technology segment growth offsetting declines in Applied Workflow Automation.

• Normalized EBITDA reached $21.9 million, up 8.4% year-over-year, and adjusted gross margin hit a record 24.9%, reflecting operational transformation and AI-first automation.

• Net loss for Q2 2026 was $16.7 million, a significant improvement from the prior year, driven by lower interest expense and reduced reorganization charges.

• Total contract value (TCV) bookings were $121.3 million, up 51.6% year-over-year, with a $2.5 billion pipeline as of June 30, 2026.

• Completed major restructuring in Europe, consolidating entities and reducing headcount, and engaged a financial advisor for strategic alternatives.

Financial highlights

• Adjusted gross margin expanded to 24.9%, up 290 basis points year-over-year and 140 basis points sequentially.

• Normalized EBITDA margin increased to 11.5%, up 240 basis points year-over-year and 40.6% sequentially.

• Q2 2026 net loss was $16.7 million; net loss per share was $1.42.

• Revenue per employee rose to $89,000, with a target of $100,000 by year-end.

• Cash and cash equivalents at June 30, 2026, were $18.6 million; total assets were $827.8 million.

Outlook and guidance

• Annualized operational efficiency target raised to $65–$75 million, with an expected $35 million in-year benefit for 2026.

• Projecting an approximate 20% workforce reduction by year-end 2026 versus year-end 2025.

• Revenue per employee expected to approach $100,000 by year-end, exceeding peer group averages.

• Management expects sufficient liquidity for at least the next twelve months, supported by cost savings, asset sales, and potential equity financing.

• Focus remains on pipeline conversion, AI-driven automation, and structural margin improvement.