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.

• Shifted strategic focus to AI-led operations, investing in talent and sales leadership to drive growth and margin expansion.

• Embedded in mission-critical, highly regulated sectors with long-standing client relationships averaging over 15 years among top 25 clients.

• Diversified client base with 2,500+ clients, no single client over 7.5% of revenue, and 140+ clients with $1M+ ACV.

• Added 251 new clients in FY 2025, a 5.5% increase year-over-year.

Financial highlights

• Pro forma revenue for 2025 was $879.6M, down 13.6% year-over-year; reported revenue was $791.0M, down 9.4%.

• Pro forma gross margin for 2025 increased 30 bps to 21.9%; reported gross margin rose 10 bps to 21.7%.

• Normalized EBITDA for 2025 was $90.2M, down 13.7% year-over-year; EBITDA margin flat at 10.3%.

• Q4 2025 revenue was $207M, down 15.1% year-over-year; gross margin up 110 bps to 22.7%.

• Q4 normalized EBITDA was $19.2M, down 35% year-over-year.

Outlook and guidance

• 2026 expected to be pivotal, with further margin improvement and progression toward AI-led mission-critical workflows.

• Anticipates structurally higher margins from AI-driven solutions and automation.

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

• Sales cycles remain long, with macroeconomic headwinds impacting near-term growth.