Exela Technologies, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting both revenue growth and ongoing challenges in profitability. For the three months ended September 30, 2024, the company generated revenue of $269.2 million, a 6.3% increase from $253.1 million in the same period of 2023. The growth was primarily driven by the Information & Transaction Processing Solutions (ITPS) segment, which saw an 11.5% increase in revenue to $192.0 million, attributed to existing contracts. However, the Healthcare Solutions (HS) and Legal & Loss Prevention Services (LLPS) segments experienced declines in revenue.
Despite the revenue increase in Q3, Exela's operating profit rose to $3.2 million from $2.1 million year-over-year. However, the company reported a net loss of $24.9 million for the quarter, slightly worse than the $23.1 million loss in Q3 2023. For the nine months ended September 30, 2024, total revenue decreased by 3.3% to $773.6 million, with the ITPS segment revenue declining by 4.7% due to contract exits and the impact of the sale of the high-speed scanner business. The net loss for the nine-month period improved to $77.4 million from $99.4 million in the prior year.
Exela's total assets decreased to $567.0 million as of September 30, 2024, from $636.3 million at the end of 2023, while total liabilities increased to $1.5 billion. The company reported a working capital deficit of $262.8 million, up from $213.7 million at the end of 2023. Cash and cash equivalents also fell significantly to $11.3 million from $23.3 million at the end of 2023.
Strategically, Exela completed a merger with CF Acquisition Corp. VIII, forming XBP Europe Holdings, Inc., which began trading on Nasdaq in late November 2023. The company also sold its high-speed scanner business for approximately $30.1 million in June 2023, realizing a pre-tax gain of $7.2 million. However, Exela faced significant challenges, including a delisting from Nasdaq due to a market value below $35 million, with its shares now trading on OTC Pink.
The company is actively pursuing cost-saving measures and restructuring its debt to address financial uncertainties, including an obligation to make a $50 million interest payment due in January 2025. Exela's management continues to evaluate its operational strategies and financial position amid ongoing market challenges.
About Exela Technologies, Inc.
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