XBP Europe Holdings Reports $37.5 Million Revenue and $4.4 Million Net Loss in Q1 2025

XBP Europe Holdings, Inc. reported a net revenue of $37.5 million for the first quarter of 2025, a slight decrease of 1.4% from $38.0 million in the same period last year. The decline was attributed to foreign currency impacts, which offset a modest increase in revenue from newly acquired business. The company's operating loss for the quarter was $1.8 million, compared to an operating profit of $1.3 million in the prior year. The net loss for the quarter was $4.4 million, which includes losses from discontinued operations, compared to a net loss of $2.2 million in the first quarter of 2024.

In terms of operational metrics, XBP Europe reported a significant increase in accounts receivable, which rose to $26.9 million from $19.8 million at the end of 2024. The company also noted a rise in accrued liabilities, which increased to $25.0 million from $18.0 million. The total liabilities of the company reached $119.4 million, up from $109.4 million at the end of the previous fiscal year. The increase in liabilities was primarily driven by higher accrued expenses and customer deposits.

Strategically, XBP Europe has been active in expanding its business operations. The company completed an acquisition of membership interests in GP 2XCV Holdings LLC for $2.3 million, which was executed through the issuance of 1.68 million shares of common stock. This acquisition is expected to enhance the company’s asset base with the addition of Exela 2026 Notes. Furthermore, XBP Europe is in discussions to acquire Exela Technologies BPA, a subsidiary of ETI, although no definitive agreement has been reached yet.

The company’s workforce as of March 31, 2025, consisted of approximately 1,500 employees across 16 countries, reflecting its extensive operational footprint in Europe and beyond. XBP Europe continues to focus on optimizing its cost structure, as evidenced by a reduction in the cost of revenue, which decreased by 6.3% year-over-year. However, selling, general, and administrative expenses surged by 57.2% to $11.0 million, largely due to stock-based compensation costs.

Looking ahead, XBP Europe anticipates continued challenges in the market, particularly due to fluctuating foreign exchange rates and competitive pressures. The company remains committed to its strategic initiatives aimed at enhancing operational efficiency and expanding its service offerings. Management believes that the current cash reserves and cash flows from financing activities will be sufficient to meet working capital and capital expenditure requirements for at least the next twelve months. However, they acknowledge the potential need for additional capital to support future growth initiatives.