🧾 What This Document Is

This is an 8-K filing with an attached press release (Exhibit 99.1). Companies file 8-Ks to announce major events to investors. Here, XBP Global is reporting its fourth quarter and full-year 2025 financial results. Because the company acquired a major business (Exela Technologies BPA) mid-year, the numbers are complex. They’ve provided both “reported” results and “pro forma” results to help you understand how the combined company is actually doing. Think of it as showing you both the raw recipe and the finished dish.

🏢 What The Company Does

👉 In simple terms, XBP Global helps big companies automate their messy, paper-heavy workflows using software and AI. They’re like a digital plumbing company for Fortune 500 firms—taking old, manual processes (like processing invoices or managing documents) and making them run automatically. They operate in 20 countries with about 10,600 employees and serve over 2,000 clients. Their big focus now is “hyper-automation” and “agentic AI,” which is tech that can handle complex tasks with minimal human hand-holding.

💰 Financial Highlights (The Story in the Numbers)

This was a transition year, so the headline numbers are messy. Here’s what matters:

Full Year 2025 (The Big Picture):

Revenue: $791.0 million (as reported), down 9.4% from 2024. On a pro forma basis (to show the combined company), revenue was $879.6 million, down 13.6%. 👉 The decline reflects “legacy performance trends” in the acquired business they’re fixing.
Profitability: A huge GAAP net income of $1.1 billion sounds great, but it’s mostly a one-time accounting gain from the acquisition. The more useful metric is Pro Forma Normalized EBITDA (a measure of operational cash profit), which was $90.2 million, down 13.7%.
New Business: They signed $297.8 million in new Total Contract Value (TCV), including $163.8 million from new contracts. This is a key health metric—showing they can still win deals.

Fourth Quarter 2025 (Latest Quarter):

Revenue was $207.0 million (pro forma), down 15.1% year-over-year.
Good sign: Gross margin improved to 22.7% (up 110 basis points). 👉 This means they’re getting more efficient, likely due to their AI rollout.
Even better sign: New contract signings (TCV of $60.2 million) shot up 53.2% compared to last year’s Q4. New annual contract value (ACV) also jumped 37.7%. 👉 This suggests their turnaround efforts in sales are starting to work.

🚀 Key Moves & Strategic Shifts

The big move was the acquisition of Exela Technologies BPA (BPA) in July 2025. This was a “transformative” deal that essentially created the new XBP Global. The company is now focused on:

Stabilizing the acquired business and working through its past problems.
Investing heavily in sales leadership to win back and attract new clients.
Rolling out AI “agentic” solutions to move clients from labor-intensive work to smarter, automated workflows. 👉 The CEO says 2025 was a “defining year of transition.” They’re cleaning up the house they just bought before they can fully expand it.

📦 Financial Position (Balance Sheet Snapshot)

The balance sheet transformed after the acquisition. As of Dec. 31, 2025:

Total Assets swelled to $902.1 million (from $390.4 million in 2024), driven by new Goodwill ($189.9M) and Intangible Assets ($344.1M) from the deal.
Total Liabilities are $814.8 million. A major change: Long-term debt is now $353.3 million, down drastically from over $1.4 billion in 2024. 👉 This shows they successfully restructured a mountain of old debt as part of the acquisition, which is a big positive for future stability.
Stockholder Equity flipped to a positive $87.3 million deficit, a massive improvement from a negative $1.46 billion deficit. 👉 The company’s financial foundation is now fundamentally stronger.

💸 Cash Flow Story

Cash flow was mixed, showing the ongoing integration costs:

Operating Cash Flow for the full year was a negative $141.7 million (combining both reporting periods). This was hit by huge one-time items like goodwill impairment and restructuring.
Financing Activities generated $158.4 million, mainly from new borrowings (like an ABL Facility) to support operations during the transition. 👉 The cash flow reflects a company spending to reorganize. The key for 2026 will be turning operational improvements into positive cash generation.

🔮 What’s Next

Management is focused on a return to growth in 2026. Their playbook is clear:

Leverage their new AI-driven solutions to offer more value.
Continue the sales push to convert the strong Q4 contract momentum into sustained revenue.
Drive margin expansion through operational efficiency (already visible in Q4’s improved gross margin). 👉 They’ve laid the groundwork; 2026 is about execution and proving the new XBP Global can grow profitably.

⚖️ Big Picture: Strengths & Risks

👍 Strengths: Successful acquisition and debt restructuring have created a cleaner, stronger company. Demonstrating clear operational improvement (rising margins) and a resurgence in new business signings (strong Q4 TCV/ACV) are very positive signals. Their focus on AI positions them well for future demand.
⚠️ Risks: The core business is still experiencing revenue declines. The turnaround is in early stages, and execution risk is high. Integrating a large acquisition is always complex and costly. The financials are still complicated by one-time accounting items, which can obscure the true trend.

🧠 The Analogy

Imagine buying a fixer-upper house with a great location but terrible plumbing and a leaky roof (the acquired BPA business with legacy issues). 2025 was the year you bought the house, evicted the tenants, and started major repairs—tearing out old pipes (restructuring debt), patching the roof (stabilizing operations), and installing a smart-home system (AI rollout). The house isn’t generating rental income yet (revenue is down), but the new foundation is solid (stronger balance sheet), and you just signed a tenant for next year (Q4 contract wins).

📇 Key Contacts & People

Andrej Jonovic, Chief Executive Officer
Dejan Avramovic, Chief Financial Officer
Investor Relations: David Shamis, [email protected]
Media Queries: Srushti Rao, [email protected]
Earnings Call Registration Link: https://register-conf.media-server.com/register/BI8754ccb3a592449193b50ac393727563
Investor Relations Website: https://investors.xbpglobal.com

🧩 Final Takeaway

XBP Global is a company in the thick of a major turnaround after a transformative acquisition. While 2025’s results show revenue pressure, the underlying signs are encouraging: improved margins, a much healthier balance sheet, and a sharp rebound in new contract wins in the fourth quarter. The story for investors is whether this momentum can be sustained to deliver growth in 2026.

XBP Global Holdings, Inc. — 8-K Filing