Revenue: As of FY2025 Q1, the actual value is USD 37.73 M.

EPS: As of FY2025 Q1, the actual value is USD -0.14.

EBIT: As of FY2025 Q1, the actual value is USD -722 K.

Segment Revenue

• Total Revenue: $37.7 million, a decrease of 1.2% year-over-year and an increase of 5.7% sequentially.
• Bills & Payments Segment Revenue: $26.3 million, a decline of 1.2% year-over-year and an increase of 1.8% sequentially.
• Technology Segment Revenue: $11.4 million, a decrease of 1.0% year-over-year and an increase of 16% sequentially.
• Revenue Mix: Bills & Payments accounted for 69.8% of revenue, while Technology contributed 30.2%.

Operational Metrics

• Gross Margin: 30.1%, a 380 basis points increase year-over-year and 190 basis points increase sequentially.
  • Technology Gross Margin: 54.5%.
  • Bills & Payments Gross Margin: 19.6%.
• Operating Loss: $1.8 million compared to an operating profit of $1.3 million a year ago and $1.0 million in the fourth quarter of 2024. Adjusted for non-cash stock-based compensation, the operating profit was $2.0 million, an improvement of $0.7 million year-over-year and $1.0 million sequentially.
• Net Loss: $3.9 million from continuing operations. Adjusted for non-cash stock-based compensation, the net loss from continuing operations was $0 million, compared with a net loss of $0.9 million a year ago and $0.2 million in the fourth quarter of 2024.
• Adjusted EBITDA: $3.7 million, an increase of 25.5% year-over-year. Adjusted EBITDA margin was 9.8%, an increase of 210 basis points year-over-year.
• SG&A Expenses: $7.1 million, showing a year-over-year increase of 2.4% and a sequential increase of 18.6%.

Cash Flow

• Cash and Cash Equivalents: $9.7 million as of March 31, 2025.
• Net Cash Used in Operating Activities: - $929,000 for the three months ended March 31, 2025.

Unique Metrics

• Pending Acquisition: XBP Europe has entered into a non-binding letter of intent to acquire Exela Technologies BPA, LLC, which could expand XBP Europe’s revenue to approximately $1 billion on a pro forma basis for the year ending December 31, 2024.
• Sequential Revenue Growth: Achieved three consecutive quarters of sequential revenue growth, driven by approximately $25 million of active project ramp-ups, including the operational go-live of His Majesty’s Passport Office (HMPO).

Outlook / Guidance

• The company is focused on expanding its revenue through strategic acquisitions and leveraging AI technology to improve operational leverage and gross margin. The company anticipates continued growth opportunities driven by government spending, digital transformation initiatives, and Open Banking developments. It aims to leverage frameworks like G-Cloud 14 to increase market share.