XBP · XBP Europe Holdings, Inc.

XBP Global Holdings, Inc. disclosed first quarter 2026 financial results reflecting challenges in revenue amid an operating model transition, with pro forma revenue of $197.1 million declining 14.2% year-over-year, primarily driven by legacy contract dynamics in the Applied Workflow Automation segment ($178.4 million, -12.6%) and Technology segment ($18.7 million, -26.4%). Despite the topline pressure, gross margin expanded 70 basis points to 22.9% on a pro forma basis, marking the third consecutive quarter of improvement, attributed to disciplined management and increased automation efforts. The company reported a GAAP net loss of $26.8 million and Normalized EBITDA of $15.6 million, down 39.9% year-over-year, highlighting profitability strain from these transitions. Positively, bookings strengthened with $108.1 million in Total Contract Value (TCV), surging 68.8% year-over-year and 45.1% above the trailing four-quarter average, alongside $27.3 million in new ACV. Management emphasized ongoing automation initiatives targeting $55-60 million in annualized operational efficiencies, with a significant portion implemented in the first half of 2026, and an expected 20% global headcount reduction by year-end as part of shifting to an AI-first operating model. CEO Andrej Jonovic noted sales pipeline momentum and anticipated margin uplift and higher revenue per employee in the second half. Concurrently, the Board approved a formal process to explore strategic alternatives, signaling potential M&A or other value-enhancing actions without a set timetable or assurance of outcome, which could materially impact shareholder value amid the company's transformation.