XBP Global Holdings, Inc. Q4 FY2025 earnings call

• Completed acquisition of Accel Technologies BPA in late July 2025 and focused on integrating the two platforms into one and streamlining the organization.
• Focused on becoming an AI-led company, emphasizing human accountability and governance, and disrupting legacy workflows to move from traditional SDLC to AI-driven STLC, expecting margin uplift.
• Hired Chief Revenue Officer and expanded sales team, created approximately 1.4 billion of new pipeline in 2025, up 8% over 2024, and closed nearly 300 million of TCV in full year, with ~100 million in fourth quarter.
• Fourth quarter new TCV bookings up 53.2% year-over-year, new ACV bookings up 37.7% year-over-year.
• Workforce composition evolving due to AI disruption, with tech teams seeing ~70% uplift in speed in output, and revenue per FTE ~$80,000 exceeding peer group average.
• Diversified client base, top three clients contributing ~17% of annual revenue, top 10 making up just 32%, and fourth quarter closed around 34.8 million of new ACV from over 560 separate deals across various industries.

Applied workflow automation is our largest segment, contributing approximately 90% of revenues. In the fourth quarter, on a pro forma basis, this segment had a year-over-year revenue decline of 15.1%. Gross margins increased by 140 basis points year-over-year and 110 basis points sequentially to 18.4%. The technology segment, which makes up about 10% of revenues, had revenue declining by 14.6% year-over-year but increasing 1% sequentially to $21.7 million. For the full year, the European region saw revenue growth of 4.7% year-over-year, and its gross margins increased 130 basis points year-over-year to 28.1%, well above consolidated gross margins of 21.9%.

• 2026 will be a pivotal year, expecting further improvement in margin and substantial progression towards being an AI-led provider of mission-critical workflows.

• Today's remarks may contain forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those described. Detailed discussion on these risks and uncertainties can be found in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K, and our proxy statement and other filings with the SEC.