Executive Summary

Q2 2025 delivered solid top-line growth with revenue of $39.6M (+17.8% YoY, +5.2% QoQ), continued YoY gross margin expansion to 29.8%, and Adjusted EBITDA of $3.3M, though EBITDA declined sequentially and gross margin dipped modestly QoQ .
No formal financial guidance was issued; management emphasized post-close integration of the BPA acquisition and the new scale of XBP Global (annual revenue “approaching $900M,” leverage ~3.5x, net debt ~$350M) as the strategic focus .
EPS from continuing operations was -$0.10; consensus estimates from S&P Global were unavailable, so beat/miss cannot be assessed (see Estimates Context) .
Catalysts: completion of BPA acquisition and name change to XBP Global; improving revenue trajectory; ongoing automation and cost optimization initiatives; governance enhancements with new independent directors .

What Went Well and What Went Wrong

What Went Well

Strong revenue growth across segments; total revenue $39.6M (+17.8% YoY, +5.2% QoQ). Bills & Payments: $28.8M (+15.9% YoY, +9.3% QoQ). Technology: $10.9M (+23.2% YoY, -4.5% QoQ) .
YoY margin improvement continued; gross margin 29.8% (+1,020 bps YoY) driven by automation, cost optimization, and operating leverage per management commentary and investor materials .
CEO tone constructive on integration: “...focused on uplifting the overall company performance, supported by global scale, access to the largest market in the world, and a strengthened financial position...” .

What Went Wrong

Sequential margin/EBITDA softness: gross margin down ~30 bps QoQ; Adjusted EBITDA down 11.2% QoQ to $3.3M as Q1 benefited from higher Technology gross margin and non-recurring dynamics .
Continued net losses: Q2 net loss from continuing operations -$3.446M; interest expense rose to ~$2.023M, weighing on bottom line .
SG&A increased YoY (Q2 SG&A $10.407M vs $5.998M in Q2 2024), reflecting growth initiatives and transaction-related items; adjusted operating profit was positive but GAAP operating loss persisted .

Financial Results

Headline financials vs prior periods and YoY

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$35.645	$37.673	$39.616
Gross Margin %	28.3%	30.1%	29.8%
Adjusted EBITDA ($USD Millions)	$4.404	$3.694	$3.280
EPS (Continuing Ops, $USD)	N/A	-$0.12	-$0.10

Notes:

Revenue uses GAAP “as reported” from non-GAAP reconciliation schedules where available (Q2: $39.616M; Q1: $37.673M) for precision .
Q4 figures from segment table/press materials; no Q4 quarterly EPS disclosed in filings .

Segment Revenue and Gross Margin

Segment	Q1 2025 Revenue ($M)	Q1 2025 GM %	Q2 2025 Revenue ($M)	Q2 2025 GM %
Bills & Payments	$26.3	19.6%	$28.8	22.2%
Technology	$11.4	54.5%	$10.9	50.2%

Additional KPIs and operating items

KPI	Q4 2024	Q1 2025	Q2 2025
Adjusted EBITDA Margin %	12.4% (4.404/35.645)	9.8%	8.3%
Operating Income (Loss) ($M)	$1.0	-$1.787	-$1.611
Cash & Cash Equivalents ($M)	$12.099	$9.681	$6.121

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	None provided	None provided	Maintained (no formal guidance)
Gross Margin	FY/Quarter	None provided	None provided	Maintained (no formal guidance)
Adjusted EBITDA	FY/Quarter	None provided	None provided	Maintained (no formal guidance)
Leverage / Net Debt	Post-acquisition (closing metrics)	N/A	Net debt ≈ $350M; Leverage ≈ ~3.5x TTM Adj. EBITDA for combined company	New disclosure
Strategic scale	Post-acquisition (closing metrics)	N/A	Annual revenue approaching ~$900M for combined company	New disclosure

Management did not issue forward financial guidance; disclosures centered on post-close scale, balance sheet, and integration priorities .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available; themes drawn from the Q2 press release and investor presentation .

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
AI/technology initiatives	Emphasis on automation, AI enablement; improving margins via cost optimization and operating leverage	Continued push: “agentic AI-powered workflow solutions” across sectors; Technology GM remains robust albeit lumpy	Positive momentum; expanding scope
Integration/scale	LOI and plans to acquire BPA; organic ramp of major projects (e.g., HMPO)	Acquisition closed; rebranded to XBP Global; combined annual revenue approaching ~$900M, leverage ~3.5x	Major step change in scale
Cost optimization/operating leverage	Margin expansion from optimization in Q4/Q1	YoY GM up +1,020 bps; commentary highlights automation and optimization	Continuing improvement YoY
Segment performance	B&P ramp; Tech high-margin licenses; mix variability	B&P +15.9% YoY, +9.3% QoQ; Tech +23.2% YoY, -4.5% QoQ; Tech margin lumpy	Mixed QoQ; strong YoY
Governance/regulatory	Nasdaq listing risk disclosure; governance framework updates	Majority independent board with new members; diversified institutional ownership	Strengthened governance
Public sector / regional	Ramp of public sector projects (HMPO); pan-European footprint	Global footprint expanded to 20 countries; 2,500+ clients, >60 Fortune 100	Broader reach post-close

Management Commentary

CEO (Q2): “...focused on uplifting the overall company performance, supported by global scale, access to the largest market in the world, and a strengthened financial position. We look forward to providing more details on the combined company in coming periods.” — Andrej Jonovic, CEO .
Q1 remarks: “...growing revenue, gross margin, and Adjusted EBITDA... driven by expanded use of AI technology and improved operational leverage.” — Andrej Jonovic, CEO .
Q4 remarks: “We ended 2024 with growing momentum... ramp our recently awarded contracts, leading to improving profitability...” — Andrej Jonovic, CEO .

Q&A Highlights

No Q2 earnings call transcript or Q&A was available; investor communications consisted of the 8-K press release and investor presentation .

Estimates Context

Wall Street consensus (S&P Global) for Q2 2025 EPS, revenue, and EBITDA was unavailable at query time; therefore, we cannot assess beat/miss versus consensus. Values retrieved from S&P Global were unavailable for Q2 2025 (Primary EPS Consensus Mean, Revenue Consensus Mean, EBITDA Consensus Mean, # of estimates) — S&P Global consensus not available.
Implication: Near-term estimates likely require substantial model updates beginning in Q3 to reflect consolidation of BPA into XBP Global and the new balance sheet/leverage metrics disclosed post-close .

Key Takeaways for Investors

Revenue trajectory is improving with four consecutive quarters of sequential growth through Q2; YoY gross margin expansion underscores benefits from automation and cost optimization .
Sequential margin/EBITDA pullback in Q2 reflects mix/timing (Technology lumpy), highlighting the importance of monitoring segment mix and license timing in H2 .
Post-acquisition scale and deleveraging (net debt ≈ $350M; ~3.5x leverage) are the core medium-term thesis: larger footprint, broadened client base, and lower interest burden drive potential operating leverage and cash generation .
Trading setup: near-term narrative likely driven by integration execution and disclosure cadence on the combined entity; lack of formal guidance means headlines around synergy realization and segment wins could be key catalysts .
Watch SG&A discipline and interest expense trends; both materially influence path to profitability (Q2 SG&A $10.4M; interest ~$2.0M) .
Expect Street models to reset post-close; investors should track first combined-company quarter to gauge margins, segment momentum, and cash conversion (no Q2 consensus available to benchmark) .
Governance upgrades and diversified institutional base are positives for perception and potential capital market flexibility .

XBP Global Holdings, Inc. (XBP)·Q2 2025 Earnings Summary