Executive Summary

Q4 2024 revenue was $35.6M (+0.7% q/q; -7.5% y/y) with gross margin of 28.3% (-440 bps q/q; +480 bps y/y); operating profit was $1.0M; net loss was $2.7M including $0.5M FX losses; Adjusted EBITDA was $4.4M .
Sequential momentum came from ~$25M ACV in active ramp and the HMPO go-live, though margins compressed sequentially versus Q3’s strong print .
No formal 2025 guidance was issued; management highlighted a non-binding LOI to acquire Exela Technologies BPA, LLC, which if consummated could expand revenue to >$1B (non-binding, subject to approvals) .
Wall Street consensus (S&P Global) was unavailable at time of writing due to API limits; beat/miss versus estimates cannot be assessed.

What Went Well and What Went Wrong

Gross margin improved y/y to 28.3% in Q4, with management attributing improvements to better operational leverage, automation, and optimization flow-through; adjusted EBITDA remained solid at $4.4M .
Sequential revenue growth for the second consecutive quarter as ~$25M of active project ramp-ups accelerated, including His Majesty’s Passport Office (HMPO) go-live .
CEO tone constructive on organic trajectory: “We ended 2024 with growing momentum... improving profitability and operating metrics. We are excited about our organic growth trajectory in 2025...” .

Sequential margin compression: gross margin fell 440 bps q/q to 28.3%, and Technology segment gross margin fell 1,120 bps q/q to 47.8% .
Net loss remained ($2.7M) in Q4, impacted by $0.5M FX losses, despite y/y improvement; revenue fell y/y due to completed projects, lower volumes, and client contract ends .
Adjusted EBITDA was down y/y (-30.7%) in Q4 as mix and lower Technology license volumes weighed versus prior-year levels .

Metric	Q3 2024	Q4 2024
Revenue ($USD Millions)	$35.400	$35.645
Gross Margin %	32.6%	28.3%
Operating Profit ($USD Millions)	$2.5	$1.0
Adjusted EBITDA ($USD Millions)	$4.846	$4.4
Net Loss ($USD Millions)	$(2.769)	$(2.7)

Note: Q4 2024 EPS was not disclosed in the press release/filing; Q3 2024 continuing ops EPS was $(0.04) .

Metric	Q4 2023	Q4 2024
Bills & Payments Revenue ($USD Millions)	$27.368	$25.851
Bills & Payments Segment Gross Profit ($USD Millions)	$3.165	$5.391
Technology Revenue ($USD Millions)	$11.165	$9.794
Technology Segment Gross Profit ($USD Millions)	$5.895	$4.686
Total Revenue ($USD Millions)	$38.533	$35.645
Total Segment Gross Profit ($USD Millions)	$9.061	$10.077

KPI	Q3 2024	Q4 2024
Active ACV in Ramp ($USD Millions)	~$25	~$25
Cash & Cash Equivalents ($USD Millions)	$7.8	$12.1
SG&A ($USD Millions)	$6.8	$6.7

Context:

Q4 gross margin was 28.3% vs 32.6% in Q3; the Q4 y/y margin gain was driven by Bills & Payments ramp and cost optimization .
Technology segment mix decelerated sequentially (GM 47.8% in Q4 vs 59% in Q3) given lower license volumes and mix shift .

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Revenue	FY 2025	None issued	None issued	Maintained (no formal guidance)
Gross Margin	FY 2025	None issued	None issued	Maintained (no formal guidance)
Adjusted EBITDA	FY 2025	None issued	None issued	Maintained (no formal guidance)
Strategic	2025	—	Non-binding LOI to acquire Exela BPA; potential to expand revenue to >$1B (subject to definitive agreement, approvals; non-binding)	New strategic optionality

Management did not provide formal numerical guidance; they emphasized ramping contracts and the BPA LOI (non-binding) .

Note: A Q4 2024 earnings call transcript was not found in the document set; themes reflect press release and investor presentation content.

Topic	Previous Mentions (Q-2)	Previous Mentions (Q-1: Q3 2024)	Current Period (Q4 2024)	Trend
Contract ramp/Backlog	Not found in available filings	~$25M active ACV ramp; HMPO go-live	~$25M active ACV ramp; continued sequential revenue growth	Improving ramp driving sequential growth
Margin drivers	Not found	GM improvement from operational leverage, automation, optimization	GM y/y up, but sequential down; mix effects; continued cost optimization	Mixed: y/y up, q/q down
Cloud/AI enablement	Not found	Emphasis on data modernization and AI-enabled solutions	Continued cloud/AI positioning; solution suite highlights	Strategic focus sustained
Public sector frameworks	Not found	Selected for UK G-Cloud 14 framework	Ongoing opportunity from government digitization initiatives	Structural tailwind
Strategic M&A	Not found	—	Non-binding LOI to acquire Exela BPA; >$1B pro forma revenue potential (non-binding)	New optionality

Prepared remarks emphasize momentum: “We ended 2024 with growing momentum, as we continued to ramp our recently awarded contracts, leading to improving profitability and operating metrics. We are excited about our organic growth trajectory in 2025...” — Andrej Jonovic, CEO .
Strategic message: Non-binding LOI to acquire Exela BPA, with potential to scale revenue to >$1B on a pro forma basis, subject to due diligence, regulatory approvals, and shareholder approval; caution that LOI is non-binding and there is no assurance of completion .
Operating focus: Margin improvements driven by cost optimization and operating leverage; SG&A reductions; Bills & Payments ramp benefiting profitability .

A Q4 2024 earnings call transcript was not available in the filings/documents reviewed; Q&A themes and clarifications cannot be assessed from primary sources in this document set.

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at time of writing due to API request limits; therefore, results versus consensus cannot be evaluated.
Directionally, estimate revisions may consider: (i) sequential margin compression versus a strong Q3, (ii) ongoing ramp benefits in B&P and public sector implementations, and (iii) optionality from the BPA LOI (non-binding) .

Sequential revenue growth persisted as contract ramps accelerated; monitoring margin direction into Q1/Q2 2025 is key after Q4’s sequential compression .
Bills & Payments profitability improved y/y, highlighting leverage from large ramps and cost optimization; Technology mix weakened sequentially on lower license volumes .
Liquidity improved with year-end cash of $12.1M, aided by financing activity; watch interest expense and FX impacts on bottom line .
The BPA LOI introduces significant strategic optionality but carries execution and regulatory risks; status updates will be critical to sentiment .
With no formal guidance and estimates unavailable, near-term trading likely hinges on ongoing ramp metrics, margin recovery trajectories, and any M&A developments disclosed .
Public sector frameworks (e.g., UK G-Cloud 14) and HMPO implementation underpin the medium-term thesis in bills and payments digitization across EMEA .

Sources: XBP Europe Q4 2024 Form 8-K press release, exhibits and investor presentation ; Q3 2024 Form 8-K press release and investor materials .