NASDAQ$XBP
Xbp Europe Holdings Inc · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Revenue decreased due to a large one-time license sale in Q2 2023, completion of projects, lower volumes, and client contract ends, offset by new business. Gross margin and Adjusted EBITDA also declined, while a comprehensive financing transaction was completed with HSBC.
XBP Europe Holdings reported a decrease in revenue for Q2 2024, primarily due to a large one-time license sale in the same quarter last year, along with project completions and lower volumes. The company experienced a net loss, a decline in gross margin, and a significant decrease in Adjusted EBITDA. However, they secured a new financing agreement to bolster liquidity and are optimistic about future contract launches.
- Revenue decreased by 14.8% year-over-year to $36.1 million.
- Gross margin declined by 920 bps year-over-year to 18.4%.
- Net loss was $4.7 million, including $0.7 million in FX losses.
- Adjusted EBITDA decreased by 92.8% year-over-year to $0.3 million.
Headline financials
Revenue & EPS history
Xbp Europe Holdings · Revenue · Quarterly
$36M
Revenue by segment
Xbp Europe Holdings · $197M total across 2 segments · Q1 2026
- Applied Workflow Automation$178M—90.5%
- Technology$18.7M—9.5%
Forward guidance
Company expects to spend approximately $1.5 to $2.5 million on capital expenditures and capitalizable contracts set-up cost over the next 12 months.
Tailwinds
- Sales funnel is encouraging.
- Ramp-up of large public sector contracts, including HMPO, is expected to launch soon.
- Strategic financing transaction provides ample liquidity.
- Company is optimistic about the rest of 2024.
- Financing agreement with HSBC UK Bank plc to refinance the Company’s UK subsidiary’s existing indebtedness and provide up to $33 million of incremental liquidity
Headwinds
- Revenue declined 14.8% year-over-year.
- Gross margin decreased sequentially and year-over-year.
- Net loss includes FX losses.
- Adjusted EBITDA decreased significantly.
- Lower revenues coupled with unfavorable mix
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 13 quarterly earnings reports · overlaid with Q2 2024
+0.3%
Avg return
Earnings day
+0.7%
Avg return
5 days after
-3.1%
Avg return
30 days after
33%
5 / 15 earnings
Positive
+40.8%
Q3 2024
Best reaction
-12.8%
Q1 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2025 | +2.0% | -14.8% | — | |
| Q1 2026 | -6.6% | +5.7% | +7.9% | |
| Q3 2025 | -4.9% | -14.6% | -15.5% | |
| Q2 2025 | +0.0% | +30.6% | +121.7% | |
| Q1 2025 | -4.4% | -6.0% | -14.7% | |
| Q3 2024 | +40.8% | +50.7% | +17.7% | |
| Q2 2024 | -6.3% | -3.9% | -6.3% | |
| Q1 2024 | -12.8% | -34.1% | -64.1% | |
| Q4 2023 | +0.0% | -2.4% | -36.4% | |
| Q3 2023 | -2.7% | +1.3% | -55.9% | |
| Q2 2023 | -1.7% | -2.5% | -0.5% | |
| Q1 2023 | +0.1% | +0.1% | +1.0% | |
| Q4 2022 | +0.0% | +0.0% | +0.6% | |
| Q1 2022 | +0.0% | +0.2% | +0.5% | |
| Q3 2021 | +0.2% | +0.0% | +0.2% |
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