XBP Europe Holdings, Inc. reported a total revenue of $142.8 million for the fiscal year ending December 31, 2024, a decrease of 8% from $155.2 million in 2023. The company's revenue is primarily derived from its two segments: Bills & Payments, which generated $101.9 million, and Technology, which contributed $40.9 million. The decline in revenue was attributed to the completion of one-time projects, lower transaction volumes, and the expiration of client contracts, although this was partially offset by new contracts and revenue ramping from existing clients. The company also reported a net loss from continuing operations of $6.5 million, compared to a loss of $5.6 million in the previous year.
In terms of operational metrics, XBP Europe serves over 2,000 clients across Europe, the Middle East, and Africa, with a relatively low client concentration; the top ten clients accounted for 27.6% of total revenue in 2024. The company processed several hundred million payment transactions annually, leveraging a hybrid cloud-based infrastructure. As of December 31, 2024, XBP Europe employed approximately 1,450 individuals across 16 countries, reflecting a strategic focus on enhancing its workforce to support its digital transformation initiatives.
Significant strategic developments included the launch of new products such as XBP Omnidirect, a cloud-based communication management platform, and Reaktr.ai, which focuses on cybersecurity and data modernization. Additionally, the company secured a multi-year contract with His Majesty’s Passport Office in the UK valued at approximately $40 million, aimed at digitizing historical records. These initiatives are part of XBP's broader strategy to expand its service offerings and enhance client relationships, particularly in the public sector.
The company’s financial position showed a total debt of $28.9 million as of December 31, 2024, an increase from $16.6 million in the previous year, primarily due to new borrowings under the 2024 Senior Credit Facilities. XBP Europe has also been proactive in managing its costs, with total cost of revenue decreasing by 9.4% to $104.5 million, reflecting improved operational efficiencies. However, the company continues to face challenges, including rising labor costs and the need to maintain competitive pricing in a highly fragmented market.
Looking ahead, XBP Europe anticipates continued demand for its services, particularly in the public sector, driven by government expenditure and digital transformation initiatives across Europe. The company is focused on expanding its client base and enhancing its technology offerings to adapt to evolving market needs. However, it acknowledges potential risks, including economic uncertainties and competition, which could impact its ability to achieve sustained profitability.
About XBP Europe Holdings, Inc.
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