XBP Europe Holdings, Inc. reported a decline in revenue for the third quarter and the first nine months of fiscal year 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenue was $35.4 million, down 5.6% from $37.5 million in Q3 2023. The nine-month revenue also decreased by 8.1%, totaling $106.987 million compared to $116.411 million in the prior year. The decline was attributed to reduced revenue in both the Bills & Payments and Technology segments, with the former contributing $24.6 million and the latter $10.8 million in Q3 2024.
Despite the revenue drop, the company reported an operating profit of $2.5 million for Q3 2024, a significant increase from $348,000 in Q3 2023. The cost of revenue decreased by 15.6% to $23.9 million, leading to a lower cost of revenue as a percentage of total revenue, which fell to 67.4% from 75.3% in the previous year. Selling, general, and administrative expenses remained relatively stable, decreasing slightly to $6.8 million.
XBP Europe Holdings experienced a net loss of $2.8 million for Q3 2024, a slight improvement from a net loss of $2.9 million in Q3 2023. However, the net loss for the nine months ended September 30, 2024, increased to $9.7 million from $6.0 million in the same period last year. The company’s net loss from continuing operations for the nine months was $(5.6) million, compared to $(1.4) million in 2023.
The company’s financial position showed a total debt increase to $31.5 million as of September 30, 2024, up from $16.6 million at the end of 2023, primarily due to borrowings under new credit facilities. Cash and cash equivalents rose to $7.8 million from $6.5 million over the same period.
Strategically, XBP Europe completed a business combination with CF Acquisition Corp. VIII on November 29, 2023, which resulted in a name change and a restructuring plan aimed at realigning business priorities and rightsizing the workforce. The company also classified certain on-demand printing operations as discontinued, reflecting a significant strategic shift.
The company’s restructuring liabilities decreased to $1.5 million as of September 30, 2024, from $5.3 million at the end of 2023, indicating progress in its restructuring efforts. The company continues to focus on optimizing its operations and enhancing its financial controls following the merger.
About XBP Europe Holdings, Inc.
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