XBP Europe Holdings (XBP) AI Stock Analysis

• Market Cap: $35.56M
• Dividend Yield: N/A
• Average Volume (3M): 46.18K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.38
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,310
• Sector: Financial
• Sector Strength: 73
• Industry: Software - Infrastructure
• EPS (TTM): -0.14
• Shares Outstanding: 35,915,546
• 10 Day Avg. Volume: 73,467
• 30 Day Avg. Volume: 46,178
• PEG Ratio: 1.04
• Price to Book (P/B): -11.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 89.11
• Enterprise Value/Market Cap: 9.68
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 10.33
• Enterprise Value/Ebitda: 46.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: $1.00 ▲(1.01%Upside)

XBP's overall stock score is primarily influenced by its poor financial performance, characterized by declining revenues, high leverage, and negative cash flows. Technical analysis also indicates bearish momentum, adding further downside risk. Valuation metrics are weak due to ongoing losses. The successful Nasdaq compliance is a positive factor but does not significantly alter the fundamental challenges.

XBP Europe Holdings Business Overview & Revenue Model

Company Description

XBP Europe Holdings, Inc. provides bills, payments, and related solutions and services in France, Germany, the United Kingdom, Sweden, and internationally. The company operates through two segments, Bills & Payments and Technology. The Bills & Payments segment focuses on optimizing how bills and payments are processed by businesses of all sizes and industries. This segment also offers automation of accounts payable and accounts receivables processes and seeks to integrate buyers and suppliers, as well as engages in digital transformation business. The Technology segment engages in the sale of recurring software licenses and related maintenance, and hardware solutions, as well as provision of related maintenance and professional services. In addition, the company offers XBP platform that provides a secured network allowing billers, consumers, and businesses to communicate and transact; XBP Omnidirect, a cloud-based platform that provides enterprise level client communication management; and Reaktr.ai for cybersecurity, data modernization and cloud management, and generative AI. Further, it provides request to pay solutions; enterprise information management solutions; robotic process automation solutions; digital mailroom and records digitization solutions; business process management and intelligent workflow automation solutions; integrated communications solution; banking and financial industry solutions and services; cross-border payments; digitization of checks; confirmation of payee; and mortgage and loan management solutions. The company is based in Egham, the United Kingdom. XBP Europe Holdings, Inc. operates as a subsidiary of Exela Technologies, Inc.

How the Company Makes Money

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XBP Europe Holdings Financial Statement Overview

Summary

XBP Europe Holdings is experiencing significant financial difficulties across its income statement, balance sheet, and cash flow statement. Declining revenues, persistent losses, high leverage, and negative cash flows indicate a need for strategic adjustments. The company must focus on improving operational efficiencies, reducing leverage, and stabilizing cash flows to enhance financial health and ensure long-term sustainability.

Income Statement

The company's income statement reveals declining revenue trends with a decrease from 2020 to TTM 2025. Gross profit margin has consistently decreased, indicating pressure on core operations. Net profit margins have been negative, showing persistent losses. The EBIT and EBITDA margins are weak, reflecting operational inefficiencies. Overall, the income statement indicates a struggling revenue base with profitability challenges.

Balance Sheet

The balance sheet shows negative stockholders' equity, indicating financial distress. The debt-to-equity ratio is not calculable due to negative equity, but high liabilities suggest significant leverage. The equity ratio is negative, highlighting an imbalance between assets and liabilities. Overall, the balance sheet signals high leverage and financial instability, which poses a risk to the company's long-term viability.

Cash Flow

Cash flow analysis reveals negative operating cash flows and free cash flows in TTM 2025, highlighting liquidity issues. Despite improvements in financing activities, the company struggles to generate positive cash from operations. The free cash flow to net income ratio is negative, indicating insufficient cash generation relative to net losses. Overall, the cash flow statement suggests liquidity constraints and inadequate cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
139.59M	142.41M	155.18M	180.49M	205.95M	217.54M
	Gross Profit
33.32M	37.89M	39.87M	43.70M	40.93M	42.05M
	EBIT
-703.00K	3.47M	1.12M	-1.95M	-3.81M	-19.07M
	EBITDA
2.35M	5.77M	5.89M	2.06M	-644.00K	-14.70M
	Net Income Common Stockholders
-12.47M	-12.37M	-11.05M	-7.93M	-12.73M	-28.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.68M	12.10M	6.54M	7.47M	2.91M	9.25M
	Total Assets
98.98M	88.05M	104.43M	122.84M	127.00M	161.70M
	Total Debt
12.01M	35.39M	39.19M	37.75M	45.86M	56.16M
	Net Debt
2.33M	23.29M	32.28M	30.28M	42.95M	46.91M
	Total Liabilities
119.36M	109.39M	117.00M	149.77M	153.53M	180.94M
	Stockholders Equity
-20.39M	-21.35M	-12.57M	-26.93M	-26.53M	-19.25M
Cash Flow		Free Cash Flow
-4.33M	-6.49M	-3.36M	3.52M	-4.95M	3.21M
	Operating Cash Flow
-2.04M	-5.23M	-692.00K	9.89M	-3.04M	5.40M
	Investing Cash Flow
-2.42M	-1.71M	-2.67M	-6.37M	1.15M	-2.19M
	Financing Cash Flow
10.71M	12.45M	-1.15M	-1.33M	-4.62M	6.23M

XBP Europe Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XBP, the sentiment is Negative. The current price of 0.99 is below the 20-day moving average (MA) of 1.04, below the 50-day MA of 1.09, and below the 200-day MA of 1.13, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.18 is Neutral, neither overbought nor oversold. The STOCH value of 47.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XBP.

XBP Europe Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
VRAR	56 Neutral	$28.42M	―	-40.76%	―	-12.30%	76.19%
KPLT	49 Neutral	$36.75M	―	86.76%	―	9.71%	-1.97%
XBP	39 Underperform	$35.56M	―	87.90%	―	―	―
VHC		$36.37M	―	-39.67%	―	―	―
MSAI	43 Neutral	$24.24M	―	-308.31%	―	―	―
UBXG		$64.43M	22.08	-1.44%	―	―	―

XBP Europe Holdings Corporate Events

XBP Europe Holdings Reports Q1 2025 Financial Results

On May 15, 2025, XBP Europe Holdings reported its financial results for the first quarter ending March 31, 2025. The company experienced a 1.2% year-over-year revenue decrease to $37.7 million, but a sequential increase of 5.7%. Gross margin improved by 380 basis points year-over-year, and adjusted EBITDA rose by 25.6%. Despite an operating loss due to non-cash stock-based compensation, adjusted figures showed a profit improvement. The company also announced a pending acquisition of Exela Technologies BPA, LLC, which could significantly increase its revenue if completed.

XBP Europe Holdings Secures Nasdaq Listing Compliance

XBP Europe Holdings, Inc. announced on May 8, 2025, that it had successfully demonstrated compliance with Nasdaq Listing Rule 5550(b)(2), allowing its securities to continue being listed on The Nasdaq Stock Market LLC. This follows a series of events starting from a deficiency notice received on April 24, 2024, due to non-compliance with the Nasdaq Global Market’s minimum market value requirement. The company requested to transfer its listing to the Nasdaq Capital Market and presented a compliance plan at a hearing on December 12, 2024. By April 4, 2025, XBP Europe Holdings met the necessary market value requirements, securing its continued listing on the Nasdaq Capital Market.

XBP Europe Holdings Reports 2024 Financial Results

On March 19, 2025, XBP Europe Holdings reported its financial results for the fourth quarter and full year of 2024, showing a revenue decline of 8.0% year-over-year to $142.8 million, despite an increase in gross margin and operating profit. The company also announced a potential acquisition of Exela Technologies BPA, LLC, which could significantly boost its annual revenue to approximately $1 billion, marking a strategic move to enhance its market position and scale.