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XBP Europe Holdings (XBP)
NASDAQ:XBP
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XBP Europe Holdings (XBP) AI Stock Analysis

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XBP

XBP Europe Holdings

(NASDAQ:XBP)

Rating:47Neutral
Price Target:
$0.50
▼(-19.35% Downside)
The overall stock score of 47 reflects significant financial challenges, including high leverage and negative equity, which weigh heavily on the score. While the recent acquisition and corporate restructuring are positive, they are not enough to offset the poor financial performance and valuation concerns. Technical indicators also suggest bearish momentum, further impacting the score.

XBP Europe Holdings (XBP) vs. SPDR S&P 500 ETF (SPY)

XBP Europe Holdings Business Overview & Revenue Model

Company DescriptionXBP 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 MoneyXBP generates revenue through multiple streams including direct sales of software solutions, service contracts for telecommunications infrastructure projects, and licensing agreements for its proprietary technologies. The company also earns income from consultancy services tailored to optimize technology deployment in client operations. Significant partnerships with key players in the tech and telecom industries further bolster its revenue potential, allowing XBP to tap into emerging market opportunities and expand its client base.

XBP Europe Holdings Financial Statement Overview

Summary
XBP Europe Holdings faces significant financial challenges, with declining revenues, persistent losses, and a leveraged balance sheet. The company must address operational inefficiencies and improve cash flow management to stabilize its financial position and achieve profitability.
Income Statement
45
Neutral
XBP Europe Holdings has faced declining revenues over the past years, with a significant drop from $217.5M in 2020 to $142.4M in 2024. Gross profit margins have been relatively stable, but the company has consistently reported net losses, indicating challenges in achieving profitability. The EBIT and EBITDA margins have shown some improvement, but remain low, reflecting operational inefficiencies.
Balance Sheet
30
Negative
The balance sheet reveals a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, but the high level of debt relative to assets suggests significant leverage. The equity ratio is negative, highlighting a concerning financial position with liabilities exceeding assets.
Cash Flow
40
Negative
Cash flow analysis shows negative free cash flow in recent years, with a decline in operating cash flow. The company has struggled to generate positive cash flow from operations, which is critical for sustainability. The free cash flow to net income ratio is negative, reflecting ongoing cash flow challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue139.59M142.41M155.18M180.49M205.95M217.54M
Gross Profit33.32M37.89M39.87M43.70M40.93M42.05M
EBITDA2.35M5.77M5.89M2.06M-644.00K-14.70M
Net Income-12.47M-12.37M-11.05M-7.93M-12.73M-28.38M
Balance Sheet
Total Assets98.98M88.05M104.43M122.84M127.00M161.70M
Cash, Cash Equivalents and Short-Term Investments9.68M12.10M6.54M7.47M2.91M9.25M
Total Debt36.30M35.39M39.19M37.75M45.86M56.16M
Total Liabilities119.36M109.39M117.00M149.77M153.53M180.94M
Stockholders Equity-20.39M-21.35M-12.57M-26.93M-26.53M-19.25M
Cash Flow
Free Cash Flow-4.33M-6.49M-3.36M3.52M-4.95M3.21M
Operating Cash Flow-2.04M-5.23M-692.00K9.89M-3.04M5.40M
Investing Cash Flow-2.42M-1.71M-2.67M-6.37M1.15M-2.19M
Financing Cash Flow10.71M12.45M-1.15M-1.33M-4.62M6.23M

XBP Europe Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.62
Price Trends
50DMA
0.86
Negative
100DMA
0.99
Negative
200DMA
1.06
Negative
Market Momentum
MACD
-0.11
Positive
RSI
44.10
Neutral
STOCH
71.08
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 0.62 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.86, and below the 200-day MA of 1.06, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 44.10 is Neutral, neither overbought nor oversold. The STOCH value of 71.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XBP.

XBP Europe Holdings Risk Analysis

XBP Europe Holdings disclosed 42 risk factors in its most recent earnings report. XBP Europe Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

XBP Europe Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$28.21M-40.76%-12.30%76.19%
55
Neutral
$65.66M86.76%13.23%-1.78%
48
Neutral
C$3.32B0.26-6.09%7.64%9.19%-16.12%
47
Neutral
$69.24M87.90%
$55.78M-42.34%
40
Underperform
$24.48M-335.10%
$77.52M22.08-1.44%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XBP
XBP Europe Holdings
0.62
-0.62
-50.00%
VHC
Virnetx Holding
12.93
5.64
77.37%
KPLT
Katapult Holdings
15.40
3.75
32.19%
VRAR
Glimpse Group
1.32
0.34
34.69%
MSAI
Infrared Cameras Holdings
0.69
-1.47
-68.06%
UBXG
U-BX Technology Ltd.
3.86
-33.74
-89.73%

XBP Europe Holdings Corporate Events

Executive/Board ChangesM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
XBP Europe Holdings Reports Strong Q2 Financial Results
Positive
Aug 14, 2025

On August 14, 2025, XBP Global Holdings, Inc. announced its second-quarter financial results, highlighting a 17.8% year-over-year revenue increase to $39.6 million and a 173.8% rise in adjusted EBITDA. The company completed its acquisition of Exela Technologies BPA, LLC, leading to a name change and expanded global presence, with expectations of annual revenue nearing $900 million and a workforce of approximately 11,000 employees across 20 countries. The acquisition also resulted in a more diversified ownership structure and the appointment of four new board members, enhancing governance and long-term value creation.

Business Operations and StrategyRegulatory Filings and Compliance
XBP Global Holdings Completes Major Restructuring with Exela
Neutral
Aug 4, 2025

On July 29, 2025, XBP Global Holdings, formerly known as XBP Europe Holdings, completed a significant restructuring process in collaboration with Exela Technologies BPA and its affiliates. This restructuring involved entering into various agreements, including a Registration Rights Agreement, a Shareholder Rights Agreement, and a Tax Funding Agreement, among others. The restructuring also saw the issuance of 81,799,821 shares of common stock and warrants, as well as the termination of certain indentures and the cancellation of obligations. The company also amended its charter to increase authorized shares and adopted new bylaws reflecting governance changes.

M&A TransactionsShareholder MeetingsStock SplitBusiness Operations and Strategy
XBP Europe Completes Acquisition of Exela Technologies
Positive
Jul 31, 2025

On July 25, 2025, XBP Europe Holdings, Inc. subsidiaries entered into an Amendment Agreement with HSBC UK Bank plc, extending the termination date and amending financial covenants to support a restructuring plan. The company also held its annual meeting, where several proposals were voted on, including a name change to XBP Global Holdings, Inc., an increase in authorized shares, and a reverse stock split. On July 30, 2025, XBP Europe announced the completion of its acquisition of Exela Technologies BPA, LLC, emerging from Chapter 11. This acquisition is expected to expand XBP Global’s annual revenue to over $900 million and enhance its global presence with strategic investments in AI-powered solutions, strengthening its financial position and corporate governance.

M&A TransactionsLegal Proceedings
XBP Europe Holdings Completes Exela Technologies Acquisition
Neutral
Jul 21, 2025

On July 15, 2025, XBP Americas, a subsidiary of XBP Europe Holdings, completed the acquisition of Exela Technologies BPA, LLC, and its subsidiaries from Exela Technologies, Inc. for $1.00, due to the BPA Group’s involvement in Chapter 11 bankruptcy proceedings. The transaction, considered a related party transaction due to common ownership, is subject to conditions that could lead to its rescission if not met by August 7, 2025.

M&A TransactionsLegal Proceedings
XBP Europe Holdings Acquires Exela Technologies BPA
Neutral
Jul 10, 2025

On July 3, 2025, XBP Europe Holdings, Inc. announced its subsidiary’s entry into a Membership Interest Purchase Agreement to acquire Exela Technologies BPA, LLC and its subsidiaries for $1.00, reflecting the encumbered nature of the assets and ongoing Chapter 11 bankruptcy proceedings. The acquisition is contingent on several conditions, including court orders and restructuring plans, with a potential rescindment if the BPA Group does not emerge from bankruptcy by August 7, 2025. Additionally, XBP entered a Transaction Support Agreement to facilitate the restructuring under the Debtors’ Plan of Reorganization, which involves issuing shares of XBP common stock to satisfy claims and is part of a comprehensive settlement confirmed by the Bankruptcy Court.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025