Gross margins have compressed significantly from 30.1% in 2025Q1 to 15.4% in 2026Q1, reflecting the scalability constraints of a service-heavy business model.
| Sales/Revenue | 652.76M | 791.04M | 142.77M | 155.18M | 180.49M | 205.95M | 217.54M |
| Revenue Growth % | 91.71% | 454.06% | -7.99% | -14.03% | -12.36% | -5.33% | - |
| Cost of Goods Sold | 547.15M | 667.91M | 104.51M | 115.31M | 136.79M | 165.02M | 175.5M |
| COGS % of Revenue | - | 84.43% | 73.2% | 74.31% | 75.79% | 80.13% | 80.67% |
| Gross Profit | 105.65M | 123.13M | 38.26M | 39.87M | 43.7M | 40.93M | 42.05M |
| Gross Margin % | 16.19% | 15.57% | 26.8% | 25.69% | 24.21% | 19.87% | 19.33% |
| Gross Profit Growth % | - | 221.85% | -4.04% | -8.78% | 6.79% | -2.66% | - |
| Operating Expenses | 121.81M | 111.04M | 34.79M | 38.75M | 45.66M | 44.74M | 61.12M |
| OpEx % of Revenue | - | 14.04% | 24.36% | 24.97% | 25.29% | 21.72% | 28.09% |
| Selling, General & Admin | 110.14M | 99.9M | 26.52M | 31.17M | 32.15M | 30.6M | 44.18M |
| SG&A % of Revenue | - | 12.63% | 18.58% | 20.09% | 17.81% | 14.86% | 20.31% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 11.14M | 8.26M | 7.58M | 13.5M | 14.14M | 16.93M |
| Operating Income | -16.15M | 12.09M | 3.47M | 1.12M | -1.95M | -3.81M | -19.07M |
| Operating Margin % | -2.47% | 1.53% | 2.43% | 0.72% | -1.08% | -1.85% | -8.77% |
| Operating Income Growth % | - | 248.33% | 210.83% | 157.28% | 48.81% | 80.03% | - |
| EBITDA | 28.76M | 60.63M | 7.19M | 4.97M | 2.44M | 1.36M | -12.74M |
| EBITDA Margin % | 4.41% | 7.66% | 5.03% | 3.2% | 1.35% | 0.66% | -5.85% |
| EBITDA Growth % | 93.36% | 743.63% | 44.67% | 103.19% | 80.18% | 110.65% | - |
| D&A (Non-Cash Add-back) | 44.91M | 48.54M | 3.71M | 3.85M | 4.39M | 5.17M | 6.33M |
| EBIT | -15.45M | 12.09M | 2.7M | 2.04M | -2.31M | -6.97M | -21.03M |
| Net Interest Income | -126.27M | -99.46M | -6.32M | -7.01M | -3.04M | 17.67K | -2.63M |
| Interest Income | 0 | 0 | 0 | 0 | 25K | 17.67K | 217K |
| Interest Expense | 126.27M | 99.46M | 6.32M | 7.01M | 3.06M | 0 | 2.84M |
| Other Income/Expense | 1.15B | 1.13B | -7.09M | -6.08M | -3.42M | -6M | -4.8M |
| Pretax Income | 1.14B | 1.14B | -3.62M | -4.96M | -5.37M | -9.81M | -23.88M |
| Pretax Margin % | 174.06% | 144.67% | -2.54% | -3.2% | -2.97% | -4.76% | -10.97% |
| Income Tax | 37.44M | 40.89M | 2.91M | 606K | 2.56M | 2.92M | 4.5M |
| Effective Tax Rate % | 3.29% | 3.57% | -80.37% | -12.21% | -47.74% | -29.77% | -18.86% |
| Net Income | 1.1B | 1.1B | -12.37M | -11.05M | -7.93M | -12.73M | -28.38M |
| Net Margin % | 167.8% | 139.5% | -8.66% | -7.12% | -4.39% | -6.18% | -13.04% |
| Net Income Growth % | 2834.47% | 9023.94% | -11.94% | -39.32% | 37.7% | 55.15% | - |
| Net Income (Continuing) | 1.1B | 1.1B | -6.53M | -5.57M | -7.93M | -12.73M | -28.38M |
| Discontinued Operations | -1000K | 0 | -5.83M | -5.48M | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 93.18 | 93.87 | -0.41 | -0.49 | -0.26 | -0.42 | -0.94 |
| EPS Growth % | -1097.68% | 22995.12% | 16.33% | -88.46% | 38.1% | 55.32% | - |
| EPS (Basic) | - | 93.87 | -0.41 | -0.49 | -0.26 | -0.42 | -0.94 |
| Diluted Shares Outstanding | 11.76M | 11.76M | 30.17M | 30.17M | 30.17M | 30.17M | 30.17M |
| Basic Shares Outstanding | 11.76M | 11.76M | 30.17M | 30.17M | 30.17M | 30.17M | 30.17M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
High Debt Service Burden
According to historical income statements, XBP's revenue trajectory exhibits extreme volatility, with quarterly figures fluctuating between $33.6M and $233.4M, suggesting that reported growth rates are heavily influenced by non-organic events rather than consistent, repeatable demand for its infrastructure software and payment processing services.
The erratic top-line performance indicates that the company is likely still integrating disparate business units following its public listing. Investors should monitor whether the firm can stabilize its revenue base, as the current fluctuations make it difficult to discern a clear organic growth trend.
As reported in financial filings, XBP maintains a gross margin profile that has compressed from over 30% in early 2025 to approximately 15.4% by 2026Q1, highlighting a reliance on labor-intensive processing that prevents the company from achieving the scalability typically associated with infrastructure software providers.
This margin compression suggests that the cost of delivering services is rising faster than the company's ability to implement automated software solutions. The inability to maintain higher gross margins implies that the firm may lack the pricing power necessary to offset inflationary pressures in its European operational footprint.
Based on the provided income statement data, XBP's operating income has frequently dipped into negative territory, with a 2026Q1 operating margin of -7.7%, indicating that the company has yet to achieve the necessary scale to cover its fixed SG&A expenses through its current gross profit generation.
The lack of positive operating leverage suggests that every incremental dollar of revenue is currently insufficient to drive meaningful bottom-line expansion. This trend warrants further investigation into whether management can successfully streamline SG&A costs without compromising the core service delivery required by its enterprise client base.
As evidenced by the 2025Q3 net income spike to $1.2B against a backdrop of operating losses, XBP's reported earnings are heavily distorted by non-operating items, which obscures the underlying operational health and makes standard EPS metrics largely irrelevant for assessing the company's true recurring profitability.
The massive discrepancy between net income and operating performance suggests that investors should focus exclusively on operating cash flow and EBITDA to gauge the firm's viability. Relying on reported net income may lead to a fundamental misunderstanding of the company's ability to generate sustainable shareholder value.
Based on reported figures, the company's Debt/Equity ratio of 4.94 creates a precarious financial position where interest obligations may exceed the firm's thin operating margins, potentially forcing management to prioritize debt service over the R&D investments needed to transition toward a higher-margin software-centric business model.
Short-sellers would likely focus on the risk that the company's current cash burn rate, combined with its high leverage, could necessitate dilutive equity raises. This structural vulnerability suggests that any minor disruption in transaction volumes could lead to a liquidity crisis, regardless of the perceived stickiness of the underlying client relationships.
Quick answers to the most common questions about buying XBP stock.
For fiscal year 2025, XBP Global Holdings, Inc. (XBP) reported total revenue of $791.0M. This represents a 263.6% increase compared to $217.5M in 2020.
XBP Global Holdings, Inc. (XBP) is profitable, generating $1.10B in net income for the fiscal year ending 2025 with a net profit margin of 139.5%.
XBP Global Holdings, Inc. (XBP) reported an operating income of $12.1M, resulting in an operating profit margin of 1.5%. This margin reflects the operational efficiency of the business before interest and taxes.
XBP Global Holdings, Inc. (XBP) generated $123.1M in gross profit for the year, representing a gross profit margin of 15.6%. This demonstrates the company's core pricing power and production efficiency.