XBP Global Holdings reports higher Q2 profitability

XBP Global Holdings (NASDAQ: XBP ) held its second-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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For comprehensive financial data and transcripts, visit View the webcast at Summary XBP Global Holdings reported a significant increase in profitability for Q2 2026, with normalized EBITDA reaching $21.9 million and adjusted gross margin climbing to 24.9%, marking the highest level to date.

The company is transforming its legacy workflow platforms into high-margin AI pipelines, focusing on mission-critical workflows in heavily regulated markets like Healthcare and the Public Sector.

Revenue was down 14% year over year due to legacy contract exits and volume reductions, but new bookings and pipeline quality improved, with total contract value increasing by 51.6% year over year.

The company is targeting annualized operational efficiencies of $65-75 million, driven by AI automation and non-payroll initiatives, with a projected 20% workforce reduction by year-end.

XBP Global Holdings emphasized low client concentration and a diversified client base, with the top 10 clients representing only 34% of revenues.

Full Transcript OPERATOR Good day and thank you for standing by.

Welcome to the XBP Global Holdings second quarter 2026 financial results.

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After the speaker's presentation, there will be a question-and-answer session.

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Please be advised that today's conference is being recorded.

I will now hand the conference over to your first speaker today, David Shamus, Head of Investor Relations.

David Shamus, Head of Investor Relations Thank you and good afternoon everyone.

Welcome to XBP Global Holdings' second quarter 2026 earnings call.

Joining me are Chief Executive Officer Andrei Yonovic and Chief Financial Officer Dan Abramovich.

Before we begin, please note that today's remarks may contain forward-looking statements, including statements regarding our future performance, outlook, and strategy.

These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those described.

For a detailed discussion of these risks and uncertainties, please refer to our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and our proxy statement and other filings with the SEC, copies of which are available on our investor relations website at investors.xppglobal.com.

During this call we will also reference certain pro forma and non-GAAP financial measures.

Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release and the appendix to our investor presentation, which are available on our investor relations website.

With that, I'll turn the call over to Andrei.

Andrei Yonovic, Chief Executive Officer Good afternoon everyone and thank you for joining us today.

When we spoke last quarter, I highlighted our deliberate evolution converting our legacy workflow platforms into high-margin agentic AI pipelines, executing our self-disruption and making targeted go-to-market investments.

Today I'm pleased to report that our second quarter performance represents a clear step up in profitability and operational momentum with normalized EBITDA of 21.9 million, and adjusted gross margin of 24.9%, our highest level to date.

Our profitability trajectory and our pipeline quality give us reason for optimism.

At XBP Global Holdings, we orchestrate essential mission-critical workflows in heavily regulated end markets such as Healthcare, Public Sector and BFSI where processing precision, regulatory compliance, and auditability are non-negotiable.

Our client base is rapidly moving past simple AI experimentation and aggressive ROI promises that clients naturally discount.

Clients want production-grade partners who deliver real-world execution.

Rather than falling into the common software trap or abandoning our operational DNA, we anchor our strategy in deep domain expertise.

We leverage adaptive process orchestration, combining deterministic rules engines with intelligent AI models to guarantee precision and compliance in high-consequence environments.

When our AI pipeline encounters a complex exception, it doesn't fail.