Summary by Futu AI
XBP Europe Holdings reported Q2 2024 revenue of $36.1 million, down 14.8% YoY, primarily due to a large one-time license sale in Q2 2023 and slower ramp-up of public sector contracts. Gross margin declined to 18.4%, representing a 920 basis point decrease YoY, while operating loss was $2.4 million compared to an operating profit of $1.4 million in Q2 2023.The Technology segment revenue decreased 27.6% YoY to $8.8 million, while Bills & Payments segment revenue fell 9.6% to $27.3 million. The company recorded a net loss of $4.7 million, which included $0.7 million in foreign exchange losses. Adjusted EBITDA dropped to $0.3 million from $4.0 million in the prior year.The company secured additional liquidity through a comprehensive financing agreement with HSBC UK Bank plc, providing up to $33 million of incremental borrowing capacity. Management expects improvement in coming quarters, driven by the ramp-up of recently launched large-scale projects and approximately $25 million in Annual Contract Value currently being implemented.
