XBP Global Holdings, Inc.

Good day and thank you for standing by. Welcome to the XBT Global Second Quarter of 2026 Financial Results. At this time, all participants are in listen-only mode. After this speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message inviting your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I'll now hand the conference over to your first speaker today, David Shamins, Head of Investor Relations.

Thank you and good afternoon, everyone. Welcome to XBP Global's second quarter 2026 earnings call. Joining me are Chief Executive Officer Andrej Jonovic and Chief Financial Officer Dejan Avramovic. 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 Andrej.

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 XGP, 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 in 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. It routes the transaction to our subject matter experts. In mature deployments, this is the approximately 50% of edge cases, which our specialists adjudicate, resolve, and feed that judgment back into the model to continuously retrain it. We aren't replacing our people. We are elevating them into high value adjudicators. By converting manual volume heavy workflows into high margin intelligent AI pipelines under this model, We are building a more durable, repeatable, and profitable growth engine. Underpinning this operational shift is our ability to capture breakthroughs in the broader AI ecosystem. The era of open-weight models is upon us. With multiple enterprise-grade open-weight models launching recently, our expedited training protocols allow us to rapidly integrate these models into our deployed agentic pipelines. This delivers significantly higher value to our clients while guaranteeing the data remains strictly within the enterprise boundary and compliant with advanced directives like the EU AI Act. Now, let's turn to slide four of our investor deck where you can see how this operational transformation is translating into tangible financial results. We're raising our targeted annualized operational efficiency range to 65 to 75 million up from 55 to 60 million as a result of identifying additional opportunities for efficiencies throughout the organization. We have an expected 2026 in-year benefit of approximately $35 million. This transformation is correlated with our financial results this quarter. Adjusted gross margin expanded for the fourth consecutive quarter to 24.9%, marking our highest level to date. Normalized EBITDA stepped up to 21.9 million, and consequently, the normalized EBITDA margin increased to 11.5%. The improvement reflects both a favorable revenue mix in the quarter and our AI-first automation efforts delivering structural margin expansion. The second part is what should compound over time. Skipping ahead to slide seven, I'd like to acknowledge that revenue remains down year over year and sequentially, and that is expected. It reflects the legacy contract exits and volume reductions largely tied to last year's restructuring. Our forward-looking metrics are improving across multiple parameters, especially sales. During the second quarter, we achieved a meaningful growth in bookings and pipeline quality. We closed $121.3 million in total contract value representing a 51.6% increase year-over-year and up 12.2% sequentially. Our new ACV bookings reached 36 million, up 57% year-over-year and 32.1% sequentially. Our total pipeline stands at 2.5 billion as of June 30th, roughly flat with Q1 and a 17.2% increase year-over-year. With respect to our pipeline, We're seeing significant AI interest in the healthcare and public sector practice groups, which centers around our healthcare payer and provider solutions. Demand from healthcare and public sector healthcare has been strengthening as clients are actively seeking secure, on-premise, hyper-automation with strict data sovereignty guardrails and human-in-the-loop oversight. Despite strengthening public sector healthcare demand, the timing of overall public sector contracts is volatile. primarily as a result of geopolitical uncertainty. To highlight how AI interest translates to enterprise deals, we recently won a deal that will deploy agentic AI infrastructure to manage the maintenance lifecycle for a global airline fleet. Every maintenance item will be vectorized and stored in a private vector database inside the client's private cloud. Our agentic solution will manage data access allowing seamless reproduction of records when aircraft go off-lease or are sold. This is an example of turning data into a private, secure cloud with strict enterprise controls which can be replicated across the airline industry. In short, we feel that our current trajectory strategy is working. We're building a high-quality, repeatable growth engine and applying automation into the way we operate. which should positively reflect in our results in the coming quarters. With that, I will now turn the call over to Dejan Avramovic, our CFO.