Exela Technologies (XELA) investor relations material

Executive summary

• Q3 2024 revenue reached $269.2 million, up 6.3% year over year, led by ITPS growth, while Healthcare Solutions and LLPS declined.

• Net loss for Q3 2024 was $24.9 million, an improvement of $2 million sequentially but up from $23.1 million in Q3 2023.

• Adjusted EBITDA was $14.6 million, down 24.2% year over year but up 6.7% sequentially.

• Gross margin declined to 20.2%, down 1.4% year over year and 3.3% sequentially, mainly due to higher postage costs.

• Nasdaq delisted the company's shares in November 2024; shares now trade on OTC Pink.

Financial highlights

• ITPS revenue increased 11.5% year over year to $192.0 million; Healthcare Solutions and LLPS declined by 5.3% and 2.4%, respectively.

• SG&A expenses were $35.1 million, down 0.8% year over year and 16% sequentially.

• Interest expense for Q3 2024 was $23.4 million.

• Cash, restricted cash, and equivalents at September 30, 2024, were $45.6 million; working capital deficit was $262.8 million.

• Over $113 million in total contract value was renewed in the quarter, with a 90% renewal rate.

Outlook and guidance

• Management is focused on cost savings, new financing, asset sales, and strategic growth initiatives to address liquidity and debt obligations.

• Plans to spend approximately 1.2% of total revenue on capital expenditures over the next twelve months.