XBP Global Holdings, Inc. Leases Disclosure
9. Leases
The Company leases numerous facilities worldwide with larger concentrations of space in Texas, Michigan, Connecticut, California, India, Mexico and the Philippines. The Company’s facilities house general offices, sales offices, service locations, and production facilities. Substantially all of the Company’s operations facilities are leased under long-term leases with varying expiration dates, except for the few owned locations. The Company regularly obtains various machinery, equipment, vehicles and furniture on leases. The machinery and equipment leases mainly include leasing of computers, servers, other IT equipment, mailing system, production equipment, generators, office equipment, printers, copiers and miscellaneous warehouse equipment.
The Company’s ROU assets and lease liabilities as of December 31, 2025 (Successor) and 2024 (Predecessor) recorded on the consolidated and combined balance sheets are as follows:
| Successor | Predecessor | |||||
Consolidated | Combined and Consolidated | ||||||
December 31, | December 31, | ||||||
2025 | | 2024 | |||||
Balance sheet location: | |||||||
Operating Lease | |||||||
Operating lease right-of-use assets, net | $ | 30,339 | $ | 30,543 | |||
Current portion of operating lease liabilities | 9,814 | 9,210 | |||||
Operating lease liabilities, net of current portion | 22,530 | 23,907 | |||||
Finance Lease | |||||||
Finance lease right-of-use assets, net (included in property, plant and equipment, net) | 16,043 | 15,778 | |||||
Current portion of finance lease liabilities | 4,390 | 5,441 | |||||
Finance lease liabilities, net of current portion | 6,857 | 6,381 | |||||
Supplemental balance sheet information related to leases is as follows:
Successor | Predecessor | ||||||
Consolidated | Combined and Consolidated | ||||||
December 31, | December 31, | ||||||
| 2025 | | 2024 | ||||
Weighted-average remaining lease term | |||||||
Operating leases | 3.4 Years | 3.6 Years | |||||
Finance leases | 3.3 Years | 2.4 Years | |||||
Weighted-average discount rate | |||||||
Operating leases | 16.9% | 16.8% | |||||
Finance leases | 20.2% | 18.4% | |||||
The interest on financing lease liabilities was $1.0 million, $1.3 million and $1.8 million for the periods August 1, 2025 to December 31, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and for the year ended December 31, 2024 (Predecessor), respectively. The amortization expense on finance lease ROU assets was $3.1 million, $2.5 million and $4.7 million for the periods August 1, 2025 to December 31, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and for the year ended December 31, 2024 (Predecessor), respectively.
Maturities of finance and operating lease liabilities based on lease term for the next five years are as follows:
Finance | Operating | |||||
| Leases | | Leases | |||
2026 | $ | 6,373 | $ | 14,287 | ||
2027 | 3,666 | 12,391 | ||||
2028 | 2,655 | 7,871 | ||||
2029 | 1,644 | 4,709 | ||||
2030 | 659 | 1,678 | ||||
2031 and thereafter | 584 | 981 | ||||
Total lease payments | 15,581 | 41,917 | ||||
Less: Imputed interest | (4,334) | (9,573) | ||||
Present value of lease liabilities | $ | 11,247 | $ | 32,344 | ||
Consolidated rental expense for all operating leases was $15.5 million, $21.2 million and $30.1 million for the periods August 1, 2025 to December 31, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and for the year ended December 31, 2024 (Predecessor), respectively.
The following table summarizes the cash paid and related ROU operating finance or operating lease recognized for the periods August 1, 2025 to December 31, 2025 (Successor), January 1, 2025 to July 31, 2025 (Predecessor), and for the year ended December 31, 2024 (Predecessor).
Successor | Predecessor | |||||||||
Consolidated | Combined and Consolidated | |||||||||
| Period from August | Period from January | Year Ended December 31, 2024 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||
Operating cash flows for operating leases | $ | 6,971 | $ | 8,791 | $ | 15,137 | ||||
Financing cash flows for finance leases | 2,700 | 2,947 | 6,573 | |||||||
Right-of-use lease assets obtained in the exchange for lease liabilities: | ||||||||||
Operating leases | 1,353 | 7,870 | 10,740 | |||||||
Finance leases | 2,020 | 3,574 | 12,028 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2023 | Apr 1, 2024 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.