Summary by Moomoo AI
Exela Technologies reported Q2 2024 revenue of $245.7 million, down 10% YoY, while gross margin improved 120 bps to 23.5%. The company posted a net loss of $26.9 million, an improvement of $4.0 million YoY, primarily due to lower interest expense following debt modification in July 2023. Operating loss was $2.4 million compared to an $11.2 million profit in Q2 2023.Segment performance showed mixed results with Information and Transaction Processing Solutions revenue declining 15.2% to $156.8 million, Healthcare Solutions down 1.1% to $62.9 million, while Legal & Loss Prevention Services grew 6.3% to $25.9 million. SG&A expenses increased 30.5% to $41.8 million, mainly due to a $10.1 million write-down related to a partner contract amendment.Adjusted EBITDA decreased 39% YoY to $13.7 million with a margin of 5.6%, down 260 basis points from Q2 2023, though showing a 6.7% sequential improvement. The company maintains a cautiously optimistic outlook for H2 2024, citing continued focus on cost management and real estate optimization while adding new customers.
