tiprankstipranks
Trending News
More News >
Exela Technologies Inc (XELA)
OTHER OTC:XELA
Advertisement

Exela Technologies (XELA) AI Stock Analysis

Compare
1,247 Followers

Top Page

XELA

Exela Technologies

(OTC:XELA)

Select Model
Select Model
Select Model
Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
$0.00
▼(-100.00% Downside)
Exela Technologies' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and high leverage. Technical analysis provides a neutral outlook, while valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.

Exela Technologies (XELA) vs. SPDR S&P 500 ETF (SPY)

Exela Technologies Business Overview & Revenue Model

Company DescriptionExela Technologies, Inc. provides transaction processing solutions, enterprise information management, document management, and digital business process services worldwide. The company operates through three segments: Information & Transaction Processing Solutions (ITPS), Healthcare Solutions (HS), and Legal & Loss Prevention Services (LLPS). The ITPS segment provides lending solutions for mortgages and auto loans; banking solutions for clearing, anti-money laundering, sanctions, and interbank cross-border settlement; property and casualty insurance solutions for origination, enrollments, claims processing, and benefits administration communications; and public sector solutions for income tax processing, benefits administration, and records management. It also offers solutions for payment processing and reconciliation, integrated receivable and payables management, document logistics and location services, records management, and electronic storage of data/documents; and software, hardware, professional services, and maintenance related to information and transaction processing automation. The HS segment provides revenue cycle solutions, integrated accounts payable and accounts receivable, and information management for healthcare payer and provider markets. The LLPS segment processes legal claims for class action and mass action settlement administrations, involving project management support, notification, and outreach to claimants; and collects, analyzes, and distributes settlement funds. It also offers data and analytical services in the areas of litigation consulting, economic and statistical analysis, expert witness services, and revenue recovery services for delinquent accounts receivable. The company is headquartered in Irving, Texas.
How the Company Makes MoneyExela Technologies generates revenue through multiple streams, primarily by providing technology-enabled services and solutions to its clients. Key revenue sources include transaction processing fees from its digital mailroom and document management services, subscription fees for software solutions, and consulting services aimed at improving operational efficiency. The company also benefits from long-term contracts with various clients across its target sectors, which provide a steady stream of recurring revenue. Additionally, strategic partnerships with technology providers and industry leaders enhance Exela's service offerings and expand its market reach, contributing to its overall earnings.

Exela Technologies Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive revenue growth and operational efficiencies with significant challenges in margin decline, net loss, and NASDAQ delisting. While there are promising growth opportunities and improvements, the financial struggles and delisting weigh heavily.
Q3-2024 Updates
Positive Updates
Revenue Growth
Third quarter revenues were $269.2 million, up 6.3% year-over-year. Information and Transaction Processing Solutions increased by 11.5% year-over-year.
Sequential Improvements
Sequentially, Q3 was up 22.4% in ITPS, primarily driven by a large project from an existing customer. Adjusted EBITDA improved by 6.7% sequentially.
Operational Efficiency
SG&A was down about 1% year-over-year and 16% sequentially due to reductions in legal and professional fees and employee-related costs. The company is shifting from CapEx to OpEx by moving data center infrastructure to the cloud.
New Business Achievements
The company renewed over $113 million of TCV in the quarter, won approximately $40 million of new ACV, and added 81 new logos.
Improved Cash Flow
Cash flow from operations improved with $5 million of positive cash flow in Q3.
Negative Updates
Gross Margin Decline
Q3 gross margins were 20.2%, down 330 basis points sequentially and 140 basis points year-over-year due to higher postage costs.
Segment Performance Decline
Healthcare Solutions and Legal and Loss Prevention Services declined by 5.3% and 2.4% year-over-year, respectively. LLPS was down 28.8% sequentially due to project fluctuations.
Net Loss
The company reported a net loss of $24.9 million, although it was an improvement of $2 million sequentially.
NASDAQ Delisting
Exela was delisted from NASDAQ due to failure to meet the Exchange's $35 million market cap minimum requirement for 30 consecutive business days.
Company Guidance
During the Exela Third Quarter 2024 Earnings Call, interim CFO Matt Brown provided detailed financial guidance, highlighting a 6.3% year-over-year increase in revenues, reaching $269.2 million. Information and Transaction Processing Solutions (ITPS) grew by 11.5% year-over-year and 22.4% sequentially, driven by a large project from an existing customer, while Healthcare Solutions and Legal and Loss Prevention Services (LLPS) saw declines of 5.3% and 2.4% year-over-year, respectively. Gross margins dropped by 330 basis points sequentially and 140 basis points year-over-year, primarily due to increased postage costs. Exela achieved a net loss of $24.9 million, a $2 million improvement sequentially, with adjusted EBITDA at $14.6 million and a 6.7% sequential improvement. The company renewed over $113 million in Total Contract Value (TCV) and added approximately $40 million in Annual Contract Value (ACV) with 81 new logos. Despite being delisted from NASDAQ, Exela remains focused on growing revenue, improving gross margins, and enhancing profitability and liquidity.

Exela Technologies Financial Statement Overview

Summary
Exela Technologies exhibits severe financial challenges, with declining revenues, high leverage, and negative equity. The company struggles with profitability and operational efficiency. Although there are minor improvements in cash flow, the overall financial health remains precarious.
Income Statement
45
Neutral
Exela Technologies shows a severe decline in revenue over recent years, with a negative revenue growth rate from the previous annual period to the TTM. Gross profit margin and net profit margin are significantly low, reflecting operational inefficiencies and persistent net losses. Despite some improvement in EBITDA, the company remains unprofitable, with negative EBIT and net income margins.
Balance Sheet
30
Negative
The balance sheet reveals a highly leveraged position with a negative equity, indicating financial instability and potential insolvency risks. The debt-to-equity ratio is not calculable due to negative equity, but the significant liabilities overshadow the assets. Return on equity is negative, further highlighting the company's financial struggles.
Cash Flow
40
Negative
The cash flow statement indicates a modest improvement in operating cash flow in the TTM, but free cash flow remains low. There is a slight positive free cash flow growth rate compared to the previous year, yet the overall cash flow health remains weak due to consistent negative net income impacting the operating cash flow to net income ratio.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue382.10M142.77M1.06B1.08B1.17B1.29B
Gross Profit86.28M35.10M230.70M199.68M277.51M269.02M
EBITDA25.43M5.86M84.63M-174.68M114.46M102.89M
Net Income-40.33M-12.37M-125.16M-415.58M-142.39M-178.53M
Balance Sheet
Total Assets105.18M88.05M636.34M721.91M1.04B1.16B
Cash, Cash Equivalents and Short-Term Investments6.12M12.10M67.15M17.93M29.69M68.22M
Total Debt39.24M35.39M1.11B1.15B1.32B1.64B
Total Liabilities133.46M109.39M1.50B1.53B1.70B2.08B
Stockholders Equity-28.28M-21.35M-855.50M-807.59M-666.77M-926.53M
Cash Flow
Free Cash Flow10.53M-6.49M-8.34M-109.13M-128.06M-45.27M
Operating Cash Flow7.69M-5.23M3.56M-87.16M-111.53M-29.78M
Investing Cash Flow-759.00K-1.71M17.92M-21.77M-9.26M21.44M
Financing Cash Flow8.30M12.45M624.00K106.64M98.65M63.36M

Exela Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.06
Positive
100DMA
0.09
Negative
200DMA
0.39
Negative
Market Momentum
MACD
0.04
Negative
RSI
46.21
Neutral
STOCH
46.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XELA, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.06, and below the 200-day MA of 0.39, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 46.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XELA.

Exela Technologies Risk Analysis

Exela Technologies disclosed 42 risk factors in its most recent earnings report. Exela Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Exela Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
47
Neutral
$8.59M-575.54%-28.60%-294.74%
46
Neutral
$17.85M-89.23%-15.10%74.63%
42
Neutral
$17.46M-94.92%-38.89%64.99%
42
Neutral
$6.25M-39.27%-22.86%33.12%
41
Neutral
$63.83K11.21%-62.61%73.20%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XELA
Exela Technologies
0.08
-1.90
-95.96%
SMSI
Smith Micro Software
0.71
-0.23
-24.47%
OBLG
Oblong
2.66
-1.33
-33.33%
CXAI
CXApp
0.76
-0.81
-51.59%
RMSG
Real Messenger
3.20
-33.80
-91.35%
IDAI
T Stamp, Inc. Class A
3.38
0.23
7.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 17, 2025