Pitney Bowes Announces Financial Results for First Quarter 2026 and Issues CEO Letter

Reports Complete Q1 Results Consistent with Strong Pre-Announced Financials and Reaffirms Upgraded Guidance

Repurchased 17.2 Million Shares for $186 Million Year-to-Date Through May 1, 2026

Increases Quarterly Dividend from $0.09 to $0.10 per Share, Marking the Fifth Increase in the Past Six Quarters

SHELTON, Conn.--(BUSINESS WIRE)--May 5, 2026-- Pitney Bowes Inc. (NYSE: PBI) (“Pitney Bowes” or the “Company”), a technology-driven company that provides digital shipping solutions, mailing innovation, and financial services to clients around the world, today disclosed its financial results for the first quarter of 2026. In conjunction with this announcement, CEO Kurt Wolf has released a letter to shareholders to provide his commentary on the quarter and updates on strategic initiatives. To read and/or download a copy of this quarter’s CEO letter, please click here.

Financial Highlights:
The following table summarizes the Company’s financial highlights for the first quarter 2026:

	First Quarter
($ millions, except EPS)	2026	2025	$ Change	% Change
Revenue	$477	$493	($16)	(3%)
GAAP EPS	$0.39	$0.19	$0.20	>100%
Adj. EPS¹	$0.47	$0.33	$0.14	42%
GAAP Net Income	$58	$35	$23	64%
Adj. EBIT¹	$130	$120	$11	9%
Cash from Operations	$44	($17)	$61	>100%
Free Cash Flow¹	$44	($20)	$64	>100%

¹ Adjusted EPS, Adjusted EBIT, and Free Cash Flow are non-GAAP measures. Definitions for these metrics can be found in the Use of Non-GAAP Measures section. Reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules.

Update on Capital Allocation

Year-to-date through May 1, 2026, the Company repurchased 17.2 million shares for $186 million, including 12.9 million shares for $136 million in the first quarter. As of May 1, 2026, the Company’s cumulative share repurchases since the beginning of the existing authorization were 53.1 million shares for $565 million.
The Board approved a $0.01 per share increase to the regular quarterly dividend. The $0.10 per share first quarter regular dividend is payable on June 5, 2026, to shareholders of record as of May 18, 2026.

Business Segment Reporting

SendTech Solutions
SendTech Solutions offers physical and digital shipping and mailing technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify and save on the sending, tracking and receiving of letters, parcels and flats.

	First Quarter
($ millions)	2026	2025	$ Change	% Change
Revenue	$314	$316	($2)	(1%)
Adj. Segment EBITDA	$123	$109	$15	14%
Adj. Segment EBIT	$114	$97	$17	17%

SendTech revenue performance was impacted by the anticipated continuation of mailing-related declines, which were partially offset by growth across digital mailing and shipping solutions as well as the Pitney Bowes Bank. The decline in mailing-related revenues moderated in the quarter, driven by strong sales execution and the lapping of difficult comparisons from the prior IMI product migration. Year-over-year comparisons also benefited by approximately 1 percentage point from an unfavorable prior-year accounting adjustment and another 1 percentage point from currency.

SendTech achieved higher Adjusted EBITDA and EBIT supported by leadership’s continued focus on cost management. In the first quarter, operating expenses declined $14 million year-over-year.

Presort Services
Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter.

	First Quarter
($ millions)	2026	2025	$ Change	% Change
Revenue	$163	$178	($14)	(8%)
Adj. Segment EBITDA	$48	$64	($16)	(25%)
Adj. Segment EBIT	$39	$55	($16)	(28%)

Presort revenue decline in the first quarter was driven by a 6% reduction in volumes due to previously communicated client losses and market decline as well as a 2% decline driven by mix change. Total volume sorted in the quarter was 3.6 billion pieces of mail.

Adjusted Segment EBITDA and EBIT declined due to the decrease in revenue with margins contracting from reduced operating leverage from lower volumes and a shift in mix to lower-margin products.

2026 Full-Year Outlook

Pitney Bowes reaffirmed its updated and improved guidance announced in the April 21, 2026, Press Release. Strong first quarter results combined with improving sales trends drove the increase in guidance. Updated guidance for Revenue, Adjusted EBIT, Adjusted EPS and Free Cash Flow in 2026 is as follows:

$ millions, except EPS	Low	High
Revenue	$1,800	$1,860
Adjusted EBIT	$425	$465
Adjusted EPS	$1.50	$1.65
Free Cash Flow	$345	$380

***As a reminder, to read and/or download a copy of this quarter’s CEO letter, please click here***

Q1 2026 Earnings Conference Call

Management will discuss the Company’s results in a webcast tomorrow, May 6, 2026, at 8:00 a.m. ET. Instructions for accessing the earnings results call are available on the Investor Relations page of the Company’s website at www.pitneybowes.com.

About Pitney Bowes

Pitney Bowes (NYSE: PBI) is a technology-driven company that provides digital shipping solutions, mailing innovation, and financial services to clients around the world – including more than 90 percent of the Fortune 500. Small businesses to large enterprises, and government entities rely on Pitney Bowes to reduce the complexity of sending mail and parcels. For the latest news, corporate announcements, and financial results, visit www.pitneybowes.com/us/newsroom. For additional information, visit Pitney Bowes at www.pitneybowes.com.

Adjusted Segment EBIT

Adjusted Segment EBIT is the primary measure of profitability and operational performance at the segment level. Adjusted Segment EBIT includes segment revenues and related costs and expenses attributable to the segment, but excludes interest, taxes, general corporate expenses, restructuring charges, and other items not allocated to a business segment. Effective January 1, 2026, we are also excluding expense related to the U.S. and Canada pension plans as we have taken steps to terminate these plans. We also report Adjusted Segment EBITDA as an additional useful measure of segment profitability and operational performance, which is calculated as Adjusted Segment EBIT plus depreciation and amortization expense of the segment.

Use of Non-GAAP Measures

Pitney Bowes’ financial results are reported in accordance with generally accepted accounting principles (GAAP). Pitney Bowes also discloses certain non-GAAP measures, such as adjusted earnings before interest and taxes (Adjusted EBIT), adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), adjusted earnings per share (Adjusted EPS) and free cash flow.

Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of restructuring charges, foreign currency gains and losses on intercompany loans, certain costs associated with the Ecommerce Restructuring, gains and losses on debt redemptions and other unusual items that we believe are not indicative to our core business operations, including expense related to the U.S. and Canada pension plans that we have taken steps to terminate.

Free cash flow adjusts cash flow from operations calculated in accordance with GAAP for capital expenditures, restructuring payments and other special items. Management believes free cash flow provides better insight into the amount of cash available for other discretionary uses.

Reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules and at the Company's website at: https://www.investorrelations.pitneybowes.com/. We do not provide a reconciliation of forward-looking non-GAAP measures to the most comparable GAAP measures because items necessary for such reconciliation are not available on a reasonable basis without unreasonable efforts.

Forward-Looking Statements

This document contains “forward-looking statements” about the Company’s expected or potential future business and financial performance, including, but not limited to, statements about future revenue and profitability, earnings guidance, future events or conditions, capital allocation strategy, expected cost savings and efficiency improvements, and strategic initiatives and priorities. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. Factors which could cause future performance to differ materially from expectations include, without limitation, changes in postal regulations or the operations and financial health of posts in the U.S. or other major markets or changes to the broader postal or shipping markets; declines in physical mail volumes or shipping volumes; the loss of customers, including some of our larger clients; changes in trade policies, tariffs and regulations; global supply chain issues adversely impacting our third-party suppliers’ ability to provide us products and services; periods of difficult economic conditions, the impacts of inflation and rising prices, higher interest rates and a slow-down in economic activity, including a global recession, or a prolonged U.S. government shutdown, to the Company and our clients; changes in foreign currency exchange rates; changes in labor and transportation availability and costs; inability to successfully execute on our strategic initiatives; and other factors as more fully outlined in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2025 and subsequent reports filed with the Securities and Exchange Commission. Pitney Bowes assumes no obligation to update any forward-looking statements contained in this document as a result of new information, events, or developments, except as required by law.

Pitney Bowes Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)

	Three Months Ended March 31,
	2026		2025
Revenue:
Services	$	306,570	$	318,432
Products		88,650		93,190
Financing and other		82,193		81,798
Total revenue		477,413		493,420

Costs and expenses:
Cost of services		156,155		155,873
Cost of products		48,680		50,919
Cost of financing and other		12,795		17,507
Selling, general and administrative		133,377		165,915
Research and development		3,794		4,763
Restructuring charges		5,112		1,400
Interest expense, net		25,992		24,270
Other components of net pension and postretirement cost		11,034		1,854
Other expense		-		24,187
Total costs and expenses		396,939		446,688

Income before taxes		80,474		46,732
Provision for income taxes		22,336		11,310
Net income	$	58,138	$	35,422

Basic earnings per share	$	0.40	$	0.19
Diluted earnings per share	$	0.39	$	0.19

Weighted-average shares used in diluted earnings per share		147,742		184,773

Pitney Bowes Inc.
Consolidated Balance Sheets
(Unaudited; in thousands)

Assets	March 31, 2026			December 31, 2025
Current assets:
Cash and cash equivalents	$	302,876		$	284,887
Short-term investments		11,142			12,232
Accounts and other receivables, net		158,587			168,099
Short-term finance receivables, net		481,566			496,446
Inventories		62,611			66,241
Current income taxes		2,684			3,143
Other current assets and prepayments		109,884			69,451
Total current assets		1,129,350			1,100,499
Property, plant and equipment, net		180,344			185,913
Rental property and equipment, net		23,307			24,054
Long-term finance receivables, net		571,147			605,129
Goodwill		742,882			746,687
Intangible assets, net		13,845			14,741
Operating lease assets		108,408			106,996
Noncurrent income taxes		92,868			95,412
Other assets		285,157			289,520
Total assets	$	3,147,308		$	3,168,951

Liabilities and stockholders' deficit
Current liabilities:
Accounts payable and accrued liabilities	$	766,989		$	845,378
Customer deposits at Pitney Bowes Bank		574,302			582,630
Current operating lease liabilities		29,306			28,396
Current portion of long-term debt		363,952			17,150
Advance billings		72,531			69,075
Current income taxes		11,409			5,210
Total current liabilities		1,818,489			1,547,839
Long-term debt		1,774,240			1,975,888
Deferred taxes on income		81,762			72,665
Tax uncertainties and other income tax liabilities		161			278
Noncurrent operating lease liabilities		100,727			99,757
Noncurrent customer deposits at Pitney Bowes Bank		71,000			71,000
Other noncurrent liabilities		194,501			203,884
Total liabilities		4,040,880			3,971,311

Stockholders' deficit:
Common stock		270,338			270,338
Retained earnings		2,689,224			2,655,703
Accumulated other comprehensive loss		(792,299	)		(789,132	)
Treasury stock, at cost		(3,060,835	)		(2,939,269	)
Total stockholders' deficit		(893,572	)		(802,360	)
Total liabilities and stockholders' deficit	$	3,147,308		$	3,168,951

PITNEY BOWES INC.
STATEMENTS OF CASH FLOWS
MARCH 2026
(Dollars in thousands)

	YEAR-TO-DATE
	2026			2025
Cash Flows From Operating Activities:
Net income	$	58,138		$	35,422

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		25,641			28,324
Allowance for doubtful accounts and credit losses		3,288			1,978
Change in allowance for DIP Facility		-			(1,539	)
Stock-based compensation		3,278			2,683
Amortization of debt fees		1,956			2,152
Loss on debt refinancing		-			24,646
Restructuring charges		5,112			1,400
Restructuring payments		(15,201	)		(13,106	)
Pension contributions and retiree medical payments		(10,543	)		(12,671	)
Loss on disposal of fixed assets		2,382			5,106
(Gain) loss on revaluation of intercompany loans		(4,882	)		7,595
Other, net		11,840			4,779
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivables		7,339			(131	)
Finance receivables		43,550			34,586
Inventories		3,502			(4,807	)
Other current assets		(8,324	)		(4,326	)
Accounts payable and accrued liabilities		(102,495	)		(141,282	)
Income taxes		15,684			8,382
Advance billings		3,890			4,130
Net cash from operating activities		44,155			(16,679	)

Cash Flows From Investing Activities:
Capital expenditures		(15,846	)		(16,887	)
Purchase of investment securities		(2,757	)		(3,910	)
Proceeds from sales / maturities of investment securities		7,299			13,345
Net investment in loans receivables		1,783			(37,423	)
DIP Facility reimbursement		-			1,539
Acquisitions		-			(2,200	)
Other investing activities		233			-
Net cash from investing activities		(9,288	)		(45,536	)

Cash Flows From Financing Activities:
Proceeds from issuance of long-term debt		147,750			775,000
Payments to redeem long-term debt		(3,538	)		(787,187	)
Premium and fees paid to redeem/refinance debt		-			(20,598	)
Dividends paid to stockholders		(13,319	)		(10,980	)
Change in customer deposits at PB Bank		(8,327	)		(26,766	)
Common stock repurchases		(135,647	)		(15,000	)
Other financing activities		(3,336	)		465
Net cash from financing activities		(16,417	)		(85,066	)

Effect of exchange rate changes on cash and cash equivalents		(461	)		1,342

Change in cash and cash equivalents		17,989			(145,939	)
Cash and cash equivalents at beginning of period		284,887			469,726
Cash and cash equivalents at end of period	$	302,876		$	323,787

Pitney Bowes Inc.
Business Segment Revenue
(Unaudited; in thousands)

	Three Months Ended March 31,
	2026		2025		% Change


Sending Technology Solutions	$	313,947	$	315,606	(1	%)
Presort Services		163,466		177,814	(8	%)
Total revenue	$	477,413	$	493,420	(3	%)

Pitney Bowes Inc.
Adjusted Segment EBIT & EBITDA
(Unaudited; in thousands)

	Three Months Ended March 31,
	2026							2025							% change
	Adjusted Segment EBIT		D&A		Adjusted Segment EBITDA			Adjusted Segment EBIT		D&A		Adjusted Segment EBITDA			Adjusted Segment EBIT		Adjusted Segment EBITDA

Sending Technology Solutions	$	113,530	$	9,875	$	123,405		$	97,027	$	11,680	$	108,707		17	%	14	%
Presort Services		39,178		8,736		47,914			54,779		9,269		64,048		(28	%)	(25	%)
Total reportable segments	$	152,708	$	18,611		171,319		$	151,806	$	20,949		172,755		1	%	(1	%)

Reconciliation of Adjusted Segment EBITDA to income before taxes:
Depreciation and amortization - reportable segments						(18,611	)						(20,949	)
Interest expense, net						(35,575	)						(37,885	)
Corporate expenses						(22,331	)						(32,117	)
Restructuring charges						(5,112	)						(1,400	)
Loss on debt transactions						-							(24,646	)
Foreign currency gain (loss) on intercompany loans						4,882							(7,595	)
Pension expense of plans to be terminated						(7,554	)						-
Transaction and strategic review costs						(6,544	)						(1,890	)
Charge in connection with Ecommerce Restructuring						-							459

Income before taxes					$	80,474						$	46,732

Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited; in thousands, except per share amounts)

	Three Months Ended March 31,
	2026			2025

Reconciliation of net income to adjusted net income, adjusted EBIT and adjusted EBITDA
Net income - GAAP	$	58,138		$	35,422
Provision for income taxes		22,336			11,310
Income before taxes		80,474			46,732
Restructuring charges		5,112			1,400
Foreign currency (gain) loss on intercompany loans		(4,882	)		7,595
Loss on debt transactions		-			24,646
Pension expense of plans to be terminated		7,554			-
Transaction and strategic review costs		6,544			1,890
Charge in connection with Ecommerce Restructuring		-			(459	)
Adjusted net income before tax		94,802			81,804
Adjusted tax provision		25,860			20,113
Adjusted net income	$	68,942		$	61,691

Adjusted income before tax	$	94,802		$	81,804
Interest expense, including financing interest		35,575			37,885
Adjusted EBIT		130,377			119,689
Depreciation and amortization		25,641			28,324
Adjusted EBITDA	$	156,018		$	148,013

Reconciliation of diluted earnings per share to adjusted diluted earnings per share
Diluted earnings per share - GAAP	$	0.39		$	0.19
Restructuring charges		0.03			0.01
Foreign currency (gain) loss on intercompany loans		(0.02	)		0.03
Loss on debt transactions		-			0.10
Pension expense of plans to be terminated		0.04			-
Transaction and strategic review costs		0.03			0.01
Adjusted diluted earnings per share	$	0.47		$	0.33

The sum of the earnings per share amounts may not equal the total due to rounding.

Reconciliation of net cash from operating activities to free cash flow
Net cash from operating activities	$	44,155		($	16,679	)
Capital expenditures		(15,846	)		(16,887	)
Restructuring payments		15,201			13,106
Free cash flow	$	43,510		($	20,460	)

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For Investors:
Alex Brown
investorrelations@pb.com

Source: Pitney Bowes Inc.