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

May 5, 2026 4:05 PM

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)-- 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

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

)

For Investors:

Alex Brown

[email protected]

Source: Pitney Bowes Inc.

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