☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2025
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission file number: 1-03579
PITNEY BOWES INC.
(Exact name of registrant as specified in its charter)
State of incorporation:
Delaware
I.R.S. Employer Identification No.
06-0495050
Address of Principal Executive Offices:
3001 Summer Street,
Stamford,
Connecticut
06926
Telephone Number:
(203)
356-5000
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, $1 par value per share
PBI
New York Stock Exchange
6.7% Notes due 2043
PBI.PRB
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesþ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yesþ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
þ
Accelerated filer
☐
Non-accelerated filer
o
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No þ
As of July 25, 2025, 172,122,996 shares of common stock, par value $1 per share, of the registrant were outstanding.
(Unaudited; in thousands, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Revenue:
Services
$
290,423
$
297,253
$
608,855
$
619,943
Products
90,880
108,262
184,070
222,386
Financing and other
80,606
84,230
162,404
168,685
Total revenue
461,909
489,745
955,329
1,011,014
Costs and expenses:
Cost of services
144,240
158,196
300,113
322,677
Cost of products
54,487
60,672
105,406
123,426
Cost of financing and other
15,656
20,398
33,163
41,685
Selling, general and administrative
170,542
192,804
336,457
379,636
Research and development
3,601
7,259
8,364
14,885
Restructuring charges
13,806
30,399
15,206
34,165
Interest expense, net
24,937
28,253
49,207
55,559
Other components of net pension and postretirement cost
1,947
(382)
3,801
(769)
Other (income) expense
(6,578)
—
17,609
—
Total costs and expenses
422,638
497,599
869,326
971,264
Income (loss) from continuing operations before taxes
39,271
(7,854)
86,003
39,750
Provision for income taxes
9,296
2,271
20,606
17,771
Income (loss) from continuing operations
29,975
(10,125)
65,397
21,979
Loss from discontinued operations, net of tax
—
(14,742)
—
(49,731)
Net income (loss)
$
29,975
$
(24,867)
$
65,397
$
(27,752)
Basic earnings (loss) per share:
Continuing operations
$
0.17
$
(0.06)
$
0.36
$
0.12
Discontinued operations
—
(0.08)
—
(0.28)
Net income (loss)
$
0.17
$
(0.14)
$
0.36
$
(0.16)
Diluted earnings (loss) per share:
Continuing operations
$
0.17
$
(0.06)
$
0.36
$
0.12
Discontinued operations
—
(0.08)
—
(0.27)
Net income (loss)
$
0.17
$
(0.14)
$
0.36
$
(0.15)
`
See Notes to Condensed Consolidated Financial Statements
3
PITNEY BOWES INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited; in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net income (loss)
$
29,975
$
(24,867)
$
65,397
$
(27,752)
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax of $238, $(158), $333 and $(654), respectively
41,459
(5,018)
61,008
(20,417)
Net unrealized loss on cash flow hedges, net of tax of $(559) and $(972), respectively in 2024
—
(1,676)
—
(2,917)
Net unrealized gain (loss) on investment securities, net of tax of $221, $(8), $1,161 and $(312), respectively
703
(25)
3,698
(992)
Amortization of pension and postretirement costs, net of tax of $1,699, $1,654, $3,365 and $3,282, respectively
5,137
5,007
10,189
10,048
Other comprehensive income (loss), net of tax
47,299
(1,712)
74,895
(14,278)
Comprehensive income (loss)
$
77,274
$
(26,579)
$
140,292
$
(42,030)
See Notes to Condensed Consolidated Financial Statements
4
PITNEY BOWES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands, except per share amount)
June 30, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents (includes $77,001 and $140,125, respectively, reported at fair value)
$
285,177
$
469,726
Short-term investments (includes $3,922 and $3,926, respectively, reported at fair value)
15,606
16,374
Accounts and other receivables (net of allowance of $7,653 and $7,723, respectively)
155,317
159,951
Short-term finance receivables (net of allowance of $13,103 and $13,302, respectively)
506,989
535,608
Inventories
79,001
59,836
Current income taxes
1,300
10,429
Other current assets and prepayments (net of allowance of $11,349 and $19,373, respectively)
82,600
66,030
Total current assets
1,125,990
1,317,954
Property, plant and equipment, net
193,264
218,657
Rental property and equipment, net
23,004
24,587
Long-term finance receivables (net of allowance of $6,683 and $8,374 respectively)
638,625
610,316
Goodwill
748,530
721,003
Intangible assets, net
16,767
15,780
Operating lease assets
113,136
113,357
Noncurrent income taxes
103,767
99,773
Other assets (includes $165,921 and $173,525, respectively, reported at fair value)
275,755
276,089
Total assets
$
3,238,838
$
3,397,516
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities
$
742,804
$
873,626
Customer deposits at Pitney Bowes Bank
608,937
645,860
Current operating lease liabilities
27,276
26,912
Current portion of long-term debt
15,150
53,250
Advance billings
76,231
70,131
Current income taxes
18,508
2,948
Total current liabilities
1,488,906
1,672,727
Long-term debt
1,881,565
1,866,458
Deferred taxes on income
41,063
49,187
Tax uncertainties and other income tax liabilities
12,538
13,770
Noncurrent operating lease liabilities
100,244
100,804
Noncurrent customer deposits at Pitney Bowes Bank
51,977
57,977
Other noncurrent liabilities
199,354
215,026
Total liabilities
3,775,647
3,975,949
Commitments and contingencies (See Note 14)
Stockholders’ deficit:
Common stock, $1 par value (480,000 shares authorized; 270,338 shares issued)
270,338
270,338
Retained earnings
2,669,992
2,671,868
Accumulated other comprehensive loss
(764,276)
(839,171)
Treasury stock, at cost (95,116 and 87,932 shares, respectively)
(2,712,863)
(2,681,468)
Total stockholders’ deficit
(536,809)
(578,433)
Total liabilities and stockholders’ deficit
$
3,238,838
$
3,397,516
See Notes to Condensed Consolidated Financial Statements
5
PITNEY BOWES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)
Six Months Ended June 30,
2025
2024
Cash flows from operating activities:
Net income (loss)
$
65,397
$
(27,752)
Loss from discontinued operations, net of tax
—
49,731
Adjustments to reconcile net income or loss to net cash from operating activities:
Depreciation and amortization
57,086
57,332
Allowance for credit losses
5,161
7,321
Reduction in allowance for DIP Facility
(8,024)
—
Stock-based compensation
12,287
6,093
Amortization of debt fees
3,599
6,167
Loss on debt redemption/refinancing
24,364
—
Restructuring charges
15,206
34,165
Restructuring payments
(21,518)
(26,697)
Pension contributions and retiree medical payments
(18,129)
(17,300)
Loss on sale of assets
5,430
4,195
Loss (gain) on revaluation of intercompany loans
24,624
(5,350)
Other, net
6,573
4,411
Changes in operating assets and liabilities, net of acquisitions/divestitures:
Accounts and other receivables
4,820
27,099
Finance receivables
71,202
42,412
Inventories
(17,705)
(5,676)
Other current assets and prepayments
(5,356)
(22,793)
Accounts payable and accrued liabilities
(142,328)
(41,194)
Current and noncurrent income taxes
8,706
(14,134)
Advance billings
3,314
865
Net cash from operating activities - continuing operations
94,709
78,895
Net cash from operating activities - discontinued operations
—
1,050
Net cash from operating activities
94,709
79,945
Cash flows from investing activities:
Capital expenditures
(30,230)
(30,783)
Purchases of investment securities
(7,603)
(19,909)
Proceeds from sales/maturities of investment securities
18,530
36,377
Net investment in loan receivables
(61,650)
(3,892)
DIP Facility reimbursement
8,024
—
Acquisition
(2,200)
—
Other investing activities, net
1,029
804
Net cash from investing activities - continuing operations
(74,100)
(17,403)
Net cash from investing activities - discontinued operations
—
(10,310)
Net cash from investing activities
(74,100)
(27,713)
Cash flows from financing activities:
Proceeds from the issuance of debt
775,000
—
Principal payments of debt
(804,442)
(28,266)
Premiums and fees paid to redeem/refinance debt
(20,598)
—
Dividends paid to stockholders
(23,606)
(17,785)
Customer deposits at Pitney Bowes Bank
(42,923)
(612)
Common stock repurchases
(90,274)
—
Other financing activities, net
(1,649)
(8,850)
Net cash from financing activities - continuing operations
(208,492)
(55,513)
Net cash from financing activities - discontinued operations
—
(5,294)
Net cash from financing activities
(208,492)
(60,807)
Effect of exchange rate changes on cash and cash equivalents
3,334
(2,689)
Change in cash and cash equivalents
(184,549)
(11,264)
Cash and cash equivalents at beginning of period
469,726
600,054
Cash and cash equivalents at end of period
$
285,177
$
588,790
See Notes to Condensed Consolidated Financial Statements
6
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
1. Description of Business and Basis of Presentation
Description of Business
Pitney Bowes Inc. (we, us, our, or the company) is a technology-driven company that provides SaaS 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.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In addition, the December 31, 2024 Condensed Consolidated Balance Sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. In management's opinion, all adjustments, consisting only of normal recurring adjustments, considered necessary to fairly state our financial position, results of operations and cash flows for the periods presented have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2025. These statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report to Stockholders on Form 10-K for the year ended December 31, 2024 (2024 Annual Report).
Effective April 1, 2025, we revised our segment reporting to report the revenue and related expenses of a cross-border services contract in our SendTech Solutions reporting segment, which was previously reported in Other. Prior periods have been recast to conform to the current period presentation. Other operations now includes the revenue and related expenses of prior operations and shared services of the Global Ecommerce reporting segment that did not qualify for discontinued operations treatment.
Effective January 1, 2025, we revised our reporting presentation of revenue and cost of revenue to better align with our offerings. We now report Services revenue and Cost of services, which includes the previously reported Business services and Support services, Products revenue and Cost of products, which includes the previously reported Equipment sales and Supplies and Financing and other revenue and Cost of financing and other, which includes the previously reported Financing and Rentals. Additionally, we revised our corporate expense allocation methodology to allocate all marketing and innovation expenses to our SendTech Solutions segment due to a change in how these functions are now managed. Prior periods have been recast to conform to the current period presentation.
As a result of the wind-down of a majority of the Global Ecommerce reportable segment in August 2024, certain revenues and expenses for the three and six months ended June 30, 2024 are reported as discontinued operations in our Condensed Consolidated Financial Statements. See Note 4 for further information.
During the first quarter of 2025, we identified an error and recorded an out of period adjustment of $4 million to correct an overstatement of revenue in prior periods. The impact of the adjustment is not material to the consolidated financial statements for any interim or annual periods prior to 2025 and is not expected to be material to the 2025 annual period.
During the first quarter of 2024, we identified an error and recorded an out of period adjustment of $5 million to correct an understatement of revenue in prior periods, of which $4 million originated in 2020 and prior. The impact of the adjustment was not material to the consolidated financial statements for any interim or annual periods.
Accounting Pronouncements Not Yet Adopted
In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires more detailed information about specified categories of expenses included in certain expense captions presented on the face of the income statement. This standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently assessing the impact this standard will have on our disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires additional income tax disclosures, including the rate reconciliation and taxes paid. This standard is effective for annual periods beginning after December 15, 2024. We currently do not expect the adoption of this standard to have a material impact on our disclosures.
7
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
2. Revenue
Disaggregated Revenue
The following tables disaggregate our revenue by source and timing of recognition:
Three Months Ended June 30, 2025
SendTech Solutions
Presort Services
Revenue from services and products
Revenue from leasing transactions and financing
Total consolidated revenue
Major service/product lines
Services
$
140,230
$
150,193
$
290,423
$
—
$
290,423
Products
54,149
—
54,149
36,731
90,880
Financing and other
—
—
—
80,606
80,606
Subtotal
194,379
150,193
344,572
$
117,337
$
461,909
Revenue from leasing transactions and financing
117,337
—
117,337
Total revenue
$
311,716
$
150,193
$
461,909
Timing of revenue recognition from services and products
Services/products transferred at a point in time
$
69,650
$
—
$
69,650
Services/products transferred over time
124,729
150,193
274,922
Total
$
194,379
$
150,193
$
344,572
Three Months Ended June 30, 2024
SendTech Solutions
Presort Services
Other
Revenue from services and products
Revenue from leasing transactions and financing
Total consolidated revenue
Major service/product lines
Services
$
146,781
$
146,858
$
3,614
$
297,253
$
—
$
297,253
Products
56,441
—
—
56,441
51,821
108,262
Financing and other
—
—
—
—
84,230
84,230
Subtotal
203,222
146,858
3,614
353,694
$
136,051
$
489,745
Revenue from leasing transactions and financing
136,051
—
—
136,051
Total revenue
$
339,273
$
146,858
$
3,614
$
489,745
Timing of revenue recognition from services and products
Services/products transferred at a point in time
$
71,694
$
—
$
—
$
71,694
Services/products transferred over time
131,528
146,858
3,614
282,000
Total
$
203,222
$
146,858
$
3,614
$
353,694
8
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
Six Months Ended June 30, 2025
SendTech Solutions
Presort Services
Revenue from services and products
Revenue from leasing transactions and financing
Total consolidated revenue
Major service/product lines
Services
$
280,848
$
328,007
$
608,855
$
—
$
608,855
Products
107,401
—
107,401
76,669
184,070
Financing and other
—
—
—
162,404
162,404
Subtotal
388,249
328,007
716,256
$
239,073
$
955,329
Revenue from leasing transactions and financing
239,073
—
239,073
Total revenue
$
627,322
$
328,007
$
955,329
Timing of revenue recognition from services and products
Services/products transferred at a point in time
$
136,053
$
—
$
136,053
Services/products transferred over time
252,196
328,007
580,203
Total
$
388,249
$
328,007
$
716,256
Six Months Ended June 30, 2024
SendTech Solutions
Presort Services
Other
Revenue from products and services
Revenue from leasing transactions and financing
Total consolidated revenue
Major service/product lines
Services
$
295,023
$
316,665
$
8,255
$
619,943
$
—
$
619,943
Products
117,895
—
—
117,895
104,491
222,386
Financing and other
—
—
—
—
168,685
168,685
Subtotal
412,918
316,665
8,255
737,838
$
273,176
$
1,011,014
Revenue from leasing transactions and financing
273,176
—
—
273,176
Total revenue
$
686,094
$
316,665
$
8,255
$
1,011,014
Timing of revenue recognition from services and products
Services/products transferred at a point in time
$
148,159
$
—
$
—
$
148,159
Services/products transferred over time
264,759
316,665
8,255
589,679
Total
$
412,918
$
316,665
$
8,255
$
737,838
Our performance obligations for revenue from services and products are as follows:
Services revenue includes revenues from digital shipping and mailing technology solutions and the maintenance, professional and subscription services related to those solutions, mail processing services and cross-border solutions. Revenues for mail processing services and cross-border solutions are recognized over time using an output method based on the number of parcels or mail pieces either processed or delivered, depending on the service type, since that measure best depicts the value of goods and services transferred to the client over the contract period. Contract terms for these services initially range from one to five years and contain annual renewal options. Revenue for shipping subscription services is recognized ratably over the contract period as the client obtains equal benefit from these services throughout the period. Revenue for maintenance and subscription services is recognized ratably over the contract period, which ranges from one to five years, and revenue for professional services is recognized when services are provided.
Products revenue generally includes the sale of mailing and shipping equipment and related supplies. We recognize revenue upon delivery for self-install equipment and supplies and upon acceptance or installation for other equipment.
9
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
Financing and other revenue includes revenue from sales-type and operating leases, finance income, late fees and investment income, gains and losses at the Pitney Bowes Bank.
Advance Billings from Contracts with Customers
Balance sheet location
June 30, 2025
December 31, 2024
Increase/ (decrease)
Advance billings, current
Advance billings
$
67,351
$
63,732
$
3,619
Advance billings, noncurrent
Other noncurrent liabilities
$
418
$
159
$
259
Advance billings are recorded when cash payments are due in advance of our performance. Revenue is recognized ratably over the contract term. Items in advance billings primarily relate to maintenance services on mailing equipment. Revenue recognized during the period includes $46 million of advance billings at the beginning of the period. Current advance billings shown above at June 30, 2025 and December 31, 2024 does not include $9 million and $6 million, respectively, from leasing transactions.
Future Performance Obligations
Future performance obligations primarily include maintenance and subscription services bundled with our leasing contracts. The transaction prices allocated to future performance obligations will be recognized as follows:
Remainder of 2025
2026
2027-2030
Total
SendTech Solutions
$
134,071
$
221,393
$
320,647
$
676,111
The amounts above do not include revenue for performance obligations under contracts with terms less than 12 months or revenue for performance obligations where revenue is recognized based on the amount billable to the customer.
10
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
3. Segment Information
Our reportable segments are SendTech Solutions and Presort Services. SendTech Solutions includes the revenue and related expenses from physical and digital shipping and mailing technology solutions, financing, services, supplies and other applications to help simplify and save on the sending, tracking and receiving of letters, parcels and flats. Presort Services includes the revenue and related expenses from sortation services to qualify large volumes of First Class Mail, Marketing Mail and Marketing Mail Flats/Bound Printed Matter for postal worksharing discounts.
Other operations includes the revenue and related expenses of prior operations and shared services of the Global Ecommerce reporting segment that did not qualify for discontinued operations treatment.
Management, including our Chief Executive Officer, who is the Chief Operating Decision Maker (CODM), measures segment profitability and performance using adjusted segment earnings before interest and taxes (EBIT). Adjusted segment EBIT is calculated as segment revenues less the related costs and expenses attributable to the segment. Adjusted segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, and other items not allocated to our segments. Management believes that adjusted segment EBIT provides investors a useful measure of operating performance and underlying trends of the business. Adjusted segment EBIT may not be indicative of our overall consolidated performance and therefore, should be read in conjunction with our consolidated results of operations. The following tables provide information about our reportable segments and a reconciliation of adjusted segment EBIT to income or loss from continuing operations before taxes.
Revenue
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
SendTech Solutions
$
311,716
$
339,273
$
627,322
$
686,094
Presort Services
150,193
146,858
328,007
316,665
Total segment revenue
461,909
486,131
955,329
1,002,759
Other
—
3,614
—
8,255
Total revenue
$
461,909
$
489,745
$
955,329
$
1,011,014
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
SendTech Solutions
Revenue
$
311,716
$
339,273
$
627,322
$
686,094
Less:
Cost of revenue
105,653
120,647
211,683
244,491
Operating expenses
104,808
122,603
217,357
249,666
Adjusted segment EBIT
$
101,255
$
96,023
$
198,282
$
191,937
Presort Services
Revenue
$
150,193
$
146,858
$
328,007
$
316,665
Less:
Cost of revenue
96,153
100,800
200,787
208,127
Operating expenses
18,100
19,010
36,501
41,161
Adjusted segment EBIT
$
35,940
$
27,048
$
90,719
$
67,377
11
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
Adjusted Segment EBIT
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
SendTech Solutions
$
101,255
$
96,023
$
198,282
$
191,937
Presort Services
35,940
27,048
90,719
67,377
Total adjusted segment EBIT
137,195
123,071
289,001
259,314
Reconciliation of adjusted segment EBIT to income or loss from continuing operations before taxes:
Other operations
—
(4,121)
—
(4,831)
Interest expense, net
(37,499)
(44,218)
(75,384)
(88,127)
Corporate expenses
(34,902)
(44,293)
(67,019)
(86,495)
Restructuring charges
(13,806)
(30,399)
(15,206)
(34,165)
Gain (loss) on debt redemption/refinancing
282
—
(24,364)
—
Foreign currency (loss) gain on intercompany loans
(17,029)
712
(24,624)
5,350
Benefit in connection with Ecommerce Restructuring
6,296
—
6,755
—
Transaction and Strategic review costs
(1,266)
(8,606)
(3,156)
(11,296)
Income (loss) from continuing operations before taxes
$
39,271
$
(7,854)
$
86,003
$
39,750
4. Discontinued Operations
On August 8, 2024, we entered into a series of transactions designed to facilitate an orderly wind-down of a majority of the Company’s Global Ecommerce reporting segment. In connection with the wind-down, an affiliate of Hilco Commercial Industrial, LLC (“Hilco”) subscribed for 81% of the voting interests in the subsidiary, DRF Logistics, LLC owning a majority of the Global Ecommerce segment’s net assets and operations (DRF Logistics, LLC and its subsidiary, DRF LLC, the “Ecommerce Debtors”) for de minimis consideration(the “GEC Sale”), with a subsidiary of Pitney Bowes retaining 19% of the voting interests and 100% of the economic interests.
Subsequent to the GEC Sale, the Ecommerce Debtors, at the direction of their own governing bodies, filed petitions to commence Chapter 11 bankruptcy cases and conduct an orderly wind-down of the Ecommerce Debtors (the “GEC Chapter 11 Cases”). As a result of the GEC Chapter 11 Cases, the Company determined that it no longer had control of the Ecommerce Debtors and therefore, the Ecommerce Debtors were deconsolidated. We refer to the GEC Sale, the GEC Chapter 11 Cases and any associated transactions as the “Ecommerce Restructuring”.
On November 25, 2024, the Bankruptcy Court confirmed the Ecommerce Debtors’ Third Amended Joint Plan of Liquidation (the “Plan”) and on December 9, 2024, the Plan became effective in accordance with its terms, substantially consummating the separation of the Company from the Ecommerce Debtors.
In connection with the GEC Chapter 11 Cases, we provided a senior secured, super-priority debtor-in-possession term loan (the "DIP Facility") to the Ecommerce Debtors and provided initial funding of $28 million. Through June 30, 2025, we've received repayments of $19 million. The remaining unpaid balance on the DIP Facility is fully reserved and future repayments will be recorded as income.
We account for the investment in the Ecommerce Debtors using the equity method, but have ascribed a fair value of our economic interest in the Ecommerce Debtors of zero. We do not anticipate receiving any recovery or distribution from our economic equity interest and remain exposed to the economic risks and continued costs applicable to the Ecommerce Debtors through our investment in the DIP Facility.
12
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
Discontinued operations for the three and six months ended June 30, 2024 is comprised of the following:
Three Months Ended June 30, 2024
Six Months Ended June 30, 2024
Revenue
$
303,426
$
612,666
Cost of revenue
303,225
618,167
Selling, general and administrative
27,200
56,566
Other
3,809
6,671
Total costs and expenses
334,234
681,404
Loss from discontinued operations before taxes
(30,808)
(68,738)
Tax benefit
(16,066)
(19,007)
Loss from discontinued operations, net of tax
$
(14,742)
$
(49,731)
5. Earnings per Share (EPS)
The calculation of basic and diluted EPS is presented below. The sum of the EPS amounts may not equal the totals due to rounding.
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Numerator:
Income (loss) from continuing operations
$
29,975
$
(10,125)
$
65,397
$
21,979
Loss from discontinued operations, net of tax
—
(14,742)
—
(49,731)
Net income (loss)
$
29,975
$
(24,867)
$
65,397
$
(27,752)
Denominator:
Weighted-average shares used in basic EPS
179,708
178,696
181,115
177,872
Dilutive effect of common stock equivalents (1)
1,297
—
1,593
3,470
Weighted-average shares used in diluted EPS
181,005
178,696
182,708
181,342
Basic earnings (loss) per share:
Continuing operations
$
0.17
$
(0.06)
$
0.36
$
0.12
Discontinued operations
—
(0.08)
—
(0.28)
Net income (loss)
$
0.17
$
(0.14)
$
0.36
$
(0.16)
Diluted earnings (loss) per share:
Continuing operations
$
0.17
$
(0.06)
$
0.36
$
0.12
Discontinued operations
—
(0.08)
—
(0.27)
Net income (loss)
$
0.17
$
(0.14)
$
0.36
$
(0.15)
Common stock equivalents excluded from calculation of diluted earnings per share because their impact would be anti-dilutive:
4,646
7,128
4,646
7,204
(1) Due to the net loss from continuing operations for the three months ended June 30, 2024, an additional 2.4 million of common stock equivalents were also excluded from the calculation of diluted earnings per share.
We utilize the control number concept in the computation of diluted earnings per share to determine whether potential common stock equivalents are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories.
13
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
6. Inventories
Inventories are stated at the lower of cost, determined on the first-in, first-out (FIFO) basis, or net realizable value. Inventories consisted of the following:
June 30, 2025
December 31, 2024
Raw materials
$
31,064
$
20,405
Supplies and service parts
20,931
15,095
Finished products
27,006
24,336
Total inventories
$
79,001
$
59,836
7. Finance Assets and Lessor Operating Leases
Finance Assets
Finance receivables are comprised of sales-type leases, secured loans and unsecured loans. Sales-type leases and secured loans are financing options for the purchase or lease of Pitney Bowes equipment or other manufacturers' equipment and are generally due in installments over periods ranging from three to five years. Unsecured loans are revolving credit lines offered to our clients for postage, supplies and working capital purposes. Unsecured loans are generally due monthly; however, clients may rollover outstanding balances. Interest is recognized on finance receivables using the effective interest method. Annual fees are recognized ratably over the period covered and client acquisition costs are expensed as incurred. All finance receivables are in our SendTech Solutions segment and we segregate finance receivables into a North America portfolio and an International portfolio.
Finance receivables consisted of the following:
June 30, 2025
December 31, 2024
North America
International
Total
North America
International
Total
Sales-type lease receivables
Gross finance receivables
$
901,674
$
123,527
$
1,025,201
$
946,294
$
120,109
$
1,066,403
Unguaranteed residual values
34,589
6,273
40,862
36,361
5,890
42,251
Unearned income
(255,916)
(37,881)
(293,797)
(257,971)
(34,674)
(292,645)
Allowance for credit losses
(11,549)
(2,063)
(13,612)
(12,659)
(2,324)
(14,983)
Net investment in sales-type lease receivables
668,798
89,856
758,654
712,025
89,001
801,026
Loan receivables
Loan receivables
373,881
19,253
393,134
334,717
16,874
351,591
Allowance for credit losses
(6,011)
(163)
(6,174)
(6,549)
(144)
(6,693)
Net investment in loan receivables
367,870
19,090
386,960
328,168
16,730
344,898
Net investment in finance receivables
$
1,036,668
$
108,946
$
1,145,614
$
1,040,193
$
105,731
$
1,145,924
Maturities of gross finance receivables at June 30, 2025 were as follows:
Sales-type Lease Receivables
Loan Receivables
North America
International
Total
North America
International
Total
Remainder 2025
$
180,046
$
38,541
$
218,587
$
198,622
$
19,253
$
217,875
2026
309,301
38,219
347,520
63,356
—
63,356
2027
220,116
24,834
244,950
53,212
—
53,212
2028
126,609
14,151
140,760
35,110
—
35,110
2029
55,801
6,093
61,894
19,154
—
19,154
Thereafter
9,801
1,689
11,490
4,427
—
4,427
Total
$
901,674
$
123,527
$
1,025,201
$
373,881
$
19,253
$
393,134
14
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
Aging of Receivables
The aging of gross finance receivables was as follows:
June 30, 2025
Sales-type Lease Receivables
Loan Receivables
North America
International
North America
International
Total
Past due amounts 0 - 90 days
$
892,743
$
121,074
$
371,206
$
19,175
$
1,404,198
Past due amounts > 90 days
8,931
2,453
2,675
78
14,137
Total
$
901,674
$
123,527
$
373,881
$
19,253
$
1,418,335
December 31, 2024
Sales-type Lease Receivables
Loan Receivables
North America
International
North America
International
Total
Past due amounts 0 - 90 days
$
932,948
$
117,908
$
331,411
$
16,809
$
1,399,076
Past due amounts > 90 days
13,346
2,201
3,306
65
18,918
Total
$
946,294
$
120,109
$
334,717
$
16,874
$
1,417,994
Allowance for Credit Losses
We provide an allowance for credit losses based on historical loss experience, the nature of our portfolios, adverse situations that may affect a client's ability to pay and current economic conditions and outlook based on reasonable and supportable forecasts. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves.
We establish credit approval limits based on the client's credit quality and the type of equipment financed. We cease financing revenue recognition for lease receivables and unsecured loan receivables that are more than 90 days past due. Revenue recognition is resumed when the client's payments reduce the account aging to less than 60 days past due. Finance receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients.
Activity in the allowance for credit losses for finance receivables was as follows:
Sales-type Lease Receivables
Loan Receivables
North America
International
North America
International
Total
Balance at January 1, 2025
$
12,659
$
2,324
$
6,549
$
144
$
21,676
Amounts charged to expense
618
(149)
1,752
108
2,329
Write-offs
(2,940)
(432)
(2,744)
(107)
(6,223)
Recoveries
1,122
75
447
—
1,644
Other
90
245
7
18
360
Balance at June 30, 2025
$
11,549
$
2,063
$
6,011
$
163
$
19,786
Sales-type Lease Receivables
Loan Receivables
North America
International
North America
International
Total
Balance at January 1, 2024
$
13,942
$
2,786
$
6,346
$
153
$
23,227
Amounts charged to expense
422
(81)
2,839
275
3,455
Write-offs
(2,134)
(402)
(2,836)
(268)
(5,640)
Recoveries
886
130
873
—
1,889
Other
(20)
(148)
(1)
(3)
(172)
Balance at June 30, 2024
$
13,096
$
2,285
$
7,221
$
157
$
22,759
15
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
The table below shows write-offs of gross finance receivables by year of origination.
June 30, 2025
Sales Type Lease Receivables
Loan Receivables
Total
2025
2024
2023
2022
2021
Prior
Write-offs
$
459
$
373
$
696
$
890
$
595
$
359
$
2,851
$
6,223
June 30, 2024
Sales Type Lease Receivables
Loan Receivables
Total
2024
2023
2022
2021
2020
Prior
Write-offs
$
63
$
542
$
914
$
487
$
312
$
218
$
3,104
$
5,640
Credit Quality
The extension and management of credit lines to new and existing clients uses a combination of a client's credit score, where available, a detailed manual review of their financial condition and payment history, or an automated process. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow-up should an account become delinquent. We have robust automated collections and extensive portfolio management processes to ensure that our global strategy is executed, collection resources are allocated and enhanced tools and processes are implemented as needed.
Over 85% of our finance receivables are within the North American portfolio. We use a third-party to score the majority of this portfolio on a quarterly basis using a proprietary commercial credit score. The relative scores are determined based on a number of factors, including financial information, payment history, company type and ownership structure. We stratify the credit scores of our clients into low, medium and high-risk accounts. Due to timing and other issues, our entire portfolio may not be scored at period end. We report these amounts as "Not Scored"; however, absence of a score is not indicative of the credit quality of the account. The credit score is used to predict the payment behaviors of our clients and the probability that an account will become greater than 90 days past due during the subsequent 12-month period.
•Low risk accounts are companies with very good credit scores and a predicted delinquency rate of less than 5%.
•Medium risk accounts are companies with average to good credit scores and a predicted delinquency rate between 5% and 10%.
•High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent. The predicted delinquency rate would be greater than 10%.
We do not use a third-party to score our International portfolio because the cost to do so is prohibitive as there is no single credit score model that covers all countries. Accordingly, the entire International portfolio is reported in the Not Scored category. Most of the International credit applications are small dollar applications (i.e. below $50 thousand) and are subjected to an automated review process. Larger credit applications are manually reviewed, which includes obtaining client financial information, credit reports and other available financial information.
16
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
The table below shows gross finance receivables by relative risk class and year of origination based on the relative scores of the accounts within each class.
June 30, 2025
Sales Type Lease Receivables
Loan Receivables
Total
2025
2024
2023
2022
2021
Prior
Low
$
78,579
$
167,817
$
179,071
$
132,733
$
85,432
$
94,947
$
325,798
$
1,064,377
Medium
15,081
36,313
31,234
24,149
15,512
14,530
35,999
172,818
High
1,561
3,216
2,870
2,409
1,621
1,946
5,318
18,941
Not Scored
40,180
37,704
28,644
18,136
7,880
3,636
26,019
162,199
Total
$
135,401
$
245,050
$
241,819
$
177,427
$
110,445
$
115,059
$
393,134
$
1,418,335
December 31, 2024
Sales Type Lease Receivables
Loan Receivables
Total
2024
2023
2022
2021
2020
Prior
Low
$
188,847
$
210,547
$
163,892
$
104,269
$
66,673
$
42,586
$
273,736
$
1,050,550
Medium
31,970
31,839
26,652
19,180
10,556
10,512
34,376
165,085
High
4,633
4,488
3,753
2,415
2,038
684
11,826
29,837
Not Scored
49,835
38,659
28,250
17,131
5,400
1,594
31,653
172,522
Total
$
275,285
$
285,533
$
222,547
$
142,995
$
84,667
$
55,376
$
351,591
$
1,417,994
Lease Income
Lease income from sales-type leases, excluding variable lease payments, was as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Profit recognized at commencement
$
18,062
$
27,245
$
37,818
$
54,206
Interest income
38,237
38,045
76,000
76,012
Total lease income from sales-type leases
$
56,299
$
65,290
$
113,818
$
130,218
Lessor Operating Leases
We also lease mailing equipment under operating leases with terms of one to five years. Revenue from operating leases for the three and six months ended June 30, 2025 was $14 million and $29 million, respectively, and revenue from operating leases for the three and six months ended June 30, 2024 was $17 million and $33 million, respectively. Maturities of operating leases are as follows:
Remainder 2025
$
11,039
2026
19,252
2027
14,809
2028
7,058
2029
4,078
Thereafter
1,850
Total
$
58,086
17
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
8. Intangible Assets and Goodwill
Intangible Assets
Intangible assets consisted of the following:
June 30, 2025
December 31, 2024
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Customer relationships
$
46,899
$
(31,362)
$
15,537
$
43,569
$
(29,179)
$
14,390
Software & technology
3,163
(1,933)
1,230
2,944
(1,554)
1,390
Total intangible assets
$
50,062
$
(33,295)
$
16,767
$
46,513
$
(30,733)
$
15,780
Amortization expense was $1 million for each of the three months ended June 30, 2025 and 2024 and $2 million for each of the six months ended June 30, 2025 and 2024.
Future amortization expense as of June 30, 2025 is shown in the table below. Actual amortization expense may differ due to, among other things, fluctuations in foreign currency exchange rates, acquisitions, divestitures and impairment charges.
Remainder 2025
$
2,258
2026
3,730
2027
3,460
2028
2,771
2029
1,689
Thereafter
2,859
Total
$
16,767
Goodwill
Changes in the carrying value of goodwill by reporting segment are shown in the table below.
December 31, 2024
Currency impact
June 30, 2025
SendTech Solutions
$
497,240
$
27,527
$
524,767
Presort Services
223,763
—
223,763
Total goodwill
$
721,003
$
27,527
$
748,530
18
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
9. Fair Value Measurements and Derivative Instruments
We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. An entity is required to classify certain assets and liabilities measured at fair value based on the following fair value hierarchy that prioritizes the inputs used to measure fair value:
Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities.
Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3– Unobservable inputs that are supported by little or no market activity, may be derived from internally developed methodologies based on management’s best estimate of fair value and that are significant to the fair value of the asset or liability.
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect its placement within the fair value hierarchy. The following tables show, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis.
June 30, 2025
Level 1
Level 2
Level 3
Total
Assets:
Money market funds
$
6,884
$
77,001
$
—
$
83,885
Equity securities
—
11,941
—
11,941
Commingled fixed income securities
1,666
524
—
2,190
Government and related securities
2,377
12,786
—
15,163
Corporate debt securities
—
43,299
—
43,299
Mortgage-backed / asset-backed securities
—
90,366
—
90,366
Total assets
$
10,927
$
235,917
$
—
$
246,844
December 31, 2024
Level 1
Level 2
Level 3
Total
Assets:
Money market funds
$
6,435
$
140,125
$
—
$
146,560
Equity securities
—
12,518
—
12,518
Commingled fixed income securities
1,612
534
—
2,146
Government and related securities
2,334
13,410
—
15,744
Corporate debt securities
—
42,159
—
42,159
Mortgage-backed / asset-backed securities
—
98,464
—
98,464
Total assets
$
10,381
$
307,210
$
—
$
317,591
Investment Securities
The valuation of investment securities is based on a market approach using inputs that are observable, or can be corroborated by observable data, in an active marketplace. The following information relates to our classification within the fair value hierarchy:
•Money Market Funds: Money market funds typically invest in government securities, certificates of deposit, commercial paper and other highly liquid, low risk securities. Money market funds are principally used for overnight deposits and are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange.
•Equity Securities: Equity securities are comprised of mutual funds investing in U.S. and foreign stocks. These mutual funds are classified as Level 2.
19
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
•Commingled Fixed Income Securities: Commingled fixed income securities are comprised of mutual funds that invest in a variety of fixed income securities, including securities of the U.S. government and its agencies, corporate debt, mortgage-backed securities and asset-backed securities. Fair value is based on the value of the underlying investments owned by each fund, minus its liabilities, divided by the number of shares outstanding, as reported by the fund manager. These mutual funds are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when they are not actively traded on an exchange.
•Government and Related Securities: Debt securities are classified as Level 1 when unadjusted quoted prices in active markets are available. Debt securities are classified as Level 2 where fair value is determined using quoted market prices for similar securities or benchmarking model derived prices to quoted market prices and trade data for identical or comparable securities.
•Corporate Debt Securities: Corporate debt securities are valued using recently executed comparable transactions, market price quotations or bond spreads for the same maturity as the security. These securities are classified as Level 2.
•Mortgage-Backed / Asset-Backed Securities: These securities are valued based on external pricing indices or external price/spread data. These securities are classified as Level 2.
Available-For-Sale Securities
Investment securities classified as available-for-sale are recorded at fair value. Changes in fair value due to market conditions are recorded in accumulated other comprehensive loss (AOCL), and changes in fair value due to credit conditions are recorded in earnings. There were no changes in fair value charged to earnings in the six months ended June 30, 2025 or 2024.
Available-for-sale securities consisted of the following:
June 30, 2025
Amortized cost
Gross unrealized gains
Gross unrealized losses
Estimated fair value
Government and related securities
$
21,384
$
1
$
(6,222)
$
15,163
Corporate debt securities
49,876
—
(6,577)
43,299
Commingled fixed income securities
1,860
—
(194)
1,666
Mortgage-backed / asset-backed securities
111,460
—
(21,094)
90,366
Total
$
184,580
$
1
$
(34,087)
$
150,494
December 31, 2024
Amortized cost
Gross unrealized losses
Estimated fair value
Government and related securities
$
21,432
$
(5,688)
$
15,744
Corporate debt securities
50,367
(8,208)
42,159
Commingled fixed income securities
1,835
(223)
1,612
Mortgage-backed / asset-backed securities
123,289
(24,825)
98,464
Total
$
196,923
$
(38,944)
$
157,979
The fair value of available-for-sale securities is reported on our Condensed Consolidated Balance Sheet as follows:
June 30, 2025
December 31, 2024
Short-term investments
$
3,922
$
3,926
Other assets
146,572
154,053
Total
$
150,494
$
157,979
20
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
Investment securities in a loss position were as follows:
June 30, 2025
December 31, 2024
Fair Value
Gross unrealized losses
Fair Value
Gross unrealized losses
Greater than 12 continuous months
Government and related securities
$
15,163
$
6,222
$
15,744
$
5,688
Corporate debt securities
43,299
6,577
39,845
8,206
Commingled fixed income securities
1,666
194
—
—
Mortgage-backed / asset-backed securities
90,366
21,094
98,464
24,825
Total
$
150,494
$
34,087
$
154,053
$
38,719
Less than 12 continuous months
Corporate debt securities
$
—
$
—
$
2,314
$
2
Commingled fixed income securities
—
—
1,612
223
Total
$
—
$
—
$
3,926
$
225
At June 30, 2025, substantially all securities in the investment portfolio were in an unrealized loss position. However, we have not recorded an allowance for credit loss or an impairment charge as we have the ability and intent to hold these securities until recovery of the unrealized losses or expect to receive the stated principal and interest at maturity.
Scheduled maturities of available-for-sale securities at June 30, 2025 were as follows:
Amortized cost
Estimated fair value
Within 1 year
$
4,115
$
3,922
After 1 year through 5 years
21,035
18,947
After 5 years through 10 years
25,984
22,729
After 10 years
133,446
104,896
Total
$
184,580
$
150,494
Actual maturities may not coincide with scheduled maturities as certain securities contain early redemption features and/or allow for the prepayment of obligations.
Held-to-Maturity Securities
Certain investment securities are classified as held-to-maturity and include certificates of deposits with maturities less than 90 days and highly-liquid government securities with maturities less than two years. Held-to-maturity securities at June 30, 2025 and December 31, 2024 totaled $104 million and $203 million, respectively.
Derivative Instruments
We are exposed to the impact of changes in interest rates and foreign currency exchange rates. We may use derivative instruments to limit the effects on our financial results from changes in interest rates and currency exchange rates. We do not use derivatives for trading or speculative purposes. We did not enter into any derivative instruments during the six months ended June 30, 2025.
Interest Rate Swaps
At June 30, 2024, we had outstanding interest rate swap agreements that effectively converted $200 million of variable rate debt to fixed rates. These swaps were designated as cash flow hedges. The swaps were recorded at fair value at the end of each reporting period with the change in fair value reflected in AOCL. For the three months ended June 30, 2024, the amount recognized in AOCL was a loss of $2 million and the amount reclassified from AOCL to earnings was a gain of $3 million. For the six months ended June 30, 2024, the amount recognized in AOCL was a loss of $4 million and the amount reclassified from AOCL to earnings was a gain of $5 million.
21
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
Fair Value of Financial Instruments
Our financial instruments include cash and cash equivalents, available-for-sale and held-to-maturity investment securities, accounts receivable, loan receivables, accounts payable and debt. The carrying value of cash and cash equivalents, held-to-maturity investment securities, accounts receivable, loans receivable, and accounts payable approximate fair value. The fair value of available-for-sale investment securities is presented above. The inputs used to estimate the fair value of debt included recently executed transactions and market price quotations (Level 2 inputs within the fair value hierarchy).
The carrying value and estimated fair value of debt was as follows:
June 30, 2025
December 31, 2024
Carrying value
$
1,896,715
$
1,919,708
Fair value
$
1,811,613
$
1,823,430
10. Restructuring Charges
Activity in our restructuring reserves was as follows:
2024 Plan
Balance at January 1, 2025
$
23,164
Amounts charged to expense
15,206
Cash payments
(21,518)
Noncash activity
(1,396)
Balance at June 30, 2025
$
15,456
2024 Plan
2023 Plan
Total
Balance at January 1, 2024
$
—
$
26,128
$
26,128
Amounts charged to expense - continuing operations
24,065
10,100
34,165
Amounts charged to expense - discontinued operations
1,472
521
1,993
Cash payments
—
(26,697)
(26,697)
Noncash activity
—
(875)
(875)
Balance at June 30, 2024
$
25,537
$
9,177
$
34,714
Components of restructuring expense were as follows:
Three Months Ended June 30, 2025
Three Months Ended June 30, 2024
2024 Plan
2024 Plan
2023 Plan
Total
Severance
$
12,978
$
24,065
$
6,069
$
30,134
Facilities and other
828
—
265
265
Total
$
13,806
$
24,065
$
6,334
$
30,399
Six Months Ended June 30, 2025
Six Months Ended June 30, 2024
2024 Plan
2024 Plan
2023 Plan
Total
Severance
$
13,810
$
24,065
$
8,939
$
33,004
Facilities and other
1,396
—
1,161
1,161
Total
$
15,206
$
24,065
$
10,100
$
34,165
Components of restructuring expense in discontinued operations primarily included severance charges.
At the end of the second quarter of 2025, the 2024 Plan was officially completed. Under the 2024 Plan, we eliminated approximately 3,200 positions and incurred cumulative charges of $89 million.
22
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
11. Debt
Total debt consisted of the following:
Interest rate
June 30, 2025
December 31, 2024
Term loan due March 2026
SOFR + 2.25%
$
—
$
235,000
Notes due March 2027
6.875%
367,500
380,000
Notes due March 2028
SOFR + 6.90%
—
96,563
Term loan due March 2028
SOFR + 4.0%
—
433,125
Term loan due March 2028
SOFR + 2.35%
158,000
—
Notes due March 2029
7.25%
326,000
350,000
Term loan due March 2032
SOFR + 3.75%
613,463
—
Notes due January 2037
5.25%
35,841
35,841
Notes due March 2043
6.70%
425,000
425,000
Principal amount
1,925,804
1,955,529
Less: unamortized costs, net
29,089
35,821
Total debt
1,896,715
1,919,708
Less: current portion long-term debt
15,150
53,250
Long-term debt
$
1,881,565
$
1,866,458
In the first quarter of 2025, we redeemed the remaining outstanding balance of the Notes due March 2028 and recorded a loss of $17 million in other (income) expense. Additionally, we entered into a new senior secured credit agreement (the "New Credit Agreement"), which provides for $265 million revolving credit facility maturing March 2028, a $160 million term loan maturing March 2028 and a $615 million term loan maturing March 2032. The proceeds from the new term loans were used to repay the outstanding balances of the Term loan due March 2026 and Term loan due March 2028 and for general corporate purposes. We recorded a loss of $8 million in connection with this refinance in other (income) expense.
During 2025, we also purchased an aggregate $37 million of the Notes due March 2027 and Notes due March 2029.
Under the New Credit Agreement, we are required to maintain (with maintenance tested quarterly) (i) a Consolidated Interest Coverage Ratio (as defined in the New Credit Agreement) of not less than 2.00 to 1.00, (ii) a Consolidated Secured Net Leverage Ratio (as defined in the New Credit Agreement) of no greater than 3.00 to 1.00 and (iii) a Consolidated Total Net Leverage Ratio (as defined in the New Credit Agreement) of no greater than (a) 5.25 to 1.00 for the fiscal quarters ending March 31, 2025 and June 30, 2025, (b) 5.00 to 1.00 for the fiscal quarters ending September 30, 2025 and December 31, 2025 and (c) 4.75 to 1.00 for each fiscal quarter ending on or after March 31, 2026. At June 30, 2025, we were in compliance with these financial covenants and there were no outstanding borrowings under the revolving credit facility. Borrowings under our New Credit Agreement are secured by assets of the Company.
The New Credit Agreement also contains provisions whereby if, on any day between the period commencing on September 14, 2026 and ending on March 15, 2027, the Notes due March 2027 have not been redeemed in full and liquidity is less than an amount equal to the amount to redeem the Notes due March 2027 plus $100 million, the Term loan due March 2028 and any borrowings under the revolving credit facility would become due on such date (the "Pro Rata Springing Maturity Date"), and if on any date during the period beginning on December 14, 2026 and ending on March 15, 2027, the Notes due March 2027 remain outstanding and the Pro Rata Springing Maturity Date has occurred, the Term loan due March 2032 would be become due on such date. We are considering various strategies and fully intend to redeem the Notes due March 2027 before September 2026 either with available liquidity or refinance through the capital markets.
23
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
12. Pensions and Other Benefit Programs
The components of net periodic benefit (income) cost were as follows:
Defined Benefit Pension Plans
Nonpension Postretirement Benefit Plans
United States
Foreign
Three Months Ended
Three Months Ended
Three Months Ended
June 30,
June 30,
June 30,
2025
2024
2025
2024
2025
2024
Service cost
$
7
$
12
$
291
$
184
$
70
$
93
Interest cost
13,523
14,966
5,929
5,167
1,040
1,135
Expected return on plan assets
(18,650)
(21,909)
(6,731)
(6,402)
—
—
Amortization of prior service (credit) cost
(5)
(5)
78
73
—
—
Amortization of net actuarial loss (gain)
5,072
4,972
2,309
1,913
(618)
(292)
Net periodic benefit (income) cost
$
(53)
$
(1,964)
$
1,876
$
935
$
492
$
936
Contributions to benefit plans
$
1,416
$
1,252
$
806
$
380
$
3,236
$
3,901
Defined Benefit Pension Plans
Nonpension Postretirement Benefit Plans
United States
Foreign
Six Months Ended
Six Months Ended
Six Months Ended
June 30,
June 30,
June 30,
2025
2024
2025
2024
2025
2024
Service cost
$
13
$
24
$
569
$
372
$
140
$
185
Interest cost
27,045
29,932
11,537
10,368
2,078
2,271
Expected return on plan assets
(37,300)
(43,818)
(13,113)
(12,852)
—
—
Amortization of prior service (credit) cost
(10)
(10)
151
147
—
—
Amortization of net actuarial loss (gain)
10,143
9,944
4,492
3,836
(1,222)
(587)
Net periodic benefit (income) cost
$
(109)
$
(3,928)
$
3,636
$
1,871
$
996
$
1,869
Contributions to benefit plans
$
3,029
$
2,321
$
8,162
$
7,378
$
6,938
$
7,601
13. Income Taxes
The effective tax rate for the three months ended June 30, 2025 is 23.7% and includes a benefit of $2 million for the resolution of tax matters. The effective tax rate for the six months ended June 30, 2025 is 24.0% and includes a benefit of $2 million for the vesting of restricted stock and a benefit of $2 million for the resolution of tax matters.
For the three months ended June 30, 2024, we recorded a tax provision of $2 million on a pre-tax loss of $8 million primarily due to restructuring charges as a result of the 2024 Plan. For the six months ended June 30, 2024, we recorded a tax provision of $18 million on pre-tax income of $40 million primarily due to restructuring charges as a result of the 2024 Plan and a charge of $2 million for the vesting of restricted stock.
The One Big Beautiful Bill Act was enacted on July 4, 2025, and we do not expect any material impact to our tax provision. On a regular basis, we conclude tax return examinations, statutes of limitation expire, and court decisions interpret tax law. We regularly assess tax uncertainties in light of these developments; and as a result, it is reasonably possible that the amount of unrecognized tax benefits will decrease in the next 12 months, and this decrease could be up to 35% of our unrecognized tax benefits.
With regard to U.S. Federal income tax, the Internal Revenue Service examination of our consolidated U.S. income tax returns for tax years prior to 2020 are closed to audit, except for review of the Tax Cuts and Jobs Act Sec. 965 transition tax. On a state and local level, returns for most jurisdictions are closed through 2019. For our significant non-U.S. jurisdictions, Canada is closed to examination through 2019 except for a specific issue under current exam, and France, Germany and the U.K. are closed through 2019, 2017 and 2022, respectively. We also have other less significant tax filings currently subject to examination.
24
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
14. Commitments and Contingencies
From time to time, in the ordinary course of business as well as in connection with our recent GEC Chapter 11 cases, we are involved in litigation pertaining to, among other things, contractual rights under vendor, insurance or other contracts; intellectual property or patent rights; equipment, service, payment or other disputes with clients; or disputes with employees. Some of these actions may be brought as a purported class action on behalf of a purported class of customers, employees, or others.
On October 1, 2024, one of the Ecommerce Debtors filed a complaint against Trilogy Leasing Co., LLC (“Trilogy”) in the United States Bankruptcy Court for the Southern District of Texas seeking to recharacterize certain Equipment Supplements to which they are parties as disguised financings ("Recharacterization Proceeding"). On October 8, 2024, we filed a motion to intervene in support of the Ecommerce Debtors' position, which the court granted on April 1, 2025. The case is now proceeding.
On November 7, 2024, Trilogy and its parent company Kingsbridge Holdings, LLC brought suit against us in the Circuit Court of Cook County, Illinois, alleging that we are liable for certain Equipment Supplements that were executed by the Ecommerce Debtors and by Pitney Bowes Presort Services, LLC.On December 16, 2024, we removed the litigation to the Northern District of Illinois based on diversity jurisdiction and subsequently filed a motion to dismiss, and to the extent not dismissed, stay the action pending the conclusion of the Recharacterization Proceeding. On July 15, 2025, the Northern District of Illinois court granted, in part, and denied, in part, the relief sought.
In addition, on May 9, 2025, Mitsubishi (the assignee of certain Equipment Supplements by Trilogy and/or Kingsbridge Holdings, LLC) brought an action in Superior Court of the State of Delaware, raising claims that are a subset of the claims in the Illinois Action. We have filed a motion to dismiss, and to the extent not dismissed, stay that action pending the conclusion of the Recharacterization Proceeding.
Due to uncertainties inherent in litigation, any actions could have a material adverse effect on our financial position, results of operations or cash flows; however, in management's opinion, the final outcome of outstanding matters will not have a material adverse effect on our financial position, results of operations or cash flows.
15. Stockholders’ Deficit
Changes in stockholders’ deficit were as follows:
Common stock
Retained earnings
Accumulated other comprehensive loss
Treasury stock
Total deficit
Balance at April 1, 2025
$
270,338
$
2,651,715
$
(811,575)
$
(2,646,362)
$
(535,884)
Net income
—
29,975
—
—
29,975
Other comprehensive income
—
—
47,299
—
47,299
Dividends paid ($0.07 per common share)
—
(12,626)
—
—
(12,626)
Issuance of common stock
—
(8,676)
—
8,773
97
Stock-based compensation expense
—
9,604
—
—
9,604
Repurchase of common stock
—
—
—
(75,274)
(75,274)
Balance at June 30, 2025
$
270,338
$
2,669,992
$
(764,276)
$
(2,712,863)
$
(536,809)
Common stock
Retained earnings
Accumulated other comprehensive loss
Treasury stock
Total deficit
Balance at April 1, 2024
$
270,338
$
3,027,030
$
(863,811)
$
(2,825,912)
$
(392,355)
Net loss
—
(24,867)
—
—
(24,867)
Other comprehensive loss
—
—
(1,712)
—
(1,712)
Dividends paid ($0.05 per common share)
—
(8,953)
—
—
(8,953)
Issuance of common stock
—
(48,428)
—
44,249
(4,179)
Stock-based compensation expense
—
4,177
—
—
4,177
Balance at June 30, 2024
$
270,338
$
2,948,959
$
(865,523)
$
(2,781,663)
$
(427,889)
25
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
Common stock
Retained earnings
Accumulated other comprehensive loss
Treasury stock
Total deficit
Balance at January 1, 2025
$
270,338
$
2,671,868
$
(839,171)
$
(2,681,468)
$
(578,433)
Net income
—
65,397
—
—
65,397
Other comprehensive income
—
—
74,895
—
74,895
Dividends paid ($0.13 per common share)
—
(23,606)
—
—
(23,606)
Issuance of common stock
—
(55,954)
—
58,879
2,925
Stock-based compensation expense
—
12,287
—
—
12,287
Repurchase of common stock
—
—
—
(90,274)
(90,274)
Balance at June 30, 2025
$
270,338
$
2,669,992
$
(764,276)
$
(2,712,863)
$
(536,809)
Common stock
Retained earnings
Accumulated other comprehensive loss
Treasury stock
Total deficit
Balance at January 1, 2024
$
270,338
$
3,077,988
$
(851,245)
$
(2,865,657)
$
(368,576)
Net loss
—
(27,752)
—
—
(27,752)
Other comprehensive loss
—
—
(14,278)
—
(14,278)
Dividends paid ($0.10 per common share)
—
(17,785)
—
—
(17,785)
Issuance of common stock
—
(90,059)
—
83,994
(6,065)
Stock-based compensation expense
—
6,567
—
—
6,567
Balance at June 30, 2024
$
270,338
$
2,948,959
$
(865,523)
$
(2,781,663)
$
(427,889)
26
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
16. Accumulated Other Comprehensive Loss
Reclassifications out of AOCL were as follows:
Gain (Loss) Reclassified from AOCL
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Cash flow hedges
Interest expense, net
$
—
$
2,584
$
—
$
5,175
Income tax provision
—
646
—
1,294
Net of tax
$
—
$
1,938
$
—
$
3,881
Available-for-sale securities
Financing revenue
$
—
$
(487)
$
(505)
$
(1,135)
Income tax benefit
—
(122)
(126)
(284)
Net of tax
$
—
$
(365)
$
(379)
$
(851)
Pension and postretirement benefit plans
Prior service costs
$
(73)
$
(68)
$
(141)
$
(137)
Actuarial losses
(6,763)
(6,593)
(13,413)
(13,193)
Total before tax
(6,836)
(6,661)
(13,554)
(13,330)
Income tax benefit
(1,699)
(1,654)
(3,365)
(3,282)
Net of tax
$
(5,137)
$
(5,007)
$
(10,189)
$
(10,048)
Changes in AOCL, net of tax were as follows:
Available for sale securities
Pension and postretirement benefit plans
Foreign currency adjustments
Total
Balance at January 1, 2025
$
(29,597)
$
(704,818)
$
(104,756)
$
(839,171)
Other comprehensive income before reclassifications
3,319
—
61,008
64,327
Reclassifications into earnings
379
10,189
—
10,568
Net other comprehensive income
3,698
10,189
61,008
74,895
Balance at June 30, 2025
$
(25,899)
$
(694,629)
$
(43,748)
$
(764,276)
Cash flow hedges
Available for sale securities
Pension and postretirement benefit plans
Foreign currency adjustments
Total
Balance at January 1, 2024
$
6,962
$
(33,463)
$
(757,452)
$
(67,292)
$
(851,245)
Other comprehensive income (loss) before reclassifications
964
(1,843)
—
(20,417)
(21,296)
Reclassifications into earnings
(3,881)
851
10,048
—
7,018
Net other comprehensive (loss) income
(2,917)
(992)
10,048
(20,417)
(14,278)
Balance at June 30, 2024
$
4,045
$
(34,455)
$
(747,404)
$
(87,709)
$
(865,523)
27
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
17. Supplemental Financial Statement Information
Activity in the allowance for credit losses, other than finance receivables (see Note 7 for further information) is presented below.
Six Months Ended June 30,
2025
2024
Balance at beginning of year
$
27,096
$
5,292
Amounts charged to expense
(5,192)
3,866
Write-offs, recoveries and other
(2,902)
(1,289)
Balance at end of period
$
19,002
$
7,869
Accounts and other receivables
$
7,653
$
7,869
Other current assets and prepayments
11,349
—
Total
$
19,002
$
7,869
Interest expense, net
Interest expense, net for the three months ended June 30, 2025 and 2024 includes $1 million and $3 million of interest income, respectively and interest expense, net for the six months ended June 30, 2025 and 2024 includes $3 million and $7 million of interest income, respectively.
Supplemental cash flow information is as follows:
Six Months Ended June 30,
2025
2024
Cash interest paid
$
71,923
$
85,539
Cash income tax payments (refunds), net
$
11,859
$
31,323
Noncash activity
Capital assets obtained under capital lease obligations
$
1,313
$
9,090
28
Item 2: Management’s Discussion and Analysis ofFinancial Condition and Results of Operations
Forward-Looking Statements
This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains statements that are forward-looking. We caution readers that any forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (Securities Act) and Section 21E of the Securities Exchange Act of 1934 (Exchange Act) may change based on various factors. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on current expectations and assumptions, which we believe are reasonable; however, such statements are subject to risks and uncertainties, and actual results could differ materially from those projected or assumed in any of our forward-looking statements. Words such as "estimate," "target," "project," "plan," "believe," "expect," "anticipate," "intend," "will," "forecast," "strategy," "goal," "should," "would," "could," "may" and similar expressions may identify such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Forward-looking statements in this Form 10-Q speak only as of the date hereof.
Although we believe the expectations reflected in any of our forward-looking statements are reasonable, our results of operations, financial condition and forward-looking statements are subject to change and to inherent risks and uncertainties disclosed or incorporated by reference in our filings with the Securities and Exchange Commission ("SEC"). Other factors which could cause future financial 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
•accelerated or sudden decline in physical mail or shipping volumes
•the loss of 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 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
•loss of key employees and accumulated knowledge and ability to attract and retain employees
•changes in government contracting regulations and inability to comply
•inability to protect our intellectual property rights and intellectual property infringement claims
•our success in developing and marketing new products and services and obtaining regulatory approvals, if required
•changes within our senior management and Board of Directors
•expenses and potential impacts resulting from cyber-attacks or other cybersecurity incidents affecting us or our suppliers
•inability to comply with data privacy and protection laws and regulations
•interruptions or difficulties in the operation of our cloud-based applications and systems or those of our suppliers
•changes in credit ratings, capital market disruptions, decline in cash flows, noncompliance with debt covenants or future interest rate increases that adversely impact our ability to access capital markets at reasonable costs
•our success at managing customer credit risk
•the risks and uncertainties associated with the Ecommerce Restructuring
•changes in banking regulations, major bank failures or the loss of our Industrial Bank charter
•changes in tax rates, laws or regulations
•changing expectations and regulations in the areas of Environmental, Social and Governance ("ESG")
•acts of nature and the impact of a pandemic on the Company and the services and solutions we offer
•shareholder activism
Further information about factors that could materially affect us, including our results of operations and financial condition, is contained in Item 1A. "Risk Factors" in our 2024 Annual Report, as supplemented by Part II, Item 1A in this Quarterly Report on Form 10-Q.
29
Ecommerce Restructuring
On August 8, 2024, we entered into a series of transactions designed to facilitate an orderly wind-down of a majority the Company’s Global Ecommerce reporting segment. In connection with the wind-down, an affiliate of Hilco Commercial Industrial, LLC (“Hilco”) subscribed for 81% of the voting interests in the subsidiary, DRF Logistics, LLC owning a majority of the Global Ecommerce segment’s net assets and operations (DRF Logistics, LLC and its subsidiary, DRF LLC, the “Ecommerce Debtors”) for de minimis consideration (the “GEC Sale”), with a subsidiary of Pitney Bowes retaining 19% of the voting interests and 100% of the economic interests. Subsequent to the GEC Sale, the Ecommerce Debtors, at the direction of their own governing bodies, filed petitions to commence Chapter 11 bankruptcy cases and conduct an orderly wind down of the Ecommerce Debtors (the “GEC Chapter 11 Cases”). We refer to the GEC Sale, the GEC Chapter 11 Cases and any associated transactions as the “Ecommerce Restructuring”.
As a result of the Ecommerce Restructuring, certain revenues and expenses for the three and six months ended June 30, 2024 are reported as discontinued operations in our Condensed Consolidated Financial Statements. Prior periods have been recast to conform to the current period presentation. For segment reporting purposes, the remaining portion of Global Ecommerce in continuing operations is now reported as "Other" and includes the revenue and related expenses of prior operations and shared services. See Note 4 for further information.
Outlook
Within SendTech Solutions, mailing-related revenues are expected to decline driven by lower meter populations and a higher mix of lease extensions versus new equipment sales and leases. We expect this decline to be partially offset by growth in our shipping offerings, particularly our SaaS solutions. The shift to lease extensions will result in declining equipment sales in the near term, but more stable and continued cash flows over the lease term.
Within Presort Services, we expect revenue growth to be roughly flat compared to prior year as volume declines are partially offset by pricing actions and we expect margin increases from continued improvements in efficiencies and productivity.
The U.S. government's announced tariffs on goods imported into the United States continues to be volatile, uncertain and different for each country of origin. We continuously assess the potential impact these tariffs may have on our operations and are considering various mitigating actions.
30
RESULTS OF OPERATIONS
OVERVIEW OF CONSOLIDATED RESULTS
Constant Currency
In the tables below, we report the change in revenue on a reported basis and a constant currency basis. Constant currency measures exclude the impact of changes in currency exchange rates from the prior period under comparison. We believe that excluding the impacts of currency exchange rates provides a better understanding of the underlying revenue performance. Constant currency change is calculated by converting the current period non-U.S. dollar denominated revenue using the prior year’s exchange rate.
Financial Results Summary - Three Months Ended June 30:
Three Months Ended June 30,
Favorable/(Unfavorable)
2025
2024
Actual % Change
Constant Currency % change
Total revenue
$
461,909
$
489,745
(6)
%
(6)
%
Cost of revenue
214,383
239,266
10
%
Operating expenses
208,255
258,333
19
%
Income (loss) from continuing operations before taxes
39,271
(7,854)
>100%
Provision for income taxes
9,296
2,271
>(100%)
Income (loss) from continuing operations
29,975
(10,125)
>100%
Loss from discontinued operations, net of tax
—
(14,742)
100
%
Net income (loss)
$
29,975
$
(24,867)
>100%
Revenue decreased $28 million in the second quarter of 2025 compared to the prior year period due to lower products revenue of $17 million, lower services revenue of $7 million and lower financing and other revenue of $4 million.
Costs of revenue decreased $25 million due to lower cost of services of $14 million, lower cost of products of $6 million and lower cost of financing and other of $5 million.
Total operating expenses decreased $50 million compared to the prior year period primarily due to:
•lower selling, general and administrative (SG&A) expense of $22 million primarily due to lower employee-related expenses of $19 million driven by actions taken under the 2024 Plan, lower professional and outsourcing fees of $12 million and lower insurance expense of $5 million driven by cost savings initiatives, partially offset by higher non-cash foreign currency revaluation losses on intercompany loans of $18 million;
•lower restructuring charges of $17 million driven by a larger number of actions taken under the 2024 Plan in the prior year;
•lower research and development (R&D) expense of $4 million primarily due to cost savings initiatives; and
•other income in the second quarter of 2025 primarily due to a benefit in connection with the Ecommerce Restructuring.
See Note 13 for more information regarding our tax provision.
As a result of the above, net income for the second quarter of 2025 was $30 million compared to a loss of $25 million in the prior year period. Net loss for the second quarter of 2024 includes a loss from discontinued operations, net of tax of $15 million. See Note 4 for more information.
31
Financial Results Summary - Six Months Ended June 30:
Six Months Ended June 30,
Favorable/(Unfavorable)
2025
2024
Actual % Change
Constant Currency % change
Total revenue
$
955,329
$
1,011,014
(6)
%
(6)
%
Cost of revenue
438,682
487,788
10
%
Operating expenses
430,644
483,476
11
%
Income from continuing operations before taxes
86,003
39,750
>100%
Provision for income taxes
20,606
17,771
(16)
%
Income from continuing operations
65,397
21,979
>100%
Loss from discontinued operations, net of tax
—
(49,731)
100
%
Net income (loss)
$
65,397
$
(27,752)
>100%
Revenue decreased $56 million in the first half of 2025 compared to the prior year period due to lower products revenue of $38 million, lower services revenue of $11 million and lower financing and other revenue of $6 million.
Costs of revenue decreased $49 million primarily due to lower cost of services of $23 million, lower cost of products of $18 million and lower cost of financing and other of $9 million.
Total operating expenses decreased $53 million compared to the prior year period primarily due to:
•lower SG&A expense of $43 million primarily due to lower employee-related expenses of $44 million driven by actions taken under the 2024 Plan, lower professional and outsourcing fees of $15 million and lower insurance expense of $10 million, partially offset by higher non-cash foreign currency revaluation losses on intercompany loans of $30 million;
•lower restructuring charges of $19 million driven by a larger number of actions taken under the 2024 Plan in the prior year;
•lower R&D expense of $7 million primarily due to cost savings initiatives; partially offset by
•other expense in the first half of 2025 of $18 million, primarily due to a $24 million loss on the redemption/refinancing of debt and a benefit of $7 million in connection with the Ecommerce Restructuring.
See Note 13 for more information regarding our tax provision.
As a result of the above, net income for the first half of 2025 was $65 million compared to a loss of $28 million in the prior year period. Net loss for the first half of 2024 includes a loss from discontinued operations, net of tax of $50 million. See Note 4 for more information.
.
32
SEGMENT RESULTS
Effective April 1, 2025, we revised our segment reporting to report the revenue and related expenses of a cross-border services contract in our SendTech Solutions reporting segment, which was previously reported in Other. Prior periods have been recast to conform to the current period presentation.
Effective January 1, 2025, we revised our reporting presentation of revenue and cost of revenue in order to better align with our offerings. Additionally, we revised our corporate expense allocation methodology to allocate all marketing and innovation expenses to our SendTech Solutions segment due to a change in how these functions are now managed. Prior periods have been recast to conform to the current period presentation.
We allocate a portion our total interest expense to finance interest expense, included in Cost of financing and other in our Condensed Consolidated Statements of Operations.
Management measures segment profitability and performance as segment revenues less the related costs and expenses attributable to the segment. Segment results exclude interest, including finance interest expense, taxes, corporate expenses, restructuring charges and other items not allocated to the segments.
SendTech Solutions
SendTech Solutions provides clients with physical and digital shipping and mailing technology solutions and other applications to help simplify and save on the sending, tracking and receiving of letters, parcels and flats, as well as supplies and maintenance services for these offerings. We offer financing alternatives that enable clients to finance equipment and product purchases, a revolving credit solution that enables clients to make meter rental payments and purchase postage, services and supplies, and an interest-bearing deposit solution to clients who prefer to prepay postage. We also offer financing alternatives that enable clients to finance or lease other manufacturers’ equipment and provide working capital.
Financial performance for the SendTech Solutions segment was as follows:
Three Months Ended June 30,
Favorable/(Unfavorable)
2025
2024
Actual % change
Constant Currency % change
Services
$
140,230
$
146,781
(4)
%
(5)
%
Products
90,880
108,262
(16)
%
(17)
%
Financing and other
80,606
84,230
(4)
%
(5)
%
Total revenue
311,716
339,273
(8)
%
(9)
%
Cost of services
48,072
55,542
13
%
Cost of products
54,487
60,672
10
%
Cost of financing and other
3,094
4,433
30
%
Total costs of revenue
105,653
120,647
12
%
Gross margin
206,063
218,626
(6)
%
Gross margin %
66.1
%
64.4
%
Selling, general and administrative
99,193
115,597
14
%
Research and development
3,716
7,534
51
%
Other components of pension and post retirement cost
1,899
(528)
>(100%)
Adjusted Segment EBIT
$
101,255
$
96,023
5
%
SendTech Solutions revenue decreased $28 million in the second quarter of 2025 compared to the prior year period. Products revenue declined $17 million primarily due to customers opting to extend leases of their existing advanced-technology equipment rather than purchase new equipment and the impact of the prior year product migration. Services revenue declined $7 million primarily due to the declining meter population, which was partially offset by growth in our shipping subscriptions. Financing and other revenue declined $4 million primarily driven by the impact of the prior year product migration and mix of business.
33
Gross margin declined $13 million compared to the prior year period primarily driven by lower revenue; however, gross margin percentage increased to 66.1% from 64.4% driven by headcount reductions and other cost savings initiatives.
SG&A expense declined $16 million and R&D expense declined $4 million, primarily driven by overall cost savings initiatives.
Adjusted segment EBIT was $101 million in the second quarter of 2025 compared to $96 million for the prior year period.
Six Months Ended June 30,
Favorable/(Unfavorable)
2025
2024
Actual % change
Constant Currency % change
Services
$
280,848
$
295,023
(5)
%
(5)
%
Products
184,070
222,386
(17)
%
(17)
%
Financing and other
162,404
168,685
(4)
%
(4)
%
Total revenue
627,322
686,094
(9)
%
(9)
%
Cost of services
99,291
111,948
11
%
Cost of products
105,406
123,426
15
%
Cost of financing and other
6,986
9,117
23
%
Total costs of revenue
211,683
244,491
13
%
Gross margin
415,639
441,603
(6)
%
Gross margin %
66.3
%
64.4
%
Selling, general and administrative
205,044
235,371
13
%
Research and development
8,607
15,360
44
%
Other components of pension and post retirement costs
3,706
(1,065)
>(100%)
Adjusted Segment EBIT
$
198,282
$
191,937
3
%
SendTech Solutions revenue decreased $59 million in the first half of 2025 compared to the prior year period, which includes an unfavorable adjustment of $4 million related to prior periods (see Note 1 for more information). Products revenue declined $38 million primarily due to customers opting to extend leases of their existing advanced-technology equipment rather than purchase new equipment, the impact of the prior year product migration and a significant deal in the prior year. Services revenue declined $14 million primarily due to the declining meter population, which was partially offset by growth in our shipping subscriptions. Financing and other revenue declined $6 million by the impact of the prior year product migration and mix of business.
Gross margin declined $26 million compared to the prior year period primarily driven by lower revenue; however, gross margin percentage increased to 66.3% from 64.4% driven by headcount reductions and other cost savings initiatives.
SG&A expense declined $30 million and R&D expense declined $7 million, primarily driven by lower employee-related expenses and overall cost savings initiatives.
Adjusted segment EBIT was $198 million in the first half of 2025, which includes the $4 million charge from the unfavorable revenue adjustment related to prior periods compared to $192 million for the prior year period.
34
Presort Services
Presort Services is the largest workshare partner of the USPS and national outsource provider of mail sortation services that allow clients to qualify large volumes of First Class Mail, Marketing Mail, and Marketing Mail Flats/Bound Printed Matter for postal worksharing discounts.
Financial performance for the Presort Services segment was as follows:
Three Months Ended June 30,
Favorable/(Unfavorable)
2025
2024
Actual % Change
Constant Currency % change
Services
$
150,193
$
146,858
2
%
2
%
Cost of services
96,153
100,800
5
%
Gross Margin
54,040
46,058
17
%
Gross Margin %
36.0
%
31.4
%
Selling, general and administrative
18,053
18,960
5
%
Other components of net pension and postretirement cost
47
50
6
%
Adjusted segment EBIT
$
35,940
$
27,048
33
%
Revenue increased $3 million in the second quarter of 2025 compared to the prior year period primarily due to pricing actions despite a 6% decline in total mail volumes. The processing of First Class Mail contributed the revenue increase of $3 million.
Gross margin increased $8 million and gross margin percentage increased to 36.0% from 31.4% in the prior period primarily due to higher revenue and $2 million in savings as a result of the 2024 Plan.
SG&A expense declined $1 million compared to the prior year period.
Adjusted segment EBIT was $36 million in the second quarter of 2025 compared to $27 million in the prior year period.
Six Months Ended June 30,
Favorable/(Unfavorable)
2025
2024
Actual % Change
Constant Currency % change
Services
$
328,007
$
316,665
4
%
4
%
Cost of services
200,787
208,127
4
%
Gross Margin
127,220
108,538
17
%
Gross Margin %
38.8
%
34.3
%
Selling, general and administrative
36,406
41,061
11
%
Other components of net pension and postretirement costs
95
100
5
%
Adjusted segment EBIT
$
90,719
$
67,377
35
%
Revenue increased $11 million in the first half of 2025 compared to the prior year period primarily due to pricing actions despite a 4% decline in total mail volumes. The processing of First Class Mail contributed a revenue increase of $17 million, which was partially offset by a revenue decrease from Marketing Mail Flats/Bound Printed Matter of $6 million. Prior year revenue includes a $5 million favorable adjustment related to prior periods. See Note 1 for more information.
Gross margin increased $19 million and gross margin percentage increased to 38.8% from 34.3% in the prior period primarily due to higher revenue, lower transportation costs of $2 million driven by lane optimization and $3 million in savings as a result of the 2024 Plan.
35
SG&A expense declined $5 million compared to the prior year period driven primarily by lower credit loss provision of $2 million and lower employee related expenses of $1 million.
Adjusted segment EBIT was $91 million in the first half of 2025 compared to $67 million in the prior year period, which includes the $5 million benefit from the favorable revenue adjustment.
CORPORATE EXPENSES
The majority of operating expenses are recorded directly or allocated to our reportable segments. Operating expenses not recorded directly or allocated to our reportable segments are reported as corporate expenses. Corporate expenses primarily represents corporate administrative functions such as finance, human resources, legal and information technology.
Corporate expenses were as follows:
Three Months Ended June 30,
Favorable/(Unfavorable)
2025
2024
Actual % change
Corporate expenses
$
34,902
$
44,293
21
%
Corporate expenses for the second quarter of 2025 decreased $9 million compared to the prior year period primarily due to lower salary expense of $17 million and lower variable compensation expense of $5 million driven by actions taken under the 2024 Plan and lower insurance expense of $5 million driven by cost savings initiatives, partially offset by higher non-cash foreign currency revaluation losses on intercompany loans of $18 million.
Six Months Ended June 30,
Favorable/(Unfavorable)
2025
2024
Actual % change
Corporate expenses
$
67,019
$
86,495
23
%
Corporate expenses for the first half of 2025 decreased $19 million compared to the prior year period primarily due to lower salary expense of $28 million and lower variable compensation expense of $8 million driven by actions taken under the 2024 Plan, lower insurance expense of $10 million driven by cost savings initiatives and $6 million lower expenses related to historical businesses that did not qualify for discontinued operations, partially offset by higher non-cash foreign currency revaluation losses on intercompany loans of $30 million.
36
LIQUIDITY AND CAPITAL RESOURCES
Our ability to maintain adequate liquidity for our operations is dependent upon a number of factors, including our revenue and earnings, our ability to manage costs, our clients' ability to pay their balances on a timely basis and the impacts of changing macroeconomic and geopolitical conditions. At June 30, 2025, we had cash, cash equivalents and short-term investments of $301 million, which includes $40 million held at our foreign subsidiaries used to support their liquidity needs. At this time, we believe that existing cash and investments, cash generated from operations and borrowing capacity under our revolving credit facility will be sufficient to fund our cash needs for the next 12 months. Our future capital requirements will depend on many factors, including our strategic plans, investments and potential stock repurchases.
Cash Flow Summary
Changes in cash and cash equivalents were as follows:
2025
2024
Change
Net cash from operating activities
$
94,709
$
79,945
$
14,764
Net cash from investing activities
(74,100)
(27,713)
(46,387)
Net cash from financing activities
(208,492)
(60,807)
(147,685)
Effect of exchange rate changes on cash and cash equivalents
3,334
(2,689)
6,023
Change in cash and cash equivalents
$
(184,549)
$
(11,264)
$
(173,285)
Operating Activities
Cash flows from operating activities for the first half of 2025 improved $15 million compared to the prior year period driven primarily by higher income offset by higher variable compensation and incentive award payments and declines in customer deposit balances.
Investing Activities
Cash flows from investing activities for the first half of 2025 declined $46 million compared to the prior year period primarily due to higher investments in loan receivables of $58 million, lower cash from investment activities of $6 million and $2 million for an acquisition, partially offset by lower cash outflows from discontinued operations of $10 million and DIP Facility repayments of $8 million.
Financing Activities
Cash flows from financing activities for the first half of 2025 declined $148 million compared to the prior year period primarily due to repurchases of our common stock of $90 million, lower cash from changes in customer account deposits at PB Bank of $42 million, fees paid to redeem and refinance debt of $21 million and higher dividend payments of $6 million.
We paid dividends of $24 million in the first half of 2025. Each quarter, our Board of Directors considers whether to approve the payment of a dividend. We currently expect to continue paying a quarterly dividend; however, no assurances can be given.
Debt and Financing Activities
In the first quarter of 2025, we redeemed the remaining outstanding balance of the Notes due March 2028 and recorded a loss of $17 million in other (income) expense. Additionally, we entered into a new senior secured credit agreement (the "New Credit Agreement"), which provides for $265 million revolving credit facility maturing March 2028, a $160 million term loan maturing March 2028 and a $615 million term loan maturing March 2032. The proceeds from the new term loans were used to repay the outstanding balances of the Term loan due March 2026 and Term loan due March 2028 and for general corporate purposes. We recorded a loss of $8 million in connection with this refinance in other (income) expense. During 2025, we also purchased an aggregate $37 million of the Notes due March 2027 and Notes due March 2029.
Under the New Credit Agreement, we are required to maintain (with maintenance tested quarterly) (i) a Consolidated Interest Coverage Ratio (as defined in the New Credit Agreement) of not less than 2.00 to 1.00, (ii) a Consolidated Secured Net Leverage Ratio (as defined in the New Credit Agreement) of no greater than 3.00 to 1.00 and (iii) a Consolidated Total Net Leverage Ratio (as defined in the New Credit Agreement) of no greater than (a) 5.25 to 1.00 for the fiscal quarters ending March 31, 2025 and June 30, 2025, (b) 5.00 to 1.00 for the fiscal quarters ending September 30, 2025 and December 31, 2025 and (c) 4.75 to 1.00 for each fiscal quarter ending on or after March 31, 2026. At June 30, 2025, we were in compliance with these financial covenants and there were no outstanding borrowings under the revolving credit facility. Borrowings under our New Credit Agreement are secured by assets of the Company.
37
The New Credit Agreement also contains provisions whereby if, on any day between the period commencing on September 14, 2026 and ending on March 15, 2027 the Notes due March 2027 have not been redeemed in full and liquidity is less than an amount equal to the amount to redeem the Notes due March 2027 plus $100 million, the Term loan due March 2028 and any borrowings under the revolving credit facility would become due on such date (the "Pro Rata Springing Maturity Date"), and if on any date during the period beginning on December 14, 2026 and ending on March 15, 2027, the Notes due March 2027 remain outstanding and the Pro Rata Springing Maturity Date has occurred, the Term loan due March 2032 would be become due on such date. We are considering various strategies and fully intend to redeem the Notes due March 2027 before September 2026 either with available liquidity or refinance through the capital markets.
In connection with the GEC Chapter 11 Cases, the Company, through one of its wholly owned subsidiaries, agreed to provide funding to the Ecommerce Debtors through a DIP Facility. We provided initial funding of $28 million and, have received repayments of $19 million. The remaining balance on the DIP Facility is fully reserved and any future repayments will be recorded as income in the period received.
While we are focused on reducing our leverage and interest costs, we may incur additional debt or issue additional equity securities in the future.
Off-Balance Sheet Arrangements
At June 30, 2025, there are no off-balance sheet arrangements that have, or are reasonably likely to have, a material effect on our financial condition, results of operations or liquidity.
Regulatory Matters
There have been no significant changes to the regulatory matters disclosed in our 2024 Annual Report.
Critical Accounting Estimates
There have been no significant changes to the Critical Accounting Estimates disclosed in our 2024 Annual Report.
Item 3: Quantitative and Qualitative Disclosures About Market Risk
There were no material changes to the disclosures made in our 2024 Annual Report.
Item 4: Controls and Procedures
Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures are also designed to reasonably ensure that such information is accumulated and communicated to management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), to allow timely decisions regarding disclosures.
With the participation of our CEO and CFO, management evaluated our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) and internal controls over financial reporting as of the end of the period covered by this report. Our CEO and CFO concluded that, as of the end of the period covered by this report, such disclosure controls and procedures were effective to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the required time periods. In addition, no changes in internal control over financial reporting occurred during the quarter covered by this report that materially affected, or are reasonably likely to materially affect, such internal control over financial reporting.
It should be noted that any system of controls is based in part upon certain assumptions designed to obtain reasonable (and not absolute) assurance as to its effectiveness, and there can be no assurance that any design will succeed in achieving its stated goals. Notwithstanding this caution, the CEO and CFO have reasonable assurance that the disclosure controls and procedures were effective as of June 30, 2025.
38
PART II. OTHER INFORMATION
Item 1: Legal Proceedings
See Note 14 to the Condensed Consolidated Financial Statements.
Item 1A: Risk Factors
There were no material changes to the risk factors identified in Item 1A of our 2024 Annual Report.
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds
Repurchases of Equity Securities
On February 11, 2025, our Board of Directors authorized a new $150 million share repurchase program. Further, in July 2025, our Board of Directors authorized an increase in the program to $400 million. Subject to limitations in our New Credit Agreement, purchases by the Company under the new share repurchase program may be made from time to time in open market or private transactions in such manner as may be deemed advisable from time to time (including, without limitation, pursuant to one or more 10b5-1 trading plans, accelerated share repurchase programs, and any other method that the Company may deem advisable) and may be discontinued at any time. We may also repurchase shares of our common stock to manage the dilution created by shares issued under employee stock plans and for other purposes. The following table provides information about purchases of our common stock during the three months ended June 30, 2025:
Total number of shares purchased
Average price paid per share
Total number of shares purchased as part of publicly announced plans or programs
Approximate dollar value of shares that may yet be purchased under the plans or programs (in thousands)
Beginning balance
$135,000
April 2025
1,319,150
$
8.29
1,319,150
$124,071
May 2025
1,565,765
$
9.65
1,565,765
$108,965
June 2025
4,700,827
$
10.47
4,700,827
$59,726
7,585,742
$
9.92
7,585,742
From July 1, 2025 through July 25, 2025, we purchased an additional 3,475,960 shares for a total of $40 million.
Item 3: Defaults Upon Senior Securities
None.
Item 4: Mine Safety Disclosures
Not applicable.
Item 5: Other Information
On May 22, 2025, Mr. Kurt Wolf, upon his appointment as the Company's Chief Executive Officer, terminated the Rule 10b5-1 trading arrangement he had previously adopted as a director. Mr. Wolf's Rule 10b5-1 trading arrangement was scheduled to expire on May 25, 2025 and related to shares held directly by Hestia Capital Partners, LP ("Hestia Capital"), Helios I, LP ("Helios") and separately managed accounts. Mr. Wolf is the managing member of (a) Hestia Partners GP, the general partner of Hestia Capital and Helios, and (b) Hestia LLC, the investment manager of Hestia Capital, Helios and the separately managed accounts. For additional information on his plan, refer to Item 5. Other Information in the Company's Quarterly Report on Form 10-Q for the three month period ended September 30, 2024. No other director of officer of the Company, adopted, terminated or otherwise modified a "Rule 10b5-1 trading arrangement," as defined in Item 408(a) of Regulation S-K, during the three months ended June 30, 2025.
The cover page from the Company's Quarterly Report on Form 10-Q for the current quarter, formatted in Inline XBRL. (included as Exhibit 101).
* The Exhibits identified above with an asterisk (*) are management contracts or compensatory plans or arrangements.
40
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
PITNEY BOWES INC.
Date:
July 31, 2025
/s/ Paul Evans
Paul Evans
Executive Vice President and Chief Financial Officer
(Duly Authorized Officer, Principal Financial Officer)
/s/ Lauren Thomas DeFina
Lauren Thomas DeFina
Vice President and Chief Accounting Officer
(Duly Authorized Officer, Principal Accounting Officer)