Pitney Bowes Announces Strong Financial Results for First Quarter 2025 and Continued Progress Across Range of Value Enhancing Initiatives

Increases Quarterly Dividend From $0.06 to $0.07

Reaffirms Full-Year Financial Guidance Following Strong Q1 Performance for SendTech and Presort

Shares Update on New Cost Reduction and Deleveraging Initiatives to Continue Strengthening the Company’s Financial Position

STAMFORD, Conn.--(BUSINESS WIRE)-- Pitney Bowes Inc. (NYSE: PBI) (“Pitney Bowes” or the “Company”), a technology-driven services company that provides SaaS shipping solutions, mailing innovation and financial services to clients around the world, today announced its financial results for the first quarter ended March 31, 2025. The Company also announced that it is reiterating its full-year outlook, taking additional steps to cut costs and deleverage, and increasing its quarterly dividend for a second consecutive quarter.

First Quarter 2025 Financial Highlights

• Revenue was $493 million, down 5% year over year and in line with previously disclosed expectations for this point in the Company’s product lifecycle
• GAAP EPS was $0.19, an improvement of $0.21 year over year
• Adjusted EPS was $0.33, an improvement of $0.14 or 74% year over year
• GAAP net income of $35 million, an improvement of $38 million year over year
• Adjusted EBIT was $120 million, an improvement of $26 million or 28% year over year
• GAAP cash from operating activities was a use of $17 million and included a $146 million use of working capital in line with seasonal expectations
• Free Cash Flow, which excludes $13 million of restructuring payments, was a use of $20 million and consistent with the Company’s budget and prior guidance

Capital Allocation Update

• For the second consecutive quarter, the Company is increasing its quarterly dividend by $0.01, from $0.06 to $0.07. The Board will continue to evaluate potential additional increases on a quarterly basis.
• In the first quarter, the Company repurchased $15 million of shares under its previously announced $150 million authorization. The Company repurchased an additional $12 million of shares from the end of the first quarter through May 2, 2025.
• Through the end of Q1, the Company repurchased $23 million of debt in the open market. The Company repurchased an additional $14 million of debt from the end of the first quarter through May 2, 2025. Due to its current debt covenants, the Company is targeting a 3.0x leverage ratio. The Company expects to achieve this target by the third quarter of 2025.

Overview – First Quarter and Full-Year Initiatives

• The Company eliminated $34 million in annualized costs during the first quarter. This brings the Company’s run-rate at the end of the first quarter to $157 million in net annualized savings. The Company is increasing its target to $180 million to $200 million in net annualized cost savings, up from its previously announced target of $170 million to $190 million, with the remainder to be executed over the next year.
• The Company continued its execution of the Pitney Bowes Bank (the “Bank”) Receivables Purchase Program, which involves the sale of eligible leases to the Bank. These sales reduce parent company interest costs and improve Bank profitability. The Bank held $84 million of associated leases at the end of Q1, and the Company aims to increase that figure to $120 million by the end of 2025. Leadership is actively evaluating low-risk, high-return ways to expand this program.
• The Company will continue to pursue a disciplined capital allocation strategy that balances high-return investments in SendTech’s shipping business, potential high-return tuck-in acquisitions in Presort, debt reduction and the return of meaningful capital to shareholders.

Lance Rosenzweig, Chief Executive Officer and a member of the Company’s Board of Directors, commented:

“Continuing to execute on our strategic initiatives drove significant profitability in the quarter and has put us on track for a very strong year. Even in the current macroeconomic environment, we remain on track to meaningfully grow cash flow and earnings over the course of 2025. We are also continuing to cut additional costs, deleverage the balance sheet and expand in profitable growth markets like shipping technology. All of these steps are allowing us to accelerate the return of capital to shareholders, including another increase in our dividend. We are also focused on realizing the value of our Global Financial Services business, which has been a hidden gem. As we look to the second quarter, we will continue to pursue the many opportunities we have to enhance value and serve one of the world’s most enviable client bases.”

Earnings per share results are summarized in the table below:

	First Quarter
	2025	2024
GAAP EPS	$0.19	($0.02)
Loss from discontinued operations, net of tax	-	$0.19
Restructuring charges	$0.01	$0.02
Foreign currency loss / (gain) on intercompany loans	$0.03	($0.02)
Loss on debt redemption/refinancing	$0.10	-
Strategic review costs	$0.01	$0.01
Adjusted EPS	$0.33	$0.19

Business Segment Reporting

Corporate Expense Allocation Methodology

Effective January 1, 2025, the Company updated its Corporate expense allocation methodology. Marketing and innovation expenses are now reported in the SendTech Solutions segment. Prior periods have been recast to reflect this change in methodology.

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

	First Quarter
($ millions)	2025	2024	% Change Reported
Revenue	$298	$327	(9%)
Adj. Segment EBITDA	$106	$104	2%
Adj. Segment EBIT	$95	$94	1%

SendTech revenue declined in line with expectations due to near-term headwinds associated with the end of the recent product migration and the ongoing shift from equipment placement to lease extensions. In addition, revenue was adversely impacted by non-recurring items including an unfavorable prior period accounting adjustment of $4 million and difficult year-over-year comparison from a $4 million government deal in the prior year period.

The underlying SendTech business remains strong. Improvement in Adjusted Segment EBITDA and EBIT was driven by simplification and cost reduction initiatives.

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

	First Quarter
($ millions)	2025	2024	% Change Reported
Revenue	$178	$170	5%
Adj. Segment EBITDA	$64	$49	30%
Adj. Segment EBIT	$55	$40	36%

Higher revenue per piece, improved productivity, and cost reduction initiatives drove the increase in Adjusted Segment EBITDA and EBIT.

Full Year 2025 Guidance

Pitney Bowes reaffirms its full-year guidance. Full-year guidance is as follows:

$ millions, except EPS	Low	High
Revenue	$1,950	$2,000
Adjusted EBIT	$450	$480
Adjusted EPS	$1.10	$1.30
Free Cash Flow	$330	$370

Conference Call and Webcast

Management of Pitney Bowes will discuss the Company’s results in a webcast today at 5:00 p.m. ET. Instructions for accessing the earnings results call are available on the Investor Relations page of the Company’s website at www.pitneybowes.com.

About Pitney Bowes

Pitney Bowes (NYSE: PBI) is a technology-driven company that provides 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. For the latest news, corporate announcements, and financial results, visit www.pitneybowes.com/us/newsroom. For additional information, visit Pitney Bowes at www.pitneybowes.com.

Adjusted Segment EBIT
Adjusted Segment EBIT is the primary measure of profitability and operational performance at the segment level. Adjusted Segment EBIT includes segment revenues and related costs and expenses attributable to the segment, but excludes interest, taxes, restructuring charges, corporate expenses, and other items not allocated to a business segment. We also report Adjusted Segment EBITDA as an additional useful measure of segment profitability and operational performance, which is calculated as Adjusted Segment EBIT plus depreciation and amortization expense of the segment.

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

Revenue growth is presented on a constant currency basis to exclude the impact of changes in foreign currency exchange rates since the prior period under comparison. Constant currency is calculated by converting the current period non-U.S. dollar denominated revenue using the prior year’s exchange rate for the comparable quarter. We believe that excluding the impacts of currency exchange rates provides a better understanding of the underlying revenue performance.

Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of restructuring charges, foreign currency gains and losses on intercompany loans, certain costs associated with the Ecommerce Restructuring, gains and losses on debt redemptions and other unusual items that we believe are not indicative to our core business operations.

Beginning in the third quarter of 2024, as a result of the Ecommerce Restructuring, we also exclude from these measures the operating results of GEC operations that we are also in the process of exiting that did not qualify for discontinued operations reporting. These operations individually did not qualify for discontinued operations but were part of management's strategic review to exit the GEC business. These operations have either been fully dissolved or are expected to be completely dissolved by the end of the first half of 2025. We believe that excluding these amounts improves the usefulness of these measures as these results are not consistent with our ongoing operations. Previously reported periods have been revised to conform to the current period presentation.

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

Complete reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules and at the Company's web site at: https://www.investorrelations.pitneybowes.com/

Forward-Looking Statements
This document contains “forward-looking statements” about the Company’s expected or potential future business and financial performance, including, but not limited to, statements about future revenue and earnings guidance, future events or conditions, capital allocation strategy and expected cost savings, elimination of future losses, and anticipated deleveraging in connection with Pitney Bowes’ announced strategic initiatives. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. Factors which could cause future 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 volumes; inability to compete effectively with our Sending Technology Solutions competitors; changes in trade policies, tariffs and regulations; the loss of some of Pitney Bowes’ larger clients in the Presort Services segment; 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; and other factors as more fully outlined in the Company's 2024 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission during 2025. Pitney Bowes assumes no obligation to update any forward-looking statements contained in this document as a result of new information, events, or developments.

Note: Consolidated statements of income; revenue, adjusted segment EBIT and adjusted segment EBITDA by business segment; and reconciliations of GAAP to non-GAAP measures for the three months ended March 31, 2025 and 2024, and consolidated balance sheets at March 31, 2025 and December 31, 2024 are attached. We have not provided a reconciliation of our future expectations as to Adjusted EBIT, Adjusted EPS or free cash flow as such reconciliations are not available without unreasonable efforts.

Pitney Bowes Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
		Three months ended March 31
			2025			2024
Revenue:
Services		$	318,432		$	322,690
Products			93,190			114,124
Financing and Other			81,798			84,455
Total revenue			493,420			521,269
Costs and expenses:
Cost of services			155,873			164,481
Cost of products			50,919			62,754
Cost of financing and other			17,507			21,287
Selling, general and administrative			165,915			186,832
Research and development			4,763			7,626
Restructuring charges			1,400			3,766
Interest expense, net			24,270			27,306
Other components of net pension and postretirement income			1,854			(387	)
Other expense			24,187			-
Total costs and expenses			446,688			473,665
Income before taxes			46,732			47,604
Provision for income taxes			11,310			15,500
Income from continuing operations			35,422			32,104
Loss from discontinued operations, net of tax			-			(34,989	)
Net income (loss)		$	35,422		$	(2,885	)
Basic earnings (loss) per share
Continuing operations		$	0.19		$	0.18
Discontinued operations			-			(0.20	)
Net earings (loss)		$	0.19		$	(0.02	)
Diluted earnings (loss) per share:
Continuing operations		$	0.19		$	0.18
Discontinued operations			-			(0.19	)
Net earings (loss)		$	0.19		$	(0.02	)
Weighted-average shares used in diluted earnings per share			184,772,933			181,480,268
Note: The sum of the earnings per share amounts may not equal the totals due to rounding.

Pitney Bowes Inc.
Consolidated Balance Sheets
(Unaudited; in thousands)
Assets		March 31, 2025				December 31, 2024
Current assets:
Cash and cash equivalents		$	323,787			$	469,726
Short-term investments			16,175				16,374
Accounts and other receivables, net			160,284				159,951
Short-term finance receivables, net			526,411				535,608
Inventories			65,103				59,836
Current income taxes			984				10,429
Other current assets and prepayments			92,145				66,030
Total current assets			1,184,889				1,317,954
Property, plant and equipment, net			204,380				218,657
Rental property and equipment, net			24,275				24,587
Long-term finance receivables, net			624,400				610,316
Goodwill			729,687				721,003
Intangible assets, net			17,924				15,780
Operating lease assets			113,433				113,357
Noncurrent income taxes			101,350				99,773
Other assets			269,365				276,089
Total assets		$	3,269,703			$	3,397,516
Liabilities and stockholders' deficit
Current liabilities:
Accounts payable and accrued liabilities		$	743,846			$	873,626
Customer deposits at Pitney Bowes Bank			625,095				645,860
Current operating lease liabilities			27,322				26,912
Current portion of long-term debt			14,150				53,250
Advance billings			75,060				70,131
Current income taxes			3,528				2,948
Total current liabilities			1,489,001				1,672,727
Long-term debt			1,899,002				1,866,458
Deferred taxes on income			50,298				49,187
Tax uncertainties and other income tax liabilities			14,560				13,770
Noncurrent operating lease liabilities			100,754				100,804
Noncurrent customer deposits at Pitney Bowes Bank			51,977				57,977
Other noncurrent liabilities			199,995				215,026
Total liabilities			3,805,587				3,975,949
Stockholders' deficit:
Common stock			270,338				270,338
Retained earnings			2,651,715				2,671,868
Accumulated other comprehensive loss			(811,575	)			(839,171	)
Treasury stock, at cost			(2,646,362	)			(2,681,468	)
Total stockholders' deficit			(535,884	)			(578,433	)
Total liabilities and stockholders' deficit		$	3,269,703			$	3,397,516

Pitney Bowes Inc.
Business Segment Revenue
(Unaudited; in thousands)
		Three months ended March 31
			2025				2024			% Change
Sending Technology Solutions		$	298,055			$	327,437			(9	%)
Presort Services			177,814				169,807			5	%
Total reportable segments			475,869				497,244			(4	%)
Other operations			17,551				24,025			(27	%)
Total revenue, as reported			493,420				521,269			(5	%)
Impact of currency on revenue			2,135
Total revenue, constant currency		$	495,555			$	521,269			(5	%)

Pitney Bowes Inc.
Adjusted Segment EBIT & EBITDA
(Unaudited; in thousands)
		Three months ended March 31
		2025								2024								% change
		Adjusted Segment EBIT (1)		D&A		Adjusted Segment EBITDA				Adjusted Segment EBIT (1)		D&A		Adjusted Segment EBITDA				Adjusted Segment EBIT		Adjusted Segment EBITDA
Sending Technology Solutions		$	94,934	$	11,065	$	105,999			$	93,710	$	9,994	$	103,704			1	%	2	%
Presort Services			54,779		9,269		64,048				40,329		8,757		49,086			36	%	30	%
Total reportable segments		$	149,713	$	20,334		170,047			$	134,039	$	18,751		152,790			12	%	11	%
Reconciliation of Adjusted Segment EBITDA to Income from continuing operations:
Other operations (2)							1,879								1,494
Depreciation and amortization - reportable segments							(20,334	)							(18,751	)
Interest expense, net							(37,885	)							(43,909	)
Corporate expenses							(31,903	)							(42,202	)
Restructuring charges							(1,400	)							(3,766	)
Foreign currency (loss) gain on intercompany loans							(7,595	)							4,638
Strategic review costs							(1,890	)							(2,690	)
Benefit in connection with the Ecommerce Restructuring							459								-
Loss on debt redemption/refinancing							(24,646	)							-
Income from continuing operations before taxes						$	46,732							$	47,604

(1)		Adjusted segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, foreign currency gains and losses from the revaluation of intercompany loans and other items that are not allocated to a business segment.
(2)		Other operations includes the revenue and related expenses of our former Global Ecommerce business that did not qualify for discontinued operations treatment. These operations represent a cross-border services contract, shared services functions and previously dissolved operations.

Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited; in thousands, except per share amounts)
		Three months ended March 31
			2025				2024
Reconciliation of reported net income (loss) to adjusted EBIT and adjusted EBITDA
Net income (loss)		$	35,422			$	(2,885	)
Loss from discontinued operations, net of tax			-				34,989
Provision for income taxes			11,310				15,500
Income before taxes			46,732				47,604
Restructuring charges			1,400				3,766
Foreign currency loss (gain) on intercompany loans			7,595				(4,638	)
Strategic review costs			1,890				2,690
Benefit in connection with the Ecommerce Restructuring			(459	)			-
Loss on debt redemption/refinancing			24,646				-
Adjusted net income before tax			81,804				49,422
Interest, net			37,885				43,909
Adjusted EBIT			119,689				93,331
Depreciation and amortization			28,324				28,850
Adjusted EBITDA		$	148,013			$	122,181
Reconciliation of reported diluted earnings (loss) per share to adjusted diluted earnings per share
Diluted earnings (loss) per share		$	0.19			$	(0.02	)
Loss from discontinued operations, net of tax			-				0.19
Restructuring charges			0.01				0.02
Foreign currency loss (gain) on intercompany loans			0.03				(0.02	)
Strategic review costs			0.01				0.01
Loss on debt redemption/refinancing			0.10				-
Adjusted diluted earnings per share		$	0.33			$	0.19
The sum of the earnings per share amounts may not equal the totals due to rounding.
Reconciliation of reported net cash from operating activities to free cash flow
Net cash from operating activities - continuing operations		$	(16,679	)		$	(1,015	)
Capital expenditures			(16,887	)			(14,318	)
Restructuring payments			13,106				14,989
Free cash flow		$	(20,460	)		$	(344	)

 

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Source: Pitney Bowes Inc.