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

Discloses Continued Progress Toward Stabilizing Revenue as well as Growth in Adj. EBIT, Adj. EPS, and Adj. Free Cash Flow

Shares Positive Updates on Full-Year Guidance, Including Narrowing Outlooks and Increasing Midpoints for Revenue and Adj. Free Cash Flow

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

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

	Third Quarter
$ millions, except EPS	2026	2025	$ Change	% Change
Revenue	$456	$460	($3)	(1%)
GAAP EPS	$0.37	$0.30	$0.07	23%
Adj. EPS^1	$0.42	$0.31	$0.11	35%
GAAP Net Income	$53	$52	$1	1%
Adj. EBIT^1	$114	$107	$7	6%
Cash from Operations	$151	$67	$84	126%
Adj. Free Cash Flow^1	$147	$60	$87	144%
^1 Adjusted EPS, Adjusted EBIT, and Adjusted Free Cash Flow are non-GAAP measures. Definitions for these metrics can be found in the Use of Non-GAAP Measures section. Reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules.

Update on Capital Allocation

• The Company reduced debt by $148 million in the quarter, including $46 million through a tender offer of its notes, due in 2037 and 2043, at a discount to par. Year-to-date, debt has been reduced by $108 million.
• During the quarter, the Company also repriced its $585 million Term Loan B, due 2032, reducing the interest margin by 75 basis points.
• The Company repurchased approximately 1.0 million shares for $17 million in the third quarter at an average per share price of $16.84. Additionally, the Company repurchased another 0.6 million shares for $11 million from the start of the fourth quarter through October 23, 2026.
• The Board approved a $0.10 per share quarterly regular dividend, which is payable on December 8, 2026, to shareholders of record as of November 16, 2026.

Business Segment Reporting

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

	Third Quarter
$ millions	2026	2025	$ Change	% Change
Revenue	$305	$311	($6)	(2%)
Adj. Segment EBITDA	$124	$112	$12	11%
Adj. Segment EBIT	$115	$101	$14	14%

SendTech saw a modest revenue decline in the third quarter due to anticipated decreases in the mailing install base at this point in the cycle. This was partially offset by higher equipment sales.

Gross profit was flat year-over-year despite lower revenue, supported by favorable product mix and lower tariff costs. Adjusted Segment EBITDA and EBIT improved as a result of cost reductions, with operating expenses declining $13 million versus prior year. Results also benefited from certain non-recurring items, most notably a $3 million benefit allocation from Corporate expenses reflecting better-than-anticipated medical claims at SendTech year-to-date.

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.

	Third Quarter
$ millions	2026	2025	$ Change	% Change
Revenue	$151	$149	$2	1%
Adj. Segment EBITDA	$41	$42	($1)	(2%)
Adj. Segment EBIT	$32	$33	($1)	(2%)

Presort revenue grew 1% in the third quarter, returning to year-over-year growth, driven by increased volume from new client wins. Total volume sorted in the quarter was 3.4 billion pieces of mail, a 4% increase year-over-year.

Adjusted Segment EBITDA and EBIT saw modest declines due to lower revenue per piece and to higher transportation costs, which increased $6 million year-over-year driven by elevated fuel prices and freight cost inflation. Results also benefited from a non-recurring $7 million benefit allocation from Corporate expenses reflecting better-than-anticipated medical claims at Presort year-to-date.

2026 Full-Year Outlook

As a result of strong performance, the Company is raising the low end and effectively establishing a higher midpoint for Revenue. The Company is also raising its guidance for Adjusted Free Cash Flow and narrowing its guidance ranges for Adjusted EBIT and Adjusted EPS, maintaining their midpoints. Of note, the Company's year-to-date Adjusted Free Cash Flow reflects the benefit of increased prepayments due to new customers, resulting from the exit of a significant mail sortation competitor.

Updated guidance for Revenue, Adjusted EBIT, Adjusted EPS and Adjusted Free Cash Flow in 2026 is as follows:

	Previous Guidance		Updated Guidance
$ millions, except EPS	Low	High	Low	High
Revenue	$1,800	$1,860	$1,830	$1,860
Adjusted EBIT	$445	$475	$450	$470
Adjusted EPS	$1.55	$1.70	$1.58	$1.67
Adjusted Free Cash Flow	$360	$410	$380	$420

Q3 2026 Earnings Conference Call

Management will discuss the Company’s results in a webcast tomorrow, October 29, 2026, at 8:00 a.m. ET. Instructions for accessing the earnings results call are available on the Investor Relations page of the Company’s website at www.pitneybowes.com.

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

About Pitney Bowes

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

Adjusted Segment EBIT

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

Use of Non-GAAP Measures

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

Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of restructuring charges, foreign currency gains and losses on intercompany loans, certain costs associated with the Ecommerce Restructuring, gains and losses on debt redemptions and other unusual items that we believe are not indicative of our core business operations. For the 2026 periods, these measures also exclude pension expense related to the U.S. and Canada pension plans that we have taken steps to terminate.

Effective Q2 2026, the Company has renamed “Free Cash Flow” to “Adjusted Free Cash Flow”. This is a change in title only. There is no change in definition nor calculation methodology, and all prior-period amounts remain unchanged. Adjusted free cash flow adjusts cash flow from operations calculated in accordance with GAAP for capital expenditures, restructuring payments and other special items. Management believes adjusted free cash flow provides better insight into the amount of cash available for other discretionary uses.

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

Forward-Looking Statements

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

Pitney Bowes Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue:
Services	$288,033		$289,476		$879,120		$898,331
Products	90,257		89,712		266,430		273,782
Financing and other	77,892		80,487		239,543		242,891
Total revenue	456,182		459,675		1,385,093		1,415,004
Costs and expenses:
Cost of services	149,439		146,394		460,950		446,507
Cost of products	47,689		54,294		137,811		159,700
Cost of financing and other	11,746		14,708		36,965		47,871
Selling, general and administrative	139,201		144,154		401,324		480,611
Research and development	3,383		3,409		10,560		11,773
Restructuring charges	1,529		1,836		9,978		17,042
Interest expense, net	25,984		26,072		80,556		75,279
Other components of net pension and postretirement cost	10,274		1,645		33,564		5,446
Other expense	(3,155	)	(981	)	(2,672	)	16,628
Total costs and expenses	386,090		391,531		1,169,036		1,260,857
Income before taxes	70,092		68,144		216,057		154,147
Provision for income taxes	17,426		16,181		55,345		36,787
Net income	$52,666		$51,963		$160,712		$117,360
Basic earnings per share	$0.39		$0.31		$1.14		$0.66
Diluted earnings per share	$0.37		$0.30		$1.12		$0.66
Weighted-average shares used in diluted earnings per share	140,728		170,370		142,971		178,375

Pitney Bowes Inc.
Consolidated Balance Sheets
(Unaudited; in thousands)
Assets	September 30, 2026		December 31, 2025
Current assets:
Cash and cash equivalents	$268,514		$284,887
Short-term investments	12,661		12,232
Accounts and other receivables, net	162,171		168,099
Short-term finance receivables, net	461,910		496,446
Inventories	63,022		66,241
Current income taxes	2,422		3,143
Other current assets and prepayments	74,172		69,451
Total current assets	1,044,872		1,100,499
Property, plant and equipment, net	171,932		185,913
Rental property and equipment, net	21,959		24,054
Long-term finance receivables, net	533,191		605,129
Goodwill	739,193		746,687
Intangible assets, net	12,039		14,741
Operating lease assets	97,168		106,996
Noncurrent income taxes	98,131		95,412
Other assets	273,795		289,520
Total assets	$2,992,280		$3,168,951
Liabilities and stockholders' deficit
Current liabilities:
Accounts payable and accrued liabilities	$796,213		$845,378
Customer deposits at Pitney Bowes Bank	576,949		582,630
Current operating lease liabilities	29,725		28,396
Current portion of long-term debt	24,730		17,150
Advance billings	66,928		69,075
Current income taxes	2,795		5,210
Total current liabilities	1,497,340		1,547,839
Long-term debt	1,862,691		1,975,888
Deferred taxes on income	111,879		72,665
Tax uncertainties and other income tax liabilities	60		278
Noncurrent operating lease liabilities	87,595		99,757
Noncurrent customer deposits at Pitney Bowes Bank	71,000		71,000
Other noncurrent liabilities	198,452		203,884
Total liabilities	3,829,017		3,971,311
Stockholders' deficit:
Common stock	270,338		270,338
Retained earnings	2,739,946		2,655,703
Accumulated other comprehensive loss	(789,981	)	(789,132	)
Treasury stock, at cost	(3,057,040	)	(2,939,269	)
Total stockholders' deficit	(836,737	)	(802,360	)
Total liabilities and stockholders' deficit	$2,992,280		$3,168,951

PITNEY BOWES INC.
STATEMENTS OF CASH FLOWS
SEPTEMBER 2026
(Dollars in thousands)
	YEAR-TO-DATE
	2026		2025
Cash Flows From Operating Activities:
Net income	$160,712		$117,360
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	72,062		84,503
Allowance for credit losses	8,268		9,382
Change in allowance for DIP Facility	-		(8,907	)
Stock-based compensation	16,956		15,038
Amortization of debt fees	5,603		5,319
Loss on debt redemption/refinancing	(2,039	)	24,446
Restructuring charges	9,978		17,042
Restructuring payments	(35,592	)	(30,843	)
Loss on disposal of fixed assets	4,474		9,203
(Gain) loss on revaluation of intercompany loans	(6,731	)	21,234
Other, net	26,058		(14,875	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts and other receivables	1,359		(4,500	)
Finance receivables	87,499		94,725
Inventories	3,022		(14,825	)
Other current assets and prepayments	(7,332	)	(5,932	)
Accounts payable and accrued liabilities	(23,297	)	(171,665	)
Current and noncurrent income taxes	28,673		14,666
Advance billings	(1,461	)	186
Net cash from operating activities	348,212		161,557
Cash Flows From Investing Activities:
Capital expenditures	(45,041	)	(46,027	)
Purchases of investment securities	(9,171	)	(30,039	)
Proceeds from sales/maturities of investment securities	14,959		23,844
Net investment in loans receivables	10,383		(66,736	)
DIP Facility reimbursement	-		8,907
Acquisition	-		(2,200	)
Other investing activities, net	233		1,720
Net cash from investing activities	(28,637	)	(110,531	)
Cash Flows From Financing Activities:
Borrowings under revolving credit facility	176,700		-
Repayments under revolving credit facility	(176,700	)	-
Proceeds from issuance of debt	300,000		1,005,000
Principal payments of debt	(402,032	)	(820,262	)
Premium and fees paid to redeem/refinance debt	(7,728	)	(29,127	)
Dividends paid to stockholders	(40,599	)	(36,905	)
Customer deposits at Pitney Bowes Bank	(5,681	)	(55,648	)
Capped call payment	-		(24,702	)
Proceeds from stock option exercise	36,818		21,703
Common stock repurchases	(205,725	)	(251,774	)
Other financing activities, net	(10,151	)	(10,672	)
Net cash from financing activities	(335,098	)	(202,387	)
Effect of exchange rate changes on cash and cash equivalents	(850	)	2,629
Change in cash and cash equivalents	(16,373	)	(148,732	)
Cash and cash equivalents at beginning of period	284,887		469,726
Cash and cash equivalents at end of period	$268,514		$320,994

Pitney Bowes Inc.
Business Segment Revenue
(Unaudited; in thousands)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026	2025	% Change		2026	2025	% Change
Sending Technology Solutions	$305,255	$310,782	(2	%)	$928,132	$938,104	(1	%)
Presort Services	150,927	148,893	1	%	456,961	476,900	(4	%)
Total revenue	$456,182	$459,675	(1	%)	$1,385,093	$1,415,004	(2	%)

Pitney Bowes Inc.
Adjusted Segment EBIT & EBITDA
(Unaudited; in thousands)
	Three Months Ended September 30,
	2026				2025				% change
	Adjusted Segment EBIT	D&A	Adjusted Segment EBITDA		Adjusted Segment EBIT	D&A	Adjusted Segment EBITDA		Adjusted Segment EBIT		Adjusted Segment EBITDA
Sending Technology Solutions	$115,035	$9,172	$124,207		$101,059	$11,190	$112,249		14	%	11	%
Presort Services	31,861	8,991	40,852		32,626	9,242	41,868		(2	%)	(2	%)
Total reportable segments	$146,896	$18,163	$165,059		$133,685	$20,432	$154,117		10	%	7	%
Reconciliation of Adjusted Segment EBITDA to income before taxes:
Depreciation and amortization - reportable segments			(18,163	)			(20,432	)
Interest expense, net			(34,450	)			(37,287	)
Corporate expenses			(32,980	)			(26,350	)
Restructuring charges			(1,529	)			(1,836	)
Gain (loss) on debt activities			3,155				(82	)
Foreign currency gain on intercompany loans			960				3,390
Pension expense of plans to be terminated			(7,149	)			-
Transaction and strategic review costs			(4,811	)			(4,439	)
Benefit in connection with Ecommerce Restructuring			-				1,063
Income before taxes			$70,092				$68,144
	Nine Months Ended September 30,
	2026				2025				% change
	Adjusted Segment EBIT	D&A	Adjusted Segment EBITDA		Adjusted Segment EBIT	D&A	Adjusted Segment EBITDA		Adjusted Segment EBIT		Adjusted Segment EBITDA
Sending Technology Solutions	$351,243	$28,906	$380,149		$299,341	$34,602	$333,943		17	%	14	%
Presort Services	91,045	26,582	117,627		123,345	27,649	150,994		(26	%)	(22	%)
Total reportable segments	$442,288	$55,488	$497,776		$422,686	$62,251	$484,937		5	%	3	%
Reconciliation of Adjusted Segment EBITDA to income before taxes:
Depreciation and amortization - reportable segments			(55,488	)			(62,251	)
Interest expense, net			(107,633	)			(112,671	)
Corporate expenses			(81,942	)			(93,369	)
Restructuring charges			(9,978	)			(17,042	)
Gain (loss) on debt activities			2,039				(24,446	)
Foreign currency gain (loss) on intercompany loans			6,731				(21,234	)
Pension expense of plans to be terminated			(23,125	)			-
Transaction and strategic review costs			(12,956	)			(7,595	)
Benefit in connection with Ecommerce Restructuring			633				7,818
Income before taxes			$216,057				$154,147

Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited; in thousands, except per share amounts)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Reconciliation of net income to adjusted net income, adjusted EBIT and adjusted EBITDA
Net income - GAAP	$52,666		$51,963		$160,712		$117,360
Provision for income taxes	17,426		16,181		55,345		36,787
Income before taxes	70,092		68,144		216,057		154,147
Restructuring charges	1,529		1,836		9,978		17,042
Foreign currency (gain) loss on intercompany loans	(960	)	(3,390	)	(6,731	)	21,234
(Gain) loss on debt activities	(3,155	)	82		(2,039	)	24,446
Pension expense of plans to be terminated	7,149		-		23,125		-
Transaction and strategic review costs	4,811		4,439		12,956		7,595
Benefit in connection with Ecommerce Restructuring	-		(1,063	)	(633	)	(7,818	)
Adjusted net income before tax	79,466		70,048		252,713		216,646
Adjusted tax provision	19,898		16,657		64,454		52,488
Adjusted net income	$59,568		$53,391		$188,259		$164,158
Adjusted income before tax	79,466		$70,048		$252,713		$216,646
Interest expense, including financing interest	34,450		37,287		107,633		112,671
Adjusted EBIT	113,916		107,335		360,346		329,317
Depreciation and amortization	22,734		27,418		72,062		84,503
Adjusted EBITDA	$136,650		$134,753		$432,408		$413,820
Reconciliation of diluted earnings per share to adjusted diluted earnings per share
Diluted earnings per share - GAAP	$0.37		$0.30		$1.12		$0.66
Restructuring charges	$0.01		0.01		0.05		0.07
Foreign currency (gain) loss on intercompany loans	($0.01	)	(0.02	)	(0.04	)	0.09
Pension expense of plans to be terminated	$0.04		-		0.12		-
(Gain) loss on debt activities	($0.02	)	-		(0.01	)	0.10
Transaction and strategic review costs	$0.03		0.02		0.07		0.03
Benefit in connection with Ecommerce Restructuring	-		(0.01	)	-		(0.03	)
Adjusted diluted earnings per share	$0.42		$0.31		$1.32		$0.92
The sum of the earnings per share amounts may not equal the total due to rounding.
Reconciliation of net cash from operating activities to adjusted free cash flow
Net cash from operating activities	$151,140		$66,848		$348,212		$161,557
Capital expenditures	(10,710	)	(15,797	)	(45,041	)	(46,027	)
Restructuring payments	6,694		9,325		35,592		30,843
Adjusted free cash flow	$147,124		$60,376		$338,763		$146,373