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Pitney Bowes Fourth Quarter Earnings February 17, 2026
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Forward-Looking Statements and Financial Presentation 2 This document contains “forward-looking statements” about the Company’s expected or potential future business and financial performance, including, but not limited to, statements about future revenue and profitability, earnings guidance, future events or conditions, capital allocation strategy, expected cost savings and efficiency improvements, and strategic initiatives and priorities. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. Factors which could cause future performance to differ materially from expectations include, without limitation, changes in postal regulations or the operations and financial health of posts in the U.S. or other major markets or changes to the broader postal or shipping markets; declines in physical mail volumes or shipping volumes; the loss of customers, including some of our larger clients; changes in trade policies, tariffs and regulations; global supply chain issues adversely impacting our third party suppliers’ ability to provide us products and services; periods of difficult economic conditions, the impacts of inflation and rising prices, higher interest rates and a slow-down in economic activity, including a global recession, or a prolonged U.S. government shutdown, to the Company and our clients; changes in foreign currency exchange rates; changes in labor and transportation availability and costs; inability to successfully execute on our strategic initiatives; and other factors as more fully outlined in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 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.
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Use of Non-GAAP Measures 3 Adjusted Segment EBIT Adjusted Segment EBIT is the primary measure of profitability and operational performance at the segment level. Adjusted Segment EBIT includes segment revenues and related costs and expenses attributable to the segment, but excludes interest, taxes, general corporate expenses, restructuring charges, and other items not allocated to a business segment. We also report Adjusted Segment EBITDA as an additional useful measure of segment profitability and operational performance, which is calculated as Adjusted Segment EBIT plus depreciation and amortization expense of the segment. Use of Non-GAAP Measures Pitney Bowes’ financial results are reported in accordance with generally accepted accounting principles (GAAP). Pitney Bowes also discloses certain non-GAAP measures, such as adjusted earnings before interest and taxes (Adjusted EBIT), adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), adjusted earnings per share (Adjusted EPS) and free cash flow. Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of restructuring charges, foreign currency gains and losses on intercompany loans, certain costs associated with the Ecommerce Restructuring, gains and losses on debt redemptions and other unusual items that we believe are not indicative to our core business operations. Free cash flow adjusts cash flow from operations calculated in accordance with GAAP for capital expenditures, restructuring payments and other special items. Management believes free cash flow provides better insight into the amount of cash available for other discretionary uses. Reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules and at the Company's web site 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.
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Business Overview and Financial Results 4
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Fourth Quarter – Overview 5 ▪ Revenue was $478 million, down 7% year-over-year ▪ GAAP EPS was $0.17, an improvement of $0.38 year over year ▪ Adjusted EPS was $0.45, an improvement of $0.13 year over year ▪ GAAP net income of $27 million, an improvement of $65 million year over year ▪ Adjusted EBIT was $132 million, an improvement of $18 million year over year ▪ GAAP cash from operating activities was $222 million, an improvement of $90 million year over year ▪ Free Cash Flow was $212 million and excluded $10 million of restructuring payments
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Fourth Quarter – Results vs. Prior Year 6 $ millions (7%) Growth Y/Y SG&A as % of Revenue Q4 2025: 28.4% Q4 2024: 32.8% Gross Margin Q4 2025: 57.2% Q4 2024: 56.7% R&D as a % of Revenue Q4 2025: 0.7% Q4 2024: 1.8% Adj EBIT Margin Q4 2025: 27.6% Q4 2024: 22.2% $478 $273 $136 $4 $132 $516 $293 $169 $9 $114 Revenue Gross Profit SG&A R&D Adj EBIT Q4 2025 Q4 2024
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Full Year – Results vs. Prior Year 7 $ millions (7%) Growth Y/Y SG&A as % of Revenue FY 2025: 31.0% FY 2024: 35.1% Gross Margin FY 2025: 56.6% FY 2024: 55.6% R&D as a % of Revenue FY 2025: 0.8% FY 2024: 1.6% Adj EBIT Margin FY 2025: 24.4% FY 2024: 19.0% $1,893 $1,072 $587 $15 $461 $2,027 $1,126 $711 $32 $385 Revenue Gross Profit SG&A R&D Adj EBIT FY 2025 FY 2024
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Fourth Quarter – SendTech Solutions 8 SendTech Solutions offers physical and digital shipping and mailing technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify and save on the sending, tracking and receiving of letters, parcels and flats. ($ millions) Q4 2025 Q4 2024 % Change Reported Revenue $318 $337 (6%) Adjusted Segment EBITDA $124 $103 20% Adjusted Segment EBIT $113 $91 24% Key Drivers: ▪ SendTech revenue declined due to the impact of prior year product migration and a decrease in the mailing install base. ▪ Adjusted Segment EBITDA and Adjusted Segment EBIT increased over prior year due to cost reduction initiatives
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Fourth Quarter – Presort Services 9 Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter. ($ millions) Q4 2025 Q4 2024 % Change Reported Revenue $160 $180 (11%) Adjusted Segment EBITDA $51 $61 (16%) Adjusted Segment EBIT $42 $52 (20%) Key Drivers: ▪ Revenue deline in the fourth quarter was driven by a 10% reduction in volumes due to previously communicated client losses and market decline ▪ Adjusted Segment EBITDA and EBIT declined due to the decrease in revenue and reduced operating leverage from lower volumes. This decline was partially offset by improved operating expenses and a favorable $5 million prior period accounting adjustment.
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Guidance and Outlook 10
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Full Year 2026 Guidance 11 Guidance Pitney Bowes provides the following guidance for Revenue, Adjusted EBIT, Adjusted EPS and Free Cash Flow in 2026. $ millions, except EPS Low High Revenue $1,760 $1,860 Adjusted EBIT $410 $460 Adjusted EPS $1.40 $1.60 Free Cash Flow $340 $370
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Appendix 12
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Fourth Quarter 2025 – Debt Profile 13 ($000s) Interest Rate 12/31/2025 12/31/2024 Term loan due March 2026 SOFR + 2.25% - 235,000 Notes due March 2027 6.875% 346,700 380,000 Notes due March 2028 SOFR + 6.9% - 96,563 Term loan due March 2028 SOFR + 4.0% - 433,125 Term loan due March 2028 SOFR + 2.10% 154,000 - Notes due March 2029 7.25% 326,000 350,000 Convertible Note due August 2032 1.50% 230,000 - Term loan due March 2032 SOFR + 3.75% 588,567 - Notes due January 2037 5.25% 31,666 35,841 Notes due March 2043 6.70% 349,279 425,000 Principal amount 2,026,212 1,955,529 Total debt consisted of the following:
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Appendix: Financial Information 14 Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 Revenue: Services $ 307,700 $ 327,922 $ 1,206,031 $ 1,260,612 Products 90,927 106,613 364,709 430,845 Financing and other 78,998 81,586 321,889 335,141 Total revenue 477,625 516,121 1,892,629 2,026,598 Costs and expenses: Cost of services 148,391 157,672 594,898 639,039 Cost of products 52,666 61,646 212,366 244,198 Cost of financing and other 13,632 19,202 61,503 81,061 Selling, general and administrative 140,956 148,269 621,567 717,894 Research and development 3,505 9,492 15,278 31,957 Restructuring charges 41,618 12,056 58,660 76,915 Interest expense, net 26,181 26,771 101,460 110,094 Other components of net pension and postretirement cost 2,097 90,774 7,543 89,044 Other expense 10,202 38,436 26,830 88,723 Total costs and expenses 439,248 564,318 1,700,105 2,078,925 Income (loss) from continuing operations before taxes 38,377 (48,197) 192,524 (52,327) Provision (benefit) for income taxes 11,040 (6,134) 47,827 (154,829) Income (loss) from continuing operations 27,337 (42,063) 144,697 102,502 Income (loss) from discontinued operations, net of tax - 4,690 - (306,099) Net income (loss) $ 27,337 $ (37,373) $ 144,697 $ (203,597) Basic earnings (loss) per share: Continuing operations $ 0.17 $ (0.23) $ 0.84 $ 0.57 Discontinued operations - 0.03 - (1.71) Net income (loss) $ 0.17 $ (0.21) $ 0.84 $ (1.13) Diluted earnings (loss) per share: Continuing operations $ 0.17 $ (0.23) $ 0.84 $ 0.56 Discontinued operations - 0.03 - (1.68) Net income (loss) $ 0.17 $ (0.21) $ 0.84 $ (1.12) Weighted-average shares used in diluted earnings per share 157,534 182,006 173,040 182,526 The sum of the earnings per share amounts may not equal the totals due to rounding.
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Appendix: Financial Information 15 Consolidated Balance Sheets (Unaudited; in thousands) Assets December 31, 2025 December 31, 2024 Current assets: Cash and cash equivalents 284,887 469,726 Short-term investments 12,232 16,374 Accounts and other receivables, net 168,099 159,951 Short-term finance receivables, net 496,446 535,608 Inventories 66,241 59,836 Current income taxes 3,143 10,429 Other current assets and prepayments 69,451 66,030 Total current assets 1,100,499 1,317,954 Property, plant and equipment, net 185,913 218,657 Rental property and equipment, net 24,054 24,587 Long-term finance receivables, net 605,129 610,316 Goodwill 746,687 721,003 Intangible assets, net 14,741 15,780 Operating lease assets 106,996 113,357 Noncurrent income taxes 95,412 99,773 Other assets 289,520 276,089 Total assets $3,168,951 $3,397,516 Liabilities and stockholders' deficit Current liabilities: Accounts payable and accrued liabilities $845,378 $873,626 Customer deposits at Pitney Bowes Bank 582,630 645,860 Current operating lease liabilities 28,396 26,912 Current portion of long-term debt 17,150 53,250 Advance billings 69,075 70,131 Current income taxes 5,210 2,948 Total current liabilities 1,547,839 1,672,727 Long-term debt 1,975,888 1,866,458 Deferred taxes on income 72,665 49,187 Tax uncertainties and other income tax liabilities 278 13,770 Noncurrent operating lease liabilities 99,757 100,804 Noncurrent customer deposits at Pitney Bowes Bank 71,000 57,977 Other noncurrent liabilities 203,884 215,026 Total liabilities 3,971,311 3,975,949 Stockholders' deficit: Common stock 270,338 270,338 Retained earnings 2,655,703 2,671,868 Accumulated other comprehensive loss (789,132) (839,171) Treasury stock, at cost (2,939,269) (2,681,468) Total stockholders' deficit (802,360) (578,433) Total liabilities and stockholders' deficit $3,168,951 $3,397,516
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Appendix: Financial Information 16 Business Segment Revenue (Unaudited; in thousands) Three Months Ended December 31, Year Ended December 31, 2025 2024 % Change 2025 2024 % Change Sending Technology Solutions $317,897 $336,562 (6%) $1,256,001 $1,354,032 (7%) Presort Services 159,728 179,555 (11%) 636,628 662,587 (4%) Total reportable segments 477,625 516,117 (7%) 1,892,629 2,016,619 (6%) Other - 4 (100%) - 9,979 (100%) Total revenue $477,625 $516,121 (7%) $1,892,629 $2,026,598 (7%)
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Appendix: Financial Information 17 Adjusted Segment EBIT & EBITDA (Unaudited; in thousands) Three Months Ended December 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 $ 112,848 $ 10,923 $ 123,771 $ 90,833 $ 12,146 $ 102,979 24% 20% Presort Services 41,932 9,380 51,312 52,228 9,103 61,331 (20%) (16%) Total reportable segments $ 154,780 $ 20,303 175,083 $ 143,061 $ 21,249 164,310 8% 7% Reconciliation of Adjusted Segment EBITDA to income or loss from continuing operations before taxes: Other operations (2) - (677) Depreciation and amortization - reportable segments (20,303) (21,249) Corporate expenses (22,804) (27,946) Restructuring charges (41,618) (12,056) Interest expense, net (36,485) (41,708) Gain (loss) on debt transactions 10,362 (8,750) Pension settlement charge - (91,339) Foreign currency (loss) gain on intercompany loans (710) 23,724 Transaction and Strategic review costs (4,584) (2,820) Charges in connection with Ecommerce Restructuring (20,564) (29,686) Income (loss) from continuing operations before taxes $ 38,377 $ (48,197) (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 d iscontinued operations treatment.
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Appendix: Financial Information 18 Adjusted Segment EBIT & EBITDA (Unaudited; in thousands) Year Ended December 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 $ 412,189 $ 45,525 $ 457,714 $ 384,751 $ 45,867 $ 430,618 7% 6% Presort Services 165,277 37,029 202,306 165,784 35,825 201,609 (0%) 0% Total reportable segments $ 577,466 $ 82,554 660,020 $ 550,535 $ 81,692 632,227 5% 4% Reconciliation of Adjusted Segment EBITDA to income or loss from continuing operations before taxes: Other operations (2) - (12,821) Depreciation and amortization - reportable segments (82,554) (81,692) Corporate expenses (116,173) (152,503) Restructuring charges (58,392) (76,915) Interest expense, net (149,156) (173,694) Loss on debt transactions (14,072) (10,892) Pension settlement charge - (91,339) Goodwill impairment - - Foreign currency (loss) gain on intercompany loans (21,944) 10,243 Transaction and Strategic review costs (12,179) (17,110) Impairment charge (268) (10,000) Charges in connection with Ecommerce Restructuring (12,758) (67,831) Income (loss) from continuing operations before taxes $ 192,524 $ (52,327) Loss from discontinued operations, net of tax - (306,099) Net loss $ 192,524 $ (358,426) (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.
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Appendix: Financial Information 19 Reconciliation of Reported Consolidated Results to Adjusted Results (Unaudited; in thousands, except per share amounts) Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 Reconciliation of reported net income (loss) to adjusted net income, adjusted EBIT and adjusted EBITDA Net income (loss) - GAAP $27,337 ($37,373) $144,697 ($203,597) (Income) loss from discontinued operations, net of tax - (4,690) - 306,099 Provision (benefit) for income taxes 11,040 (6,134) 47,827 (154,829) Income (loss) from continuing operations before taxes 38,377 (48,197) 192,524 (52,327) Restructuring charges 41,618 12,056 58,392 76,915 Pension settlement charge - 91,339 - 91,339 Foreign currency loss (gain) on intercompany loans 710 (23,724) 21,944 (10,243) Transaction and Strategic review costs 4,584 2,820 12,179 17,110 Impairment charge - - 268 10,000 Charges in connection with Ecommerce Restructuring 20,564 29,686 12,758 67,831 (Gain) loss on debt transactions (10,362) 8,750 14,072 10,892 Adjusted net income before tax 95,491 72,730 312,137 211,517 Adjusted tax provision 25,255 14,322 77,743 61,254 Adjusted net income $70,236 $58,408 $234,394 $150,263 Adjusted net income before tax $95,491 $72,730 $312,137 $211,517 Interest, net 36,485 41,708 149,156 173,694 Adjusted EBIT 131,976 114,438 461,293 385,211 Depreciation and amortization 27,072 28,588 111,575 114,485 Adjusted EBITDA $159,048 $143,026 $572,868 $499,696 Reconciliation of reported diluted earnings (loss) per share to adjusted diluted earnings per share Diluted earnings (loss) per share - GAAP $0.17 ($0.21) $0.84 # ($1.12) (Income) loss from discontinued operations, net of tax - (0.03) - 1.68 Restructuring charges 0.20 0.05 0.25 0.32 Pension settlement charge - 0.37 - 0.37 Foreign currency loss (gain) on intercompany loans 0.00 (0.10) 0.10 (0.04) Transaction and Strategic review costs 0.02 0.01 0.05 0.07 (Gain) loss on debt transactions (0.05) 0.04 0.06 0.05 Charges in connection with Ecommerce Restructuring 0.10 0.12 0.06 0.28 Asset impairment charge - - - 0.06 Tax on settlement of investment securities - 0.05 - 0.05 Tax benefit from affiliate reorganization - - - (0.90) Adjusted diluted earnings per share $0.45 $0.32 $1.35 $0.82 Reconciliation of reported net cash from operating activities to free cash flow Net cash from operating activities - continuing operations $221,699 $131,837 $383,257 $276,452 Capital expenditures (20,251) (22,182) (66,278) (72,403) Restructuring payments 10,495 32,104 41,338 86,024 Free cash flow $211,943 $141,759 $358,317 $290,073
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