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. EPS1

$0.42

 

$0.31

 

$0.11

 

35%

GAAP Net Income

$53

 

$52

 

$1

 

1%

Adj. EBIT1

$114

 

$107

 

$7

 

6%

Cash from Operations

$151

 

$67

 

$84

 

126%

Adj. Free Cash Flow1

$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

 

 

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