☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
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:
27 Waterview Drive,
Shelton,
Connecticut
06484
Telephone Number:
(203)
922-4000
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 21, 2026, 137,090,212 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,
2026
2025
2026
2025
Revenue:
Services
$
284,517
$
290,423
$
591,087
$
608,855
Products
87,523
90,880
176,173
184,070
Financing and other
79,458
80,606
161,651
162,404
Total revenue
451,498
461,909
928,911
955,329
Costs and expenses:
Cost of services
155,356
144,240
311,511
300,113
Cost of products
41,442
54,487
90,122
105,406
Cost of financing and other
12,424
15,656
25,219
33,163
Selling, general and administrative
128,746
170,542
262,123
336,457
Research and development
3,383
3,601
7,177
8,364
Restructuring charges
3,337
13,806
8,449
15,206
Interest expense, net
28,580
24,937
54,572
49,207
Other components of net pension and postretirement cost
12,256
1,947
23,290
3,801
Other expense (income)
483
(6,578)
483
17,609
Total costs and expenses
386,007
422,638
782,946
869,326
Income before taxes
65,491
39,271
145,965
86,003
Provision for income taxes
15,583
9,296
37,919
20,606
Net income
$
49,908
$
29,975
$
108,046
$
65,397
Basic net income per share
$
0.37
$
0.17
$
0.76
$
0.36
Diluted net income per share
$
0.36
$
0.17
$
0.75
$
0.36
`
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,
2026
2025
2026
2025
Net income
$
49,908
$
29,975
$
108,046
$
65,397
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax of $85, $238, $(22) and $333, respectively
(6,160)
41,459
(15,386)
61,008
Net unrealized gain (loss) on investment securities, net of tax of $74, $221, $(75) and $1,161, respectively
237
703
(239)
3,698
Amortization of pension and postretirement costs, net of tax of $2,435, $1,699, $4,912 and $3,365, respectively
7,796
5,137
14,331
10,189
Other comprehensive income (loss), net of tax
1,873
47,299
(1,294)
74,895
Comprehensive income
$
51,781
$
77,274
$
106,752
$
140,292
See Notes to Condensed Consolidated Financial Statements
4
PITNEY BOWES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands, except per share amount)
June 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents (includes $14,982 and $38,851, respectively, reported at fair value)
$
266,833
$
284,887
Short-term investments (includes $1,724 and $1,715, respectively, reported at fair value)
11,920
12,232
Accounts and other receivables (net of allowance of $6,136 and $7,507, respectively)
147,898
168,099
Short-term finance receivables (net of allowance of $10,322 and $14,206, respectively)
468,702
496,446
Inventories
62,880
66,241
Current income taxes
2,419
3,143
Other current assets and prepayments (net of allowance of $10,466 in both 2026 and 2025)
79,223
69,451
Total current assets
1,039,875
1,100,499
Property, plant and equipment, net
175,555
185,913
Rental property and equipment, net
22,526
24,054
Long-term finance receivables (net of allowance of $6,524 and $4,370 respectively)
550,602
605,129
Goodwill
740,417
746,687
Intangible assets, net
12,949
14,741
Operating lease assets
103,268
106,996
Noncurrent income taxes
89,953
95,412
Other assets (includes $181,188 and $185,111, respectively, reported at fair value)
284,440
289,520
Total assets
$
3,019,585
$
3,168,951
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities
$
743,248
$
845,378
Customer deposits at Pitney Bowes Bank
546,503
582,630
Current operating lease liabilities
29,935
28,396
Current portion of long-term debt
23,138
17,150
Advance billings
71,689
69,075
Current income taxes
3,122
5,210
Total current liabilities
1,417,635
1,547,839
Long-term debt
2,010,756
1,975,888
Deferred taxes on income
97,581
72,665
Tax uncertainties and other income tax liabilities
161
278
Noncurrent operating lease liabilities
93,825
99,757
Noncurrent customer deposits at Pitney Bowes Bank
71,000
71,000
Other noncurrent liabilities
191,906
203,884
Total liabilities
3,882,864
3,971,311
Commitments and contingencies (See Note 13)
Stockholders’ deficit:
Common stock, $1 par value (480,000 shares authorized; 270,338 shares issued)
270,338
270,338
Retained earnings
2,698,586
2,655,703
Accumulated other comprehensive loss
(790,426)
(789,132)
Treasury stock, at cost (133,283 and 119,634 shares, respectively)
(3,041,777)
(2,939,269)
Total stockholders’ deficit
(863,279)
(802,360)
Total liabilities and stockholders’ deficit
$
3,019,585
$
3,168,951
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,
2026
2025
Cash flows from operating activities:
Net income
$
108,046
$
65,397
Adjustments to reconcile net income or loss to net cash from operating activities:
Depreciation and amortization
49,328
57,086
Allowance for credit losses
4,529
5,161
Change in allowance for DIP Facility
—
(8,024)
Stock-based compensation
13,072
12,287
Amortization of debt fees
3,977
3,599
Loss on debt redemption/refinancing
1,116
24,364
Restructuring charges
8,449
15,206
Restructuring payments
(28,898)
(21,518)
Loss on disposal of assets
6,750
5,430
(Gain) loss on revaluation of intercompany loans
(5,771)
24,624
Other, net
9,818
(11,556)
Changes in operating assets and liabilities, net of acquisitions/divestitures:
Accounts and other receivables
17,602
4,820
Finance receivables
71,746
71,202
Inventories
3,124
(17,705)
Other current assets and prepayments
(8,622)
(5,356)
Accounts payable and accrued liabilities
(84,114)
(142,328)
Current and noncurrent income taxes
23,654
8,706
Advance billings
3,266
3,314
Net cash from operating activities
197,072
94,709
Cash flows from investing activities:
Capital expenditures
(34,331)
(30,230)
Purchases of investment securities
(7,041)
(7,603)
Proceeds from sales/maturities of investment securities
11,060
18,530
Net investment in loan receivables
3,362
(61,650)
DIP Facility reimbursement
—
8,024
Acquisition
—
(2,200)
Other investing activities, net
233
1,029
Net cash from investing activities
(26,717)
(74,100)
Cash flows from financing activities:
Borrowings under revolving credit facility
96,700
—
Proceeds from the issuance of debt
300,000
775,000
Principal payments of debt
(356,073)
(804,442)
Premiums and fees paid to redeem/refinance debt
(5,651)
(20,598)
Dividends paid to stockholders
(26,891)
(23,606)
Customer deposits at Pitney Bowes Bank
(36,127)
(42,923)
Proceeds from stock option exercise
36,384
7,344
Common stock repurchases
(188,446)
(90,274)
Other financing activities, net
(7,403)
(8,993)
Net cash from financing activities
(187,507)
(208,492)
Effect of exchange rate changes on cash and cash equivalents
(902)
3,334
Change in cash and cash equivalents
(18,054)
(184,549)
Cash and cash equivalents at beginning of period
284,887
469,726
Cash and cash equivalents at end of period
$
266,833
$
285,177
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", "our", or "the company") 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.
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, 2025 Condensed Consolidated Balance Sheet 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, 2026. 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/A for the year ended December 31, 2025 (2025 Annual Report).
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 was not material to the consolidated financial statements for any interim or annual periods prior to 2025 and was not material to the 2025 annual period.
Accounting Pronouncements Adopted in 2026
In the first quarter of 2026, we adopted Financial Accounting Standards Board ("FASB") ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, and elected the practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on those assets. The adoption of this standard did not have a material impact on our financial statements.
Accounting Pronouncements Not Yet Adopted
In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans, which updates the accounting for certain acquired seasoned loans subject to the current expected credit loss model. This standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2026, with early adoption permitted. We do not expect this standard to have a material impact on our financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which updates the timing of recognition for internal-use software costs. This standard is effective for fiscal years beginning after December 15, 2027, 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 financial statements.
In November 2024, the 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 expense categories 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. The adoption of this standard will not have any impact on our financial statements but will result in additional 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, 2026
SendTech Solutions
Presort Services
Revenue from services and products
Revenue from leasing transactions and financing
Total consolidated revenue
Major service/product lines
Services
$
141,949
$
142,568
$
284,517
$
—
$
284,517
Products
49,240
—
49,240
38,283
87,523
Financing and other
—
—
—
79,458
79,458
Subtotal
191,189
142,568
333,757
$
117,741
$
451,498
Revenue from leasing transactions and financing
117,741
—
117,741
Total revenue
$
308,930
$
142,568
$
451,498
Timing of revenue recognition from services and products
Services/products transferred at a point in time
$
62,630
$
—
$
62,630
Services/products transferred over time
128,559
142,568
271,127
Total
$
191,189
$
142,568
$
333,757
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
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, 2026
SendTech Solutions
Presort Services
Revenue from services and products
Revenue from leasing transactions and financing
Total consolidated revenue
Major service/product lines
Services
$
285,053
$
306,034
$
591,087
$
—
$
591,087
Products
101,812
—
101,812
74,361
176,173
Financing and other
—
—
—
161,651
161,651
Subtotal
386,865
306,034
692,899
$
236,012
$
928,911
Revenue from leasing transactions and financing
236,012
—
236,012
Total revenue
$
622,877
$
306,034
$
928,911
Timing of revenue recognition from services and products
Services/products transferred at a point in time
$
128,177
$
—
$
128,177
Services/products transferred over time
258,688
306,034
564,722
Total
$
386,865
$
306,034
$
692,899
Six Months Ended June 30, 2025
SendTech Solutions
Presort Services
Revenue from products and services
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
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, fees and income and losses from investment activity at the Pitney Bowes Bank.
Advance Billings
Balance sheet location
June 30, 2026
December 31, 2025
Increase/ (decrease)
Advance billings, current
Advance billings
$
60,539
$
63,528
$
(2,989)
Advance billings, noncurrent
Other noncurrent liabilities
$
85
$
102
$
(17)
Advance billings from contracts with customers 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 service agreements on mailing equipment. Revenue recognized during the period includes $42 million of advance billings at the beginning of the period. Current advance billings at June 30, 2026 and December 31, 2025 does not include $11 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 2026
2027
2028-2031
Total
SendTech Solutions
$
153,586
$
207,173
$
275,780
$
636,539
These amounts 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 mailing and shipping 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, First Class Flats, Marketing Mail and Marketing Mail Flats/Bound Printed Matter for postal worksharing discounts.
Management, including the 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. Effective January 1, 2026, we are excluding from Adjusted segment EBIT, pension expense related to U.S. and Canada pension plans that we have taken steps to terminate. Prior periods were not recast. Management believes that adjusted segment EBIT provides 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. Information about our reportable segments is shown in the tables below.
Revenue
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
SendTech Solutions
$
308,930
$
311,716
$
622,877
$
627,322
Presort Services
142,568
150,193
306,034
328,007
Total revenue
$
451,498
$
461,909
$
928,911
$
955,329
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
SendTech Solutions
Revenue
$
308,930
$
311,716
$
622,877
$
627,322
Less:
Cost of revenue
95,098
105,653
197,122
211,683
Operating expenses
91,154
104,808
189,547
217,357
Adjusted segment EBIT
$
122,678
$
101,255
$
236,208
$
198,282
Presort Services
Revenue
$
142,568
$
150,193
$
306,034
$
328,007
Less:
Cost of revenue
105,099
96,153
211,119
200,787
Operating expenses
17,463
18,100
35,731
36,501
Adjusted segment EBIT
$
20,006
$
35,940
$
59,184
$
90,719
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,
2026
2025
2026
2025
SendTech Solutions
$
122,678
$
101,255
$
236,208
$
198,282
Presort Services
20,006
35,940
59,184
90,719
Total adjusted segment EBIT
142,684
137,195
295,392
289,001
Reconciliation of adjusted segment EBIT to income or loss before taxes:
Interest expense, net
(37,608)
(37,499)
(73,183)
(75,384)
Corporate expenses
(26,631)
(34,902)
(48,962)
(67,019)
Restructuring charges
(3,337)
(13,806)
(8,449)
(15,206)
(Loss) gain on debt redemption/refinancing
(1,116)
282
(1,116)
(24,364)
Foreign currency gain (loss) on intercompany loans
889
(17,029)
5,771
(24,624)
Benefit in connection with Ecommerce Restructuring
633
6,296
633
6,755
Pension expense of plans to be terminated
(8,422)
—
(15,976)
—
Transaction and Strategic review costs
(1,601)
(1,266)
(8,145)
(3,156)
Income before taxes
$
65,491
$
39,271
$
145,965
$
86,003
4. Earnings per Share (EPS)
The calculation of basic and diluted EPS is presented below.
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Numerator:
Net income
$
49,908
$
29,975
$
108,046
$
65,397
Denominator:
Weighted-average shares used in basic EPS
136,685
179,708
142,196
181,115
Dilutive effect of common stock equivalents
2,358
1,297
1,668
1,593
Weighted-average shares used in diluted EPS
139,043
181,005
143,864
182,708
Basic net income per share
$
0.37
$
0.17
$
0.76
$
0.36
Diluted net income per share
$
0.36
$
0.17
$
0.75
$
0.36
Common stock equivalents excluded from calculation of diluted earnings per share because their impact would be anti-dilutive:
Stock-based compensation awards
460
4,646
1,900
4,646
Convertible senior notes
—
—
8,068
—
Total
460
4,646
9,968
4,646
12
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
5. 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, 2026
December 31, 2025
Raw materials
$
26,694
$
28,967
Supplies and service parts
16,139
16,359
Finished products
20,047
20,915
Total inventories
$
62,880
$
66,241
6. 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' 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, 2026
December 31, 2025
North America
International
Total
North America
International
Total
Sales-type lease receivables
Gross finance receivables
$
831,762
$
98,393
$
930,155
$
870,453
$
114,080
$
984,533
Unguaranteed residual values
31,953
5,271
37,224
33,047
6,063
39,110
Unearned income
(256,648)
(28,665)
(285,313)
(255,754)
(34,736)
(290,490)
Allowance for credit losses
(9,169)
(1,736)
(10,905)
(10,281)
(1,947)
(12,228)
Net investment in sales-type lease receivables
597,898
73,263
671,161
637,465
83,460
720,925
Loan receivables
Loan receivables
351,011
3,073
354,084
384,846
2,152
386,998
Allowance for credit losses
(5,924)
(17)
(5,941)
(6,334)
(14)
(6,348)
Net investment in loan receivables
345,087
3,056
348,143
378,512
2,138
380,650
Net investment in finance receivables
$
942,985
$
76,319
$
1,019,304
$
1,015,977
$
85,598
$
1,101,575
Maturities of gross finance receivables at June 30, 2026 were as follows:
Sales-type Lease Receivables
Loan Receivables
North America
International
Total
North America
International
Total
Remainder 2026
$
174,324
$
29,870
$
204,194
$
189,037
$
3,073
$
192,110
2027
289,416
31,336
320,752
68,294
—
68,294
2028
195,250
20,106
215,356
50,017
—
50,017
2029
111,242
10,742
121,984
31,061
—
31,061
2030
51,543
4,888
56,431
10,948
—
10,948
Thereafter
9,987
1,451
11,438
1,654
—
1,654
Total
$
831,762
$
98,393
$
930,155
$
351,011
$
3,073
$
354,084
13
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, 2026
Sales-type Lease Receivables
Loan Receivables
North America
International
North America
International
Total
Past due amounts 0 - 90 days
$
823,840
$
97,533
$
347,458
$
2,695
$
1,271,526
Past due amounts > 90 days
7,922
860
3,553
378
12,713
Total
$
831,762
$
98,393
$
351,011
$
3,073
$
1,284,239
December 31, 2025
Sales-type Lease Receivables
Loan Receivables
North America
International
North America
International
Total
Past due amounts 0 - 90 days
$
861,059
$
111,809
$
382,697
$
1,746
$
1,357,311
Past due amounts > 90 days
9,394
2,271
2,149
406
14,220
Total
$
870,453
$
114,080
$
384,846
$
2,152
$
1,371,531
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, 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 the account is deemed 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, 2026
$
10,281
$
1,947
$
6,334
$
14
$
18,576
Amounts charged to expense
(424)
(29)
2,846
(5)
2,388
Write-offs
(1,985)
(235)
(3,690)
(17)
(5,927)
Recoveries
1,314
79
437
—
1,830
Other
(17)
(26)
(3)
25
(21)
Balance at June 30, 2026
$
9,169
$
1,736
$
5,924
$
17
$
16,846
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
14
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.
Six Months Ended June 30, 2026
Sales Type Lease Receivables
Loan Receivables
Total
2026
2025
2024
2023
2022
Prior
Write-offs
$
155
$
366
$
403
$
632
$
385
$
279
$
3,707
$
5,927
Six Months Ended 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
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.
Substantially all 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 subjected to an automated review process. Credit applications that are manually reviewed include obtaining client financial information, credit reports and other available financial information.
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.
15
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
June 30, 2026
Sales Type Lease Receivables
Loan Receivables
Total
2026
2025
2024
2023
2022
Prior
Low
$
72,382
$
135,203
$
133,151
$
126,609
$
77,626
$
132,836
$
309,757
$
987,564
Medium
13,791
24,985
24,574
21,273
14,120
20,247
24,372
143,362
High
3,576
4,200
4,559
3,894
2,913
3,421
6,842
29,405
Not Scored
29,492
25,865
21,379
15,190
11,501
7,368
13,113
123,908
Total
$
119,241
$
190,253
$
183,663
$
166,966
$
106,160
$
163,872
$
354,084
$
1,284,239
December 31, 2025
Sales Type Lease Receivables
Loan Receivables
Total
2025
2024
2023
2022
2021
Prior
Low
$
150,688
$
153,596
$
153,844
$
106,037
$
76,774
$
76,956
$
336,943
$
1,054,838
Medium
27,793
28,927
27,310
18,950
12,719
12,754
29,701
158,154
High
2,798
2,974
2,555
2,076
1,214
1,451
4,998
18,066
Not Scored
49,845
32,817
23,710
12,157
4,531
2,057
15,356
140,473
Total
$
231,124
$
218,314
$
207,419
$
139,220
$
95,238
$
93,218
$
386,998
$
1,371,531
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,
2026
2025
2026
2025
Profit recognized at commencement
$
24,328
$
18,062
$
43,066
$
37,818
Interest income
37,206
38,237
74,563
76,000
Total lease income from sales-type leases
$
61,534
$
56,299
$
117,629
$
113,818
Lessor Operating Leases
We lease mailing equipment under operating leases with terms of one to five years. Revenue from operating leases for both the three months ended June 30, 2026 and 2025 was $14 million, and revenue from operating leases for both the six months ended June 30, 2026 and 2025 was $29 million. Maturities of operating leases are as follows:
Remainder 2026
$
12,369
2027
22,351
2028
10,979
2029
7,327
2030
3,825
Thereafter
1,176
Total
$
58,027
16
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
7. Intangible Assets and Goodwill
Intangible Assets
Intangible assets consisted of the following:
June 30, 2026
December 31, 2025
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Customer relationships
$
32,032
$
(20,092)
$
11,940
$
32,032
$
(18,490)
$
13,542
Software & technology
1,230
(221)
1,009
1,230
(31)
1,199
Total intangible assets
$
33,262
$
(20,313)
$
12,949
$
33,262
$
(18,521)
$
14,741
Amortization expense was $1 million for both the three months ended June 30, 2026 and 2025 and $2 million for both the six months ended June 30, 2026 and 2025.
Future amortization expense as of June 30, 2026 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 2026
$
1,602
2027
3,212
2028
3,189
2029
1,789
2030
939
Thereafter
2,218
Total
$
12,949
Goodwill
Changes in the carrying value of goodwill by reporting segment are shown in the table below.
December 31, 2025
Currency impact
June 30, 2026
SendTech Solutions
$
522,924
$
(6,270)
$
516,654
Presort Services
223,763
—
223,763
Total goodwill
$
746,687
$
(6,270)
$
740,417
17
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
8. 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. The 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 the financial assets and liabilities accounted for at fair value on a recurring basis by level within the fair value hierarchy.
June 30, 2026
Level 1
Level 2
Level 3
Total
Assets:
Money market funds
$
23,665
$
—
$
—
$
23,665
Mutual funds
11,721
—
—
11,721
Government securities
116
13,617
—
13,733
Corporate debt securities
—
43,265
—
43,265
Mortgage-backed securities
—
85,560
—
85,560
Asset-backed securities
—
19,950
—
19,950
Total assets
$
35,502
$
162,392
$
—
$
197,894
Liabilities:
Deferred compensation obligations
$
—
$
12,790
$
—
$
12,790
Total liabilities
$
—
$
12,790
$
—
$
12,790
December 31, 2025
Level 1
Level 2
Level 3
Total
Assets:
Money market funds
$
47,239
$
—
$
—
$
47,239
Mutual funds
11,852
—
—
11,852
Government securities
120
13,366
—
13,486
Corporate debt securities
—
43,895
—
43,895
Mortgage-backed securities
—
89,002
—
89,002
Asset-backed securities
—
20,203
—
20,203
Total assets
$
59,211
$
166,466
$
—
$
225,677
Liabilities:
Deferred compensation obligations
$
—
$
13,741
$
—
$
13,741
Total liabilities
$
—
$
13,741
$
—
$
13,741
18
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
The valuation of financial assets and liabilities 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:
Assets
•Money Market Funds: Money market funds typically invest in securities issued by the U.S. government and its agencies and other highly liquid, low risk securities. The fair value of money market funds is based on the net asset value as reported daily by the underlying money market fund and serves as the basis for subscriptions and redemptions. Accordingly, money market funds are classified as Level 1.
•Mutual Funds: Comprised of mutual funds investing in equity securities of U.S. and foreign companies and a variety of fixed income securities. Mutual fund investments are primarily held in our deferred compensation plan (see Deferred Compensation Obligation below). The fair value of mutual funds is based on the net asset value as reported daily by the underlying mutual fund and serves as the basis for subscriptions and redemptions. Accordingly, mutual funds are classified as Level 1.
•Government Securities: Government securities consist primarily of municipal bonds and U.S. agency securities. Government securities are classified as Level 1 when unadjusted quoted prices in active markets are available and as Level 2 when fair value is determined using quoted market prices for similar securities or by benchmarking models which derive prices based on observable transactions for 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. Accordingly, these securities are classified as Level 2.
•Mortgage-Backed Securities: Comprised of U.S Government agency mortgage-backed securities issued by the Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), Governmental National Mortgage Association (Ginnie Mae), and the Federal Housing Administration and commercial mortgage-backed securities. Fair value for these securities is determined based on prices of comparable securities, external pricing indices or external price/spread data. Accordingly, these securities are classified as Level 2.
•Asset-Backed Securities: Asset-backed securities are classified as Level 2 as fair value for these securities is determined based on prices of comparable securities, external pricing indices or external price/spread data.
Liabilities
•Deferred Compensation Obligation: we offer a deferred compensation plan that allows certain eligible employees to defer a portion of their variable compensation annually and invest their deferred compensation among a variety of investment options. The deferred compensation obligation represents the aggregate value of the participants' accounts at the end of the reporting period. The fair value of the deferred compensation obligation is determined based on the underlying asset values and is classified as Level 2. The deferred compensation obligation is reported in accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheet.
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 three months ended June 30, 2026 or 2025.
Available-for-sale securities consisted of the following:
June 30, 2026
Amortized cost
Gross unrealized gains
Gross unrealized losses
Estimated fair value
Mutual funds
$
1,913
$
—
$
(189)
$
1,724
Government securities
18,956
—
(5,223)
13,733
Corporate debt securities
49,083
—
(5,818)
43,265
Mortgage-backed securities
104,353
—
(18,793)
85,560
Asset-backed securities
19,951
20
(21)
19,950
Total
$
194,256
$
20
$
(30,044)
$
164,232
19
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
December 31, 2025
Amortized cost
Gross unrealized gains
Gross unrealized losses
Estimated fair value
Mutual funds
$
1,886
$
—
$
(171)
$
1,715
Government securities
19,043
—
(5,557)
13,486
Corporate debt securities
49,481
—
(5,586)
43,895
Mortgage-backed securities
107,652
—
(18,650)
89,002
Asset-backed securities
19,947
256
—
20,203
Total
$
198,009
$
256
$
(29,964)
$
168,301
The fair value of available-for-sale securities is reported on our Condensed Consolidated Balance Sheet as follows:
June 30, 2026
December 31, 2025
Short-term investments
$
1,724
$
1,715
Other assets
162,508
166,586
Total
$
164,232
$
168,301
Investment securities in a loss position were as follows:
June 30, 2026
December 31, 2025
Fair Value
Gross unrealized losses
Fair Value
Gross unrealized losses
Greater than 12 continuous months
Mutual funds
$
1,724
$
189
$
1,715
$
171
Government securities
13,733
5,223
13,486
5,557
Corporate debt securities
43,265
5,818
43,895
5,586
Mortgage-backed securities
85,560
18,793
89,002
18,650
Total
$
144,282
$
30,023
$
148,098
$
29,964
Less than 12 continuous months
Asset-backed securities
$
4,968
$
21
$
—
$
—
Total
$
4,968
$
21
$
—
$
—
At June 30, 2026, 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 and expect to receive the stated principal and interest at maturity.
Scheduled maturities of available-for-sale securities at June 30, 2026 were as follows:
Amortized cost
Estimated fair value
Within 1 year
$
1,913
$
1,724
After 1 year through 5 years
37,172
33,657
After 5 years through 10 years
28,985
27,914
After 10 years
126,186
100,937
Total
$
194,256
$
164,232
Actual maturities may not coincide with scheduled maturities as certain securities contain early redemption features and/or allow for the prepayment of obligations.
20
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
Held-to-Maturity Securities
The carrying value and fair value of investments classified as held-to-maturity is as follows:
June 30, 2026
December 31, 2025
Carrying value
Fair value
Carrying value
Fair value
Government securities
$
21,284
$
21,151
$
19,865
$
19,787
Other
4,367
4,082
4,408
4,134
Total
$
25,651
$
25,233
$
24,273
$
23,921
The carrying value of held-to-maturity securities is reported on our Condensed Consolidated Balance Sheet as follows:
June 30, 2026
December 31, 2025
Short-term investments
$
10,197
$
10,522
Other assets
15,454
13,751
Total
$
25,651
$
24,273
Scheduled maturities of held-to-maturity securities at June 30, 2026 were as follows:
Carrying value
Fair value
Within 1 year
$
10,197
$
10,087
After 1 year through 5 years
9,390
9,385
After 10 years
6,064
5,761
Total
$
25,651
$
25,233
Fair Value of Financial Instruments
Our financial instruments include cash equivalents, accounts receivables, finance receivables, accounts payable and debt. The carrying values of cash equivalents, accounts receivables, finance receivables and accounts payable approximate fair value. The inputs used to estimate fair value of cash equivalents, accounts receivables, finance receivables and accounts payable were Level 2.
The inputs used to estimate the fair value of debt were Level 2 and included recently executed transactions and market price quotations.
June 30, 2026
December 31, 2025
Carrying value
$
2,033,894
$
1,993,038
Fair value
$
1,968,425
$
1,954,304
21
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
9. Restructuring Charges
Activity in our restructuring reserves was as follows:
2025 Plan
2024 Plan
Total
Balance at January 1, 2026
$
30,040
$
1,793
$
31,833
Amounts charged to expense
8,449
—
8,449
Cash payments
(27,105)
(1,793)
(28,898)
Balance at June 30, 2026
$
11,384
$
—
$
11,384
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
Components of restructuring expense were as follows:
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
2025 Plan
2024 Plan
Severance
$
3,337
$
12,978
Facilities and other
—
828
Total
$
3,337
$
13,806
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
2025 Plan
2024 Plan
Severance
$
8,427
$
13,810
Facilities and other
22
1,396
Total
$
8,449
$
15,206
The 2025 Plan was completed at the end of the second quarter of 2026. Under the 2025 Plan, we eliminated approximately 550 positions and incurred cumulative charges of $45 million.
22
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
10. Debt
Total debt consisted of the following:
Interest rate
June 30, 2026
December 31, 2025
Notes due March 2027
6.875%
$
—
$
346,700
Notes due March 2029
7.25%
476,000
326,000
Convertible Notes due August 2030
1.50%
230,000
230,000
Term loan due March 2031
SOFR + 2.10%
298,225
154,000
Term loan due March 2032
SOFR + 3.75%
585,492
588,567
Notes due January 2037
5.25%
31,143
31,666
Notes due March 2043
6.70%
349,279
349,279
Revolving Credit Facility
SOFR + 2.10%
96,700
—
Principal amount
2,066,839
2,026,212
Less: unamortized costs, net
32,945
33,174
Total debt
2,033,894
1,993,038
Less: current portion long-term debt
23,138
17,150
Long-term debt
$
2,010,756
$
1,975,888
In the first quarter of 2026, we issued an additional aggregate $150 million of the Notes due March 2029 with identical terms to the prior notes outstanding. In the second quarter of 2026, we borrowed an additional $150 million under the Term Loan due March 2028 and extended the maturity date to March 2031. The proceeds of the additional term loan borrowing were used to repay the Notes due March 2027.
We have access to a $450 million revolving credit facility (increased from $400 million in the first quarter of 2026). In the second quarter of 2026, we further amended the revolving credit facility to extend the maturity date to March 2031 and updated certain covenants. This credit facility requires that we maintain (with maintenance tested quarterly) (i) a Consolidated Interest Coverage Ratio (as defined in the credit facility agreement) of not less than 2.00 to 1.00, (ii) a Consolidated Secured Net Leverage Ratio (as defined in the credit facility agreement) of no greater than 3.00 to 1.00 and (iii) a Consolidated Total Net Leverage Ratio (as defined in the credit facility agreement) of no greater than (a) 4.75 to 1.00 for the fiscal quarters ending June 30, 2026, September 30, 2026 and December 31, 2026, (b) 4.50 to 1.00 for the fiscal quarters ending March 31, 2027, June 30, 2027, September 30, 2027 and December 31, 2027, (c) 4.25 to 1.00 for the fiscal quarters ending March 31, 2028, June 30, 2028, September 30, 2028 and December 31, 2028 and (d) 4.00 to 1.00 for each fiscal quarter ending on or after March 31, 2029. At June 30, 2026, we were in compliance with these financial covenants. During the quarter, we borrowed $97 million under this credit facility, which was outstanding at June 30, 2026. At July 30, 2026, this amount has been fully repaid. At June 30, 2026, we have remaining borrowing capacity of $330 million. Borrowings under this credit facility are secured by assets of the Company.
The credit facility also contains provisions whereby if, on any day prior to December 14, 2028, the Notes due March 2029 have not been redeemed in full and liquidity is less than an amount equal to the amount to redeem the Notes due March 2029 plus $100 million, the Term loan due March 2031 and any borrowings under the revolving credit facility would become due on such date. Further, if on any day prior to May 16, 2030, the Convertible Notes due August 2030 have not been redeemed in full and liquidity is less than an amount equal to the amount to redeem the Convertible Notes due August 2030 plus $100 million, the Term loan due March 2031 and any borrowings under the revolving credit facility would become due on such date.
We have outstanding an aggregate $230 million convertible senior notes (the "Convertible Notes"). Prior to May 15, 2030, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and, thereafter, the Convertible Notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The conversion rate is 70.3835 shares of common stock per $1,000 principal amount, or $14.21 per share, subject to adjustment.
The Convertible Notes may be converted by the bondholders at any time if the last reported sale price of the Company’s Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period).
We may not redeem the Convertible Notes prior to August 21, 2028. On or after August 21, 2028, we may redeem for cash all or any portion of the Convertible Notes, at our option, if the last reported sale price of the Company’s Common Stock has been at least 130%
23
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest.
If the Company undergoes a fundamental change (as defined in the Indenture), subject to certain conditions, holders may require that we repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100% of the principal amount to be repurchased, plus accrued and unpaid interest. In addition, if a make-whole fundamental change (as defined in the Indenture) occurs, or if we send a notice of redemption, we may be required to increase the conversion rate for any Convertible Notes converted in connection with such make-whole fundamental change or notice of redemption by a specified number of shares of its Common Stock.
The Convertible Notes are senior unsecured obligations of the Company and are guaranteed jointly and severally, on a senior unsecured basis, by each of the Company’s existing and future wholly owned U.S. subsidiaries that guarantee the Company’s existing credit agreement, existing senior notes or any other series of capital market debt with an aggregate principal amount outstanding in excess of $150 million.
Conversions of the Convertible Notes will be settled by paying cash up to the aggregate principal amount of the Convertible Notes being converted and by delivering shares of our common stock in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted.
In connection with the Convertible Notes offering, we entered into privately negotiated capped call transactions (the "Capped Call Transactions") with certain of the initial purchasers or their respective affiliates and certain other financial institutions. The Capped Call Transactions are expected to reduce the potential dilution of our common stock upon conversion of any Convertible Notes.
Number of shares covered, subject to certain adjustments
16,188
Strike price, subject to certain adjustments
$14.21
Cap price, subject to certain adjustments
$22.29
24
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
11. Pensions and Other Benefit Programs
The components of net periodic benefit 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,
2026
2025
2026
2025
2026
2025
Service cost
$
—
$
7
$
243
$
291
$
59
$
70
Interest cost
12,553
13,523
5,926
5,929
942
1,040
Expected return on plan assets
(11,192)
(18,650)
(6,204)
(6,731)
—
—
Amortization of prior service (credit) cost
(5)
(5)
78
78
—
—
Amortization of net actuarial loss (gain)
6,551
5,072
2,733
2,309
(361)
(618)
Settlement
364
—
871
—
—
—
Net periodic benefit cost (income)
$
8,271
$
(53)
$
3,647
$
1,876
$
640
$
492
Contributions to benefit plans
$
1,088
$
1,416
$
342
$
806
$
2,794
$
3,236
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,
2026
2025
2026
2025
2026
2025
Service cost
$
—
$
13
$
490
$
569
$
118
$
140
Interest cost
25,107
27,045
11,886
11,537
1,886
2,078
Expected return on plan assets
(22,383)
(37,300)
(12,449)
(13,113)
—
—
Amortization of prior service (credit) cost
(10)
(10)
157
151
—
—
Amortization of net actuarial loss (gain)
13,102
10,143
5,483
4,492
(724)
(1,222)
Settlement
364
—
871
—
—
—
Net periodic benefit cost (income)
$
16,180
$
(109)
$
6,438
$
3,636
$
1,280
$
996
Contributions to benefit plans
$
2,477
$
3,029
$
6,399
$
8,162
$
5,891
$
6,938
12. Income Taxes
The effective tax rate for the three and six months ended June 30, 2026 is 23.8% and 26.0% respectively, and includes a benefit of $2 million for stock compensation in both periods. 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 stock compensation and a benefit of $2 million for the resolution of tax matters.
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 2022 are closed to audit. With regard to U.S. state and local returns, most jurisdictions are closed through 2019. For our significant non-U.S. jurisdictions, Canada is closed to examination through 2020 except for a specific issue (the issue is in appeals for 2016 and 2017 and under current examination for 2018 and 2019), India is currently under review for 2022 through 2024, and France, Germany and the U.K. are closed through 2019, 2020 and 2023, respectively.
25
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
13. Commitments and Contingencies
From time to time, in the ordinary course of business as well as in connection with our 2024 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.
The Company is involved in a dispute regarding agreements called “Equipment Supplements” with a former vendor for GEC that has resulted in three separate litigations. Trilogy Leasing Co., LLC (“Trilogy”) and its parent company Kingsbridge Holdings, LLC, filed suit against Pitney Bowes Inc. and Pitney Bowes Presort Services, LLC in November 2024, seeking $95 million in lease payments and additional interest and fees. That suit is pending in the Northern District of Illinois. In addition, we had intervened in a case filed against Trilogy in the United States Bankruptcy Court for the Southern District of Texas by one of the GEC Debtors, challenging the amount of damages potentially recoverable by Trilogy. The parties have agreed that this Texas case is now moot and the bankruptcy Court has now dismissed the Texas case for lack of jurisdiction at our request. We have now raised the same arguments against the damage claims in the Illinois action.
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, taking into account established accruals for estimated liabilities.
14. 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, 2026
$
270,338
$
2,689,224
$
(792,299)
$
(3,060,835)
$
(893,572)
Net income
—
49,908
—
—
49,908
Other comprehensive income
—
—
1,873
—
1,873
Dividends paid ($0.10 per common share)
—
(13,572)
—
—
(13,572)
Issuance of common stock
—
(36,768)
—
71,857
35,089
Stock-based compensation expense
—
9,794
—
—
9,794
Repurchase of common stock
—
—
—
(52,799)
(52,799)
Balance at June 30, 2026
$
270,338
$
2,698,586
$
(790,426)
$
(3,041,777)
$
(863,279)
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)
26
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, 2026
$
270,338
$
2,655,703
$
(789,132)
$
(2,939,269)
$
(802,360)
Net income
—
108,046
—
—
108,046
Other comprehensive loss
—
—
(1,294)
—
(1,294)
Dividends paid ($0.19 per common share)
—
(26,891)
—
—
(26,891)
Issuance of common stock
—
(51,344)
—
85,938
34,594
Stock-based compensation expense
—
13,072
—
—
13,072
Repurchase of common stock
—
—
—
(188,446)
(188,446)
Balance at June 30, 2026
$
270,338
$
2,698,586
$
(790,426)
$
(3,041,777)
$
(863,279)
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)
27
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
15. 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,
2026
2025
2026
2025
Available-for-sale securities
Financing and other revenue
$
—
$
—
$
—
$
(505)
Income tax benefit
—
—
—
(126)
Net of tax
$
—
$
—
$
—
$
(379)
Pension and postretirement benefit plans
Prior service costs
$
(73)
$
(73)
$
(147)
$
(141)
Actuarial losses
(8,923)
(6,763)
(17,861)
(13,413)
Settlement
(1,235)
—
(1,235)
—
Total before tax
(10,231)
(6,836)
(19,243)
(13,554)
Income tax benefit
(2,435)
(1,699)
(4,912)
(3,365)
Net of tax
$
(7,796)
$
(5,137)
$
(14,331)
$
(10,189)
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, 2026
$
(22,569)
$
(713,098)
$
(53,465)
$
(789,132)
Other comprehensive loss before reclassifications
(239)
—
(15,386)
(15,625)
Reclassifications into earnings
—
14,331
—
14,331
Net other comprehensive (loss) income
(239)
14,331
(15,386)
(1,294)
Balance at June 30, 2026
$
(22,808)
$
(698,767)
$
(68,851)
$
(790,426)
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)
28
PITNEY BOWES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited; table amounts in thousands unless otherwise noted, except per share amounts)
16. Supplemental Financial Statement Information
Activity in the allowance for credit losses, other than finance receivables (see Note 6 for further information) is presented below.
Six Months Ended June 30,
2026
2025
Balance at beginning of year
$
17,973
$
27,096
Amounts charged to expense
2,141
(5,192)
Write-offs, recoveries and other
(3,512)
(2,902)
Balance at end of period
$
16,602
$
19,002
Accounts and other receivables
$
6,136
$
7,653
Other current assets and prepayments
10,466
11,349
Total
$
16,602
$
19,002
Amounts charged to expense in 2025 includes a credit of $8 million related to a DIP Facility reimbursement.
Interest expense, net
Interest expense, net for the three months ended June 30, 2026 and 2025 includes $2 million and $1 million of interest income, respectively and interest expense, net for the six months ended June 30, 2026 and 2025 includes $4 million and $3 million of interest income, respectively.
Other expense (income)
Other expense (income) is as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Loss (gain) on debt redemption/refinancing
$
1,116
$
(282)
$
1,116
$
24,364
Benefit in connection with Ecommerce Restructuring
(633)
(6,296)
(633)
(6,755)
Other expense (income)
$
483
$
(6,578)
$
483
$
17,609
Supplemental cash flow information is as follows:
Six Months Ended June 30,
2026
2025
Cash interest paid
$
72,188
$
71,923
Cash income tax payments, net
$
13,842
$
11,859
Noncash activity
Capital assets obtained under capital lease obligations
$
6,639
$
1,313
As of June 30, 2026, we have entered into leases with aggregate payments of $3 million and terms ranging from five to six years that have not commenced.
29
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
•periods of difficult economic conditions impacting the company and our clients, including inflation and rising prices, changes in interest rates and a slow-down in economic activity, including a global recession, or a prolonged U.S. government shutdown
•our ability to compete successfully
•changes in banking regulations, major bank failures, the loss of our Industrial Bank charter or limitations on our banking activities
•changes in government contracting regulations and compliance challenges
•changes in labor and transportation availability and costs
•global supply chain issues adversely impacting our third-party suppliers' ability to provide us with products and services
•changes in trade policies, tariffs and regulations
•changes in senior management and Board of Directors, loss of key employees and ability to attract and retain employees
•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 may adversely impact our ability to access capital markets at reasonable costs
•our indebtedness, including Convertible Notes, and the impact of any conversion, repurchase or redemption of the Convertible Notes
•our success at managing customer credit risk
•changes in foreign currency exchange rates
•the risks and uncertainties associated with the Ecommerce Restructuring
•changes in tax rates, laws or regulations
•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
•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 2025 Annual Report, as supplemented by Part II, Item 1A in this Quarterly Report on Form 10-Q.
30
RESULTS OF OPERATIONS
Three Months Ended June 30,
Favorable/(Unfavorable)
2026
2025
% Change
Total revenue
$
451,498
$
461,909
(2)
%
Total cost of revenue
209,222
214,383
2
%
Selling, general and administrative
128,746
170,542
25
%
Research and development
3,383
3,601
6
%
Restructuring charges
3,337
13,806
76
%
Interest expense, net
28,580
24,937
(15)
%
Other components of pension and postretirement cost
12,256
1,947
>(100%)
Other expense (income)
483
(6,578)
>(100%)
Income before taxes
65,491
39,271
67
%
Provision for income taxes
15,583
9,296
(68)
%
Net income
$
49,908
$
29,975
66
%
Six Months Ended June 30,
Favorable/(Unfavorable)
2026
2025
% Change
Total revenue
$
928,911
$
955,329
(3)
%
Total cost of revenue
426,852
438,682
3
%
Selling, general and administrative
262,123
336,457
22
%
Research and development
7,177
8,364
14
%
Restructuring charges
8,449
15,206
44
%
Interest expense, net
54,572
49,207
(11)
%
Other components of pension and postretirement cost
23,290
3,801
>(100%)
Other expense
483
17,609
97
%
Income before taxes
145,965
86,003
70
%
Provision for income taxes
37,919
20,606
(84)
%
Net income
$
108,046
$
65,397
65
%
In the Condensed Consolidated Statements of Operations, we allocate a portion of total interest expense to finance interest expense which is included in Cost of financing and other. The amount of total interest expense allocated to finance interest expense is based on the average outstanding finance receivables and our overall effective interest rate for the period. For segment reporting purposes, finance interest expense is excluded from segment results.
SEGMENT RESULTS
Our segments include SendTech Solutions and Presort Services. Management 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. Segment results exclude interest, including finance interest expense, taxes, corporate expenses, restructuring charges and other items not allocated to the segments.
Effective January 1, 2026, we are excluding from Adjusted segment EBIT expense related to U.S. and Canada pension plans that we have taken steps to terminate. Prior periods were not recast.
31
SendTech Solutions
Within SendTech Solutions, we offer physical and digital shipping and mailing technology solutions and other applications to help companies 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 also offer financing options for the purchase or lease of Pitney Bowes' or other manufacturers’ equipment or to provide working capital. We also offer an unsecured 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.
Financial results for the SendTech Solutions segment was as follows:
Three Months Ended June 30,
Favorable/(Unfavorable)
2026
2025
% change
Services
$
141,949
$
140,230
1
%
Products
87,523
90,880
(4)
%
Financing and other
79,458
80,606
(1)
%
Total revenue
308,930
311,716
(1)
%
Cost of services
50,259
48,072
(5)
%
Cost of products
41,443
54,487
24
%
Cost of financing and other
3,396
3,094
(10)
%
Total costs of revenue
95,098
105,653
10
%
Gross margin
213,832
206,063
4
%
Gross margin %
69.2
%
66.1
%
Selling, general and administrative
84,034
99,193
15
%
Research and development
3,703
3,716
—
%
Other components of pension and post retirement cost
3,417
1,899
(80)
%
Adjusted Segment EBIT
$
122,678
$
101,255
21
%
SendTech Solutions revenue decreased $3 million in the second quarter of 2026 compared to the prior year period. Products revenue declined $3 million primarily due to a decline in our international portfolio. Financing and other revenue declined $1 million compared to the prior year period. Services revenue increased $2 million compared to the prior year period primarily driven by higher volumes in a cross-border services contract, which was partially offset by a declining meter population.
Gross margin increased $8 million and gross margin percentage increased to 69.2% from 66.1% compared to the prior year period primarily driven by favorable product mix and a $5 million tariff refund in 2026.
Selling, general and administrative ("SG&A") expense declined $15 million compared to the prior period primarily driven by lower employee-related expenses of $6 million, lower professional and outsourcing fees of $2 million, lower marketing expenses of $2 million, lower depreciation and amortization expense of $2 million and lower equipment maintenance expense of $1 million.
Adjusted segment EBIT was $123 million in the second quarter of 2026 compared to $101 million for the prior year period.
32
Six Months Ended June 30,
Favorable/(Unfavorable)
2026
2025
% change
Services
$
285,053
$
280,848
1
%
Products
176,173
184,070
(4)
%
Financing and other
161,651
162,404
—
%
Total revenue
622,877
627,322
(1)
%
Cost of services
100,392
99,291
(1)
%
Cost of products
90,122
105,406
15
%
Cost of financing and other
6,608
6,986
5
%
Total costs of revenue
197,122
211,683
7
%
Gross margin
425,755
415,639
2
%
Gross margin %
68.4
%
66.3
%
Selling, general and administrative
174,998
205,044
15
%
Research and development
7,706
8,607
10
%
Other components of pension and post retirement costs
6,843
3,706
(85)
%
Adjusted Segment EBIT
$
236,208
$
198,282
19
%
SendTech Solutions revenue decreased $4 million in the first half of 2026 compared to the prior year period. Revenue in the first quarter of 2025 includes an unfavorable adjustment of $4 million related to prior periods. Products revenue declined $8 million primarily due to customers opting to extend leases of their existing advanced-technology equipment rather than purchase new equipment as well as a declining meter population. Financing and other revenue declined $1 million compared to the prior year period. Services revenue increased $4 million compared to the prior year period driven by higher volumes in a cross-border services contract and higher subscription revenue which was partially offset by a declining meter population.
Gross margin increased $10 million and gross margin percentage increased to 68.4% from 66.3% compared to the prior year period primarily driven by a $5 million tariff refund in 2026, the unfavorable revenue adjustment of $4 million in the first quarter of 2025 and favorable product mix.
SG&A expense declined $30 million compared to the prior year period primarily driven by lower employee-related expenses of $11 million, lower professional and outsourcing fees of $6 million, lower marketing expenses of $4 million, lower equipment maintenance expense of $3 million and lower depreciation expense of $3 million.
Adjusted segment EBIT was $236 million in the first half of 2026 compared to $198 million for the prior year period.
33
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, First Class Flats, Marketing Mail, and Marketing Mail Flats/Bound Printed Matter for postal worksharing discounts.
Financial results for the Presort Services segment was as follows:
Three Months Ended June 30,
Favorable/(Unfavorable)
2026
2025
% Change
Services
$
142,568
$
150,193
(5)
%
Cost of services
105,099
96,153
(9)
%
Gross Margin
37,469
54,040
(31)
%
Gross Margin %
26.3
%
36.0
%
Selling, general and administrative
17,426
18,053
3
%
Other components of net pension and postretirement cost
37
47
21
%
Adjusted segment EBIT
$
20,006
$
35,940
(44)
%
Revenue decreased $8 million in the second quarter of 2026 compared to the prior year period primarily due to a 3% decline in total mail volumes driven by a broader market decline, client losses from the first half of 2025 and pricing actions. The processing of First Class Flats, First Class Mail and Marketing Mail contributed revenue decreases of $3 million, $3 million and $2 million, respectively.
Gross margin decreased $17 million and gross margin percentage decreased to 26.3% from 36.0% in the prior period primarily due to lower revenue, increased transportation and fuel costs of $7 million and higher employee-related benefits of $3 million.
SG&A expense decreased $1 million compared to the prior year period.
Adjusted segment EBIT was $20 million in the second quarter of 2026 compared to $36 million in the prior year period.
Six Months Ended June 30,
Favorable/(Unfavorable)
2026
2025
% Change
Services
$
306,034
$
328,007
(7)
%
Cost of services
211,119
200,787
(5)
%
Gross Margin
94,915
127,220
(25)
%
Gross Margin %
31.0
%
38.8
%
Selling, general and administrative
35,657
36,406
2
%
Other components of net pension and postretirement costs
74
95
22
%
Adjusted segment EBIT
$
59,184
$
90,719
(35)
%
Revenue decreased $22 million in the first half of 2026 compared to the prior year period primarily due to a 4% decline in total mail volumes driven by a broader market decline, client losses from the first half of 2025 and pricing actions. The processing of First Class Mail, First Class Flats and Marketing Mail contributed revenue decreases of $13 million, $7 million and $2 million, respectively.
Gross margin decreased $32 million and gross margin percentage decreased to 31.0% from 38.8% in the prior period primarily due to lower revenue, increased transportation and fuel costs of $9 million and higher employee-related benefits of $4 million.
SG&A expense decreased $1 million compared to the prior year period primarily driven by lower credit loss provision.
Adjusted segment EBIT was $59 million in the first half of 2026 compared to $91 million in the prior year period.
34
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, and primarily represent corporate administrative functions such as finance, human resources, legal and information technology.
Corporate expenses were as follows:
Three Months Ended June 30,
Favorable/(Unfavorable)
2026
2025
Actual % change
Corporate expenses
$
26,631
$
34,902
24
%
Corporate expenses for the second quarter of 2026 decreased $8 million compared to the prior year period primarily due to lower depreciation expense of $3 million, lower insurance expense of $2 million, lower outsourcing and professional fees of $2 million and lower excise tax of $1 million.
Six Months Ended June 30,
Favorable/(Unfavorable)
2026
2025
Actual % change
Corporate expenses
$
48,962
$
67,019
27
%
Corporate expenses for the first half of 2026 decreased $18 million compared to the prior year period primarily due to lower employee-related expenses of $14 million driven by actions taken under our restructuring plans and lower insurance expense of $4 million.
CONSOLIDATED EXPENSES
SG&A Expense
SG&A expense decreased $42 million in the second quarter of 2026 compared to the prior year period. In addition to the changes in SG&A expense previously discussed, SG&A also declined $18 million due to lower non-cash foreign currency revaluation gains/losses on intercompany loans.
SG&A expense decreased $74 million in the first half of 2026 compared to the prior year period. In addition to the changes in SG&A expense previously discussed, SG&A also declined $30 million due to lower non-cash foreign currency revaluation gains/losses on intercompany loans partially offset by higher transaction and strategic review costs of $5 million.
Restructuring charges
Restructuring charges decreased $10 million in the second quarter of 2026 and $7 million in the first half of 2026 compared to the prior year periods primarily due to a reduction in the number of actions taken during the current year compared to the prior year.
Interest expense, net
We allocate a portion of total interest expense to finance interest expense which is included in Cost of financing and other. Total interest expense is as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Interest expense, net
$
28,580
$
24,937
$
54,572
$
49,207
Allocated finance interest expense
9,028
12,562
18,611
26,177
Total interest expense
$
37,608
$
37,499
$
73,183
$
75,384
Total interest expense was flat in the second quarter of 2026 compared to the prior year period and declined $2 million in the first half of 2026 compared to the prior year period primarily due to lower effective interest rates partially offset by higher outstanding debt. The decline in interest expense allocated to finance interest was driven primarily by a decline in finance receivables.
35
Other components of net pension and postretirement cost
Other components of net pension and postretirement cost increased $10 million in the second quarter of 2026 and $19 million in the first half of 2026 compared to the prior year periods primarily due to the lower expected return on pension plan assets year over year driven by the U.S. and Canada buy-in contracts. The amount of other components of net pension and postretirement cost recognized each year will vary based on actuarial assumptions and actual results of our pension plans. See Note 11 to the Condensed Consolidated Financial Statements for further information.
Other expense (income)
Other expense in the second quarter of 2026 increased $7 million compared to the prior year period and decreased $17 million in the first half of 2026 compared to the prior year period driven by changes in gains and losses recognized in connection with debt activity and the Ecommerce Restructuring. See Note 16 to the Condensed Consolidated Financial Statements for further information.
Income taxes
See Note 12 to the Condensed Consolidated Financial Statements for further information.
OUTLOOK
For full year 2026, we continue to expect low to mid-single digit decline in revenue driven by the continued secular decline in mailing. We expect Adjusted EBIT to be a low-single digit decline to low-single digit growth, primarily driven by higher transportation costs and competitive pricing pressures, partially offset by lower worldwide operating costs from previous and continued cost-cutting actions and stronger than expected results for the first half of 2026.
The transportation market is experiencing significant volatility due to higher third-party carrier spot rates, driver shortages and increases in oil and diesel fuel prices associated with shipping disruptions through the Strait of Hormuz because of the Iran conflict. These factors have impacted our financial results and are expected to continue to adversely impact our financial results in the second half of the year.
We will also continue to implement capital allocation strategies to opportunistically reduce debt and lower interest costs, return capital to our shareholders through share repurchases and dividends and pursue other long-term investment opportunities.
36
LIQUIDITY AND CAPITAL RESOURCES
Our principal source of liquidity is cash generated from operations and access to credit markets, including borrowing capacity under our revolving credit facility. At June 30, 2026, we had cash and cash equivalents of $267 million, which includes $58 million held at our foreign subsidiaries used to support their liquidity needs. At this time, we believe that existing cash and cash equivalents, cash generated from operations and borrowing capacity under our revolving credit facility will be sufficient to fund our cash needs and meet our obligations for the next 12 months.
Cash Flow Summary
Changes in cash and cash equivalents were as follows:
2026
2025
Change
Net cash from operating activities
$
197,072
$
94,709
$
102,363
Net cash from investing activities
(26,717)
(74,100)
47,383
Net cash from financing activities
(187,507)
(208,492)
20,985
Effect of exchange rate changes on cash and cash equivalents
(902)
3,334
(4,236)
Change in cash and cash equivalents
$
(18,054)
$
(184,549)
$
166,495
Operating Activities
Cash flows from operating activities for the first half of 2026 improved $102 million compared to the prior year period primarily due to higher net income and changes in working capital, primarily driven by lower accrued liability payments and inventory spending and higher receivable collections.
Investing Activities
Cash flows from investing activities for the first half of 2026 improved $47 million compared to the prior year period primarily due to lower investments in loan receivables of $65 million partially offset by an $8 million reimbursement in the prior year for the DIP Facility, lower cash from investment activities of $7 million and lower capital expenditures of $4 million.
Financing Activities
Cash flows from financing activities for the first half of 2026 improved $21 million compared to the prior year period. Net cash from debt activities increased $70 million as we received net proceeds of $41 million in 2026 compared to net repayments of $29 million in 2025. Cash flows from financing activities also benefited from higher proceeds from stock option exercises of $29 million and lower fees paid to redeem/refinance debt of $15 million. These improvements were partially offset by higher common stock repurchases of $98 million.
We paid dividends of $27 million in the first half of 2026. 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 2026, we issued an additional aggregate $150 million of the Notes due March 2029 with identical terms to the prior notes outstanding. In the second quarter of 2026, we borrowed an additional $150 million under the Term Loan due March 2028 and extended the maturity date to March 2031. The proceeds of the additional term loan borrowing were used to repay the Notes due March 2027.
We have access to a $450 million revolving credit facility (increased from $400 million in the first quarter of 2026). In the second quarter of 2026, we further amended the revolving credit facility to extend the maturity date to March 2031 and updated certain covenants. This credit facility requires that we maintain (with maintenance tested quarterly) (i) a Consolidated Interest Coverage Ratio (as defined in the credit facility agreement) of not less than 2.00 to 1.00, (ii) a Consolidated Secured Net Leverage Ratio (as defined in the credit facility agreement) of no greater than 3.00 to 1.00 and (iii) a Consolidated Total Net Leverage Ratio (as defined in the credit facility agreement) of no greater than (a) 4.75 to 1.00 for the fiscal quarters ending June 30, 2026, September 30, 2026 and December 31, 2026, (b) 4.50 to 1.00 for the fiscal quarters ending March 31, 2027, June 30, 2027, September 30, 2027 and December 31, 2027, (c) 4.25 to 1.00 for the fiscal quarters ending March 31, 2028, June 30, 2028, September 30, 2028 and December 31, 2028 and (d) 4.00 to 1.00 for each fiscal quarter ending on or after March 31, 2029. At June 30, 2026, we were in compliance with these financial covenants. During the quarter, we borrowed $97 million under this credit facility, which was outstanding at June 30, 2026. At July 30, 2026, this amount has been fully repaid. At June 30, 2026, we have remaining borrowing capacity of $330 million. Borrowings under this credit facility are secured by assets of the Company.
37
The credit facility also contains provisions whereby if, on any day prior to December 14, 2028, the Notes due March 2029 have not been redeemed in full and liquidity is less than an amount equal to the amount to redeem the Notes due March 2029 plus $100 million, the Term loan due March 2031 and any borrowings under the revolving credit facility would become due on such date. Further, if on any day prior to May 16, 2030, the Convertible Notes due August 2030 have not been redeemed in full and liquidity is less than an amount equal to the amount to redeem the Convertible Notes due August 2030 plus $100 million, the Term loan due March 2031 and any borrowings under the revolving credit facility would become due on such date.
We have outstanding an aggregate $230 million convertible senior notes (the "Convertible Notes"). The Convertible Notes are senior unsecured obligations of the Company and are guaranteed jointly and severally, on a senior unsecured basis, by each of the Company’s existing and future wholly owned U.S. subsidiaries that guarantee the Company’s existing credit agreement, existing senior notes or any other series of capital market debt with an aggregate principal amount outstanding in excess of $150 million.
The conversion rate is 70.3835 shares of common stock per $1,000 principal amount, or $14.21 per share, subject to adjustment. Conversions of the Convertible Notes will be settled by paying cash up to the aggregate principal amount of the Convertible Notes being converted and by delivering shares of our common stock in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted.
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, 2026, 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 2025 Annual Report.
Critical Accounting Estimates
There have been no significant changes to the Critical Accounting Estimates disclosed in our 2025 Annual Report.
Item 3: Quantitative and Qualitative Disclosures About Market Risk
There were no material changes to the disclosures made in our 2025 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, 2026.
38
PART II. OTHER INFORMATION
Item 1: Legal Proceedings
See Note 13 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 2025 Annual Report.
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds
Repurchases of Equity Securities
On February 16, 2026, the Board of Directors authorized an increase to our share repurchase program of $250 million to a total of $750 million. Subject to limitations in our New Credit Agreement, common stock repurchases 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 common stock purchases during the three months ended June 30, 2026:
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
$235,992
April 2026
4,310,679
$
11.61
4,310,679
$185,956
May 2026
181,668
$
15.21
181,668
$183,193
June 2026
—
$
—
—
$183,193
4,492,347
$
11.75
4,492,347
Item 3: Defaults Upon Senior Securities
None.
Item 4: Mine Safety Disclosures
Not applicable.
39
Item 5: Other Information
During the three months ended June 30, 2026, certain directors or officers of the Company entered into, modified or terminated any contracts, instructions or written plans for the sale or purchase of Company securities that were intended to satisfy the affirmative defense conditions of Rule 10b5-1 or that constituted non-Rule 10b5-1 trading arrangements (as defined in Item 408(a) of Regulation S-K of the Exchange Act) as set forth in the table below:
Action
Date
Trading Arrangement
Total Shares to be Sold(3)
Expiration Date
Rule 10b5-1(1)
Non-Rule 10b5-1(2)
Deborah Pfeiffer
Adopt
June 9, 2026
x
25,000
February 14, 2027
Todd Everett
Adopt
June 11, 2026
x
30,000
August 31, 2027
(1) Intended to satisfy the affirmative defense of Rule 10b5-1(c).
(2) Not intended to satisfy the affirmative defense of Rule 10b5-1(c).
(3) Represents the maximum number of shares that may be sold pursuant to the 10b5-1 trading arrangement. The aggregate share amount shown is subject to certain price-based conditions set forth in the trading arrangement, and the actual number of shares sold will depend on whether the applicable conditions are satisfied during the sale periods specified in the plan.
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.
** The Exhibits identified above with two asterisks (**) are furnished herewith. These Exhibits shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibits shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
41
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 30, 2026
/s/ Paul Evans
Paul Evans
Executive Vice President, Chief Financial Officer and Treasurer
(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)