v3.26.1
Finance Assets and Lessor Operating Leases
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Finance Assets and Lessor Operating Leases 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 equipment 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:
March 31, 2026December 31, 2025
North AmericaInternationalTotalNorth AmericaInternationalTotal
Sales-type lease receivables      
Gross finance receivables$848,201 $104,844 $953,045 $870,453 $114,080 $984,533 
Unguaranteed residual values31,824 5,666 37,490 33,047 6,063 39,110 
Unearned income(256,673)(31,275)(287,948)(255,754)(34,736)(290,490)
Allowance for credit losses(9,674)(1,912)(11,586)(10,281)(1,947)(12,228)
Net investment in sales-type lease receivables613,678 77,323 691,001 637,465 83,460 720,925 
Loan receivables     
Loan receivables365,426 3,060 368,486 384,846 2,152 386,998 
Allowance for credit losses(6,707)(67)(6,774)(6,334)(14)(6,348)
Net investment in loan receivables358,719 2,993 361,712 378,512 2,138 380,650 
Net investment in finance receivables$972,397 $80,316 $1,052,713 $1,015,977 $85,598 $1,101,575 

Maturities of gross finance receivables at March 31, 2026 were as follows:
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalTotalNorth AmericaInternationalTotal
Remainder 2026$258,655 $38,031 $296,686 $231,877 $3,060 $234,937 
2027271,638 31,463 303,101 61,104 — 61,104 
2028177,332 19,717 197,049 42,488 — 42,488 
202996,322 10,543 106,865 23,783 — 23,783 
203039,737 4,031 43,768 5,725 — 5,725 
Thereafter4,517 1,059 5,576 449 — 449 
Total$848,201 $104,844 $953,045 $365,426 $3,060 $368,486 
Aging of Receivables
The aging of gross finance receivables was as follows:
March 31, 2026
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalNorth AmericaInternationalTotal
Past due amounts 0 - 90 days$840,078 $102,236 $357,361 $2,966 $1,302,641 
Past due amounts > 90 days8,123 2,608 8,065 94 18,890 
Total$848,201 $104,844 $365,426 $3,060 $1,321,531 

December 31, 2025
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalNorth AmericaInternationalTotal
Past due amounts 0 - 90 days$861,059 $111,809 $382,697 $1,746 $1,357,311 
Past due amounts > 90 days9,394 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 ReceivablesLoan Receivables
North AmericaInternationalNorth AmericaInternationalTotal
Balance at January 1, 2026$10,281 $1,947 $6,334 $14 $18,576 
Amounts charged to expense(287)60 1,546 48 1,367 
Write-offs(988)(109)(1,385)— (2,482)
Recoveries676 31 212 — 919 
Other(8)(17)— 5 (20)
Balance at March 31, 2026$9,674 $1,912 $6,707 $67 $18,360 
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalNorth AmericaInternationalTotal
Balance at January 1, 2025$12,659 $2,324 $6,549 $144 $21,676 
Amounts charged to expense644 (105)582 42 1,163 
Write-offs (1,536)(186)(1,543)(48)(3,313)
Recoveries492 48 328 — 868 
Other44 84 179 5 312 
Balance at March 31, 2025$12,303 $2,165 $6,095 $143 $20,706 
The table below shows write-offs of gross finance receivables by year of origination.
Three Months Ended March 31, 2026
Sales Type Lease ReceivablesLoan ReceivablesTotal
20262025202420232022Prior
Write-offs$43 $142 $236 $327 $202 $147 $1,385 $2,482 

Three Months Ended March 31, 2025
Sales Type Lease ReceivablesLoan ReceivablesTotal
20252024202320222021Prior
Write-offs$64 $124 $383 $518 $396 $237 $1,591 $3,313 
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.
March 31, 2026
Sales Type Lease ReceivablesLoan ReceivablesTotal
20262025202420232022Prior
Low$39,445 $141,695 $141,261 $138,020 $89,313 $140,451 $309,973 $1,000,158 
Medium7,755 26,359 26,621 24,317 15,603 23,508 34,087 158,250 
High941 3,969 4,774 4,023 2,870 3,873 7,297 27,747 
Not Scored28,797 33,723 25,350 15,473 9,081 5,823 17,129 135,376 
Total$76,938 $205,746 $198,006 $181,833 $116,867 $173,655 $368,486 $1,321,531 
December 31, 2025
Sales Type Lease ReceivablesLoan ReceivablesTotal
20252024202320222021Prior
Low$150,688 $153,596 $153,844 $106,037 $76,774 $76,956 $336,943 $1,054,838 
Medium27,793 28,927 27,310 18,950 12,719 12,754 29,701 158,154 
High2,798 2,974 2,555 2,076 1,214 1,451 4,998 18,066 
Not Scored49,845 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 March 31,
20262025
Profit recognized at commencement$18,811 $19,760 
Interest income37,357 37,763 
Total lease income from sales-type leases$56,168 $57,523 

Lessor Operating Leases
We lease mailing equipment under operating leases with terms of one to five years. Revenue from operating leases for each of the three months ended March 31, 2026 and 2025 was $15 million. Maturities of operating leases are as follows:
Remainder 2026$19,675 
202719,989 
20289,792 
20296,248 
20303,257 
Thereafter623 
Total$59,584