pbi-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ 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. Yes þ 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). Yes þ 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

Accelerated filer

☐

Non-accelerated filer

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.

PITNEY BOWES INC.

INDEX


		Page Number

Part I - Financial Information:

Item 1:	Financial Statements

	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2026 and 2025	3

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2026 and 2025	4

	Condensed Consolidated Balance Sheets at June 30, 2026 and December 31, 2025	5

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025	6

	Notes to Condensed Consolidated Financial Statements	7

Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30

Item 3:	Quantitative and Qualitative Disclosures about Market Risk	38

Item 4:	Controls and Procedures	38


Part II - Other Information:

Item 1:	Legal Proceedings	39

Item 1A:	Risk Factors	39

Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	39

Item 3:	Defaults Upon Senior Securities	40

Item 4:	Mine Safety Disclosures	40

Item 5:	Other Information	40

Item 6:	Exhibits	41


Signatures		42

PART I. FINANCIAL INFORMATION

Item 1: Financial Statements

PITNEY BOWES INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(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

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

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

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

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.

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

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.

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.

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

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

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

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

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.

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

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

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

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

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.

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

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.

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%

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

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.

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)

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)

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)

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.

Item 2: Management’s Discussion and Analysis of Financial 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.

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.

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.



	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.

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.

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.

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.

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

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.

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.

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

25,000

February 14, 2027

Todd Everett

Adopt

June 11, 2026

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.

Item 6: Exhibits


Exhibit Number			Description
3.1			Amended and Restated Certificate of Incorporation of Pitney Bowes Inc. (incorporated by reference to Exhibit 3.2 to the Form 8-K filed with the Commission on May 8, 2024)
3.2			Pitney Bowes Inc. Amended and Restated By-laws effective May 6, 2024 (incorporated by reference to Exhibit 3.4 to the Form 8-K filed with the Commission on May 8, 2024)
4.1			First Supplemental Indenture, dated March 2, 2026, among Pitney Bowes Inc., the guarantors party thereto and Truist Bank, as trustee (incorporated by reference to Exhibit 4.2 to the Form 8-K filed with the Commission on March 2, 2026)
4.2			Form of Additional Notes (included in Exhibit 4.2) (incorporated by reference to Exhibit 4.3 to the Form 8-K filed with the Commission on March 2, 2026)
10.1			T hird Amendment, dated as of May 18, 2026, among the Co mpany, the other Loan Parties party thereto, the Issuing Banks party thereto, the Lenders party thereto and Bank of America, N.A., as administrative agent (incorporated by refere nce to Exhibit 10.1 to the Form 8-K filed with the Commission on May 19, 2026)
10.2			F ourth Amendment, dated as of June 23, 202 6, among the Company, the other Loan Parties thereto, the Lenders party thereto and Bank of America, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 to the Form 8-K filed with the Com mission on Ju ne 2 5, 2026)



31.1			Certification of Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended
31.2			Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended
32.1**			Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350
32.2**			Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350
101.SCH			Inline XBRL Taxonomy Extension Schema Document
101.CAL			Inline XBRL Taxonomy Calculation Linkbase Document
101.DEF			Inline XBRL Taxonomy Definition Linkbase Document
101.LAB			Inline XBRL Taxonomy Label Linkbase Document
101.PRE			Inline XBRL Taxonomy Presentation Linkbase Document
104			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.

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)