Pitney Bowes Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. Guidance figures: 4 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue down 3% year over year: Total revenue was $477 million against $493 million a year earlier. Services were $307 million, products $89 million, and financing and other $82 million. Source
• Adjusted EBIT and EBITDA rose: Adjusted EBIT was $130 million against $120 million, up 9%. Adjusted EBITDA was $156 million against $148 million. Source
• Presort revenue fell 8%: Presort revenue was $163 million against $178 million. Management attributed the decline to a 6% drop in volumes from client losses and market decline, plus a 2% mix effect. Source
• Presort segment profit down 28%: Presort adjusted segment EBIT was $39 million against $55 million. Management cited lower operating leverage from lower volumes and a shift to lower-margin products. Source
• Operating cash flow turned positive: Cash from operations was $44 million against negative $17 million. Free cash flow was $44 million against negative $20 million. Source
• Buybacks of $136 million in quarter: The company repurchased 12.9 million shares for $136 million in the first quarter, and 17.2 million shares for $186 million year to date through May 1. Source
• Quarterly dividend raised to $0.10: The Board approved a $0.01 increase to the regular quarterly dividend, from $0.09 to $0.10. This is the fifth increase in the past six quarters. Source

“Their hard work has enabled us to build momentum as we pivot to pursuing profitable growth.”

Kurt Wolf, Chief Executive Officer and Director

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 guidance was raised in the April 21, 2026 pre-release across all financial metrics.
• New: Guidance basis changed: pension-related costs are no longer excluded from the adjusted EBIT and adjusted EPS guidance.
• New: Non-GAAP definition changed: adjusted results exclude expense for the U.S. and Canada pension plans, effective January 1, 2026. Source

Consolidated results

• Revenue down 3% year over year: Total revenue was $477 million against $493 million a year earlier. Services were $307 million, products $89 million, and financing and other $82 million. Source
• GAAP and adjusted EPS both higher: GAAP diluted EPS was $0.39 against $0.19, and adjusted diluted EPS was $0.47 against $0.33. Net income rose to $58 million from $35 million. Source
• Adjusted EBIT and EBITDA rose: Adjusted EBIT was $130 million against $120 million, up 9%. Adjusted EBITDA was $156 million against $148 million. Source
• Revenue decline compared with earlier periods: The April pre-release compared the 3% decline with a 5% decline in the first quarter of 2025 and a 7% decline in the prior quarter.

Segments and regions

• SendTech revenue down 1%: SendTech revenue was $314 million against $316 million. Adjusted segment EBITDA was $123 million against $109 million, up 14%. Source
• Mailing revenue decline eased: Management said the mailing-related revenue decline moderated in the quarter, linking this to sales execution and lapping a prior IMI product migration. Source
• Prior-year items lifted comparisons: Year-over-year comparisons benefited by about 1 point from an unfavorable prior-year accounting adjustment and another 1 point from currency. Source
• SendTech segment profit higher: Adjusted segment EBIT was $114 million against $97 million, up 17%. Management attributed this to leadership's focus on cost management. Source
• Presort revenue fell 8%: Presort revenue was $163 million against $178 million. Management attributed the decline to a 6% drop in volumes from client losses and market decline, plus a 2% mix effect. Source
• Presort segment profit down 28%: Presort adjusted segment EBIT was $39 million against $55 million. Management cited lower operating leverage from lower volumes and a shift to lower-margin products. Source

“In conjunction with this announcement, CEO Kurt Wolf has released a letter to shareholders to provide his commentary on the quarter and updates on strategic initiatives.”

CEO Kurt Wolf

Products, volumes and customers

• Digital mailing and shipping growth: Management said growth in digital mailing and shipping solutions and the Pitney Bowes Bank partly offset mailing-related declines in SendTech. Source
• Presort sorted 3.6 billion pieces: The company reported total Presort volume of 3.6 billion pieces of mail for the quarter. Source
• Competitive wins credited in Presort: The April pre-release cited broad-based revenue strength in SendTech and competitive wins in Presort, alongside cost management across functional areas.

Costs and operating expenses

• SendTech operating expenses fell: Operating expenses in the quarter declined $14 million year over year. Source
• SG&A and corporate costs lower: Selling, general and administrative expense was $133.4 million against $165.9 million. Corporate expenses in the reconciliation were $22.3 million against $32.1 million. Source
• Restructuring and pension costs higher: Restructuring charges were $5.1 million against $1.4 million. Other components of net pension and postretirement cost were $11.0 million against $1.9 million. Source
• Prior-year other expense absent: Other expense was nil in the quarter against $24.2 million a year earlier. Total costs and expenses were $396.9 million against $446.7 million. Source

Cash flow and balance sheet

• Operating cash flow turned positive: Cash from operations was $44 million against negative $17 million. Free cash flow was $44 million against negative $20 million. Source
• Free cash flow reconciliation: Free cash flow starts from operating cash flow of $44.2 million, deducts $15.8 million of capital expenditures and adds back $15.2 million of restructuring payments, for $43.5 million. Source
• Payables outflow and receivables: Accounts payable and accrued liabilities used $102.5 million, against $141.3 million a year earlier. Finance receivables released $43.6 million, against $34.6 million. Source
• Cash and current debt balances: Cash and cash equivalents were $302.9 million at March 31, 2026, against $284.9 million at December 31, 2025. Current portion of long-term debt was $364.0 million, against $17.2 million. Source

Capital returns to shareholders

• Buybacks of $136 million in quarter: The company repurchased 12.9 million shares for $136 million in the first quarter, and 17.2 million shares for $186 million year to date through May 1. Source
• Cumulative repurchases under authorization: Since the start of the existing authorization, repurchases total 53.1 million shares for $565 million as of May 1, 2026. Source
• Quarterly dividend raised to $0.10: The Board approved a $0.01 increase to the regular quarterly dividend, from $0.09 to $0.10. This is the fifth increase in the past six quarters. Source
• Dividends paid and repurchase cash: Dividends paid to stockholders were $13.3 million against $11.0 million. Common stock repurchases in cash were $135.6 million against $15.0 million. Source

Non-GAAP measures and pension treatment

• Pension plan expense excluded: Pension expense for the plans to be terminated was $7.6 million in the quarter and is excluded from adjusted results. Source
• Transaction costs excluded: Transaction and strategic review costs of $6.5 million were excluded from adjusted results, against $1.9 million a year earlier. Source
• Per-share adjustments reconciled: Per-share adjustments included restructuring of $0.03, a $0.02 gain on intercompany loans, transaction costs of $0.03 and pension expense of $0.04. Source

Coming up, as management said on 5 May 2026

• Dividend payment date set: The $0.10 quarterly dividend is payable June 5, 2026, to holders of record on May 18, 2026. Source

Figures management reported

Risks management discussed

• Operational: Presort volume fell 6% on client losses and market decline, reducing operating leverage in the segment. Source
• Demand: Management expects mailing-related declines to continue in SendTech, partly offset by digital and shipping growth. Source
• Operational: Lower volumes and a mix shift to lower-margin products pressured Presort margins. Source

Earlier plans management reported on

• Not stated: Management reaffirmed the updated and improved guidance announced in the April 21 pre-release. Source
• Not stated: The Presort volume decline reflects client losses that management had communicated before this quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.