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• Revenue: $493 million, down 5% year over year.

• Adjusted EPS: $0.33, up 74% year over year.

• Adjusted EBIT: $120 million, up 28% year over year.

• Free Cash Flow: Use of $20 million, excluding $13 million of restructuring payments.

• Cost Savings: $34 million of annualized costs removed in Q1, with a target of $180 million to $200 million in annualized net savings.

• Debt Repurchase: $37 million of debt repurchased at an average cost slightly below par.

• SendTech Revenue: $298 million, down 9% year over year.

• SendTech Gross Margin: Improved by 230 basis points to 68.9%.

• Presort Services Revenue: $178 million, up 5% year over year.

• Presort EBIT: $55 million, up 36% year over year.

• Global Financial Services Net Finance Receivables: $1.15 billion.

• Bank Deposits: $701 million, down seasonally from year-end.

• Dividend Increase: Quarterly dividend increased from $0.06 to $0.07 per share.

• Share Repurchase: $15 million of shares repurchased in Q1, with an additional $12 million repurchased post-quarter end.

• Warning! GuruFocus has detected 4 Warning Sign with PBI.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pitney Bowes Inc (NYSE:PBI) reported a 74% year-over-year increase in adjusted EPS, reaching $0.33.

• The company increased its quarterly dividend for the second consecutive quarter, from $0.06 to $0.07 per share.

• Pitney Bowes Inc (NYSE:PBI) removed an additional $34 million of annualized costs in Q1, raising their cost savings target to $180 million to $200 million.

• The Presort Services segment saw a 5% increase in revenue, driven by higher revenue per piece and improved labor productivity.

• Pitney Bowes Inc (NYSE:PBI) repurchased $37 million of debt at an average cost slightly below par, improving their financial position.

Negative Points

• Revenue for the quarter was $493 million, down 5% year over year.

• Free cash flow was a use of $20 million, excluding $13 million of restructuring payments.

• SendTech revenue declined by 9%, impacted by the conclusion of the IMI migration and a shift towards lease extensions.

• The company experienced a decline in volumes for Presort Services by 2%, with one less day in the quarter.

• Pitney Bowes Inc (NYSE:PBI) is still working towards dropping below a 3x leverage ratio target, which limits their ability to make unrestricted payments under current covenants.

Q & A Highlights

Q: Bob, you talked about emphasizing lease extensions versus new equipment. What impact do you anticipate that having on revenue since you're not selling new equipment? A: Robert Gold, Chief Executive Officer: We expect lease extensions to provide more stable revenue and cash flow. While there is still demand for new product placements, focusing on lease extensions offers a predictable revenue stream.