Pitney Bowes (PBI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $493 million, down 5% year-over-year, primarily due to product and service declines, but in line with expectations for the product lifecycle.

• Net income from continuing operations was $35 million, a $38 million improvement year-over-year, up 10% compared to Q1 2024.

• Adjusted EPS rose 74% to $0.33; adjusted EBIT increased 28% to $120 million.

• Free cash flow was a use of $20 million, excluding $13 million in restructuring, consistent with guidance and seasonality.

• The company reaffirmed robust full-year guidance, increased its quarterly dividend for the second consecutive quarter, and completed the wind-down of its Global Ecommerce segment.

Financial highlights

• Gross margin improved to 57.3% from 55.5% year-over-year; SendTech gross margin rose by 230 basis points to 68.9%.

• Adjusted EBIT margin increased to 24.3% from 17.9% year-over-year.

• SG&A as a percentage of revenue decreased to 33.6% from 35.8%; R&D as a percentage of revenue declined to 1.0% from 1.5%.

• Presort revenue grew 5% to $178 million; Presort EBIT rose 36% to $55 million.

• Operating expenses declined, driven by lower SG&A, R&D, and restructuring charges.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $1,950–$2,000 million; adjusted EBIT expected between $450–$480 million; adjusted EPS $1.10–$1.30.

• Free cash flow guidance set at $330–$370 million for 2025.

• Cost savings target raised to $180–$200 million annualized net savings over the next year.

• SendTech expects continued mailing revenue declines, offset by SaaS shipping growth; Presort anticipates margin improvements from automation.

• Tariffs are not expected to have a meaningful impact; guidance incorporates current tariff assumptions.