Pitney Bowes (PBI) Q4 2025 earnings summary

Executive summary

• Strengthened business foundation in 2025 through leadership upgrades, structural simplification, process streamlining, and cost elimination, positioning for profitable growth and an external review in Q2.

• Attracted high-caliber executive hires, including a new bank leader, to drive transformation and maximize value in key business areas.

• Q4 2025 revenue was $478 million, down 7% year-over-year, with GAAP net income of $27 million, a $65 million improvement year-over-year.

• Adjusted EPS for Q4 was $0.45, up $0.13 year-over-year; GAAP EPS was $0.17, up $0.38 year-over-year.

• Achieved strong earnings and cash flow in 2025, driven by disciplined cost management and operational improvements.

Financial highlights

• Gross margin for Q4 2025 was 57.2%, up from 56.7% in Q4 2024; full-year gross margin was 56.6%, up from 55.6%.

• SG&A as a percentage of revenue improved to 28.4% in Q4 2025 from 32.8% in Q4 2024; full-year SG&A was 31.0%, down from 35.1%.

• R&D as a percentage of revenue decreased to 0.7% in Q4 2025 from 1.8% in Q4 2024; full-year R&D was 0.8%, down from 1.6%.

• Q4 free cash flow was $212 million, excluding $10 million in restructuring payments.

• Q4 adjusted EBIT was $132 million (+15% year-over-year); full-year adjusted EBIT was $461 million (+20%).

Outlook and guidance

• 2026 revenue guidance is $1.76–$1.86 billion.

• Adjusted EBIT guidance for 2026 is $410–$460 million; adjusted EPS is expected to be $1.40–$1.60; free cash flow is projected at $340–$370 million.

• Wider guidance range for 2026 due to market uncertainty, potential government shutdowns, Fed policy changes, and economic direction, especially impacting marketing mail in presort.

• Expect SendTech revenue to decline for the year, with a stronger second half as IMI migration headwinds ease.

• Investor day planned for 2026 to further educate stakeholders on business fundamentals.