Financial Analysis

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 uncertai …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

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 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

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 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

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.

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"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 …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"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 a …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

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 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

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. …

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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 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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) 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 compensati …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing