Pitney Bowes delivered a mixed performance in Q2, missing Wall Street’s revenue expectations largely due to customer losses in its Presort business. Management identified decisions by prior leadership to avoid pricing concessions as the main cause behind these losses, with CEO Kurt Wolf labeling it an "unforced error". However, progress in cost control and operational efficiency contributed to significant improvements in profitability and cash flow, with adjusted EBITDA and operating margin both rising year over year. The market remained largely unmoved, reflecting the balance between revenue headwinds and margin gains.
Is now the time to buy PBI? Find out in our full research report (it’s free).
Pitney Bowes (PBI) Q2 CY2025 Highlights:
- Revenue: $461.9 million vs analyst estimates of $475.9 million (5.7% year-on-year decline, 2.9% miss)
- Adjusted EPS: $0.27 vs analyst estimates of $0.28 (in line)
- Adjusted EBITDA: $158.1 million (34.2% margin, 102% year-on-year growth)
- The company dropped its revenue guidance for the full year to $1.93 billion at the midpoint from $1.98 billion, a 2.5% decrease
- Management raised its full-year Adjusted EPS guidance to $1.25 at the midpoint, a 4.2% increase
- Operating Margin: 15.5%, up from 10.4% in the same quarter last year
- Market Capitalization: $1.99 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Pitney Bowes’s Q2 Earnings Call
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Kartik Mehta (Northcoast Research) asked about future share repurchase activity. CEO Kurt Wolf did not provide specifics but pointed to the company's recent actions and management’s incentive structure as signals of confidence in Pitney Bowes’ value.
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Anthony Chester Lebiedzinski (Sidoti) inquired about the performance and outlook for the SaaS shipping business. Wolf explained that core SaaS shipping grew 17% year over year and is expected to continue outpacing other segments.
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Matthew Warren Swope (Baird) questioned the rationale behind recent management changes. Wolf and new CFO Paul Evans emphasized the opportunity for value creation and strong working relationships as the primary drivers for these leadership shifts.
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David Steinhardt (Contrarian) asked whether synergies exist between the Presort and SendTech businesses. Evans and Wolf discussed ongoing evaluation for further collaboration but noted that no major execution plans are imminent.
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Justin Robert Dopierala (Domo Capital Management) pressed for confirmation that there is no structural weakness in Presort. Wolf responded that most revenue decline was due to competitive losses from earlier management decisions, not underlying business weakness.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace at which Pitney Bowes can recover lost Presort customers and stabilize revenue, (2) sustained momentum in core SaaS shipping growth to offset headwinds in non-core segments, and (3) tangible outcomes from the internal strategic review, particularly any identified synergies or operational enhancements. Progress on these fronts will serve as key indicators of management’s execution and the company’s path to renewed growth.
Pitney Bowes currently trades at $11.60, up from $11.39 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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