Pitney Bowes(PBI) - 2025 Q1 - Quarterly Results

Revenue Performance - Revenue for Q1 2025 was $493 million, down 5% year over year, with GAAP EPS at $0.19, an improvement of $0.21 year over year[5] - Total revenue for Q1 2025 was $493.42 million, a decrease of 5% compared to $521.27 million in Q1 2024[31] - Revenue from Sending Technology Solutions decreased by 9% to $298.06 million, while Presort Services increased by 5% to $177.81 million[33] - SendTech Solutions revenue declined to $298 million, down 9% year over year, while Adjusted Segment EBITDA improved by 2% to $106 million[13] - Presort Services revenue increased by 5% to $178 million, with Adjusted Segment EBITDA rising by 30% to $64 million[17] - The impact of currency on revenue was a gain of $2.14 million, with total revenue in constant currency also reflecting a 5% decrease[33] Earnings and Profitability - Adjusted EPS for Q1 2025 was $0.33, an improvement of $0.14 or 74% year over year[5] - Adjusted diluted earnings per share increased to $0.33 in Q1 2025 from $0.19 in Q1 2024[36] - Net income for Q1 2025 was $35.42 million, compared to a net loss of $2.89 million in Q1 2024[31] Cost Management - The company eliminated $34 million in annualized costs during Q1, increasing its target for net annualized cost savings to $180 million to $200 million[9] - Research and development expenses decreased to $4.76 million in Q1 2025 from $7.63 million in Q1 2024[31] - The company reported a restructuring charge of $1.4 million in Q1 2025, down from $3.77 million in Q1 2024[31] Cash Flow and Shareholder Returns - Free Cash Flow for Q1 was a use of $20 million, consistent with the company's budget and prior guidance[5] - Free cash flow for Q1 2025 was negative $20.46 million, compared to negative $0.34 million in Q1 2024[37] - The company repurchased $15 million of shares under its $150 million authorization during Q1[9] Guidance and Future Plans - The company reaffirmed its full-year 2025 guidance, projecting revenue between $1,950 million and $2,000 million, and Adjusted EPS between $1.10 and $1.30[18] - The company aims to increase the Pitney Bowes Bank Receivables Purchase Program from $84 million to $120 million by the end of 2025[9] - The company is targeting a leverage ratio of 3.0x by Q3 2025[9] Balance Sheet - Total current assets decreased to $1.18 billion as of March 31, 2025, down from $1.32 billion at the end of 2024[32] - Total liabilities decreased to $3.81 billion as of March 31, 2025, compared to $3.98 billion at the end of 2024[32]