Financial Data and Key Metrics Changes - The company reported strong financial results for Q4 2025, indicating progress in its transformation despite some tailwinds [4][5] - The foundation of the business was significantly strengthened in 2025 through leadership upgrades, structural simplification, and cost elimination [5] Business Line Data and Key Metrics Changes - The presort business has seen new customer wins and no churn since June 2025, with a full pipeline of sales expected to translate into financial results over the coming months [8][10] - The company is focusing on being more aggressive with pricing in the presort business to win back clients and expects EBIT margins in the low-to-mid 20% range [14][16] Market Data and Key Metrics Changes - The company acknowledged potential headwinds from government shutdowns and economic uncertainties, particularly affecting the SendTech space [7] - The SendTech business is expected to experience a top-line decline in 2026, but the second half of the year is anticipated to be stronger than the first half [24][26] Company Strategy and Development Direction - The company is pivoting towards profitable growth and is undergoing an external review with qualified advisors [5] - There is a renewed focus on mail and investment to slow the decline in certain business areas, particularly in the presort and shipping segments [65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery from the low point tied to the IMI migration, with expectations for gradual improvement in the SendTech business [50] - The company is optimistic about growth opportunities in presort, shipping, and the bank, with a focus on capital allocation and maintaining a net debt to EBITDA ratio around 3x [66][68] Other Important Information - The company plans to hold an investor day in 2026 to enhance education on its business fundamentals [66] - Management emphasized the importance of building a strong foundation for future growth, despite short-term challenges [72] Q&A Session Summary Question: Can you expand on the additional market uncertainty and geopolitical challenges? - Management highlighted issues like government shutdowns and economic direction uncertainties, particularly affecting the presort business [7] Question: What impact did the government shutdown have in the quarter? - The CFO noted that hardware purchases were impacted, pushing some sales into the subsequent quarter [13] Question: How aggressive will the pricing strategy be in the presort business? - Management indicated that they are now being more aggressive to win new customers and have already made concessions to existing clients [14][15] Question: Will the second half of the year show positive growth in the presort business? - The CFO mentioned that while the first half will be challenging, the second half is expected to be a better comp year [23] Question: What are the growth opportunities for the company moving forward? - Management identified presort, shipping, and banking as key areas for growth, emphasizing a focus on capital allocation [65][66]

Financial Data and Key Metrics Changes - The company reported strong financial results for Q4 2025, indicating progress in its transformation despite some tailwinds [4][5] - The foundation of the business was significantly strengthened in 2025 through leadership upgrades, structural simplification, and cost elimination [5] Business Line Data and Key Metrics Changes - The presort business has seen new customer wins and no churn since June 2025, with a full pipeline of sales expected to translate into financial results over the coming months [10][12] - The company is focusing on being more aggressive with pricing in the presort business to win back clients and expects EBIT margins in the low-to-mid 20% range [16][19] Market Data and Key Metrics Changes - The company is aware of potential headwinds from government shutdowns and economic uncertainties, particularly affecting the SendTech space [8][9] - The presort business is more economically sensitive, and while the company does not expect major impacts, it remains cautious [9] Company Strategy and Development Direction - The company is pivoting towards profitable growth and is undergoing an external review with qualified advisors [5] - There is a renewed focus on mail and investment to slow the decline in certain business areas, which is seen as a form of growth [69] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by geopolitical uncertainties and government shutdowns but remains optimistic about the company's non-cyclical nature [8][9] - The company expects the second half of 2026 to show better performance in the SendTech business compared to the first half [27][29] Other Important Information - The company plans to hold an investor day in 2026 to improve education on its business fundamentals [70] - The hiring of new executives is seen as a strategic move to enhance the company's capabilities, regardless of the future direction of the business [63] Q&A Session Summary Question: Can you expand on the additional market uncertainty and geopolitical challenges? - Management highlighted issues such as potential government shutdowns and economic direction uncertainties affecting performance [7][8] Question: What impact did the government shutdown have in the quarter? - The CFO noted that hardware purchases were pushed into the subsequent quarter due to the shutdown [15] Question: How aggressive will the pricing strategy be in the presort business? - Management indicated that they are now more aggressive in pricing to win new customers and have made necessary concessions to existing clients [16][19] Question: Will the second half of the year show positive growth in the presort business? - Management expects easier year-over-year comparisons in the second half, with a focus on regaining customer losses [26] Question: What are the growth opportunities for the company in the coming years? - Management identified presort, shipping, and banking as key areas for growth, emphasizing the low-cost provider advantage in the presort market [69]