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Finance Assets and Lessor Operating Leases | 3 Months Ended
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Mar. 31, 2026
Receivables [Abstract] |
Finance Assets and Lessor Operating Leases | Finance Assets and Lessor Operating Leases Finance Assets Finance receivables are comprised of sales-type leases, secured loans and unsecured loans. Sales-type leases and secured loans are financing options for the purchase or lease of Pitney Bowes equipment or other manufacturers' equipment and are generally due in installments over periods ranging from three to five years. Unsecured loans are revolving credit lines offered to our clients for postage, supplies and working capital purposes. Unsecured loans are generally due monthly; however, clients may rollover outstanding balances. Interest is recognized on finance receivables using the effective interest method. Annual fees are recognized ratably over the period covered and client acquisition costs are expensed as incurred. All finance receivables are in our SendTech Solutions segment and we segregate finance receivables into a North America portfolio and an International portfolio. Finance receivables consisted of the following:
| March 31, 2026 |  | December 31, 2025
| North America |  | International |  | Total |  | North America |  | International |  | Total
Sales-type lease receivables |  |  |  |  |  |  |  |  |  |  |
Gross finance receivables | $ | 848,201 |  |  | $ | 104,844 |  |  | $ | 953,045 |  |  | $ | 870,453 |  |  | $ | 114,080 |  |  | $ | 984,533 |
Unguaranteed residual values | 31,824 |  |  | 5,666 |  |  | 37,490 |  |  | 33,047 |  |  | 6,063 |  |  | 39,110 |
Unearned income | (256,673) |  |  | (31,275) |  |  | (287,948) |  |  | (255,754) |  |  | (34,736) |  |  | (290,490) |
Allowance for credit losses | (9,674) |  |  | (1,912) |  |  | (11,586) |  |  | (10,281) |  |  | (1,947) |  |  | (12,228) |
Net investment in sales-type lease receivables | 613,678 |  |  | 77,323 |  |  | 691,001 |  |  | 637,465 |  |  | 83,460 |  |  | 720,925 |
Loan receivables |  |  |  |  |  |  |  |  |  |  |
Loan receivables | 365,426 |  |  | 3,060 |  |  | 368,486 |  |  | 384,846 |  |  | 2,152 |  |  | 386,998 |
Allowance for credit losses | (6,707) |  |  | (67) |  |  | (6,774) |  |  | (6,334) |  |  | (14) |  |  | (6,348) |
Net investment in loan receivables | 358,719 |  |  | 2,993 |  |  | 361,712 |  |  | 378,512 |  |  | 2,138 |  |  | 380,650 |
Net investment in finance receivables | $ | 972,397 |  |  | $ | 80,316 |  |  | $ | 1,052,713 |  |  | $ | 1,015,977 |  |  | $ | 85,598 |  |  | $ | 1,101,575 |
Maturities of gross finance receivables at March 31, 2026 were as follows:
| Sales-type Lease Receivables |  | Loan Receivables
| North America |  | International |  | Total |  | North America |  | International |  | Total
Remainder 2026 | $ | 258,655 |  |  | $ | 38,031 |  |  | $ | 296,686 |  |  | $ | 231,877 |  |  | $ | 3,060 |  |  | $ | 234,937 |
2027 | 271,638 |  |  | 31,463 |  |  | 303,101 |  |  | 61,104 |  |  | — |  |  | 61,104 |
2028 | 177,332 |  |  | 19,717 |  |  | 197,049 |  |  | 42,488 |  |  | — |  |  | 42,488 |
2029 | 96,322 |  |  | 10,543 |  |  | 106,865 |  |  | 23,783 |  |  | — |  |  | 23,783 |
2030 | 39,737 |  |  | 4,031 |  |  | 43,768 |  |  | 5,725 |  |  | — |  |  | 5,725 |
Thereafter | 4,517 |  |  | 1,059 |  |  | 5,576 |  |  | 449 |  |  | — |  |  | 449 |
Total | $ | 848,201 |  |  | $ | 104,844 |  |  | $ | 953,045 |  |  | $ | 365,426 |  |  | $ | 3,060 |  |  | $ | 368,486 |
Aging of Receivables The aging of gross finance receivables was as follows:
| March 31, 2026
| Sales-type Lease Receivables |  | Loan Receivables |  |
| North America |  | International |  | North America |  | International |  | Total
Past due amounts 0 - 90 days | $ | 840,078 |  |  | $ | 102,236 |  |  | $ | 357,361 |  |  | $ | 2,966 |  |  | $ | 1,302,641 |
Past due amounts > 90 days | 8,123 |  |  | 2,608 |  |  | 8,065 |  |  | 94 |  |  | 18,890 |
Total | $ | 848,201 |  |  | $ | 104,844 |  |  | $ | 365,426 |  |  | $ | 3,060 |  |  | $ | 1,321,531 |
| December 31, 2025
| Sales-type Lease Receivables |  | Loan Receivables |  |
| North America |  | International |  | North America |  | International |  | Total
Past due amounts 0 - 90 days | $ | 861,059 |  |  | $ | 111,809 |  |  | $ | 382,697 |  |  | $ | 1,746 |  |  | $ | 1,357,311 |
Past due amounts > 90 days | 9,394 |  |  | 2,271 |  |  | 2,149 |  |  | 406 |  |  | 14,220 |
Total | $ | 870,453 |  |  | $ | 114,080 |  |  | $ | 384,846 |  |  | $ | 2,152 |  |  | $ | 1,371,531 |
Allowance for Credit Losses We provide an allowance for credit losses based on historical loss experience, the nature of our portfolios, adverse situations that may affect a client's ability to pay, current economic conditions and outlook based on reasonable and supportable forecasts. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves. We establish credit approval limits based on the client's credit quality and the type of equipment financed. We cease financing revenue recognition for lease receivables and unsecured loan receivables that are more than 90 days past due. Revenue recognition is resumed when the client's payments reduce the account aging to less than 60 days past due. Finance receivables are written off against the allowance after all collection efforts have been exhausted and the account is deemed uncollectible. We believe that our credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. Activity in the allowance for credit losses for finance receivables was as follows:
| Sales-type Lease Receivables |  | Loan Receivables |  |
| North America |  | International |  | North America |  | International |  | Total
Balance at January 1, 2026 | $ | 10,281 |  |  | $ | 1,947 |  |  | $ | 6,334 |  |  | $ | 14 |  |  | $ | 18,576 |
Amounts charged to expense | (287) |  |  | 60 |  |  | 1,546 |  |  | 48 |  |  | 1,367 |
Write-offs | (988) |  |  | (109) |  |  | (1,385) |  |  | — |  |  | (2,482) |
Recoveries | 676 |  |  | 31 |  |  | 212 |  |  | — |  |  | 919 |
Other | (8) |  |  | (17) |  |  | — |  |  | 5 |  |  | (20) |
Balance at March 31, 2026 | $ | 9,674 |  |  | $ | 1,912 |  |  | $ | 6,707 |  |  | $ | 67 |  |  | $ | 18,360 |
| Sales-type Lease Receivables |  | Loan Receivables |  |
| North America |  | International |  | North America |  | International |  | Total
Balance at January 1, 2025 | $ | 12,659 |  |  | $ | 2,324 |  |  | $ | 6,549 |  |  | $ | 144 |  |  | $ | 21,676 |
Amounts charged to expense | 644 |  |  | (105) |  |  | 582 |  |  | 42 |  |  | 1,163 |
Write-offs | (1,536) |  |  | (186) |  |  | (1,543) |  |  | (48) |  |  | (3,313) |
Recoveries | 492 |  |  | 48 |  |  | 328 |  |  | — |  |  | 868 |
Other | 44 |  |  | 84 |  |  | 179 |  |  | 5 |  |  | 312 |
Balance at March 31, 2025 | $ | 12,303 |  |  | $ | 2,165 |  |  | $ | 6,095 |  |  | $ | 143 |  |  | $ | 20,706 |
The table below shows write-offs of gross finance receivables by year of origination.
| Three Months Ended March 31, 2026
| Sales Type Lease Receivables |  | Loan Receivables |  | Total
| 2026 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | Prior |  |
Write-offs | $ | 43 |  |  | $ | 142 |  |  | $ | 236 |  |  | $ | 327 |  |  | $ | 202 |  |  | $ | 147 |  |  | $ | 1,385 |  |  | $ | 2,482 |
| Three Months Ended March 31, 2025
| Sales Type Lease Receivables |  | Loan Receivables |  | Total
| 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  |
Write-offs | $ | 64 |  |  | $ | 124 |  |  | $ | 383 |  |  | $ | 518 |  |  | $ | 396 |  |  | $ | 237 |  |  | $ | 1,591 |  |  | $ | 3,313 |
Credit Quality The extension and management of credit lines to new and existing clients uses a combination of a client's credit score, where available, a detailed manual review of their financial condition and payment history, or an automated process. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow-up should an account become delinquent. We have robust automated collections and extensive portfolio management processes to ensure that our global strategy is executed, collection resources are allocated and enhanced tools and processes are implemented as needed. Substantially all of our finance receivables are within the North American portfolio. We use a third-party to score the majority of this portfolio on a quarterly basis using a proprietary commercial credit score. The relative scores are determined based on a number of factors, including financial information, payment history, company type and ownership structure. We stratify the credit scores of our clients into low, medium and high-risk accounts. Due to timing and other issues, our entire portfolio may not be scored at period end. We report these amounts as "Not Scored"; however, absence of a score is not indicative of the credit quality of the account. The credit score is used to predict the payment behaviors of our clients and the probability that an account will become greater than 90 days past due during the subsequent 12-month period. •Low risk accounts are companies with very good credit scores and a predicted delinquency rate of less than 5%. •Medium risk accounts are companies with average to good credit scores and a predicted delinquency rate between 5% and 10%. •High risk accounts are companies with poor credit scores, are delinquent or are at risk of becoming delinquent. The predicted delinquency rate would be greater than 10%. We do not use a third-party to score our International portfolio because the cost to do so is prohibitive as there is no single credit score model that covers all countries. Accordingly, the entire International portfolio is reported in the Not Scored category. Most of the International credit applications are subjected to an automated review process. Credit applications that are manually reviewed include obtaining client financial information, credit reports and other available financial information. The table below shows gross finance receivables by relative risk class and year of origination based on the relative scores of the accounts within each class.
| March 31, 2026
| Sales Type Lease Receivables |  | Loan Receivables |  | Total
| 2026 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | Prior |  |
Low | $ | 39,445 |  |  | $ | 141,695 |  |  | $ | 141,261 |  |  | $ | 138,020 |  |  | $ | 89,313 |  |  | $ | 140,451 |  |  | $ | 309,973 |  |  | $ | 1,000,158 |
Medium | 7,755 |  |  | 26,359 |  |  | 26,621 |  |  | 24,317 |  |  | 15,603 |  |  | 23,508 |  |  | 34,087 |  |  | 158,250 |
High | 941 |  |  | 3,969 |  |  | 4,774 |  |  | 4,023 |  |  | 2,870 |  |  | 3,873 |  |  | 7,297 |  |  | 27,747 |
Not Scored | 28,797 |  |  | 33,723 |  |  | 25,350 |  |  | 15,473 |  |  | 9,081 |  |  | 5,823 |  |  | 17,129 |  |  | 135,376 |
Total | $ | 76,938 |  |  | $ | 205,746 |  |  | $ | 198,006 |  |  | $ | 181,833 |  |  | $ | 116,867 |  |  | $ | 173,655 |  |  | $ | 368,486 |  |  | $ | 1,321,531 |
| December 31, 2025
| Sales Type Lease Receivables |  | Loan Receivables |  | Total
| 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  |
Low | $ | 150,688 |  |  | $ | 153,596 |  |  | $ | 153,844 |  |  | $ | 106,037 |  |  | $ | 76,774 |  |  | $ | 76,956 |  |  | $ | 336,943 |  |  | $ | 1,054,838 |
Medium | 27,793 |  |  | 28,927 |  |  | 27,310 |  |  | 18,950 |  |  | 12,719 |  |  | 12,754 |  |  | 29,701 |  |  | 158,154 |
High | 2,798 |  |  | 2,974 |  |  | 2,555 |  |  | 2,076 |  |  | 1,214 |  |  | 1,451 |  |  | 4,998 |  |  | 18,066 |
Not Scored | 49,845 |  |  | 32,817 |  |  | 23,710 |  |  | 12,157 |  |  | 4,531 |  |  | 2,057 |  |  | 15,356 |  |  | 140,473 |
Total | $ | 231,124 |  |  | $ | 218,314 |  |  | $ | 207,419 |  |  | $ | 139,220 |  |  | $ | 95,238 |  |  | $ | 93,218 |  |  | $ | 386,998 |  |  | $ | 1,371,531 |
Lease Income Lease income from sales-type leases, excluding variable lease payments, was as follows:
|  |  | Three Months Ended March 31,
|  |  |  |  | 2026 |  | 2025
Profit recognized at commencement |  |  |  |  | $ | 18,811 |  |  | $ | 19,760 |
Interest income |  |  |  |  | 37,357 |  |  | 37,763 |
Total lease income from sales-type leases |  |  |  |  | $ | 56,168 |  |  | $ | 57,523 |
Lessor Operating Leases We lease mailing equipment under operating leases with terms of one to five years. Revenue from operating leases for each of the three months ended March 31, 2026 and 2025 was $15 million. Maturities of operating leases are as follows:
Remainder 2026 | $ | 19,675 |
2027 | 19,989 |
2028 | 9,792 |
2029 | 6,248 |
2030 | 3,257 |
Thereafter | 623 |
Total | $ | 59,584 |

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