Pitney Bowes (PBI) 2.30% Plunge as Q3 Revenue Misses $459.7M, Forecasting Flaws Outweigh EBITDA Surge

The share price fell to its lowest level since May 2025 today, with an intraday decline of 2.30%.

Pitney Bowes (PBI) reported third-quarter fiscal 2025 results marked by a $459.7 million revenue miss, falling 1.7% below analyst estimates. The shortfall stemmed from flawed forecasting mechanisms rather than operational failures, as management acknowledged gaps between internal performance metrics and external expectations. Despite this, adjusted earnings per share (EPS) of $0.31 matched projections, and adjusted EBITDA surged 45.8% year-on-year to $134.8 million. CEO Kurt Wolf admitted the company is “tripping up on past mistakes” but highlighted progress in segments like Presort, which saw operating margins rise to 20.7% from 13% in the prior year.

The stock’s decline reflects investor concerns over persistent forecasting challenges and revenue volatility, despite improved profitability metrics. While the company raised full-year adjusted EPS guidance to $1.30 and signaled “decelerating declines” in SendTech, analysts remain cautious about near-term risks. Presort’s fixed-cost structure amplifies margin pressure during volume declines, and SendTech’s post-IMI migration recovery is still in early stages. Management’s emphasis on “profitable growth” and leadership changes in key segments suggest a strategic pivot, but execution consistency and client retention will be critical in restoring confidence. With PBI’s market capitalization at $1.54 billion, the stock’s trajectory hinges on whether operational improvements translate into sustained revenue stabilization and forecasting credibility.