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Finance Assets and Lessor Operating Leases
 9 Months Ended
Sep. 30, 2025
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:
September 30, 2025December 31, 2024
North AmericaInternationalTotalNorth AmericaInternationalTotal
Sales-type lease receivables      
Gross finance receivables$881,118 $124,556 $1,005,674 $946,294 $120,109 $1,066,403 
Unguaranteed residual values33,821 5,943 39,764 36,361 5,890 42,251 
Unearned income(254,094)(37,465)(291,559)(257,971)(34,674)(292,645)
Allowance for credit losses(11,187)(1,993)(13,180)(12,659)(2,324)(14,983)
Net investment in sales-type lease receivables649,658 91,041 740,699 712,025 89,001 801,026 
Loan receivables     
Loan receivables386,799 1,199 387,998 334,717 16,874 351,591 
Allowance for credit losses(6,425)(203)(6,628)(6,549)(144)(6,693)
Net investment in loan receivables380,374 996 381,370 328,168 16,730 344,898 
Net investment in finance receivables$1,030,032 $92,037 $1,122,069 $1,040,193 $105,731 $1,145,924 

Maturities of gross finance receivables at September 30, 2025 were as follows:
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalTotalNorth AmericaInternationalTotal
Remainder 2025$90,678 $31,510 $122,188 $190,893 $1,199 $192,092 
2026325,284 40,511 365,795 69,103 — 69,103 
2027236,466 27,015 263,481 58,215 — 58,215 
2028142,560 15,733 158,293 39,537 — 39,537 
202967,958 7,307 75,265 22,649 — 22,649 
Thereafter18,172 2,480 20,652 6,402 — 6,402 
Total$881,118 $124,556 $1,005,674 $386,799 $1,199 $387,998 
Aging of Receivables
The aging of gross finance receivables was as follows:
September 30, 2025
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalNorth AmericaInternationalTotal
Past due amounts 0 - 90 days$872,190 $122,668 $384,647 $1,096 $1,380,601 
Past due amounts > 90 days8,928 1,888 2,152 103 13,071 
Total$881,118 $124,556 $386,799 $1,199 $1,393,672 

December 31, 2024
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalNorth AmericaInternationalTotal
Past due amounts 0 - 90 days$932,948 $117,908 $331,411 $16,809 $1,399,076 
Past due amounts > 90 days13,346 2,201 3,306 65 18,918 
Total$946,294 $120,109 $334,717 $16,874 $1,417,994 

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 and 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 management deems the account to be 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 ReceivablesLoan Receivables
North AmericaInternationalNorth AmericaInternationalTotal
Balance at January 1, 2025$12,659 $2,324 $6,549 $144 $21,676 
Amounts charged to expense877 25 2,952 229 4,083 
Write-offs(4,116)(581)(3,700)(183)(8,580)
Recoveries1,696 100 619 — 2,415 
Other71 125 5 13 214 
Balance at September 30, 2025$11,187 $1,993 $6,425 $203 $19,808 
Sales-type Lease ReceivablesLoan Receivables
North AmericaInternationalNorth AmericaInternationalTotal
Balance at January 1, 2024$13,942 $2,786 $6,346 $153 $23,227 
Amounts charged to expense998 (7)3,550 354 4,895 
Write-offs (3,232)(636)(5,116)(349)(9,333)
Recoveries1,221 145 1,546 — 2,912 
Other10 (11)(22)22 (1)
Balance at September 30, 2024$12,939 $2,277 $6,304 $180 $21,700 
The table below shows write-offs of gross finance receivables by year of origination.
Nine Months Ended September 30, 2025
Sales Type Lease ReceivablesLoan ReceivablesTotal
20252024202320222021Prior
Write-offs$264 $697 $1,056 $1,302 $936 $442 $3,883 $8,580 

Nine Months Ended September 30, 2024
Sales Type Lease ReceivablesLoan ReceivablesTotal
20242023202220212020Prior
Write-offs$67 $829 $1,382 $763 $543 $284 $5,465 $9,333 
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.
Over 85% 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 small dollar applications (i.e. below $50 thousand) and are subjected to an automated review process. Larger credit applications are manually reviewed, which includes 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.
September 30, 2025
Sales Type Lease ReceivablesLoan ReceivablesTotal
20252024202320222021Prior
Low$117,072 $162,352 $165,923 $118,745 $81,025 $84,603 $337,879 $1,067,599 
Medium20,201 29,883 27,821 21,421 13,576 13,910 30,315 157,127 
High2,206 2,988 2,621 2,069 1,276 1,644 5,417 18,221 
Not Scored42,704 32,217 25,763 16,464 11,027 8,163 14,387 150,725 
Total$182,183 $227,440 $222,128 $158,699 $106,904 $108,320 $387,998 $1,393,672 
December 31, 2024
Sales Type Lease ReceivablesLoan ReceivablesTotal
20242023202220212020Prior
Low$188,847 $210,547 $163,892 $104,269 $66,673 $42,586 $273,736 $1,050,550 
Medium31,970 31,839 26,652 19,180 10,556 10,512 34,376 165,085 
High4,633 4,488 3,753 2,415 2,038 684 11,826 29,837 
Not Scored49,835 38,659 28,250 17,131 5,400 1,594 31,653 172,522 
Total$275,285 $285,533 $222,547 $142,995 $84,667 $55,376 $351,591 $1,417,994 


Lease Income
Lease income from sales-type leases, excluding variable lease payments, was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Profit recognized at commencement$18,677 $24,071 $56,493 $78,277 
Interest income37,286 38,264 113,286 114,277 
Total lease income from sales-type leases$55,963 $62,335 $169,779 $192,554 

Lessor Operating Leases
We also lease mailing equipment under operating leases with terms of one to five years. Revenue from operating leases for the three and nine months ended September 30, 2025 was $14 million and $43 million, respectively, and revenue from operating leases for the three and nine months ended September 30, 2024 was $16 million and $50 million, respectively. Maturities of operating leases are as follows:
Remainder 2025$5,658 
202619,356 
202715,756 
20287,966 
20294,616 
Thereafter2,139 
Total$55,491