$PBI $8.44 Float: 163M Short 13.4M = 8.2% THIS COMPELLING RISK/REWARD, DEEP VALUE STORY IS REFRESHING IN A SEA OF VOLATILE GROWTH/MOMENTUM RECOMMENDED ENTRY PRIOR TO FEB 11TH QUARTERLY REPORT 10 KEY CONSIDERATIONS: 1. New Management Inflection – Kurt Wolf of Hestia Capital (owns ~ 8.7% or 15.8M shares) took control of the BoD in May ’24. Within weeks Lance Rosenzweig was appointed interim CEO. By July $70M of costs reductions had already been realized and a new range of cost cutting targets of $150M-$170M was announced (up from $60-$100M). Its Global E-Commerce (GEC) business was jettisoned to a wind-down entity at a max cost of $150M, saving approx. the same amount annually between net losses & capex. 2. No Growth But FCF Generative Businesses – Remaining businesses: PreSort (~1/3 of rev.) & SendTech (~2/3 of rev.,cloud-based shipping software etc.) while having some potential growth prospects, are best considered stable non-growers at this juncture (I would consider growth here to be “free upside”). Despite this, they produce robust gross and EBIT margins of ~56% and 22%, respectively. Net income in excess of $230M seems attainable for this year ($1.25/share) with robust free cash flow approaching $200M. 3. Shareholder Value Creation Initiatives – With an estimated $450M-$500M in FCF generation expected now through exit ’26, management now has more flexibility than ever to 1) pay down more debt, 2) buy back shares, 3) increase dividends, and 4) jumpstart a strategic pathway to growth. Based on listening to management, this list is roughly in order of what I would expect. 4. Debt Paydown, Cash Optimization & Refi – The co. has been very active here but has a lot of meat left on the bone. Informed analysts suggest the potential for upwards of $80M (> $0.40/share) in incremental income from a combo of variable comp. reductions & int. expenses savings. PBI has outlined a further ~$1.04Bln in term & operating lines presenting refi opportunities. Every 100bps positive delta generates $0.04-$-0.06 in EPS. Addit. opportunities exist to optimize cash & reduce interest expense such as captive lease receivable sales. 5. Key Potential Risk – Despite the well-elucidated points made by many LT investors that its PreSort business is not at risk as it is classified as “market-dominant,” (meaning USPS can apply to the Postal Board for rate increases which in turn boosts margins for pre-sort contractors), there is still chance that PBI’s low 20% EBIT margins in this division could come under the scrutiny. That said, it would take an act of Congress to change the law. PBI is by far the market leader in both scale & technology so they can be the most aggressive on pricing. If this were to happen one would expect their current cadence of taking over business from others that can no longer compete to be accelerated. 6. Earnings Track Record – PBI has a consistent track record of beating on both the top & bottom lines. The recent management change has seen the order of magnitude of these beats increase. The co. reports on Feb 11th after market & recently reiterated its revenue guide of $505-$515M & increased its EBIT range by $5M to above $89M. 7. Capital Structure Considerations & Short Position– Current balance sheet shows ~$479M in cash & equiv., $1,943M debt (inclusive of recent Oaktree note paydown) with an average coupon of ~8.5%. Management has mapped out a plan that could see this further reduced to ~$1,450M by the end of ’26E. Given their close proximity (~$9.50 strike) I have included the 9.1M options & ~6.3M RSUs/PSUs to arrive at a fully diluted number of 197.2M shares outstanding for all of my calculations to add conservatism. Despite over 13M shares short that don’t appear to have an obvious capital structure hedge I don’t ascribe to the short squeeze narratives currently being actively floated. That said, I acknowledge and am pleased to see 6 days-to-cover as an added tailwind to incremental good news. 8. Upcoming Catalysts – Upcoming quarter could beat & raise. Positive updates & outlook regarding the existing businesses.. Further details re. cost cutting & refinancing objectives & timelines. Possible announcement of a share repurchase program, comfort regarding security of their PreSort margins in respect of the new administration/DOGE. (Note: despite Trump’s bluster regarding USPS privatization I agree with the view that the structural inefficiencies, i.e. universal service obligation, make this “a bridge to far.”). Note: DOGE initiatives could result in further upside if, in lieu of outright privatization, they pushed for even more outsourcing in an effort to cut payroll & benefits fat which is USPS’s current cost anchor. 9. Attractive Technicals – PBI has been consolidating in a range between $7-8 for approx. 6 mo. with strong support in the $7-$7.50 range. RSI has only recently picked up reflective of the recent debt paydown & guidance. 10. Attractive Valuation – Using consensus estimates (which are arguably too low) current ‘25E valuations are P/E 7.5X, EV/S 1.5X EV/EBITDA 5X. Cheap on an absolute, relative & historic basis. CONCLUSION: Bold cost cutting execution from the new leadership has finally freed PBI to fully realize the robust earnings & FCF generation capabilities of its businesses. This positions new PBI shareholders to benefit from impressive margins & a historically inexpensive multiple. Just using its 10 year avg. P/E of 12X on a reasonable $1.25 in EPS (some are calling for 20% or more) I can comfortably get to $15 for an ~70% return. Compelling risk/reward as the downside appears limited to $7.25. I GAVE THIS IDEA TO OUR COMMUNITY AT MUCH LOWER PRICES Feeling left behind? Feel like you are lacking an edge? INVEST IN YOURSELF, MAKE IT YOUR BEST YEAR EVER, YOU DESERVE IT. Consider working together with me and the rest of the @StoryTrading team and community (use discount code: MAKEBANK65, for 65% of your first month, that’s less than $1/day, cancel anytime) to get access to trade & investment ideas ahead of the curve. 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$PBI Pitney Bowes SendTech 360 is the only shipping platform that has both StateRAMP and FedRAMP certification. Quadient is in the process of FedRAMP and Stamps,com has neither. /cc @DOMOCAPITAL

USPS has a supplier diversity program to discriminate against suppliers based on their race and s*x. This page is still up.

🚨 JUST IN: Senator Chuck Schumer issues new warning regarding DOGE... that if Elon Musk is willing to dismantle USAID, that the Postal Service and IRS could be next - Punchbowl What is your response?