Dillon Bandi

Dillon Bandi asked if the 3x net debt to EBITDA target was for 2026 or a longer-term goal. He also inquired if there had been any fundamental changes in the SendTech business, such as renewal rates or price competition, as the company exits its low point of the product cycle.

Answer

CFO Paul Evans clarified that the 3x net debt to Adjusted EBITDA is an overall target, noting they were slightly below it at year-end, with potential fluctuations. CEO Kurt Wolf added that they are opportunistic in capital allocation, aligning with market views on debt levels. Regarding SendTech, CEO Kurt Wolf expressed overall confidence, citing strong products, market agreement, good performance in the federal space, and recovery from the IMI migration, with no fundamental change in the historical rate of decline expected.

Dillon Bandi asked if the 3x net debt target is for 2026 or a longer-term goal, and inquired if there have been fundamental changes in the SendTech business, such as renewal rates or price competition, as it exits its low point.

Answer

EVP, CFO, and Treasurer Paul Evans clarified that the company ended 2025 slightly below 3x Net Debt to Adjusted EBITDA, viewing it as an overall target to return to, allowing for opportunistic fluctuations. CEO Kurt Wolf added that they are cognizant of market views on debt levels and will follow the market's lead. CEO Kurt Wolf expressed overall confidence in SendTech, citing best products, strong federal/government performance, and recovery from the IMI migration low point, stating no fundamental change in the historical rate of decline is expected.