Western Union Reports Third Quarter 2025 Results

The Company’s third-quarter revenue of $1.03 billion was flat relative to the prior year period on a reported basis, while adjusted revenue, excluding Iraq, decreased 1%. The change in adjusted revenue was largely driven by growth in our Consumer Services and Branded Digital businesses offset by a slowdown in our North America retail business.

“As we advance our strategy, we are diversifying and making meaningful progress in broadening our Consumer Services offerings, deepening our presence across key markets, and embedding a more efficient operating model to drive sustainable growth,” said Devin McGranahan, President and Chief Executive Officer. “Our ability to adapt and execute in dynamic conditions reflects the durability of our business model, the power of our brand recognition and the value of global reach.”

Third quarter GAAP EPS was $0.43, down from $0.78 in the prior year period. Adjusted EPS was $0.47 in the third quarter, up from $0.46 in the prior year period. The GAAP EPS in the prior period was affected by a $0.40 benefit from a settlement with the U.S. Internal Revenue Service regarding the Company’s 2017 and 2018 federal income tax returns. Both GAAP and Adjusted EPS benefited in the current period from improved cost efficiencies and fewer shares outstanding, partially offset by higher interest expense and a higher tax rate.

Q3 Business Results

• Consumer Services segment revenue grew 49% on both a reported and an adjusted basis compared to the prior year period, driven by the expansion of our Travel Money business, which included the acquisition of Eurochange Limited, and higher revenues from our Argentina bill pay business.

• Branded Digital revenue increased 7% on a reported basis, and 6% on an adjusted basis, with transaction growth of 12% compared to the prior year period. The Branded Digital business represented 29% and 38% of total Consumer Money Transfer (“CMT”) revenues and transactions in the third quarter, respectively.

• CMT segment revenue decreased 6% on a reported basis, and on an adjusted basis, excluding Iraq, revenues and transactions declined 7% and 2%, respectively, compared to the prior year period.

Q3 Financial Results

• GAAP operating margin was 20% in the current year period, up from 16% in the previous year period, while the adjusted operating margin was 20% in the current year period, up from 19% in the prior year period. GAAP and adjusted operating margin benefited from improved cost efficiencies.

• The GAAP effective tax rate was a provision of 17% compared to the prior year's benefit of 95%. The prior year's GAAP effective tax rate was primarily impacted by the benefit related to the IRS settlement. The adjusted effective tax rate was 12% in the current year period, up from 8% in the prior year period, with the increase due to discrete benefits in the prior period.

2025 Outlook

The Company expects the following financial results for full year 2025, which assumes no material changes in macroeconomic conditions, including changes in immigration policies, foreign currencies or Argentina inflation, and represents no change versus the previous outlook.

Non-GAAP Measures

Western Union presents non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency revenues translate revenues denominated in foreign currencies to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year. The Company calculates Argentina inflation as the revenue growth not attributable to either transaction growth or the change in price (revenue divided by principal).

Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the “Investor Relations” section of the Company’s website at https://ir.westernunion.com.

Additional Statistics

Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release. All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.

Investor and Analyst Conference Call and Presentation

The Company will host a conference call and webcast at 4:30 p.m. ET today.

The webcast and presentation will be available at https://ir.westernunion.com. Registration for the event is required. Please register at least 15 minutes prior to the scheduled start time. A webcast replay will be available shortly after the event.

To listen to the webcast, please visit the Investor Relations section of the Company’s website or use the following link: Webcast Link. Alternatively, participants may join via telephone. In the U.S., dial +1 (719) 359-4580, followed by the meeting ID, which is 947 9772 0982, and the passcode, which is 067407. For participants outside the U.S., dial the country number from the international directory, followed by the meeting ID, which is 947 9772 0982, and the passcode, which is 067407.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as “expects,” “intends,” “targets,” “anticipates,” “believes,” “estimates,” “guides,” “provides guidance,” “provides outlook,” “projects,” “designed to,” and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” “could,” and “might” are intended to identify such forward-looking statements. Readers of this press release of The Western Union Company (the “Company,” “Western Union,” “we,” “our,” or “us”) should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2024 and in our subsequent filings with the Securities and Exchange Commission. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: changes in economic conditions, trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate; interruptions in migration patterns or other events, such as public health emergencies, any changes arising as a result of policy changes in the United States and/or other key markets, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies, including cryptocurrencies; geopolitical tensions, political conditions and related actions, including trade restrictions, tariffs, and government sanctions; deterioration in customer confidence in our business; failure to maintain our agent network and business relationships; our ability to adopt new technology; the failure to realize anticipated financial benefits from mergers, acquisitions and divestitures; decisions to change our business mix; exposure to foreign exchange rates; changes in tax laws, or their interpretation, and unfavorable resolution of tax contingencies; cybersecurity incidents involving any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; our ability to realize the anticipated benefits from restructuring-related initiatives; our ability to attract and retain qualified key employees; failure to manage credit and fraud risks presented by our agents, clients, and consumers; adverse rating actions by credit rating agencies; our ability to protect our intellectual property rights, and to defend ourselves against potential intellectual property infringement claims; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations, and industry practices and standards; developments resulting from governmental investigations and consent agreements with, or investigations or enforcement actions by, regulators and other government authorities; liabilities resulting from litigation; failure to comply with regulations and evolving industry standards regarding data privacy; failure to comply with consumer protection laws; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to comply with working capital requirements; changes in accounting standards, rules and interpretations; and other unanticipated events and management’s ability to identify and manage these and other risks.

About Western Union

The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones and their communities. Our leading cross-border, cross-currency money movement, payments and digital financial services empower consumers, businesses, financial institutions and governments—across more than 200 countries and territories and over 130 currencies—to connect with billions of bank accounts, millions of digital wallets and cards, and a global footprint of hundreds of thousands of retail locations. Our goal is to offer accessible financial services that help people and communities prosper. For more information, visit www.westernunion.com.

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