The Western Union Company

Latest Results (26.11.2025):

The Western Union Company reported results for the second quarter of 2025. GAAP revenue was $1.03 billion (Q2 2025), down 4% year‑over‑year on a reported basis and down 1% on an adjusted basis excluding Iraq. GAAP EPS was $0.37 and adjusted EPS was $0.42. Branded Digital and Consumer Services grew, while the Consumer Money Transfer business was pressured by a North America retail slowdown and lower revenue from Iraq. Management reiterated full‑year 2025 guidance and highlighted cost initiatives that helped margins.

Top-line and profitability

Q2 2025 GAAP revenue: $1,026.1M (‑4% reported). Adjusted revenue (ex‑Iraq): down 1%. Net income: $122.1M (‑13% YoY). GAAP EPS $0.37 (prior year $0.41); adjusted EPS $0.42 (prior year $0.44). GAAP operating margin rose to 19% from 18%; adjusted operating margin remained 19%.

Segment performance

Consumer Money Transfer (CMT): revenue down 8% reported (‑6% adjusted ex‑Iraq); transactions down 3%. Branded Digital: revenue +6% and transactions +9%; Branded Digital comprised ~29% of CMT revenue and ~36% of CMT transactions. Consumer Services: revenue +39% reported (+41% adjusted), driven by Travel Money expansion and the Eurochange acquisition.

Main drivers and headwinds

Revenue weakness driven by a slowdown in North America retail and lower income from Iraq. Q2 was also affected by a higher GAAP tax rate (24% vs 15% prior year), higher interest expense, and increased consumer fraud losses; offsets included cost efficiencies, operational savings and fewer shares outstanding.

Balance sheet & cash flow highlights

Cash and cash equivalents were $1,019.6M at June 30, 2025 (down from $1,474.0M at Dec‑31‑2024). Settlement assets/obligations remain large (~$3.39B). Borrowings decreased to $2,749.2M from $2,940.8M. Net cash provided by operating activities for the six months: $147.9M; significant financing outflows YTD included dividends and share repurchases.

2025 outlook

Full‑year 2025 guidance: GAAP revenue $4,085–4,185M (adjusted $4,035–4,135M); GAAP operating margin 18–20% (adjusted 19–21%); GAAP EPS $1.45–1.55 (adjusted EPS $1.65–1.75). Guidance assumes no material macro changes (currencies, migration policy, Argentina inflation, etc.).

Other notable items

Company stopped adjusting for Argentinian hyperinflation beginning Q2 2025 (inflation moderated <50%). Western Union signed a definitive sale agreement for its Russian assets (subject to approvals) and continues to exclude volatile Iraq revenues from certain adjusted measures for comparability.