The Western Union Company (WU) investor relations material

Executive summary

• Q2 2026 revenue was $1.013 billion, down 1% year-over-year, with margin pressures from retail declines in the Americas, higher agent commissions, and a shift to digital payout channels; net income fell 37% to $76.7 million.

• Adjusted EPS was $0.31 (down from $0.42), GAAP EPS was $0.24 (down from $0.37), reflecting lower profitability in Americas retail and higher operating expenses.

• Consumer Money Transfer transactions grew 3%, but adjusted revenue declined 3% year-over-year due to retail weakness; Branded Digital transactions rose 25% and adjusted revenue grew 6%, with growth concentrated in lower-margin corridors.

• Management is dissatisfied with current performance and is implementing the Beyond Efficiency program targeting $50 million in run-rate cost reductions by year-end.

• The Intermex acquisition is pending regulatory approval and expected to strengthen the U.S.-to-Latin America corridor.

Financial highlights

• GAAP revenue was $1.013 billion; adjusted revenue declined 1% year-over-year, improving from a 5% decline last year.

• Adjusted operating margin was 15% (down from 19%); GAAP operating margin was 13% (down from 19%).

• Adjusted EPS was $0.31, with a 14% adjusted effective tax rate; GAAP EPS was $0.24, with a 20% GAAP effective tax rate.

• Operating cash flow YTD was $214 million, up 45% from last year; capital expenditures YTD were $88 million, up 65%.

• Cash and cash equivalents at quarter-end: $919.8 million; debt outstanding: $2.7 billion.

Outlook and guidance

• 2026 adjusted revenue growth is projected at 4%–6%, inclusive of the Intermex acquisition, assuming a September 1 close.

• Full-year adjusted EPS is expected between $1.25 and $1.35, with stronger performance in the second half due to new agent wins, seasonality, and cost reductions.

• CapEx for 2026 is expected to be ~$200 million, reflecting new partnerships and a heavy renewal cycle.

• Adjusted effective tax rate expected at 13% to 15%; GAAP effective tax rate at 20% to 22%.