Western Union (WU) investor relations material

Executive summary

• Q3 2025 revenue was $1.03 billion, flat year-over-year, with strong performance in Europe, South America, and Asia, but continued weakness in North America, especially U.S. to Mexico.

• Digital transformation and global diversification drove growth, with significant investments in technology, omnichannel improvements, and new product offerings.

• Consumer Services revenue surged 49% year-over-year, driven by travel money expansion and the Eurochange Limited acquisition.

• Announced acquisition of Intermex for $500 million to accelerate U.S. retail strategy and broaden the independent agent network.

• Net income for Q3 2025 was $139.6 million, down 47% year-over-year, reflecting a prior-year tax settlement benefit.

Financial highlights

• Q3 2025 adjusted revenue was $1.033 billion, down 1% year-over-year excluding Iraq; GAAP EPS was $0.43, and adjusted EPS rose to $0.47.

• Operating margin improved to 20% (GAAP and adjusted), up from 16% and 19% in the prior year.

• Year-to-date cash flow from operations reached $408 million, with $101 million in capital expenditures.

• Over $120 million returned to shareholders in Q3 via dividends and buybacks; $400 million returned in the first nine months.

• Cash and cash equivalents at quarter-end were $947.8 million; debt outstanding at $2.6 billion.

Outlook and guidance

• 2025 adjusted revenue guidance reaffirmed at $4.035–$4.135 billion; GAAP revenue expected between $4.085–$4.185 billion.

• Adjusted operating margin expected between 19%–21%; GAAP margin at 18%–20%.

• Adjusted EPS guidance of $1.65–$1.75, with current trends pointing to the upper end; GAAP EPS guidance is $1.45–$1.55.

• Effective tax rate expected at 19–21% (GAAP) and 13–15% (adjusted).

• Consumer services expected to maintain double-digit growth, though not at Q3's 49% rate due to seasonality.