The Western Union Company (WU) investor relations material

Executive summary

• Q3 revenue was $1,009.3M, down 2% YoY; adjusted revenue declined 1%, as North America retail weakness outweighed Branded Digital and Consumer Services growth.

• GAAP diluted EPS was $0.25 versus $0.43 YoY; adjusted diluted EPS was $0.42 versus $0.47.

• Strategic shift targets a digital-first, omnichannel financial services model, with digital remittance, Consumer Services and USDPT initiatives; management said results better reflected underlying performance as costs move in line with business change.

Financial highlights

• GAAP operating income was $130.8M, down 35% YoY; adjusted operating income was $178.4M versus $206.2M.

• GAAP net income was $78.0M, down 44% YoY; adjusted net income was $130.5M versus $151.2M.

• Adjusted EBITDA was $234.3M in Q3 and $621.8M YTD; Q3 operating expenses rose 6% to $878.5M.

• Adjusted EPS of $0.42 exceeded expectations, supported by expense timing, accelerated efficiency benefits and a lower adjusted tax rate of 9% versus 12% YoY.

• Nine-month revenue was $3,005.2M, down 1% YoY; operating cash flow was $321.2M versus $408.3M.

Outlook and guidance

• FY2026 adjusted revenue growth guidance is 0% to 1% including Intermex, assuming a Nov. 10, 2026 close; excluding Intermex, guidance is down 2% to down 1%.

• FY2026 adjusted EPS guidance is $1.28 to $1.38, both with and without Intermex; GAAP tax rate guidance is 20% to 22% and adjusted tax rate guidance is 10% to 12%.

• Organic Q4 revenue is expected below the first nine months, reflecting the Saudi payout exit and softer Travel Money and money orders.

• Beyond Efficiency savings run rate is ahead of the $50M year-end target; management cited $80M in savings supporting 2027 efficiency targets.