Wise Group (WSE) investor relations material

Executive summary

• Net revenue rose 21% YoY to $739.1m, with growth across cross-border, card and other activity, and net interest income.

• Active customers reached 12.5m, up 20% YoY; cross-border volume was $71.7bn, up 22% reported and 21% on a constant-currency basis.

• Customer holdings grew 28% to $43.5bn; card spend reached $14.3bn, and 78% of transfers were instant, up 4 ppts YoY.

Financial highlights

• Cross-border revenue rose 16% YoY to $355.2m; card and other revenue increased 34% to $206.1m.

• Transaction revenue increased 22% YoY to $561.3m.

• Interest income on customer balances rose 18% to $238.2m; interest expense on customer liabilities increased 20% to $60.4m.

• Wise Account customer balances grew 22% to $32bn; gross yield declined to 2.9% from 3.1% YoY.

Outlook and guidance

• FY27 net revenue growth is expected in the upper half of the 15%-20% range (17.5%-20%) on a constant-currency basis; income before tax margin is expected around the top of the 20%-25% range.

• H1 FY27 net revenue growth is expected at ~22% and income before tax margin at ~23%, including one-off expenses equivalent to ~2 ppts.

• Medium-term targets are 15%-20% net revenue CAGR from FY24 and 15%-20% income before tax margin; margin is expected to remain above target at 20%-25% until substantially paying customers 80% of interest income above a 1% yield.

• Guidance reflects recent central-bank rate increases, excludes further rate changes, and assumes no material change in the proportion of interest paid to customers.