The Western Union Company (WU) Q1 2026 earnings summary

Executive summary

• Q1 2026 GAAP revenue was $983 million (flat year-over-year); adjusted revenue declined 1%.

• Net income for Q1 2026 was $64.7 million, down 48% year-over-year; adjusted EPS was $0.25, down from $0.41.

• Branded Digital transactions grew 21% and adjusted revenue rose 6%, while Consumer Services adjusted revenue grew 33% and represented 14% of total revenue.

• Consumer Money Transfer revenue declined 3% GAAP and 6% adjusted, with flat transactions; cross-border principal grew 1%.

• Multiple acquisitions (Lana, Dash, eurochange) closed; Intermex acquisition expected to close in Q2 2026.

Financial highlights

• Adjusted operating margin was 13%, down from 18% year-over-year, reflecting margin pressures from incentives, FX loss, and seasonality.

• Operating income dropped 31% to $123 million; adjusted EBITDA for Q1 2026 was $183.5 million.

• Cash flow from operations was $109 million; CapEx was $47 million, up due to agent signing bonuses.

• Cash and cash equivalents at quarter-end were $909 million; debt outstanding was $2.6 billion.

• Returned over $120 million to shareholders via dividends and buybacks in Q1.

Outlook and guidance

• 2026 GAAP revenue growth expected at 5–8%; adjusted revenue growth at 6–9%, including Intermex acquisition.

• 2026 GAAP EPS guidance is $1.50–$1.60; adjusted EPS $1.75–$1.85; adjusted effective tax rate expected at 13–15%.

• Q2 EPS expected to be similar to last year, with acceleration in the second half from revenue growth, new agents, and efficiency gains.

• Cost efficiency program targeting $150 million by year-end 2028, with significant contributions in 2026 and 2027.

• Outlook assumes Intermex closes in Q2 2026 and no major macroeconomic disruptions.