The Western Union Company (WU) Q2 2026 earnings summary

Executive summary

• Second quarter 2026 revenue was $1.013 billion, down 1% year-over-year, with margin pressures from retail slowdown in the Americas, higher agent commissions, and a shift to digital payout to account transactions.

• GAAP EPS was $0.24 (down 35%), adjusted EPS was $0.31 (down 26%), both below expectations due to lower profitability in Americas retail and Middle East digital.

• Consumer Money Transfer transactions grew 3%, but adjusted revenue declined 3% year-over-year due to Americas retail pressures; Branded Digital transactions increased 25% and adjusted revenue grew 6%.

• The company is accelerating cost reduction and operational transformation through the Beyond Efficiency program, targeting $50 million in run-rate savings by year-end and $200 million by end of 2027.

• The Intermex acquisition for $500 million is pending regulatory approval and expected to strengthen the U.S.-to-Latin America corridor.

Financial highlights

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

• Operating cash flow year-to-date was $214 million, up 45% from last year, driven by lower cash taxes.

• Year-to-date capital expenditures were $88 million, up 65% due to agent signing bonuses and renewals; full-year CapEx expected at $200 million.

• Cash and equivalents at quarter-end were $919.8 million, with $2.7 billion in debt; leverage ratios at 3x gross and 2x net.

• Net income for Q2 was $76.7 million, down 37% year-over-year.

Outlook and guidance

• 2026 adjusted revenue growth expected at 4%-6%, inclusive of Intermex acquisition, assuming a September 1 close.

• Full-year adjusted EPS guided to $1.25–$1.35, with stronger second-half performance anticipated from new agent wins, seasonality, improved revenue mix, and accelerated cost savings.

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

• Retail CMT expected to improve in the second half, digital CMT to remain stable, and Consumer Services to grow low single digits.