Wise (WISE) Q1 2025 TU earnings summary

Executive summary

• Quarterly active customers grew 26% year-over-year to 8.4 million, driven by strong retention and referrals.

• Cross-border volumes increased 18% year-over-year (20% constant currency) to £33.2bn, supported by customer growth.

• Underlying income rose 22% year-over-year to £325.4m, with deposit balances up 23% and card/other revenue up 55%.

• Fee reductions led to a lower cross-border take rate of 0.64%, down from 0.67% in Q4 FY24.

• New Wise Platform partnership launched in Brazil with Nubank; Qonto partnership in Europe now serves 500,000+ SMEs and freelancers.

Financial highlights

• Underlying income for Q1 FY25 was £325.4m, up 22% year-over-year.

• Cross-border volume reached £33.2bn, an 18% increase year-over-year.

• Card and other revenue grew 55% year-over-year to £80.0m.

• Customer balances increased 23% year-over-year to £14.1bn.

• Instant transfers accounted for 59% of transactions, up 2 percentage points year-over-year.

Outlook and guidance

• Underlying income for FY25 expected to grow 15-20% over FY24.

• Targeting an underlying profit before tax margin of 13-16%.

• Focus remains on long-term cross-border volume growth and maintaining low fees.