The Western Union Company

What they do

Western Union moves money cross-border and cross-currency for consumers, businesses, financial institutions and governments, largely within minutes. As of December 31, 2025, its network included agent locations in more than 200 countries and territories, with approximately 360,000 locations having conducted money transfer activity in the prior 12 months. The company reports two segments: Consumer Money Transfer (retail agent, Company-operated, website and mobile transfers) and Consumer Services (bill payment, money orders, travel money, check acceptance, media network, prepaid cards, lending partnerships and digital wallets).

Revenue drivers

• Consumer Money Transfer (CMT) — The core segment, operating one interconnected global network for international and certain intra-country transfers through agents, Company-operated locations, websites and mobile apps. In Q2 2026, Branded Digital represented 32% of total CMT revenues and 43% of CMT transactions, while total CMT revenue declined 2% on a GAAP basis.
• Branded Digital — Digital money transfer channel within CMT; Q2 2026 revenue grew 7% on a GAAP basis and 6% adjusted, with transaction growth of 25% versus the prior year period.
• Consumer Services — Includes bill payment, money order, travel money, check acceptance, media network, prepaid cards, lending partnerships and digital wallets; Q2 2026 segment revenue grew 4% GAAP, or 12% adjusted, driven by bill payment and travel money.

Recent performance

Q2 2026 revenue was $1,013.2 million, down 1% on both reported and adjusted bases, with GAAP operating income implied by total expenses of $881.1 million. GAAP EPS fell to $0.24 from $0.37 a year earlier, and adjusted EPS fell to $0.31 from $0.42. GAAP operating margin was 13% versus 19% in the prior year period; adjusted operating margin was 15% versus 19%. Full-year 2025 revenue was $3.88 billion with net income of $499.6 million and diluted EPS of $1.52, down from 2024 net income of $934.2 million and diluted EPS of $2.74.

Strategy

Management is executing a dual-track strategy: accelerating operating expense reductions while continuing to invest in digital products and consumer services. In November 2025 the company announced its 'Beyond' strategy, which aims to broaden consumer services and modernize payments infrastructure, including digital wallets, consumer financial services, and a digital asset network. On October 28, 2025 Western Union announced the U.S. Dollar Payment Token (USDPT), a dollar-backed stablecoin to be issued on the Solana blockchain by Anchorage Digital Bank, N.A., anticipated to be available in licensed crypto exchanges in the first half of 2026. The company also announced a Digital Asset Network letting licensed crypto exchanges integrate Western Union money transfers into their consumer apps for cash payouts at Western Union locations. On August 10, 2025 it agreed to acquire International Money Express (Intermex) for approximately $500 million in cash, a deal still pending final regulatory approval.

Risks

• Regulatory approval delay on Intermex — The Intermex acquisition, announced August 10, 2025 at approximately $500 million, remains subject to remaining regulatory approvals including the New York State Department of Financial Services, and its delayed close has pushed out expected synergies per management.
• Americas retail weakness — Management said Q2 2026 did not show the expected improvement in Americas Retail, which along with higher CMT retail expenses caused meaningful margin pressure and lower-than-expected EPS.
• Highly competitive, technology-driven industry — The 10-K risk factors note the company faces competition from a wide variety of service providers and an industry subject to rapid and significant technological changes.
• Compliance, AML and data risk — The company is subject to increasingly strict legal and regulatory requirements including anti-money laundering, terrorist financing and fraud prevention, and as a holder of large amounts of confidential personal information is exposed to improper use or disclosure risk.

Outlook

For full-year 2026, management guides adjusted revenue growth of 4% to 6% (GAAP 3% to 5%) and adjusted EPS of $1.25 to $1.35; no quantitative GAAP EPS reconciliation was provided. The outlook assumes the Intermex deal closes on September 1, 2026, and assumes no material changes in macroeconomic conditions, immigration policies, foreign currencies, Argentina inflation, or prolonged escalation of Middle East conflicts. The company said it will accelerate cost reductions more forcefully in the second half of 2026. The GAAP effective tax rate is expected at 20% to 22% and the adjusted rate at 13% to 15%.