Western Union Reports Third Quarter 2026 Results

• GAAP revenue of $1.0 billion, down 2% versus the prior year period; adjusted revenue down 1%
• Branded Digital revenue grew 8% on both GAAP and on an adjusted basis
• Consumer Services GAAP revenue declined 2%; or grew 5% on an adjusted basis
• GAAP EPS of $0.25, or adjusted EPS of $0.42

DENVER--(BUSINESS WIRE)--The Western Union Company (the “Company” or “Western Union”) (NYSE: WU) today reported third quarter 2026 financial results.

The Company’s third-quarter revenue of $1.0 billion decreased 2% on a reported basis, while adjusted revenue declined 1% compared to the prior year period. The decline in adjusted revenue was largely driven by a slowdown in the North America retail business partially offset by growth in our Branded Digital and Consumer Services businesses.

“As we move through the second half of the year, we continue to make progress against our Beyond strategy,” said Devin McGranahan, President and Chief Executive Officer. “Importantly, the initiatives we launched in the second quarter are streamlining our cost structure and have begun to materialize in our financial results. At the same time, we continue to invest in growth, including expanding our digital capabilities, embedding AI across key operational processes, and advancing our stablecoin and next-generation money movement initiatives. We are beginning to see the impact of all of these efforts and remain confident in our ability to improve performance and create long-term shareholder value.”

Third quarter GAAP EPS was $0.25, down from $0.43 in the prior year period. The decrease in the GAAP EPS was primarily due to lower revenues and higher one-time expenses related to our Beyond efficiency program and a higher GAAP tax rate, partially offset by lower shares outstanding. Adjusted EPS was $0.42 in the third quarter, down from $0.47 in the prior year period. The Adjusted EPS in the current year period was affected by lower revenues and higher expenses from our Consumer Money Transfer (“CMT”) retail business, partially offset by a lower adjusted tax rate and lower shares outstanding in the quarter.

Q3 Business Results

• Branded Digital revenue increased 8% on both a GAAP and an adjusted basis, with transaction growth of 21% compared to the prior year period. The Branded Digital business represented 32% and 45% of total CMT revenues and transactions in the third quarter, respectively.

• Consumer Services segment revenue declined 2% on a GAAP basis or grew 5% on an adjusted basis compared to the prior year period. The increase in adjusted revenue was driven by higher revenues from our bill payment and check cashing businesses, partially offset by slowdown in our money order and media network businesses.

• CMT segment revenue decreased 2% on both a GAAP and an adjusted basis, while transactions grew 2% compared to the prior year period.

Q3 Financial Results

• GAAP operating margin in the quarter was 13%, compared to 20% in the prior year period, while the adjusted operating margin was 18%, compared to 20% in the prior year period. GAAP and adjusted operating margins in the current year period were impacted by lower revenues from our CMT retail business, and higher operating expenses.

• GAAP effective tax rate was 19%, compared to 17% in the prior year period. The increase in the GAAP effective tax rate was primarily due to changes in forecasted full-year pre-tax income, including the expected geographic mix of income among jurisdictions. The adjusted effective tax rate was 9%, compared to 12% in the prior year period. The decrease in the adjusted effective tax rate was primarily due to discrete expenses in the prior year period, partially offset by the proportional impact of the lower forecasted full-year pre-tax income.

Business Development

On August 10, 2025, the Company entered into an agreement (the “Merger Agreement”) to acquire International Money Express, Inc. (“Intermex”) (the “Merger”). Western Union and Intermex continue to engage in discussions with the California Department of Financial Protection and Innovation (the “DFPI”), regarding reinstatement of DFPI’s approval of the Merger. The Merger is subject to the reinstatement of the DFPI’s approval and the satisfaction or waiver of the other customary closing conditions set forth in the Merger Agreement. The Merger Agreement contains termination rights for the Company and Intermex, including the right of either party to terminate the Merger Agreement if the Merger is not completed by November 10, 2026.

2026 Outlook

The Company is updating the financial outlook for full year 2026. Our outlook assumes no material changes in macroeconomic conditions, including changes in immigration policies, foreign currencies, Argentina inflation, or any prolonged impact or escalations of the ongoing conflicts in the Middle East.

Non-GAAP Measures

Western Union presents non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency revenues translate revenues denominated in foreign currencies to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year. Beginning in the second quarter of 2025, the Company no longer excludes the estimated impact of Argentina inflation from its non-GAAP results, reflecting the significant moderation in inflation from levels above 200% in recent years to below 50%.

Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the “Investor Relations” section of the Company’s website at https://ir.westernunion.com.

Additional Statistics

Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release. All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.

Investor and Analyst Conference Call and Presentation

The Company will host a conference call and webcast at 4:30 p.m. ET today.

The webcast and presentation will be available at https://ir.westernunion.com. Registration for the event is required, so please register at least 15 minutes prior to the scheduled start time. A webcast replay will be available shortly after the event.

To listen to the webcast, please visit the Investor Relations section of the Company’s website or use the following link: Webcast Link. Alternatively, participants may join via telephone. In the U.S., dial +1 (719) 359-4580, followed by the meeting ID, which is 993 4375 8511, and the passcode, which is 776276. For participants outside the U.S., dial the country number from the international directory, followed by the meeting ID, which is 993 4375 8511, and the passcode, which is 776276.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as “expects,” “intends,” “targets,” “anticipates,” “believes,” “estimates,” “guides,” “provides guidance,” “provides outlook,” “projects,” “designed to,” and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” “could,” and “might” are intended to identify such forward-looking statements. Readers of this press release of The Western Union Company (the “Company,” “Western Union,” “we,” “our,” or “us”) should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2025 and in our subsequent filings with the Securities and Exchange Commission. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: changes in economic conditions, trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate; interruptions in migration patterns, slowdown in travel, or other events, such as public health emergencies, any changes arising as a result of policy changes in the United States and/or other key markets, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies, including cryptocurrencies; geopolitical tensions, political conditions, armed conflicts or wars, and related actions, including trade restrictions, tariffs, and government sanctions; deterioration in customer confidence in our business; failure to maintain our agent network and business relationships; our ability to adopt new technology; the development, deployment, and use of AI, machine learning, and automated decision-making technologies in our operations, including risks or unintended outcomes; the failure to realize anticipated financial benefits from mergers, acquisitions and divestitures; decisions to change our business mix; exposure to foreign exchange rates; changes in tax laws, or their interpretation, and unfavorable resolution of tax contingencies; cybersecurity incidents involving any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; our ability to realize the anticipated benefits from restructuring-related initiatives; our ability to attract and retain qualified key employees; failure to manage credit and fraud risks presented by our agents, clients, and consumers; adverse rating actions by credit rating agencies; our ability to protect our intellectual property rights, and to defend ourselves against potential intellectual property infringement claims; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations, and industry practices and standards; developments resulting from governmental investigations and consent agreements with, or investigations or enforcement actions by, regulators and other government authorities; liabilities resulting from litigation; failure to comply with regulations and evolving industry standards regarding data privacy; failure to comply with consumer protection laws; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to comply with working capital requirements; changes in accounting standards, rules and interpretations; and other unanticipated events and management’s ability to identify and manage these and other risks. Important factors that could cause Western Union’s or the combined company’s actual results to differ materially from the results referred to in the forward-looking statements in this release include: the possibility that the conditions to the consummation of the proposed acquisition of Intermex (the “Proposed Acquisition”) will not be satisfied on the terms or timeline expected, or at all; failure to obtain, or delays in obtaining, or adverse conditions related to obtaining regulatory approvals sought in connection with the Proposed Acquisition; dependence on key agents and the potential effects of network disruption; the possibility that we may be unable to achieve expected benefits, synergies and operating efficiencies in connection with the Proposed Acquisition; continued availability of capital and other changes in capital markets; potential litigation or regulatory actions relating to the Proposed Acquisition, which could result in significant costs of defense, indemnification, and liability; the risk that disruptions from the Proposed Acquisition, such as diverting management’s attention from the ongoing business operations and relationships of Western Union or Intermex, may harm our business, including current plans and operations, the market price of our capital stock, or our operating results; and failure to retain key management.

About Western Union

The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones and their communities. Our leading cross-border, cross-currency money movement, payments and digital financial services empower consumers, businesses, financial institutions and governments—across more than 200 countries and territories and nearly 130 currencies—to connect with billions of bank accounts, millions of digital wallets and cards, and a global footprint of hundreds of thousands of retail locations. Our goal is to offer accessible financial services that help people and communities prosper. For more information, visit www.westernunion.com.

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Media Relations:
Amanda Demarest
media@westernunion.com

Investor Relations:
Tom Hadley
WesternUnion.IR@westernunion.com