The Western Union Company (WU) Q4 2024 earnings summary

Executive summary

• Achieved positive full-year adjusted revenue growth (ex-Iraq) ahead of 2022 Investor Day guidance, with strong momentum in Consumer Services and Branded Digital segments.

• Evolve 2025 strategy execution is driving sustainable, profitable growth, with notable improvements in Asia, APAC, and Europe.

• Retail business stabilized, with transaction growth in key markets and successful rollout of new point-of-sale technology.

• Q4 2024 GAAP revenue rose 1% year-over-year to $1.1B; full year GAAP revenue was $4.2B, down 3%, but up 0.5% on an adjusted basis excluding Iraq.

• Consumer Services segment delivered double-digit adjusted revenue growth for the third consecutive year.

Financial highlights

• Full-year GAAP revenue reached $4.2 billion; Q4 revenue was $1.1 billion.

• Adjusted revenue growth ex-Iraq was 0.5% for the year and 1.4% in Q4, marking the third consecutive quarter of positive growth.

• Consumer Services adjusted revenue grew 15% for the year and 23% in Q4; Branded Digital revenue up 8% in Q4 with 13% transaction growth.

• Adjusted EPS for Q4 was $0.40 (up $0.03 YoY); full-year adjusted EPS was $1.74, within guidance.

• Operating cash flow: $406M in 2024, impacted by $230M in tax payments; $318M paid in dividends, $177M in share repurchases.

Outlook and guidance

• 2025 adjusted revenue guidance: $4.115B–$4.215B, implying 1% growth at midpoint (ex-Iraq).

• Adjusted operating margin expected at 19%–21%; adjusted EPS forecasted at $1.75–$1.85.

• Consumer Services targeted for 10%–15% adjusted revenue growth in 2025.

• Guidance assumes stable macroeconomic conditions; Iraq not expected to contribute as in early 2024.

• Effective tax rate for 2025 projected at 20–22% (GAAP), 14–16% (adjusted).