The Western Union Company (WU) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was $1.01 billion, down 5% year-over-year on an adjusted basis, with Consumer Money Transfer transactions down 2.5% and cross-border principal growth up on a constant currency basis.

• Consumer Services and Branded Digital segments delivered strong growth, offsetting continued weakness in the Americas retail business, especially U.S. to Mexico.

• Adjusted EPS for Q4 was $0.45, up from $0.40 a year ago; full-year adjusted EPS reached $1.75, at the top end of guidance.

• Strategic focus on digital transformation, expanding wallet offerings, and exclusive agent partnerships to drive future growth.

• Over $500 million was returned to shareholders via dividends and share buybacks in 2025.

Financial highlights

• Full-year GAAP revenue was $4.1 billion; adjusted revenue declined 5% year-over-year, excluding Iraq.

• Adjusted operating margin for 2025 was 20%, up from 19% prior year; Q4 margin was 20% versus 17% last year.

• Adjusted EPS for the year was $1.75, benefiting from cost discipline and share repurchases, partially offset by higher interest expense.

• Generated $544 million in operating cash flow, with CapEx of $151 million, up 15% year-over-year.

• Adjusted free cash flow for 2025 was $640 million, with a conversion rate of 111%.

Outlook and guidance

• 2026 adjusted revenue expected to grow 6%-9%, inclusive of Intermex acquisition, with adjusted EPS guidance of $1.75-$1.85.

• 2026 GAAP revenue growth expected between 5% and 8%; GAAP EPS guidance: $1.50 to $1.60.

• EPS expected to accelerate through the year, driven by seasonality in travel money and operational efficiency gains.

• Outlook assumes Intermex acquisition closes in Q2 2026.

• Effective tax rate expected at 20%-22% GAAP, 13%-15% adjusted.