Core Viewpoint - Western Union is acquiring International Money Express, Inc. (Intermex) for $16.00 per share in an all-cash transaction, totaling approximately $500 million, aimed at strengthening its retail presence in North America and expanding its digital customer acquisition efforts [1][5][6] Strategic Rationale and Benefits - The acquisition enhances Western Union's retail offering in the U.S. and expands its market coverage in high-potential geographies, leveraging Intermex's market knowledge and agent relationships [2][8] - It is expected to be immediately accretive to Western Union's adjusted EPS by more than $0.10 in the first full year post-close and generate approximately $30 million in annual run-rate cost synergies within the first 24 months [6][8] - The combination of both companies is positioned to drive growth across North America by integrating Intermex's capabilities into Western Union's existing network [3][8] Transaction Details - The acquisition price of $16.00 per share represents a roughly 50% premium to Intermex's 90-day volume-weighted average price [5] - The transaction has been unanimously approved by the boards of directors of both Western Union and Intermex, with recommendations for stockholders to vote in favor of the merger [7] Integration and Future Plans - The transaction is expected to close in mid-2026, subject to customary closing conditions and regulatory approvals, including stockholder approval from Intermex [9] - Following completion, a coordinated integration plan will be implemented to ensure a smooth transition for customers, agents, and partners [9]

"Zambia's digitally savvy population of over 20 million is driving a remarkable shift toward mobile-first financial solutions," said Mohamed Touhami el Ouazzani, Western Union'sregional vice president of Africa. Western Union is joining forces with two African FinTechs to provide international money transfer services. By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy ...

Core Insights - Shares of The Western Union Company (WU) have decreased by 4.1% following the release of second-quarter 2025 results, which were weaker than expected due to poor performance in the CMT segment, reduced revenues from Iraq, and a decline in the North America retail business. However, improvements in the consumer services unit and branded digital business, along with lower operating expenses, partially mitigated these negatives [1][8]. Financial Performance - WU reported adjusted earnings per share (EPS) of 42 cents for Q2 2025, missing the Zacks Consensus Estimate by 4.6%, and representing a 4.5% decline year over year [2]. - Total revenues for the quarter were $1 billion, down 4% on a reported basis and also missing the Zacks Consensus Estimate by 0.9% [2]. - The adjusted operating margin remained stable at 19% compared to the previous year, while total expenses decreased by 5% year over year to $833.4 million, which was lower than the estimated $834.8 million [3]. - Operating income rose by 1% year over year to $192.7 million, although it fell short of the estimate of $193.4 million [3]. Segment Analysis - The CMT segment's revenues declined by 8% to $885 million, missing the Zacks Consensus Estimate of $919.7 million. Operating income for this segment fell by 12% year over year to $167.7 million, also missing consensus estimates [4]. - Transactions within the CMT segment decreased by 3% year over year, despite a 9% growth in the Branded Digital business, which accounted for 29% of CMT's revenues and improved by 6% [5]. - The Consumer Services (CS) unit reported revenues of $141.1 million, a significant increase of 39% year over year, surpassing the Zacks Consensus Estimate of $115.1 million [5][6]. Financial Position - As of June 30, 2025, WU had cash and cash equivalents of $1 billion, down from $1.5 billion at the end of 2024. Total assets decreased to $8 billion from $8.4 billion [7]. - Borrowings were reduced to $2.7 billion from $2.9 billion as of December 31, 2024, while total stockholders' equity declined to $883.6 million from $968.9 million at the end of 2024 [7]. Outlook - WU has revised its 2025 adjusted revenue and EPS outlook, now forecasting revenues between $4.035 billion and $4.135 billion, indicating a potential 2.7% decline from 2024. Adjusted EPS is now expected to be in the range of $1.65-$1.75, down from the previous estimate of $1.75-$1.85 [11]. - The forecast for GAAP EPS has also been lowered to a range of $1.45-$1.55, reflecting a 45.3% decline from the 2024 figure of $2.74 [12]. Capital Deployment - In Q2 2025, WU returned over $150 million to shareholders through dividends and share buybacks [10].

Core Insights - Western Union reported quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.44 per share, and down from $0.44 per share a year ago, representing an earnings surprise of -4.55% [1] - The company posted revenues of $1.03 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.91%, and down from $1.07 billion year-over-year [2] - Western Union shares have declined approximately 19.1% year-to-date, contrasting with the S&P 500's gain of 8.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $1.04 billion, and for the current fiscal year, it is $1.76 on revenues of $4.12 billion [7] - The estimate revisions trend for Western Union was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial Transaction Services industry, to which Western Union belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - The company reported GAAP revenue of $1 billion for the second quarter, with adjusted revenue down 1% year-over-year when excluding Iraq [23][24] - Adjusted earnings per share (EPS) was $0.42 compared to $0.44 in the same quarter last year [4][24] - Adjusted operating margin remained at 19% for both the current and prior year [23][24] Business Line Data and Key Metrics Changes - Consumer money transfer (CMT) transactions declined by 3% in the quarter, with a 2% decline when excluding Iraq [25] - The branded digital business saw a 9% increase in transactions and a 6% increase in adjusted revenue [4][25] - Consumer services adjusted revenue grew by 41%, driven by the travel money business and the acquisition of EuroChange [31] Market Data and Key Metrics Changes - The Americas retail business faced challenges due to geopolitical issues, while Europe experienced mid-single-digit transaction and revenue growth [3][29] - The travel money business is projected to approach $100 million in revenue this year, a significant increase from previous years [3] - Transaction growth in the U.S. to Mexico corridor, a key market, has slowed, impacting overall performance [40][47] Company Strategy and Development Direction - The company is focused on its Evolve 2025 strategy, aiming for sustainable, profitable revenue growth and enhanced customer experience [2][21] - There is a commitment to digital transformation, particularly in response to new remittance taxes, which is expected to accelerate growth in digital and wallet businesses [28][35] - The company is exploring stablecoin opportunities to modernize money movement and improve liquidity management [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite current macroeconomic challenges, emphasizing the resilience of their customer base [2][21] - The impact of U.S. immigration policies is creating short-term headwinds, but management believes in the long-term potential of their customer segments [7][8] - The company is actively working on enhancing customer experience and compliance in light of recent legislative changes [9][10] Other Important Information - The company has saved $40 million year-to-date through operational efficiency programs, completing its cost-saving initiatives ahead of schedule [31] - Cash flow from operations was $148 million year-to-date, a significant increase from the prior year [32] - The company maintains a strong balance sheet with $1 billion in cash and cash equivalents and $2.7 billion in debt [34] Q&A Session Summary Question: Contribution of EuroChange acquisition to revenue growth - The EuroChange acquisition contributed approximately 2% to revenue growth in the quarter, trending better than initially anticipated [37][38] Question: Impact of immigration crackdown on North America - There has not been a significant shift from retail to digital channels; both have seen a decline in transaction volume [40] Question: Deceleration in digital transactions - The slowdown in digital transactions is primarily observed in U.S. outbound to Latin America, particularly Mexico [45][47] Question: Visibility into political headwinds affecting LatAm and US-Mexico business - The impact is somewhat volatile, with fluctuations in customer willingness to transact based on media attention and enforcement activity [55] Question: Demand for stablecoin utilization - There is interest from platform providers for stablecoin infrastructure, with ongoing discussions about B2B solutions for efficient money movement [56][57] Question: Adjustments to Evolve 2025 strategy due to immigration policy - The company remains committed to the Evolve 2025 strategy, focusing on customer resilience and expanding non-remittance products [66][67] Question: Fraud losses in the quarter - Fraud losses were related to a duplicate payment issue during the implementation of a new payment network, but it did not significantly impact margins [72][74] Question: Capital allocation strategy regarding buybacks and dividends - There are no changes to the current capital allocation strategy; the company remains committed to both buybacks and dividends [90] Question: Transfer of European successes to the U.S. market - The company is actively working to implement successful strategies from Europe in the U.S. market [98][99]

Financial Data and Key Metrics Changes - In the second quarter, adjusted revenue was reported at $1,026 million, reflecting a decline of 1% year over year when excluding Iraq impacts [2][21] - Adjusted earnings per share (EPS) decreased to $0.42 from $0.44 in the same quarter last year [3][22] - Adjusted operating margin remained stable at 19% for both the current and prior year [21][22] Business Line Data and Key Metrics Changes - Consumer money transfer (CMT) transactions declined by 3% in the quarter, with a 2% decline when excluding Iraq [22][23] - The branded digital business saw a 9% increase in transactions and a 6% increase in adjusted revenue [3][23] - Consumer services adjusted revenue grew by 41%, driven by the travel money business and the acquisition of EuroChange [30] Market Data and Key Metrics Changes - Retail business in The Americas faced challenges due to geopolitical factors, while retail in Europe showed mid-single-digit transaction and revenue growth [2][27] - The travel money business is projected to approach $100 million in revenue this year, a significant increase from previous years [2][3] - The U.S. to Mexico corridor, a major revenue driver, experienced a slowdown in both retail and digital transactions [39][45] Company Strategy and Development Direction - The company is focused on its Evolve 2025 strategy, aiming for sustainable, profitable revenue growth and enhancing customer experience [1][19] - There is a commitment to increasing digital transformation and expanding the digital wallet offerings in response to market changes [11][62] - The company is exploring stablecoin opportunities to modernize money movement and improve operational efficiency [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite current geopolitical challenges affecting transaction volumes [5][19] - The company is adapting to immigration policy changes that have created short-term headwinds, particularly in the U.S. market [6][62] - Future growth is expected to come from digital services and non-remittance products as core remittance growth stabilizes [62] Other Important Information - The company generated $148 million in cash flow from operations year to date, a significant increase from $60 million in the prior year [31] - Capital expenditures were reduced by 15% year over year, indicating a focus on strategic investments [32] - The company returned over $150 million to shareholders through dividends and share repurchases in the second quarter [32] Q&A Session Summary Question: Contribution of EuroChange acquisition to revenue growth - The EuroChange acquisition contributed approximately 2% to revenue growth in the quarter, exceeding initial expectations [36][38] Question: Impact of immigration crackdown on North America - There was no significant shift from retail to digital channels; both experienced a decline in transaction volumes [39] Question: Deceleration in digital transactions - The slowdown in digital transactions is primarily seen in U.S. outbound to Latin America, particularly Mexico [41][43] Question: Demand for stablecoin utilization - There is growing interest in stablecoin infrastructure, particularly in regions with currency controls, indicating potential for future growth [54][56] Question: Visibility into political headwinds affecting business - The impact of political headwinds is volatile, with fluctuations in transaction volumes observed [51][52] Question: Fraud losses in the quarter - Fraud losses were attributed to a duplicate payment issue during the implementation of a new payment network, but it did not significantly impact margins [68][70] Question: Changes in capital allocation strategy - There are currently no changes to the capital allocation strategy regarding buybacks versus dividends [86]

Second Quarter 2025 Financial Performance - GAAP revenue reached $103 billion [18], while adjusted revenue, excluding Iraq, experienced a decrease of 1% [47] - GAAP operating margin stood at 19% [18], mirroring the adjusted operating margin [18] - GAAP EPS was $037 [18], with adjusted EPS at $042 [18] Consumer Money Transfer (CMT) Segment - CMT adjusted revenue, excluding Iraq, declined by 6% [55] - CMT transaction growth, excluding Iraq, decreased by 2% [55] - CMT cross-border principal growth (constant currency) ex Iraq increased by 4% [55] - Branded Digital adjusted revenue grew by 6% [55], with transaction growth at 9% [55] Consumer Services Segment - Adjusted revenue increased significantly by 41% [15] - The segment achieved a solid operating margin of 22% [61] Financial Outlook for 2025 - The company anticipates GAAP revenue between $4085 billion and $4185 billion [71] - Adjusted revenue is projected to be in the range of $4035 billion to $4135 billion [72] - GAAP EPS is expected to be $145 to $155 [71], while adjusted EPS is forecasted at $165 to $175 [72]

FOR IMMEDIATE RELEASE Western Union Reports Second Quarter 2025 Results DENVER, July 28, 2025 – The Western Union Company (the "Company" or "Western Union") (NYSE: WU) today reported second quarter 2025 financial results. The Company's second-quarter revenue of $1.03 billion decreased 4% on a reported basis and adjusted revenue, excluding Iraq, decreased 1%. The decrease in revenue was largely driven by a slowdown in our North America retail business and lower revenue from Iraq, partially offset by growth i ...

= UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-32903 THE WESTERN UNION COMPANY (Exact name of registrant as specified in its charter) Delaware (State or Other Jurisdiction of Incorpora ...

Core Viewpoint - The market is optimistic about Western Union's plans to integrate stablecoins, but there is skepticism regarding the long-term implications of this strategy [1]. Group 1: Company Analysis - Western Union (WU) is exploring the integration of stablecoins into its operations, which has generated significant market enthusiasm [1]. - The focus is on identifying companies with durable competitive advantages and strong balance sheets, suggesting that WU may be evaluated on these criteria [1].