Third Quarter 2025 Financial Results October 23, 2025 Western Union Tom Hadley Vice President of Investor Relations 2 Western Union Forward-Looking Statements This presentation 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 thos ...

Financial Performance - Third quarter 2025 revenue was $1.03 billion, flat compared to the prior year, with adjusted revenue down 1% excluding Iraq[2] - GAAP EPS for Q3 was $0.43, down 45% from $0.78 in the prior year, while adjusted EPS increased to $0.47 from $0.46[3][4] - The Company expects full year 2025 GAAP revenue between $4,085 million and $4,185 million, and adjusted revenue between $4,035 million and $4,135 million[8] - Net income for Q3 was $139.6 million, a decrease of 47% from $264.8 million in the prior year[20] - Total consolidated revenues for the nine months ended September 30, 2025, decreased by 3% to $3,042.3 million compared to $3,151.5 million in the same period of 2024[26] - Consumer Money Transfer revenues declined by 8% year-over-year to $2,635.9 million for the nine months ended September 30, 2025, down from $2,859.2 million in 2024[26] - Net income for the nine months ended September 30, 2025, was $385.2 million, a decrease of 30% from $548.5 million in 2024[24] - Total revenues (GAAP) for FY2024 were $4,209.7 million, with a YoY decrease of 3%[40] - Revenues for Q3 2024 (GAAP) were $932.2 million, reflecting a year-over-year decline of 9%[48] Revenue Growth and Segments - Consumer Services revenue grew 49% on both a reported and adjusted basis, driven by the expansion of the Travel Money business and higher revenues from Argentina bill pay[9] - Branded Digital revenue increased by 7% on a reported basis and 6% on an adjusted basis, with transaction growth of 12% compared to the prior year[9] - The company reported a decrease in CMT segment revenue by 6% on a reported basis, with adjusted revenues and transactions declining 7% and 2%, respectively[9] - The company reported a 49% increase in Consumer Services revenues for the three months ended September 30, 2025, reaching $154.6 million compared to $103.8 million in 2024[26] - Consumer Services segment revenues increased by 32% YoY in Q3 2024 and 56% in Q4 2024, with adjusted revenues showing a 15% increase in Q3 2024[35] - The Consumer Money Transfer segment accounted for 90% of total company revenue in Q3 2024[35] Operating Metrics - Operating margin for Q3 was 20%, up from 16% in the previous year, benefiting from improved cost efficiencies[9] - Operating income for the total segments increased by 4% to $572.0 million for the nine months ended September 30, 2025, compared to $547.7 million in 2024[26] - The operating margin for the Consumer Services segment was reported at 9% in Q3 2024 and 11% in Q4 2024[35] - GAAP operating income for 3Q24 was $164.9 million, with an adjusted operating income of $197.5 million, reflecting an operating margin of 16% and an adjusted operating margin of 19%[42] Tax and Expenses - The GAAP effective tax rate was 17%, compared to a benefit of 95% in the prior year, primarily due to an IRS settlement[9] - Total expenses for Q3 decreased by 5% to $830.7 million, driven by a 14% reduction in selling, general, and administrative expenses[20] - The effective tax rate (GAAP) for 3Q24 was -95%, while the adjusted effective tax rate (non-GAAP) was 8%[46] Cash and Liabilities - Cash and cash equivalents at the end of the period were $1,375.4 million, a decrease from $1,427.6 million at the end of September 30, 2024[24] - Total liabilities decreased to $6,858.6 million as of September 30, 2025, from $7,401.6 million as of December 31, 2024[22] - The company’s total stockholders' equity decreased to $925.4 million as of September 30, 2025, from $968.9 million as of December 31, 2024[22] Regional Performance - North America region revenues decreased by 3% YoY in Q3 2024 and 5% in Q4 2024, with adjusted revenues showing a similar trend[33] - EU & CIS region revenues increased by 0% YoY in Q3 2024 and 3% in Q4 2024, with adjusted revenues showing a 1% increase in Q3 2024[33] - MEASA region revenues saw a significant decline of 32% YoY in Q3 2024 and 10% in Q4 2024, with adjusted revenues down 31% in Q3 2024[33] - APAC region revenues decreased by 2% YoY in Q3 2024 and 6% in Q4 2024, with adjusted revenues showing a 1% increase in Q3 2024[33] Future Projections - The company anticipates continued growth in adjusted operating income, with projections of $206.2 million for 3Q25[42] - The company projects FY 2025 revenues (GAAP) in the range of $4,085 million to $4,185 million[50] - Adjusted revenues (non-GAAP) for FY 2025 are expected to be between $4,035 million and $4,135 million[50] - Operating margin (GAAP) for FY 2025 is forecasted to be between 18% and 20%[50] - Earnings per share (GAAP) for FY 2025 is projected to be between $1.45 and $1.55[50] - The effective tax rate (GAAP) for FY 2025 is estimated to be between 19% and 21%[50] Operational Changes and Challenges - The company will no longer adjust for the estimated impact of Argentinian hyperinflation starting Q2 2025, as inflation has moderated[36] - The Company experienced a significant increase in business originating from Iraq starting March 2023, attributed to policy changes by U.S. and Iraqi regulators[54] - In July 2023, the U.S. Treasury and the Federal Reserve Bank of New York banned 14 Iraqi banks from conducting U.S. dollar transactions, impacting the Company's operations[54] - The Central Bank of Iraq suspended the Company's largest agent in October 2023, although the agent was later reinstated[54] - Management believes that revenue measures excluding Iraq revenues provide better consistency and comparability to prior periods[54] - The Company reorganized its international operations in Q4 2024, recognizing deferred tax assets associated with this reorganization[54] - The non-cash recognition of deferred tax assets has been excluded from reported results due to its significance[54] - The Company excludes transactions and revenues generated from Iraq websites and mobile applications from the definition of Branded Digital due to significant volatility[54] - The North America region represents the Company's Consumer Money Transfer segment, which includes the United States and Canada[54] - The Middle East, Africa, and South Asia region includes India and certain South Asian countries, contributing to the Company's Consumer Money Transfer segment[54] - The Company focuses on factors it believes are most relevant to operations by excluding severance costs from its measurement of non-GAAP profitability[54]

Core Viewpoint - Western Union is expected to report a decline in quarterly earnings and revenues, indicating potential challenges in its financial performance [1]. Financial Performance Estimates - Analysts predict quarterly earnings of $0.43 per share, a decrease of 6.5% year-over-year [1]. - Revenue is forecasted at $1.02 billion, reflecting a year-over-year decrease of 1.4% [1]. - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a stable outlook among analysts [2]. Key Metrics Analysis - Estimated 'Revenue- Consumer Services' is projected at $127.65 million, showing a significant increase of 23% from the previous year [5]. - 'Revenue- Consumer Money Transfer' is expected to be $890.79 million, which represents a decline of 4.4% compared to the prior-year quarter [5]. - Total 'Consumer Money Transfer transactions' are estimated to be 71.50 million, down from 72.60 million a year ago [6]. Market Performance - Over the past month, Western Union shares have increased by 1.8%, outperforming the Zacks S&P 500 composite, which rose by 1.1% [6]. - The company holds a Zacks Rank of 4 (Sell), suggesting it may underperform the overall market in the near future [6].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Company Ratings and Analyst Insights - PennyMac Mortgage Investment Trust (NYSE:PMT) has a dividend yield of 13.50%. Analyst Bose George from Keefe, Bruyette & Woods downgraded the stock from Outperform to Market Perform, reducing the price target from $14.5 to $13.5 [7] - KKR Real Estate Finance Trust Inc (NYSE:KREF) has a dividend yield of 11.64%. JP Morgan analyst Richard Shane maintained an Overweight rating but decreased the price target from $11.5 to $9.5 [7] - Western Union Co (NYSE:WU) has a dividend yield of 11.55%. Keefe, Bruyette & Woods analyst Sanjay Sakhrani maintained a Market Perform rating and cut the price target from $10 to $9 [7] Group 2: Recent Company News - PennyMac Mortgage Investment Trust announced that Kevin Ryan will join as senior managing director and chief strategy officer [7] - KKR Real Estate Finance Trust is set to release its financial results for the third quarter on October 21 [7] - Western Union will announce its third quarter results on October 23 [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: PennyMac Mortgage Investment Trust (PMT) - PMT has a dividend yield of 13.50% [7] - Analyst Bose George from Keefe, Bruyette & Woods downgraded PMT from Outperform to Market Perform, reducing the price target from $14.5 to $13.5 [7] - Analyst Mike Kaye from Wells Fargo maintained an Equal-Weight rating and cut the price target from $14 to $13 [7] - Recent news includes the appointment of Kevin Ryan as senior managing director and chief strategy officer [7] Group 2: KKR Real Estate Finance Trust Inc (KREF) - KREF has a dividend yield of 11.64% [7] - Analyst Richard Shane from JP Morgan maintained an Overweight rating and decreased the price target from $11.5 to $9.5 [7] - Analyst Jade Rahmani from Keefe, Bruyette & Woods maintained an Outperform rating and cut the price target from $13 to $12.25 [7] - KREF is set to release its financial results for Q3 on October 21 [7] Group 3: Western Union Co (WU) - WU has a dividend yield of 11.55% [7] - Analyst Sanjay Sakhrani from Keefe, Bruyette & Woods maintained a Market Perform rating and cut the price target from $10 to $9 [7] - Analyst Ramsey El-Assal from Barclays maintained an Underweight rating and slashed the price target from $10 to $8 [7] - WU will release its third-quarter results on October 23 [7]

DENVER and MIAMI, Oct. 07, 2025 (GLOBE NEWSWIRE) -- The Western Union Company (“Western Union”) (NYSE: WU) and International Money Express, Inc. (“Intermex”) (NASDAQ: IMXI) announced today the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with Western Union’s planned acquisition of Intermex. The expiration of the waiting period represents an important regulatory approval for the completion of the planned acquisition, which was first announced e ...

Western Union (WU) ended the recent trading session at $8.08, demonstrating a +1.13% change from the preceding day's closing price. This change outpaced the S&P 500's 0.34% gain on the day. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%. Prior to today's trading, shares of the money transfer company had lost 8.69% lagged the Business Services sector's gain of 0.7% and the S&P 500's gain of 3.54%.The investment community will be paying close attent ...

Group 1 - The Western Union Company has experienced a 75% decline in share price over the past five and a half years, primarily due to competitive pressures affecting its business [2] - The company operates in the cross-border money transfer sector, which has seen increased competition impacting its market position [2] Group 2 - The Insiders Forum focuses on small and mid-cap stocks with significant insider purchases, aiming to outperform the Russell 2000 benchmark [2]

Group 1 - The Western Union Company has experienced a 75% decline in its share price over the past five and a half years, primarily due to competitive pressures affecting its business [2] - The company operates in the cross-border money transfer sector, which has seen increased competition impacting its market position [2] - The Insiders Forum focuses on small and mid-cap stocks with significant insider purchases, aiming to outperform the Russell 2000 benchmark [2]

Company Overview - The Western Union Company (NYSE: WU) provides global money transfer and payment solutions through various channels including retail agents, digital platforms, and mobile services [1] - The company offers a range of services such as bill payments, money orders, prepaid cards, foreign exchange, and digital wallet services [1] Recent Developments - On September 9, Western Union formed a partnership with dLocal (NASDAQ: DLO) to enhance digital payment options for money transfers in Latin America [1] - This partnership allows customers to utilize local payment methods like bank transfers and cards on Western Union's online platforms, resulting in increased choice, faster transfers, and lower costs [1] - The deal aligns with the region's growing shift towards digital services, following record remittance levels of $161 billion in 2024 [1] Market Sentiment - Jim Cramer expressed a negative outlook on Western Union, highlighting the lack of growth despite its high yield, indicating a preference for investments that offer growth and compounded income [1]