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].

Group 1 - The year 2025 presents complexities for investors as the market approaches all-time highs, with concerns that certain sectors may be reaching bubble levels, indicating potential risks for new investments [1] - The article emphasizes a contrarian investment philosophy, focusing on identifying underappreciated companies that can deliver value to investors [1] Group 2 - The author has extensive experience in investment analysis, particularly in deep-discount value plays, and has a history of writing for various financial publications [1]

Company Performance - Western Union's stock closed at $8.82, reflecting a +2.56% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.78% [1] - The company is expected to report an EPS of $0.44 for the upcoming earnings disclosure on July 28, 2025, indicating no change from the same quarter last year, with a forecasted quarterly revenue of $1.04 billion, down 2.89% year-over-year [2] - For the annual period, earnings are anticipated to be $1.76 per share and revenue at $4.12 billion, representing shifts of +1.15% and -2.07% respectively from the previous year [3] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Western Union reflect evolving short-term business trends, with positive revisions indicating optimism about the business outlook [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places Western Union at 3 (Hold), with the consensus EPS estimate moving 0.43% lower over the past month [5] - Western Union has a Forward P/E ratio of 4.88, significantly lower than the industry average of 16.24, suggesting it is trading at a discount [6] Industry Context - The Financial Transaction Services industry, part of the Business Services sector, has a Zacks Industry Rank of 161, placing it in the bottom 35% of over 250 industries [8] - The average PEG ratio for Western Union is 1.48, compared to the industry average of 1.37, indicating a relatively higher valuation based on expected earnings growth [7]

Core Viewpoint - Analysts expect Western Union to report quarterly earnings of $0.44 per share, indicating no change from the previous year, with revenues projected at $1.04 billion, down 2.9% year-over-year [1]. Earnings Estimates - There has been a 0.3% upward revision in the consensus EPS estimate over the last 30 days, reflecting analysts' reassessment of their forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions to the stock, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts predict 'Revenue- Consumer Services' to be $115.08 million, representing a year-over-year increase of 13.5% [5]. - The estimate for 'Revenue- Consumer Money Transfer' is $919.69 million, indicating a decline of 4.7% compared to the previous year [5]. Transaction Estimates - The consensus estimate for 'Consumer Money Transfer transactions - Total' is 73.04 million, slightly down from 73.30 million reported in the same quarter last year [6]. Market Performance - Western Union shares have returned +0.5% over the past month, while the Zacks S&P 500 composite has increased by +5.9%, suggesting that WU is expected to perform in line with the overall market [6].

Company Overview - Western Union (WU) shares increased by 6.2% to close at $8.6, supported by strong trading volume, contrasting with a 4.1% decline over the past four weeks [1][2] - The company is focusing on stablecoins as a growth area, aiming to enhance cross-border money transfers and maintain value stability in volatile markets [2] Earnings Expectations - WU is projected to report quarterly earnings of $0.44 per share, unchanged from the previous year, with revenues expected to be $1.04 billion, a decrease of 2.9% year-over-year [3] - The consensus EPS estimate has been slightly revised higher in the last 30 days, indicating a potential for price appreciation [4] Industry Context - Western Union operates within the Zacks Financial Transaction Services industry, which includes other companies like Shift4 Payments (FOUR) [5] - Shift4 Payments has seen a 13.2% return over the past month, with its EPS estimate for the upcoming report revised down by 1.2% to $1.23, reflecting a year-over-year increase of 28.1% [6]

Company Performance - Western Union's stock decreased by 2.79% to $8.35, underperforming the S&P 500, which fell by 0.33% [1] - Over the past month, Western Union shares have declined by 5.91%, while the Business Services sector lost 2.01% and the S&P 500 gained 4.07% [1] Upcoming Earnings - The company is expected to report an EPS of $0.44, unchanged from the prior-year quarter, with projected net sales of $1.03 billion, down 3.59% from the previous year [2] - For the full year, analysts expect earnings of $1.77 per share and revenue of $4.12 billion, reflecting changes of +1.72% and -2.18% respectively from last year [3] Analyst Estimates - Recent changes in analyst estimates for Western Union are crucial as they indicate shifts in near-term business trends, with positive changes suggesting a favorable outlook on business health and profitability [4] - The Zacks Rank system, which considers estimate changes, currently rates Western Union as 3 (Hold) [6] Valuation Metrics - Western Union is trading at a Forward P/E ratio of 4.86, significantly lower than the industry average Forward P/E of 16.76 [7] - The company has a PEG ratio of 2.43, compared to the Financial Transaction Services industry's average PEG ratio of 1.33 [8] Industry Context - The Financial Transaction Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 65, placing it in the top 27% of over 250 industries [9]