Financial Data and Key Metrics Changes - The company reported adjusted revenue of $1.033 billion for Q3 2025, reflecting a 1% decline year-over-year when excluding impacts from Iraq [6][25] - Adjusted earnings per share (EPS) was $0.47, slightly up from $0.46 in the same quarter last year [9][25] - Adjusted operating margins improved to 20%, up from 19% in the prior year period, benefiting from cost discipline [25][26] Business Line Data and Key Metrics Changes - Consumer services adjusted revenue surged by 49% in Q3, driven by the travel money business and the acquisition of Eurochange [9][26] - Consumer money transfer transactions declined by 2.5% in the quarter, excluding Iraq, while average principal per transaction increased by approximately 6% [7][27] - The branded digital business saw a 12% increase in transactions and a 6% rise in adjusted revenue, marking the eighth consecutive quarter of mid-single-digit or better revenue growth [8][27] Market Data and Key Metrics Changes - The retail business in North America faced headwinds due to geopolitical factors, while Europe experienced mid-single-digit transaction and revenue growth [4][8] - Transaction growth in the U.S. to Mexico corridor showed signs of improvement from previous lows, with recent data indicating an 8% decline, an improvement from June lows [12][11] - The company noted positive transaction growth to countries like Brazil, India, and Vietnam, while facing declines in corridors such as Mexico and El Salvador [11][12] Company Strategy and Development Direction - The company aims to enhance its retail model in the U.S. and is optimistic about the long-term outlook, expecting stabilization in migration patterns [5][6] - The acquisition of Intermex is expected to accelerate the company's progress in building a competitive retail presence [5][6] - The company is focused on becoming more digital-centric, with over 55% of money transactions now being digital [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the global economic conditions, noting declining inflation rates and stable GDP outlooks [10] - The company is adapting to changing migration policies and customer behaviors, which have influenced transaction frequencies [11][12] - Management highlighted the importance of digital transformation and the potential for growth in digital assets, particularly following regulatory changes [20][21] Other Important Information - The company generated over $400 million in operating cash flow year-to-date, with a strong balance sheet showing cash and cash equivalents of approximately $1 billion [31] - The company returned over $120 million to shareholders through dividends and share repurchases in Q3 [31] - The 2025 outlook includes adjusted revenue guidance of $4.035 billion to $4.135 billion, with expectations leaning towards the lower end of the range [32][33] Q&A Session Summary Question: Recent trends in retail and North America segment - Management noted improvements from lows in mid-summer, particularly in Mexico, but emphasized that trends remain lumpy [35][37] Question: Visibility on travel money growth - The company expects travel money to grow significantly, driven by the acquisition of Eurochange and expansion into new markets [38][39] Question: Long-term digital penetration - Management anticipates continued growth in digital transactions, with a stable retail business expected to coexist [54][55] Question: Contribution from Eurochange - Eurochange contributed nearly half of the overall growth in consumer services this quarter, with expectations for sustained growth [84]

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 Insights - Upslope Capital Management reported a strong performance in Q3 2025, achieving a net return of +8.8%, outperforming the S&P Midcap 400 ETF and HFRX Equity Hedge Index [1] - The fund highlighted International Money Express, Inc. (NASDAQ:IMXI) as a key stock, noting its recent performance and market capitalization [2] Company Overview - International Money Express, Inc. (NASDAQ:IMXI) is a financial technology company based in Miami, Florida, specializing in money remittance services [2][3] - As of October 22, 2025, IMXI's stock closed at $14.76 per share, with a market capitalization of approximately $1.44 billion [2] Performance Analysis - IMXI experienced a one-month return of 4.26%, but its shares have declined by 15.78% over the past 52 weeks [2] - Upslope Capital Management had been monitoring IMXI for several quarters and had a small starter position before increasing its investment due to perceived acquisition potential [3] Strategic Insights - The company faced pressure on its stock price due to uncertainties surrounding immigration policy, which raised concerns about its financial stability [3] - Following the announcement of Western Union's acquisition of IMXI at a 60% premium, Upslope sold most of its position, indicating a successful short-term investment strategy [3] Hedge Fund Interest - At the end of Q2 2025, 57 hedge fund portfolios included IMXI, reflecting a slight increase from the previous quarter [4] - Despite the interest in IMXI, some analysts suggest that certain AI stocks may offer better upside potential with less downside risk [4]

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 Viewpoint - The article critiques the speculative nature of quantum computing stocks, particularly IonQ, while highlighting the potential of companies like Remitly Global and Portillo's that are currently creating value in the market [2][12]. Group 1: Quantum Computing Stocks - IonQ has seen a significant increase in stock price, up hundreds of percent in the last year, reaching a market cap of $25 billion despite generating less than $100 million in revenue [2]. - The company is characterized as highly speculative with little to no viable business model, making it a risky investment [2][12]. Group 2: Remitly Global - Remitly has experienced a 34% year-over-year revenue growth last quarter, with a 40% increase in send volume, indicating strong performance despite concerns over immigration policies affecting cross-border payments [6][5]. - The company generated $1.46 billion in trailing revenue with an EBIT of $27 million, showcasing its path to profitability and operational leverage compared to IonQ's significant losses [7]. - Remitly is positioned to capture market share from traditional players due to its low fees and user-friendly mobile application [6]. Group 3: Portillo's - Portillo's is expanding its restaurant chain into new markets like Texas and Florida, despite facing challenges from a slowdown in consumer spending [8]. - The company reported a modest 3.6% annual revenue growth, with plans for significant expansion in the coming years as new store openings are scheduled for the latter half of 2025 [9]. - Portillo's generated $65 million in EBIT on $728 million in revenue over the last 12 months, contrasting sharply with IonQ's $53 million in revenue and $351 million in losses [11].

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]

User Acquisition - Solana onboarded 2.9 million users in Bolivia through Viva mobile carrier integration [1] - 67% of Bolivia's population is unbanked, but has access to mobile phones [1] Transaction Cost Reduction - Users can send remittances for $0.00025 instead of Western Union's 12% fees [1] Industry Focus - The industry is capturing actual economic activity through mobile carriers, rather than waiting for ETF approvals [1]