Core Insights - The company plans to launch its own stablecoin in 2026 to facilitate global money transfers, which may reduce customer costs and expedite transaction settlements [1] Group 1 - The stablecoin initiative is aimed at enhancing the efficiency of cross-border transactions [1] - The launch is expected to occur in 2026, indicating a strategic long-term investment in digital currency [1] - The move could potentially lower costs for customers, making financial transactions more accessible [1]

Core Insights - Western Union Company (WU) reported third-quarter 2025 adjusted earnings per share (EPS) of 47 cents, exceeding the Zacks Consensus Estimate by 9.3% and reflecting a year-over-year growth of 2.2% [1][9] - Total revenues remained flat at $1 billion, surpassing the consensus mark by 1.2% [1][9] Financial Performance - The adjusted operating margin improved by 100 basis points year over year to 20%, driven by cost efficiencies [3] - Total expenses decreased by 5% year over year to $830.7 million, lower than the estimated $833.7 million [3] - Operating income increased by 22% year over year to $201.9 million, exceeding the estimate of $191.3 million [4] Segment Analysis - The Consumer Money Transfer (CMT) segment reported revenues of $878 million, down 6% year over year, falling short of both the Zacks Consensus Estimate of $891 million and the estimate of $903.7 million [5] - Operating income for the CMT segment declined by 9% year over year to $172.2 million, although it beat the consensus mark of $171 million [5] - The Branded Digital business experienced a 12% transaction growth, with revenues rising 7% on a reported basis [6] - The Consumer Services (CS) segment's revenues surged by 49% year over year to $154.6 million, significantly exceeding the Zacks Consensus Estimate of $128 million [7] Financial Position - As of September 30, 2025, Western Union had cash and cash equivalents of $947.8 million, a decrease of 35.7% from the end of 2024 [8] - Total assets declined by 7% to $7.8 billion, while borrowings decreased by 11.9% to $2.6 billion [8] Shareholder Returns - In the first nine months of 2025, Western Union returned $230 million to shareholders through dividends and $200 million via share buybacks [11] Future Outlook - Management maintains guidance for adjusted revenues between $4.035 billion and $4.135 billion, with adjusted EPS forecasted in the range of $1.65-$1.75, indicating a 2.3% decline from 2024 [12]

Financial Data and Key Metrics Changes - The company reported adjusted revenue of $1,033 million for Q3 2025, reflecting a 1% decline year-over-year when excluding Iraq [7][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 [25][26] Business Line Data and Key Metrics Changes - Consumer services adjusted revenue surged by 49% in Q3, driven by the acquisition of eurochange and a strong travel money business [9][26] - Consumer money transfer (CMT) transactions declined by 3% in the quarter, or 2% excluding Iraq, with higher average principal per transaction increasing by approximately 6% [28][29] - 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 [9][29] 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 [5][8] - Transaction growth in the U.S. to Mexico corridor showed signs of improvement from previous lows, although it remains a critical area to monitor [12][84] - 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 [6][7] - The acquisition of Intermex is expected to accelerate the company's retail strategy and improve its competitive positioning [6][81] - The company is focused on becoming more digital-centric, with over 55% of money transactions now being digital [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macroeconomic environment, citing declining inflation rates and stable GDP outlooks [10] - The company anticipates that global migration patterns will adapt rather than disappear, maintaining a strong connection to human mobility [13][14] - Management highlighted the importance of digital transformation and the potential for integrating digital assets into their business model [21][22] 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 2025 outlook includes adjusted revenue guidance of $4,035 million to $4,135 million, with expectations to be at the lower end of this 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 the Mexico corridor, but emphasized that trends remain lumpy [38] Question: Visibility on travel money growth - Management indicated that travel money is expected to grow significantly, driven by the acquisition of eurochange and expansion into new markets [40][41] Question: Trends in LACA and North America - Management observed overall market stability and the lapping effects of previous declines due to elections in South America [55] Question: Digital transaction growth vs. revenue growth - Management explained that the acceleration in transactions was primarily due to partnerships in the Middle East, which typically have lower revenue per transaction [58][59] Question: Future of digital penetration - Management expects digital penetration to continue growing at double-digit rates, with significant opportunities in specific corridors [66][67] Question: Integration of Intermex model - Management intends to maintain the Intermex brand and model while integrating successful practices into their existing operations [81]

Financial Data and Key Metrics Changes - The company reported GAAP revenue of $1,033 million for the third quarter, with adjusted revenue down 1% year-over-year, excluding Iraq [7][32] - Adjusted earnings per share (EPS) increased to $0.47 from $0.46 in the prior year, benefiting from cost management and fewer shares outstanding [9][33] - Adjusted operating margins improved to 20%, up from 19% in the prior year, primarily due to cost discipline [32] Business Line Data and Key Metrics Changes - Consumer Services adjusted revenue surged by 49%, driven by the travel money business and the acquisition of Eurochange [9][33] - The branded digital business saw a 12% increase in transactions and a 6% rise in adjusted revenue, marking eight consecutive quarters of revenue growth [8][37] - Consumer money transfer transactions declined by 2.5% year-over-year, with a 3% decline overall, attributed to U.S. immigration policies [7][35] Market Data and Key Metrics Changes - The retail business in North America faced challenges, particularly in the U.S. to Mexico corridor, while Europe experienced mid-single-digit transaction and revenue growth [4][8] - Transaction growth was positive in corridors like Brazil, India, and Vietnam, but flat to slightly negative in others such as the Philippines and Colombia [12][13] - The company noted improvements in transaction growth from lows in June, particularly in the U.S. to Mexico corridor [13][46] Company Strategy and Development Direction - The company aims to enhance its customer-centric approach and expand its retail model in the U.S., with the acquisition of Intermex expected to accelerate this strategy [6][9] - A focus on digital transformation is evident, with over 40% of principal moved through digital channels and a growing digital wallet strategy [17][19] - The company is exploring opportunities in digital assets, including stablecoin solutions, to enhance efficiency and customer experience [25][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term business prospects, anticipating stabilization in migration patterns and continued revenue growth [6][14] - The macroeconomic environment remains stable, with declining inflation rates and strong GDP outlooks, which are expected to improve further with interest rate cuts [10][14] - Management acknowledged the impact of recent policy changes on customer behavior but remains confident in the resilience of their customer base [11][12] 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 [39] - The company returned over $120 million to shareholders through dividends and share repurchases in the third quarter [40] - The 2025 outlook includes adjusted revenue guidance of $4.35 billion to $4.135 billion, with expectations for adjusted EPS in the range of $1.65 to $1.75 [41][42] Q&A Session Summary Question: Recent trends in retail and Americas segment - Management noted improvements from mid-summer lows, particularly in Mexico, with some corridors showing stabilization [47][48] Question: Visibility on travel money growth - The travel money business is expected to grow significantly, with strong management and expansion plans in place [49][50] Question: Trends in LACA and North America - Management observed overall market stability and easier comparisons in the latter part of the year, contributing to improved trends [62][64] Question: Digital transaction growth vs. revenue growth - The acceleration in transactions was primarily due to partnerships in the Middle East, which typically have lower revenue per transaction [66][67] Question: Future of digital penetration - Management expects digital penetration to continue growing, with opportunities for acceleration in specific corridors [75][78] Question: Contribution from Eurochange - The Eurochange acquisition contributed nearly half of the overall growth in Consumer Services this quarter [119]

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]

Financial Data and Key Metrics Changes - The company reported revenue of $1.1 billion, operating income of $195 million, adjusted EBITDA of $245 million, and adjusted earnings per share of $3.62, with revenue growth below expectations due to macroeconomic factors [2][3] - Consolidated operating margins expanded by approximately 40 basis points year over year [2] - Adjusted earnings per share grew 19% year over year, maintaining a trajectory for 12% to 16% earnings growth for 2025 [11][31] Business Line Data and Key Metrics Changes - The EFT segment saw revenue growth of 5%, with operating income and adjusted EBITDA each growing 4%, driven by expansion in developing markets [3][4] - The epay segment experienced a revenue decline of approximately 5%, while operating income increased by 4% and adjusted EBITDA by 2%, primarily due to a shift in the wholesale mobile top-up business [5][6] - Money transfer revenue grew 1% year over year, with a 32% increase in direct-to-consumer digital transactions, although operating income and adjusted EBITDA decreased by 2% and 1% respectively [6][28] Market Data and Key Metrics Changes - In Europe, tourism grew approximately 3.3% year over year, but spending patterns became more selective, impacting overall consumer spending [4][5] - Remittances to Mexico declined more than 12% year over year, highlighting the impact of immigration policy changes on transaction volumes [7][14] Company Strategy and Development Direction - The company is focused on two key revenue pillars: payment and transaction processing, and cross-border and foreign exchange, with ongoing investments in digital initiatives and partnerships [15][16] - The Dandelion platform is positioned as a leader in real-time cross-border payments, with new partnerships enhancing its capabilities [16][27] - The company plans to launch stablecoin-enabled use cases in early 2026, integrating digital assets into its payment network [18][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that global economic uncertainty and immigration policy changes have created transitory headwinds but expressed confidence in the underlying fundamentals of the business [13][14] - The company expects to finish the year with earnings growth similar to the third quarter, reaffirming its guidance of 12% to 16% year-over-year earnings growth [8][31] Other Important Information - The company ended the third quarter with $1.2 billion in unrestricted cash and $2.3 billion in debt, having completed a $1 billion convertible bond offering to strengthen financial flexibility [9][30] - Share repurchases have returned approximately 85% of annual earnings to shareholders over the past four years, with $130 million repurchased in the third quarter [10][30] Q&A Session Summary Question: Can you unpack the slight softness in the EFT segment? - Management noted that consumers are being cautious with spending due to increased costs in travel and economic uncertainty, impacting ATM transactions more than merchant acquiring [34][35] Question: What changed in the money transfer segment? - Management observed a choppy trend in transaction volumes, with October showing stronger performance compared to September, indicating potential recovery [36][37] Question: Can you discuss pricing trends in money transfer? - Pricing remained consistent overall, with some regional variations, particularly in the Middle East, but did not adversely impact third-quarter results [41][43] Question: What is the outlook for digital transaction penetration in money transfer? - The company aims to increase digital transaction penetration from 16% to higher levels, with a focus on omnichannel strategies to cater to customer preferences [44][46] Question: How does the company view future growth amidst macro challenges? - Management expressed confidence in achieving double-digit EPS growth in 2026, citing numerous growth opportunities and the strength of their asset base [80][81]

Financial Data and Key Metrics Changes - The company reported revenue of $1.1 billion, operating income of $195 million, adjusted EBITDA of $245 million, and adjusted earnings per share of $3.62, with revenue growth below expectations due to macroeconomic factors [2][3] - Consolidated operating margins expanded by approximately 40 basis points year-over-year [2] Business Line Data and Key Metrics Changes - The EFT segment saw revenue growth of 5%, with operating income and adjusted EBITDA each growing by 4%, driven by expansion in developing markets [3][4] - The epay segment experienced a revenue decline of approximately 5%, while operating income increased by 4% and adjusted EBITDA by 2%, primarily due to a shift in the wholesale mobile top-up business [5][6] - Money transfer revenue grew by 1% year-over-year, with a 32% increase in direct-to-consumer digital transactions, although operating income and adjusted EBITDA decreased by 2% and 1% respectively [6][7] Market Data and Key Metrics Changes - Travel volumes in Europe remained steady, with overall tourism growing approximately 3.3% year-over-year, although spending patterns were more selective [4] - Remittances to Mexico declined more than 12% year-over-year, highlighting the impact of immigration policy changes on transaction volumes [7] Company Strategy and Development Direction - The company is focused on two key revenue pillars: payment and transaction processing, and cross-border and foreign exchange, with ongoing investments in digital initiatives and partnerships [15][16] - The company plans to launch stablecoin-enabled use cases in early 2026, integrating blockchain technology into its payment network [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that global economic uncertainty and immigration policy changes have created transitory headwinds but expressed confidence in the underlying fundamentals of the business [13][14] - The company expects to finish the year with year-over-year earnings growth similar to the third quarter, reaffirming a growth expectation of 12%-16% for the year [30][31] Other Important Information - The company ended the third quarter with $1.2 billion in unrestricted cash and $2.3 billion in debt, having completed a $1 billion convertible bond offering to strengthen financial flexibility [9][10] - Share repurchases have returned approximately 85% of annual earnings to shareholders over the past four years [10] Q&A Session Summary Question: Can you unpack the slight softness in the EFT segment? - Management noted that consumers are being cautious with vacation spending due to increased costs, impacting ATM transactions more than merchant acquiring [35] Question: What was the exit run rate for money transfer in October? - Management indicated that October has shown stronger performance compared to September, with growth outpacing the industry [37] Question: Can you discuss pricing trends in money transfer? - Management reported consistent pricing overall, with some regional variations, particularly in the Middle East [42] Question: What is the expected digital transaction penetration in money transfer? - Management aims for digital transaction growth rates to exceed 32%, with a goal of reaching 30%-35% penetration in the future [46] Question: How does the company view the impact of immigration policies on money transfer? - Management believes the current challenges are transitory and that demand for labor will eventually lead to a rebound in remittance activity [66]

Financial Data and Key Metrics Changes - The company reported revenue of $1.1 billion, operating income of $195 million, adjusted EBITDA of $245 million, and adjusted earnings per share of $3.62, with revenue growth below expectations due to macroeconomic factors [4][14] - Consolidated operating margins expanded by approximately 40 basis points year over year [5] Business Line Data and Key Metrics Changes - The EFT segment saw revenue growth of 5%, with operating income and adjusted EBITDA each growing by 4%, driven by expansion in developing markets [6][7] - The epay segment experienced a revenue decline of approximately 5%, while operating income increased by 4% and adjusted EBITDA by 2%, primarily due to a shift in the wholesale mobile top-up business [8][9] - Money Transfer revenue grew by 1% year over year, but operating income and adjusted EBITDA decreased by 21%, with a significant increase in direct-to-consumer digital transactions [10][13] Market Data and Key Metrics Changes - In Europe, tourism grew approximately 3.3% year over year, but spending patterns became more selective, impacting overall transaction volumes [6][7] - Remittances to Mexico declined by over 12% year over year, highlighting the impact of immigration policy changes on transaction volumes [11][12] Company Strategy and Development Direction - The company is focusing on two key revenue pillars: payment and transaction processing, and cross-border and foreign exchange, to drive growth opportunities [23][25] - A new partnership with Citigroup was established to enhance cross-border payments through the Dandelion platform, reinforcing its position in real-time payments [25][43] - The company plans to launch stablecoin use cases in 2026, integrating blockchain technology into its payment ecosystem [27][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that global economic uncertainty and immigration policy changes have created transitory headwinds but expressed confidence in the underlying fundamentals of the business [20][21] - The company expects to finish the year with year-over-year earnings growth similar to the third quarter, maintaining guidance of 12% to 16% growth [14][45] Other Important Information - The company ended the third quarter with $1.2 billion in unrestricted cash and $2.3 billion in debt, with a recent convertible bond offering strengthening financial flexibility [14][15] - Share repurchases have returned approximately 85% of annual earnings to shareholders over the past four years [15][16] Q&A Session Summary Question: Can you unpack the slight softness in the EFT segment? - Management noted that consumers are being cautious with vacation spending due to increased costs, impacting ATM transactions more than merchant acquiring [46][48] Question: What changed in the Money Transfer segment after a strong Q2? - Management observed choppy trends, with October showing stronger performance compared to September, indicating potential recovery [50][51] Question: How is pricing evolving in the Money Transfer segment? - Pricing remains consistent year over year, with some pressure in specific markets, but overall, it did not adversely impact the third quarter [56][58] Question: What is the outlook for constant currency revenue in Q4? - Early indications in October suggest a potential turnaround, with management cautiously optimistic [72] Question: Can Euronet still generate double-digit EPS growth in 2026? - Management expressed confidence in achieving double-digit EPS growth, citing numerous growth opportunities and the strength of their business model [106][108]

Financial Data and Key Metrics Changes - The company reported revenue of $1.1 billion, operating income of $195 million, adjusted EBITDA of $245 million, and adjusted earnings per share of $3.62, with revenue growth below expectations due to macroeconomic factors [2][3] - Consolidated operating margins expanded by approximately 40 basis points year over year [2] - Adjusted earnings per share grew 19% year over year, maintaining a trajectory for 12% to 16% earnings growth for 2025 [11][30] Business Line Data and Key Metrics Changes - The EFT segment saw revenue growth of 5%, with operating income and adjusted EBITDA each growing 4%, driven by expansion in developing markets [3][4] - The epay segment experienced a revenue decline of approximately 5%, while operating income increased by 4% and adjusted EBITDA by 2%, primarily due to a shift in the wholesale mobile top-up business [4][5] - Money transfer revenue grew 1% year over year, with a 32% increase in direct-to-consumer digital transactions, although operating income and adjusted EBITDA decreased by 2% and 1% respectively [5][27] Market Data and Key Metrics Changes - In Europe, travel volumes remained steady, with overall tourism growing approximately 3.3% year over year, although spending patterns became more selective [3][4] - Remittances to Mexico declined more than 12% year over year, highlighting the impact of immigration policy changes on transaction volumes [7][8] - The company outperformed the market in the U.S. to Mexico corridor, achieving flat year-over-year growth despite broader declines [7][8] Company Strategy and Development Direction - The company is focused on two key revenue pillars: payment and transaction processing, and cross-border and foreign exchange, with ongoing investments in digital initiatives and partnerships [15][16] - The Dandelion platform is positioned as a leader in real-time cross-border payments, with new partnerships enhancing its capabilities [16][26] - The company plans to launch stablecoin-enabled use cases in early 2026, integrating digital assets into its payment network [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted that global economic uncertainty and immigration policy changes have created transitory headwinds, but the underlying fundamentals remain strong [12][13] - The company expects to finish the year with earnings growth similar to the third quarter, reaffirming its guidance of 12% to 16% year-over-year growth [30] - Management expressed confidence in the ability to navigate current challenges and highlighted ongoing opportunities for growth through strategic initiatives [30][66] Other Important Information - The company ended the third quarter with $1.2 billion in unrestricted cash and $2.3 billion in debt, having completed a $1 billion convertible bond offering to enhance financial flexibility [9][10] - Share repurchases have returned approximately 85% of annual earnings to shareholders over the past four years, with $130 million repurchased in the current quarter [10][29] Q&A Session Summary Question: Can you unpack the slight softness in the EFT segment? - Management noted that consumers are being cautious with spending due to increased costs for travel and economic uncertainty, impacting ATM transactions more than merchant acquiring [33] Question: What was the exit run rate for money transfer in October? - Management indicated that October trends are stronger than September, with growth outpacing the industry despite recent challenges [34] Question: Can you discuss pricing trends in the money transfer segment? - Pricing has remained consistent overall, with some regional variations, particularly in the Middle East, but no significant adverse impacts were noted in the third quarter [38] Question: How does the company view the potential for digital transaction growth? - The company aims to increase digital transaction penetration, currently at 16%, with a goal of reaching 30% to 35% over time [40][41] Question: What are the expectations for revenue growth in Q4 and 2026? - Management is optimistic about a turnaround in revenue growth for Q4, with early indications in October suggesting improvement [47] Question: What corridors are experiencing softer growth? - Management highlighted softer growth in corridors such as Bangladesh and Turkey, influenced by immigration policies in those regions [64]

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].