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Core Insights - The event is Western Union's 2025 Investor Day, focusing on the company's future strategies and performance [1][2] Group 1: Company Strategy - The management team will present insights into the "Beyond Strategy," outlining the company's past achievements, current status, and future vision [1] - The Chief Marketing Officer will discuss the significance of the company's brands and its transition to a digital-first approach [1] Group 2: Regional Performance - Executives from Europe will share the success of the retail strategy and how it serves as a foundation for the company's overall success [2] - The Senior Vice President of U.S. Consumer Services will outline plans for future growth in the U.S. market [2]

Financial Data and Key Metrics Changes - For the third quarter, the company reported adjusted revenue of $1.033 billion, reflecting a decline of 1% year-over-year when excluding impacts from 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%, driven by the acquisition of Eurochange and a strong performance in the travel money segment [9][26] - Consumer money transfer transactions decreased by 2.5% in the quarter, excluding Iraq, while average principal per transaction increased by approximately 6% [8][28] - 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 challenges due to geopolitical factors, particularly in the U.S. to Mexico corridor, which is critical for the company [5][11] - Transaction growth was positive in corridors such as Brazil, India, and Vietnam, while declines were noted in Mexico, El Salvador, and Peru [11][12] - The company noted improvements in transaction trends in the latter part of September and early October, suggesting potential stabilization [85] 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 migration patterns to stabilize [6][7] - The acquisition of Intermex is expected to accelerate the company's retail strategy and improve its competitive positioning [6][82] - The company is focused on becoming more digital-centric, with over 40% of principal moved through digital channels and a growing digital wallet strategy [15][16] 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 is adapting to changing migration policies and customer behaviors, which have impacted transaction frequencies [11][66] - Management believes that the long-term trajectory for global migration remains positive, despite short-term headwinds [13][23] Other Important Information - The company has 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 plans to return over $120 million to shareholders through dividends and share repurchases in the third quarter [31] 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, with a strong management team in Europe driving expansion [40][41] Question: Long-term digital penetration outlook - Management expects digital penetration to continue growing at double-digit rates, with significant opportunities in specific corridors [66] Question: Dynamic pricing in Spain and its rollout - Management confirmed that dynamic pricing has been rolled out in a significant portion of the European market and plans to expand it in the U.S. [72] Question: Future cost efficiency programs - Management hinted at ongoing opportunities for cost efficiencies and plans to discuss this in detail at the upcoming Investor Day [75] Question: Integration of Intermex locations - Management intends to maintain the Intermex brand and model while integrating its strengths into the Western Union framework [82]

Financial Data and Key Metrics Changes - For fiscal year 2025, consolidated adjusted EBITDA increased by 43% to a record $129 million, with full-year adjusted EBITDA totaling $128.7 million, surpassing the updated guidance of $126 million [4][11][26] - Consolidated revenue increased by 2% for the full year, marking the first full-year increase since 2021, with Q4 revenue up by 3% [12][11] - Consolidated gross margins improved by 310 basis points in Q4 and 380 basis points for the full year, reflecting the expansion of high-margin segments [13] Business Line Data and Key Metrics Changes - NRS segment's income from operations decreased by 3% to $5.8 million in Q4, while adjusted EBITDA increased by 32% to $9.3 million [14] - FinTech segment's income from operations surged by 88% to $4.8 million in Q4, with adjusted EBITDA climbing over threefold to $5.5 million [16] - Net2phone's income from operations increased by 74% to $1.5 million in Q4, and adjusted EBITDA increased by 42% to $3.5 million [19] Market Data and Key Metrics Changes - BOSS Money's digital channel now contributes over 80% of remittance volume, with digital transactions increasing by 28% in Q4 and the amount sent increasing by 41% [5][17] - The average recurring revenue per terminal at NRS reached $299 in Q4, benefiting from increased penetration of premium payment processing plans [15] - The remittance industry is expected to see a shift towards digital channels due to a new 1% federal tax on cash-originated remittances, effective January 1, 2026 [18] Company Strategy and Development Direction - The company plans to continue focusing on high-margin growth segments, with expectations of 20% to 25% revenue growth and faster adjusted EBITDA growth in fiscal 2026 [16] - Strategic initiatives include integrating retailers with delivery services like DoorDash and launching digital coupon offerings through NRS Insights [4][5] - The company is also investing in AI-driven solutions for net2phone, shifting its revenue model from a seat-based to a usage-based model [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal year 2026, citing strong customer enthusiasm and the potential for continued growth despite challenges in the remittance market due to immigration policy changes [9][47] - The company is committed to returning cash to stockholders through buybacks and dividends while evaluating potential acquisitions [9][24] - Management acknowledged the competitive landscape and the need to adapt to changing market conditions, particularly in the remittance and digital payment sectors [41][46] Other Important Information - The company did not repurchase shares in Q4 due to pursuing a significant acquisition opportunity that ultimately did not materialize [23][24] - A revised measure of non-GAAP adjusted EBITDA will be reported starting Q1 FY26, excluding non-cash compensation expenses [25][26] Q&A Session Summary Question: Progress on stablecoins and Visa-linked wallets - Management confirmed that wallets are in beta phase and expect stablecoins to play a larger role in future transactions [28] Question: WhatsApp launch date - The WhatsApp service is set to launch in the next few days for existing customers, with a broader rollout expected in 30 to 45 days [30] Question: Churn rate in NRS terminals - Management attributed churn to increased competition, immigration enforcement, and technical issues, but noted improvements in recent weeks [41][44] Question: Sustainability of BOSS Money's growth - Management indicated that while growth may slow, initiatives like WhatsApp and digital wallets could enhance business growth [46][49] Question: Focus on acquisitions - Management suggested a preference for smaller acquisitions over larger ones, emphasizing organic growth and internal investments [54]

Financial Data and Key Metrics Changes - For fiscal year 2025, consolidated adjusted EBITDA increased by 43% to a record $129 million, driven by double-digit growth across all operating segments [4][11] - Consolidated revenue in Q4 increased by 3%, with full-year revenue rising by 2%, marking the first full-year increase since 2021 [11][12] - Adjusted EBITDA for Q4 rose by 33% to $33.4 million, while for the full year, it increased by 43% to $128.7 million [14][26] Business Line Data and Key Metrics Changes - NRS segment's income from operations decreased by 3% to $5.8 million in Q4, but adjusted EBITDA increased by 32% to $9.3 million [14] - FinTech segment's income from operations surged by 88% to $4.8 million in Q4, with adjusted EBITDA climbing over threefold to $5.5 million [16] - Net2phone's income from operations increased by 74% to $1.5 million in Q4, while adjusted EBITDA rose by 42% to $3.5 million [19] Market Data and Key Metrics Changes - BOSS Money's digital channel now contributes over 80% of remittance volume, with digital transactions increasing by 28% in Q4 [5][17] - The average recurring revenue per terminal at NRS reached $299 in Q4, benefiting from increased penetration of premium payment processing plans [15] - The company expects BOSS Money revenue and adjusted EBITDA to grow in the high teens for fiscal 2026 [19] Company Strategy and Development Direction - The company plans to continue integrating retailers with delivery services like DoorDash and is preparing to launch integrations with other large delivery services [4] - A focus on AI-driven solutions is evident, with plans to shift net2phone's revenue model from a seat-based to a usage-based model [7][19] - The company is committed to returning cash to stockholders through buybacks and dividends while evaluating potential acquisitions [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal year 2026, citing strong customer enthusiasm and ongoing growth initiatives [9][10] - The impact of a new 1% federal tax on remittances is expected to accelerate the migration to digital channels, which are exempt from the tax [18] - Management acknowledged challenges in the remittance business due to changing immigration policies but remains confident in the digital channel's growth potential [47][51] Other Important Information - The company did not repurchase shares in Q4 due to pursuing a significant acquisition opportunity that ultimately did not materialize [23][24] - A revised measure of non-GAAP adjusted EBITDA will be reported starting Q1 FY26, excluding non-cash compensation expenses [25][26] Q&A Session Summary Question: What is the progress with stablecoins and Visa-linked wallets? - Management indicated that wallets are in a beta phase and expect stablecoins to play a significant role in future transactions [28] Question: What is the WhatsApp launch date? - The WhatsApp service is set to launch in the next few days for existing customers, with a broader rollout expected in 30 to 45 days [30] Question: What are the main investments for growth this year? - Management refrained from providing specific guidance but emphasized a focus on customer acquisition at low costs [36] Question: What is the cause of increased churn in NRS terminals? - Factors include increased immigration enforcement affecting retailers, competition from new entrants, and technical issues with equipment [41][42] Question: Can the strong growth in BOSS Money be sustained? - Management believes growth may slow slightly but expects continued strong performance due to new initiatives [47][51] Question: What is the focus regarding future acquisitions? - Management indicated a preference for smaller acquisitions over larger ones, emphasizing internal growth and customer acquisition [54]

Financial Data and Key Metrics Changes - IDT reported a 43% increase in consolidated adjusted EBITDA to a record $129 million for fiscal year 2025, with full-year adjusted EBITDA totaling $128.7 million, surpassing guidance of $126 million [4][11][26] - Consolidated revenue increased by 2% for fiscal 2025, marking the first full-year increase since 2021, with Q4 revenue up by 3% [12][11] - Consolidated income from operations increased by 9% to $21.9 million in Q4 and by 55% to $100.4 million for the full year [12][14] Business Line Data and Key Metrics Changes - NRS segment's adjusted EBITDA increased by 37% to $34.2 million for the full year, with recurring revenue up by 27% to $122.6 million [14][15] - FinTech segment saw income from operations surge by 88% to $4.8 million in Q4, with adjusted EBITDA climbing over threefold to $5.5 million [16][19] - Net2phone's income from operations increased by 194% to $4.9 million for the full year, with adjusted EBITDA increasing by 54% to $12.1 million [19][20] Market Data and Key Metrics Changes - BOSS Money's digital channel now contributes over 80% of remittance volume, with digital transactions increasing by 28% in Q4 [5][17] - The average recurring revenue per terminal at NRS reached $299 in Q4, benefiting from increased penetration of premium payment processing plans [15][16] - The company expects BOSS Money revenue and adjusted EBITDA to grow in the high teens percentage range for fiscal 2026 [19] Company Strategy and Development Direction - IDT plans to continue focusing on high-margin growth segments, including merchant services and SaaS fees, to drive revenue and EBITDA growth [4][11] - The company is investing in AI-driven solutions across its segments, particularly in net2phone, where a shift from a seat-based model to a usage-based model is anticipated [7][19] - IDT is also evaluating potential acquisitions while maintaining a conservative approach to M&A, focusing on smaller opportunities rather than large ones [9][24][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal 2026, citing strong customer enthusiasm and the potential for continued growth despite challenges in the remittance market due to immigration policy changes [9][46] - The upcoming 1% federal tax on remittances is expected to accelerate the migration to digital channels, which are exempt from the tax [18][45] - Management acknowledged the competitive landscape but remains confident in IDT's ability to capture market share through innovative solutions [9][42] Other Important Information - The company will revise its non-GAAP adjusted EBITDA metric starting Q1 FY26 to exclude non-cash compensation expenses, with expectations of generating $141 to $145 million in adjusted EBITDA for fiscal 2026 [25][26] - IDT's cash position increased by $30 million to $254 million, reflecting strong cash generation across all segments [23] Q&A Session Summary Question: Progress on stablecoins and Visa-linked wallets - Management confirmed that wallets are in beta phase and expect stablecoins to play a significant role in future transactions [29] Question: WhatsApp launch date - The WhatsApp feature is launching soon, starting with existing customers [30] Question: Regulatory concerns regarding acquisitions - Management refrained from commenting on regulatory issues related to competitor acquisitions [31] Question: Main investments for growth - Management emphasized a focus on customer acquisition strategies without disclosing specific details [33] Question: Transition from seat model to usage model - The shift pertains mainly to AI agents, while UCaaS and CCaaS will continue to be sold by the seat [35] Question: Churn rate in NRS terminals - Management attributed churn to various factors, including increased competition and technical issues, but noted improvements [37][39] Question: Sustainability of BOSS Money's growth - Management anticipates growth may slow but believes initiatives will help maintain a strong growth trajectory [42][46] Question: Focus on smaller vs. larger acquisitions - Management indicated a preference for smaller acquisitions in the current market environment [48]

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].

Financial Data and Key Metrics Changes - The company reported a 133% year-over-year increase in consolidated income from operations, a 57% increase in consolidated adjusted EBITDA, and a 290% increase in EPS [4] - Gross profit increased 15% year-over-year, with a gross profit margin reaching a record high of 37.1% [11][12] - Adjusted EBITDA margins reached 15% in the third quarter [7] Business Line Data and Key Metrics Changes - At NRS, recurring revenue increased 23% year-over-year, driven by a 37% revenue increase from merchant services and a 32.3% increase in SaaS fees, despite a 12% decrease in advertising and data revenue [4] - The fintech segment, including Boss Money, generated over $5 million in adjusted EBITDA compared to $244,000 in the year-ago quarter [6] - Traditional communications segment income from operations and adjusted EBITDA both jumped over 30% year-over-year [8] Market Data and Key Metrics Changes - Subscription revenue increased 7% to $21.5 million in the quarter, with a higher constant currency increase of 11% [16] - The remittance platform, Boss Money, saw a 27% increase in transactions and a 25% increase in revenue [5] Company Strategy and Development Direction - The company is focusing on developing new offerings that leverage the NRS platform to help retailers compete with larger chains, particularly in online ordering and delivery [5] - The company is pursuing next-generation growth initiatives and is in the budgeting process for fiscal 2026 [9][19] - The company is exploring acquisitions but emphasizes the importance of paying the right price to extract value [29][33] Management's Comments on Operating Environment and Future Outlook - Management noted that the third quarter was slightly softer than the second quarter due to expected seasonal factors, but they remain pleased with overall performance [10] - The company expects to meet its adjusted EBITDA goal of $126 million for the full year [19] - Management expressed confidence in the long-term profitability of traditional communications as a cash generator [17] Other Important Information - The company set up a bad debt expense provision of $1.4 million related to amounts due from a client [13] - The company repurchased $6 million of employee-owned shares to satisfy tax obligations triggered by vesting [18] Q&A Session Summary Question: Insights on NRS growth and sales strategy - Management indicated that increased efforts in bringing new and existing retailers onto the merchant processing platform contributed to strong numbers this quarter [22] Question: Details on AI agent customer base - Most customers for the AI agent are existing NetSuite phone customers, with plans to expand to new customers in the future [24] Question: Future M&A activity - Management confirmed they are looking at acquisitions but will only pursue those that offer good value [29] Question: Impact of reduced advertising revenue from a partner - Management noted that while a significant partner's contribution has decreased, other advertising revenues have been growing nicely, and they are close to covering the decline [50][51] Question: Future EBITDA margins for NetSuite phone - Management expressed uncertainty but indicated that new initiatives could lead to substantial margin improvements over time [54] Question: Investment in customer acquisition for Boss Money - Management acknowledged the potential for increased investment in customer acquisition to capture market share from legacy players [57]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $144.3 million, down from $150.4 million in the same period last year [19] - Net income was $7.8 million, with adjusted EBITDA at $21.6 million and adjusted diluted EPS at $0.35 per share, all down year over year [10][24] - Total principal amount sent increased by 4% year over year, indicating underlying strength despite transaction volume decline [10][19] Business Line Data and Key Metrics Changes - Digital transactions grew nearly 70% year over year, with expectations of further growth to about 80% in April [13][31] - Retail transactions, however, saw a decline of over 5%, with the average transaction amount increasing but fewer transactions overall [19][20] - The company focused on optimizing its retail operations, improving transaction processing time from 20 seconds to 9 seconds [12] Market Data and Key Metrics Changes - Total volume sent increased in four out of five top markets, but transaction counts decreased in the same markets [11] - The company noted a shift in consumer behavior, with larger amounts being sent less frequently, impacting transaction growth and fee income [8][20] Company Strategy and Development Direction - The company is investing heavily in its digital business as part of its omnichannel strategy, viewing it as critical for future growth [13][15] - Strategic partnerships and targeted investments in retail are being prioritized to enhance profitability and operational efficiency [11][12] - The company is also focused on maintaining strong cash flow and profitability while navigating a challenging macroeconomic environment [17][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the remittance market to Latin America, despite current challenges [7][10] - The company is revising its full-year guidance due to increased uncertainty and volatility in market conditions [25] - Management believes that the retail market will recover over time, while digital growth is expected to continue at high rates [33][37] Other Important Information - The company ended the quarter with $151.8 million in cash and generated over $10 million in free cash flow [17][24] - The company has initiated a restructuring process to achieve approximately $2 million in annual savings [16] Q&A Session Summary Question: Near term trends and retail vs digital behavior - Management noted that digital growth is significantly outpacing retail, with digital transactions growing at 70% year over year [31][32] Question: Revised full-year guidance and revenue trajectory - Management indicated that while digital investments may not immediately improve margins, they are expected to drive revenue growth [40][41] Question: Retention metrics and digital performance - Retail customer acquisition costs are approximately $2,500 per retailer, with payback expected in about seven months [50] Question: Monthly cadence and retail foot traffic stabilization - Management does not typically provide monthly comparisons due to variability but noted that February had a downturn compared to January [58][60] Question: Digital growth and Amigo Paizano's impact - Management clarified that the 70% digital growth was organic and not aided by Amigo Paizano [108]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $144.3 million, down from $150.4 million in the same period last year [18] - Net income decreased to $7.8 million, with adjusted EBITDA at $21.6 million and adjusted diluted EPS at $0.35 per share [8][24] - Total volume sent increased by 3.7% year over year, while total transactions sent decreased by just over 5% [18][19] Business Line Data and Key Metrics Changes - Retail transactions remain the foundation of the business, but the number of transactions decreased while the principal amount sent increased by 4% [8][9] - Digital transactions grew nearly 70% year over year, indicating strong growth in the digital segment [12][20] - The company experienced a decline in money transfer fees due to larger send amounts and fewer transactions [7][20] Market Data and Key Metrics Changes - Four out of five top markets saw a decrease in transactions sent, despite an increase in total volume sent [9] - The overall market for remittances to Latin America remains resilient, but consumer behavior is shifting towards sending larger amounts less frequently [7][19] Company Strategy and Development Direction - The company is focused on investing in its digital business offerings to increase revenue contribution and profitability [25] - Operational upgrades have improved transaction processing times, enhancing the agent experience [11] - The company plans to ramp up digital marketing investments to drive customer acquisition and retention [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic, political, and immigration backdrop presents challenges, but the underlying business remains strong [6] - There is an expectation that the trend of larger principal amounts sent less frequently will continue in the near term, but management believes the retail market will recover [35][89] - The company is revising its full-year guidance due to increased uncertainty and volatility in market conditions [25] Other Important Information - The company ended the quarter with $151.8 million in cash and generated over $10 million in free cash flow [16][24] - The company completed the shutdown of an offshore operations center, anticipating approximately $2 million in annual savings [15] Q&A Session Summary Question: Near term trends in retail vs digital - Management indicated that digital transactions are growing much faster than retail, with digital growth at 70% year over year and increasing to 80% in April [32][34] Question: Revised full year guidance - Management expects revenue growth to improve in the second half of the year, driven by digital investments and targeted retail strategies [39][42] Question: Retention metrics and digital performance - Retention in digital is slightly better than the prior quarter, despite increased marketing investments [54] Question: Monthly cadence and retail foot traffic - Management does not typically provide month-to-month comparisons due to variability but noted that February had a slight downturn compared to January [58][60] Question: Investment in digital - The company is committed to continuing its investment in digital, viewing it as essential for future growth [69][70] Question: Principal amounts and transaction dynamics - Management confirmed that the shift to larger principal amounts sent less frequently was a primary reason for the softer quarter and revised guidance, estimating a potential revenue impact of $7 million to $10 million [80][84]