TLDR
- WU slips as revenue drops 5%, yet margins widen and EPS improves.
- Shares fall to $9.44 as CMT declines, but digital transactions jump 13%.
- Consumer Services surges on Travel Money, even as Americas retail cools.
- Dividend set at $0.235, with $529M returned to shareholders in 2025.
- 2026 outlook stays upbeat: 5%–8% revenue growth, EPS up to $1.60.
Western Union (WU) shares declined after the company reported a quarterly revenue drop and mixed earnings results. The stock closed at $9.44, down 2.18%, and fell another 2.22% to $9.23 in pre-market trading. The company posted weaker total revenue, yet digital and consumer segments recorded solid growth and the board approved a dividend.
Revenue Falls While Margins Improve
Western Union reported fourth-quarter revenue of $1.0 billion, down 5% on both reported and adjusted bases. For the full year 2025, revenue reached $4.1 billion, declining 4% reported and 2% adjusted, excluding Iraq. The decline reflected slower activity in the Americas retail business, although other segments offset part of the weakness.
Consumer Money Transfer revenue declined 7% in the quarter, while transactions slipped 2% on a reported basis. On an adjusted basis, CMT revenue fell 9% compared to the prior year period. However, GAAP operating margin improved to 18% from 17%, and adjusted margin rose to 20% from 17%.
For the full year, GAAP operating margin increased to 19% from 17%, and adjusted margin reached 20% from 19%. Improved cost efficiencies supported profitability despite lower revenue. Operating cash flow totaled $544 million for the year, strengthening liquidity.
Digital and Consumer Segments Drive Growth
Consumer Services revenue grew 15% in the fourth quarter on a reported basis and 26% on an adjusted basis. Growth came from the Travel Money business, including the Eurochange Limited acquisition, and higher bill pay revenue. For the full year, Consumer Services revenue increased 32% reported and 29% adjusted.
Branded Digital revenue rose 7% in the fourth quarter and 6% on an adjusted basis. Transaction growth in the digital segment reached 13% year over year. The business represented 30% of total Consumer Money Transfer revenue and 39% of related transactions during the quarter.
Adjusted earnings per share increased to $0.45 in the quarter from $0.40 a year earlier. GAAP earnings per share reached $0.36, compared with $1.13 in the prior year period, which included tax benefits. Full-year adjusted EPS stood at $1.75, slightly above $1.74 in 2024.
Dividend Approval and 2026 Outlook
The board approved a first-quarter dividend of $0.235 per share, payable March 31, 2026. The company returned about $529 million to shareholders in 2025 through dividends and share repurchases. Dividends totaled $305 million, while share buybacks accounted for $225 million.
Western Union expects 2026 revenue growth between 5% and 8% on a GAAP basis. Adjusted revenue growth is projected between 6% and 9%. The outlook assumes stable macroeconomic conditions and completion of the Intermex acquisition in the second quarter.
The company forecasts GAAP EPS between $1.50 and $1.60 for 2026. Adjusted EPS is expected between $1.75 and $1.85, with tax rates aligned to prior guidance. Management continues to advance its digital transition strategy while maintaining operating discipline.
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