WU earnings analysis
What we found in WU's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Western Union reported Q1 2026 revenue of $982.7M, essentially flat vs. Q1 2025 ($983.6M) while GAAP diluted EPS fell to $0.20 from $0.36 a year earlier. Gross margin compressed to ~33.4% and operating margin to ~12.5% due to higher cost of services and lower operating income of $123.0M. Consumer Services was the main growth driver (+$26.6M, +24.0% YoY) while Consumer Money Transfer revenue declined $27.5M (-3.2% YoY).
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue roughly flat YoY
- Total revenue was $982.7M in Q1 2026 vs. $983.6M in Q1 2025 (change of -$0.9M), showing top-line stability.
- Consumer Services strong growth
- Consumer Services revenue rose to $137.3M in Q1 2026 from $110.7M in Q1 2025, an increase of $26.6M (+24.0%).
- Deleveraging on the balance sheet
- Borrowings decreased to $2,623.3M at March 31, 2026 from $2,877.8M at December 31, 2025 (down $254.5M).
- Positive free cash flow
- Net cash provided by operating activities was $109.0M and after capitalized contract costs ($20.7M), internal-use software ($19.7M) and purchases of property and equipment ($6.4M) implied free cash flow of ~$62.2M for the quarter.
- Active share repurchases continue
- Common stock repurchases (cash) totaled $52.9M in the quarter and $729.9M remained available under the repurchase authorization as of March 31, 2026.
- Settlement asset growth
- Settlement assets increased to $3,539.6M at March 31, 2026 from $3,449.1M at December 31, 2025 (up $90.5M).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Significant YoY EPS decline
- GAAP diluted EPS fell to $0.20 in Q1 2026 from $0.36 in Q1 2025 (decline of $0.16, ~-44.4%), driven by lower operating income and higher tax rate.
- Operating income and margin compression
- Operating income decreased to $123.0M in Q1 2026 from $177.4M in Q1 2025 (down $54.4M, -30.7%), with operating margin at ~12.5% (123.0/982.7).
- Higher effective tax rate
- Provision for income taxes was $25.4M on income before taxes of $90.1M (effective tax rate ~28.2%) in Q1 2026 versus $23.8M on $147.3M (effective tax rate ~16.2%) in Q1 2025, increasing the tax burden materially.
- Legal and regulatory uncertainty
- The Company disclosed reasonably possible litigation losses in excess of recorded liabilities of approximately $30M as of March 31, 2026 and ongoing regulatory audit activity (AUSTRAC) with unspecified potential loss or enforcement.
- Decrease in corporate cash on hand
- Cash and cash equivalents on the balance sheet declined to $909.2M at March 31, 2026 from $1,234.4M at December 31, 2025 (down $325.2M), which may affect near-term liquidity flexibility despite lower borrowings.
- Consumer Money Transfer softness
- Consumer Money Transfer revenue fell to $845.4M in Q1 2026 from $872.9M in Q1 2025 (down $27.5M, -3.2%), offsetting gains in other segments.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.2
- Gross margin
- 33.4%
- Operating margin
- 12.5%
- Segment
- Consumer Money Transfer: $845.4M (Q1 2026) vs. $872.9M (Q1 2025) — down $27.5M (-3.2%)
- Segment
- Consumer Services: $137.3M (Q1 2026) vs. $110.7M (Q1 2025) — up $26.6M (+24.0%)
What they said about what is next.
The Form 10-Q contains no numeric FY/quarter guidance. It does include forward-looking operational items: 'This transaction is expected to close in the second quarter of 2026' (Intermex acquisition, Note 4) and 'The Company expects to renew many of its letters of credit and bank guarantees prior to expiration' (Note 6). For formal FY2026 numeric guidance, management has referenced other disclosures (see company press releases/8‑K).
The filing reads about the same as the one before it.
What came before.
- 10-K · February 20, 2026
- Western Union is executing a strategic shift toward a "Beyond" digital-first strategy (announced Nov 2025) while continuing to rely on its core Consumer Money Transfer network. FY2025 shows modest revenue decline versus…
- 10-Q · July 28, 2025
- Western Union reported Q2 2025 revenue of $1,026.1M, down from $1,066.4M in Q2 2024, with operating income modestly higher at $192.7M and diluted EPS down to $0.37 from $0.41. Consumer Services was the growth driver…
- 10-K · February 20, 2025
- Western Union emphasizes its leading position in cross-border consumer money transfer, with Consumer Money Transfer accounting for 90% of consolidated revenues in 2024 and a global agent network of approximately 380,000…
- 10-Q · July 30, 2024
- Western Union reported Q2 2024 revenue of $1,066.4 million and diluted EPS of $0.41. Revenue and operating income declined versus year-ago (revenue down $103.6 million, operating income down $51.9 million), while…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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