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…
Earnings analysis · 10-Q
WU earnings analysis
Filed April 24, 2026 · Our reading of the company's report
The latest report
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%…
Read full summary
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).
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.2
What stood out
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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.
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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%).
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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).
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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.
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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.
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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).
What to watch
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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.
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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).
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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.
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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.
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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.
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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.
Management's outlook
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).
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.