Western Union reported fourth‑quarter and full‑year 2025 results on February 20, 2026. Fourth‑quarter revenue fell 5% to $1.0 billion, while adjusted earnings per share rose to $0.45, beating the consensus estimate of $0.43. Full‑year revenue declined 4% to $4.05 billion, and adjusted EPS reached $1.75, topping the consensus estimate of $1.65.
The revenue shortfall was driven by a 7% decline in the core Consumer Money Transfer (CMT) segment, which continues to face headwinds from digital competitors and a softer global remittance market. Growth in Consumer Services and Branded Digital partially offset the CMT weakness, but the overall mix shift toward lower‑margin legacy services weighed on top‑line growth.
The EPS beat was largely a result of disciplined cost management and a favorable mix shift toward higher‑margin Consumer Services and Branded Digital. Operating margins expanded to 20% from 19% in the prior year, reflecting the company’s ability to maintain profitability despite revenue pressure.
Segment performance highlighted that Consumer Services revenue grew 15% on a GAAP basis and 26% on an adjusted basis, while Branded Digital increased 7% GAAP and 6% adjusted. In contrast, the CMT segment revenue fell 7% year‑over‑year, underscoring the ongoing challenge of sustaining growth in the legacy money‑transfer business.
Management guided for 2026 revenue growth of 5%–8% and adjusted revenue growth of 6%–9%, with adjusted EPS projected at $1.75–$1.85. The guidance signals confidence in the company’s strategic shift, including the anticipated closing of the International Money Express (Intermex) acquisition in Q2 2026, which is expected to broaden the customer base and enhance cross‑sell opportunities.
Investors reacted to the revenue miss, which outweighed the EPS beat, reflecting concerns about the sustainability of top‑line growth in the face of competitive pressure and macro‑economic headwinds. The guidance, however, suggests management remains optimistic about future performance once the Intermex integration is complete.
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