Western Union Misses Q2 Targets
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It's worth noting that I find it compelling that Western Union (WU -1. Furthermore, 81%), a leading global cross-border money transfer and payments company, reported its Q2 FY2025 earnings on...
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July 28, 2025
04:41 PM
The Motley Fool
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It's worth noting that I find it compelling that Western Union (WU -1
Furthermore, 81%), a leading global cross-border money transfer and payments company, reported its Q2 FY2025 earnings on July 28, 2025
This leads to the conclusion that key news: Both GAAP revenue and non-GAAP adjusted earnings per (EPS) missed analysts' expectations
EPS came in at $0 (something worth watching). 42, below the consensus estimate of $0
Furthermore, 44 (non-GAAP), while GAAP revenue reached $1
Nevertheless, 03 billion, also below the expectation of $1
Moreover, 04 billion (GAAP)
Additionally, Compared to the same period last year, both figures declined
Nevertheless, —EPS fell from $0. 44 and GAAP revenue decreased from $1
Furthermore, Nevertheless, 07 billion in Q2 2024 (which is quite significant)
Market analysis shows quarter reflected gress in digital services and growth in Consumer Services, but was hampered by persistent declines in the company's largest segment, Consumer Money Transfer, whose GAAP revenue decreased 8%, and volatility in certain Iraq (this bears monitoring)
Overall, the period showed incremental operational imvement but challenges in translating strategic execution into financial growth
MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeEPS (Non-GAAP)$0, considering recent developments. 5%)Revenue$1. 03 billion$1. 04 billion$1 (noteworthy indeed), in light of current trends
Conversely, 07 billion(4. 0%)Operating Margin19%18%1. 0 ppConsumer Money Transfer Revenue$885 million$965 million(8 (an important development)
Moreover, 3%)Consumer Services Revenue$141 million$101 million39 (an important development). 6% Source: Analyst estimates vided by FactSet
Moreover, Management expectations based on management's guidance, as vided in Q1 2025 earnings report (noteworthy indeed)
Moreover, In contrast, Overview and Key Success FactorsWestern Union specializes in cross-border consumer payments
Its core activity is the transfer of money internationally, both through a global network of nearly 380,000 physical agent locations (as of December 31, 2024) and fast-expanding digital channels, in light of current trends
Operating in over 200 countries and territories, it serves millions of people seeking to send remittances to friends, family, or s across borders
Meanwhile, Western Union's focus includes leveraging its massive global network and strengthening the brand, accelerating digital transformation to capture market shifts, maintaining strict regulatory compliance, responding to tough competition from both established financial players and nimble new fins, and broadening income s through Consumer Services, given the current landscape
Success in these areas supports future growth and helps manage the risks of heavy reliance on the traditional money transfer
On the other hand, Quarterly Highlights: Financial Performance and Strategic MovesAdjusted EPS was below consensus, with revenue also missing forecasts as Continued declines in the Consumer Money Transfer segment weighed on results (an important development)
Additionally, However, 0% from a year ago (an important development)
In contrast, The main culprit: an 8% year-over-year drop in Consumer Money Transfer revenue (GAAP), driven by an 11% year-over-year decline in Consumer Money Transfer segment revenue in North America (GAAP) and notable volatility in the Iraq, considering recent developments
Transactions in this core segment dropped 3% year-over-year, reflecting pressure on volumes, especially in established retail corridors
A standout area for the company was its Consumer Services segment (remarkable data), in this volatile climate
Conversely, This line, which includes offerings such as bill payment and travel money services, grew revenue by 39% (GAAP) in Q2 2025 (which is quite significant)
Segment operating margin also imved, a sign of scale and efficiency, with growth driven by the expansion of the Travel Money in Europe, including the acquisition of Eurochange Limited
Moreover, Western Union saw further gress in its digital money transfer offering, known as Branded Digital
Revenue in this digital duct family rose 6% in Q2 2025, and Transactions increased 9% year-over-year in Q2 2025
However, As of Q2 2025, Branded Digital accounted for 29% of Consumer Money Transfer segment revenue and 36% of its transactions in Q2 2025, amid market uncertainty
Nevertheless, Management highlighted that the cost to acquire digital customers is coming down and that new loyalty grams are int to imve customer retention, especially ing a recent rollout in the United States in Q1 2025
Market analysis shows company reported a slight year-over-year increase in overall operating margin to 19% (GAAP) in Q2 2025, up from 18% (GAAP) in Q2 2024, given current economic conditions
Leadership attributed these margin imvements to both currency tailwinds and cost efficiencies, especially in nology and headcount, partially offset by declines in high-margin such as Iraq, given current economic conditions
Management said it is on pace to exceed its $150 million cost-saving target as of Q1 2025, enabling more operational savings to bolster earnings as top-line revenue remains under pressure
Regulatory compliance continues to be a necessary operational focus, as Western Union operates in many jurisdictions with strict requirements on anti-money laundering and consumer tections, given current economic conditions
Moreover, However, volatility in Iraq remains a particular area of concern, as instability in that market can impact reported (GAAP) results, and, as management noted, presents significant volatility in revenues and challenges in offering the Company's services in the country
On capital return, the company paid out $82
In contrast, 3 million in dividends and repurchased $76
At the same time, 7 million of its own s
What the re reveals is re was no declared change to the dividend, considering recent developments
Looking Ahead: Guidance and RisksDespite missing consensus forecasts in the current period, management reaffirmed full-year 2025 guidance, given the current landscape
At the same time, It expects GAAP revenue between $4 (an important development)
On the other hand, 085 billion and $4
Additionally, 185 billion for FY2025, and adjusted EPS of $1 (an important development). 75, assuming no material changes in macroeconomic conditions, including immigration policies, foreign currencies, or Argentina inflation
The company also expects GAAP operating margins to remain in the 18% to 20% range for FY2025, underlining its continued discipline on costs
Nevertheless, Management highlighted that the revenue boost from the Eurochange acquisition is already included in its FY2025 outlook
On the other hand, Looking forward, investors should watch the evolution of digital transaction volumes and margins, further traction in Consumer Services, and whether cost controls can offset any continued weakness in the core Consumer Money Transfer (an important development)
Volatility in Iraq and slowdowns in North American retail remain key risk factors
Management will also need to keep an eye on competitive pressures, as the industry continues to see consolidation and new digital entrants challenge established players, in today's financial world
On the other hand, Revenue and net income presented using U
Generally accepted accounting principles (GAAP) unless otherwise noted.
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