Western Union Co
NYSE:WU
Western Union Co
Western Union Co., a venerable name in the realm of financial services, has long shaped the landscape of global money transfers. The company, born in the mid-19th century, initially gained prominence through its foundational role in developing the telegraph system. Over time, Western Union evolved, discarding its communications arm in favor of revolutionizing the way money moves around the world. Positioned as a bridge between continents, the firm's primary business involves enabling swift and reliable cross-border remittance services. The intricate web of over 500,000 agent locations in more than 200 countries and territories underscores its operational breadth, making it a linchpin in facilitating both personal and business-related money transfers.
The company's revenue model is multifaceted. It primarily earns through service fees imposed on each transaction, which vary based on factors like transfer location, speed, and method of payment. Additionally, Western Union capitalizes on foreign exchange margins; it buys currencies at wholesale rates and sells them at retail prices, capturing the spread as income. This dual revenue stream of transaction fees and currency conversion profits sustains its financial engine. While today's digital age presents challenges from cutting-edge fintech startups, Western Union remains steadfast, investing in digital platforms and partnerships to maintain its position in the ever-evolving financial services industry.
Western Union Co., a venerable name in the realm of financial services, has long shaped the landscape of global money transfers. The company, born in the mid-19th century, initially gained prominence through its foundational role in developing the telegraph system. Over time, Western Union evolved, discarding its communications arm in favor of revolutionizing the way money moves around the world. Positioned as a bridge between continents, the firm's primary business involves enabling swift and reliable cross-border remittance services. The intricate web of over 500,000 agent locations in more than 200 countries and territories underscores its operational breadth, making it a linchpin in facilitating both personal and business-related money transfers.
The company's revenue model is multifaceted. It primarily earns through service fees imposed on each transaction, which vary based on factors like transfer location, speed, and method of payment. Additionally, Western Union capitalizes on foreign exchange margins; it buys currencies at wholesale rates and sells them at retail prices, capturing the spread as income. This dual revenue stream of transaction fees and currency conversion profits sustains its financial engine. While today's digital age presents challenges from cutting-edge fintech startups, Western Union remains steadfast, investing in digital platforms and partnerships to maintain its position in the ever-evolving financial services industry.
Revenue: Fourth quarter revenue was $1 billion, down 5% year-over-year on an adjusted basis, reflecting continued headwinds in the Americas retail business.
EPS & Margins: Adjusted EPS for Q4 rose to $0.45 from $0.40 last year, and adjusted operating margin increased to 20% vs. 17% a year ago, at the top end of guidance.
Consumer Services: Consumer Services adjusted revenue grew 26% in Q4 and nearly 30% for the full year, led by the Travel Money and bill pay businesses.
Digital Business: Branded Digital transactions increased 13% and revenue was up 6% in Q4, with strong growth from new Middle East partnerships.
2026 Guidance: Management expects 6% to 9% adjusted revenue growth in 2026 (including Intermex) and adjusted EPS of $1.75 to $1.85.
Intermex Acquisition: The Intermex deal is expected to close in Q2 2026; it will be accretive this year and targeted to add $0.10 per share in the first full year post-integration.
Retail Agent Wins: Western Union secured exclusive multi-year deals with Deutsche Post, Canada Post, Vallarta Markets, and Kroger, expected to contribute at least $100 million in incremental retail revenue annually when fully ramped.
Capital Return: Over $500 million was returned to shareholders in 2025 through dividends and share buybacks.
