The Western Union 2025 Q2 Earnings Mixed Results as Net Income Declines 13%

Western Union reported its fiscal 2025 Q2 earnings on Jul 28th, 2025. The total revenue of The Western Union decreased by 3.8% to $1.03 billion in 2025 Q2, down from $1.07 billion in 2024 Q2. The Western Union's EPS declined 11.9% to $0.37 in 2025 Q2 from $0.42 in 2024 Q2. Meanwhile, the company's net income declined to $122.10 million in 2025 Q2, down 13.4% from $141 million reported in 2024 Q2. The Company has sustained profitability for 20 years over the corresponding fiscal quarter, reflecting stable business performance.

Despite the revenue decline, Western Union maintained a solid 19% operating margin, signaling cost management efficiency. However, the EPS of $0.37 fell short of the expected $0.42, reflecting challenges in the current macroeconomic environment. The company's guidance for 2025 remains unchanged, projecting adjusted revenue between $4.035 billion to $4.135 billion and adjusted EPS between $1.65 to $1.75, suggesting cautious optimism.

Revenue

Western Union reported total revenue of $1.03 billion, marking a 4% decrease on a reported basis from the previous year. Adjusted revenue, excluding Iraq, showed a more modest decline of 1%. The branded digital segment saw a 6% growth in revenue, with transactions increasing by 9%. Meanwhile, consumer services experienced a significant revenue surge, rising 39% on a reported basis and 41% on an adjusted basis, driven by the expansion of the travel money business in Europe.

Earnings/Net Income

The Western Union's EPS declined 11.9% to $0.37 in 2025 Q2 from $0.42 in 2024 Q2. Meanwhile, the company's net income declined to $122.10 million in 2025 Q2, down 13.4% from $141 million reported in 2024 Q2. The Company's EPS performance indicates challenges in maintaining profitability amid revenue pressures.

Post Earnings Price Action Review

The strategy of buying Western Union (WU) shares following a quarter of revenue increase and holding for 30 days showed marked underperformance. This approach resulted in a compound annual growth rate (CAGR) of -18.15% and an excess return of -151.83%, starkly below the benchmark return of 88.74%. The strategy exhibited a high maximum drawdown of 0.00% and a Sharpe ratio of -0.67, highlighting significant risk and negative returns. These results suggest that the strategy was not effective in capturing potential gains post-earnings and underscores the volatile nature of the stock price, which edged down 1.63% during the latest trading day, despite climbing 4.20% during the most recent full trading week.

CEO Commentary

Devin B. McGranahan, President, CEO & Director, highlighted a "reasonable quarter against a difficult macro backdrop" as Western Union implements its Evolve 2025 strategy aimed at sustainable revenue growth. He noted that while the Americas retail business faced challenges due to geopolitical issues, the European retail business performed well. The branded digital business saw a 9% increase in transactions. McGranahan expressed optimism regarding future share gains and revenue growth, particularly from the expanding Travel Money business. He acknowledged short-term headwinds stemming from immigration policy impacts in the U.S. but emphasized confidence in the long-term resilience of customer segments.

Guidance

The company expects adjusted revenue for 2025 to be in the range of $4.035 billion to $4.135 billion, reflecting growth in branded digital and Consumer Services, with operating margins projected between 19% and 21%. Adjusted EPS is anticipated to be in the range of $1.65 to $1.75. The outlook assumes no significant changes in macroeconomic conditions, indicating a cautious yet steady growth trajectory.

Additional News

Recently, Western Union announced its strategic shift towards integrating stablecoins within its global remittance infrastructure. CEO Devin McGranahan confirmed trials of stablecoin-based settlement models in South America and Africa, aiming to modernize cross-border transactions in regions facing currency volatility and limited banking access. This move aligns with regulatory changes following the GENIUS Act, which provides a federal framework for stablecoin issuance. Additionally, Western Union plans to launch a proprietary stablecoin wallet tailored to underserved markets, enhancing its digital service offerings. The company’s focus on digital assets represents an opportunity to streamline foreign exchange processes and reduce costs, although it faces political scrutiny regarding privacy and financial risks.