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- **Revenue resilience**: $1.03B Q3 revenue with Consumer Services up 49% (Travel Money +50%), offsetting North America retail decline.
- **Digital acceleration**: 12% transaction growth in digital channels, 50%+ payout-to-account principal, 0.5M digital wallet users.
- **Strategic wins**: Intermex acquisition to expand U.S. agent network; Eurochange driving 50% of Consumer Services growth.
- **Financial strength**: 19% operating margin, $400M+ free cash flow, $120M+ quarterly shareholder returns.
- **Future growth**: 2026 Travel Money target of $150M, digital wallet revenue to $150M+, stable 19-21% margins.

**【CEO Summary Section】**
- Q3 2025 revenue: $1.033 billion (down 1% YoY excluding Iraq), driven by Consumer Services (+49%) and digital growth, offset by North America retail weakness.
- Key markets: Europe (+mid-single digits), South America (+12% digital transactions), Asia (+6% digital revenue). U.S. to Mexico corridor down 8% YoY but showing stabilization.
- Strategic initiatives: Intermex acquisition (10,000+ locations) to expand U.S. independent agent network; digital wallet launches in 7 countries (0.5M users) with 15%+ payout-to-account adoption in Argentina.
- Long-term vision: Digital-first transformation with 50%+ transactions via digital channels, expansion of payout-to-account (now 50% of digital principal), and stable 19-21% operating margins.

**【CFO Financial Commentary】**
- Adjusted EPS: $0.47 (up 2% YoY), driven by 19% operating margin (vs. 18% YoY) and $400M+ free cash flow.
- Consumer Services: $150M+ Travel Money revenue target for 2026, 22% segment margin (up 1,300bps YoY).
- Digital business: 12% transaction growth (8th consecutive quarter), 6% revenue growth, 40%+ payout-to-account principal growth.
- Balance sheet: $1B cash, $2.6B debt (2.6x gross leverage), $120M+ quarterly shareholder returns.

**【Q&A Key Highlights】**
- **North America trends**: August 2025 saw 17% YoY decline vs. July 2025 (13%), but September/October showed stabilization; Bank of Mexico data supports 8% YoY decline in Q3.
- **Digital penetration**: 38% of transactions digital (up from 35% Q2), with 55%+ digital-initiated transactions; Middle East partnerships drive 12% transaction growth.
- **Consumer Services growth**: Eurochange acquisition contributed ~50% of Q3 CS growth; Travel Money to reach $150M+ in 2026.
- **Intermex integration**: 3 U.S. metro markets with strategic pricing model, aiming for nationwide rollout by end-2026.
- **Digital wallet adoption**: 15% of Argentina payouts via wallets, 5% in Brazil; targeting $150M+ digital wallet revenue in 2026.


The Western Union Company (WU) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WU

WU fundamentals

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