Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q2 2025 Earnings Presentation
33 slides from Western Union Company (the)'s earnings presentation, Jul 28, 2025
Slide 1: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results July 28, 2025
Slide 2: Tom Hadley, Vice President of Investor Relations
Western Union Tom Hadley Vice President of Investor Relations 2
Slide 3: Forward-Looking Statements
Western Union Forward-Looking Statements This presentation contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumpti
Slide 4: Devin McGranahan, President & CEO
Western Union Devin McGranahan President & CEO 4
Slide 5: Evolve 2025: Driving Improvements
Western Union Evolve 2025: Q2 2025 Branded Western Union CMT Improving Digital Transactions Principal Per Transaction Customer and Driving +9% Growth ex. Iraq (cc) 6% 6% Agent Experience Improvements 3% 5% Q2 2025 Consumer Services and Remaining Adjusted Revenue* Resilient +41% Q3 2024 Q4 2024 Q1 20
Slide 6: Second Quarter Results
Western Union Second Quarter Results $1.03 billion GAAP revenue 19% 19% GAAP operating margin Adjusted operating margin* $0.37 $0.42 GAAP EPS Adjusted EPS* 6 *Note: See appendix for reconciliation of GAAP to Non-GAAP financial measures.
Slide 7: Short-Term Headwinds in Remittances: Navigating Volatility
Western Union Short-Term Headwinds in Remittances: Navigating Volatility “We continue to execute against our Evolve 2025 strategy, delivering a respectable quarter despite increased macroeconomic and political uncertainty” Doubling Down on Driving wallet Western Union customer penetration in the dig
Slide 8: Stablecoins in Remittances: An Opportunity for Western Union
Western Union Stablecoins in Remittances: An Opportunity for Western Union Improve On/Off Ramps for Crypto-Fiat Reduced Reliance on Conversion Opportunity Opportunity Intermediaries Make our payments 2 3 Reduce dependency on network available and legacy correspondent connect the fiat world with bank
Slide 9: From Principles to Pilots: Advancing AI
Western Union From Principles AI is cutting time, cost, and to Pilots: Marketing Campaigns complexity GenAI chatbots Advancing Operations We’re using AI where it matters — to do GenAI with more, faster, and smarter Purpose GenAI in Tech AI-powered CSR Assistant 9
Slide 10: Evolve 2025 Strategy
Western Union Evolve 2025 Strategy • Digital first customer • Digital first customer experiences experiences • Scalable marketing driven • Remittance-led offering customer acquisition • Expanded set of accessible • Retail to digital escalator products and services Deliver Accelerate digital accessib
Slide 11: Matt Cagwin, Chief Financial Officer
Western Union Matt Cagwin Chief Financial Officer 11
Slide 12: Business Trends
Western Union Business Trends 1200 Adjusted Revenue Growth* 12% Adjusted Operating Margin* 1199.8 Adj. Rev. Growth Adj. Rev. Growth ex. Iraq 10% 8% 1199.6 6% 1199.4 4% 1199.2 0% 1% 1% 2% 1199 -2% -1% 0% 1198.8 -4% -2% 19% 19% 17% 19% 19% -6% -1% -4% 1198.6 -7% -8% -6% 1198.4 -8% ($M) 2Q24 2Q24 3Q24
Slide 13: CMT Business Trends
Western Union CMT Business Trends Key Highlights • Consumer Money Transfer has experienced a 6% growth in PPT on a constant currency basis ex. Iraq • Branded Digital achieved the 7th consecutive quarter of mid- single-digit or better adjusted revenue growth* • European Retail’s momentum continued wi
Slide 14: Consumer Services
Western Union Consumer Services Highlights • Adjusted revenue* grew 41% in Q2 • Includes bill payments, retail money order, travel money, media network, prepaid card, lending partnerships, and digital wallets • Achieved 22% operating margin • Acquired Eurochange Limited, a provider of travel money s
Slide 15: Investor Day Expense Redeployment
Western Union 5-Year $150M Expense Redeployment Program Achieved in 2025 Accomplished Achieved $40M in 2023 $50M 100% of our Investor Day Goal $60M Achieved in 2024 15
Slide 16: Financial Highlights
Western Union Financial Highlights YTD June 30, 2025 Cash flow from operations $148 million Capital expenditures $53 million Leverage Ratios Dividends paid $155 million 2.8x* (Gross) Share repurchases $150 million Cash balance $1.0 billion 1.8x* (Net) Debt outstanding $2.7 billion 16 *Note: See appe
Slide 17: 2025 Financial Outlook
Western Union 2025 Financial Outlook Revenue1 (M) Operating Margin EPS2 GAAP $4,085 to $4,185 18% to 20% $1.45 to $1.55 Adjusted* $4,035 to $4,135 19% to 21% $1.65 to $1.75 1 In millions, adjusted revenue excludes the impact of currency and Argentina Inflation in quarters when hyperinflationary (ove
Slide 18: Questions and Answers
Western Union Questions and Answers 18
Slide 19: Appendix
Western Union Appendix Second Quarter 2025 19
Slide 20: Key Statistics and Reconciliation of Non-GAAP Measures
Western Union Key Statistics and Reconciliation of Non-GAAP Measures Western Union’s management believes the non-GAAP financial A non-GAAP financial measure should not be considered in measures presented within this presentation provide meaningful isolation or as a substitute for the most comparable
Slide 21: Consolidated Metrics
Western Union Notes 2Q24 3Q24 4Q24 FY2024 1Q25 2Q25 YTD 2Q25 Consolidated Metrics Revenues (GAAP) - YoY % change (9)% (6)% 1% (3)% (6)% (4)% (5)% Adjusted revenues (non-GAAP) - YoY % change (a) (7)% (6)% (1)% (3)% (8)% (4)% (6)% Adjusted revenues, excluding Iraq (non-GAAP) - YoY % change (a) 0% 1% 1
Slide 22: CMT Segment Regional Metrics
Western Union Notes 2Q24 3Q24 4Q24 FY2024 1Q25 2Q25 YTD 2Q25 CMT Segment Regional Metrics - YoY % change NA region revenues (GAAP) 1% (3)% (5)% (1)% (7)% (11)% (9)% NA region foreign currency translation impact (j) 0% 0% 0% 0% 1% 0% 0% Adjusted NA region revenues (non-GAAP) 1% (3)% (5)% (1)% (6)% (1
Slide 23: CMT and CS Revenue Mix
Western Union Notes 2Q24 4qa Fy2024 1925 2Q25 YTD 2Q25 % of CMT Revenue ‘NA region reveues 40% 39% 39% 398% 30% 30%] 39% EU & CIS region revenues 25% 21% 27% 26% 2% 29%| 28% ‘MEASA region revenues: 18% 17% 17% 18% 1% 16% LACA regioa revenues 2% 11% 12% 12% 11% 1% AAPAC region reveaues 5% 6% 5% 5% o%
Slide 24: Consolidated Metrics
Western Union Notes 2Q24 3Q24 4Q24 FY2024 1Q25 2Q25 YTD 2Q25 Consolidated Metrics (a) Revenues (GAAP) $ 1,066.4 $ 1,036.0 $ 1,058.2 $ 4,209.7 $ 983.6 $ 1,026.1 $ 2,009.7 Foreign currency translation and Argentina hyperinflation impact[1] (j) 6.4 (5.5) (17.6) (11.1) (14.4) (4.0) (18.4) Revenues, cons
Slide 25: Consolidated Metrics Cont.
Western Union © @ ‘Consolidated Metrics cont. ‘Not income (GAAP) Acquistion, separation, and integration costs Amortization and impairment of acquisiton-selate intangible assets ‘Redeployment program costs Severance costs Russia asst impairments, termination costs, and currency remeasurement IRS set
Slide 26: Consolidated Metrics Cont.
Western Union Notes 2Q24 3Q24 4Q24 FY2024 1Q25 2Q25 YTD 2Q25 Consolidated Metrics cont. (e) Effective tax rate (GAAP) 15% (95)% (161)% (51)% 16% 24% 20% IRS settlement (r) 0% 102% 0% 22% 0% 0% 0% Non-cash tax impacts of international reorganization (u) 0% 0% 173% 41% (6)% (8)% (7)% Other adjustments
Slide 27: CMT Segment Metrics
Western Union Notes 2Q24 3Q24 4Q24 FY2024 1Q25 2Q25 YTD 2Q25 CMT Segment Metrics (g) Revenues (GAAP) $ 965.0 $ 932.2 $ 938.8 $ 3,798.0 $ 872.9 $ 885.0 $ 1,757.9 Foreign currency translation and Argentina hyperinflation impact[1] (j) 12.7 7.4 7.5 30.1 11.4 (5.7) 5.7 Revenues, constant currency, net o
Slide 28: CS Segment Metrics
Western Union Notes 2Q24 3Q24 4Q24 FY2024 1Q25 2Q25 YTD 2Q25 CS Segment Metrics (i) Revenues (GAAP) $ 101.4 $ 103.8 $ 119.4 $ 411.7 $ 110.7 $ 141.1 $ 251.8 Foreign currency translation and Argentina hyperinflation impact[1] (j) (6.2) (12.9) (25.1) (41.2) (25.9) 1.9 (24.0) Revenues, constant currency
Slide 29: Cash Flow and Earnings Metrics
Western Union Notes 2Q24 3Q24 4Q24 FY2024 1Q25 2Q25 YTD 2Q25 Net cash provided by/(used in) operating activities (GAAP) $ (33.8) $ 212.1 $ 134.0 $ 406.3 $ 148.2 $ (0.3) $ 147.9 Depreciation (9.5) (8.9) (9.8) (37.4) (9.5) (8.7) (18.2) Amortization (36.6) (34.1) (33.6) (141.7) (32.4) (31.5) (63.9) Oth
Slide 30: 2025 Consolidated Outlook Metrics
Western Union 2025 Consolidated Outlook Metrics Notes Revenues (GAAP) 3 4085S 4,185 Foreign currency translation and Argentina hyperinflation impact! 10) (50) 50) Revenues, adjusted (non-GAAP) A 4035S 4135 (Operating margin (GAAP) Severance costs O Acquisition, separation, and integration costs 0 Am
Slide 31: Foreign Currency and Argentina Inflation
Western Union 0) @ © ®) Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United
Slide 32: Russia Assets and Adjustments
Western Union (q) While the Company had previously made a decision to suspend its operations in Russia, in the third quarter of 2024, the Company decided to pursue either liquidating or selling the Russian assets, which triggered a review of the carrying value of these assets. In the third and fourt
Slide 33: Thank you
Thank you. ©2025 Western Union Holdings, Inc. All rights reserved
The Western Union Company — Q2 2025 Earnings Presentation on 6ix