Western Union’s third quarter results drew a positive market reaction, as management attributed flat year-over-year sales to continued strength in digital channels and robust growth in its Consumer Services segment, despite ongoing weakness in North America. CEO Devin McGranahan highlighted that improved execution in Europe and Asia, as well as the scaling of travel money and digital wallet initiatives, helped to offset softness in key U.S. corridors, particularly the U.S. to Mexico money transfer route. Management credited cost discipline and operational efficiency for sustaining margins amid a challenging geopolitical and macroeconomic environment.
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Western Union (WU) Q3 CY2025 Highlights:
- Revenue: $1.03 billion vs analyst estimates of $1.02 billion (flat year on year, 1% beat)
- Adjusted EPS: $0.47 vs analyst estimates of $0.43 (9.5% beat)
- Adjusted EBITDA: $247.5 million vs analyst estimates of $246.8 million (24% margin, in line)
- Adjusted EPS guidance for the full year is $1.70 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 19.6%, up from 15.9% in the same quarter last year
- Market Capitalization: $3.04 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Western Union’s Q3 Earnings Call
- Tien-Tsin Huang (JPMorgan) asked about improving trends in U.S.-Mexico money transfers. CEO Devin McGranahan said, “We are seeing the lows from the mid-summer have come back a bit, particularly in Mexico.”
- William Nance (Goldman Sachs) inquired about linearity of results in Latin America and the Caribbean. McGranahan noted stabilization and the lapping of prior year declines driven by migration policy changes and elections.
- Bryan Keane (Citi) pressed on the digital business’ transaction growth outpacing revenue growth. CFO Matthew Cagwin explained that account-to-account transactions in the Middle East, which carry lower fees, contributed to the gap.
- James Faucette (Morgan Stanley) questioned the future of cost efficiency programs. Cagwin indicated further opportunity for operational improvement and technology-driven savings, with more details to come at Investor Day.
- Timothy Chiodo (UBS) asked about integrating Intermex’s agent model. McGranahan confirmed Western Union will retain Intermex’s brand and operational approach to maximize distribution advantages.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of digital wallet adoption and expansion into new markets like Australia and Mexico, (2) integration milestones and performance lift from the Intermex acquisition in the U.S. retail segment, and (3) continued margin resilience and cost control as technology and AI enhancements are deployed globally. The sustainability of Consumer Services growth and the evolution of migration-driven transaction trends will also be key signposts.
Western Union currently trades at $9.59, up from $8.14 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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