Western Union Q1 GAAP Net Income Plunges 48% to $64.7M
Western Union’s Q1 GAAP net income fell to $64.7m from $123.5m year-over-year, with GAAP revenue steady at $983m and adjusted revenue down 1%. Consumer Services revenue rose 24% on a GAAP basis while CMT declined 3%, and the company reaffirmed its 2026 revenue and EPS guidance.
1. First Quarter Financial Results
Western Union reported GAAP net income of $64.7 million in the first quarter, down from $123.5 million a year earlier, while GAAP revenue held at $983 million and adjusted revenue declined 1%.
2. Segment Performance
Consumer Services segment revenue increased 24% on a GAAP basis, driven by the Travel Money business expansion and higher bill payment volumes; Branded Digital revenue rose 9% GAAP, while Consumer Money Transfer revenues fell 3% GAAP with flat transactions.
3. Profitability and Margin Drivers
Operating margin narrowed to 13% from 18% due to higher North America expenses, large foreign currency losses, timing of vendor incentives and elevated costs from new strategic partnerships, alongside a higher tax rate.
4. Outlook and Guidance
The company reaffirmed 2026 targets of 6%-9% adjusted revenue growth and $1.75-$1.85 adjusted EPS, noting an impending Intermex acquisition, stablecoin launch and continued digital channel investments to bolster future growth.