WU · The Western Union Company

Western Union's first quarter 2026 results reflect a challenging operating environment, particularly in its Americas retail business. GAAP revenue was essentially flat at $983 million, while adjusted revenue declined 1%, as growth in Consumer Services (+24% GAAP, +33% adjusted) and Branded Digital (+9% GAAP, +6% adjusted) was offset by macro pressure in the retail segment. Consumer Services benefited from the Travel Money business, including the Eurochange acquisition, and higher bill payment revenues. Branded Digital saw transaction growth of 21%, now representing 42% of total CMT transactions. However, the CMT segment overall saw a 3% GAAP revenue decline and flat transactions. GAAP EPS dropped 44% to $0.20, and adjusted EPS fell 39% to $0.25, driven by lower fixed cost coverage in owned locations, timing of vendor incentives, higher costs from new strategic partnerships, a large foreign currency loss, and a higher tax rate. Operating margin contracted to 13% from 18% GAAP (19% adjusted), impacted by higher expenses in North America, including lack of vendor incentive payments and higher commissions from new agent signings. Management highlighted the pending acquisition of Intermex (expected to close in Q2 2026) as a strategic move to strengthen retail capabilities, along with a stablecoin launch to modernize payment systems. The company reaffirmed its full-year 2026 outlook: GAAP revenue growth of 5%-8% (adjusted 6%-9%) and GAAP EPS of $1.50-$1.60 (adjusted $1.75-$1.85), assuming no material macroeconomic changes. The results underscore near-term headwinds but also show strength in digital and consumer services segments.