Wise PLC (WPLCF) (Q4 2025) Earnings Call Highlights: Strong Customer Growth and Strategic Expansions

Wise PLC (WPLCF) reports robust growth in active customers and cross-border volumes, while navigating challenges in administrative expenses and regional performance.

Author's Avatar
Jun 06, 2025
Summary
  • Active Customers: 15.6 million, a 21% increase year-on-year.
  • Cross-Border Volume: GBP145 billion, a 23% growth.
  • Customer Holdings: GBP21.6 billion, a 33% increase.
  • Underlying Income: GBP1.4 billion, a 19% increase.
  • Underlying Profit Before Tax: 17% increase, reaching over GBP0.5 billion.
  • Cross-Border Revenue: GBP840 million, a 6% increase.
  • Cross-Border Take Rate: 53 basis points in Q4 2025.
  • Card and Other Revenues: 45% increase, with card revenue at GBP220 million.
  • Assets Under Management: GBP4.5 billion, a 55% increase.
  • Cost of Sales: 5% increase, with a gross profit margin of 75%.
  • Administrative Expenses: GBP769 million, a 25% increase.
  • Profit Before Tax: GBP282 million, a 17% increase.
  • Reported Profit Before Tax: GBP565 million, a 17% increase.
  • Profit After Tax: GBP416 million.
  • Interest Income: GBP444 million, with GBP161 million returned to customers.
  • Employee Benefits Expense: GBP413 million, a 9% increase.
  • Share Repurchase Program: 4.1 million shares purchased at an average price of GBP9.5.
Article's Main Image

Release Date: June 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Wise PLC (WPLCF, Financial) reported a 21% increase in active customers, reaching 15.6 million, indicating strong customer growth.
  • The company achieved a 23% growth in cross-border volume, moving GBP145 billion, showcasing robust transaction growth.
  • Underlying income grew by 19% to GBP1.4 billion, demonstrating significant revenue growth.
  • Wise PLC (WPLCF) continues to expand its infrastructure, with new integrations in the Philippines and ongoing projects in Japan and Brazil.
  • The Wise platform saw increased adoption, with notable partnerships such as Itau and Raiffeisen, enhancing its market presence.

Negative Points

  • The cross-border revenue growth was only 6%, reflecting the impact of price reductions on revenue.
  • The company experienced a 25% increase in administrative expenses, which could impact profitability.
  • There was a noted softness in H2 revenue performance in North America, indicating potential regional challenges.
  • The onboarding process for business customers remains a challenge, potentially slowing growth in the SMB segment.
  • The strategic lowering of fees, while beneficial for customers, could pressure margins if not offset by volume growth.

Q & A Highlights

Q: Could you expand on the growth opportunities for the US listing, particularly regarding platforms, and does it help with regulatory conversations in the US? Also, what are the trends in Q1 given market volatility?
A: The US listing is a long-term strategic move to raise our profile in the largest market, where a significant portion of our volumes involve the US dollar. This could enhance brand awareness and opportunities, especially with the 4,000 banks in the US. As for Q1 trends, despite some fluctuations, April and May were in line with previous months, and we are monitoring the situation closely.

Q: Can you provide more details on the Wise platform rollout, particularly with large partners like Raiffeisen and Itau? Is this a repeatable process, and how long do rollouts typically take?
A: The rollout with large partners is a multi-year process, starting with one product and expanding over time. While each partnership is unique, the process is designed to be repeatable. We expect the Wise platform to contribute significantly to our revenue in the long term.

Q: Regarding the insurance safeguarding policy for GBP520 million, does this allow you to use customer funds as working capital, and will this amount grow over time?
A: The safeguarding insurance is part of our overall strategy to protect customer funds. We plan to continue and potentially increase this safeguarding over time as part of our commitment to financial security.

Q: With the strategic lowering of fees, is this a consistent trajectory now due to operational gearing?
A: Yes, the trajectory of lowering fees is consistent, driven by our scale effects and economics. While the extent of reductions may vary, our focus remains on making Wise more accessible and affordable.

Q: How do you view the potential of the SMB segment, given the challenges with onboarding and growth rates?
A: The SMB segment presents a massive opportunity due to the stickiness of these customers. While acquisition takes time, we are focused on launching new products to enhance their experience and capitalize on this growth potential.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.