Q2 2026 Western Union Co Earnings Call Transcript
Key Points
- The Western Union Co (WU) reported adjusted revenue of $1 billion, a decline of only 1% year-over-year, a meaningful improvement from the 5% decline in the prior year.
- Consumer money transfer transactions grew 3% in the quarter, a 300 basis point improvement from Q1 and the highest transaction growth rate since Q2 2024.
- The branded digital business continued to perform well, with transactions increasing 25% and adjusted revenue growing 6% in the quarter.
- Consumer Services adjusted revenue was up 12% in the quarter, driven by growth in the bill pay and Travel Money businesses.
- The company launched its Beyond efficiency program, targeting a run rate operating cost reduction of $50 million by the end of the year and $200 million by the end of 2027.
- The Western Union Co (WU) successfully launched its USDPT stablecoin and Digital Asset Network, with the first four exchanges live and trading, and introduced a USDPT stable card.
- Year-to-date operating cash flow was $214 million, up 45% versus last year, driven by lower cash taxes.
- Adjusted EPS came in at $0.31 in the quarter, down from $0.42 a year ago, below expectations due to lower profitability in the Americas retail and Middle East businesses.
- The ongoing slowdown in the retail business in the Americas, particularly in the US, continued to be a significant headwind, with US retail transactions down mid-teens.
- The accelerated shift from cash payout transactions to lower-revenue digital payout-to-account transactions continues to weigh on profitability and margins.
- Higher agent commissions and signing bonuses associated with new partner wins and renewals are increasing costs and pressuring margins.
- The company has paused its share buyback program to maintain its debt-to-EBITDA ratio between 2.5 times and 3 times.
- New customer acquisition economics remain challenged, impacting the overall revenue growth and profitability of the digital business.
- The company lowered its 2026 adjusted EPS guidance to a range of $1.25 to $1.35, reflecting the ongoing margin pressures and weaker-than-expected performance.
Good day, and welcome to the Western Union second quarter 2026 results conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Tom Hadley, Vice President of Investor Relations. Tom, please go ahead.
Thank you. On today's call, we will discuss the company's second quarter in our 2026 full year outlook, and then we will take your questions. The slides that accompany this call and webcast can be found at westernunion.com under the Investor Relations tab and will remain available after the call. Additional operational statistics have been provided in supplemental tables with our press release. Joining me on the call today is our CEO, Devin McGranahan and our CFO, Matt Cagwin.
Today's call is being recorded, and our comments include forward-looking statements. Please refer to the cautionary language in the earnings release and in Western Union's filings with the Securities and Exchange Commission, including the 2025
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