The Western Union Company Q1 FY2026 earnings call

Devin McGranahan discussed first quarter results, emerging stabilization in U.S. remittance market, M&A strategy including acquisitions of Lana in Mexico, Dash in Singapore, Intermex (expected to close soon), and Eurochange in the UK. Also, update on digital asset initiatives with USDPT expected to go live next month, Digital Asset Network launching next week, and Stable Card to be rolled out later this year. Matt Cagwin walked through first quarter financial results, adjusted operating margin was 13%, Consumer Services adjusted revenue up 33% driven by Travel Money and Bill Pay growth, CMT business transactions slightly positive but adjusted revenue down 6%, retail business performance slightly up on transactions and better on revenue, cash flow and balance sheet details, and 2026 outlook including adjusted revenue growth 6%-9% and adjusted EPS $1.75-$1.85.

In the first quarter, revenue was $1 billion. Adjusted revenue declined 1% year-over-year. Consumer money transfer transactions were slightly positive for the first time since Q1 of 2025. Cross-border principal growth was up mid-single digits. CMT transaction rates improved quarter-over-quarter. Adjusted earnings per share was $0.25 in the quarter compared to $0.41 a year ago. Consumer Services adjusted revenue was up 33% in the quarter, contributing 14% of total revenue. Branded digital business increased transaction growth to 21% and adjusted revenue by 6%.

Reaffirmed 2026 adjusted revenue outlook at 6% to 9% inclusive of Intermex acquisition. Adjusted EPS for full year expected to be between $1.75 to $1.85. Expect Q2 EPS to be similar to last year and then accelerate in back half of the year driven by improving remittance backdrop, new agent wins, seasonally stronger Travel Money period, and accelerating operating efficiency program.

Macro-economic uncertainty, competitive dynamics. U.S. immigration policy uncertainty remains a meaningful headwind for Americas retail business. Mixed impact of Middle East conflict on business with decline in travel from Europe to Middle East affecting Travel Money business in UK and moderate acceleration of outbound remittances from Middle East with potential reversion if conflict extended.

Q: Will Nance asked about margin drivers and FX remeasurement.

A: Devin McGranahan and Matthew Cagwin discussed that about 50% of the year-over-year decline is from anticipated items like vendor incentives, fixed cost coverage, strategic partner costs, and some unanticipated items like FX loss and dual track dislocation.

Q: Tien-Tsin Huang asked about execution risk of efficiency program and vision on acquisitions.

A: Devin McGranahan said there is execution risk but team has track record, efficiency program includes operating model efficiency, sunsetting legacy platforms, and AI acceleration. Matthew Cagwin added on acquisitions about licenses, tech stack, people, and building on infrastructure.

Q: Vasundhara Govil asked about Stablecoin go-to-market strategy.

A: Devin McGranahan said USDPT launch is for settlement, Digital Asset Network launches next week for wallet companies, and Stable Card to be rolled out in countries before end of year.

Q: Bryan Keane asked about digital adjusted revenue and AI impact.

A: Devin McGranahan said digital adjusted revenue is affected by mix, new customer offers, and payout to account growth. Devin McGranahan said AI can have significant impact on back office costs by modernizing processes.

Q: Darrin Peller asked about retail footprint strategy.

A: Devin McGranahan said retail footprint strategy includes signing significant retail partners and controlled distribution supporting digital strategy.