Western Union Co (NYSE:WU) Reports Mixed Q3 2025 Results with EPS Beat and Revenue Miss

Western Union Co (NYSE:WU) reported financial results for the third quarter of 2025, delivering a performance that diverged from analyst expectations on the top and bottom lines. The company's adjusted earnings per share surpassed estimates, while revenue fell short of projections, resulting in a mixed market reception.

Earnings and Revenue Versus Estimates

The company's third-quarter financial performance presented a contrasting picture. While profitability metrics exceeded expectations, the top-line revenue did not meet analyst forecasts.

• Adjusted EPS: $0.47, compared to the analyst estimate of $0.44.
• Revenue: $1.03 billion, compared to the analyst estimate of $1.06 billion.

The GAAP EPS for the quarter was $0.43, a decrease from $0.78 in the prior year period. This decline was largely attributed to a one-time benefit from an IRS settlement that positively impacted the previous year's results. The company's ability to beat adjusted EPS estimates was driven by improved cost efficiencies and a reduction in shares outstanding, which helped offset higher interest expenses and an increased tax rate.

Market Reaction and Price Action

The market's initial response to the earnings report has been moderately positive. Following the release, the stock saw an after-market increase of approximately 3.3%. This suggests that investors are focusing on the earnings beat and the company's cost management, viewing these positives as outweighing the revenue miss. Over recent weeks, the stock has shown minimal movement, indicating that the earnings release provided a new catalyst for price action.

Business Segment Performance

The earnings report highlighted a significant divergence in performance across the company's business segments, underscoring a strategic shift in its revenue composition.

• Consumer Money Transfer (CMT): Revenue decreased 6% on a reported basis. Excluding the impact of Iraq, revenues and transactions declined 7% and 2%, respectively. This segment continues to face headwinds, particularly in the North America retail business.
• Consumer Services: Revenue grew 49%, driven by the expansion of the Travel Money business, which included the acquisition of Eurochange Limited, and higher revenues from the Argentina bill pay business.
• Branded Digital: Revenue increased 7% on a reported basis, with transaction growth of 12%. This segment now represents 29% of total CMT revenues and 38% of CMT transactions.

2025 Outlook and Comparison to Estimates

Western Union maintained its financial outlook for the full year 2025. The company's guidance appears cautious when held against current analyst expectations for sales.

• Company's 2025 Adjusted Revenue Outlook: $4.04 billion to $4.14 billion.
• Analyst Estimated Sales for 2025: $4.22 billion.

The company's projected revenue range falls below the analyst consensus, which may contribute to a tempered long-term outlook despite the quarterly earnings beat. For the fourth quarter of 2025, analysts are estimating sales of $1.08 billion.

Financial Efficiency

The company demonstrated improved operational efficiency during the quarter. The GAAP operating margin expanded to 20%, up from 16% in the previous year. Similarly, the adjusted operating margin improved to 20% from 19%. These gains were attributed to successful cost-control initiatives across the organization.

For a detailed breakdown of historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All data and figures are sourced from the company's press release and third-party estimates. Readers should conduct their own research before making any investment decisions.