Western Union’s first quarter 2026 results showed a decline in net income compared to the previous year, as it faced higher operational expenses, foreign exchange losses, and an increased tax rate.
The company reported a GAAP net income of $64.7m in the quarter, dropping from $123.5m in the same period last year.
The company’s GAAP revenue remained flat at $983m, while adjusted revenue decreased by 1%.
The Consumer Services segment revenue grew 24% on a GAAP basis, or 33% on an adjusted basis.
The segment’s growth was driven by the expansion of the Travel Money business – which included the acquisition of Eurochange – and higher revenues from the bill payment business.
Branded Digital revenue increased 9% on a GAAP basis and 6% on an adjusted basis, with transaction growth of 21%.
The Branded Digital business represented 32% of total Consumer Money Transfer (CMT) revenues and 42% of transactions in the first quarter.
The CMT segment revenue decreased 3% on a GAAP basis, with transactions flat, while on an adjusted basis revenues declined 6%.
First quarter GAAP earnings per share (EPS) was $0.20, down from $0.36 in the prior-year period, while adjusted EPS was $0.25, down from $0.41.
GAAP and adjusted EPS were affected by largely anticipated items – including lower fixed cost coverage in owned locations, timing of vendor incentives, and higher costs associated with new strategic partnerships – as well as discrete items such as a large foreign currency loss and a higher tax rate.
GAAP and adjusted operating margin stood at 13% in the quarter, compared to 18% and 19% respectively in the prior-year period.
Margins were impacted by higher North America expenses, including the lack of vendor incentive payments, higher commissions from new agent signings, foreign currency impacts, and lower fixed cost coverage in owned locations.
Western Union president and CEO Devin McGranahan said: “First quarter results reflect the continued challenges in our Americas retail business as well as a few discrete items affecting the quarter.
“Looking ahead, the pending acquisition of Intermex is expected to strengthen our retail capabilities in the Americas, our stablecoin launch will modernise our payment systems, and continued investment in our digital channel is preparing us for a more digitally-focused future.”
The company said it is reaffirming its 2026 guidance, which includes 6% to 9% adjusted revenue growth and adjusted EPS between $1.75 and $1.85.
“Western Union profit dips in first quarter” was originally created and published by Electronic Payments International, a GlobalData owned brand.
