Western Union (NYSE:WU) reported third-quarter revenue of $1 billion and said cost reductions helped improve profitability from the first half of 2026, even as pressure on its Americas retail business and the loss of a Saudi account-payout business weighed on its outlook.
Adjusted revenue declined 1% from a year earlier, while adjusted earnings per share were 42 cents, Executive Vice President and Chief Financial Officer Matthew Cagwin said on the earnings call. Adjusted operating margin was 18%, down from 20% a year earlier but substantially higher than in the first half of the year.
The company presented two revenue scenarios for 2026, depending on whether its acquisition of Intermex closes by Nov. 10. With the acquisition, Western Union expects adjusted revenue to range from flat to 1% growth. Without it, the company expects organic revenue to decline 1% to 2%. It forecast full-year adjusted EPS of $1.28 to $1.38.
Digital growth and retail pressure
Branded Digital adjusted revenue rose 8% in the quarter, while transactions increased 21%. Consumer Services adjusted revenue grew 5%, helped by bill payments. Those gains partly offset the slowdown in Americas retail, Cagwin said.
Consumer Money Transfer transactions increased 2%, but adjusted revenue declined 2%. Cagwin said U.S. immigration policy and migration trends have limited the company’s ability to replenish its Americas retail customer base.
Western Union expects Branded Digital transactions and revenue to be lower beginning in the fourth quarter after it exited account-payout transactions with a Saudi partner because of low profitability per transaction. The partner contributed about half of Branded Digital revenue growth in the third quarter, Cagwin said.
In response to an analyst’s question, Cagwin said the Saudi market has thin margins and that working-capital challenges contributed to the decision. He said the company was not watching other large, very low-margin businesses in the same category.
Cagwin also pointed to improvement in North America outbound revenue trends. The rate of decline in the Mexico corridor had improved from the high teens at its worst point last year to a mid-single-digit or low-single-digit range, he said.
Cost savings and platform rollout
Western Union said it was ahead of its plan to achieve $50 million in annualized run-rate savings by year-end through its Beyond Efficiency program. During the question-and-answer session, an analyst cited $80 million in run-rate savings, and Cagwin discussed the sources of that amount.
Those sources included an early retirement program and restructuring affecting technology, product and operations teams. Cagwin said the company had protected investment areas and did not expect a meaningful impact on its ability to execute. The program has resulted in nearly $40 million in restructuring costs, primarily for severance and early retirement.
Western Union is also rolling out its Beyond digital platform, which it said is live in Canada, Argentina, Panama and Peru and is in a family-and-friends rollout phase in Chile. The company plans launches in Denmark, Norway, Sweden and Finland in the coming weeks, followed by Mexico, Australia and the United States in the first half of 2027.
The platform is intended to improve onboarding and customer experience while reducing the company’s technology footprint from more than 40 applications to a small number of regional applications.
Stablecoin progress and Intermex review
Western Union said approximately $20 million of its USDPT stablecoin was in circulation, with $150 million to $200 million in transaction volume every 30 days. USDPT was launched in May, is issued by Anchorage Digital Bank and is built on Solana. The company said its initial institutional purpose is to provide around-the-clock settlement between Western Union and its agents.
Two agents in Latin America are using USDPT settlement capabilities, with several more onboarding. Western Union also launched Stablecard in August, combining a USDPT account with a Visa secured card, and plans to launch Receiver Redirect before year-end so recipients can receive and hold value in USDPT.
On Intermex, Western Union said its second Hart-Scott-Rodino review window expired Nov. 2, clearing the review requirement in the merger agreement. The company remains in discussions with California regulators over change-of-control approval needed to close the deal. Nov. 10 is the agreement’s outside date, after which either party has the right to terminate.
Western Union generated $321 million in operating cash flow in the first nine months of 2026, down 21% from a year earlier. It ended the quarter with $1.1 billion in cash and cash equivalents and $2.9 billion in debt. The company said it had paused share repurchases to support its debt-to-EBITDA target.
About Western Union (NYSE:WU)
Western Union is a global provider of money movement and payment services. Through its branded digital platforms and retail agent network, the company enables consumers to send and receive money, transfer funds between bank accounts and digital wallets, pay bills, and purchase money orders in select markets.
The company serves customers across more than 200 countries and territories, with services available through physical locations as well as its website and mobile application. Its operations connect individuals and businesses across international borders, supporting both cash-based transactions and account-to-account transfers.
Western Union traces its origins to 1851, when it was established as a telegraph company before expanding into money transfer and payment services.
