Q3 2025 The Western Union Co Earnings Call

October 23, 2025

Unity to ask questions.

Operator: After today's presentation, there will be an opportunity to ask questions. 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.

Please note this event is being recorded.

Operator: Welcome to Zoom. Enter your meeting ID followed by pound. Enter your participant ID followed by pound. Otherwise, just press pound to continue. You have joined the meeting as an attendee and will be muted throughout the meeting. This meeting 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 third quarter 2025 results 2025 outlook and then we will take your questions.

Tom Hadley: Thank you. On today's call, we will discuss the company's Q3 2025 results, 2025 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 2024 Form 10-K, for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements.

The slides that accompany this call and webcast can be found at Western Union Dot 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 Keigwin.

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 2024 Form 10-K for additional information concerning factors that could cause actual results to differ materially from the forward looking statements.

During the call we will discuss some items that do not conform to generally accepted accounting principles.

Tom Hadley: During the call, we will discuss some items that do not conform to generally accepted accounting principles. We have reconciled those items to the most comparable GAAP measures in our earnings release attached to our Form 8-K, as well as on our website, westernunion.com, under the Investor Relations section. I will now turn the call over to our Chief Executive Officer, Devin McGranahan.

We have reconciled those items to the most comparable GAAP measures in our earnings release attached to our form 8-K as well as on our website Western Union Dot com under the Investor Relations section.

Tom Hadley: Ladies and gentlemen, our program will begin momentarily. Please note that all lines will be placed on mute. Good day and welcome to the Western Union Third Quarter 2025 Results Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. 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.

I will now turn the call over to our Chief Executive Officer, Devin Mcgranahan.

Good afternoon, and welcome to Western Union's third quarter 2025 financial results Conference call.

Devin McGranahan: Good afternoon, and welcome to Western Union's Q3 2025 financial results conference call. Today, we reported a solid quarter against a difficult macro backdrop, demonstrating the benefits of our large scale, global, and now multiproduct business model. We saw strong performance in many corridors and product categories, offset by continued weakness in North America across several specific large corridors, most notably US to Mexico. While we are on our way to becoming a much more customer-centric company, we have invested significantly in becoming market competitive and have increased our executional and operational rigor. We are now delivering an improved omni-channel customer experience across our products and channels. As a result, in this quarter, we saw reasonable to strong performance in Europe, South America, and Asia, driven by our retail business in Europe, our digital business in Asia, and our consumer services business in Europe and LACA.

Today, we reported a solid quarter against a difficult macro backdrop, demonstrating the benefits of our large scale global and now multi product business model.

We saw strong performance in many corridors and product categories offset by continued weakness in North America across several specific large corridors, most notably U S to Mexico.

Matt Cagwin: Thank you. On today's call, we will discuss the company's third quarter 2025 results, 2025 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 2024 Form 10-K for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements. During the call, we will discuss some items that do not conform to generally accepted accounting principles.

While we are on our way to becoming a much more customer centric company, we have invested significantly and becoming market competitive and have increased our execution and operational rigor. We are now delivering an improved omni channel customer experience across our products and channels as a result.

In this quarter, we saw reasonable to strong performance in Europe, South America, and Asia, driven by our retail business in Europe, our digital business in Asia, and our consumer services business in Europe and locker.

Our opportunity is to continue to drive our strategy across all geographies and channels and see the benefits as market conditions improve.

Devin McGranahan: Our opportunity is to continue to drive our strategy across all geographies and channels and see the benefits as market conditions improve. An important element of the strategy has been to accelerate the development of our retail model in the US. Our goal is to have a strong base of strategic accounts, a large and competitive mix composed of exclusive and non-exclusive agents, and independent agents in the middle, and a small selection of high-performing company-owned stores at the top. Upon completion, our recently announced acquisition of Intermex will help accelerate our progress towards this goal. With the passing of the HSR review period two weeks ago, we are now excited to begin the appropriate integration planning with earnestness.

An important element of the strategy has been to accelerate the development of our retail model in the U S.

Matt Cagwin: We have reconciled those items to the most comparable GAAP measures in our earnings release attached to our Form 8-K, as well as on our website, westernunion.com, under the Investor Relations section. I will now turn the call over to our Chief Executive Officer, Devin McGranahan.

Our goal is to have a strong base of strategic accounts, a large and competitive mix composed of exclusive and nonexclusive agents and independent agents in the middle and a small selection of high performing company owned stores at the top.

Devin McGranahan: Good afternoon and welcome to Western Union's Third Quarter 2025 Financial Results Conference Call. Today, we reported a solid quarter against a difficult macro backdrop, demonstrating the benefits of our large-scale, global, and now multi-product business model. We saw strong performance in many corridors and product categories, offset by continued weakness in North America across several specific large corridors, most notably U.S. to Mexico. While we are on our way to becoming a much more customer-centric company, we have invested significantly in becoming market competitive and have increased our executional and operational rigor. We are now delivering an improved omnichannel customer experience across our products and channels. As a result, in this quarter, we saw reasonable to strong performance in Europe, South America, and Asia, driven by our retail business in Europe, our digital business in Asia, and our consumer services business in Europe and LATA.

Upon completion, our recently announced acquisition of Intermix will help accelerate our progress towards this goal.

With the passing of the HSR review period, two weeks ago.

We are now excited to begin the appropriate integration planning with earnestness.

We remain optimistic about the longer term outlook for our business as we expect migration patterns to stabilize and our investment in becoming market competitive over the past two years has provided a foundation for ongoing revenue and share gains.

Devin McGranahan: We remain optimistic about the longer-term outlook for our business as we expect migration patterns to stabilize, and our investment in becoming market competitive over the past two years has provided a foundation for ongoing revenue and share gains. We also see many opportunities to continue to expand our consumer services business, which contributed significantly to the company's results in the quarter. Over the past three years, we have delivered above-average industry margins and returned substantial capital to our shareholders via dividend and share buyback. We have, and will continue, to fund the necessary investments in our transformation through cost discipline and good operational performance management. For the third quarter, we reported revenue at $1.033 billion. On an adjusted basis and excluding the impacts from Iraq, this was a decline of 1% year-over-year.

We also see many opportunities to continue to expand our consumer services business, which contributed significantly to the company's results in the quarter.

Over the past three years, we have delivered above average industry margins and returned substantial capital to our shareholders via dividend and share buyback.

We have and will continue to fund the necessary investments in our transformation through cost discipline and good operational performance management.

Devin McGranahan: Our opportunity is to continue to drive our strategy across all geographies and channels and see the benefits as market conditions improve. An important element of the strategy has been to accelerate the development of our retail model in the U.S. Our goal is to have a strong base of strategic accounts, a large and competitive mix composed of exclusive and non-exclusive agents, independent agents in the middle, and a small selection of high-performing company-owned stores at the top. Upon completion, our recently announced acquisition of Intermex will help accelerate our progress towards this goal. With the passing of the HSR review period two weeks ago, we are now excited to begin the appropriate integration planning with earnestness.

For the third quarter, we reported revenue at $1.033 billion on an adjusted basis and excluding the impacts from Iraq. This was a decline of 1% year over year.

Consumer money transfer transaction growth was down two 5% in the quarter, excluding Iraq and cross border principal growth was up mid single digits on a constant currency basis.

Devin McGranahan: Consumer money transfer transactions growth was down 2.5% in the quarter, excluding Iraq, and cross-border principal growth was up mid-single digits on a constant currency basis, speaking to the resilience of our customer base and their perseverance in the current macro environment. While our retail business in the Americas continues to face headwinds associated with the current geopolitical environment, we are encouraged by some improving trends in recent months. And while it is too early to say that we have reached the bottom, we are potentially seeing some stabilization. Our strategy continues to perform well with our retail business in Europe, with mid-single-digit transaction and revenue growth. Our branded digital business increased transactions by 12% and adjusted revenue by 6% in the quarter.

Speaking to the resilience of our customer base and their perseverance in the current macro environment.

While our retail business in the Americas continues to face headwinds associated with the current geopolitical environment. We are encouraged by some improving trends in recent months.

And while it is too early to say that we have reached the bottom we are potentially seeing some stabilization.

Devin McGranahan: We remain optimistic about the longer-term outlook for our business, as we expect migration patterns to stabilize, and our investment in becoming market competitive over the past two years has provided a foundation for ongoing revenue and share gains. We also see many opportunities to continue to expand our consumer services business, which contributed significantly to the company's results in the quarter. Over the past three years, we have delivered above-average industry margins and returned substantial capital to our shareholders via dividend and share buyback. We have and will continue to fund the necessary investments in our transformation through cost discipline and good operational performance management. For the third quarter, we reported revenue at $1.033 billion on an adjusted basis, and excluding the impacts from Iraq, this was a decline of 1% year over year.

Our strategy continues to perform well with our retail business in the Europe with mid single digit transaction and revenue growth.

Our branded digital business increased transactions by 12% and adjusted revenue by 6% in the quarter.

Consumer services adjusted revenue was up 49% in the quarter driven by our acquisition of your change and a strong European travel quarter, which is which is the driver of our travel money business.

Devin McGranahan: Consumer services adjusted revenue was up 49% in the quarter, driven by our acquisition of Eurochange and a strong European travel quarter, which is the driver of our travel money business. I was in London last week with our new team, discussing our plans for 2026, and we remain excited about the potential for expanding that business across both retail and digital channels. We expect consumer services to have another strong quarter to the end of the year, and our travel money business is likely to approach $150 million in revenue in 2026, up from nearly nothing just a few years ago. Adjusted earnings per share came in at $0.47, compared to $0.46 this quarter a year ago. Our discipline in managing operating costs continues to come through.

I was in London last week with our new team discussing our plans for 2026, and we remain excited about the potential for expanding that business across both retail and digital channels.

We expect consumer services to have another strong quarter to the end of the year and our travel money business is likely to approach $150 million in revenue in 2026 up from nearly nothing just a few years ago.

Adjusted earnings per share came in at 47 cents compared to 46 cents this quarter a year ago, our discipline in managing operating cost continues to come through.

Devin McGranahan: Consumer money transfer transactions growth was down 2.5% in the quarter, excluding Iraq, and cross-border principal growth was up mid-single digits on a constant currency basis, speaking to the resilience of our customer base and their perseverance in the current macro environment. While our retail business in the Americas continues to face headwinds associated with the current geopolitical environment, we are encouraged by some improving trends in recent months. While it is too early to say that we have reached the bottom, we are potentially seeing some stabilization. Our strategy continues to perform well with our retail business in Europe with mid-single-digit transaction and revenue growth. Our branded digital business increased transactions by 12% and adjusted revenue by 6% in the quarter.

Matt will discuss our third quarter results and 2025 outlook in more detail later in the call switch.

Devin McGranahan: Matt will discuss our Q3 results in 2025 outlook in more detail later in the call. Switching now briefly to the macro environment. Economic conditions globally remain reasonable, with inflation rates declining in key markets around the world and GDP outlooks remaining relatively strong despite elevated interest rates. These economic conditions are providing a stable backdrop for our business and should improve further as we've begun an interest rate cutting cycle, both here in the United States and in Europe. Globally, migration continues to evolve in complex and dynamic ways. Our business remains fundamentally linked to human mobility. When people move, they rely on Western Union to send money home. This connection makes our business sensitive to shifts in migration patterns, policies, and enforcement practices. The good news is that our business is globally diversified across countries and channels, mitigating much of any one region's specific risk.

Switching now briefly to the macro environment economic.

Conditions globally remain reasonable with inflation rates declining in key markets around the world and GDP outlooks remaining relatively strong despite elevated interest rates. These economic conditions are providing a stable backdrop for our business and should improve further.

As we have begun an interest rate cutting cycle, both here in the United States and in Europe.

Globally migration continues to evolve and complex and dynamic ways, our business remains fundamentally linked to human mobility when people move they rely on western union to send money home.

Devin McGranahan: Consumer services adjusted revenue was up 49% in the quarter, driven by our acquisition of Eurochange and a strong European travel quarter, which is the driver of our travel money business. I was in London last week with our new team discussing our plans for 2026, and we remain excited about the potential for expanding that business across both retail and digital channels. We expect consumer services to have another strong quarter to the end of the year, and our travel money business is likely to approach $150 million in revenue in 2026, up from nearly nothing just a few years ago. Adjusted earnings per share came in at $0.47 compared to $0.46 this quarter a year ago. Our discipline in managing operating costs continues to come through. Matt will discuss our third quarter results and 2025 outlook in more detail later in the call.

This connection makes our business sensitive to shifts in migration patterns policies and enforcement practices.

The good news is that our business is globally diversified across countries and channels mitigating much of any one region specific risk.

When we see trends towards more restrictive migration policies like we're seeing in the United States now it does influence our business recent policy changes have led to a substantial decline in border crossings and an increase in enforcement actions, including work place inspections and depot.

Devin McGranahan: When we see trends towards more restrictive migration policies, like we are seeing in the United States now, it does influence our business. Recent policy changes have led to a substantial decline in border crossings and an increase in enforcement actions, including workplace inspections and deportations, which have created uncertainty and hesitation within migrant communities. These developments continue to impact customer behavior, with some customers reducing transaction frequency or shifting to other channels. That said, the US is not monolithic, and in the quarter, we saw transaction growth that was positive to places like Brazil, India, Haiti, Panama, and Vietnam. Flat to slightly negative in important corridors like the Philippines, Jamaica, Guatemala, and Colombia, offset by significant declines to Mexico, El Salvador, Peru, and Ecuador.

Patients, which have created uncertainty and hesitation within migrant communities.

These developments continue to impact customer behavior, with some customers, reducing transaction frequency or shifting to other channels.

That said the U S is not monolithic and in the quarter. We saw transaction growth that was positive to places like Brazil, India, Haiti, Panama, and Vietnam flat to slightly negative in important corridors like the Philippines Jamaica.

Devin McGranahan: Switching now briefly to the macro environment. Economic conditions globally remain reasonable, with inflation rates declining in key markets around the world and GDP outlooks remaining relatively strong despite elevated interest rates. These economic conditions are providing a stable backdrop for our business and should improve further as we have begun an interest rate cutting cycle both here in the U.S. and in Europe. Globally, migration continues to evolve in complex and dynamic ways. Our business remains fundamentally linked to human mobility. When people move, they rely on Western Union to send money home. This connection makes our business sensitive to shifts in migration patterns, policies, and enforcement practices. The good news is that our business is globally diversified across countries and channels, mitigating much of any one region's specific risk. When we see trends towards more restrictive migration policies, like we are seeing in the U.S.

Mala and Columbia.

<unk> offset by significant declines to Mexico, El Salvador, Peru, and Ecuador.

The U S to Mexico corridor is the most important to monitor going forward to which we have begun to see some recent improvements from the lows in June.

Devin McGranahan: The US to Mexico corridor is the most important to monitor going forward, to which we have begun to see some recent improvements from the lows in June. The Bank of Mexico data would also indicate some improvements, with the most recent month down 8%, improving materially from the June lows. In other instances, we see beneficial new patterns emerging from the macro changes, such as strong growth in outbound remittances in Argentina and growth in corridors like Canada to India and Singapore to Indonesia. Despite these short-term headwinds, we believe the long-term trajectory remains clear. Global migration is not disappearing. It is adapting. People will continue to move in search of opportunity, education, and family, and Western Union will continue to stand with them, providing trusted, compliant, and accessible financial services. Looking ahead, our role is clear.

The bank of Mexico data would also indicate some improvements with the most recent months down 8% improve improving materially from the June lows.

In other instances, we see beneficial new patterns emerging from the macro changes such as strong growth in outbound remittances in Argentina and growth in corridors, like Canada, India, and Singapore to Indonesia.

Despite these short term headwinds we believe the long term trajectory remains clear global migration is not disappearing.

Devin McGranahan: now, it does influence our business. Recent policy changes have led to a substantial decline in border crossings and an increase in enforcement actions, including workplace inspections and deportations, which have created uncertainty and hesitation within migrant communities. These developments continue to impact customer behavior, with some customers reducing transaction frequency or shifting to other channels. That said, the U.S. is not monolithic, and in the quarter, we saw transaction growth that was positive to places like Brazil, India, Haiti, Panama, and Vietnam, flat to slightly negative in important corridors like the Philippines, Jamaica, Guatemala, and Colombia, offset by significant declines to Mexico, El Salvador, Peru, and Ecuador. The U.S. to Mexico corridor is the most important to monitor going forward, to which we have begun to see some recent improvements from the lows in June.

It is adapting people will continue to move in search of opportunity education and family and Western Union will continue to stand with them, providing trusted compliant and accessible financial services.

Looking ahead, our role is clear we will support the evolving needs of senders and receivers with a broad base of solutions that are fast secure and built on trust, our 100 million plus customers around the world are a resilient force and so are we.

Devin McGranahan: We will support the evolving needs of senders and receivers with a broad base of solutions that are fast, secure, and built on trust. Our 100 million-plus customers around the world are a resilient force, and so are we. Over the last several years, we have frequently spoken about our desire to make Western Union a more digital company and to expand our product set to meet the needs of our customers as they evolve. We also see our strong brand recognition and the large base of existing customers as key building blocks to cost effectively build our digital business without having to invest $hundreds of millions in non-scalable marketing. In advance of our Investor Day in a couple of weeks, I want to take a moment to highlight the significant progress we've made in becoming a more digital-centric company. Our transformation is not just about technology.

Over the last several years, we have frequently spoken about our desire to make western Union, a more digital company and to expand our product set to meet the needs of our customers as they evolve.

We also see our strong brand recognition and the large base of existing customers as key building blocks to cost effectively build our digital business without having to invest hundreds of millions of dollars in non scalable marketing.

In advance of our Investor day in a couple of weeks I want to take a moment to highlight the significant progress we've made in becoming a more digital centric company or.

Devin McGranahan: The Bank of Mexico data would also indicate some improvements, with the most recent month down 8%, improving materially from the June lows. In other instances, we see beneficial new patterns emerging from the macro changes, such as strong growth in outbound remittances in Argentina and growth in corridors like Canada to India and Singapore to Indonesia. Despite these short-term headwinds, we believe the long-term trajectory remains clear. Global migration is not disappearing. It is adapting. People will continue to move in search of opportunity, education, and family, and Western Union will continue to stand with them, providing trusted, compliant, and accessible financial services. Looking ahead, our role is clear. We will support the evolving needs of senders and receivers with a broad base of solutions that are fast, secure, and built on trust. Our 100 million-plus customers around the world are a resilient force, and so are we.

Our transformation is not just about technology, it's about re imagining how we serve our customers deepening relationship and unlocking new areas of growth.

Devin McGranahan: It's about reimagining how we serve our customers, deepening relationship, and unlocking new areas of growth. Over the past several quarters, we've accelerated the shift towards digital channels. Our branded digital business has now delivered eight consecutive quarters of mid-single digit or better revenue growth, with strong transaction momentum in key regions like the Middle East and APAC. Our digital business now accounts for over 40% of the principal we move around the world. We are also seeing a continued expansion in our payout to account capabilities, which now represent over half the principal we send through our digital business. Our expansion of card acceptance and digital funding options across both our retail and digital channels is another example of how we're becoming a more digital company. Today, over 55% of all of our money transactions are digital.

Over the past several quarters, we've accelerated the shift towards digital channels. Our branded digital business has now delivered eight consecutive quarters of mid single digit or better revenue growth with strong transaction momentum in key regions like the middle East and APAC.

Our digital business now accounts for over 40% of the principle, we move around the world. We are also seeing a continued expansion in our payout to account capabilities, which now represent over half the principle, we send through our digital business.

Our expansion of card acceptance and digital funding options across both our retail and digital channels is another example of how we're becoming a more digital company today over 55% of all of our money transactions.

Devin McGranahan: Over the last several years, we have frequently spoken about our desire to make Western Union a more digital company and to expand our product set to meet the needs of our customers as they evolve. We also see our strong brand recognition and the large base of existing customers as key building blocks to cost-effectively build our digital business without having to invest hundreds of millions of dollars in non-scalable marketing. In advance of our Investor Day in a couple of weeks, I want to take a moment to highlight the significant progress we've made in becoming a more digital-centric company. Our transformation is not just about technology. It's about reimagining how we serve our customers, deepening relationships, and unlocking new areas of growth. Over the past several quarters, we've accelerated the shift towards digital channels.

Our digital our global digital payment network is a fundamental asset that we will continue to lever and grow as a foundation for future expansion and growth.

Devin McGranahan: Our global digital payment network is a fundamental asset that we will continue to lever and grow as a foundation for future expansion and growth. We've been making progress on our digital wallet strategy. We are now live in 7 countries, having launched Brazil in Q1 and the US in Q2. We have onboarded over 500,000 customers and now have a growing number of active and loyal monthly users. We see real benefits in capturing payouts in our wallets, with Argentina now approaching 15% of all inflows, and Brazil, after less than a year of launch, post-launch, nearing 5%, saving us on commissions and enabling a better and more digital receive customer experience.

We have been making progress on our digital wallet strategy. We are now live in seven countries, having launched Brazil in the first quarter and the U S. In the second we have on boarded over a half a million customers and now have a growing number.

Of active and loyal monthly users.

We see real benefits in capturing payouts and our wallets with Argentina, now approaching 15% of all inflows and Brazil after less than a year of law and post launch nearing 5%.

Saving us on commissions, and enabling a better and more digital receive customer experience, we anticipate change of control regulatory approval in Mexico before the end of the year and have received a license for our digital wallet offering in Australia with an aunt.

Devin McGranahan: Our branded digital business has now delivered eight consecutive quarters of mid-single-digit or better revenue growth with strong transaction momentum in key regions like the Middle East and APAC. Our digital business now accounts for over 40% of the principal we move around the world. We are also seeing a continued expansion in our payout-to-account capabilities, which now represent over half the principal we send through our digital business. Our expansion of card acceptance and digital funding options across both our retail and digital channels is another example of how we're becoming a more digital company. Today, over 55% of all of our money transactions are digital. Our global digital payment network is a fundamental asset that we will continue to lever and grow as a foundation for future expansion and growth. We have been making progress on our digital wallet strategy.

Devin McGranahan: We anticipate change of control regulatory approval in Mexico before the end of the year and have received a license for our digital wallet offering in Australia with an anticipated Q1 launch of 2026. We envision our future as a broad-based, two-sided payment network with digital wallet options on both sides in all of our major markets. We also anticipate being able to facilitate both traditional and digital asset transfers for our customers and potentially others as well. But digital is more than a channel. It is a platform for innovation. This includes our new point-of-sale system, which is now nearly ubiquitous around the world and allows our retail network to connect digitally to all of our account and wallet payout points globally.

Dissipated Q1 launch of 2026.

We envision our future as a broad based two sided payment network with digital wallet options on both sides and all of our major markets.

We also anticipate being able to facilitate both traditional and digital asset transfers for our customers and potentially others as well.

But digital is more than a channel it is a platform for innovation.

This includes our new point of sale system, which is now nearly ubiquitous around the world and allows our retail network to connect digitally to all of our account and wallet payout points globally.

Executing the rollout of a new point of sale system and under 12 months is something that we would not have been able to do just a few years ago and is a true Testament to the progress we are making on the technology front.

Devin McGranahan: Executing the rollout of a new point-of-sale system in under 12 months is something that we would not have been able to do just a few years ago and is a true testament to the progress we are making on the technology front. With this new platform fully implemented in the US, we are continuing to make progress in meeting the needs of our customers with digital payment options. When the new US 1% remittance tax on cash transfers goes into effect in January, we will be well-positioned. Looking ahead, our strategy is clear. We will continue to modernize the movement of money, expand our product suite, and deliver trusted, compliant financial services to our global customer base.

Devin McGranahan: We are now live in seven countries, having launched Brazil in the first quarter and the U.S. in the second. We have onboarded over a half a million customers and now have a growing number of active and loyal monthly users. We see real benefits in capturing payouts in our wallets, with Argentina now approaching 15% of all inflows and Brazil after less than a year of post-launch nearing 5%, saving us on commissions and enabling a better and more digital receive customer experience. We anticipate change of control regulatory approval in Mexico before the end of the year and have received a license for our digital wallet offering in Australia, with an anticipated Q1 launch of 2026. We envision our future as a broad-based, two-sided payment network with digital wallet options on both sides in all of our major markets.

With this new platform fully implemented in the U S. We are continuing to make progress in meeting the needs of our customers with digital payment options when the new U S. 1% remittance tax on cash transfers goes into effect in January we will be well positioned.

Looking ahead, our strategy is clear we will continue to modernize the movement of money expand our product suite and deliver trusted compliant financial services to our global customer base. We are building a platform that is resilient and scalable and ready for the future.

Devin McGranahan: We are building a platform that is resilient, scalable, and ready for the future, and we look forward to discussing this with you more in detail at our Investor Day in just a couple of weeks. To capitalize on our strong brand, trusted customer relationships, and omnichannel platform, we have been enhancing our product suite with new or revamped products that our customers want and value. We have made significant progress in this effort within what is now our consumer services segment. Over the last two years, we have invested in our existing product offering to improve functionality and value and added new products like travel money, prepaid cards, digital wallets, and our out-of-home advertising business. Today, consumer services now accounts for roughly 15% of total company revenues, which is up 70% or over $200 million in just the last two years.

We look forward to discussing this with you more in detail at our Investor day in just a couple of weeks.

To capitalize on our strong brand trusted customer relationships and Omnichannel platform. We have been enhanced we have been enhancing our product suite with new or revamped products that our customers want and value. We have made significant progress in this effort within.

Devin McGranahan: We also anticipate being able to facilitate both traditional and digital asset transfers for our customers and potentially others as well. Digital is more than a channel. It is a platform for innovation. This includes our new point-of-sale system, which is now nearly ubiquitous around the world and allows our retail network to connect digitally to all of our account and wallet payout points globally. Executing the rollout of a new point-of-sale system in under 12 months is something that we would not have been able to do just a few years ago and is a true testament to the progress we are making on the technology front. With this new platform fully implemented in the U.S., we are continuing to make progress in meeting the needs of our customers with digital payment options. When the new U.S.

In what is now our consumer services segment.

Over the last two years, we have invested in our existing product offering to improve functionality and value and added new products like travel money prepaid cards digital wallets and our out of home advertising business today.

Today consumer services now accounts for roughly 15% of total company revenues, which is up 70% or over $200 million in just the last two years that incremental $200 million is about five percentage points of additional revenue growth for the company.

Devin McGranahan: That incremental $200 million is about 5 percentage points of additional revenue growth for the company. Travel Money, which has been a big driver and which we believe will account for roughly $150 million of revenue in 2026, is up from almost nothing in 2023. We believe there is a much longer runway to finding unique and interesting ways to monetize our highly differentiated asset base, including our 100 million-plus customers, our growing portfolio of well-recognized and trusted brands, our global reach and scale, and our digital payments network. More recently, we have seen an opportunity to accelerate our development and use of digital assets.

Evel money, which has been a big driver and which we believe will account for roughly $150 million of revenue in 2026 is up from almost nothing in 2023.

Devin McGranahan: 1% remittance tax on cash transfers goes into effect in January, we will be well positioned. Looking ahead, our strategy is clear. We will continue to modernize the movement of money, expand our product suite, and deliver trusted, compliant financial services to our global customer base. We are building a platform that is resilient, scalable, and ready for the future. We look forward to discussing this with you more in detail at our Investor Day in just a couple of weeks. To capitalize on our strong brand, trusted customer relationships, and omnichannel platform, we have been enhancing our product suite with new or revamped products that our customers want and value. We have made significant progress in this effort within what is now our consumer services segment.

We believe there is a much longer runway to finding unique and interesting ways to monetize our highly differentiated asset base, including our 100 million plus customers, our growing portfolio of well recognized and trusted brands, our global reach and scale and our digital payments.

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More recently, we've seen an opportunity to accelerate our development and use of digital assets.

The work, we've been doing to modernize our technology stack invest in digital payments network and rollout digital wallets around the world are all funded fun foundational enablers that will help us accelerate a digital asset strategy here.

Devin McGranahan: The work we have been doing to modernize our technology stack, invest in digital payments network, and roll out digital wallets around the world are all foundational enablers that will help us accelerate a digital asset strategy. Historically, Western Union has taken a cautious stance towards crypto, driven by concerns around volatility, regulatory uncertainty, and customer protection. However, with the passage of the Genius Act, we are now seeing potentially interesting opportunities to integrate digital assets into our business in ways that enhance efficiency, reduce friction, and improve customer experience. We are actively testing stablecoin-enabled solutions in our treasury operations. These pilots are focused on leveraging on-chain settlement rails to reduce dependency on legacy correspondent banking systems, shorten settlement windows, and improve capital efficiency....

Historically Western Union has taken a cautious stance towards crypto driven by concerns around volatility regulatory uncertainty and customer protection.

Devin McGranahan: Over the last two years, we have invested in our existing product offering to improve functionality and value and added new products like travel money, prepaid cards, digital wallets, and our out-of-home advertising business. Today, consumer services now accounts for roughly 15% of total company revenues, which is up 70% or over $200 million in just the last two years. That incremental $200 million is about 5% of additional revenue growth for the company. Travel money, which has been a big driver and which we believe will account for roughly $150 million of revenue in 2026, is up from almost nothing in 2023. We believe there is a much longer runway to finding unique and interesting ways to monetize our highly differentiated asset base, including our 100 million-plus customers, our growing portfolio of well-recognized and trusted brands, our global reach and scale, and our digital payments network.

However, with the passage of the Genius Act, we are now seeing potentially interesting opportunities to integrate digital assets into our business in ways that enhance efficiency reduce friction and improve customer experience.

We are actively testing stable coin enabled solutions and our treasury operations. These pilots are focused on leveraging on change settlement rails to reduce dependency on legacy correspondent banking systems shortened settlement windows and improve capital efficiency, we see significant opportunities.

For us to be able to move money faster with greater transparency and at lower cost without compromising compliance our customer trust.

Devin McGranahan: We see significant opportunities for us to be able to move money faster, with greater transparency, and at lower cost, without compromising compliance or customer trust. Beyond treasury, we are exploring how our global payments network can serve as an on-ramp and an off-ramp between fiat and digital currencies. We are seeing strong interest from potential digital native partners using our infrastructure to bridge these worlds, particularly in regions where access to traditional banking is limited, but crypto adoption is growing. Finally, we are expanding our partnerships and capabilities to allow customers to move and hold stablecoin digital assets. This is not about speculation. It is about giving our customers more choice and control in how they manage and move their money.

Beyond Treasury, we are exploring how our global payments network can serve as an on ramp in an off ramp between Fiat and digital currencies.

We are seeing strong interest from potential.

Potential partner potential digital native partners using our infrastructure to bridge. These worlds, particularly in regions, where access to traditional banking is limited, but crypto adoption is growing.

Devin McGranahan: More recently, we have seen an opportunity to accelerate our development and use of digital assets. The work we have been doing to modernize our technology stack, invest in digital payments network, and roll out digital wallets around the world are all foundational enablers that will help us accelerate a digital asset strategy. Historically, Western Union has taken a cautious stance towards crypto, driven by concerns around volatility, regulatory uncertainty, and customer protection. However, with the passage of the Genius Act, we are now seeing potentially interesting opportunities to integrate digital assets into our business in ways that enhance efficiency, reduce friction, and improve customer experience. We are actively testing stablecoin-enabled treasury solutions in our treasury operations. These pilots are focused on leveraging on-chain settlement rails to reduce dependency on legacy correspondent banking systems, shorten settlement windows, and improve capital efficiency.

Finally, we are expanding our partnerships and capabilities to allow customers to move and hold stable coin digital assets. This is not about speculation is about giving our customers more choice and control and how they manage and move their money in many parts of the world being able to hold.

Devin McGranahan: In many parts of the world, being able to hold a US dollar-denominated asset has real value, as inflation and currency devaluation can rapidly erode an individual's purchasing power. These innovations align closely with our broader strategy to modernize the movement of money. They complement our investments in digital channels, pay out to account capabilities, and next-generation platforms like our digital wallets. Together, they position Western Union to lead in a future where digital assets could play a growing role in global finance. We look forward to sharing more with you at our Investor Day in a couple of weeks. In closing, I want to reiterate our confidence in the path we are on. Western Union is transforming. We are becoming more digital, more agile, and more aligned with the evolving needs of our global customer base.

<unk> a U S dollar denominated asset has real value as inflation and currency devaluation can rapidly erode and individuals' purchasing power.

These innovations align closely with our broader strategy to modernize the movement of money. They complement our investments in digital channels path to account capabilities in next generation platforms like our digital wallets together they position Western Union to lead in a future.

Sure where digital asset could play a growing role in global finance, we look forward to sharing more with you at our Investor day in a couple of weeks.

In closing I want to reiterate our confidence in the path. We are on Western Union is transforming we are becoming more digital more agile and more aligned with the evolving needs of our global customer base, we are expanding our product suite modernizing our platforms and unlocking new opportunities.

Devin McGranahan: We see significant opportunities for us to be able to move money faster, with greater transparency and at lower cost, without compromising compliance or customer trust. Beyond treasury, we are exploring how our global payments network can serve as an on-ramp and an off-ramp between fiat and digital currencies. We are seeing strong interest from potential digital native partners using our infrastructure to bridge these worlds, particularly in regions where access to traditional banking is limited, but crypto adoption is growing. Finally, we are expanding our partnerships and capabilities to allow customers to move and hold stablecoin digital assets. This is not about speculation. It is about giving our customers more choice and control in how they manage and move their money.

Devin McGranahan: We are expanding our product suite, modernizing our platforms, and unlocking new opportunities for growth across all of our channels. This transformation is not just about technology. It's about building a resilient, scalable business that delivers trusted financial services in a rapidly changing world. Whether it's through faster account-directed payments, expanded digital wallet capabilities, or innovative digital asset-enabled solutions, we are positioning Western Union to lead in the future of cross-border money movement. We remain focused, disciplined, and optimistic. Our strategy is working, our execution is accelerating, and our platform is stronger than ever. I look forward to sharing more with you at our upcoming Investor Day and continuing this journey with all of you. Thank you. I would now like to turn the call over to Matt Cagwin, our Chief Financial Officer.

<unk> for growth across all of our channels.

This transformation is not just about technology, it's about building a resilient and scalable business that delivers trusted financial services in a rapidly changing world whether it's through faster account directed payments expanded digital wallet capabilities, our innovative digital asset enabled.

<unk>, we are positioning western union to lead in the future of cross border money movement.

We remain focused disciplined and optimistic our strategy is working our execution is accelerating and our platform is stronger than ever I look forward to sharing more with you at our upcoming at our upcoming Investor day and continuing this journey with all of you. Thank you.

Devin McGranahan: In many parts of the world, being able to hold a US dollar-denominated asset has real value, as inflation and currency devaluation can rapidly erode an individual's purchasing power. These innovations align closely with our broader strategy to modernize the movement of money. They complement our investments in digital channels, payout-to-account capabilities, and next-generation platforms like our digital wallets. Together, they position Western Union to lead in a future where digital assets could play a growing role in global finance. We look forward to sharing more with you at our Investor Day in a couple of weeks. In closing, I want to reiterate our confidence in the path we are on. Western Union is transforming. We are becoming more digital, more agile, and more aligned with the evolving needs of our global customer base.

I would now like to turn the call over to Matt <unk>, Our Chief Financial Officer.

Thank you Devin and good afternoon, everyone I'm delighted to be here today to walk you through our third quarter results as well as our 2025 financial outlook.

Matt Cagwin: Thank you, Devin, and good afternoon, everyone. I'm delighted to be here today to walk you through our Q3 results, as well as our 2025 financial outlook. In the Q3, GAAP revenue was $1.033 billion. In consistent with our expectations, our adjusted revenue, excluding Iraq, was down 1%, driven by growth in consumer services and branded digital, offset by our retail business. Our industry-leading adjusted operating margins was 20% in the quarter, up from 19% in the prior year period. Our adjusted operating margins primarily benefited from the from the continued cost discipline that we've now completed our cost redeployment program two years ahead of schedule. Adjusted EPS was better than our expectations, at $0.47 in the current period, compared to $0.46 in the prior year.

In the third quarter GAAP revenue was $1.033 billion and consistent with our expectations. Our adjusted revenue, excluding Iraq was down 1% driven by growth in consumer services and branded digital offset by our retail business.

Our industry, leading adjusted operating margins was 20% in the quarter up from 19% in the prior year period, our adjusted operating margins primarily benefited from the from the continued cost discipline that we have not as we've now completed our cost redeployment program two years ahead of schedule.

Adjusted EPS was better than our expectations at 47 cents in the current period compared to <unk> 46 cents in the prior year adjusted EPS benefited from our cost management discipline as well as fewer shares outstanding primarily offset by higher interest expense and higher adjusted tax rate.

Matt Cagwin: Adjusted EPS benefited from our cost management discipline, as well as fewer shares outstanding, primarily offset by higher interest expense and higher adjusted tax rate. Our adjusted effective tax rate was 12% in the quarter, up from 8% in the prior year period. The adjusted effective tax rate was higher due to discrete benefits in the prior year period. Consumer Services adjusted revenue was up 49% in the third quarter, driven by our Travel Money business and strength in our Bill Pay business. The Consumer Services segment has accelerated since the first quarter due to the acquisition of Eurochange. Our Travel Money business drove about half of our growth this quarter. Organically, Consumer Services continue to grow double-digit. And as expected, Consumer Services margins have improved 1,300 basis points to 22% in the third quarter as our new products have begun to scale.

Our adjusted effective tax rate was 12% in the quarter up from 8% in the prior year period.

The adjusted effective tax rate was higher due to discrete benefits in the prior year period.

Consumer services adjusted revenue was up 49% in the third quarter, driven by our travel money business and strengthen our bill pay business.

The consumer services segment has accelerated since the first quarter due to the acquisition of Euro change.

Our travel money business drove about half of our growth this quarter organically consumer services continue to grow double digit.

And as expected consumer service margins have improved 300 basis points to 22% in the third quarter as our new products have begun to scale.

Tom Hadley: Thank you, Devin, and good afternoon, everyone. I'm delighted to be here today to walk you through our third quarter results as well as our 2025 financial outlook. In the third quarter, GAAP revenue was $1,033,000,000, and consistent with our expectations, our adjusted revenue, excluding Iraq, was down 1%, driven by growth in consumer services and branded digital, offset by our retail business. Our industry-leading adjusted operating margins were 20% in the quarter, up from 19% in the prior year period. Our adjusted operating margins primarily benefited from the continued cost discipline now that we've completed our cost reappointment program two years ahead of schedule. Adjusted EPS was better than our expectations at $0.47 in the current period compared to $0.46 in the prior year. Adjusted EPS benefited from our cost management discipline as well as fewer shares outstanding, primarily offset by higher interest expense and higher adjusted tax rate.

As Devin mentioned, we've made meaningful progress expanding the products and services, we offer and we believe there is meaningful runway ahead.

Matt Cagwin: As Devin mentioned, we've made meaningful progress expanding the products and services we offer, and we believe there's meaningful runway ahead. Travel Money is a great example. It is now $100 million of revenue and on its way to $150 million next year, from close to nothing just a few years ago. We believe there are many other potential opportunities to serve our 100 million-plus customers and look forward to sharing those as ideas develop and get launched. Now turning to our Consumer Money Transfer or CMT business. Transactions declined 3% in the quarter, or 2% excluding Iraq. US immigration policies continue to disrupt our business, although the third quarter was not meaningfully different than what we saw in the second quarter. Customers continue to send fewer transactions, but higher average principal per transaction.

Travel money is a great example.

It is now $100 million of revenue and on its way to $150 million next year from close to nothing just a few years ago.

We believe there are many other potential opportunities to serve our 100 million plus customers and look forward to sharing those.

Ideas develop and get launched.

Now turning to our consumer money transfer or CMT business.

Transactions declined 3% in the quarter or 2% excluding Iraq.

U S immigration policies continue to disrupt our business, although the third quarter was not meaningfully different than what we saw in the second quarter.

Customers continue to send fewer transactions, but higher average principal per transaction, our ppt increase roughly 6% in the third quarter compared to the prior year on a constant currency basis.

Matt Cagwin: Our PPT increased roughly 6% in Q3 compared to the prior year on a constant currency basis. Our branded digital business grew adjusted revenue 6% and transactions by 12%. This marks the eighth straight quarter of solid revenue growth. It also marks a return of double-digit transaction growth, driven by the Middle East, where we saw meaningful acceleration of our business from partnerships that we announced in Q2 of this year. These partnerships are primarily focused on account-to-account transactions, which has put pressure on the gap between revenue and transactions. However, we're super excited about these relationships because they expand our reach in the fast-growing Middle East. We also continue to see strong growth in our digitally initiated paid out to account business.

Tom Hadley: Our adjusted effective tax rate was 12% in the quarter, up from 8% in the prior year period. The adjusted effective tax rate was higher due to discrete benefits in the prior year period. Consumer services adjusted revenue was up 49% in the third quarter, driven by our travel money business and strength in our bill pay business. The consumer services segment has accelerated since the first quarter due to the acquisition of Eurochange. Our travel money business drove about half of our growth this quarter. Organically, consumer services continue to grow double-digit. As expected, consumer service margins have improved 1,300 basis points to 22% in the third quarter, as our new products have begun to scale. As Devin mentioned, we've made meaningful progress expanding the products and services we offer, and we believe there's meaningful runway ahead. Travel money is a great example.

Our branded bid our branded digital business grew adjusted revenue, 6% and transactions by 12%. This marks the eighth straight quarter of solid revenue growth.

It also marks a return of double digit transaction growth driven by the middle East, where we saw a meaningful acceleration of our business from partnerships that we announced in the second quarter. This year. These.

These partnerships are primarily focused on account to account transactions, which has put pressure on the gap between revenue and transactions.

However, we're super excited about these relationships because they expand our reach in the fast growth in the fast growing middle East.

We also continue to see strong growth in our digitally initiated paid out to account business.

In the quarter principal grew over 40% and now accounts for over 50% of all principal sent from our branded digital business.

Matt Cagwin: In the quarter, principal grew over 40% and now accounts for over 50% of all principals sent from our branded digital business. We continue to expand our payout capabilities worldwide to meet the evolving needs of every customer segment. The rising demand of account-directed payouts reflects our customers' desire for speed, flexibility, and convenience. This shift provides a unique opportunity to deliver higher quality services while building a long-lasting relationship with our customers. Turning to our retail business. Overall, the performance has remained relatively consistent with Q2, with softness in North America, driven by the effects of immigration policies and mid-single-digit revenue growth in Europe. Now turning to our cash flow and balance sheet. We have generated over $400 million in operating cash flow year to date, compared to $272 million in the prior year period.

We continue to expand our payout capabilities worldwide to meet the evolving needs of every customer segment.

Tom Hadley: It is now $100 million of revenue and on its way to $150 million next year, from close to nothing just a few years ago. We believe there are many other potential opportunities to serve our 100 million-plus customers and look forward to sharing those as ideas develop and get launched. Now turning to our consumer money transfer, or CMT, business. Transactions declined 3% in the quarter, or 2% excluding Iraq. U.S. immigration policies continue to disrupt our business, although the third quarter was not meaningfully different than what we saw in the second quarter. Customers continue to send fewer transactions, but higher average principal per transaction. Our PPT increased roughly 6% in the third quarter compared to the prior year on a constant currency basis. Our branded digital business grew adjusted revenue 6% and transactions by 12%. This marks the eighth straight quarter of solid revenue growth.

The rising demand of account directed payouts reflects our customers' desire for speed flexibility and convenience.

This shift provides a unique opportunity to deliver higher quality service, while building a long lasting relationship with our customers.

Turning to our retail business overall the performance has remained relatively consistent with the second quarter with softness in North America, driven by the effects of immigration policies and mid single digit revenue growth in Europe.

Now turning to cash now turning to our cash flow and balance sheet, we have generated over $400 million in operating cash flow year to date compared to $272 million in the prior year period.

Included in this number is over $200 million in cash taxes paid this year related to the transition tax.

Matt Cagwin: Included in this number is over $200 million in cash taxes paid this year related to the transition tax. We're excited about these obligations being behind us and look forward to the additional flexibility that we'll have to invest our free cash flow in support of our business or return to our owners. Year to date, our CapEx was $101 million, up 10% year-over-year. I'd like to highlight that our CapEx will be up slightly this year versus prior trends, as this has been a large strategic agent renewal year, as well as we've had an infrastructure refresh. We continue to maintain our strong balance sheet with cash and cash equivalents of roughly $1 billion and debt of $2.6 billion.

We're excited about these obligations being behind us and look forward to the additional flexibility that we'll have to invest our free cash flow in support of our business or return to our owners.

Tom Hadley: It also marks a return of double-digit transaction growth driven by the Middle East, where we saw meaningful acceleration of our business from partnerships that we announced in the second quarter of this year. These partnerships are primarily focused on account-to-account transactions, which has put pressure on the gap between revenue and transactions. However, we're super excited about these relationships because they expand our reach in the fast-growing Middle East. We also continue to see strong growth in our digitally initiated paid-out-to-account business. In the quarter, principal grew over 40% and now accounts for over 50% of all principal sent from our branded digital business. We continue to expand our payout capabilities worldwide to meet the evolving needs of every customer segment. The rising demand of account-directed payouts reflects our customers' desire for speed, flexibility, and convenience.

Year to date, our Capex was $101 million up 10% year over year.

I'd like to highlight that our capex will be up slightly this year versus prior trends.

As this has been a large strategic agent renewal year as well without infrastructure refresh.

We continue to maintain our strong balance sheet with cash and cash equivalents of roughly $1 billion and debt of $2 6 billion.

Our leverage ratios remain at two six times and one seven times on a gross and net basis, which we believe provides us ample flexibility to return capital or potential M&A, while maintaining our investment grade credit rating.

Matt Cagwin: Our leverage ratios remain at 2.6 times and 1.7 times on a gross and net basis, which we believe provides us ample flexibility to return capital or potential M&A while maintaining our investment-grade credit rating. In Q3, we returned over $120 million to our owners via dividends and share repurchases, and over $400 million during the first nine months of this year. This represents a cash return to our owners of over 15% based on our current market cap through the first nine months of this year. Now moving on to our 2025 outlook, which assumes no material changes in macroeconomic conditions. We are reaffirming our guidance today, which includes adjusted revenue to be in the range of $4.035 billion to $4.135 billion.

In the third quarter, we returned over $120 million to our owners via dividends and share repurchases.

Tom Hadley: This shift provides a unique opportunity to deliver higher quality services while building a long-lasting relationship with our customers. Turning to our retail business, overall, the performance has remained relatively consistent with the second quarter, with softness in North America driven by the effects of immigration policies and mid-single-digit revenue growth in Europe. Now turning to our cash flow and balance sheet, we have generated over $400 million in operating cash flow year to date compared to $272 million in the prior year period. Included in this number is over $200 million in cash taxes paid this year related to the transition tax. We're excited about these obligations being behind us and look forward to the additional flexibility that we'll have to invest our free cash flow in support of our business or return to our owners. Year to date, our CapEx was $101 million, up 10% year over year.

And over $400 million during the first nine months of this year.

This represents a cash returned to our owners of over 15%.

Based on our current market cap through the first nine months of this year.

Now moving onto our 2025 outlook, which assumes no material changes in macroeconomic conditions.

We are reaffirming our guidance today, which include adjusted revenue to be in the range of $4 billion $35 billion to $4 billion $135 million.

However, based on our current trends, we anticipate adjusted revenue to be at the lower end of this range. This range reflects the continued benefit of our branded digital business.

Matt Cagwin: However, based on our current trends, we anticipate adjusted revenue to be at the lower end of this range. This range reflects the continued benefit of our branded digital business, double-digit growth in consumer services, and a slight improvement in retail. I would also like to remind everyone that our consumer services, consumer service business has different seasonality than our CMT business. Travel Money is seasonally higher in the Q2 or Q3, and I'd also like to remind everyone that we had a very strong media network business in the Q4 of last year due to higher media demands related to the US presidential election. These comments are not meant to foreshadow consumer service growth being below our double-digit goal, but rather to highlight it will probably not be at 49% next quarter.

Double digit growth in consumer services, and a slight improvement in retail.

I would also like to remind everyone that our consumer services consumer service business.

As different seasonality than our CMT business travel money is seasonally higher in the second and the third quarter.

And I'd also like to remind everyone that we had a very strong media network business in the fourth quarter of last year due to higher media demands related to the U S presidential election. These.

Tom Hadley: I'd like to highlight that our CapEx will be up slightly this year versus prior trends, as this has been a large strategic agent renewal year, as well as we've had an infrastructure refresh. We continue to maintain our strong balance sheet with cash and cash equivalents of roughly $1 billion and debt of $2.6 billion. Our leverage ratios remain at 2.6 times and 1.7 times on a gross and net basis, which we believe provides us ample flexibility to return capital or potential M&A while maintaining our investment-grade credit rating. In the third quarter, we returned over $120 million to our owners via dividends and share repurchases and over $400 million during the first nine months of this year. This represents a cash return to our owners of over 15% based on our current market cap through the first nine months of this year.

These comments are not meant to foreshadow consumer service growth being below our double digit goal, but rather to highlight it will probably not be a 49% next quarter.

Yeah.

We continue to expect adjusted operating margins to be in the range of 19% to 21% and finally, we expect adjusted EPS to be in the range of $1 65 to $1 75.

Matt Cagwin: We continue to expect adjusted operating margins to be in the range of 19% to 21%. Finally, we expect adjusted EPS to be in the range of $1.65 to $1.75. Based on our current trends, we expect adjusted EPS to be at the upper end of this range. In conclusion, I want to emphasize the momentum that we're building across our business. Western Union is executing with discipline, clarity, and delivering results while transforming for the future. Our strategic focus is on becoming a more digital-first company, is yielding tangible outcomes. This is the eighth consecutive quarter of mid-single-digit branded digital revenue growth or better. To also the rapid expansion of our payout to account capabilities. We're not just adapting to change; we're also leaning into it. Our consumer services segment is unlocking new revenue streams.

Based on our current trends, we expect adjusted EPS to be the upper end of this range.

In conclusion I want to emphasize the momentum that we're building across our business Western Union is executing with discipline.

Clarity and delivering results, while transforming for the future.

Our strategic focus is on becoming a more digital first company is yielding tangible outcomes. This.

This is the eighth consecutive quarter of mid single digit branded digital revenue growth or better.

Tom Hadley: Now moving on to our 2025 outlook, which assumes no material changes in macroeconomic conditions. We are reaffirming our guidance today, which includes adjusted revenue to be in the range of $4,035 million to $4,135 million. However, based on our current trends, we anticipate adjusted revenue to be at the lower end of this range. This range reflects the continued benefit of our branded digital business, double-digit growth in consumer services, and a slight improvement in retail. I would also like to remind everyone that our consumer services business has different seasonality than our CMT business. Travel money is seasonally higher in the second and the third quarter, and I'd also like to remind everyone that we had a very strong media network business in the fourth quarter of last year due to higher media demands related to the U.S. presidential election.

Also the rapid expansion of our payout to account capabilities.

We're not just adapting to change we're also leaning into it our consumer services segment is unlocking new revenue streams, our operational efficiency program has exceeded expectations and our financial Foundation remains strong which gives us the flexibility to invest in innovation as well as returning capital to shareholders I look forward.

Matt Cagwin: Our operational efficiency program has exceeded expectations, and our financial foundation remains strong, which gives us the flexibility to invest in innovation as well as returning capital to shareholders. I look forward to seeing many of you at our Investor Day on 6 November, and thank you for joining today's call. Operator, we're ready to take questions.

We're seeing many of you at our Investor Day on November six.

And thank you for joining today's call operator, we're ready to take questions. We will pause momentarily to compile the Q&A roster. As a reminder, each person is allowed one question with one follow up question.

Operator: We will pause momentarily to compile the Q&A roster. As a reminder, each person is allowed one question with one follow-up question. All participants will be in listen-only mode. Our first question comes to us from Tien-tsin Huang from J.P. Morgan. Ask your question.

All participants will be in listen only mode.

Tom Hadley: These comments are not meant to foreshadow consumer services growth being below our double-digit goal, but rather to highlight it will probably not be at 49% next quarter. We continue to expect adjusted operating margins to be in the range of 19% to 21%, and finally, we expect adjusted EPS to be in the range of $1.65 to $1.75. Based on our current trends, we expect adjusted EPS to be at the upper end of this range. In conclusion, I want to emphasize the momentum that we're building across our business. Western Union is executing with discipline, clarity, and delivering results while transforming for the future. Our strategic focus on becoming a more digital-first company is yielding tangible outcomes. This is the eighth consecutive quarter of mid-single-digit branded digital revenue growth or better, to also the rapid expansion of our payout-to-account capabilities.

Our first question comes to us from Tien Tsin Huang from JP Morgan ask your question.

Hey, Thanks, good afternoon.

With all of you again, no surprises it sounds like.

Tien-Tsin Huang: Hey, thanks. Good afternoon. Good to catch up with all of you. Yeah, no, no surprises. It sounded like you were encouraged by some of the recent trends in recent months in the retail and Americas segment, Devin, your prepared remarks. Can you maybe elaborate on that? Was that just some of the Mexico statements you made in the recent months? Just, just want to get a little bit more detail on that.

And it sounded like you were encouraged by some of the recent trends in recent months and the retail in America.

Americas segment data in your prepared remarks can you maybe elaborate on that was that just some of the Mexico statements you made.

In the recent months just wanted to get a little bit more detail on that yeah, Tien tsin banks, we are seeing.

Devin McGranahan: Yeah, Tien-tsin Huang, thanks. We are seeing the lows from the midsummer have come back a bit, particularly in Mexico, but more or less, you know, across some of the important corridors. As highlighted in the prepared comments, we still see corridors that are growing and some important ones that are now approaching what I'll call stable or flat. So we remain positive that in the back half of the year, those trends will continue and the outlook will improve. But I would say things are still lumpy.

The lows from the mid summer have have come back a bit, particularly in Mexico, but more or less.

Ross some of the important corridors as highlighted in the prepared comments, we still see corridors that are growing and some important ones that are now approaching.

What I would call stable or flat. So we remain positive that in the back half of the year. Those trends will continue in the outlook will improve but I would say things are still lumpy.

Tom Hadley: We're not just adapting to change; we're also leaning into it. Our consumer services segment is unlocking new revenue streams. Our operational efficiency program has exceeded expectations, and our financial foundation remains strong, which gives us the flexibility to invest in innovation as well as return capital to shareholders. I look forward to seeing many of you at our Investor Day on November 6, and thank you for joining today's call. Operator, we're ready to take questions. We will pause momentarily to compile the Q&A roster. As a reminder, each person is allowed one question with one follow-up question. All participants will be in listen-only mode. Our first question comes to us from Tien-Tsin Huang from J.P. Morgan. Ask your question.

Okay. Good.

Yes.

Tien-Tsin Huang: Good. Good. I'll ask on consumer services quickly, just travel money. You mentioned a few times, it'll probably grow 50% next year. Just curious on the visibility there and, and the incremental margins on that business, just to, just to highlight it, because it is a bigger contributor now.

On consumer services quickly just travel money you mentioned, a few times probably grow 50% next year.

Curious on the visibility there and the incremental margins on that business just to highlight it because it is a.

Are you a contributor.

Go.

<unk>.

Matt Cagwin: Hey, thanks on the call. So our expansion next year is we'll have 1 more quarter of the carryover from Eurochange. We're pushing into other new markets because now we've got a good scale, we've got a management team that's very competent. As Devin talked about, we were in Europe last week, and we actually spent most of the week with the management team there and came away very impressed by their quality of the stores, the strength of management team, and their vision for how we can continue to expand both same-store sales as well as across new footprints. And then the last little fun fact for you, when we did the acquisition, we had talked probably 2 quarters ago, that we bought it for a little under 5 times.

So our expansion next year as we will have one more quarter of the grow over from Euro change, we're pushing into other new markets based on how we've got a good scale. We've got a management team that's very competent as Devin talked about we were in Europe last week and we actually spent most of the week with the management team there and came away very impressed by their.

Quality of the stores the store.

The management team and their vision for how we can continue to expand.

Both the same store sales as well as across our new footprints.

And in the last little photo Fun fact for you when we did the acquisition we had talked probably two quarters ago that we bought it for a little under five times now having owned it for a couple of quarters. They are meaningfully above our models that we have done and on track to have a great return for us.

Matt Cagwin: Hey, thanks. Good afternoon. Good to catch up with all of you. Yeah, no surprises, it sounds like, and it sounded like you were encouraged by some of the recent trends in recent months in the retail and America segment. Devin, in your prepared remarks, can you maybe elaborate on that? Was that just some of the Mexico statements you made in the recent months? Just want to get a little bit more detail on that.

Matt Cagwin: Now, having owned it for a couple of quarters, they're meaningfully above our models that we had done and on track to have a great return for us.

Great. Thanks, John I've seen a couple of weeks.

Tien-Tsin Huang: Great. Nice job. See you in a couple of weeks.

Our next question comes to Us from Darrin Peller from Wolfe Research. Please ask your question.

Devin McGranahan: Yeah, Tien-Tsin, thanks. We are seeing the lows from the midsummer have come back a bit, particularly in Mexico, but more or less across some of the important corridors. As highlighted in the prepared comments, we still see corridors that are growing and some important ones that are now approaching what I'll call stable or flat. We remain positive that in the back half of the year, those trends will continue and the outlook will improve, but I would say things are still lumpy.

Operator: Our next question comes to us from Darren Peller from Wolfe Research. Please ask your question.

Okay.

Cindy.

Profitability.

Darrin Peller: See the profitability comment. You know, we see history, but I wouldn't more on where you see what penetration going on, companies, which levels now?

Albert.

Yes.

Sure.

Overall, we are use penetration.

Yeah.

Okay.

Hey, Darren.

Yes can you hear me for your Mic is really really hard.

Devin McGranahan: Hey, Darren?

Darrin Peller: Yeah, can you hear me?

Devin McGranahan: Your, your mic is really, really hard.

I think you might be better now try it again.

Darrin Peller: Uh-

Operator: I think you might be better now. Try it again.

Devin McGranahan: I think you might be better now. Try it again.

Just the.

Salaries penetration.

Matt Cagwin: Good. On consumer services quickly, just travel money, you mentioned a few times it'll probably grow 50% next year. Just curious on the visibility there and the incremental margins on that business, just to highlight it because it is a bigger contributor now.

Darrin Peller: Just repeat your same reason on penetration.

Then you got a bad connection maybe maybe try coming back in and we'll put you back in the queue Alright, no problem in China. Thank you.

Devin McGranahan: No, Darren, Darren, you got a bad connection. Maybe, maybe try coming back in and we'll-

Darrin Peller: Okay.

Devin McGranahan: We'll put you back in the queue.

Darrin Peller: All right, no problem. Let me try again.

Our next question comes through from will Nance from Goldman Sachs. Please ask your question.

Devin McGranahan: Thank you.

Operator: Our next question comes to us from Will Nance, from Goldman Sachs. Please ask your question.

[Analyst]: Yeah, it's an excellent call. Our expansion next year is we'll have one more quarter of the growover from Eurochange. We're pushing into other new markets based on now we've got a good scale. We've got a management team that's very competent. As Devin talked about, we were in Europe last week and we actually spent most of the week with the management team there and came away very impressed by their quality of the stores, the strength of the management team, and their vision for how we can continue to expand both the same store sales as well as across new footprints. The last little fun fact for you, when we did the acquisition, we had talked probably two quarters ago that we bought it for a little under five times.

Hey, guys. Thanks for taking the question.

William Nance: Hey, guys. Thanks for taking the question. I hope my audio is not also bad, but because I'm hearing it on a couple of people's calls now. So I guess I just wanted to hit on some of the trends that you saw on LACA. It looked like the trends there actually got a little bit better this quarter. So maybe just echoing the earlier question on the North American trends. Anything to kind of call out in just the linearity of results? Are we starting to hit easier comps and maybe some of the, you know, starting to lap some of the changes in migration patterns, and just any color on how you're thinking about that over the next, or in the near term?

Will Nance: Hey, guys. Thanks for taking the question. I hope my audio is not also bad, but because I'm hearing it on a couple of people's calls now. So I guess I just wanted to hit on some of the trends that you saw on LACA. It looked like the trends there actually got a little bit better this quarter. So maybe just echoing the earlier question on the North American trends. Anything to kind of call out in just the linearity of results? Are we starting to hit easier comps and maybe some of the, you know, starting to lap some of the changes in migration patterns, and just any color on how you're thinking about that over the next, or in the near term?

My audio is not also bad but.

Because I'm hearing it on a couple of People's calls now.

So I guess I just wanted to hit on some of the trends that you saw on <unk>. It looks like the trends there actually got a little bit better this quarter. So maybe just echoing the earlier question on the North American trends.

Anything to kind of call out and just the linearity of results are we starting to hit easier comps and maybe some of the P&L starting to lap some of the changes on migration patterns and just any color on how youre thinking about that over the next.

In the near term, yes, so couple of things one we've seen some overall market stability, which we commented in the public comments and as you know it was in this quarter last year, where we highlighted the impacts and the effects of the then recent elections across certain parts of South America.

[Analyst]: Now having owned it for a couple of quarters, they're meaningfully above our models that we had done and on track to have a great return for us.

Devin McGranahan: Yeah, and so a couple of things. One, we've seen some overall market stability, which we commented in the public comments. And as you know, it was in this quarter last year where we highlighted the impacts and the effects of the then recent elections across certain parts of South America, Northern South America, and Latin America. We are now starting to see the lapping effects of some of those declines when the Darién Gap was closed and when we had presidential elections in Venezuela and a few other places, including Mexico. And so I think you're starting to see both the effects of some market stability as well as now we're a year into what was a relatively significant change in outlook and trajectory for the region following a series of elections.

Matt Cagwin: Great. Nice job. See you in a couple of weeks.

Tom Hadley: Our next question comes to us from Darrin Peller from Wolfe Research. Please ask your question.

In South America.

Latin America.

[Analyst]: Let's see the profitability comment. Yeah, we see the industry, but I wouldn't focus more on where you see penetration going long term. Companies reaching levels now.

We are now starting to see the lapping effects of some of those declines when the diary and gap was closed and when we had presidential elections.

In Venezuela, and a few other places, including Mexico, and so I think youre starting to see both the effects of some market stability as well as now we're a year into what was a relatively significant change.

Devin McGranahan: Hey, Darren.

[Analyst]: Yeah, can you hear me?

Devin McGranahan: Your mic is really, really hard. I think you might be better now. Try it again.

In outlook and trajectory for the region following a series of elections.

[Analyst]: Just reaching about the same reason, penetration.

Devin McGranahan: No, Darrin, you got a bad connection. Maybe try coming back in and we'll put you back in the queue.

[Analyst]: All right, no problem. We'll try again.

Devin McGranahan: Thank you.

Our next.

Tom Hadley: Our next question comes to us from William Nance from Goldman Sachs. Please ask your question.

Question.

Comes to us from Bryan Keane from Citi. Please ask your question.

Operator: Our next question comes to us from Brian Keane, from Citi. Please ask your question.

Operator: Our next question comes to us from Bryan Keane, from Citi. Please ask your question.

Hey, guys. How are you doing thanks for having me on the call.

[Analyst]: Hey, guys. Thanks for taking the question. I hope my audio is not also bad, because I'm hearing it on a couple of people's calls now. I just wanted to hit on some of the trends that you saw on LATA. It looked like the trends there actually got a little bit better this quarter. Maybe just echoing the earlier question on the North American trends. Anything to call out in the linearity of results? Are we starting to hit easier comps and maybe starting to lap some of the changes in migration patterns, and any color on how you're thinking about that over the next, in the near term?

Tien-Tsin Huang: Hey, guys, how you doing? Thanks for having me on the call. Just wanted to ask on digital in particular, it improved from 9% to 12% in transaction growth from the second to third quarter, but the revenue growth stayed about the same at 6%. Just trying to figure out the delta change there, why we didn't see a lift in the revenue as well?

Bryan Keane: Hey, guys, how you doing? Thanks for having me on the call. Just wanted to ask on digital in particular, it improved from 9% to 12% in transaction growth from the second to third quarter, but the revenue growth stayed about the same at 6%. Just trying to figure out the delta change there, why we didn't see a lift in the revenue as well?

Just wanted to ask on digital in particular at <unk>.

Proved from 9%, 12% and transaction growth from the second and third quarter, but the revenue growth stayed about the same at six.

Just trying to figure out the Delta change there why we didn't see a lift in revenue as well hey, Brian. Thanks for joining the call really the vast majority of the acceleration we saw from our partnerships in the middle East, which are account account payout, which as you know come generally with a lower RPT.

Matt Cagwin: Hey, Brian, thanks for joining the call. Really, the vast majority of the acceleration we saw from our partnerships in the Middle East, which are account-to-account payout, which, as you know, come generally with a lower RPT. So it's really a combination of that. So we've seen a little bit of what had a hair of slowdown in revenue and trans about flat, but that didn't help provide a little uplift on both sides.

Devin McGranahan: Yeah, I mean, a couple of things. One, we've seen some overall market stability, which we commented in the public comments. As you know, it was in this quarter last year where we highlighted the impacts and the effects of the then recent elections across certain parts of South America, Northern South America, and Latin America. We are now starting to see the lapping effects of some of those declines when the Darien Gap was closed and when we had presidential elections in Venezuela and a few other places, including Mexico. I think you're starting to see both the effects of some market stability as well as now we're a year into what was a relatively significant change in outlook and trajectory for the region following a series of elections.

So it's really a combination of that so we've seen a little bit of what had a hair of slowdown in revenue in trans about flat, but that then I'll provide a little uplift on both sides.

I think the Brian the other thing that we've historically talked about given the current market dynamics were new customer pricing and we've actually seen some more aggressiveness in the marketplace on some of those offers not just offering one time.

Devin McGranahan: I think, Brian, the other thing that, you know, we've historically talked about, given the current market dynamics, where new customer pricing, and we've actually seen some more aggressiveness in the marketplace on some of those offers, not just offering one-time, you know, fee-free, but in some cases, by some folks, 2 and 3 transactions free for new customers... the new customer growth causes a degradation in the revenue line. And so anytime we see an acceleration in transactions, we're likely to see, you know, as you saw this time, stability or maybe even if we could accelerate it enough, some degradation in the revenue line relative to the transaction line. And historically, we are and will continue to be looking for ways to cost-effectively accelerate and knowing that revenue will catch up over time.

Fee free but in some cases by some folks to in three transactions free for new customers, the new customer growth causes a degradation in the revenue line and so anytime we see an acceleration in transactions, we're likely to see.

A as you saw this time stability or maybe even we could accelerated enough. Some degradation in the revenue line relative to the transaction line and historically, we are and will continue to be in looks of ways to cost effectively accelerate and knowing that revenue will catch up.

Tom Hadley: Our next question comes to us from Bryan Keane from Citi. Please ask your question.

Overtime.

Got it and then just one follow up on the guidance and fourth quarter. You are talking about an improved slight improvement in retail going into the fourth is that all macro driven or is that something specific you guys are doing for the improvement in retail into the fourth quarter.

Bryan Keane: Got it. And then just one follow-up on the guidance in Q4, you're talking about an improved, slight improvement in retail going into the Q4. Is that all macro-driven, or is that something specific you guys are doing for the improvement in retail into the Q4?

[Analyst]: Hey, guys. How are you doing? Thanks for having me on the call. Just wanted to ask on digital in particular. It improved from 9% to 12% in transaction growth from the second to third quarter, but the revenue growth stayed about the same at 6%. Just trying to figure out the delta change there, why we didn't see a lift in the revenue as well.

It is driven by a few things one is a comment was made a minute ago about lacker, we're starting to lap easier comps as we enter the latter part of the year. We've also seen some good momentum and some customer wins that will help our agent wins.

Matt Cagwin: It really is driven by a few things. One is a comment that was made a minute ago about LACA. We're starting to lap easier comps as we get to the latter part of the year. We've also seen some good momentum and some customer wins that will help, or agent wins.

[Analyst]: Hey, Bryan. Thanks for joining the call. Really, the vast majority of the acceleration we've solved from our partnerships in the Middle East, which are account-to-account payout, which, as you know, come generally with a lower RPT. It's really a combination of that. We've seen a little bit of we would have had a hair of slowdown in revenue and trends about flat, but that didn't help provide a little uplift on both sides.

The other thing I would add Brian we talked about this I think in the.

Devin McGranahan: The other thing I would add, Brian, and we talked about this, I think, in Q2. We've asked one of our leaders, who leads our European region, to spend some material time with us here in the US, implementing much of the model that's been successful in terms of our go-to-market, particularly around independent agents, the strategic pricing model that we employed there, and a bit more rigor around managing that independent agent network. We're starting to see some of the fruits of that as well, and we are excited about the ability to integrate Intermex and accelerate that retail program at a much faster rate than we have been able to over the last year, year and a half.

Second quarter, New we've asked one of our leaders.

<unk>, who leads our European region to spend some material time with us here in the U S. Implementing much of the model. That's been successful in terms of our go to market, particularly around independent agents the strategic pricing model that we employed there and a bit more rigor around managing that independent agent network. We're starting.

Devin McGranahan: I think, Bryan, the other thing that we've historically talked about, given the current market dynamics where new customer pricing and we've actually seen some more aggressiveness in the marketplace on some of those offers, not just offering one-time fee-free, but in some cases by some folks two and three transactions free for new customers. The new customer growth causes a degradation in the revenue line. Anytime we see an acceleration in transactions, we're likely to see, as you saw this time, stability or maybe even if we could accelerate it enough, some degradation in the revenue line relative to the transaction line. Historically, we are and will continue to be in looks of ways to cost-effectively accelerate and knowing that revenue will catch up over time.

To see some of the fruits of that as well and we are excited about the ability to integrate intermix and accelerate that retail program at a much faster rate than we have been able to over the last year year and a half.

Okay. Thanks, so much.

We're going to have taken the call from our the next question from Darrin Peller from Wolfe Research Darrin go ahead and ask your question.

Bryan Keane: Okay, thanks so much.

Operator: We're gonna take the call from, or the next question from, Darren Peller from Wolfe Research. Darren, go ahead and ask your question.

Is that better now guys my better.

Darrin Peller: Yeah. Is that better now, guys?

Okay.

Matt Cagwin: Much better.

Just where do you see overall digital penetration going long term I mean, the companies basically near global penetration pretty eight percentage correct.

Darrin Peller: Okay, just where do you see overall digital penetration going long term? I mean, the company is basically near global penetration at 38% of transactions quarter. Does that continue to move higher? And just talk a little bit more about how that impacts the take rate. And then a quick follow-up would just be kind of, just when I look at the principal per transaction, up 6%, is that a trend around people that are sending more now but less often, just maybe associated with migration policies in the US or something more structural?

Or does that continue to move higher to talk a little bit more about how that impacts the take rate.

Then a quick follow up would just be just when I look at the principal per transaction up 6%.

Is that a trend around with people that are sending more now, but less often just maybe associated with migration policies in the U S or something more structural.

[Analyst]: Got it. Just one follow-up on the guidance in the fourth quarter. You're talking about a slight improvement in retail going into the fourth. Is that all macro-driven, or is that something specific you guys are doing for the improvement in retail into the fourth quarter?

Question, Darrin and so I think there are two or three things I think we would highlight wide.

Devin McGranahan: Yeah, it's a great question, Darren. So I think there are two or three things I think we would highlight. One, you know, we believe and aspire to a reasonably stable retail business around the world, which, you know, will be somewhere between minus 2 and plus 1. Over time, as we get our operating model in places, we believe the retail value proposition does have merit, and there are many migrants, particularly new to country, that see value in that. We do expect digital to continue to grow at double-digit rates into the, you know, certainly intermediate, if not indefinite future, which we will see over time, the ability of that digital become a larger and larger piece of our business with the stability in retail.

[Analyst]: Really, it's driven by a few things. One is a comment was made a minute ago about LATA. We're starting to lap easier comps as we get to the latter part of the year. We've also seen some good momentum and some customer wins that'll help or agent wins.

We believe in aspire to a reasonably.

Stable.

Our retail business around the world, which will be somewhere between minus two and plus one.

Devin McGranahan: The other thing I would add, Bryan, is we talked about this, I think, in the second quarter. We've asked one of our leaders who leads our European region to spend some material time with us here in the U.S. implementing much of the model that's been successful in terms of our go-to-market, particularly around independent agents, the strategic pricing model that we employed there, and a bit more rigor around managing that independent agent network. We're starting to see some of the fruits of that as well. We are excited about the ability to integrate Intermex and accelerate that retail program at a much faster rate than we have been able to over the last year, year and a half.

Over time as we get our operating model in places, we believe the retail value a value proposition.

Does have merit and there are many migrants, particularly new to country that see value in that we do expect digital to continue to grow at double digit rates.

The.

Certainly intermediate if not indefinite future, which.

Which will see over time, the ability of that digital become a larger and larger piece of our business with this stability in retail.

You also know at least for Western Union. There are a lot of places in the World U S. India is one of them. The U S to Guatemala is another one where our digital penetration still has plenty of opportunity to grow relative to both the size of the market and our current market share. So we could even see some acceleration in that low double digit growth that we've been.

Devin McGranahan: We also know, at least for Western Union, there are a lot of places in the world, US to India is one of them, US to Guatemala is another one, where our digital penetration still has plenty of opportunity to grow relative to both the size of the market and our current market share. So we could even see some acceleration in that low double-digit growth that we've been seeing for the last 8, 10 quarters, as we focus on specific corridors going forward.

[Analyst]: Okay, thanks so much.

Tom Hadley: We're going to take the next question from Darrin Peller from Wolfe Research. Darrin, go ahead and ask your question.

<unk> for the last 810 quarters.

[Analyst]: Is that better now, guys?

Devin McGranahan: Much better.

As we focus on specific corridor is going forward.

[Analyst]: Okay. Thanks. Just where do you see overall digital penetration going long term? I mean, the company's basically near global penetration at 38% of transactions this quarter. Does that continue to move higher? Please talk a little bit more about how that impacts the take rate. A quick follow-up would be just when I look at the principal per transaction up 6%, is that a trend around people that are sending more now but less often, maybe associated with migration policies in the U.S. or something more structural?

Alright, Thanks, Kevin Matt just a very quick follow up would just be understanding where euro change zero change entirely in consumer services I'm, just trying to get a sense of organic growth segments.

Darrin Peller: All right. Thanks, Devin. Matt, just my very quick follow-up, with just the understanding where Eurochange-- Is Eurochange entirely in consumer services? I'm just trying to get a sense of organic growth segments.

Darrin Peller: All right. Thanks, Devin. Matt, just my very quick follow-up, with just the understanding where Eurochange, Is Eurochange entirely in consumer services? I'm just trying to get a sense of organic growth segments.

So no it's not so we actually use the business for both CMT, but also see us.

Matt Cagwin: So no, it's not. So we actually use the business for both, CMT, but also CS. They were an agent of ours before we acquired them, so if we're doing any remittance transactions, we go to our CMT line, and then the rest CS. But the takeaway is, we're using that footprint for travel money, we're using for prepaid cards, we're using it for remittances, and we split it up based on the type of product.

They werent agent of ours before we acquire them so for us doing any remittance transactions would go to.

Our CMT line and in the rest of the us but the takeaway is we are using that footprint for.

Devin McGranahan: Yeah, it's a great question, Darrin. I think there are two or three things I think we would highlight. One, we believe and aspire to a reasonably stable retail business around the world, which will be somewhere between -2% and +1% over time as we get our operating model in place. We believe the retail value proposition does have merit, and there are many migrants, particularly new to country, that see value in that. We do expect digital to continue to grow at double-digit rates into the, certainly intermediate, if not indefinite, future, which we will see over time, the ability of that digital to become a larger and larger piece of our business with the stability in retail. We also know, at least for Western Union, there are a lot of places in the world, U.S. to India is one of them, U.S.

Money train travel money, we're using for prepaid cards were using it for remittances and we split it up based on the type of product.

Okay. Thank you guys.

Our next question comes to Us from James Faucette from Morgan Stanley. Please ask your question.

Darrin Peller: Okay. Thank you, guys.

Operator: Our next question comes to us from James Faucette, from Morgan Stanley. Please ask your question.

Thank you very much.

Wanted to ask quickly about dynamic pricing in Spain.

Bryan Keane: Thank you very much. Wanted to ask quickly about dynamic pricing in Spain. It seems like you've seen some good results there, and just curious how quickly you may be able to roll out to other markets and maybe start to garner some of the same benefits.

James Faucette: Thank you very much. Wanted to ask quickly about dynamic pricing in Spain. It seems like you've seen some good results there, and just curious how quickly you may be able to roll out to other markets and maybe start to garner some of the same benefits.

It seems like you had seen some good results there.

Curious how quickly you may be able to rollout to other markets and.

And maybe start to garner some of the same benefits.

Thanks, James Great question.

<unk> rolled out dynamic pricing, our strategic pricing as we call it probably in about half to two thirds of our European market.

Devin McGranahan: Thanks, James. Great question. We have rolled out dynamic pricing or strategic pricing, as we call it, probably in about half to two-thirds of our European market. We asked the leader of our European market to come here to the US to help us, and we are in 3 metro markets at some scale now in the US, with the anticipation that over the course of 2026 and the integration with Intermex, who has a very similar model, that we'll be able to be kind of across the US by the end of 2026. It has less applicability in other parts of the world, like the Middle East, which we have a lot of large master agents, where they have a lot more control over pricing, or frankly, in Asia, which has gone significantly more digital than either the US or Europe is.

We asked the leader of our European market to come here to the U S to help us and we are in three metro markets at some scale now in the U S with the anticipation that over the course of 2006 and the integration with Intermix, who has a very similar model that we'll be able to be kind of across the U S.

Devin McGranahan: to Guatemala is another one, where our digital penetration still has plenty of opportunity to grow relative to both the size of the market and our current market share. We could even see some acceleration in that low double-digit growth that we've been seeing for the last eight, ten quarters as we focus on specific corridors going forward.

By the end of 2026, it has less applicability in other parts of the world like the Middle East, which we have a lot of large master agents, where they have a lot more control over pricing or frankly in Asia, which has gone significantly more digital than either the U S or Europe is.

[Analyst]: All right. Thanks, Devin. Matt, just my very quick follow-up with just the understanding where Eurochange, is Eurochange entirely in consumer services? We're just trying to get a sense of organic growth of the segments. No, it's not. We actually use the business for both CMT, but also CS. They were an agent of ours before we acquired them. If we're doing any remittance transactions, it would go to our CMT line and then the rest of CS. The takeaway is we're using that footprint for travel money, we're using it for prepaid cards, we're using it for remittances, and we split it up based on the type of product.

Got it that's really helpful and then I.

Bryan Keane: Got it. That's, that's really helpful. And then, I think, Matt, you touched on this a little bit, but I may have missed it, is that you guys have done a really good job in terms of your cost efficiencies, programs, et cetera. How should we think about, like, future programs or, or where there may be incremental opportunities on that side? Thanks.

James Faucette: Got it. That's, that's really helpful. And then, I think, Matt, you touched on this a little bit, but I may have missed it, is that you guys have done a really good job in terms of your cost efficiencies, programs, et cetera. How should we think about, like, future programs or, or where there may be incremental opportunities on that side? Thanks.

I think Matt you touched on this a little bit but I may have missed it is that you guys have done a really good job in terms of your cost efficiencies programs et cetera.

How should we think about like future programs or where there may be incremental opportunities on that side. Thanks.

Yes. Thanks for the question I'll actually spend about five minutes of that in two weeks and the day talking about you are next step, but I'll leave it leave a teaser we still think there's meaningful opportunity ahead and look forward to sharing that with you on the six.

Matt Cagwin: Yeah, thanks for the question. I'll actually spend about five minutes of that in two weeks from today, talking about your, our next step, but I'll leave it - leave a teaser. We still think there's meaningful opportunity ahead, and look forward to sharing that with you on the sixth.

Tom Hadley: Okay. Thank you, guys. Our next question comes to us from James Fossett from Morgan Stanley. Please ask your question.

Stay tuned later add James you know one of the things. The first part of our program really was what I'll call, the blocking and tackling and Matt and the team the broader management team did a great job of creating a normal operational efficiencies in terms of managing our real estate footprint, reducing customer served.

[Analyst]: Thank you very much. I wanted to ask quickly about dynamic pricing in Spain. It seems like you had seen some good results there, and just curious how quickly you may be able to roll out to other markets and maybe start to garner some of the same benefits.

Bryan Keane: Stay tuned. Like it.

James Faucette: Stay tuned. Like it.

Devin McGranahan: James, you know, one of the things, the first part of our program really was what I'll call the blocking and tackling, and Matt and the team, the broader management team, did a great job of, you know, creating the normal operational efficiencies in terms of managing our real estate footprint, reducing, you know, customer service calls, managing vendors. You know, we're now starting to really see the benefits as we implement new technology. We have some adoption of AI into both our development functions, our customer service functions, where we could start to see some shifting of the business model, which will, again, as Matt said, yield results for a reasonably long period of time relative to the first chapter of this, which was really just blocking and tackling.

This calls managing vendors, we're now starting to really see the benefits as we implement new technology, we have some adoption of AI into both our development functions, our customer service functions, where we could start to see some shifting of the business model, which will again as Matt said yield results for a reasonably.

Devin McGranahan: Thanks, James. Great question. We have rolled out dynamic pricing, or strategic pricing as we call it, probably in about half to two-thirds of our European market. We asked the leader of our European market to come here to the U.S. to help us, and we are in three metro markets at some scale now in the U.S. with the anticipation that over the course of 2026 and the integration with Intermex, who has a very similar model, that we'll be able to be kind of across the U.S. by the end of 2026. It has less applicability in other parts of the world, like the Middle East, which has a lot of large master agents where they have a lot more control over pricing, or frankly in Asia, which has gone significantly more digital than either the U.S. or Europe is.

Long period of time relative to the first chapter of this which was really just blocking and tackling and I got to remove that page in my presentation.

Matt Cagwin: Now, I got to remove that page from my presentation, so I got more work on Investor Day.

More work on Investor day.

Yes.

Our next question comes to Us from Tim Thiago from UBS.

Operator: Our next question comes to us from Tim Chiodo from UBS. Please ask your question.

Please ask your question.

Great. Thank you for taking the question.

On the Intermix 10000 locations. They were always viewed to be is very strategically well placed but one of the advantage is was the speed the UI UX and it was generally.

Timothy Chiodo: Great. Thank you for taking the question. On the Intermex 10,000 locations, they were always viewed to be as very strategically well-placed, but one of the advantages was the speed, the UI, the UX, and it was generally talked about as being better for the agent, and that was something that was attractive to them. Is that an advantage that somehow gets ported over to Western Union, or does that system get retired and sunset, and those locations move on to the Western Union platform? How will that all play out?

[Analyst]: Got it. That's really helpful. I think, Matt, you touched on this a little bit, but I may have missed it. You guys have done a really good job in terms of your cost efficiencies, programs, etc. How should we think about future programs or where there may be incremental opportunities on that side? Thanks. Yeah, thanks for the question. I'll actually spend about five minutes of that in two weeks from today talking about our next step, but I'll leave a teaser. We still think there's meaningful opportunity ahead and look forward to sharing that with you on the 6th.

Talked about as being better for the agent and that was something that was attractive to them is that an advantage that somehow gets ported over to western union or does that system get retired and sunset in those locations move on to the Western Union platform, how will that all play out it is our intention to maintain both the intermix brand.

Devin McGranahan: It is our intention to maintain both the Intermex brand, the Intermex locations, and the Intermex go-to-market model. We also are now, as we begin integration planning, looking at ways in which we can take that Intermex model and bring it into our Vigo independent agents and our Western Union-branded independent agents here in the US. So we have aspirations and belief that we think we can learn a lot from what they do, and we will preserve everything that they do, the way they do it today.

And the <unk> locations and the <unk> go to market model. We also are now as we begin integration planning looking at ways in which we can take that <unk> model and bring it into our Vigo independent agents and our western Union branded into page. It independent agents here in the U S. So.

Tom Hadley: Stay tuned. Like it.

Devin McGranahan: One of the things, the first part of our program really was what I'll call the blocking and tackling, and Matt and the team, the broader management team, did a great job of creating the normal operational efficiencies in terms of managing our real estate footprint, reducing customer service calls, managing vendors. We're now starting to really see the benefits as we implement new technology. We have some adoption of AI into both our development functions and our customer service functions, where we could start to see some shifting of the business model, which will, again, as Matt said, yield results for a reasonably long period of time relative to the first chapter of this, which was really just blocking and tackling.

We have aspirations that belief that we think we can learn a lot from what they do and we will preserve everything that they do the way they do it today.

Our next question comes to Us from <unk> Kumar from Oppenheimer. Please ask your question.

Operator: Our next question comes to us from Rayna Kumar from Oppenheimer. Please ask your question.

Great. Thanks for taking my question.

Rayna Kumar: Great. Thanks for taking my question. I think there's an echo here, so let me know if you can hear me. Just on North America, it looks like trends have gotten a little bit worse versus Q2. Do you expect it to improve from here? Like, have we reached the bottom in North America?

I think there is an echo here.

Germany.

North America.

Trends have gone and all that.

[Analyst]: Now I got to remove that page from my presentation, so I got more work on Investor Day.

Sure.

Versus the second quarter.

Epithelium.

The bottom in North America.

Tom Hadley: Our next question comes to us from Timothy Chiodo from UBS. Please ask your question.

Yes, so the quarter was as I described on the call what I would say is lumpy.

Devin McGranahan: Yeah, so the quarter was, as I described in the call, what I would say is lumpy. You know, we had a little bit better July, then August was, you know, pretty, pretty tough, and then we started to see some trends in the back half of September and a little bit early here in October. But, you know, the linear improvement is certainly not there, but the directional improvement would seem to indicate that we may be hitting some stability relative to what we saw in either June or August.

You know we had.

Matt Cagwin: Great. Thank you for taking the question. On the Intermex 10,000 locations, they were always viewed to be as very strategically well placed, but one of the advantages was the speed, the UI, the UX, and it was generally talked about as being better for the agent, and that was something that was attractive to them. Is that an advantage that somehow gets ported over to Western Union, or does that system get retired and sunset and those locations move on to the Western Union platform? How will that all play out?

A little bit better July then August was.

Pretty pretty tough and then we started to see some trends in the back half of September and a little bit early here in October but.

The linear improvement is certainly not there, but the directional improvement would seem to indicate that we may be hitting some stability relative to what we saw in either June or August.

Devin McGranahan: It is our intention to maintain both the Intermex brand, the Intermex locations, and the Intermex go-to-market model. We also are now, as we begin integration planning, looking at ways in which we can take that Intermex model and bring it into our Vigo independent agents and our Western Union branded independent agents here in the U.S. We have aspirations and belief that we think we can learn a lot from what they do, and we will preserve everything that they do the way they do it today.

Okay.

Our next question comes to Us from Nate Svensson from Deutsche Bank. Please ask your question.

Operator: Our next question comes to us from Nate Svensson from Deutsche Bank. Please ask your question.

Hey, Thanks for the question I wanted to ask on payout to account, so I think last quarter or in the Q&A you mentioned a slowdown in growth there, but it sounds like <unk> principal was up 40% and it now represents 50% of the digital business. So maybe it's the middle East partnerships, but I was hoping you could unpack some of the drivers in the improvement there and maybe how.

Nate Svensson: Hey, thanks for the question. I wanted to ask on payout to account. So I think last quarter in the Q&A, you mentioned a slowdown in growth there, but it sounds like in Q3, principal was up 40%, and it now represents 50% of the digital business. So maybe it's the Middle East partnerships, but was hoping you could unpack some of the drivers and the improvement there, and maybe how sustainable you think the trajectory in payout to account could be.

<unk> do you think that trajectory in pattern to account could be in Nader.

Remember, making that comment last quarter, we've seen very consistent 30% plus growth rates for going on two or three years now.

Matt Cagwin: Hey, Nate, I don't remember making that comment last quarter. We've seen very consistent 30%+ growth rates for going on two, three years now, for our account payout. So we see it everywhere. We're seeing strong growth in our retail business to be digitally funded. We've seen growth there with our rolling out more digital acceptance or card acceptance in Europe and North America. We've seen growth in account payout from retail. We've seen great account payout from our digital business, as well as the new partnerships in the Middle East. So don't remember the comment from last quarter, but it's, there was not a dip last quarter. There has been a modest acceleration this quarter, but I would argue it's modest, and the new partnerships have driven that because they're a largely account payout or digitally funded relationship.

Tom Hadley: Our next question comes to us from Reina Kumar from Oppenheimer. Please ask your question.

For our account payout so we see it everywhere, we're seeing strong growth in our retail business to be digitally funded we've seen growth there with our rolling out more digital acceptance or card acceptance in Europe, and North America, we've seen growth in account payout from retail we've seen Greg account payout.

[Analyst]: Great. Thanks for taking my question. I think there's an echo here, so let me know if you can't hear me. Just on North America, it looks like trends have gotten a little bit worse versus the second quarter. Do you expect it to improve from here? Like, have we reached the bottom in North America?

Our digital business as well as the new partnerships in the middle East So.

Devin McGranahan: Yeah, so the quarter was, as I described in the call, what I would say is lumpy. We had a little bit better July, then August was pretty, pretty tough. We started to see some trends in the back half of September and a little bit early here in October. The linear improvement is certainly not there, but the directional improvement would seem to indicate that we may be hitting some stability relative to what we saw in either June or August.

Don't remember that comment from last quarter, but is there was not a dip last quarter. There has been a modest acceleration this quarter, but I would argue it's modest and new partnerships have driven that because they're a largely account payout or digitally funded relationship.

Nate I think we believe that this is a <unk>.

Devin McGranahan: Nate, I think we believe that this is a, you know, secular change in customer behavior. And again, whether it's originated in a retail transaction or a, digital transaction, the received customers are rapidly entering, the banking or digital wallet, infrastructure in their countries. And we've seen that, whether that's, you know, in the Philippines or Malaysia, now even to a certain extent in Mexico, where the receiver preference is to receive the money in a more digital form. We think that has implications over time, for us in terms of our payout network and our ability to create efficiency in streamlining some of our retail payout network. And the shift, also in payout-...

Secular change in customer behavior, and again, whether it's originated in a retail transaction or a.

Digital transaction the received customers are rapidly entering.

The banking or digital wallet infrastructure in their countries and we've seen that whether thats in the Philippines, or Malaysia, now even to a certain extent in Mexico, where the receiver preferences to receive the money in a more digital form we think that has implications over time.

Tom Hadley: Our next question comes to us from Nate Svensson from Deutsche Bank. Please ask your question.

[Analyst]: Thanks for the question. I wanted to ask on payout-to-account. I think last quarter in the Q&A, you mentioned a slowdown in growth there, but it sounds like in Q3, principal was up 40%, and it now represents 50% of the digital business. Maybe it's the Middle East partnerships, but was hoping you could unpack some of the drivers and the improvement there, and maybe how sustainable you think the trajectory in payout-to-account could be.

For us in terms of our payout network and our ability to create efficiency and streamlining some of our retail payout network.

This shift also in payout costs will become margin beneficial to us as payout to account has a different economic profile than path to cash in many regions around the world.

Devin McGranahan: Costs will become margin beneficial to us as payout to account has a different economic profile than payout to cash in many regions around the world.

Tom Hadley: Hey, Nate. I don't remember making that comment last quarter. We've seen very consistent 30%+ growth rates for going on two, three years now for our account payout. We see it everywhere. We're seeing strong growth in our retail business to be digitally funded. We've seen growth there with our rolling out more digital card acceptance in Europe and North America. We've seen growth in account payout from retail. We've seen great account payout from our digital business, as well as the new partnerships in the Middle East. I don't remember the comment from last quarter, but there was not a dip last quarter. There has been a modest acceleration this quarter. I would argue it's modest, and the new partnerships have driven that because they're a largely account payout or digitally funded relationship.

Our next question comes to Us from Chris Kennedy from William Blair. Please ask your question.

Operator: Our next question comes to us from Chris Kennedy from William Blair. Please ask your question.

Good afternoon, thanks for taking the question.

Cristopher Kennedy: Good afternoon. Thanks for taking the question. Can you just talk a little bit more about the 500,000 digital wallet users? What kind of engagement are you seeing or retention trends or anything you could talk about that? Thank you.

Christopher Kennedy: Good afternoon. Thanks for taking the question. Can you just talk a little bit more about the 500,000 digital wallet users? What kind of engagement are you seeing or retention trends or anything you could talk about that? Thank you.

Can you just talk a little bit more about that.

100000 digital wallet users what kind of engagement are you see our retention trends or anything you could talk about that thank you.

Hey, Chris we are on a journey right and so we launched our first digital wallet.

Devin McGranahan: Hey, Chris, we are on a journey, right? And so we launched our first digital wallet in Q3 2022, and over the course of the last 3 years, we've iterated both the platform, the value proposition, and to a certain extent, the nature of the customers that we're acquiring. The customers that we're currently acquiring tend to be much more in the receive markets, and as I highlighted in the prepared comments in Argentina, Brazil, also in Romania, and to a certain extent, even here in the US, people putting money into their wallets from inbound remittances and then using that either for everyday living expenses through our cards or through, like in Brazil, the Pix system is a growing trend for us.

In the third quarter of 2022 and over the course of the last three years, we reiterated both the platform the value proposition.

And to a certain extent the nature of the customers that we're acquiring the customers that we're currently acquiring tend to be much more in the receive markets and as I highlighted in the press.

Devin McGranahan: Nate, I think we believe that this is a secular change in customer behavior. Whether it's originated in a retail transaction or a digital transaction, the received customers are rapidly entering the banking or digital wallet infrastructure in their countries. We've seen that, whether that's in the Philippines or Malaysia, now even to a certain extent in Mexico, where the receiver preference is to receive the money in a more digital form. We think that has implications over time for us in terms of our payout network and our ability to create efficiency in streamlining some of our retail payout network. The shift also in payout costs will become large and beneficial to us as payout-to-account has a different economic profile than payout-to-cash in many regions around the world.

Prepared comments in Argentina, and Brazil also in Romania, and to a certain extent even here in the U S people, putting money into their wallets from inbound remittances and then using that either for everyday living expenses.

Through our cards or through like in Brazil. The pick system is a growing trend for us and so what I would say is our most engaged customers are those that are in our receive markets and are using the product as an alternative to having received cash in one of our retail locations.

Devin McGranahan: What I would say is, our most engaged customers are those that are in our receive markets and are using the product, as an alternative to having received cash, in one of our retail locations.

Great. Thanks for taking the question.

Cristopher Kennedy: Great. Thanks for taking the question.

Christopher Kennedy: Great. Thanks for taking the question.

Our next question comes to Us from Jamie Friedman from Susquehanna. Please ask your question.

Operator: Our next question comes to us from Jamie Friedman from Susquehanna. Please ask your question.

Hi, I wanted to ask about.

Jamie Friedman: Hi. I wanted to ask about the ability to transfer some of the best practices you've had in Europe. The European quarter's really doing well for you. I think you alluded, Devin, to some similarities or differences between there and here, like you talked about the independent agent network. But, to what extent are those-- are there, like, synergies between those markets, and how can you transfer the success that you're having there, here? Thank you.

The ability to transfer some of the best practices, you've had in Europe, the European orders really doing well for you I think you alluded to.

Tom Hadley: Our next question comes to us from Cristopher Kennedy from William Blair. Please ask your question.

[Analyst]: Good afternoon. Thanks for taking the question. Can you just talk a little bit more about the 500,000 digital wallet users? What kind of engagement are you seeing or retention trends or anything you could talk about that? Thank you.

Some similarities or differences between there and here like you talked about the independent agent network, but to what extent are those are there is synergies between those markets and how can you transfer the success that you're having there here. Thank you.

Devin McGranahan: Yeah, Chris, we are on a journey, right? We launched our first digital wallet in the third quarter of 2022. Over the course of the last three years, we've iterated both the platform, the value proposition, and to a certain extent, the nature of the customers that we're acquiring. The customers that we're currently acquiring tend to be much more in the receive markets. As I highlighted in the prepared comments, in Argentina, Brazil, also in Romania, and to a certain extent even here in the U.S., people are putting money into their wallets from inbound remittances and then using that either for everyday living expenses through our cards or through, like in Brazil, the PIX system is a growing trend for us.

Jamie Great question. Thank you, we'll actually spend a bunch of time at our Investor day talking about this.

Devin McGranahan: Jamie, great question. Thank you. We'll actually spend a bunch of time at our Investor Day talking about this. But recall our European go-to-market model really has three components to it. One is the nature and shape of the distribution, two is our go-to-market strategy in terms of how we structure our sales teams and our support model for the agents. And then third, which we've talked about on this call already, really is the strategic pricing capability, where we manage and monitor on a daily basis, market prices in specific locations in order to present the best possible option, while maintaining our discipline on margins. And so those three components, in certain ways, you know, differ in the US.

Recall, our European go to market model really has three components to it one is the nature and shape of the distribution too is our go to market strategy in terms of how we structure our sales teams and our support model for the agents and then third which we've talked about it in this call.

It really is the strategic pricing capability, where we manage and monitor on a daily basis market prices in specific locations in order to present, the best possible option.

While maintaining our discipline on margins and so those three components in certain ways.

Devin McGranahan: What I would say is our most engaged customers are those that are in our receive markets and are using the product as an alternative to having received cash in one of our retail locations.

Different in the U S. So part of the rationale for the Intermix acquisition was historically in the U S. We had a much larger base of the large strategic accounts the krogers the publics the Wal Marts and as Matt mentioned in the commentary we've gone through a big renewal cycle with those we.

Devin McGranahan: So part of the rationale for the Intermex acquisition was historically in the US, we had a much larger base of the large strategic accounts, the Kroger, the Publix, the Walmart, and as Matt mentioned in the commentary, we've gone through a big renewal cycle with those. We think they're important, but you have less ability to influence what happens in those than you do in the independent agent channel. So adding Intermex into that mix significantly broadens the middle of that pyramid of distribution with a very strong independent agent, non-exclusive independent agent channel.

[Analyst]: Great, thanks for taking the question.

Tom Hadley: Our next question comes to us from Jamie Friedman from Susquehanna. Please ask your question.

Think they're important but you have less ability to influence what happens in those than you do in the independent agent channel, so, adding <unk> into that mix significantly broadens the middle of that pyramid of distribution with a very strong independent agent Nonexclusive independent agent channel. The other part of the pyramid in Europe that we have.

[Analyst]: Hi. I wanted to ask about the ability to transfer some of the best practices you've had in Europe. The European quarter's really doing well for you. I think you alluded, Devin, to some similarities or differences between there and here, like you talked about the independent agent network. To what extent are there synergies between those markets, and how can you transfer the success that you're having there here? Thank you.

Matt will know this but I think we're up to three or 400 company owned stores across the European footprint and the company owned stores are six to eight times more productive than your average.

Devin McGranahan: The other part of the pyramid in Europe that we have is, Matt will know this, but I think we're up to 300 or 400 company-owned stores across the European footprint, and the company-owned stores are, you know, 6 to 8 times more productive than your average agent, and therefore, you know, they play an important but small role in the strategy. Here in the US, we had 3. When we get done with the Intermex acquisition and some other work we're doing, you know, we'll end up close to a couple of hundred. So that change is kind of in process to get the distribution right. The strategic pricing, we're in the process of putting in place. I said we're now kind of in 3 metro markets with an aspiration to roll that out over the course of the next 12 months.

And therefore, they play an important but small role in this strategy here in the U S. We had three when we get done with the <unk> acquisition and some other work we're doing.

Devin McGranahan: Jamie, great question. Thank you. We'll actually spend a bunch of time at our Investor Day talking about this. Recall our European go-to-market model really has three components to it. One is the nature and shape of the distribution. Two is our go-to-market strategy in terms of how we structure our sales teams and our support model for the agents. Third, which we've talked about on this call already, really is the strategic pricing capability where we manage and monitor on a daily basis market prices in specific locations in order to present the best possible option while maintaining our discipline on margins. Those three components in certain ways differ in the U.S. Part of the rationale for the Intermex acquisition was historically in the U.S., we had a much larger base of the large strategic accounts: the Krogers, the Publix, the Walmarts.

We'll end up close to a couple of hundred so that changes kind of in process to get the distribution right. The strategic pricing. We're in the process of putting in place I said, we're now kind of in three metro markets with an aspiration to roll that out over the course of the next 12 months and then in our go to market model as we do the integration with <unk>.

Devin McGranahan: Then on our go-to-market model, as we do the integration with Intermex, we will restructure our sales force and our agent support model to align much more closely with our European approach and the historic Intermex approach here in the US. So again, I see that as, you know, in the second half of 2026, getting fully implemented.

<unk>, we will restructure our sales force and our agent support model.

To align much more closely with our European approach and the historic Intermix approach here in the U S. So again I see that as you know.

In the second half of 'twenty six getting fully implemented.

Yeah.

Our next question comes to Us from Kartik Mehta from Northcoast. Please ask your question.

Operator: Our next question comes to us from Kartik Mehta from Northcoast Research. Please ask your question.

Operator: Our next question comes to us from Chris Kennedy from William Blair. Please ask your question.

And Kevin just to understand North America, a little bit better I think you said August there was a lot worse than maybe July 2nd half of September.

Devin McGranahan: Hey, Devin, just to understand North America a little bit better, I think you said August was a lot worse than, maybe July or the, second half of September. Was that a result of pricing competition or just the market was really slow? From our view, it was a market view. We, you know, we didn't see any different, what I would call, competitor behavior, but we certainly did see different consumer behavior. And so, again, we don't have complete transparency, but, the Bank of Mexico data would also support some of that as well, where, you know, June was probably the worst, July improved moderately, significantly, and then August, reverted back to a double-digit decline. So, I can't explain it. I can just tell you what we observed.

Christopher Kennedy: Hey, Devin, just to understand North America a little bit better, I think you said August was a lot worse than, maybe July or the, second half of September. Was that a result of pricing competition or just the market was really slow? From our view, it was a market view. We, you know, we didn't see any different, what I would call, competitor behavior, but we certainly did see different consumer behavior. And so, again, we don't have complete transparency, but, the Bank of Mexico data would also support some of that as well, where, you know, June was probably the worst, July improved moderately, significantly, and then August, reverted back to a double-digit decline. So, I can't explain it. I can just tell you what we observed.

Devin McGranahan: As Matt mentioned in the commentary, we've gone through a big renewal cycle with those. We think they're important, but you have less ability to influence what happens in those than you do in the independent agent channel. Adding Intermex into that mix significantly broadens the middle of that pyramid of distribution with a very strong independent agent, non-exclusive independent agent channel. The other part of the pyramid in Europe that we have is Matt'll know this, but I think we're up to 300 or 400 company-owned stores across the European footprint. The company-owned stores are six to eight times more productive than your average agent, and therefore, they play an important but small role in the strategy. Here in the U.S., we had three. When we get done with the Intermex acquisition and some other work we're doing, we'll end up close to a couple hundred.

Was that a result of pricing competition or just the market was really slow.

From our view as a market view.

We didn't see any different what I would call competitor behavior, but we certainly did see different consumer behavior and so.

Again, we don't have complete transparency, but the bank to Mexico data would also support some of that as well where.

June was probably the worst July improved moderately significantly and then August reverted back to a double digit decline so.

I can't explain it I can just tell you what we observed and just to build on Devins point. There just give you some external data.

Matt Cagwin: ... And just to build on Devin's point there, just give you some external data. Bank of Mexico had a low point for the year of down 18%. July got down 13, down 17, then down 12, and improved from there. So it's bounced around as time has passed on a transactional basis.

Bank of Mexico had a low point for the year of down 18% July got down 13 down 17, and down 12% improved from there. So it's bounced around as time has passed.

Devin McGranahan: That change is kind of in process to get the distribution right. The strategic pricing, we're in the process of putting in place. I said we're now kind of in three metro markets with an aspiration to roll that out over the course of the next 12 months. On our go-to-market model, as we do the integration with Intermex, we will restructure our sales force and our agent support model to align much more closely with our European approach and the historic Intermex approach here in the U.S. I see that as, in the second half of 2026 getting fully implemented.

On a transaction basis.

Thank you.

Devin McGranahan: Thank you.

Christopher Kennedy: Thank you.

Our next question comes to Us from Zachary gun from Ft Partners. Please ask your question.

Operator: Our next question comes to us from Zachary Gunn from FT Partners. Please ask your question.

Hey, there thanks for taking my question.

Zachary Gunn: Hey there. Thanks for taking my question. I wanted to ask on consumer services, and apologies if I missed this, but what was the contribution from Eurochange this quarter? I know you stated consumer services still grew double digits organically, and just with that in mind, you know, I appreciate the comments on Q4 and some of the headwinds in consumer services, but how do we think about the sustainability of that growth kind of going forward?

I wanted to ask on consumer services and apologies if.

If I missed this but what was the contribution from euro changes.

Tom Hadley: Our next question comes to us from Kartik Mehta from North Coast. Please ask your question.

I know you stated consumer services still grew double digit in Italy, and just with that in mind I. Appreciate the comments on <unk> and some of the headwinds more services, but how do we think about the sustainability.

[Analyst]: Hey, Devin, just to understand North America a little bit better, I think you said August was a lot worse than maybe July or the second half of September. Was that a result of pricing competition, or just the market was really slow?

That growth kind of going forward.

Pleasure to meet you.

<unk>.

Matt Cagwin: Hey, Zach, pleasure to meet you. I said in the prepared remarks that the Eurochange acquisition contributed a little, roughly nearly half of the overall CS growth this quarter. So that's the simple answer to your first part of your question. And then to your second part about how sustainable is Consumer Services on the long run, we've now had three, four years of 10%+ growth in that business. How we've gotten there has varied from year to year, but we've got lots of new products that we've launched that are starting to scale. We've got some that are doing very well already, and there's new ideas we're working on. So we think there's long runway to continue to grow Consumer Services for the foreseeable future, and we'll do a really good long, deep dive on that in two weeks.

I said on the prepared remarks, the euro change acquisition.

Tribute roughly nearly half of the overall <unk> growth this quarter.

Devin McGranahan: From our view, it was a market view. We didn't see any different, what I would call, competitor behavior, but we certainly did see different consumer behavior. We don't have complete transparency, but the Banco de Mexico data would also support some of that as well, where June was probably the worst, July improved moderately, significantly, and then August reverted back to a double-digit decline. I can't explain it. I can just tell you what we observed.

So that's the simple answer your first part of your question and then to your second part about how sustainable is consumer services on the long run. We've now had three or four years of 10% plus growth in that business. How we've gotten there has varied from year to year, but we've got lots of new products that we've launched that are starting to scale.

We've got some that are doing very well already and there is new ideas. We're working on so we think there's a long runway to continue to grow consumer service for the foreseeable future and we will.

Do a really good long deep dive on that in two weeks.

[Analyst]: To build on Devin's point there, just to give you some external data. Bank of Mexico had a low point for the year of down 18%. July got down 13%, down 17%, then down 12%, and then it improved from there. It has bounced around as time has passed on a transactional basis.

Our final question will come to us from God from Gus Gala from <unk> Crespi, Hardt <unk> company.

Operator: Our final question will come to us from Gus Gala, from Monness, Crespi, Hart & Co. Please ask your question.

Please ask your question.

Hey, guys. Thanks for taking my questions.

Gus Gala: Hey, guys. Thanks for taking my questions. Wanted to ask about the porting over strategy to the US from Europe. As we think about that, I mean, is your fleet in Europe a little bit more focused on smaller retail format versus large retail format than in US? And then just like thinking about how cities are set up in Europe versus the US, what are kind of some of the differences and changes that you're having in terms of trying to approach that in retail?

Wanted to ask about the ordering or our strategy.

Tom Hadley: Thank you. Our next question comes to us from Zachary Gunn from FT Partners. Please ask your question.

As we think about that.

Sure.

Europe, a little bit more focused on smaller regional format.

A lot of retail format.

[Analyst]: Hey there. Thanks for taking my question. I wanted to ask on consumer services, and apologies if I missed this, but what was the contribution from Eurochange this quarter? I know you stated consumer services still grew double-digit organically. With that in mind, I appreciate the comments on Q4 and some of the headwinds in consumer services, but how do we think about the sustainability of that growth going forward? Hey, Zach. Pleasure to meet you. I said on the prepared remarks that the Eurochange acquisition contributed roughly nearly half of the overall consumer services growth this quarter. That's the simple answer to your first part of your question. To your second part about how sustainable is consumer services in the long run, we've now had three, four years of 10% plus growth in that business.

And then just thinking about I'll show. These are set up in Europe versus the U S.

What are kind of some of the differences and changes to your house.

Brian to approach when retail yes.

Hey, guys Great question. So the European model is slightly different in the U S model.

Devin McGranahan: Yeah, Gus, great question. So the European model is slightly different than the US model, but there are analogies. So the European model does have a relatively significant independent agent network, in which Western Union has a pretty strong presence in, which is different in the US, where we've historically participated in the independent agent channel with our Vigo brand and less so with our Western Union brand. But there is a large and significant independent channel in the US. We've just had less presence in it than, say, a RIA or an Intermex, which was part of the opportunity with Intermex. The US does have a large base of what I will call the strategic accounts, for us, the Walgreens, the Krogers, the Walmarts. That is not true in Europe.

But there are analogies so the European model does have.

A relatively significant independent agent network, which western Union as a pretty strong presence in which is different than the U S where we have historically.

Participated in the independent agent channel with our <unk> brand and less so with our Western Union brand, but there is a large and significant independent channel in the U S. We've just had less presence in it than say, a ria or an inner Max which was part of the opportunity with <unk>.

[Analyst]: How we've gotten there has varied from year to year, but we've got lots of new products that we've launched that are starting to scale. We've got some that are doing very well already, and there's new ideas we're working on. We think there's a long runway to continue to grow consumer services for the foreseeable future, and we'll do a really good long deep dive on that in two weeks.

The the U S does have a large base of what I'll call the strategic accounts.

For us the Walgreens the krogers the Walmart that is not true in Europe. The analogy in Europe, though is a fair number of relatively significant postal systems and so like in the U K, we have the U K post or in Spain, we have the Spanish post we work with La Banque postal in France and so.

Devin McGranahan: The analogy in Europe, though, is a fair number of relatively significant postal systems. So like in the UK, we have the UK Post, or in Spain, we have the Spanish Post. We work with La Banque Postale in France. So that big base of what I'll call, you know, relatively lower productivity, but omnipresent distribution is done with postal systems in Europe versus, you know, grocery or convenience retailers here in the US. We see the biggest opportunity really to bring and import some more of that independent agent model, and do it on a, as I said, city-by-city basis, just like in Europe. So we're now implementing it in three major metropolitan areas in the US.

Tom Hadley: Our final question will come to us from Gus Gala from Monness, Crespi, Hardt & Company. Please ask your question.

That big base of what I'll call.

Relatively lower productivity, but omnipresent distribution is done with postal systems in Europe versus grocery or convenience retailers here in the U S. So we see the biggest opportunity really to bring in import some more of that independent agent model.

[Analyst]: Hey, guys. Thanks for taking my questions. Wanted to ask about the porting over strategy to the U.S. from Europe. As we think about that, I mean, is your fleet in Europe a little bit more focused on smaller retail format versus large retail format in the U.S.? Just like thinking about how cities are set up in Europe versus the U.S., what are kind of some of the differences and changes that you're having in terms of trying to approach that in retail?

As I said, we're doing it on a city by city basis, just like in Europe. So we're now implementing it in three major metropolitan areas in the U S. But the reason it's going to take some time as you got to do it across 50 or 60 when in any European country, you do it across three or four and you've covered the majority of it so.

Devin McGranahan: But, you know, the reason it's gonna take some time is you got to do it across 50 or 60. When in any European country, you do it across 3 or 4, and you've covered the majority of it. So we see upside, we see potential. We like the Intermex acquisition as an ability to accelerate it, but we think the model is right, whether it is in Europe or here in the US.

Devin McGranahan: Yeah, guys. Great question. The European model is slightly different than the U.S. model, but there are analogies. The European model does have a relatively significant independent agent network, of which Western Union has a pretty strong presence, which is different in the U.S. where we've historically participated in the independent agent channel with our Vigo brand and less so with our Western Union brand. There is a large and significant independent channel in the U.S. We've just had less presence in it than, say, a RIA or an Intermex, which was part of the opportunity with Intermex. The U.S. does have a large base of what I will call the strategic accounts for us, the Walgreens, the Krogers, the Walmarts. That is not true in Europe. The analogy in Europe, though, is a fair number of relatively significant postal systems. In the U.K., we have the U.K.

We see upside we see potential we liked the intermix acquisition as an ability to accelerate it but we think the model is right whether it is in Europe or here in the U S.

Perfect appreciate it.

Thanks, everybody.

Gus Gala: Perfect. Appreciate all the help.

Devin McGranahan: Thanks, everybody.

Thank you for joining the Western Union third quarter 2025 results Conference call. We hope you have a great day.

Operator: Thank you for joining the Western Union Q3 2025 Results Conference Call. We hope you have a great day.

Okay.

Yes.

Okay.

Yeah.

Sure.

Devin McGranahan: Post, or in Spain, we have the Spanish Post. We work with Le Banque Postal in France. That big base of what I'll call relatively lower productivity but omnipresent distribution is done with postal systems in Europe versus grocery or convenience retailers here in the U.S. We see the biggest opportunity to bring and import some more of that independent agent model and do it on a city-by-city basis, just like in Europe. We're now implementing it in three major metropolitan areas in the U.S. The reason it's going to take some time is you have to do it across 50 or 60, when in any European country, you do it across three or four and you've covered the majority of it. We see upside. We see potential.

Devin McGranahan: We like the Intermex acquisition as an ability to accelerate it, but we think the model is right, whether it is in Europe or here in the U.S.

[Analyst]: Perfect. Appreciate all the color.

Devin McGranahan: Thanks, everybody.

Tom Hadley: Thank you for joining the Western Union Third Quarter 2025 Results Conference Call. We hope you have a great day. Goodbye.

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