Q4 2025 The Western Union Co Earnings Call

February 20, 2026

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.

Thank you.

On today's call, we will discuss the company's fourth quarter and full year 2025, results, 2026 Outlook and then we will take your questions.

The slides that accompany this call and webcast can be found at Western union.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 in our CFO. Matt hegwood.

Today's call is being recorded in our comments. Include forward-looking statements.

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting. This meeting is being recorded.

Please refer to the cautionary language in the earnings release and in Western Union's, filings with the Securities and Exchange Commission.

Operator: Good day, and welcome to the Western Union Q4 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.

Including the 2025 form 10K, which will be filed later today 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.

We have reconciled these items to the most comparable gaap measures in our earnings, release attached to our form AK, as well as on our website Western union.com under the investor relations section.

Speaker #2: Good day and welcome to the Western Union 4th 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.

I will now turn the call over to our chief executive officer Devin mcgranahan.

Good morning and welcome to Western Union's, fourth quarter, 2025 Financial results conference call.

Speaker #2: 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.

It was great to see many of you at our investor day last fall for the launch of our Beyond strategy.

Speaker #3: Thank you. On today's call, we will discuss the company's fourth quarter and full year 2025 results, the 2026 outlook, and then we will take your questions.

Tom Hadley: Thank you. On today's call, we will discuss the company's fourth quarter and full year 2025 results, 2026 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 2025 Form 10-K, which will be filed later today, for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements.

Speaker #3: 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.

We are excited about building a digital first retail, enabled consumer services company that is powered by payments and Innovation. We remain optimistic about the longer term outlook for our business, as we believe our core retail, remittance business will improve as migration patterns normalize and we work to increase both our revenue and share gains in this important Market.

Speaker #3: 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.

Speaker #3: 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 2025 Form 10-K, which will be filed later today, for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements.

We believe that our focus on becoming Market competitive driving productivity, expanding our payments capabilities in growing share within higher growth. Corridors and geographies is the key to delivering on this vision.

I key element of our strategy has been to build everyday financial services that can leverage our Global brand and our extensive payment capabilities.

Speaker #3: During the call, we will discuss some items that do not conform to generally accepted accounting principles. We have reconciled these 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.

Tom Hadley: During the call, we will discuss some items that do not conform to generally accepted accounting principles. We have reconciled these 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.

As these products and services gain critical mass, they will moderate some of the swings we have seen in the core remittance business, as they tend to be less correlated with immigration Trends as witnessed in this quarter, where our consumer services. Business continued to perform, which allowed us to report, a reasonable quarter against a difficult macro backdrop, demonstrating, the benefits of our Global. And now multi-product business model,

Speaker #3: I will now turn the call over to our Chief Executive Officer, Devin McGranahan.

Speaker #4: Good morning, and welcome to Western Union's fourth quarter 2025 financial results conference call. It was great to see many of you at our Investor Day last fall for the launch of our Beyond Strategy.

Devin McGranahan: ... Good morning, and welcome to Western Union's Q4 2025 Financial Results Conference Call. It was great to see many of you at our Investor Day last fall for the launch of our Beyond strategy. We are excited about building a digital-first, retail-enabled consumer services company that is powered by payments and innovation. We remain optimistic about the longer-term outlook for our business, as we believe our core retail remittance business will improve as migration patterns normalize, and we work to increase both our revenue and share gains in this important market. We believe that our focus on becoming market competitive, driving productivity, expanding our payments capabilities, and growing share within higher growth corridors and geographies, is the key to delivering on this vision. A key element of our strategy has been to build everyday financial services that can leverage our global brand and our extensive payment capabilities.

Devin McGranahan: Good morning, and welcome to Western Union's Q4 2025 Financial Results Conference Call. It was great to see many of you at our Investor Day last fall for the launch of our Beyond strategy. We are excited about building a digital-first, retail-enabled consumer services company that is powered by payments and innovation. We remain optimistic about the longer-term outlook for our business, as we believe our core retail remittance business will improve as migration patterns normalize, and we work to increase both our revenue and share gains in this important market. We believe that our focus on becoming market competitive, driving productivity, expanding our payments capabilities, and growing share within higher growth corridors and geographies, is the key to delivering on this vision. A key element of our strategy has been to build everyday financial services that can leverage our global brand and our extensive payment capabilities.

Speaker #4: We are excited about building a digital-first, retail-enabled, consumer services company that is powered by payments and innovation. We remain optimistic about the longer-term outlook for our business, as we believe our core retail remittance business will improve as migration patterns normalize and we work to increase both our revenue and share gains in this important market.

For the fourth quarter, we reported revenue of 1 billion dollars on an adjusted basis. This was a decline of 5% year-over-year, consumer money transfer transactions, were down to 1.5% in the quarter and cross-border, principal growth was up on a constant currency basis. Speaking to the resilience of our customer base and their perseverance in the current macro environment.

In this quarter. We again, saw incremental Improvement in transactions as Q4 was better than Q3 coming off of the lows that we saw in the second quarter of 2025.

Speaker #4: We believe that our focus on becoming market competitive, driving productivity, expanding our payments capabilities, and growing share within higher-growth corridors and geographies is the key to delivering on this vision.

Speaker #4: A key element of our strategy has been to build everyday financial services that can leverage our global brand and our extensive payment capabilities. As these products and services gain critical mass, they will moderate some of the swings we have seen in the core remittance business, as they tend to be less correlated with immigration trends.

We continue to focus on operational efficiencies, as we seek to benefit from our scale, this strong operational. Focus allowed us to deliver at the top end of our earnings guidance. This year, even in the face of these macro driven Revenue, headwinds adjusted earnings per share came in at 45 cents compared to 40 cents this quarter a year ago,

Our retail business in the Americas continued to face headwinds.

Associated with the current geopolitical environment. And while it may be too early to say that we have reached bottom, we are potentially seeing some stabilization.

Devin McGranahan: As these products and services gain critical mass, they will moderate some of the swings we have seen in the core remittance business, as they tend to be less correlated with immigration trends. As witnessed in this quarter, where our consumer services business continued to perform, which allowed us to report a reasonable quarter against a difficult macro backdrop, demonstrating the benefits of our global and now multiproduct business model. For Q4, we reported revenue of $1 billion. On an adjusted basis, this was a decline of 5% year-over-year. Consumer Money Transfer transactions were down 2.5% in the quarter, and cross-border principal growth was up on a constant currency basis, speaking to the resilience of our customer base and their perseverance in the current macro environment.

Speaker #4: As witnessed in this quarter, our consumer services business continued to perform, which allowed us to report a reasonable quarter against a difficult macro backdrop, demonstrating the benefits of our global and now multi-product business model.

We did see strong performance in many quarters and geographies offset by continued weakness. In the Americas across several large corridors. Most notably US to Mexico.

Speaker #4: For the fourth quarter, we reported revenue of $1 billion. On an adjusted basis, this was a decline of 5% year over year. Consumer money transfer transactions were down 2.5% in the quarter, and cross-border principal growth was up on a constant currency basis, speaking to the resilience of our customer base and their perseverance in the current macro environment.

The US to Mexico quarter improved hundreds of basis points, relative to the third quarter.

Our branded digital business increased transactions 13% and adjusted Revenue by 6% in the quarter, with gains driven by some of the new relationships that we have recently signed in the Middle East earlier in the year.

Speaker #4: In this quarter, we again saw incremental improvement in transactions, as Q4 was better than Q3, coming off of the lows that we saw in the second quarter of 2025.

Devin McGranahan: In this quarter, we again saw incremental improvement in transactions as Q4 was better than Q3, coming off of the lows that we saw in the second quarter of 2025. We continue to focus on operational efficiencies as we seek to benefit from our scale. This strong operational focus allowed us to deliver at the top end of our earnings guidance this year, even in the face of these macro-driven revenue headwinds. Adjusted earnings per share came in at $0.45, compared to $0.40 this quarter a year ago. Our retail business in the Americas continued to face headwinds associated with the current geopolitical environment, and while it may be too early to say that we have reached bottom, we are potentially seeing some stabilization.

Speaker #4: We continue to focus on operational efficiencies as we seek to benefit from our scale. This strong operational focus allowed us to deliver at the top end of our earnings guidance this year, even in the face of these macro-driven revenue headwinds.

Consumer services, adjusted Revenue was up, 26% in the quarter and roughly 30% for the full year driven by growth in travel money led by Euro change as well as growth in our bill payments business. We expect consumer services to have another strong year in 2026 as our travel. But money business is expected to approach 150 million dollars in Revenue up from nearly nothing a few years ago.

Speaker #4: Adjusted earnings per share came in at $0.45, compared to $0.40 this quarter a year ago. Our retail business in the Americas continued to face headwinds.

Speaker #4: Associated with the current geopolitical environment, and while it may be too early to say that we have reached bottom, we are potentially seeing some stabilization.

We see a market opportunity for a globally, branded travel money franchise as the market remains very fragmented and some of the prior large, Global players have retreated since Co given the strength of our brand, our Global footprint and strong retail distribution. We believe there will be many more opportunities for Geographic expansion.

Hey, Hallmark of the company for many years has been a strong commitment to returning excess Capital to shareholders.

Speaker #4: We did see strong performance in many corridors and geographies, offset by continued weakness in the Americas across several large corridors, most notably U.S. to Mexico.

Devin McGranahan: We did see strong performance in many corridors and geographies, offset by continued weakness in the Americas across several large corridors, most notably US to Mexico. Although from a transaction growth rate perspective, the US to Mexico quarter improved hundreds of basis points relative to Q3. Our branded digital business increased transactions 13% and adjusted revenue by 6% in the quarter, with gains driven by some of the new relationships that we have recently signed in the Middle East earlier in the year. Consumer services adjusted revenue was up 26% in the quarter and roughly 30% for the full year, driven by growth in travel money, led by eurochange, as well as growth in our bill payments business.

Over the past year. We delivered again with above average industry margins and a return of over 500 million vea dividend and share BuyBacks.

Speaker #4: Although, from a transaction growth rate perspective, the US to Mexico corridor improved by hundreds of basis points relative to the third quarter. Our branded digital business increased transactions 13% and adjusted revenue by 6% in the quarter, with gains driven by some of the new relationships that we have recently signed in the Middle East earlier in the year.

I am also excited about the capabilities. We've been building on the m&a, front the deals we were able to do in 2025 and I now look forward to welcoming interme into our family. Hopefully in the second quarter of this year

Matt will discuss our fourth quarter results in 2026 Outlook in more detail later in the call.

Speaker #4: Consumer Services adjusted revenue was up 26% in the quarter and roughly 30% for the full year, driven by growth in travel money led by Eurochange, as well as growth in our bill payments business.

Speaker #4: We expect Consumer Services to have another strong year in 2026, as our Travel Money business is expected to approach $150 million in revenue, up from nearly nothing a few years ago.

Switching briefly to the macro environment. While economic conditions, globally, remain reasonable with inflation rates declining in key markets around the world and GDP outlooks remaining relatively strong the landscape for human capital. Mobility continues to shift each and every day.

Devin McGranahan: We expect consumer services to have another strong year in 2026, as our travel money business is expected to approach $150 million in revenue, up from nearly nothing a few years ago. We see a market opportunity for a globally branded travel money franchise as the market remains very fragmented and some of the prior large global players have retreated since COVID. Given the strength of our brand, our global footprint, and strong retail distribution, we believe there will be many more opportunities for geographic expansion. A hallmark of the company for many years has been a strong commitment to returning excess capital to shareholders. Over the past year, we delivered again with above-average industry margins and a return of over $500 million via dividend and share buybacks.

Speaker #4: We see a market opportunity for a globally branded travel money franchise, as the market remains very fragmented and some of the prior large global players have retreated since COVID.

For example, in the last quarter, we saw an election in Chile, they will have implications across the region for immigration and Mobility. Also a change in leadership in Venezuela for which the implications are still being assessed. These kinds of macro conditions provide a dynamic and constantly changing environment for our business.

Speaker #4: Given the strength of our brand, our global footprint, and strong retail distribution, we believe there will be many more opportunities for geographic expansion. A hallmark of the company for many years has been a strong commitment to returning excess capital to shareholders.

While we expect them to stabilize over time in the near term, we believe that companies with larger and more Global operating models are better positioned to withstand disruption in any individual country or region.

Speaker #4: Over the past year, we delivered again, with above-average industry margins and a return of over $500 million via dividend and share buybacks. I am also excited about the capabilities we've been building on the M&A front, the deals we were able to do in 2025, and I now look forward to welcoming Intermex into our family, hopefully in the second quarter of this year.

On the policy side, the US remittance tax went into effect on January, 1st, for all cash-based International, money transfer transactions, originated in the United States.

Devin McGranahan: I am also excited about the capabilities we have been building on the M&A front, the deals we were able to do in 2025, and I now look forward to welcoming Intermex into our family, hopefully in Q2 of this year. Matt will discuss our Q4 results in 2026 outlook in more detail later in the call. Switching briefly to the macro environment. While economic conditions globally remain reasonable, with inflation rates declining in key markets around the world and GDP outlooks remaining relatively strong, the landscape for human capital mobility continues to shift each and every day. For example, in the last quarter, we saw an election in Chile that will have implications across the region for immigration and mobility. Also, a change in leadership in Venezuela, for which the implications are still being assessed.

Speaker #4: Matt will discuss our fourth quarter results and 2026 outlook in more detail later in the call. Switching briefly to the macro environment, while economic conditions globally remain reasonable, with inflation rates declining in key markets around the world and GDP outlooks remaining relatively strong, the landscape for human capital mobility continues to shift each and every day.

I would like to take a brief moment to call out the strong work, our team did and the flexibility of our new retail platform that enabled us to implement the tax across all our channels and all our partners flawlessly. We have received positive feedback from both send and receive side Partners on our relative execution with that said, through the first 6 weeks of this year, we have not seen a material impact on our business, but we continue to monitor the situation closely.

Since the beginning of the year, however, we have seen an uptick in our prepaid cards and our vo, money wallet.

Speaker #4: For example, in the last quarter, we saw an election in Chile that will have implications across the region for immigration and mobility. Also, a change in leadership in Venezuela, for which the implications are still being assessed.

We launched the vo, money wallet in the US in March of 2025. Since then we have onboarded over, 30,000 customers and have a couple of thousand weekly active user base. Now,

Speaker #4: These kinds of macro conditions provide a dynamic and constantly changing environment for our business. While we expect them to stabilize over time, in the near term, we believe the companies with larger and more global operating models are better positioned to withstand disruption in any individual country or region.

An important note, here is the vast majority of these customers are the result of a money transfer redirect. We have spent very few marketing dollars on customer acquisition.

This is a powerful and effective approach to building our digital wallet customer base.

Devin McGranahan: These kinds of macro conditions provide a dynamic and constantly changing environment for our business. While we expect them to stabilize over time, in the near term, we believe that companies with larger and more global operating models are better positioned to withstand disruption in any individual country or region. On the policy side, the US remittance tax went into effect on 1 January 2026 for all cash-based international money transfer transactions originated in the United States. I would like to take a brief moment to call out the strong work our team did and the flexibility of our new retail platform that enabled us to implement the tax across all our channels and all our partners flawlessly. We have received positive feedback from both send and receive side partners on our relative execution.

Speaker #4: On the policy side, the US remittance tax went into effect on January 1st for all cash-based international money transfer transactions originated in the United States.

Speaker #4: I would like to take a brief moment to call out the strong work our team did, and the flexibility of our new retail platform that enabled us to implement the tax across all our channels and all our partners flawlessly.

These payout customers who traditionally have taken their money and left. Western Union are now becoming weekly active users who are frequently using their debit card at points of sale and about a third of them are initiating new international money transfer transactions. While these numbers remain small compared to the scope of our overall us business, they do highlight the power of the model. We are building.

Speaker #4: We have received positive feedback from both send- and receive-side partners on our relative execution. With that said, through the first six weeks of this year, we have not seen a material impact on our business, but we continue to monitor the situation closely.

Strategy. Our goal is to create a 2-sided network that makes it easy for our customers to move funds cross border while staying within the Western Union ecosystem. In addition to our us wallet, We are continuing to see strong results out of our wallets in both, Argentina and Brazil,

Speaker #4: Since the beginning of the year, however, we have seen an uptick in our prepaid cards and our Vigo Money Wallet. We launched the Vigo Money Wallet in the U.S. in March of 2025.

Devin McGranahan: With that said, through the first six weeks of this year, we have not seen a material impact on our business, but we continue to monitor the situation closely. Since the beginning of the year, however, we have seen an uptick in our prepaid cards and our VIGO Money Wallet. We launched the VIGO Money Wallet in the US in March 2025. Since then, we have onboarded over 30,000 customers and have a couple of thousand weekly active user base now. An important note here is the vast majority of these customers are the result of a money transfer redirect. We have spent very few marketing dollars on customer acquisition. This is a powerful and effective approach to building our digital wallet customer base.

In Brazil. Now we have onboarded roughly 20,000 customers since our launch in May of last year and in the most recent month we have redirected roughly 5% of all inbound transfers to the country into our wallet.

Speaker #4: Since then, we have onboarded over 30,000 customers and have a couple of thousand weekly active user base now. An important note here is the vast majority of these customers are the result of a money transfer redirect.

This saves commission expense, as well as gives us an opportunity to increase retention and potentially monetize Our receiver base like we are seeing in the US as referenced above

Speaker #4: We have spent very few marketing dollars on customer acquisition. This is a powerful and effective approach to building our digital wallet customer base. These payout customers, who traditionally have taken their money and left Western Union, are now becoming weekly active users who are frequently using their debit card at points of sale, and about a third of them are initiating new international money transfer transactions.

For context in Argentina, which we launched earlier than Brazil. We are now up to 17% of all inbound remittances and ending up in our wallet in that country.

We have anticipated launching a wallet in Australia later this year and we continue down the path of developing a wallet for Mexico as we await regulatory approval for our pending acquisition.

Devin McGranahan: These payout customers, who traditionally have taken their money and left Western Union, are now becoming weekly active users who are frequently using their debit card at points of sale, and about a third of them are initiating new international money transfer transactions. While these numbers remain small compared to the scope of our overall US business, they do highlight the power of the model we are building. As you know, the US Wallet is an extension of our broader wallet strategy. Our goal is to create a two-sided network that makes it easy for our customers to move funds cross-border while staying within the Western Union ecosystem. In addition to our US Wallet, we are continuing to see strong results out of our wallets in both Argentina and Brazil.

Speaker #4: While these numbers remain small compared to the scope of our overall U.S. business, they do highlight the power of the model we are building.

In addition we believe that we will see an expansion of our wallet capabilities in Singapore. The Philippines and potentially Israel as well all in 2026.

Speaker #4: As you know, the US wallet is an extension of our broader wallet strategy. Our goal is to create a two-sided network that makes it easy for our customers to move funds cross-border while staying within the Western Union ecosystem.

Speaker #4: In addition to our U.S. wallet, we are continuing to see strong results out of our wallets in both Argentina and Brazil. In Brazil now, we have onboarded roughly 20,000 customers since our launch in May of last year, and in the most recent month, we have redirected roughly 5% of all inbound transfers to the country into our wallet.

Since the beginning of 2026, our sale of prepaid cards has also gone up with now, over a thousand agent locations enabled to sell prepaid cards. We are seeing a market-driven increase which we believe may be, because of the remittance tax, linkage, linkages between this consumer services product, and our Core Business are high with over 30% of all transactions, being Western Union, money transfers and 60% of newly loaded cards. Being used to send a cross-border remittance with Western Union.

Speaker #4: This saves commission expense, as well as gives us an opportunity to increase retention and potentially monetize our receiver base, like we are seeing in the U.S., as referenced above.

Devin McGranahan: In Brazil now, we have onboarded roughly 20,000 customers since our launch in May of last year, and in the most recent month, we have redirected roughly 5% of all inbound transfers to the country into our wallet. This saves commission expense as well as gives us an opportunity to increase retention and potentially monetize our receiver base, like we are seeing in the US, as referenced above. For context, in Argentina, which we launched earlier than Brazil, we are now up to 17% of all inbound remittances ending up in our wallet in that country. We have anticipated launching a wallet in Australia later this year, and we continue down the path of developing a wallet for Mexico as we await regulatory approval for our pending acquisition.

2 years ago, we began a program to enable digital payment Acceptance in our point of sale for retail agents.

We firmly believe that the retail experience and value proposition is more than just being about cash.

Speaker #4: For context, in Argentina, where we launched earlier than Brazil, we are now up to 17% of all inbound remittances ending up in our wallet in that country.

It is about the trust needed for an important transaction that comes from personal assistance, in language, culturally appropriate, Communications and high-quality service in the event of an issue.

Speaker #4: We have anticipated launching a wallet in Australia later this year, and we continue down the path of developing a wallet for Mexico as we await regulatory approval for our pending acquisition.

Speaker #4: In addition, we believe that we will see an expansion of our wallet capabilities in Singapore, the Philippines, and potentially Israel as well, all in 2026.

As more and more of our customers have access to payment and banking products, we need our retail systems to support card-based payments. The passage of the remittance tax has accelerated this transition in the US with debit cards. Now accounting for 15% of all retail, funding in the US, in the month of January, on our Western Union Point of Sales system. This is up materially over the last several months.

Speaker #4: Since the beginning of 2026, our sale of prepaid cards has also gone up. With now over 1,000 agent locations enabled to sell prepaid cards, we are seeing a market-driven increase, which we believe may be because of the remittance tax.

Devin McGranahan: In addition, we believe that we will see an expansion of our wallet capabilities in Singapore, the Philippines, and potentially Israel as well, all in 2026. Since the beginning of 2026, our sale of prepaid cards has also gone up. With now over 1,000 agent locations enabled to sell prepaid cards, we are seeing a market-driven increase, which we believe may be because of the remittance tax. Linkages between this consumer services product and our core business are high, with over 30% of all transactions being Western Union money transfers and 60% of newly loaded cards being used to send a cross-border remittance with Western Union. Two years ago, we began a program to enable digital payment acceptance in our point of sale for retail agents. We firmly believe that the retail experience and value proposition is more than just being about cash.

Another focus in the US market in the quarter, was us to Mexico.

Speaker #4: Linkage between this consumer services product and our core business are high, with over 30% of all transactions being Western Union money transfers, and 60% of newly loaded cards being used to send a cross-border remittance with Western Union.

The team has been working hard to identify market and agent. Segment. Opportunities to focus on driving promotions and pricing strategies and increasing our digitally directed payout services.

That said, while it is still negative on a year-over-year basis, we are beginning to see improvements on a quarter over quarter basis with last summer being the low point.

Speaker #4: Two years ago, we began a program to enable digital payment acceptance in our point of sale for retail agents. We firmly believe that the retail experience and value proposition is more than just being about cash.

And while corridors like Mexico, Venezuela Ecuador, Nicaragua and Columbia.

Speaker #4: It is about the trust needed for an important transaction that comes from personal assistance, in-language, culturally appropriate communications, and high-quality service in the event of an issue.

Continue to decline, we begin to see transaction growth in the quarter to a number of other important, corridors, including Brazil, Guatemala, Jamaica, and the Philippines.

Speaker #4: As more and more of our customers have access to payment and banking products, we need our retail systems to support card-based payments. The passage of the remittance tax has accelerated this transition in the US, with debit cards now accounting for 15% of all retail funding in the US in the month of January on our Western Union point of sale system.

The bank of Mexico data would seem to indicate that the worst may be behind us with principal growth in the most recent, reported month going, slightly positive on a year-over-year basis, improving materially from the summer lows.

Devin McGranahan: It is about the trust needed for an important transaction that comes from personal assistance in language, culturally appropriate communications, and high-quality service in the event of an issue. As more and more of our customers have access to payment and banking products, we need our retail systems to support card-based payments. The passage of the remittance tax has accelerated this transition in the US, with debit cards now accounting for 15% of all retail funding in the US in the month of January on our Western Union point-of-sale system. This is up materially over the last several months. Another focus in the US market in the quarter was US to Mexico. The team has been working hard to identify market and agent segment opportunities to focus on, driving promotions and pricing strategies, and increasing our digitally directed payout services.

Although there may have been some pull forward in that number as customers look to move, money ahead of the implementation of the US retail remittance tax.

Speaker #4: This is up materially over the last several months. Another focus in the U.S. market in the quarter was U.S. to Mexico. The team has been working hard to identify market and agent segment opportunities to focus on.

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 provide trusted compliant and accessible Financial Services.

Speaker #4: Driving promotions and pricing strategies, and increasing our digitally directed payout services. That said, while it is still negative on a year-over-year basis, we are beginning to see improvements on a quarter-over-quarter basis, with last summer being the low point.

As the market continues to evolve, we continue to see a shift towards the digital channel, particularly among younger and more technologically savvy. Customer cohorts

Generally consistent globally.

Speaker #4: And while corridors like Mexico, Venezuela, Ecuador, Nicaragua, and Colombia continue to decline, we begin to see transaction growth in the quarter in a number of other important corridors, including Brazil, Guatemala, Jamaica, and the Philippines.

Devin McGranahan: That said, while it is still negative on a year-over-year basis, we are beginning to see improvements on a quarter-over-quarter basis, with last summer being the low point. While corridors like Mexico, Venezuela, Ecuador, Nicaragua, and Colombia continue to decline, we have begun to see transaction growth in the quarter to a number of other important corridors, including Brazil, Guatemala, Jamaica, and the Philippines. The Bank of Mexico data would seem to indicate that the worst may be behind us, with principal growth in the most recent reported month going slightly positive on a year-over-year basis, improving materially from the summer lows. Although there may have been some pull forward in that number as customers look to move money ahead of the implementation of the US retail remittance tax. Despite these short-term headwinds, we believe the long-term trajectory remains clear. Global migration is not disappearing. It is adapting.

It does not mean however that a growing digital business, necessarily means a shrinking retail business in Scandinavia for example a region that is highly digital and has nearly eliminated the use of cash. Our retail business grew, transactions and revenue double digits last year.

Speaker #4: The Bank of Mexico data would seem to indicate that the worst may be behind us, with principal growth in the most recent reported month going slightly positive on a year-over-year basis, improving materially from the summer lows.

What does it mean? What it does mean is that the most attractive and growing part of the market, we will have to be able to compete with digital natives that do not have the complexity or the history of a large retail business.

Speaker #4: Although there may have been some pull-forward in that number, as customers look to move money ahead of the implementation of the U.S. retail remittance tax.

Speaker #4: 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 provide trusted, compliant, and accessible financial services.

To do this, we believe we have 2 real sources of competitive Advantage, first. We see our strong brand recognition and the large base of existing customers as the key building blocks to cost-effectively build our digital business, without having to overinvestment,

Our unit economics for key functions like compliance Tech Network management, payout costs and customer service benefit from our overall scale, as the largest remittance player in the market.

Speaker #4: As the market continues to evolve, we continue to see a shift towards the digital channel, particularly among younger and more technologically savvy customer cohorts.

Devin McGranahan: People will continue to move in search of opportunity, education, and family, and Western Union will continue to provide trusted, compliant, and accessible financial services. As the market continues to evolve, we continue to see a shift towards the digital channel, particularly among younger and more technologically savvy customer cohorts. This varies by region and country, but the trend is generally consistent globally. It does not mean, however, that a growing digital business necessarily means a shrinking retail business. In Scandinavia, for example, a region that is highly digital and has nearly eliminated the use of cash, our retail business grew transactions and revenue double digits last year. What does it mean?

Speaker #4: This varies by region and country, but the trend is generally consistent globally. It does not mean, however, that a growing digital business necessarily means a shrinking retail business.

Now that we have largely achieved price competitiveness, we believe these benefits can be more easily transferred into competitive advantage. In the end, the rule only be a few players that will have the scale to effectively compete on a global basis digitally. We believe we are well positioned to be 1 of them.

Speaker #4: In Scandinavia, for example, a region that is highly digital and has nearly eliminated the use of cash, our retail business grew transactions and revenue double digits last year.

To capture this opportunity. We have to deliver a digital first customer experience throughout the entire Journey. Our cross, the majority of our markets

with the launch of our Beyond platform. In 2025, we believe we now have the infrastructure to achieve this goal.

Speaker #4: What does it mean? What it does mean is that the most attractive and growing part of the market—we will have to be able to compete with digital natives that do not have the complexity or the history of a large retail business.

Speaker #4: To do this, we believe we have two real sources of competitive advantage. First, we see our strong brand recognition and the large base of existing customers as the key building blocks to cost-effectively build our digital business, without having to overinvest in non-scalable marketing expense.

We are planning to have all of our markets on the Beyond platform by the end of 2027. This will be a meaningful acceleration to the work that we have been doing to modernize our technology and experience over the past 2 to 3 years.

Devin McGranahan: What it does mean is that, in the most attractive and growing part of the market, we will have to be able to compete with digital natives that do not have the complexity or the history of a large retail business. To do this, we believe we have two real sources of competitive advantage. First, we see our strong brand recognition and the large base of existing customers as the key building blocks to cost effectively build our digital business without having to overinvest in non-scalable marketing expense. Second, our unit economics for key functions like compliance, tech, network management, payout costs, and customer service benefit from our overall scale as the largest remittance player in the market. Now that we have largely achieved price competitiveness, we believe these benefits can be more easily transferred into competitive advantage.

Second, we need to translate our brand strength and Market presence into scalable gains, in new customer acquisition, over the past 12 to 18 months. We have seen a flattening of our customer, acquisition Trends outside of the Middle East and we need to improve upon that.

Speaker #4: Second, our unit economics for key functions like compliance, tech, network management, payout costs, and customer service benefit from our overall scale as the largest remittance player in the market.

Speaker #4: Now that we have largely achieved price competitiveness, we believe these benefits can be more easily transferred into competitive advantage. In the end, there will only be a few players that will have the scale to effectively compete on a global basis digitally.

These opportunities will be accelerates to our digital business which has now grown in transaction, double digits and revenue, mid single digits for 2 straight years, our digital business. Now accounts for over 40% of the principal we send around the world and as the world continues to move more digital, we will continue to move right along with it.

You see this with our payments Network, where we have made meaningful progress in creating 1 of the largest at scale funds, in and funds out platforms anywhere in the world.

Speaker #4: We believe we are well-positioned to be one of them. To capture this opportunity, we have to deliver a digital-first customer experience throughout the entire journey across the majority of our markets.

Devin McGranahan: In the end, there will only be a few players that will have the scale to effectively compete on a global basis digitally. We believe we are well positioned to be one of them. To capture this opportunity, we have to deliver a digital-first customer experience throughout the entire journey across the majority of our markets. With the launch of our Beyond platform in 2025, we believe we now have the infrastructure to achieve this goal. We are planning to have all of our markets on the Beyond platform by the end of 2027. This will be a meaningful acceleration to the work that we have been doing to modernize our technology and experience over the past two to three years. Second, we need to translate our brand strength and market presence into scalable gains in new customer acquisition.

Speaker #4: With the launch of our Beyond platform in 2025, we believe we now have the infrastructure to achieve this goal. We are planning to have all of our markets on the Beyond platform by the end of 2027.

Today we have over 300 funds and types that we support, and billions of accounts and wallet end points in our digital funds out Network. We are using this network. Not only to drive both our retail business and our digital business, but to launch new businesses. Like our recently announced digital asset Network

Speaker #4: This will be a meaningful acceleration to the work that we have been doing to modernize our technology and experience over the past two to three years.

As a matter of fact, I just returned from a trip to Dubai to visit some of our large Partners in that region. There may not be a region in the world, that is moving to digital at a more rapid Pace than the Middle East.

Speaker #4: Second, we need to translate our brand strength and market presence into scalable gains in new customer acquisition. Over the past 12 to 18 months, we have seen a flattening of our customer acquisition trends outside of the Middle East, and we need to improve upon that.

Speaker #4: These opportunities will be accelerants to our digital business, which has now grown transactions double digits and revenue mid-single digits for two straight years. Our digital business now accounts for over 40% of the principal we send around the world, and as the world continues to move more digital, we will continue to move right along with it.

Last year we announced 2 Partnerships in the Middle East to complement our existing business there. As you know, these markets are difficult for traditional mto's given the restrictive ownership and licensing requirements. In most of these Middle Eastern countries, these Partnerships are with well-known digital native Brands who have accumulated

Devin McGranahan: Over the past 12 to 18 months, we have seen a flattening of our customer acquisition trends outside of the Middle East, and we need to improve upon that. These opportunities will be accelerants to our digital business, which has now grown in transaction double digits and revenue mid-single digits for 2 straight years. Our digital business now accounts for over 40% of the principal we send around the world, and as the world continues to move more digital, we will continue to move right along with it. You see this with our payments network, where we have made meaningful progress in creating one of the largest at-scale funds in and funds out platforms anywhere in the world. Today, we have over 300 funds in types that we support and billions of accounts and wallet endpoints in our digital funds out network.

Speaker #4: You see this with our payments network, where we have made meaningful progress in creating one of the largest at-scale funds-in and funds-out platforms anywhere in the world.

Large customer bases and essentially function as super apps or financial ecosystems for their customers to provide a wide range of telecommunications and financial services. We are pleased to be partners with these institutions and offer them, the benefits of our payout Network and our scale that few others can match which enables us to win their business.

Speaker #4: Today, we have over 300 funds-in types that we support and billions of accounts and wallet endpoints in our digital funds-out network. We are using this network not only to drive both our retail business and our digital business, but to launch new businesses like our recently announced digital asset network.

Next, I would like to provide a quick update on our digital asset strategy at our investor day. A few months ago, we laid out an ambitious plan to use our assets in new and unique ways, and to become a more meaningful player in the digital asset economy.

Speaker #4: As a matter of fact, I just returned from a trip to Dubai to visit some of our large partners in that region. There may not be a region in the world that is moving to digital at a more rapid pace than the Middle East.

Devin McGranahan: We are using this network not only to drive both our retail business and our digital business, but to launch new businesses like our recently announced digital asset network. As a matter of fact, I just returned from a trip to Dubai to visit some of our large partners in that region. There may not be a region in the world that is moving to digital at a more rapid pace than the Middle East. Last year, we announced two partnerships in the Middle East to complement our existing business there. As you know, these markets are difficult for traditional MTOs, given the restrictive ownership and licensing requirements in most of these Middle Eastern countries.

Speaker #4: Last year, we announced two partnerships in the Middle East to complement our existing business there. As you know, these markets are difficult for traditional MTOs, given the restrictive ownership and licensing requirements in most of these Middle Eastern countries.

Legacy correspondent banking, systems, shorten settlement, windows, and improve our Capital efficiency. We see significant opportunities for us to move, money faster and at lower cost without compromising compliance or customer Trust.

Speaker #4: These partnerships are with well-known digital-native brands who have accumulated large customer bases and essentially function as super apps or financial ecosystems for their customers, providing a wide range of telecommunications and financial services.

These Milestones put us on a path to meet our expectation of offering our payment token to the market by the middle of this year. I'm happy to report that. Remain unscheduled and we were looking forward to our Market launch.

Speaker #4: We are pleased to be partners with these institutions and offer them the benefits of our payout network and our scale that few others can match, which enables us to win their business.

Devin McGranahan: These partnerships are with well-known digital native brands who have accumulated large customer bases and essentially function as super apps or financial ecosystems for their customers to provide a wide range of telecommunications and financial services. We are pleased to be partners with these institutions and offer them the benefits of our payout network and our scale that few others can match, which enables us to win their business. Next, I would like to provide a quick update on our digital asset strategy. At our Investor Day a few months ago, we laid out an ambitious plan to use our assets in new and unique ways and to become a more meaningful player in the digital asset economy. Over the last few months, we have successfully minted our first US dollar payment token, USDPT, and have moved it between our Treasury Department and our agents' wallets.

Speaker #4: Next, I would like to provide a quick update on our digital asset strategy. At our investor day a few months ago, we laid out an ambitious plan to use our assets in new and unique ways, and to become a more meaningful player in the digital asset economy.

Finally we are expanding our Partnerships and capabilities to allow our customers to move and hold stable, coin digital assets and to allow them to have more control and how they manage and move their money. In many parts of the world, being able to hold a US dollar denominated asset has real value as inflation and currency, devaluation rapidly, inroads and individuals purchasing power.

We are working with rain and visa to bring the first USD PT stable card to Market and are targeting an initial launch of more than a dozen countries later this year.

Speaker #4: Over the last few months, we have successfully minted our first US dollar payment token, USDPT, and have moved it between our treasury department and our agent's wallets.

I look forward to continuing to update you on these initiatives as the year progresses and we are excited about the opportunities in front of us.

Speaker #4: These pilots are focused on leveraging on-chain settlement to reduce dependency on legacy correspondent banking systems, shorten settlement windows, and improve our capital efficiency. We see significant opportunities for us to move money faster and at lower cost without compromising compliance or customer trust.

Finally, I would like to take a moment to highlight several new agent wins.

Over the last 2 years, we've invested heavily in modernizing our retail technology platform. Making both integration and ongoing experience management significantly easier.

Speaker #4: These milestones put us on a path to meet our expectation of offering our payment token to the market by the middle of this year.

Devin McGranahan: These pilots are focused on leveraging on-chain settlement to reduce dependency on legacy correspondent banking systems, shorten settlement windows, and improve our capital efficiency. We see significant opportunities for us to move money faster and at lower cost without compromising compliance or customer trust. These milestones put us on a path to meet our expectation of offering our payment token to the market by the middle of this year.... I’m happy to report that we remain on schedule, and we were looking forward to our market launch. Finally, we are expanding our partnerships and capabilities to allow our customers to move and hold stablecoin digital assets, and to allow them to have more control in how they manage and move their money. In many parts of the world, being able to hold a US dollar-denominated asset has real value, as inflation and currency devaluation rapidly erodes an individual's purchasing power.

We believe our partner OS platform is now the gold standard in the industry for large retail Networks.

Speaker #4: I'm happy to report that we remain on schedule, and we are looking forward to our market launch. Finally, we are expanding our partnerships and capabilities to allow our customers to move and hold stablecoin digital assets, and to allow them to have more control in how they manage and move their money.

Combining these improvements with our move to a more competitive consumer value proposition. And the extensive work we have done on our agent support model. We are seeing renewed momentum and interest from large distribution Networks.

Speaker #4: In many parts of the world, being able to hold a US dollar-denominated asset has real value as inflation and currency devaluation rapidly erode an individual's purchasing power.

A little over a month ago, we put an announcement out that we have resigned the Deutsche Post,

Speaker #4: We are working with RAIN and Visa to bring the first USDPT stable card to market and are targeting an initial launch of more than a dozen countries later this year.

Speaker #4: I look forward to continuing to update you on these initiatives as the year progresses, and we are excited about the opportunities in front of us.

This was 1 of the 2, significant European agents. We lost a couple of years ago as they made the decision to exit the remittance business with our improved Market position and capabilities. Deutsche posted to return to the remittance business. With a multi-year exclusive relationship with Western Union and a planned relaunch sometime in the middle of this year.

This will be a great addition to our German business and we look forward to offering our services across the Deutsche Post Network.

Speaker #4: Finally, I would like to take a moment to highlight several new agent wins. Over the last two years, we have invested heavily in modernizing our retail technology platform, making both integration and ongoing experience management significantly easier.

Devin McGranahan: We are working with Rain and Visa to bring the first USDPT stable card to market and are targeting an initial launch of more than a dozen countries later this year. I look forward to continuing to update you on these initiatives as the year progresses, and we are excited about the opportunities in front of us. Finally, I would like to take a moment to highlight several new agent wins. Over the last two years, we've invested heavily in modernizing our retail technology platform, making both integration and ongoing experience management significantly easier. We believe our partner OS platform is now the gold standard in the industry for large retail networks. Combining these improvements with our move to a more competitive consumer value proposition and the extensive work we have done on our agent support model, we are seeing renewed momentum and interest from large distribution networks.

Second, we recently signed an exclusive 5-year contract with Canada Post.

Speaker #4: We believe our partner OS platform is now the gold standard in the industry for large retail networks. Combining these improvements with our move to a more competitive consumer value proposition, and the extensive work we have done on our agent support model, we are seeing renewed momentum and interest from large distribution networks.

This is a new win for us and a competitive. Takeaway Canada, Post is expected to begin offering Western Union Service in the majority of its 5600 locations in the coming months and we look forward to servicing our Canadian customers throughout the posts extensive network.

This wind should help booster, our North American Business, and provide a substantial retail Network across Canada.

Speaker #4: A little over a month ago, we put an announcement out that we have re-signed the Deutsche Post. This was one of the two significant European agents we lost a couple of years ago, as they made the decision to exit the remittance business.

Third, we have recently signed a long-term exclusive contract with the California grocery store chain via to markets, which caters to the Latino Community across the state. This is a new relationship for Western Union and we look forward to offering our services to customers and varda locations.

Speaker #4: With our improved market position and capabilities, Deutsche Post has decided to return to the remittance business with a multi-year exclusive relationship with Western Union, and a planned relaunch sometime in the middle of this year.

Devin McGranahan: A little over a month ago, we put an announcement out that we have re-signed the Deutsche Post. This was one of the two significant European agents we lost a couple of years ago as they made the decision to exit the remittance business. With our improved market position and capabilities, Deutsche Post has decided to return to the remittance business with a multiyear exclusive relationship with Western Union and a planned relaunch sometime in the middle of this year. This will be a great addition to our German business, and we look forward to offering our services across the Deutsche Post network. Second, we recently signed an exclusive five-year contract with Canada Post. This is a new win for us and a competitive takeaway.

Speaker #4: This will be a great addition to our German business, and we look forward to offering our services across the Deutsche Post network. Second, we recently signed an exclusive five-year contract with Canada Post.

Lastly we announced an investor day we have gone back to being exclusive with Kroger for money transfer. This Builds on the 40 plus year relationship. We have had with the company. We look forward to continued collaboration and are excited to see. Now, what we can accomplish together in this exclusive partnership

Speaker #4: This is a new win for us and a competitive takeaway. Canada Post is expected to begin offering Western Union service in the majority of its 5,600 locations in the coming months, and we look forward to servicing our Canadian customers throughout the Post's extensive network.

With these Partnerships that I have discussed. Today, we expect, at least an incremental $100 million of retail Revenue per year. When fully ramped, I am excited. Not only about these 4 opportunities but about the future prospects as our pipeline continues to remain robust.

The changes we have made to our retail technology platforms, our agent support our improved pricing and our leading payout network has put us in a position to grow our agent base for the first time in several years.

Speaker #4: This win should help bolster our North American business and provide a substantial retail network across Canada. Third, we have recently signed a long-term, exclusive contract with the California grocery store chain Vyarda Markets, which caters to the Latino community across the state.

Devin McGranahan: Canada Post is expected to begin offering Western Union service in the majority of its 5,600 locations in the coming months, and we look forward to servicing our Canadian customers throughout the Post's extensive network. This win should help bolster our North American business and provide a substantial retail network across Canada. Third, we have recently signed a long-term exclusive contract with the California grocery store chain, Vallarta Markets, which caters to the Latino community across the state. This is a new relationship for Western Union, and we look forward to offering our services to customers in Vallarta locations. Lastly, we announced at Investor Day. We have gone back to being exclusive with Kroger for money transfer. This builds on the 40+ year relationship we have had with the company.

Speaker #4: This is a new relationship for Western Union, and we look forward to offering our services to customers in Vyarda locations. Lastly, we announced an Investor Day.

Speaker #4: We have gone back to being exclusive with Kroger for money transfer. This builds on the 40-plus-year relationship we have had with the company. We look forward to continued collaboration and are excited to see now what we can accomplish together in this exclusive partnership.

Western Union to lead in the future of crossborder and accessible Financial Services.

Across the globe.

Speaker #4: With these partnerships that I have discussed today, we expect at least an incremental $100 million of retail revenue per year when fully ramped.

Speaker #4: I am excited not only about these four opportunities, but about the future prospects as our pipeline continues to remain robust. The changes we have made to our retail technology platforms, agent support, our improved pricing, and our leading payout network have put us in a position to grow our agent base for the first time in several years.

Devin McGranahan: We look forward to continued collaboration and are excited to see now what we can accomplish together in this exclusive partnership. With these partnerships that I have discussed today, we expect at least an incremental $100 million of retail revenue per year when fully ramped. I am excited not only about these four opportunities, but about the future prospects as our pipeline continues to remain robust. The changes we have made to our retail technology platforms, our agent support, our improved pricing, and our leading payout network has put us in a position to grow our agent base for the first time in several years. In closing, I want to reiterate our confidence in the path we're on. Western Union is transforming, becoming more digital, more agile, and more aligned with the evolving needs of our global customer base.

It is a privilege to be the CEO of this wonderful. And now 175 year old company, I am proud of what we have been able to accomplish so far. I would like to thank our Board of Directors for their continuing support and our combined commitment to drive shareholder value. I would also like to thank my leadership team and our nearly 10,000 employees for their laser focus. On delivering for our customers. Even in these tough times, thank you all. I will now turn the call over to Matt cagwin, our Chief Financial Officer

Thank you, Devon and good morning everybody. I'm delighted to be here today. To walk you through our fourth quarter and full year results, as well as our 2026 Financial Outlook.

Speaker #4: In closing, I want to reiterate our confidence in the path we're on. Western Union is transforming, becoming more digital, more agile, and more aligned with the evolving needs of our global customer base.

for the full year, we delivered, gaap revenue of 4.1, billion dollars,

Adjust, the revenue came and blow our Outlook reflecting ongoing industry. Disruption

Speaker #4: We are expanding our product suite, modernizing our platforms, and unlocking new opportunities for growth across all of our channels. We are positioning Western Union to lead in the future of cross-border and accessible financial services across the globe.

Adjusted Revenue growth, excluding Iraq was down, 2% driven by growth in consumer services and branded digital.

Offset by the America's retail business.

Speaker #4: It is a privilege to be the CEO of this wonderful, and now 175-year-old, company. I am proud of what we have been able to accomplish so far.

In the fourth quarter. Gaap Revenue was down. 1 billion. And our adjusted Revenue was down 5% driven by our consumer services and branded digital business offset by the America's business, which continues to struggle with macro headwinds.

Speaker #4: I would like to thank our Board of Directors for their continuing support and our combined commitment to drive shareholder value. I would also like to thank my leadership team and our nearly 10,000 employees for their laser focus on delivering for our customers, even in these tough times.

Devin McGranahan: We are expanding our product suite, modernizing our platforms, and unlocking new opportunities for growth across all of our channels. We are positioning Western Union to lead in the future of cross-border and accessible financial services across the globe. It is a privilege to be the CEO of this wonderful and now 175-year-old company. I am proud of what we have been able to accomplish so far. I would like to thank our board of directors for their continuing support and our combined commitment to drive shareholder value. I would also like to thank my leadership team and our nearly 10,000 employees for their laser focus on delivering for our customers, even in these tough times. Thank you all. I will now turn the call over to Matt Cagwin, our Chief Financial Officer.

The deceleration relative to Q3 was largely due to the slowdown in consumer services as communicated last quarter.

In 2025, our full year, adjusted operating margin was 20%.

Up from 19% in the prior period.

Speaker #4: Thank you, all. I will now turn the call over to Matt Cagwin, our Chief Financial Officer.

Adjusted operating margin in the quarter was 20% compared to 17% and the prior year benefiting from our continued cost discipline.

Speaker #2: Thank you, Devin. And good morning, everybody. I'm delighted to be here today to walk you through our fourth quarter and full-year results, as well as our 2026 financial outlook.

Speaker #2: For the full year, we delivered GAAP revenue of $4.1 billion. Adjusted revenue came in below our outlook, reflecting ongoing industry disruption. Adjusted revenue growth, excluding Iraq, was down 2%, driven by growth in consumer services and branded digital.

For the full year, we delivered adjusted EPS of a $1.75 which benefited from higher adjusted operating profit and fewer shares outstanding offset by higher interest expense which landed us to the top end of our guidance range of 1.65 to 1.75.

Adjusted EPS was 45 cents in the fourth quarter compared to 40 cents. A year ago,

Speaker #2: Offset by the Americas retail business. In the fourth quarter, GAP revenue was down $1 billion and our adjusted revenue was down 5%, driven by our consumer services and branded digital business, offset by the Americas business, which continues to struggle with macro headwinds.

Matt Cagwin: Thank you, Devin, and good morning, everybody. I'm delighted to be here today to walk you through our Q4 and full year results, as well as our 2026 financial outlook. For the full year, we delivered GAAP revenue of $4.1 billion. Adjusted revenue came in below our outlook, reflecting ongoing industry disruption. Adjusted revenue growth, excluding Iraq, was down 2%, driven by growth in consumer services and branded digital, offset by the Americas retail business. In the Q4, GAAP revenue was down $1 billion, and our adjusted revenue was down 5%, driven by our consumer services and branded digital business, offset by the Americas business, which continues to struggle with macro headwinds. The deceleration relative to Q3 was largely due to the slowdown in consumer services, as communicated last quarter.

Hey Jessie. EPS benefited from our cost management discipline as well as fewer shares outstanding partially offset by higher interest expense.

The adjusted tax rate for the quarter. And the full year was 12% and 13% respectively, consistent with the same.

Prior year.

Speaker #2: The deceleration relative to Q3 was largely due to the slowdown in consumer services, as communicated last quarter. In 2025, our full-year adjusted operating margin was 20%, up from 19% in the prior period.

now, turning to consumer services, which contributed 14% to total revenue this quarter,

Fourth quarter, adjusted Revenue, grew 26% driven by growth in our travel. Money business is well as growth in our bill paid business.

Speaker #2: Adjusted operating margin in the quarter was 20%, compared to 17% in the prior year, benefiting from our continued cost discipline. For the full year, we delivered adjusted EPS of $1.75, which benefited from higher adjusted operating profit and fewer shares outstanding, offset by higher interest expense.

I'm pleased to share that in 2025 adjusted revenue from consumer services, grew almost 30%.

We continue to believe that our consumer services business will grow double digit annually over the next several years.

This growth will come from continued Market, expansion of existing products.

Speaker #2: Which landed us at the top end of our guidance range of $1.65 to $1.75. Adjusted EPS was $0.45 in the fourth quarter, compared to $0.40 a year ago.

Matt Cagwin: In 2025, our full-year adjusted operating margin was 20%, up from 19% in the prior period. Adjusted operating margin in the quarter was 20% compared to 17% in the prior year, benefiting from our continued cost discipline. For the full year, we delivered adjusted EPS of $1.75, which benefited from higher adjusted operating profit and fewer shares outstanding, offset by higher interest expense, which landed us at the top end of our guidance range of $1.65 to $1.75. Adjusted EPS was $0.45 in the fourth quarter, compared to $0.40 a year ago. Adjusted EPS benefited from our cost management discipline as well as fewer shares outstanding, partially offset by higher interest expense. The adjusted tax rate for the quarter and the full year was 12% and 13% respectively, consistent with the same prior year.

As well as potential new product offerings and through inorganic growth strategies, they can benefit from Western Union's brand scale and Global nature of our business.

Speaker #2: Adjusted EPS benefited from our cost management discipline as well as fewer shares outstanding, partially offset by higher interest expense. The adjusted tax rate for the quarter and the full year was 12% and 13%, same as the prior year.

Is Devon. Highlighted, We are continuing to evolve our portfolio. Moving beyond remittances to build a broader Suite of consumer services.

Travel money, demonstrates what's possible. In just a few years we've grown from a few million dollars to over a hundred million dollar business.

And we believe there's more to come.

This illustrates the power of our brand Global footprint and unique capabilities.

Speaker #2: Now turning to consumer services, which contributed 14% to total revenue this quarter. Fourth-quarter adjusted revenue grew 26%, driven by growth in our travel money business as well as growth in our bill pay business.

Now, transitioning to Consumer money transfer or CMT.

For the full year CMT adjusted Revenue. Excluding Iraq was down 6%.

While transactions excluded 1%.

Speaker #2: I'm pleased to share that in 2025, adjusted revenue from consumer services grew almost 30%. We continue to believe that our consumer services business will grow double digits annually over the next several years.

In the fourth quarter CMT adjusted Revenue declined 9%, while CMT transactions, decline 2% driven by The Slowdown, in our retail business, as industry, conditions remain challenging throughout the quarter.

Speaker #2: This growth will come from continued market expansion of existing products, as well as potential new product offerings and through inorganic growth strategies. They can benefit from Western Union's brand, scale, and global nature of our business.

US immigration policies have continued to impact customer activity.

Matt Cagwin: Now turning to consumer services, which contributed 14% to total revenue this quarter. Q4 adjusted revenue grew 26%, driven by growth in our travel money business as well as growth in our bill pay business. I'm pleased to share that in 2025, adjusted revenue from consumer services grew almost 30%. We continue to believe that our consumer services business will grow double-digit annually over the next several years. This growth will come from continued market expansion of existing products, as well as potential new product offerings, and through inorganic growth strategies that can benefit from Western Union's brand, scale, and global nature of our business. As Devin highlighted, we are continuing to evolve our portfolio, moving beyond remittances to build a broader suite of consumer services. Travel money demonstrates what's possible.

These Dynamics have been present for most of the year and remain a factor in our results, in the fourth quarter.

Customers continue to send fewer transactions, but with higher average, principal per transaction.

Speaker #2: As Devin highlighted, we are continuing to evolve our portfolio, moving beyond remittances to build a broader suite of consumer services. Travel money demonstrates what's possible.

Ruffle increased roughly 5% in the fourth quarter compared to the prior year on a constant currency basis.

Speaker #2: In just a few years, we've grown from a few million dollars to over $100 million business. And we believe there's more to come.

We see this as a new normal for the industry and in the short term, we see this new and normal in the short term and we continue to look for ways to improve this improve in this environment.

Speaker #2: This illustrates the power of our brand, global footprint, and unique capabilities. Now, transitioning to Consumer Money Transfer, or CMT. For the full year, CMT adjusted revenue excluding Iraq was down 6%.

In the fourth quarter, our branded digital business, grew adjusted Revenue by 6% with a 13% increase in transactions.

This marks the ninth straight quarter of solid Revenue growth.

Speaker #2: While transactions excluding Iraq declined 1%. In the fourth quarter, CMT adjusted revenue declined 9% while CMT transactions declined 2%, driven by the slowdown in our retail business as industry conditions remain challenging throughout the quarter.

Our performance in this environment, reinforce our confidence in the Western Union brand.

Matt Cagwin: In just a few years, we've grown from a few million dollars to over $100 million business, and we believe there's more to come. This illustrates the power of our brand, global footprint, and unique capabilities. Now transitioning to consumer money transfer or CMT. For the full year, CMT Adjusted Revenue, excluding Iraq, was down 6%, while transactions excluding Iraq declined 1%. In Q4, CMT Adjusted Revenue declined 9%, while CMT transactions declined 2%, driven by the slowdown in our retail business as industry conditions remained challenging throughout the quarter. US immigration policies have continued to impact customer activity. These dynamics have been present for most of the year and remain a factor in our results in Q4. Customers continue to send fewer transactions, but with higher average principal per transaction.

We have also seen strong branded digital transactions across the globe underpinned, by the Middle East, APAC, and the Americas.

Count payout transactions continue. Their strong momentum growing over 30% in the quarter.

Speaker #2: U.S. immigration policies have continued to impact customer activity. These dynamics have been present for most of the year and remain a factor in our results in the fourth quarter.

For the full year, adjusted Revenue grew 6% and transactions grew. 12%.

Speaker #2: Customers continue to send fewer transactions, but with higher average principal per transaction. Our PPT increased roughly 5% in the fourth quarter compared to the prior year, on a constant currency basis.

Is Devon highlighted a big contributor of branded digital growth over the past. Couple of quarters has come from some of the new digital Partnerships in the Middle East.

These relationships have led to a substantial growth in transactions.

But a more muted growth in Revenue.

Speaker #2: We see this as a new normal. For the industry and in the short term, I'm sorry, we see this as a new normal in the short term, and we continue to look for ways to improve in this environment.

Is they are primarily account to account transactions, where Revenue per transaction is lower than our traditional Western Union licensed business.

This will likely cause a spread between transaction growth and revenue growth to remain elevated.

Speaker #2: In the fourth quarter, our branded digital business grew adjusted revenue by 6%, with a 13% increase in transactions. This marks the ninth straight quarter of solid revenue growth.

We are even likely to see an increase in transaction growth rate over the next couple quarters. As these partners are gaining real Traction in the market,

Speaker #2: Our performance in this environment reinforced our confidence in the Western Union brand. We've also seen strong branded digital transaction growth across the globe, underpinned by the Middle East, APAC, and the Americas.

Matt Cagwin: Our PPT roughly increased roughly 5% in the fourth quarter compared to the prior year on a constant currency basis. We see this as a new normal for the industry and in the short term. We see this as a new normal in the short term, and we continue to look for ways to improve this, improve in this environment. In the fourth quarter, our branded digital business grew adjusted revenue by 6%, with a 13% increase in transactions. This marks the ninth straight quarter of solid revenue growth. Our performance in this environment reinforce our confidence in the Western Union brand. We've also seen strong branded digital transaction growth across the globe, underpinned by the Middle East, APAC, and the Americas. Account Payout transactions continue their strong momentum, growing over 30% in the quarter.

Turning to our retail business overall. The performance of our retail business was similar in to Q3

On a transaction basis. In slightly worse, on our Revenue basis.

Speaker #2: Account payout transactions continue their strong momentum, growing over 30% in the quarter. For the full year, adjusted revenue grew 6%, and transactions grew 12%.

We will continue to see softness in North America. But from a growth rate perspective, North America transactions, improved a couple hundred basis points in the fourth quarter compared to the Third.

Although some of these improvements may have been pulled forward ahead of the new remittance tax.

Is it went into effect on January 1st?

Speaker #2: As Devin highlighted, a big contributor of branded digital growth over the past couple of quarters has come from some of the new digital partnerships in the Middle East.

APAC also improved in the fourth quarter from a revenue growth rate perspective, while Europe, Middle East and Locka. Slowed slightly

Speaker #2: These relationships have led to a substantial growth in transactions, but a more muted growth in revenue as they are primarily account-to-account transactions where revenue per transaction Union licensed business.

now turning to our cash flow and balance sheet in 2025, we generated 544 million dollars in operating cash flow compared to 406 million in the prior year period.

Speaker #2: This will likely cause a spread between transaction growth and revenue growth to remain elevated. We are even likely to see an increase in transaction growth rate over the next couple of quarters as these partners are gaining real traction in the market.

Including this year's number is approximately 220 million in cash, taxes. Paid related to the transition tax

Matt Cagwin: For the full year, Adjusted Revenue grew 6% and transactions grew 12%. As Devin highlighted, a big contributor of branded digital growth over the past couple of quarters has come from some of the new digital partnerships in the Middle East. These relationships have led to a substantial growth in transactions, but a more muted growth in revenue, as they are primarily account-to-account transactions, where revenue per transaction is lower than our traditional Western Union licensed business. This will likely cause a spread between transaction growth and revenue growth to remain elevated. We are even likely to see an increase in transaction growth rate over the next couple of quarters as these partners are gaining real traction in the market. Turning to our retail business. Overall, the performance in our retail business was similar to Q3 on a transaction basis and slightly worse on a revenue basis.

Speaker #2: Turning to our retail business, overall the performance on our retail business was similar to Q3. On a transaction basis, and slightly worse on a revenue basis.

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

Western Union continues to be a cash flow machine with adjusted free cash flow conversion.

Of over 100% for the past 3 years.

Speaker #2: We will continue to see softness in North America, but from a growth rate perspective, North America transactions improved a couple hundred basis points in the fourth quarter compared to the third.

In 2025, our capex was 151 million up 15% from the prior year?

Speaker #2: Although some of these improvements may have been pull forward ahead of the new remittance tax, as it went into effect on January 1st. APAC also improved in the fourth quarter from a revenue growth rate perspective while Europe, Middle East, and LACA slowed slightly.

capex increased slightly due to higher technology, infrastructure spend and a busy year in new agent wins in renewals which drove a slightly higher capex number

We expect capex to remain elevated in 2026. Due to the Strategic wins.

and the addition of intermex,

Speaker #2: Now turning to our cash flow and balance sheet. In 2025, we generated $544 million in operating cash flow, compared to $406 million in the prior year period.

Matt Cagwin: We will continue to see softness in North America, but from a growth rate perspective, North America transactions improved a couple hundred basis points in the fourth quarter compared to the third. Although some of these improvements may have been pulled forward ahead of the new remittance tax, as it went into effect on 1 January 2026. APAC also improved in the fourth quarter from a revenue growth rate perspective, while Europe, Middle East, and LACA slowed slightly. Now turning to our cash flow and balance sheet. In 2025, we generated $544 million in operating cash flow, compared to $406 million in the prior year period. Included in this year's number is approximately $220 million in cash taxes paid related to the transition tax....

we continue to maintain a strong balance sheet with cash and cash, equivalents of 1.2 billion dollars in debt of 2.9 billion.

Speaker #2: Included in this year's number is approximately $220 million in cash taxes paid related to the transition tax. We're excited to have these tax obligations behind us and look forward to the additional flexibility that we will have to invest our free cash flow in support of our business or to return to our owners.

Our leverage ratios were 2.9 times and 1.6 times on a gross and net basis, which we believe continues to provide us ample flexibility for Capital return or potential m&a while maintaining our investment grade credit rating.

Speaker #2: Western Union continues to be a cash flow machine, with adjusted free cash flow conversion of over 100% for the past three years. In 2025, our capex was $151 million, up 15% from the prior year.

Um, please report that in 2025 we returned more than 500 million to our owners with 305 million paid in dividends and 225 million used to repurchase shares.

Now, moving on to our 2026 Outlook, which assumes no material change in the macroeconomic conditions.

Speaker #2: Capex increased slightly due to higher technology infrastructure spend and a busy year in new agent wins and renewals, which drove a slightly higher capex number.

Our adjusted Revenue outlook for 2026 is for 6 to 9% Revenue growth. Inclusive of intermex, which we now expect to close in the second quarter of this year.

Matt Cagwin: We're excited to have these tax obligations behind us and look forward to the additional flexibility that we will have to invest our free cash flow in support of our business or to return it to our owners. Western Union continues to be a cash flow machine, with adjusted free cash flow conversion of over 100% for the past three years. In 2025, our CapEx was $151 million, up 15% from the prior year. CapEx increased slightly due to higher technology infrastructure spend and a busy year in new agent wins and renewals, which drove a slightly higher CapEx number. We expect CapEx to remain elevated in 2026 due to the strategic wins and the addition of Intermex.

Speaker #2: We expect capex to remain elevated in 2026 due to the strategic wins and the addition of Intermex. We continue to maintain a strong balance sheet with cash and cash equivalents of $1.2 billion and debt of $2.9 billion.

Our adjusted EPS for the full year, we believe will be between 1 and 75 cents to $1.85.

Requirement.

Speaker #2: Our leverage ratios were 2.9 times and 1.6 times on a gross and net basis, which we believe continues to provide us ample flexibility for capital return or potential M&A while maintaining our investment-grade credit rating.

This also assumes roughly a hundred million dollars of stock. We purchases for the full year, is we look to integrate intermex and potentially execute our robust m&a pipeline.

Speaker #2: I'm pleased to report that in 2025, we returned more than $500 million to our owners, with $305 million paid in dividends and $225 million used to repurchase shares.

We believe that EPS will accelerate as we go throughout the year, is our travel money, business is seasonal, and it has less fixed cost coverage in the first and fourth quarter of the year.

Speaker #2: Now, moving on to our 2026 outlook, which assumes no material change in the macroeconomic conditions. Our adjusted revenue outlook for 2026 is for 6 to 9 percent revenue growth, inclusive of Intermex, which we now expect to close in the second quarter of this year.

Matt Cagwin: We continue to maintain a strong balance sheet with cash and cash equivalents of $1.2 billion and debt of $2.9 billion. Our leverage ratios were 2.9 times and 1.6 times on a gross and net basis, which we believe continues to provide us ample flexibility for capital return or potential M&A while maintaining our investment-grade credit rating. I'm pleased to report that in 2025, we returned more than $500 million to our owners, with $305 million paid in dividends and $225 million used to repurchase shares. Now moving on to our 2026 outlook, which assumes no material changes in macroeconomic conditions.

In addition, some of our expense benefits related to incentives that hit in, q1 to 2025. Well, our later this year,

In both the benefits of our operational efficiency programs announced that the investor day as well as the benefits related to intermex integration will ramp as the year progresses.

Speaker #2: Our adjusted EPS for the full year, we believe, will be between $1.75 and $1.85. This includes higher interest expense as we look to refinance our existing notes coming to maturity in Q1, which are currently yielding 1.35%, to something closer to today's interest rate environment.

Thank you for joining the call and operator. We're ready to take questions.

We will pause momentarily to compile the Q&A roster as a reminder. Each person is allowed, 1 question with 1. Follow question. All participants will be in listen-only mode.

Speaker #2: This also assumes roughly a $100 million of stock repurchases for the full year as we look to integrate Intermex and potentially execute our robust M&A pipeline.

Matt Cagwin: Our adjusted revenue outlook for 2026 is for 6% to 9% revenue growth, inclusive of Intermex, which we now expect to close in Q2 of this year. Our adjusted EPS for the full year, we believe, will be between $1.75 to $1.85. This includes higher interest expense as we look to refinance our existing notes coming to maturity in Q1, which are currently yielding 1.35% to something closer to today's interest rate environment. This also assumes roughly $100 million of stock repurchases for the full year as we look to integrate Intermex and potentially execute our robust M&A pipeline.

Our first question comes to us from tension Huang at JP Morgan. Please go ahead.

Hi everyone. Good morning. Uh, thanks for calling through all of this. So I'm just trying to

Speaker #2: We believe that EPS will accelerate as we go throughout the year as our travel money business is seasonal and has less fixed cost coverage in the first and fourth quarter of the year.

think about to ask here. So maybe on the on the Outlook with just January and February trends that that you talked about. I'm curious how that

Speaker #2: In addition, some of our expense benefits related to incentives that hit in Q1 of 2025, while occur later this year. In both, the benefits of our operational efficiency programs announced at the investor day as well as the benefits related to Intermex integration will ramp as the year progresses.

informs your outlook in terms of what you learned it sounded like there's no real impact yet from the written text so far but you're monitoring.

What's happening across a lot of different countries, including Venezuela. So what's what's baked in in the Outlook, in terms of

Assumptions. And I'm very curious and what you're assuming for intermix in the Outlook, in terms of either contribution or

Speaker #2: Thank you for joining the call, and operator, we're ready to take questions.

Impact from from some of the trends that you're seeing in in early part of the year.

Speaker #1: 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.

Matt Cagwin: We believe that EPS will accelerate as we go throughout the year, as our travel money business is seasonal and has less fixed cost coverage in the first and fourth quarter of the year. In addition, some of our expense benefits related to incentives that hit in Q1 of 2025 will occur later this year. In both, the benefits of our operational efficiency programs announced at the Investor Day, as well as the benefits related to Intermex integration, will ramp as the year progresses. Thank you for joining the call, and operator, we're ready to take questions.

Hey, tingen thanks for joining the call, so early in the morning, um, no problem, a couple couple couple things here on your question. So we are 6 weeks into the year. We are seeing a Improvement relative to our Q4 performance 6 weeks into the year.

Speaker #1: Our first question comes to us from Tingchen Huang at JPMorgan. Please go ahead.

Is is, you know, we saw these slowdown in the Americas, in particular, the US uh, starting in the second quarter of last year. So we'll start to lap those. Uh, the harder counts. We have here in q1 as we get into q23

Speaker #3: Hi everyone, good morning. Thanks for going through all of this. So, I'm just trying to think about what to ask here. Maybe on the outlook, with just the January and February trends that you talked about, I'm curious how that informs your outlook in terms of what you learned.

Um, so all that will make the Continuum progress we've seen in the first couple of weeks, get even easier that you're Progressive.

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 Tinjin Huang at JP Morgan. Please go ahead.

Speaker #3: It sounded like there's no real impact yet from the remittance tax. So far, but you're monitoring what's happening across a lot of different countries, including Venezuela.

Speaker #3: So what's baked in the outlook in terms of assumptions? And I'm very curious on what you're assuming for Intermex in the outlook in terms of either contribution or impact from some of the trends that you're seeing in the early part of the year.

And then, as far as intermix concerns, uh, they have not published yet. So it's not fair for me to give their numbers. But you could imagine their North, their North America Centric business. So, the results are largely consistent with what you've seen. Both in our results today and largely consistent with what, uh, urine net published. Something in that line, will give you a good sense of where they are and we factored them into a Q2 close. So you can think about the middle quarter.

Middle 2q.

Got it and then just my follow-up. Then um,

Speaker #4: Hey, Tingchen. Thanks for joining the call so early in the morning.

Tien-Tsin Huang: Hi, everyone. Good morning. Thanks for going through all of this. So I'm just trying to take a look to ask here. So maybe on the outlook with just January and February trends that you talked about, I'm curious how that informs your outlook in terms of what you learned. It sounded like there's no real impact yet from the remittance tax so far, but you're monitoring what's happening across a lot of different countries, including Venezuela. So what's baked in the outlook in terms of assumptions? And I'm very curious on what you're assuming for Intermex in the outlook in terms of either contribution or impact from some of the trends that you're seeing in the early part of the year.

Speaker #3: No problem.

Speaker #4: A couple of things here on your question. So we are six weeks into the year. We are seeing an improvement relative to our Q4 performance six weeks into the year.

The the retail agent wins stood out to me it sounded like many were exclusive, Devon. You talked about 100 million incremental Revenue. Once fully ramped

um,

couple questions there. Just it sounds like there's a pipeline for more of these.

Speaker #4: As you know, we saw the slowdown in the Americas and particularly the US starting in the second quarter of last year. So we'll start to lap those the harder comps we have here in Q1 as we get into Q2, 3.

Deals. Given your, your distribution. Correct me if I'm wrong there and I'm curious. Is there anything to share on the cost for this exclusivity? And maybe the margin profile of these deals if there's anything different than what we've observed in the past.

Speaker #4: So all that will make the continued progress we've seen in the first couple of weeks get even easier as the year progresses. And then, as far as Intermex is concerned, they have not published yet—imagine their North America-centric business.

Matt Cagwin: Hey, Tinjin, thanks for joining the call so early in the morning.

Speaker #4: So their results are largely consistent with what you've seen both in our results today, and largely consistent with what your net published—something in that line.

Tien-Tsin Huang: No problem.

Matt Cagwin: A couple, couple of things here on your question. So we are six weeks into the year. We are seeing a improvement relative to our Q4 performance six weeks into the year. As you know, we saw the slowdown in the Americas, in particular the US, starting in the second quarter of last year. So we'll start to lap those, the harder comps we have here in Q1 as we get into Q2, Q3. So all that will make the continuing progress we've seen in the first couple of weeks get even easier as the year progresses. And then as far as Intermex concerns, they have not published yet, so it's not fair for me to give their numbers. But you could imagine-

Speaker #4: We'll give you a good sense of where they are. And we factored them into say Q2 close, so you can think about the middle of the quarter.

Thanks ding Jen. Um, we are excited about it. They are uh exclusive deals which is part of the Western Union brand and model with large strategic Partners. Um, we believe that these will be meaningful as they are, uh, largely competitive, takeaways. So, they benefit both our inbound and our outbound. So in the example of Canada, adding incremental d,

Speaker #3: Middle of Q2. Got it. And then, just on my follow-up, the retail agent wins stood out to me. It sounded like many were exclusive. Devin, you talked about $100 million incremental revenue once fully ramped.

Speaker #3: A couple of questions there. Just it sounds like there's a pipeline for more of these deals given your distribution correct me if I'm wrong there.

Speaker #3: And I'm curious, is there anything to share on the cost for this exclusivity, and maybe the margin profile of these deals, if there's anything different than what we've observed in the past?

Tien-Tsin Huang: Right.

Matt Cagwin: - their North, their North America-centric business, so their results are largely consistent with what you've seen, both in our results today and largely consistent with what, Euronet published. Something in that line will give you a good sense of where they are, and we factored them into, say, Q2 close, so think about the middle of the quarter.

Tien-Tsin Huang: Right.

Speaker #3: Thanks.

Speaker #4: Thanks, Tingchen. We are excited about it. They are. Exclusive deals, which is part of the strength of the model with large strategic partners. We believe that these will be meaningful as they are largely competitive takeaways.

Tien-Tsin Huang: Middle of Q2. Got it. And then just my follow-up then, the retail agent win stood out to me. It sounded like many were exclusive. Then, when you talked about $100 million incremental revenue, and once fully ramped. A couple questions there. Just it sounds like there's a pipeline for more of these deals, given your distribution. Correct me if I'm wrong there. And I'm curious, is there anything to share on the cost for this exclusivity and maybe the margin profile of these deals, if there's anything different than what we've observed in the past? Thanks.

Speaker #4: So they benefit both our inbound and our outbound. So in the example of Canada, adding incremental distribution this is similar to what we saw when we added the UK post.

Speaker #4: Adding incremental distribution, particularly in some of the less metropolitan areas, will increase inbound into Canada. We saw that also when we lost the Deutsche Post.

Great partners with great brands, in these markets uh Matt can talk about the economics but they are generally consistent with our overall branded large Network economics. So these are not deals that we bought. These are deals that we won based on uh strong value. Proposition good technology and great partnership.

Devin McGranahan: Thanks, Tien-Tsin. We are excited about it. They are exclusive deals, which is part of the strength of the Western Union brand and model with large strategic partners. We believe that these will be meaningful as they are largely competitive takeaways, so they benefit both our inbound and our outbound. So in the example of Canada, adding incremental distribution, this is similar to what we saw when we added the UK post. Adding incremental distribution, particularly in some of the less metropolitan areas, will increase inbound into Canada. We saw that also when we lost the Deutsche Post, again, which has great coverage in the non-urban areas, we saw inbound to Germany go down.

Speaker #4: Again, which has great coverage in the non-urban areas, we saw inbound to Germany go down. So for us, these kinds of networks not only benefit outbound in the country, but help our global model and our global footprint, because they provide important payout services in places where it's difficult to sustain an independent agent on money transfer remittance kind of revenue only.

Built on Devon's point for 2 things here. I think what is closing was. There's probably if you take away 2 takeaways on this, we alluded uh quarter ago or maybe 2 now about a pipeline building, these are the we knew these were well on the way at that time. Um, we put a lot of money into rebuilding our retail platform and having what we believe to be the gold standard now in the marketplace. So we believe this will be the first of many coming over the next 2 years. Um, and then from a margin standpoint, you should view this. Uh, 10gen is uh, it will contribute to our overall oi. So it's better than our oi.

Speaker #4: So we see them both as a network benefit overall, but also as great partners with great brands in these markets. Matt can talk about the economics, but they are generally consistent with our overall branded large network economics.

The, um, the other thing to engine in my tenure, it's, it's great to talk about adding, uh, so that instead of talking about losing, so, it's a, it's a great transition for us.

Our next question is from, Darren Peller at Wolf research. Please ask your question.

Speaker #4: So these are not deals that we bought. These are deals that we won based on strong value proposition, good technology, and great partnership.

Hey guys. Thanks. Um can we touch on the digital transaction growth for a moment? I mean I know

Speaker #3: Let's build on Devin's point for two things here. I think what he's closing with is there's probably—if you take away two takeaways on this—we alluded a quarter ago or maybe two now about a pipeline building, that we knew these were well on the way at that time.

Devin McGranahan: So for us, these kinds of networks not only benefit outbound in the country, but help our global model and our global footprint because they provide important payout services in places where it's difficult to sustain an independent agent on, you know, money transfer, remittance, kind of revenue only. So we see them both as a network benefit overall, but also as great partners with great brands in these markets. Matt can talk about the economics, but they are generally consistent with our overall branded large network economics. So these are not deals that we bought. These are deals that we won based on strong value proposition, good technology, and great partnership.

Speaker #3: We put a lot of money into rebuilding our retail platform and have what we believe to be the gold standard now in the marketplace.

Speaker #3: So we believe this will be the first of many coming over the next two years. And then from a margin standpoint, you should view this, Tingchen, as it will contribute to our overall OI.

It's good to see the 13%, and I know that, um, you wanted to see that even accelerate over the to the mid teens over time. But we're also, I guess a, I'd like to hear more about your view of what you're doing there to keep that sustainably in that radar better, uh, and your conviction around that. But I'd also love to hear more about the spread, I know what the investor did. We talked about that spread, narrowing a bit you touched on that earlier, in the prepared remarks. So, maybe just revisit that again, if you don't mind. I mean, what should we expect on the spread between the transaction rather than the revenue growth rate there and what's, what's driving? The spread now, just a little

Speaker #3: So, it's better than our OI.

Speaker #4: The other thing, Tingchen, in my tenure, it's great to talk about adding, so that instead of talking about losing. So it's a great transition for us.

Later, thanks again, guys. So Darren let me take the transaction and the potential for acceleration and then I'll let Matt, uh, take the spread question, by the way. Thanks for joining in early. In the morning.

Matt Cagwin: Let's build on Devin's point for two things here. I think what his closing was there is probably if you take away two takeaways on this: we alluded a quarter ago or maybe two now, about a pipeline building. We knew these were well on the way at that time. We put a lot of money into rebuilding our retail platform and having what we believe to be the gold standard now in the marketplace. So we believe this will be the first of many coming over the next two years. And then from a margin standpoint, you should view this tension as it will contribute to our overall OI, so it's better than our OI.

Speaker #1: Our next question is from Darren Peller at Wolf Research. Please ask your question.

Speaker #5: Hey, guys. Thanks. Can we touch on the digital transaction growth for a moment? I mean, I know it's good to see the 13%, and I know that you wanted to see that even accelerate over to the mid-teens over time.

Speaker #5: But also, I guess A, I'd like to hear more about your view of what you're doing there to keep that sustainably in that rate or better.

Speaker #5: And your conviction around that. But I'd also love to hear more about the spread. I know that at the investor day we talked about that spread narrowing a bit.

We um, you know, we see Market opportunities. So we are excited about our business. Now in the Middle East, for many years, we had a tougher, Middle Eastern product and platform and strategy. Uh, licensing is tough in those markets. And so we went to Market, you know, with a model, we called the digital Master agent uh which was really 1 of our retail agents uh partnering with us to try to do digital. We still have that model but we've expanded our model again with the improvements. In our technology, platform to be a bit more partner aligned with some of

Devin McGranahan: The other thing, Tinjin, in my tenure, it's great to talk about adding, so that instead of talking about losing. So it's a great transition for us.

Speaker #5: You touched on that earlier in the prepared remarks. So maybe just revisit that again if you don't mind. I mean, what should we expect on the spread between the transaction growth and the revenue growth rate there?

The larger digital players who have amassed, uh, critical. Uh,

Speaker #5: And what's driving the spread now just a little bit wider? Thanks again, guys.

Operator: Our next question is from Darrin Peller at Wolfe Research. Please ask your question.

Speaker #4: So, Darren, let me take the transaction and the potential for acceleration, and then I'll let Matt take the spread question. By the way, thanks for joining early in the morning.

Darrin Peller: Hey, guys, thanks. Can we touch on the digital transaction growth for a moment? I mean, I know it, it's good to see the 13%, and I know that, you wanted to see that even accelerate over the, to the mid-teens over time. But also, and I guess, A, I'd like to hear more about your view of what you're doing there to keep that sustainably in that rate or better, and your conviction around that. But I'd also love to hear more about the spread. I know at the Investor Day, we talked about that spread narrowing a bit. You touched on that earlier in your prepared remarks. So maybe just revisit that again, if you don't mind. I mean, what should we expect on the spread between the transaction growth and the revenue growth rate there?

Speaker #4: We see market opportunities, so we are excited about our business now in the Middle East. For many years, we had a tougher Middle Eastern product and platform and strategy.

Speaker #4: Licensing is tough in those markets. And so we went to market with a model we called the Digital Master Agent, which was really one of our retail agents partnering with us to try to do digital.

Speaker #4: We still have that model, but we've expanded our model again with the improvements in our technology platform to be a bit more partner-aligned with some of the larger digital players who have amassed critical mass of customers in that region across a wide range of products—telecommunication, financial services.

Darrin Peller: What's driving the spread now just a little bit wider? Thanks again, guys.

Devin McGranahan: So Darrin, let me take the transaction and the potential for acceleration, and then I'll let Matt take the spread question. By the way, thanks for joining early in the morning. You know, we see market opportunity, so we are excited about our business now in the Middle East. For many years, we had a tougher Middle Eastern product, platform, and strategy. Licensing is tough in those markets, and so we went to market, you know, with a model we called the Digital Master Agent, which was really one of our retail agents partnering with us to try to do digital.

Uh, mass of customers in that region across a wide range of products, telecommunication financial services. And so it's opening up for us, a market opportunity, and a customer base that we had trouble accessing in our old, digital Master agent model in the region, so we see potential there to accelerate. We also see regions in the world, uh, like in Europe where we believe, you know, we are underperforming the market and that, uh, with some changes in the approach model leadership. Uh, we'd like to see some acceleration there. Which again, would be additive to the current results that we're pushing. I'll let Matt talked about the Gap. Hey, good morning, Darren. We actually alluded to this last quarter, our Q3. As we were ramping, these Partners at the the Gap would be wider for the year of the ramp at, um, Devon. Also had in the prepared remarks minute ago, we've seen our new customer and our non-m Middle Eastern business. Uh, growth narrow a little bit Flatline. Uh, we are working hard on.

Speaker #4: And so, it's opening up for us a market opportunity and a customer base that we had trouble accessing in our old digital master agent model in the region.

Speaker #4: So we see potential there to accelerate. We also see regions in the world, like in Europe, where we believe we are underperforming the market, and that with some changes in the approach, model, and leadership, we'd like to see some acceleration there—which again would be additive to the current results that we're publishing.

That to get it back, that will get the core non- Middle East to accelerate and narrow the Gap. But is the Middle East is contributing to this, it is what's causing the widening. Uh, the other thing is, you know, is we, we launched the program. I guess it's been about 2 3 years ago, um, where we did the uh new go to market strategy. Is that happen? We saw each region we went to accelerate and grow um

In the last part of that really is the Middle East where we're doing, it through Partners, so and then they come at lower rpts.

Devin McGranahan: We still have that model, but we've expanded our model again with the improvements in our technology platform to be a bit more partner-aligned with some of the larger digital players who have amassed a critical mass of customers in that region across a wide range of products, telecommunication, financial services. And so it's opening up for us a market opportunity and a customer base that we had trouble accessing in our old Digital Master Agent model in the region. So we see potential there to accelerate. We also see regions in the world, like in Europe, where we believe, you know, we are underperforming the market, and that, with some changes in the approach, model, leadership, we'd like to see some acceleration there, which again, would be additive to the current results that we're publishing. I'll let Matt talk about the gap.

Speaker #4: I'll let Matt talk about the gap.

Okay. All right. That's helpful guys. Quick quick followup would just be your comments around what you're seeing with with regard to the corridors impacted by migration policies in the US.

Speaker #3: Hey, good morning, Darren. We actually alluded to this last quarter in our Q3, as we were ramping these partners, that the gap would be wider for the year as we ramp it.

Speaker #3: Devin also had in the prepared remarks a minute ago, we've seen our new customer and our non-Middle Eastern business growth narrow a little bit, flatline.

Speaker #3: We are working hard on that to get it back. That will get the core non-Middle East to accelerate and narrow the gap. But as the Middle East is contributing to this, it is what's causing the widening.

Speaker #3: The other thing is, you know, is we launched the program—I guess it's been now two, three years ago—where we did the new go-to-market strategy.

Speaker #3: As that happened, we saw each region we went to accelerate and grow. In the last part of that, really, is the Middle East where we're doing it through partners.

Speaker #3: So, and then they come in at lower RPTs.

Matt Cagwin: Hey, good morning, Darrin. We actually alluded to this last quarter in our Q3 as we were ramping these partners, that the gap would be wider for the year as we ramp it. Devin also had in the prepared remarks a minute ago. We've seen our new customer in our non-Middle East business growth narrow a little bit, flatline. We are working hard on that to get it back. That will get the core non-Middle East to accelerate and narrow the gap, but as the Middle East is contributing to this, it is what's causing the widening. The other thing, as you know, is we launched the program, I guess, been now two, three years ago, where we did the new go-to-market strategy.

Speaker #5: Okay. All right. That's helpful. Guys, quick follow-up would just be your comments around what you're seeing with regard to the corridors impacted by migration policies in the US.

Speaker #5: I'm just I want to make sure I understand it. Are you saying that it's gotten to a point where you think it's now stable?

Speaker #5: Maybe it's a little bit better. We see a new norm. Mexico, for example, was stabilizing. I mean, I know it's pressuring transaction, especially on the retail side.

Speaker #5: But do you think we're at a new steady state now or I'm just curious what you're seeing in the data?

Speaker #4: Yeah. So this summer was pretty dramatic; bank to Mexico data was negative in 2020 for the first time, Darren, in over a decade.

To Mexico data was negative uh, in 2020 for 5 for the first time Darren and over a decade. Um, and so you know, it's a tough situation and it's an important Corridor uh, for us, uh, given its relative size and so we pay a lot of attention to that we did see it turn positive at the end of the year and we've continuing to see some reasonable Trends. Uh, in the first part of this year that's had. It does. As evidenced on the chart jump up and down October was starting to head in the right direction. And in November fell off a cliff December came back pretty well. Um, so we think that is moving directionally in the right direction and now we have, you know, a couple of months in a row that look a little bit better, it's not where it was, you know, historically, it's growing, you know, mid teens month, over month, quarter over a quarter year over year, but at least it's not descending at Mid teens. Uh, like it was in the summer months.

Matt Cagwin: As that happened, we saw each region we went to accelerate and grow in the last part of that, really the Middle East, where we're doing through partners. So, and then they come in at lower RPTs.

Speaker #4: And so it's a tough situation. And it's an important corridor for us given its relative size. And so we pay a lot of attention to that.

Darrin Peller: Okay. All right. That's helpful. Guys, quick, quick follow-up would just be your comments around what you're seeing with regard to the corridors impacted by migration policies in the US. I'm just—I want to make sure I understand it. Are you saying that it's gotten to a point where you think it's now stable, maybe it's a little bit better, we see a new norm? Mexico, for example, was stabilizing. I mean, I know it's pressuring transaction, especially on the retail side, but do you think we're at a new steady state now, or I'm just curious what you're seeing in the data.

Speaker #4: We did see it turn positive at the end of the year. And we've continuing to see some reasonable trends in the first part of this year.

Speaker #4: That said, it does as evidenced on the chart jump up and down. October was starting to head in the right direction. And then November fell off a cliff.

The rest of the locker regions, it's becoming a bit mixed, right? And so we see certain markets like Nicaragua where we're still, you know, seeing reasonably, you know, low performance and others that are starting to stabilize and in some cases uh, even begin to grow again, uh, like to Guatemala. So uh, I think we're seeing stability but again, as I said in the prepared, comments, any given day in election or a geopolitical change, can happen that disrupts the region again for another

Other 3 to 6 months.

Right. Makes sense. All right, thanks guys.

Speaker #4: December came back pretty well. So we think that is moving directionally in the right direction. And now we have a couple of months in a row that look a little bit better.

Our next question comes to us from will Nance at Goldman Sachs. Please go ahead.

Devin McGranahan: Yeah. So we—you know, the summer was pretty dramatic. Banco de México data was negative in 2025, for the first time, Darrin, in over a decade. And so, you know, it's a tough situation, and it's an important corridor for us, given its relative size. And so we pay a lot of attention to that. We did see it turn positive at the end of the year, and we've continuing to see some reasonable trends in the first part of this year. That said, it does, as evidenced on the chart, jump up and down. October was starting to head in the right direction, and then November fell off a cliff. December came back pretty well.

Speaker #4: It's not where it was. Historically, it's growing mid-teens, month over month, quarter over quarter, year over year. But at least it's not descending at mid-teens like it was in the summer months.

Speaker #4: The rest of the locker regions—it's becoming a bit mixed, right? And so we see certain markets like Nicaragua, where we're still seeing reasonably low performance.

Speaker #4: And others that are starting to stabilize, and in some cases, even begin to grow again—like Guatemala. So, I think we're seeing stability.

Speaker #4: But again, as I said in the prepared comments, on any given day, an election or a geopolitical change can happen. That disrupts the region again for another three to six months.

Hey guys, thank you for taking the question. Uh, I I want to just ask the digital, uh, question of slightly different way. I mean, it's it sounds. I totally hear you on the Middle East and some of the makeshift Dynamics. You're expecting around the spread, just relative to the revenue growth rate that you just saw when you put all the moving pieces in a blender, like how are you thinking about absolute levels of digital Revenue growth over the course of the year? And then, uh, I'll just ask the second question. Uh, now, but I was wondering if you could put a finer point on the imxi revenue assumptions assumed in the guide uh, for the closing just so we can kind of chew up the models ahead of the clothes. Thank you.

Devin McGranahan: So we think that is moving directionally in the right direction, and now we have, you know, a couple of months in a row that look a little bit better. It's not where it was. You know, historically, it's grown, you know, mid-teens month-over-month, quarter-over-quarter, year-over-year, but at least it's not descending at mid-teens like it was in the summer months. The rest of the LACA regions, it's becoming a bit mixed, right? And so we see certain markets like Nicaragua, where we're still, you know, seeing reasonably, you know, low performance, and others that are starting to stabilize and in some cases even begin to grow again like Guatemala. So I think we're seeing stability.

Speaker #5: Right. Makes sense. All right. Thanks, guys.

Speaker #1: Our next question comes to us from Will Nance at Goldman Sachs. Please go ahead.

Speaker #5: Hey, guys. Thank you for taking the question. I wanted to just ask the digital question a slightly different way. I mean, it sounds—I totally hear you on the Middle East.

Speaker #5: And some of the makeshift dynamics you're expecting around the spread—just relative to the revenue growth rate that you just saw, when you put all the moving pieces in a blender—how are you thinking about absolute levels of digital revenue growth over the course of the year?

Hey, Will good morning, uh, I spoke with those 2 talk questions together, so on the Branded digital side. What are we expecting? What's built into the guide? Uh, We've now had 2 years of mids, single digit growth. We have built into our guide, a modest Improvement in that we think there's meaningful Improvement opportunity but our guide includes includes a very modest Improvement. Um, driven by we think we're going to continue to accelerate the Middle East and we think we can revigor our growth rates for new customers and many other markets.

Speaker #5: And then I'll just ask the second question now. But I was wondering if you could put a finer point on the IMXI revenue assumptions assumed in the guide.

Devin McGranahan: But again, as I said in the prepared comments, any given day, an election or a geopolitical change can happen that disrupts the region again for another 3 to 6 months.

On the internet side, we have built into our model, a, um, Q2 close. As I talked about, with Tangent a minute ago, you can view that as something closer to the middle. And we've assumed a growth rate is cam commensurate with our North America or Ria.

North America, business growth rates, you can look at industry growth rates for that.

Speaker #5: For the closing, just so we can kind of chew up the models ahead of the close. Thank you.

Got it. Appreciate you. Taking the questions.

Speaker #3: Hey, Will. Good morning. I'll split those two questions together. So, on the branded digital side, what are we expecting? What's built into the guide?

Tien-Tsin Huang: Right. Makes sense. All right. Thanks, guys.

Operator: Our next question comes to us from Will Nance at Goldman Sachs. Please go ahead.

Our next question comes to us from Raina Kumar at Oppenheimer, please go ahead.

Speaker #3: We've now had two years of mid-single digit growth. We have built into our guide a modest improvement in that. We think there's meaningful improvement opportunity.

Will Nance: Hey, guys, thank you for taking the question. I wanted to ask the digital question a slightly different way. I mean, it sounds. I totally hear you on the Middle East and some of the mix shift dynamics you're expecting around the spread. Just relative to the revenue growth rate that you just saw when you put all the moving pieces in a blender, like, how are you thinking about absolute levels of digital revenue growth over the course of the year? And then, I'll just ask a second question now, but I was wondering if you could put a finer point on the IMXI revenue assumptions assumed in the guide for the closing, just so we can kind of true up the models ahead of the close. Thank you.

Speaker #3: But our guide includes a very modest improvement. Driven by—we think we're going to continue to accelerate in the Middle East. And we think we can revigorate our growth rates for new customers in many other markets.

Speaker #3: On the Intermex side, we have built into our model a Q2 close, as I talked about with Tension a minute ago. You can view that as something closer to the middle.

Speaker #3: And we've assumed a growth rate is commensurate with our North America or RIA's North America business growth rate. So you can look at industry growth rates for that.

Good morning. Thanks for taking my question. Um so I also want to ask about interex. I think you guys put out a 10 cents um, a share accretion number for the first year. Do you still expect to hit that Target with intermex? And um, I'll ask my follow-up as well. Um, you um, have some nice commentary on this, the Partnerships and products you're adding with stable coin. I'm wondering if you're actually starting to see some demand from consumers to send stable coin and um, are, are they utilizing the on and off uh ramp thing. Um, for stable coin, thank you.

I did the first few days ago,

Matt Cagwin: Hey, Will, good morning. Let's split those two top questions together. So on the branded digital side, what are we expecting? What's built into the guide? We've now had two years of mid-single-digit growth. We have built into our guide a modest improvement in that. We think there's meaningful improvement opportunity, but our guide includes a very modest improvement, driven by we think we're going to continue to accelerate in the Middle East, and we think we can reinvigorate our growth rates for new customers in many other markets. On the Intermex side, we have built into our model a Q2 close. As I talked about with Tinjin a minute ago, you can view that as something closer to the middle, and we've assumed a growth rate commensurate with our North America or Ria's North America business growth rates.

Speaker #5: Got it. Appreciate the questions.

Speaker #1: Our next question comes to us from Reena Kumar at Oppenheimer. Please go ahead.

Speaker #6: Good morning. Thanks for taking my question. I also want to ask about Intermex. I think you guys put out a $0.10 a share accretion number for the first year.

Speaker #6: Do you still expect to hit that target with Intermex? And I'll ask my follow-up as well. You had some nice commentary on just the partnerships and products you're adding with Stablecoin.

Speaker #6: I'm wondering if we're actually starting to see some demand from consumers to send stablecoin. And are they utilizing the on-and-off ramping for stablecoin? Thank you.

Regulatory things ago.

Matt Cagwin: You can look at industry growth rates for that.

Speaker #3: Let's do the first year. Hey, Reena, thanks for joining the call today. Two-year, first question on Intermex. When we had the announcement latter part of—or middle—last year, what we had indicated at the time was a 10 cent from a first full year.

Will Nance: Got it. Appreciate the other questions.

With the deal coming. A few months earlier, it will be a creative this year. It's in our dollar 75 to Dollar 85, uh, but the 10s, you should view more as a 2020, uh, 7 activity for us as we get the benefits of all the synergies that we're working on.

Operator: Our next question comes to us from Raina Kumar at Oppenheimer. Please go ahead.

Speaker #3: And our thought process there is, we need some time for integration. There’s a meaningful amount of synergies that we are confident we can go get.

Devin McGranahan: Good morning. Thanks for taking my question. So I also want to ask about Intermex. I think you guys put out a $0.10 a share accretion number for the first year. Do you still expect to hit that target with Intermex? And, I'll ask my follow-up as well. You had some nice commentary on just the partnerships and products you're adding with Stablecoin. I'm wondering if we're actually starting to see some demand from consumers to spend Stablecoin, and, are they utilizing the on and off ramping for Stablecoin? Thank you.

Speaker #3: We're more confident today in those synergies than we were when we signed the deal because we've had a lot of time to do some integration planning.

And let me try to take the stable coin question. Um, as you remember from investor day and in the prepared comments, we are most bullish on. The use of stable coins to create efficiency in the global movement of money, particularly between us and our partners, uh, to increase speed.

Speaker #3: The deal is coming a few months earlier than we thought right now. Subject to regulatory approvals, there are still a few states that need to get approved, and one country.

Allow us to move money, 24 by 7.

Speaker #3: From a change of licenses, all the competition stuff of material substances is done. But there are a few more lingering regulatory things to go. With the deal coming a few months earlier, it will be accretive this year.

Speaker #3: It's in our $0.75 to $0.85. But the 10 cents you should view more as a 2024-7 activity for us as we get the benefits of all the synergies that we're working on.

Matt Cagwin: Hey, Raina, thanks for joining the call today. To your first question on Intermex, when we had the announcement, latter part of last or middle of last year, what we had indicated at the time was a $0.10 accretion in the first full year. And our thought process there is we need some time for integration. There's a meaningful amount of synergies that we are confident we can go get. We're more confident today in those synergies than we were when we signed the deal, because we've had a lot of time to do some integration planning. The deal is coming a few months earlier than we thought right now, subject to regulatory approvals. There's still a few states that get approved and one country from a change of licenses.

Speaker #1: And let me try to take the stablecoin question. As you remember from Investor Day and in the prepared comments, we are most bullish on the use of stablecoins to create efficiency in the global movement of money, particularly between us and our partners.

In for Matt to get Capital efficiency uh out of that process. Uh I also talked about launching the stable card which we believe doesn't require senders to necessarily choose to open a digital asset wallet. Uh buy a stable coin, send a stable coin. Uh it will enable a traditional retail or digital sender uh to have their customer receive a stable coin, based asset in the stable card which we believe has value in our remittance countries for allowing the receiver to have more control over exchange rates and the ability to hold a US dollar denominated assets. We have not seen strong market demand from our sender base clamoring uh to send money via stable coin.

Speaker #1: To increase speed, allow us to move money 24/7. Informat to get capital efficiency out of that process. I also talked about launching the stable card.

Uh, we have however seen and we believe that this is a market opportunity for us. Uh,

Speaker #1: Which we believe doesn't require senders to necessarily choose to open a digital asset wallet. Buy a Stablecoin. Send a Stablecoin. It will enable a traditional retail or digital sender to have their customer receive a Stablecoin-based asset in the stable card, which we believe has value in our remittance countries for allowing the receiver to have more control over exchange rates.

Matt Cagwin: All the competition stuff of material substance is done, but there is a few more lingering regulatory things to go. With the deal coming a few months earlier, it will be accretive this year. It's in our $1.75 to $1.85, but the $0.10, you should view more as a 2027 activity for us as we get the benefits of all the synergies that we're working on.

Devin McGranahan: Let me try to take the stablecoin question. As you remember from Investor Day and in the prepared comments, we are most bullish on the use of stablecoins to create efficiency in the global movement of money, particularly between us and our partners, to increase speed, allow us to move money 24/7, and for Matt to get capital efficiency out of that process. I also talked about launching the stable card, which we believe doesn't require senders to necessarily choose to open a digital asset wallet, buy a stablecoin, send a stablecoin.

Speaker #1: And the ability to hold a US dollar-denominated asset. We have not seen strong market demand from our senders clamoring to send money via stablecoin.

people who already have customer bases with digital asset wallets, uh, are looking for ways to exchange those digital assets back into Fiat currencies. And so what we've talked about is our digital asset Network and we continue to sign Partnerships uh with existing uh digital asset players who own digital assets while it's in customer bases. Looking for those on-ramps and off-ramps. And so that's a another part of our digital asset strategy that's coming along and I will talk about more about that on the next earnings call.

Our next question is from Timothy Kyoto at UBS.

Please ask your question.

Speaker #1: We have, however, seen—and we believe—that this is a market opportunity for us. People who already have customer bases with digital asset wallets are looking for ways to exchange those digital assets back into fiat currencies.

Speaker #1: And so what we've talked about is our digital asset network. And we continue to sign partnerships with existing digital asset players who own digital asset wallets and customer bases.

Devin McGranahan: It will enable a traditional retail or digital sender to have their customer receive a Stablecoin-based asset in the stable card, which we believe has value in our remittance countries for allowing the receiver to have more control over exchange rates and the ability to hold a US dollar-denominated assets. We have not seen strong market demand from our sender base clamoring to send money via Stablecoin. We have, however, seen, and we believe that this is a market opportunity for us, people who already have customer bases with digital asset wallets are looking for ways to exchange those digital assets back into fiat currencies. And so what we've talked about is our digital asset network, and we continue to sign partnerships with existing digital asset players who own digital asset wallets and customer bases, looking for those on-ramps and off-ramps.

Great. Thanks a lot. So you mentioned a few times now around some flattening of your customer acquisition Trends outside of the Middle East. I was hoping you could dig into this a little bit more on 2 levels. 1 is a recap of some of the initiatives that you have to address that flattening but also, what do you think in the competitive environment, whether it's around advertising spend or promotions or other initiatives, that might be impacting that, uh, that flattening of the customer acquisition that you mentioned. Thanks a lot.

Speaker #1: Looking for those on-ramps and off-ramps. And so that's another part of our digital asset strategy that's coming along. And I will talk about more about that on the next earnings call.

Thanks. Great question. Um, I think there are 2 things uh that have transpired over the course of call at the last 12 to 18 months. Um the market for

Speaker #1: Our next question is from Timothy Kyoto at UBS. Please ask your question.

Speaker #5: Great, thanks a lot. So, you mentioned a few times now some flattening of your customer acquisition trends outside of the Middle East. I was hoping you could dig into this a little bit more on two levels.

Speaker #5: One, is a recap of some of the initiatives that you have to address that flattening. But also, what are you seeing in the competitive environment—whether it's around advertising spend, or promotions, or other initiatives—that might be impacting that flattening of customer acquisition that you mentioned?

Speaker #5: Thanks a lot.

Speaker #1: Thanks. Great question. I think there are two things that have transpired over the course of, call it, the last 12 to 18 months. The market for value propositions for new customer acquisitions has gotten increasingly competitive.

Devin McGranahan: That's another part of our digital asset strategy that's coming along, and I will talk about more about that on the next earnings call.

Speaker #1: As global macro forces have put pressure, particularly on lower-scale players, you're seeing increasingly aggressive new customer offers. And so, one of the things that we're evaluating is how do we compete with that and still maintain our rigor in terms of our ability to have the high returns on acquisition cost to lifetime value.

Value propositions for new customer. Acquisitions has gotten increasingly competitive. Um, AS Global macro forces have uh, put pressure particularly on uh lower scale. Players, you're seeing aggressive, increasingly aggressive, new customer, uh, offers. Um, and so 1 of the things that we're evaluating is how do we compete with that and still maintain our rigor, in terms of uh our ability to uh have the high Returns on uh acquisition costs to lifetime value. And so we're looking at how some of our models work and how we are going to go to market to compete with these more aggressive, new customer acquisition offers. The second thing that we're seeing is as, um, search is changing and a gentic Ai. And how people go to market. The traditional model of, you know, buying lots of space on, uh, Google or in the Apple Store.

Operator: Our next question is from Timothy Chiodo at UBS. Please ask your question.

Timothy Chiodo: Great, thanks a lot. So you mentioned a few times now around some flattening of your customer acquisition trends outside of the Middle East. I was hoping you could dig into this a little bit more on two levels. One is a recap of some of the initiatives that you have to address that flattening. But also, what are you seeing in the competitive environment, whether it's around advertising spend or promotions, or other initiatives that might be impacting that, that flattening of customer acquisition that you mentioned? Thanks a lot.

Is a shifting, uh, landscape. Now, in terms of how you gain access to customers and where those customers are actually, uh, shopping and looking for, uh, opportunities to send money. And so we are shifting our go to market strategy, uh, to align better with the kind of emerging landscape, uh, for Digital customer acquisition.

Speaker #1: And so we're looking at how some of our models work and how we are going to go to market to compete with these more aggressive new customer acquisition offers.

Our next question comes to us from James faucet at Morgan Stanley. Please ask your question.

Speaker #1: The second thing that we're seeing is as search is changing and agentic AI and how people go to market, the traditional model of buying lots of space on Google or in the Apple Store is a shifting landscape now in terms of how you gain access to customers.

Devin McGranahan: Thanks. Great question. I think there are two things that have transpired over the course of, call it, the last 12 to 18 months. The market for value propositions for new customer acquisitions has gotten increasingly competitive. As global macro forces have put pressure, particularly on lower scale players, you're seeing increasingly aggressive new customer offers. And so one of the things that we're evaluating is how do we compete with that and still maintain our rigor in terms of our ability to have the high returns on acquisition costs to lifetime value? And so we're looking at how some of our models work and how we are gonna go to market to compete with these more aggressive new customer acquisition offers.

Speaker #1: And where those customers are actually shopping and looking for opportunities to send money. And so we are shifting our go-to-market strategy to align better with the kind of emerging landscape for digital customer acquisition.

2025, how do you think about, like what are the kind of primary drivers there? And and just trying to think about the things that you're looking at to extrapolate out for the rest of this year. Um, especially given the the month-to-month volatility,

Great question. And I think the month-to-month volatility has, um,

Speaker #1: Our next question comes to us from James Fawcett at Morgan Stanley. Please ask your question.

Speaker #6: Thank you very much. I appreciate all the details and color here. I wanted to follow up a little bit just on recent trends. As you mentioned, a lot of volatility in the latter months of 2025.

Devin McGranahan: The second thing that we're seeing is, as search is changing and agentic AI and how people go to market, the traditional model of, you know, buying lots of space on Google or in the App Store, is a shifting landscape now in terms of how you gain access to customers and where those customers are actually shopping and looking for opportunities to send money. And so we are shifting our go-to-market strategy to align better with the kind of emerging landscape for digital customer acquisition.

Caused us to have a much more Dynamic operating model. So um, historically, this was a relatively predictable, calendar driven holiday driven paycheck driven business, uh and many of us have publicly said that, you know, we could pretty much tell you what the next, you know.

Speaker #6: How do you think about what are the kind of primary drivers there? And just trying to think about the things that you're looking at to extrapolate out for the rest of this year.

Speaker #6: Especially given the month-to-month volatility.

Speaker #5: Great question. I think the month-to-month volatility has caused us to have a much more dynamic operating model. So historically, this was a relatively predictable calendar-driven holiday-driven paycheck-driven business.

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

Speaker #5: And many of us have publicly said that we could pretty much tell you what the next week, month, quarter was based on trends and the calendar.

Week month quarter was based on Trends and the calendar. Um, with some of this more dynamism in terms of the uh landscape. Uh, we have to be a lot more agile, recognizing where the trends are moving uh and shifting both our approach to go to market. Uh but also in some cases, our model for agent incentives and or for marketing dollars, uh, to recognize where the strengths are and start to quickly address where we're seeing, uh, Market change is uh, on a much more Dynamic basis, but you know, it has become the new normal for us. And so we are doing the best uh we can in this new normal to adjust our operating model uh to a more

Dynamic approach to dealing with it.

James Faucette: Thank you very much. Appreciate all, all the details and color here. I wanted to follow up a little bit just on recent trends. As you mentioned, a lot of volatility in the latter months of 2025. How do you think about, like, what are the kind of primary drivers there? And just trying to think about the things that you're looking at to extrapolate out for the rest of this year, especially given the month-to-month volatility.

Is if I can just say 1 step back the building on Devon's, the Devon's answer. Um,

Speaker #5: With some of this more dynamicism in terms of the landscape, we have to be a lot more agile, recognizing where the trends are moving.

Speaker #5: And shifting both our approach to go-to-market, but also in some cases, our model for agent incentives and/or for marketing dollars to recognize where the strengths are.

You, you, you have to keep in mind, the fact that we are Global, we're in 200 countries, so we do have some puts and takes uh the conversation we're having right now is a few countries in Latin America, us and Mexico, which has been up and down over the last 6 to 9 months holistically. It's been very similar across the US. The Latin America Corridor starting in Q2 last year. So we will start to lap that as we get into the second quarter and start having easier comps.

Devin McGranahan: Great question. I think the month-to-month volatility has caused us to have a much more dynamic operating model. So, historically, this was a relatively predictable, calendar-driven, holiday-driven, paycheck-driven business. And many of us have publicly said that, you know, we could pretty much tell you what the next, you know, week, month, quarter was based on trends and the calendar. With some of this more dynamicism in terms of the landscape, we have to be a lot more agile, recognizing where the trends are moving, and shifting both our approach to go to market, but also, in some cases, our model for agent incentives and/or for marketing dollars, to recognize where the strengths are and start to quickly address where we're seeing market-

Um so any given markets, volatile the economy as a whole to go step down in Q2 for this industry. Um and we will start to lap that as we get into the second quarter.

Appreciate the the the Nuance there in color just want to ask quickly um to to if you could compare and contrast a little bit around the European.

Retail versus US business. And in, in particular, I'm trying to get a sense from you. How you think about what

Uh realistic time frame is to transition the US model to to look more like Europe and and maybe more importantly. At least for me in modeling purposes. What investment is going to be required? Thanks. Yeah. Thank you for the question. Um important uh impetus to transforming the US model uh as we've talked about publicly uh is the clothes.

And then the integration of intermax into Western Union. Uh, the intermax model as we've said publicly is very similar to our European model uh with a much more tactical location based strategy that relies on um kind of agent level and Corridor level uh activities and strategies. And so with the uh,

A little bit of acceleration into the second quarter from our original belief on, uh, when the deal will close, I think that helps us uh, move forward in terms of the transformation of the North American and particularly the US retail business.

Our final question is from Brian Keane at City. Please go ahead.

Yeah, hi guys. Thanks for uh, all the details here and the call. Um, just want to ask about consumer services growth, obviously that's been the strength and, and powering a lot of the, the Top Line. Can you talk a little bit about what we should expect for growth rates this year and some of the, the key driving factors? And then I'll ask my my second question. I think, Matt, what people are trying to figure out is the actual Revenue dollar amount assumed in the, uh, intermax transaction. And then, maybe just what that means. For organically the business this year,

X acquisition, thanks. So Brian. I'll work my way backwards on your second 1, the simple answers are Organics and be closer to flat-ish. Um, and then intermix will help us get closer to the 6 to 7%. Uh we think we'll get some positive growth but call it flat-ish.

Solid from a consumer services standpoint and then I intentionally talked about, we see a path for double digit growth going forward is we continue to expand products as we continue to uh look at inorganic activities and we expanded into new marketplaces so view it as higher in q1 and then working. Its way down closer to our double digit. And then we may have some talk into the year progresses.

Great. Thanks guys.

Thanks everybody.

There are no more questions in the queue.

Thank you for joining the Western Union. Fourth quarter, 2025 results conference call. We hope you have a great day.

Q4 2025 The Western Union Co Earnings Call

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