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Western Union provides money transfers and payment services through retail agents and digital channels.
The Western Union Company (NYSE: WU) helps consumers send money through retail agents and digital channels. Consumer Money Transfer is its largest business. Consumer Services includes bill payments, money orders and travel money. Revenue comes from transaction fees, currency exchange and other services.
| Measure | 2025 | 2026 |
|---|---|---|
| Revenue | 1,032.6 | 1,009.3 |
| GAAP operating income | 201.9 | 130.8 |
| Adjusted operating income | 206.2 | 178.4 |
| GAAP net income | 139.6 | 78.0 |
| GAAP diluted EPS | $0.43 | $0.25 |
| Adjusted diluted EPS | $0.47 | $0.42 |
The adjusted operating margin improved from 15% in Q2 2026 to 18% in Q3, although it remained below 20% a year earlier. Q2 revenue was $1,013.2 million, reported operating income was $132.1 million and adjusted operating income was $149 million. Reported net income was $76.7 million, with GAAP diluted EPS of $0.24 and adjusted EPS of $0.31.
For comparison, Q2 2025 revenue was $1,026.1 million, operating income was $192.7 million and adjusted operating income was $199.3 million. Net income was $122.1 million, GAAP diluted EPS was $0.37 and adjusted EPS was $0.42.
Q3 adjusted operating profit removes $37.3 million of Beyond program costs, $4.7 million of acquisition-related costs, $2.6 million of severance, $2.4 million of acquired-intangible amortization and $0.6 million of Russia termination costs. Adjusted net income of $130.5 million also removes a $15 million noncash international tax charge and the related tax effects of the operating adjustments.
Q3 Consumer Money Transfer revenue fell 2% to $857.2 million despite a 2% increase in transactions. Branded Digital revenue rose 8% and transactions increased 21%. It represented 32% of that segment's revenue and 45% of transactions.
Consumer Services revenue fell 2% to $152.1 million on a reported basis but rose 5% after currency adjustments. Digital growth and travel-money services are helping offset weakness in traditional transfers, particularly in North America.
July's 2026 outlook assumed Intermex would close September 1. Reported revenue growth was forecast at 3% to 5%, adjusted revenue growth at 4% to 6%, adjusted EPS at $1.25 to $1.35 and the adjusted tax rate at 13% to 15%.
November's forecast assumes reported and adjusted revenue growth of zero to 1% with a November 10 closing, or a decline of 1% to 2% if Intermex does not close during 2026. Both cases use adjusted EPS of $1.28 to $1.38. The adjusted tax forecast is 10% to 12%. The different acquisition timing changes how much Intermex revenue enters the comparison.
Management's July efficiency target was $50 million of annualized operating-cost savings by the end of 2026. Q3 actions included a voluntary retirement program and planned workforce reductions of more than 650 employees. Repositioning its regional operating center from Costa Rica to Guatemala is planned by the end of 2027. Future results can show how much of the margin recovery comes from sustained savings and stronger sales.
The August 2025 agreement provides $16 in cash per eligible Intermex share. Western Union described about $500 million of equity consideration, plus repayment of Intermex's outstanding revolving debt.
The original federal antitrust waiting period expired October 6, 2025. Because the original clearance was valid for one year, the parties filed again October 2, 2026. The renewed period expired November 2 at 11:59 p.m. Eastern. California suspended its approval in August, and reinstatement remains necessary for closing.
The merger timetable conditionally extended from May 11 to August 10 and then November 10, 2026. The latest quarterly report identifies a November 10 right for either party to terminate an unfinished deal, subject to the agreement. It is a right a party must exercise.
A separate, undrawn $800 million delayed-draw loan facility can fund the acquisition. A June 17 amendment extended the draw period from July 8 through November 10. The loan matures three years after initial funding; increasing commitments to $1 billion requires additional lenders' commitments.
At September 30, ordinary cash and equivalents totaled $1.098 billion and borrowings were $2.888 billion at carrying value. At June 30 those amounts were $919.8 million and $2.697 billion. Separate September settlement cash of $710.5 million backs customer-payment obligations.
The $800 million already-funded term loan is distinct from the undrawn Intermex facility. Western Union also had $399 million of commercial paper outstanding. Its $1.62 billion revolving commitment backs that commercial-paper program, so their limits overlap.
Operating cash flow was $321.2 million in the first nine months of 2026, versus $408.3 million a year earlier. Capital spending was $130.3 million, up from $100.7 million. Cash dividends and equivalents used $226.5 million, while cash stock repurchases, including shares withheld for employee taxes, used $65.7 million.
The company acquired Eurochange in April 2025. Its proposed sale of Russian assets received final regulatory approval in October 2026, but the latest report still described remaining closing conditions.
Our analysis of Western Union's revised outlook examines the revenue forecast, lower tax assumption and recovery in operating margins.
The Intermex deal is still waiting for California approval. A lower adjusted tax forecast and improving margins help explain why the earnings picture looks different from the sales outlook.