Western Union Profit Falls To $78.0 Million As Retail Shrinks And Restructuring Bites
Digital revenue grew 8%, but the money-transfer firm held its 2026 adjusted EPS outlook at $1.28 to $1.38 while its Intermex deal waits on California.
Western Union, which moves money across borders through agent locations, stores, websites and apps, posted third-quarter net income of $78.0 million, down from $139.6 million a year earlier, as a slump in North America retail and one-time restructuring costs outweighed growth in digital. Earnings per share fell to $0.25 from $0.43, the company said Wednesday.
Margins squeezed by retail and restructuring
Revenue of $1,009.3 million fell 2% as reported and 1% on an adjusted basis. The company blamed a slowdown in North America retail, partly offset by growth in Branded Digital and Consumer Services.
Adjusted EPS was $0.42, against $0.47 a year earlier. Operating margin was 13% on a standard accounting basis, down from 20%; on an adjusted basis it was 18%, against 20%. Total expenses rose 6% to $878.5 million.
The Beyond efficiency program added $37.3 million in one-time costs, including a voluntary retirement program in the United States, severance tied to relocating a regional operating center, and other workforce cuts. The program was announced in July 2026.
Digital keeps growing
Branded Digital revenue rose 8% with transactions up 21%, and the business made up 32% of Consumer Money Transfer revenue and 45% of its transactions. Consumer Money Transfer revenue, 85% of the company total in the quarter, fell 2% while transactions grew 2%.
Consumer Services revenue fell 2% as reported but grew 5% on an adjusted basis, helped by bill payment and check cashing. Money orders and the media network slowed.
CEO Devin McGranahan said in the release that the second-quarter initiatives are streamlining costs and "have begun to materialize in our financial results." The company is also investing in AI and stablecoin initiatives. On the earnings call, he said disruption to the legacy business outpaced its ability to remodel costs earlier this year.
Intermex deal hangs on California
Western Union and International Money Express are still talking with California's Department of Financial Protection and Innovation about reinstating its approval of the merger. Either side can terminate the agreement if the deal is not completed by November 10, 2026.
The company kept adjusted EPS guidance for 2026 at $1.28 to $1.38 with or without Intermex. Revenue is guided to 0% to 1% growth including Intermex and a decline of 1% to 2% excluding it. The including-Intermex case assumes a close on November 10.
The outlook with Intermex assumes a November 10 close, the same date either party gains the right to walk away.
Sources
- 8-K Filing — Western Union CO (WU) — SEC EDGAR
- Exhibit wu-ex99_1.htm — Western Union CO 8-K exhibit — SEC EDGAR
- Western Union: Q3 Earnings Snapshot | wusa9.com — Associated Press
- Western Union Q3 2026 Earnings Call Transcript — benzinga.com
- Western Union (WU) Rises As Market Takes a Dip: Key Facts — Yahoo Finance
- Western Union Reports Third Quarter 2026 Results — businesswire.com
