Revenue and profitability are under pressure, with gross margins compressing to 33.4% in 2026Q1 compared to historical levels of 37% to 38% observed throughout 2024.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'02 | Dec'01 |
|---|
| Net Interest Income | -307.8M | -135.3M | -107.9M | -89.7M | -87.1M | -104.1M | -115.3M | -145.7M | -144.8M | -137.2M | -149M | -157M | -165.1M | -186.2M | -174.1M | -176.7M | -167.1M | -148.5M | -126M | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | -671.29% | -25.39% | -20.29% | -2.99% | 16.33% | 9.71% | 20.86% | -0.62% | -5.54% | 7.92% | 5.1% | 4.91% | 11.33% | -6.95% | 1.47% | -5.75% | -12.53% | -17.86% | - | - | - | - | - | - |
| Net Interest Margin % | -3.8% | -1.63% | -1.29% | -1.09% | -1.03% | -1.18% | -1.21% | -1.66% | -1.61% | -1.49% | -1.58% | -1.66% | -1.67% | -1.84% | -1.84% | -1.95% | -2.11% | -2.02% | -2.26% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | 8.2M | 7.9M | 11.9M | 15.6M | 13.9M | 1.4M | 3.2M | 6.3M | 4.8M | 4.9M | 3.5M | 10.9M | 11.5M | 9.4M | 5.5M | 5.2M | 2.8M | 9.4M | 45.2M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 277.8M | 143.2M | 119.8M | 105.3M | 101M | 105.5M | 118.5M | 152M | 149.6M | 142.1M | 152.5M | 167.9M | 176.6M | 195.6M | 179.6M | 181.9M | 169.9M | 157.9M | 171.2M | 0 | 0 | 0 | 0 | 0 |
| Loan Loss Provision | 2.39B | 2.74B | 2.5B | 2.57B | 2.53B | 2.79B | 2.71B | 2.93B | 3.15B | 3.21B | 3.11B | 3.03B | 3.12B | 3.04B | 3.01B | 2.92B | 2.81B | 2.72B | 2.92B | 2.81B | 2.43B | 2.12B | 0 | 0 |
| Non-Interest Income | 4.04B | 4.03B | 4.2B | 4.34B | 4.46B | 5.07B | 4.83B | 5.29B | 5.59B | 5.52B | 5.42B | 5.47B | 5.6B | 5.53B | 5.66B | 5.49B | 5.19B | 5.07B | 5.24B | 4.9B | 4.47B | 3.99B | 2.74B | 2.31B |
| Non-Interest Income % | 99.8% | 99.8% | 99.72% | 99.64% | 99.69% | 99.97% | 99.93% | 99.88% | 99.91% | 99.91% | 99.94% | 99.8% | 99.79% | 99.83% | 99.9% | 99.91% | 99.95% | 99.82% | 99.14% | 100% | 100% | 100% | 100% | 100% |
| Total Revenue | 4.05B | 4.04B | 4.21B | 4.36B | 4.48B | 5.07B | 4.83B | 5.29B | 5.59B | 5.52B | 5.42B | 5.48B | 5.61B | 5.54B | 5.66B | 5.49B | 5.19B | 5.08B | 5.28B | 4.9B | 4.47B | 3.99B | 2.74B | 2.31B |
| Revenue Growth % | -9.13% | -4% | -3.38% | -2.65% | -11.74% | 4.88% | -8.64% | -5.33% | 1.19% | 1.87% | -1.11% | -2.2% | 1.18% | -2.17% | 3.16% | 5.75% | 2.15% | -3.76% | 7.79% | 9.62% | 12.09% | 45.36% | 18.54% | - |
| Non-Interest Expense | 662.8M | 375.5M | 863.4M | 867.8M | 964.2M | 1.05B | 1.04B | 1.27B | 1.17B | 1.7B | 1.67B | 1.17B | 1.17B | 1.2B | 1.14B | 1B | 914.2M | 926M | 834M | 769.8M | 728.3M | 599.8M | 1.92B | 1.65B |
| Efficiency Ratio | 16.38% | 9.29% | 20.51% | 19.92% | 21.54% | 20.73% | 21.53% | 24.03% | 20.88% | 30.69% | 30.78% | 21.43% | 20.85% | 21.65% | 20.13% | 18.29% | 17.61% | 18.22% | 15.79% | 15.71% | 16.29% | 15.04% | 69.98% | 71.34% |
| Operating Income | 714.3M | 784.2M | 725.8M | 817.5M | 884.9M | 1.12B | 967.3M | 934M | 1.12B | 473.4M | 483.7M | 1.11B | 1.14B | 1.11B | 1.33B | 1.39B | 1.3B | 1.28B | 1.35B | 1.32B | 1.31B | 1.27B | 823.5M | 663.4M |
| Operating Margin % | 17.65% | 19.41% | 17.24% | 18.76% | 19.77% | 22.15% | 20.01% | 17.65% | 20.07% | 8.57% | 8.92% | 20.23% | 20.34% | 19.98% | 23.48% | 25.22% | 25.04% | 25.23% | 25.65% | 26.98% | 29.34% | 31.83% | 30.02% | 28.66% |
| Operating Income Growth % | - | 8.05% | -11.22% | -7.62% | -21.21% | 16.11% | 3.57% | -16.76% | 137.03% | -2.13% | -56.4% | -2.73% | 2.99% | -16.74% | -3.97% | 6.53% | 1.36% | -5.34% | 2.5% | 0.81% | 3.32% | 54.12% | 24.13% | - |
| Pretax Income | 568.5M | 625.7M | 618.6M | 745.8M | 1.01B | 935.4M | 855.1M | 1.32B | 991.4M | 347.5M | 341.7M | 941.8M | 968.2M | 926.9M | 1.17B | 1.27B | 1.15B | 1.13B | 1.24B | 1.22B | 1.34B | 1.34B | 799.3M | 662.3M |
| Pretax Margin % | 14.05% | 15.48% | 14.69% | 17.12% | 22.54% | 18.45% | 17.69% | 24.97% | 17.74% | 6.29% | 6.3% | 17.17% | 17.27% | 16.73% | 20.63% | 23.21% | 22.05% | 22.26% | 23.45% | 24.95% | 29.87% | 33.7% | 29.14% | 28.62% |
| Income Tax | 127.7M | 126.1M | -315.6M | 119.8M | 98M | 129.6M | 110.8M | 263.1M | 139.5M | 904.6M | 88.5M | 104M | 115.8M | 128.5M | 142.9M | 109.2M | 235.3M | 282.7M | 319.7M | 365.1M | 421.1M | 416.7M | 305.2M | 1.91B |
| Effective Tax Rate % | 22.46% | 20.15% | -51.02% | 16.06% | 9.72% | 13.86% | 12.96% | 19.91% | 14.07% | 260.32% | 25.9% | 11.04% | 11.96% | 13.86% | 12.23% | 8.57% | 20.55% | 24.98% | 25.81% | 29.87% | 31.54% | 31% | 38.18% | 287.69% |
| Net Income | 440.8M | 499.6M | 934.2M | 626M | 910.6M | 805.8M | 744.3M | 1.06B | 851.9M | -557.1M | 253.2M | 837.8M | 852.4M | 798.4M | 1.03B | 1.17B | 909.9M | 848.8M | 919M | 857.3M | 914M | 927.4M | 494.1M | 407.9M |
| Net Margin % | 10.89% | 12.36% | 22.19% | 14.37% | 20.35% | 15.89% | 15.39% | 20% | 15.24% | -10.08% | 4.67% | 15.28% | 15.2% | 14.41% | 18.11% | 21.22% | 17.52% | 16.7% | 17.4% | 17.5% | 20.45% | 23.26% | 18.01% | 17.62% |
| Net Income Growth % | -51.83% | -46.52% | 49.23% | -31.25% | 13.01% | 8.26% | -29.67% | 24.23% | 252.92% | -320.02% | -69.78% | -1.71% | 6.76% | -22.18% | -11.97% | 28.08% | 7.2% | -7.64% | 7.2% | -6.2% | -1.44% | 87.69% | 21.13% | - |
| Net Income (Continuing) | 440.8M | 499.6M | 934.2M | 626M | 910.6M | 805.8M | 744.3M | 1.06B | 851.9M | -557.1M | 253.2M | 837.8M | 852.4M | 798.4M | 1.03B | 1.17B | 909.9M | 848.8M | 919M | 857.3M | 914M | 927.4M | 494.1M | 407.9M |
| EPS (Diluted) | 1.39 | 1.53 | 2.74 | 1.68 | 2.34 | 1.97 | 1.79 | 2.46 | 1.87 | -1.19 | 0.51 | 1.62 | 1.59 | 1.43 | 1.69 | 1.84 | 1.36 | 1.21 | 1.24 | 1.11 | 1.19 | 1.21 | 0.65 | 0.53 |
| EPS Growth % | -49.44% | -44.16% | 63.1% | -28.21% | 18.78% | 10.06% | -27.24% | 31.55% | 257.14% | -333.33% | -68.52% | 1.89% | 11.19% | -15.38% | -8.15% | 35.29% | 12.4% | -2.42% | 11.71% | -6.72% | -1.65% | 86.15% | 22.64% | - |
| EPS (Basic) | - | 1.53 | 2.75 | 1.69 | 2.35 | 1.98 | 1.81 | 2.48 | 1.89 | -1.19 | 0.52 | 1.63 | 1.60 | 1.43 | 1.70 | 1.85 | 1.37 | 1.21 | 1.26 | 1.13 | 1.20 | 1.21 | 0.65 | 0.53 |
| Diluted Shares Outstanding | 316.8M | 327.6M | 341.1M | 371.8M | 388.4M | 408.9M | 415.2M | 430.9M | 454.4M | 467.9M | 493.5M | 516.7M | 536.8M | 559.7M | 607.4M | 634.2M | 668.9M | 701M | 738.2M | 772.9M | 768.6M | 763.9M | 760.15M | 763.9M |
Structural Market Share Erosion
As indicated by the most recent quarterly data, Western Union's gross margin contracted to 33.4% in 2026Q1, a notable decline from the historical range of 37% to 38% observed throughout 2024 and 2025, suggesting intensifying competitive pricing pressure or unfavorable shifts in the underlying transaction mix.
The sudden drop in gross margin suggests that the company's ability to maintain pricing power is being challenged by digital-native competitors. Investors should monitor whether this compression is a temporary anomaly related to corridor-specific volatility or a structural shift in the cost of services that may permanently impair profitability.
Based on the reported financial statements, operating income fell to $123.0 million in 2026Q1, representing a 12.5% operating margin that significantly trails the 18% to 19% levels maintained during the previous four quarters, highlighting a lack of scalability in the current cost structure.
The inability to maintain operating margins despite the divestiture of the Business Solutions segment suggests that fixed costs, particularly regulatory and compliance overhead, remain sticky. This lack of operating leverage implies that the company is struggling to achieve the necessary efficiency gains to offset declining top-line performance.
According to the income statement history, net income has exhibited extreme volatility, ranging from a high of $385.7 million in 2024Q4 to a low of $64.7 million in 2026Q1, indicating that non-operating items and one-time charges are significantly distorting the underlying earnings quality.
The wide variance in net income suggests that investors should focus on operating income as a more reliable proxy for performance, as the bottom line is frequently impacted by restructuring charges and divestiture-related accounting. The sharp decline in EPS to $0.20 in the most recent quarter warrants further investigation into whether these are recurring operational headwinds or transient accounting adjustments.
As reported in recent filings, the consistent contraction in profitability metrics suggests that the market's skepticism regarding the long-term viability of the physical agent network may be well-founded, as the company struggles to defend its core C2C business against more agile, lower-cost digital remittance platforms.
Short-sellers may argue that the 'Evolve 2025' strategy is merely a defensive attempt to manage decline rather than a path to growth. The persistent margin pressure indicates that the company may be forced to choose between losing further market share or sacrificing profitability to remain competitive in an increasingly commoditized remittance market.
Quick answers to the most common questions about buying WU stock.
The Western Union Company (WU) is profitable, generating $499.6M in net income for the fiscal year ending 2025 with a net profit margin of 12.4%.
The Western Union Company (WU) reported an operating income of $784.2M, resulting in an operating profit margin of 19.4%. This margin reflects the operational efficiency of the business before interest and taxes.
The Western Union Company (WU) generated $1.16B in gross profit for the year, representing a gross profit margin of 28.7%. This demonstrates the company's core pricing power and production efficiency.