Western Union’s first-quarter 2026 results showed a decline in net income compared to a year ago as it faced higher operating expenses, foreign exchange losses and a higher tax rate.
The company reported GAAP net income of $64.7 million in the quarter, up from $123.5 million in the same period last year.
The company’s GAAP revenue was flat at $983 million, while adjusted revenue declined 1%.
Consumer Services segment revenue grew 24% on a GAAP basis, or 33% on an adjusted basis.
Segment growth was driven by the expansion of the Travel Money business, which included the acquisition of Eurochange, and higher revenues from the bill payment business.
Branded Digital revenue increased 9% on a GAAP basis and 6% on an adjusted basis, with transactions growing 21%.
The Branded Digital business accounted for 32% of Consumer Money Transfer (CMT)’s total revenue and 42% of transactions in the first quarter.
CMT segment revenues decreased 3% on a GAAP basis, with transactions stable, while on an adjusted basis revenues decreased 6%.
First-quarter GAAP earnings per share (EPS) was $0.20, down from $0.36 in the prior-year period, while adjusted EPS was $0.25, down from $0.41.
GAAP and Adjusted EPS were affected by largely anticipated items, including lower fixed cost coverage at owned locations, the timing of supplier incentives and higher costs associated with new strategic partnerships, as well as discrete items such as a large foreign currency loss and a higher tax rate.
GAAP and adjusted operating margin stood at 13% in the quarter, compared to 18% and 19% respectively in the prior-year period.
Margins were affected by higher expenses in North America, including the lack of incentive payments to suppliers, higher commissions for recruiting new agents, foreign currency impacts and lower coverage of fixed costs in owned locations.
Western Union President and CEO Devin McGranahan said: “The first quarter results reflect the continued challenges in our retail business in the Americas, as well as some discrete elements impacting the quarter.
“Looking ahead, the pending acquisition of Intermex is expected to strengthen our retail capabilities in the Americas, our stablecoin launch will modernize our payment systems, and continued investment in our digital channel is preparing us for a more digital-centric future.”
The company said it is reaffirming its 2026 guidance, which includes adjusted revenue growth of 6% to 9% and adjusted EPS between $1.75 and $1.85.
“Western Union Earnings Fall in First Quarter” was created and originally published by Electronic Payments International, a brand owned by GlobalData.