Western Union Net Income Falls 48% to $64.7M in Q1 2026
The Western Union Company (NYSE: WU), a global money transfer and payment services provider, reported net income of $64.7 million for the quarter ending March 31, 2026, down 48% from $123.5 million in the prior-year period. Revenue held essentially flat at $982.7 million.
The Western Union Company (NYSE: WU), a global money transfer and payment services provider, reported net income of $64.7 million for the quarter ending March 31, 2026, down 48% from $123.5 million in the prior-year period. Revenue held essentially flat at $982.7 million compared to $983.6 million a year earlier. Read more earnings reports.
The sharp decline in profitability came despite steady revenue, as operating income dropped 31% to $123.0 million from $177.4 million in Q1 2025. Operating expenses climbed notably, with selling, general and administrative expenses rising 10% to $204.8 million from $187.0 million in the year-ago quarter.
Cost of goods sold increased to $654.9 million from $619.2 million, while the company recorded higher depreciation and amortization of $32.5 million versus $30.4 million in the prior-year period. Income tax expense edged up to $25.4 million from $23.8 million.
Diluted earnings per share fell to $0.20 from $0.36 a year earlier. The weighted average diluted share count decreased to 316.8 million shares from 339.2 million shares in Q1 2025, reflecting the company's ongoing share repurchase activity.
Balance Sheet and Cash Position
Total assets declined to $8.10 billion as of March 31, 2026, from $8.31 billion at the end of December 2025. Cash and cash equivalents fell to $909.2 million from $1.23 billion at year-end, representing a $325.2 million decrease during the quarter.
The company held $2.33 billion in long-term debt as of March 31, 2026. Total liabilities decreased to $7.19 billion from $7.35 billion at the end of the prior quarter. Goodwill stood at $2.10 billion, while intangible assets increased to $388.8 million from $356.3 million.
Common shares outstanding declined to 312.7 million from 315.7 million at December 31, 2025. The company's retained deficit widened to $76.9 million from $11.5 million at the end of 2025.
Cash Flow Performance
Cash from operations totaled $109.0 million for the three months ending March 31, 2026, down 26% from $148.2 million in the same period last year. Cash used in investing activities was $55.5 million, an improvement from $111.1 million in the prior-year quarter.
Cash used in financing activities amounted to $208.2 million compared to $696.6 million in Q1 2025, reflecting lower capital allocation to shareholder returns and debt management during the period.
Revenue Breakdown
Transaction fees generated $845.4 million of the company's total revenue, compared to $872.9 million in the prior-year period. Other revenues contributed $137.3 million versus $110.7 million a year earlier, showing a 24% increase in this category.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Total Revenue | $982.7M | $983.6M | -0.1% |
| Operating Income | $123.0M | $177.4M | -30.7% |
| Net Income | $64.7M | $123.5M | -47.6% |
| Diluted EPS | $0.20 | $0.36 | -44.4% |
| Cash from Operations | $109.0M | $148.2M | -26.4% |
| Total Assets | $8.10B | $8.31B* | -2.5% |
*As of December 31, 2025