Western Union Third-Quarter Adjusted Operating Margin Reaches 18%

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter 2026 GAAP revenue fell 2% to $1.0 billion. GAAP operating margin fell to 13% from 20% a year earlier as the company booked $37.3 million of Beyond efficiency-program costs, which contributed to a decline in GAAP EPS to $0.25.

The Western Union Company (WU) reported third-quarter 2026 GAAP revenue of $1.0 billion, down 2% from a year earlier, while GAAP EPS fell to $0.25 from $0.43, partly due to higher one-time expenses related to its Beyond efficiency program. Adjusted revenue declined 1%. The company said the decline in adjusted revenue was largely driven by a slowdown in the North America retail business, partially offset by growth in Branded Digital and Consumer Services.

GAAP earnings were $0.25 a share, down from $0.43 a year earlier. The company said the decline was primarily due to lower revenues, higher one-time expenses related to its Beyond efficiency program and a higher GAAP tax rate, partly offset by lower shares outstanding. Adjusted EPS was $0.42, down from $0.47.

GAAP operating margin compressed to 13% from 20% a year earlier. Adjusted operating margin was 18%, compared with 20% a year earlier. The company said both margins were impacted by lower revenues from its CMT retail business and higher operating expenses.

That adjusted margin rose from 15% in the second quarter, remaining below the year-earlier 20%. In the second quarter, GAAP revenue of $1.0 billion had decreased 1% on both a reported and adjusted basis, and GAAP operating margin had been 13% versus 19% a year earlier.

Consumer Money Transfer segment revenue decreased 2% on both a GAAP and an adjusted basis. Transactions grew 2%. Branded Digital revenue increased 8% on both a GAAP and an adjusted basis, with transaction growth of 21%. The Branded Digital business represented 32% of total CMT revenues and 45% of CMT transactions.

Consumer Services segment revenue declined 2% on a GAAP basis or grew 5% on an adjusted basis. The company said the increase in adjusted revenue was driven by higher revenues from bill payment and check cashing, partly offset by a slowdown in money order and media network.

GAAP operating income was $130.8 million, down 35% from $201.9 million a year earlier. Net income was $78.0 million, down 44% from $139.6 million. The company recorded $37.3 million of one-time costs associated with the Beyond efficiency program, including employee termination costs related to a voluntary retirement program in the United States, severance related to relocating a regional operating center, and other workforce reductions.

The GAAP effective tax rate was 19%, compared with 17% a year earlier. The company said the increase was primarily due to changes in forecasted full-year pre-tax income, including the expected geographic mix of income among jurisdictions. The adjusted effective tax rate was 9%, compared with 12% a year earlier.

President and Chief Executive Officer Devin McGranahan said initiatives launched in the second quarter are streamlining the cost structure and have begun to materialize in financial results. He said the company continues to invest in digital capabilities, AI across key operational processes, and stablecoin and next-generation money movement initiatives.

Western Union is updating its full-year 2026 outlook. Including Intermex, assuming a close on November 10, 2026, GAAP and adjusted revenue are expected to grow 0% to 1%. Excluding Intermex, GAAP and adjusted revenue are expected to decline 2% to 1%. Both adjusted revenue growth ranges exclude currency effects and Argentina inflation in quarters when it is hyperinflationary (over 50% within a quarter). Adjusted EPS is expected to be $1.28 to $1.38 in both cases. The GAAP effective tax rate is expected to be 20% to 22% and the adjusted effective tax rate 10% to 12%.

The Intermex merger remains subject to reinstatement of California DFPI approval. The Merger Agreement contains termination rights if the deal is not completed by November 10, 2026.