Western Union CO

Previous wording

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events related to our business and industry, such as: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns or other events, such as public health emergencies, epidemics, or pandemics, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price or customer experience, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related exchanges and protocols, and other innovations in technology and business models; geopolitical tensions, political conditions, and related actions, including trade restrictions and government sanctions, which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents, clients, or other partners; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; our ability to adopt new technology and develop and gain market acceptance of new and enhanced services in response to changing industry and consumer needs or trends; mergers, acquisitions, and the integration of acquired businesses and technologies into our Company, divestitures, and the failure to realize anticipated financial benefits from these transactions, and events requiring us to write down our goodwill; decisions to change our business mix; changes in, and failure to manage effectively, exposure to foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers; changes in tax laws, or their interpretation, any subsequent regulation, and unfavorable resolution of tax contingencies; any material breach of security, including cybersecurity, or safeguards of or interruptions in any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; our ability to real…

Excerpt shortened here; the source contains the full paragraph.

Current wording

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events or factors related to our business and industry, such as: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns or other events, such as public health emergencies, epidemics, or pandemics, policy changes in the United States and/or other key markets, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price or customer experience, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related exchanges and protocols, and other innovations in technology and business models; geopolitical tensions, political conditions, and related actions, including trade restrictions, tariffs, and government sanctions, which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents, clients, or other partners; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; our ability to adopt new technology and develop and gain market acceptance of new and enhanced services in response to changing industry and consumer needs or trends; mergers, acquisitions, and the integration of acquired businesses and technologies into our Company, divestitures, and the failure to realize anticipated financial benefits from these transactions, and events requiring us to write down our goodwill; decisions to change our business mix; changes in, and failure to manage effectively, exposure to foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers; changes in tax laws, or their interpretation, any subsequent regulation, and unfavorable resolution of tax contingencies; any material breach of security, including cybersecurity, or safeguards of or interruptions in any of our systems or those of our vendors or other third parties; cessation of or def…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

We are a leading provider of cross-border, cross-currency money movement, payments, and digital financial services and operate in the following business operating segments:

Current wording

We are a leading provider of cross-border, cross-currency money movement, payments, and digital financial services and conduct business in the following operating segments:

Previous wording

Consumer Services - Our Consumer Services segment includes our bill payment services which facilitate payments for consumers, businesses, and other organizations, as well as our money order services, retail foreign exchange services, prepaid cards, lending partnerships, digital wallets, and media network.

Current wording

Consumer Services - Our Consumer Services segment includes our bill payment services, money order services, retail foreign exchange services, media network, prepaid cards, lending partnerships, and digital wallets.

Previous wording

The following discussion of our consolidated results of operations and segment results refers to the three and nine months ended September 30, 2024 compared to the same periods in 2023. The results of operations should be read in conjunction with the discussion of our segment results of operations, which provides more detailed discussions concerning certain components of the Condensed Consolidated Statements of Income. All significant intercompany accounts and transactions between our segments have been eliminated. The below information has been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) unless otherwise noted. All amounts provided in this section are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.

Current wording

The following discussion of our consolidated results of operations and segment results refers to the three months ended March 31, 2025 compared to the same period in 2024. The results of operations should be read in conjunction with the discussion of our segment results of operations, which provides more detailed discussions concerning certain components of the Condensed Consolidated Statements of Income. All significant intercompany accounts and transactions between our segments have been eliminated. The below information has been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) unless otherwise noted. All amounts provided in this section are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.

Previous wording

The following table sets forth our consolidated results of operations for the three and nine months ended September 30, 2024 and 2023:

Current wording

The following table sets forth our consolidated results of operations for the three months ended March 31, 2025 and 2024:

Previous wording

Revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, pay-in and pay-out method, the principal amount sent, and the difference between the exchange rate we set to the customer and a rate available in the wholesale foreign exchange market, when the money transfer involves different send and receive currencies. We also offer other consumer services, for which revenue is impacted by similar factors.

Current wording

Revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the send and receive funding method, the principal amount sent, and, when the money transfer involves different send and receive currencies, the difference between the exchange rate we set to the customer and a rate available in the wholesale foreign exchange market. We also offer other consumer services, for which revenue is impacted by similar factors.

Previous wording

Due to the significance of the effect that foreign exchange fluctuations against the United States dollar can have on our reported revenues, constant currency results have been provided in the table below for consolidated revenues. Constant currency results assume foreign revenues are translated from foreign currencies to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year. Constant currency results are also net of the impact of Argentina inflation due to its economy being hyperinflationary. We have also disclosed the impact of the Business Solutions divestiture on our revenues in the table below. Constant currency measures and measures that exclude the impact of divestitures are non-GAAP financial measures and are provided so that revenue can be viewed without the effect of fluctuations in foreign currency exchange rates, net of the hyperinflationary Argentine economy, and divestitures of our businesses, which is consistent with how management evaluates our revenue results and trends. We believe that these measures provide management and investors with information about revenue results and trends that eliminates currency volatility and divestitures, thereby providing greater clarity regarding, and increasing the comparability of, our underlying results and trends. These disclosures are provided in addition to, and not as a substitute for, the percentage change in revenue on a GAAP basis for the three and nine months ended September 30, 2024 compared to the corresponding periods in the prior year. Other companies may calculate and define similarly labeled items differently, which may limit the usefulness of this measure for comparative purposes.

Current wording

Due to the significance of the effect that foreign exchange fluctuations against the United States dollar can have on our reported revenues, constant currency results have been provided in the table below for consolidated revenues. Constant currency revenues translate revenues denominated in foreign currencies to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year. Constant currency results are also net of the impact of Argentina inflation due to its economy being hyperinflationary. Constant currency measures are non-GAAP financial measures and are provided so that revenue can be viewed without the effect of fluctuations in foreign currency exchange rates, net of the hyperinflationary Argentine economy, which is consistent with how management evaluates our revenue results and trends. We believe that these measures provide management and investors with information about revenue results and trends that eliminates currency volatility, thereby providing greater clarity regarding, and increasing the comparability of, our underlying results and trends. These disclosures are provided in addition to, and not as a substitute for, the percentage change in revenue on a GAAP basis for the three months ended March 31, 2025 compared to the corresponding period in the prior year. Other companies may calculate and define similarly labeled items differently, which may limit the usefulness of this measure for comparative purposes.

Previous wording

The following table sets forth our consolidated revenue results for the three and nine months ended September 30, 2024 and 2023:

Current wording

The following table sets forth our consolidated revenue results for the three months ended March 31, 2025 and 2024:

Previous wording

Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges and Argentina inflation, resulted in an increase to revenues of $5.5 million and a decrease to revenues of $6.5 million for the three and nine months ended September 30, 2024, respectively, when compared to the corresponding periods in the prior year. We calculate Argentina inflation as the revenue growth not attributable to either transaction growth or the change in price (revenue divided by principal).

Current wording

Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges and Argentina inflation, resulted in an increase to revenues of $14.4 million for the three months ended March 31, 2025, when compared to the corresponding period in the prior year. We calculate Argentina inflation as the revenue growth not attributable to either transaction growth or the change in price (revenue divided by principal).

Previous wording

In addition to the impacts from foreign currency, net of Argentina inflation, and the divestiture of our Business Solutions business, for the three and nine months ended September 30, 2024 when compared to the corresponding periods in the prior year, GAAP and Adjusted revenues decreased due to a reduction in transactions originating from Iraq, which negatively impacted revenues by 7% and 4% for the three and nine months ended September 30, 2024, respectively, relative to the corresponding prior periods. We believe that we will continue to see a reduction in transactions originating in Iraq, compared to prior year periods, in the remainder of 2024 and possibly thereafter primarily driven by changes in monetary policy and related central bank actions.

Current wording

In addition to the impacts from foreign currency, net of Argentina inflation, for the three months ended March 31, 2025 when compared to the corresponding period in the prior year, GAAP and Adjusted revenues decreased due to a reduction in transactions originating from Iraq, which negatively impacted revenues by 6%. We believe that we will continue to see a reduction in transactions originating in Iraq in the second quarter of 2025, compared to the prior year period, primarily driven by changes in monetary policy and related central bank actions.

Previous wording

Cost of services primarily consists of agent commissions, which represented approximately 60% of total cost of services for the three and nine months ended September 30, 2024 and 2023. For the three and nine months ended September 30, 2024, Cost of services decreased compared to the corresponding periods in the prior year primarily due to decreases in agent commissions, which generally vary with revenue, partially offset by increases in certain variable expenses, including bank fees and credit and non-credit losses, as well as higher employee compensation primarily associated with our expansion of Company-owned locations. In addition, for the nine months ended September 30, 2024 compared to the corresponding period in the prior year, Cost of services was impacted by a decrease associated with the Business Solutions divestiture.

Current wording

Cost of services primarily consists of agent commissions, which represented approximately 60% of total cost of services for the three months ended March 31, 2025 and 2024. For the three months ended March 31, 2025, cost of services decreased compared to the corresponding period in the prior year primarily due to decreases in agent commissions and technology expenses, partially offset by increased expenses associated with our expansion of Company-owned locations.

Previous wording

During the three months ended September 30, 2024 and 2023, both basic and diluted earnings per share were $0.78 and $0.46, respectively. During the nine months ended September 30, 2024 and 2023, both basic and diluted earnings per share were $1.61 and $1.33, respectively. Outstanding options to purchase Western Union stock and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested. Shares excluded from the diluted earnings per share calculation were 11.3 million and 9.5 million for the three months ended September 30, 2024 and 2023, respectively, and 11.7 million and 9.6 million for the nine months ended September 30, 2024 and 2023, respectively. The effect of these shares was anti-dilutive under the treasury stock method, as the assumed proceeds of the options and restricted stock per unit were above our average share price during the periods.

Current wording

During the three months ended March 31, 2025 and 2024, basic earnings per share were $0.37 and $0.41, respectively, and diluted earnings per share were $0.36 and $0.41, respectively. Outstanding options to purchase Western Union stock and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested. Shares excluded from the diluted earnings per share calculation were 14.0 million and 11.4 million for the three months ended March 31, 2025 and 2024, respectively. The effect of these shares was anti-dilutive under the treasury stock method, as the assumed proceeds of the options and restricted stock per unit were above our average share price during the periods.

Previous wording

Earnings per share for the three and nine months ended September 30, 2024 compared to the corresponding periods in the prior year were impacted by the previously described factors impacting net income and a lower number of average shares outstanding.

Current wording

Earnings per share for the three months ended March 31, 2025 compared to the corresponding period in the prior year was impacted by the previously described factors impacting net income, offset slightly by a lower number of average shares outstanding.

Previous wording

We manage our business around the consumers and businesses we serve and the types of services we offer. Each of our segments addresses a different combination of customer groups, distribution networks, and services offered. Our segments are Consumer Money Transfer and Consumer Services. On August 4, 2021, we entered into an agreement to sell our Business Solutions business and the final closing for this transaction was on July 1, 2023. Accordingly, we no longer report Business Solutions revenues and operating expenses after July 1, 2023. Business Solutions revenues included in our Condensed Consolidated Statements of Income were $29.7 million and operating income was $3.7 million for the nine months ended September 30, 2023.

Current wording

We manage our business around the consumers and businesses we serve and the types of services we offer. Each of our segments addresses a different combination of customer groups, distribution networks, and services offered. Our segments are Consumer Money Transfer and Consumer Services.

Previous wording

During the three and nine months ended September 30, 2024 and 2023, we incurred costs associated with our operating expense redeployment program, as described above, primarily related to severance and expenses associated with streamlining our organizational and legal structure as well as costs related to the incremental non-cash amortization and impairment of acquired intangible assets in connection with recent business acquisitions. In addition, during the three and nine months ended September 30, 2024, we incurred impairment costs related to our assets in Russia and costs associated with operating the Russian entity, as we have decided to pursue either liquidating or selling these assets. In estimating this impairment, we did not impair the cash that we believe will be necessary to pay for future costs as we work to liquidate and exit the business. While certain of these expenses are identifiable to our segments, the expenses are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker (“CODM”) for purposes of performance assessment and resource allocation. These expenses are therefore excluded from our segment operating income results.

Current wording

During the three months ended March 31, 2025 and 2024, we incurred expenses that are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker (“CODM”) for purposes of performance assessment and resource allocation. These expenses are therefore excluded from our segment operating income results. Refer to Part I, Item 1, Financial Statements, Note 13, Segments for further discussion.

Previous wording

The following table sets forth the components of segment revenues as a percentage of the consolidated totals for the three and nine months ended September 30, 2024 and 2023:

Current wording

The following table sets forth the components of segment revenues as a percentage of the consolidated totals for the three months ended March 31, 2025 and 2024:

Previous wording

The following table sets forth our Consumer Money Transfer segment results of operations for the three and nine months ended September 30, 2024 and 2023:

Current wording

The following table sets forth our Consumer Money Transfer segment results of operations for the three months ended March 31, 2025 and 2024:

Previous wording

Our Consumer Money Transfer service facilitates money transfers sent from our retail agent locations worldwide and money transfer transactions conducted and funded through websites and mobile applications marketed under our brands (“Branded Digital”). The segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. We include Branded Digital transactions in our regions. By means of common processes and systems, these regions, including Branded Digital transactions, create one interconnected global network for consumer transactions, thereby constituting one Consumer Money Transfer money transfer business and one operating segment.

Current wording

Our Consumer Money Transfer service facilitates money transfers sent from our retail agent locations worldwide and money transfer transactions marketed under our brands and initiated through our or our third-party digital partners’ websites and mobile applications (“Branded Digital”). We exclude transactions and revenues generated from Iraq websites and mobile applications from the definition of Branded Digital, given the significant volatility in that business and our challenges in offering services in the country. The segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. We include Branded Digital transactions in our regions. By means of common processes and systems, these regions, including Branded Digital transactions, create one interconnected global network for consumer transactions, thereby constituting one Consumer Money Transfer money transfer business and one operating segment.

Previous wording

Transaction volume is the primary generator of revenue in our Consumer Money Transfer segment. A Consumer Money Transfer transaction constitutes the transfer of funds to a designated recipient utilizing one of our consumer money transfer services. The geographic split for transactions and revenue in the table that follows is determined based upon the region where the money transfer is initiated. Included in each region’s transaction and revenue percentages in the tables below are Branded Digital transactions for the three and nine months ended September 30, 2024 and 2023. Where reported separately in the discussion below, Branded Digital consists of 100% of the transactions conducted and funded through that channel.

Current wording

Transaction volume is the primary generator of revenue in our Consumer Money Transfer segment. A Consumer Money Transfer transaction constitutes the transfer of funds to a designated recipient utilizing one of our consumer money transfer services. The geographic split for transactions and revenue in the table that follows is determined based upon the region where the money transfer is initiated. Included in each region’s transaction and revenue percentages in the tables below are Branded Digital transactions for the three months ended March 31, 2025 and 2024. Where reported separately in the discussion below, Branded Digital consists of all transactions and revenue included under the definition provided above.

Previous wording

The table below sets forth revenue and transaction changes by geographic region compared to the prior year. Additionally, due to the significance of our Consumer Money Transfer segment to our overall results, we have also provided adjusted revenue results for our Consumer Money Transfer segment revenues, which are net of the impact of foreign currency hedges and Argentina inflation, as discussed above. Consumer Money Transfer segment adjusted revenue growth/(decline) is a non-GAAP financial measure, as further discussed in Revenues Overview above.

Current wording

The table below sets forth revenue and transaction changes by geographic region compared to the prior year. Additionally, we have also provided adjusted revenue results for our Consumer Money Transfer and Consumer Services segment revenues, which are net of the impact of foreign currency hedges and Argentina inflation, as discussed above. Consumer Money Transfer segment adjusted revenue growth/(decline) is a non-GAAP financial measure, as further discussed in Revenues Overview above.

Previous wording

Adjusted revenue growth assumes that revenues denominated in foreign currencies are translated to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the corresponding prior periods. LACA, total Consumer Money Transfer, and Branded Digital adjusted revenue growth excludes the effect of increases in local currency revenue due to inflation in Argentina, which is hyperinflationary. We calculate Argentina inflation as the revenue growth not attributable to either transaction growth or the change in price (revenue divided by principal).

Current wording

Adjusted revenue growth assumes that revenues denominated in foreign currencies are translated to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the corresponding prior period. LACA, total Consumer Money Transfer, and Branded Digital adjusted revenue growth also exclude the effect of increases in local currency revenue due to inflation in Argentina, which is hyperinflationary. We calculate Argentina inflation as the revenue growth not attributable to either transaction growth or the change in price (revenue divided by principal).

Previous wording

The table below sets forth regional revenues as a percentage of our Consumer Money Transfer revenue for the three and nine months ended September 30, 2024 and 2023:

Current wording

The table below sets forth regional revenues as a percentage of our Consumer Money Transfer revenue for the three months ended March 31, 2025 and 2024:

Previous wording

Our consumers transferred $25.9 billion and $26.0 billion in cross-border principal for the three months ended September 30, 2024 and 2023, respectively, and $76.4 billion and $76.5 billion in cross-border principal for the nine months ended September 30, 2024 and 2023, respectively. Consumer Money Transfer cross-border principal is the amount of consumer funds transferred to a designated recipient in a country or territory that differs from the country or territory from which the transaction was initiated. Consumer Money Transfer cross-border principal is a metric used by management to monitor and better understand the growth in our underlying business relative to competitors, as well as changes in our market share of global remittances.

Current wording

Our consumers transferred $25.8 billion and $24.6 billion in cross-border principal for the three months ended March 31, 2025 and 2024, respectively. Consumer Money Transfer cross-border principal is the amount of consumer funds transferred to a designated recipient in a country or territory that differs from the country or territory from which the transaction was initiated. Consumer Money Transfer cross-border principal is a metric used by management to monitor and better understand the growth in our underlying business relative to competitors, as well as changes in our market share of global remittances.

Previous wording

Consumer Money Transfer revenue decreased 9% and 6%, and transactions increased 3% and 4% for the three and nine months ended September 30, 2024, respectively, compared to the corresponding periods in the prior year. Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges and Argentina inflation, negatively impacted revenue by 1% for both the three and nine months ended September 30, 2024, compared to the corresponding periods in the prior year.

Current wording

Consumer Money Transfer revenue decreased 9%, and transactions increased 3% for the three months ended March 31, 2025, respectively, compared to the corresponding period in the prior year. Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges and Argentina inflation, negatively impacted revenue by 1% for the three months ended March 31, 2025, compared to the corresponding period in the prior year.

Previous wording

For the three and nine months ended September 30, 2024, in our Consumer Money Transfer regions, NA revenue decreased and was flat, respectively, and transactions increased compared to the corresponding periods in the prior year. Price reductions and declines in transactions sent within the United States were partially offset by growth in cross-border transactions sent from the United States. For the three and nine months ended September 30, 2024, our EU & CIS revenues were negatively impacted by price reductions and by one of our retail agents no longer offering cash-based services at its retail locations. Declines in revenue in the MEASA region were driven by a reduction in transactions originating from Iraq primarily driven by changes in monetary policy and related central bank actions, as discussed above.

Current wording

For the three months ended March 31, 2025, in our Consumer Money Transfer regions, NA revenue and transactions both decreased, compared to the corresponding period in the prior year. The region was impacted by price reductions and declines in transactions sent from the United States to Mexico and within the United States, as well as broader geopolitical and macroeconomic conditions, evolving migration patterns across the Americas, and a reduction in active agent locations in NA. For the three months ended March 31, 2025, our EU & CIS revenues increased due to growth in the U.K. and Spain. Declines in revenue in the MEASA region were driven by a reduction in transactions originating from Iraq primarily driven by changes in monetary policy and related central bank actions, as discussed above. The revenue decline in LACA was primarily driven by decreases in Ecuador and Mexico and was impacted by evolving migration patterns across the Americas.

Previous wording

Consumer Money Transfer operating income for the three and nine months ended September 30, 2024 decreased compared to the corresponding periods in the prior year due to a decrease in revenue, as discussed above, partially offset by reduced agent commissions and employee incentive compensation. In addition, for the nine months ended September 30, 2024, operating income was negatively impacted by increases in certain variable expenses, including non-credit losses and bank fees, fluctuations in the United States dollar compared to foreign currencies, and an increase in advertising expenditure.

Current wording

Consumer Money Transfer operating income for the three months ended March 31, 2025 decreased compared to the corresponding period in the prior year due to a decrease in revenue, as discussed above, partially offset by decreases in agent commissions, advertising costs, technology expenses, and employee compensation, including incentive compensation.

Previous wording

The following table sets forth Consumer Services results for the three and nine months ended September 30, 2024 and 2023:

Current wording

The following table sets forth Consumer Services results for the three months ended March 31, 2025 and 2024:

Previous wording

For the three and nine months ended September 30, 2024 compared to the corresponding periods in the prior year, Consumer Services revenues increased primarily due to an increase in retail foreign exchange services, growth in new services we are continuing to introduce to our customers, including media network, and an increase in our money order business. Fluctuations in the United States dollar compared to foreign currencies, net of the impact of Argentina inflation, resulted in an increase to revenue growth of 17% and 6% for the three and nine months ended September 30, 2024, respectively, relative to the corresponding periods in the prior year.

Current wording

For the three months ended March 31, 2025 relative to the corresponding period in the prior year, Consumer Services revenues increased primarily due to the impact of Argentina inflation, net of fluctuations in the United States dollar compared to the Argentine peso.

Previous wording

Our primary source of liquidity has been cash generated from our operating activities, primarily from net income and fluctuations in working capital. Our working capital is affected by the timing of payments for employee and agent incentives, interest payments on our outstanding borrowings, and timing of income tax payments, among other items. Many of our annual employee incentive compensation and agent incentive payments are made in the first quarter following the year they were incurred. The majority of our interest payments are due in the second and fourth quarters. The annual payments resulting from the United States tax reform legislation enacted in 2017 (the “Tax Act”) include amounts related to the United States taxation of certain previously undistributed earnings of foreign subsidiaries. The final payment is due in the second quarter of 2025.

Current wording

Our primary source of liquidity has been cash generated from our operating activities, primarily from net income and fluctuations in working capital. Our working capital is affected by the timing of payments for employee and agent incentives, interest payments on our outstanding borrowings, and timing of income tax payments, among other items. Many of our annual employee incentive compensation and agent incentive payments are made in the first quarter following the year they were incurred. The majority of our interest payments are due in the second and fourth quarters, which results in a decrease in the amount of cash provided by operating activities in those quarters and a corresponding increase to the first and third quarters. The annual payments resulting from the United States tax reform legislation enacted in 2017 (the “Tax Act”) include amounts related to the United States taxation of certain previously undistributed earnings of foreign subsidiaries. The final payment of approximately $221 million is due in the second quarter of 2025.

Previous wording

We currently believe we have adequate liquidity to meet our business needs, including payments under our debt and other obligations, through our existing cash balances, our ability to generate cash flows through operations, and our $1.25 billion revolving credit facility (“Revolving Credit Facility”), which expires in November 2028 and supports our commercial paper program. Our commercial paper program enables us to issue unsecured commercial paper notes in an amount not to exceed $1.25 billion outstanding at any time, reduced to the extent of any borrowings outstanding on our Revolving Credit Facility. In addition, on June 25, 2024, we entered into a delayed draw term loan credit agreement providing the capacity to borrow up to $800 million under an unsecured term loan facility (the “Term Loan Facility”), with the option to increase the commitments under the agreement by an amount such that the commitments do not exceed $1.0 billion in the aggregate (after giving effect to any such increases), subject to certain provisions, as further described below.

Current wording

We currently believe we have adequate liquidity to meet our business needs, including payments under our debt and other obligations, through our existing cash balances, our ability to generate cash flows through operations, and our revolving credit facility (“Revolving Credit Facility”), which we increased to $1.6 billion on February 28, 2025 and which supports our commercial paper program. Our commercial paper program enables us to issue unsecured commercial paper notes in an amount not to exceed $1.6 billion outstanding at any time, reduced to the extent of any borrowings outstanding on our Revolving Credit Facility.

Previous wording

As of September 30, 2024 and December 31, 2023, we had Cash and cash equivalents of $1,097.6 million and $1,268.6 million, respectively.

Current wording

As of March 31, 2025 and December 31, 2024, we had Cash and cash equivalents of $1,289.0 million and $1,474.0 million, respectively.

Previous wording

Investment securities, classified within Settlement assets on the Condensed Consolidated Balance Sheets, were $1,512.3 million and $1,458.1 million as of September 30, 2024 and December 31, 2023, respectively, and consist primarily of highly-rated state and municipal debt securities. These investment securities are held in order to comply with state licensing requirements in the United States and are required to have credit ratings of “A-” or better from a major credit rating agency. Refer to Part 1, Item 1, Financial Statements, Note 8, Settlement Assets and Obligations for more details regarding investment securities.

Current wording

Investment securities, net, classified within Settlement assets on the Condensed Consolidated Balance Sheets, were $1,440.5 million and $1,332.2 million as of March 31, 2025 and December 31, 2024, respectively, and consist primarily of highly-rated state and municipal debt securities. These investment securities are held in order to comply with state licensing requirements in the United States and are required to have credit ratings of “A-” or better from a major credit rating agency. Refer to Part 1, Item 1, Financial Statements, Note 7, Settlement Assets and Obligations, for more details regarding investment securities.

Previous wording

As of September 30, 2024, we had outstanding borrowings at par value of $2,595.0 million. The significant majority of these outstanding borrowings consist of unsecured fixed-rate notes with maturities ranging from 2025 to 2040.

Current wording

As of March 31, 2025, we had outstanding borrowings at par value of $2,800.0 million. The majority of these outstanding borrowings consist of unsecured fixed-rate notes with maturities ranging from 2026 to 2040.

Previous wording

On June 25, 2024, we entered into the Term Loan Facility. We have until December 15, 2024 to draw upon the Term Loan Facility, which matures on the third anniversary of the initial funding date. We have the option to increase the commitments under the Term Loan Facility by an amount such that the commitments do not exceed $1.0 billion in the aggregate (after giving effect to any such increases). Any such increases would be subject to obtaining additional commitments from existing or new lenders under the Term Loan Facility. We plan to use the proceeds from the Term Loan Facility to refinance our issued and outstanding 2.850% notes due January 2025, to reduce commercial paper balances, and for general corporate purposes.

Current wording

As of March 31, 2025 and December 31, 2024, we had $800.0 million outstanding under our unsecured term loan facility (“Term Loan Facility”), and such borrowings mature on December 13, 2027. We have the option to increase the commitments under the Term Loan Facility by an amount such that the commitments do not exceed $1.0 billion in the aggregate (after giving effect to any such increases). Any such increases would be subject to obtaining additional commitments from existing or new lenders under the Term Loan Facility. We used the proceeds from the Term Loan Facility borrowings to repay our 2.850% notes due January 2025, to reduce commercial paper balances, and for general corporate purposes.

Previous wording

Our Revolving Credit Facility provides for unsecured financing facilities in an aggregate amount of $1.25 billion, including a $250.0 million letter of credit sub-facility. Interest due under the Revolving Credit Facility is payable according to the terms of that borrowing. Generally, interest under the Revolving Credit Facility is calculated using either (i) an adjusted term Secured Overnight Financing Rate, or other applicable benchmark based on the currency of the borrowing, plus an interest rate margin determined on a sliding scale from 0.920% to 1.425% based on our credit rating (currently 1.140%) or (ii) a base rate plus a margin determined on a sliding scale from 0.000% to 0.425% based on our credit rating (currently 0.140%). A facility fee on the total amount of the facility is also payable quarterly, regardless of usage, and such facility fee is determined on a sliding scale from 0.080% to 0.200% based on our credit rating (currently 0.110%).

Current wording

Interest due under the Revolving Credit Facility is payable according to the terms of that borrowing. Generally, interest under the Revolving Credit Facility is calculated using either (i) an adjusted term SOFR, or other applicable benchmark based on the currency of the borrowing, plus an interest rate margin determined on a sliding scale from 0.920% to 1.425% based on our credit rating (currently 1.140%) or (ii) a base rate plus a margin determined on a sliding scale from 0.000% to 0.425% based on our credit rating (currently 0.140%). A facility fee on the total amount of the facility is also payable quarterly, regardless of usage, and such facility fee is determined on a sliding scale from 0.080% to 0.200% based on our credit rating (currently 0.110%).

Previous wording

The purpose of our Revolving Credit Facility, which is diversified through a group of 16 participating institutions, is to provide general liquidity and to support our commercial paper program, which we believe enhances our short-term credit rating. The largest commitment from any single financial institution within the total committed balance of $1.25 billion is approximately 14%. As of September 30, 2024, we had no outstanding borrowings under our Revolving Credit Facility. If the amount available to borrow under the Revolving Credit Facility decreased, or if the Revolving Credit Facility were eliminated, the cost and availability of borrowing under the commercial paper program may be impacted.

Current wording

The purpose of our Revolving Credit Facility, which is diversified through a group of 19 participating institutions, is to provide general liquidity and to support our commercial paper program, which we believe enhances our short-term credit rating. The largest commitment from any single financial institution within the total committed balance of $1.6 billion is approximately 12%. As of March 31, 2025, we had no outstanding borrowings under the facility. If the amount available to borrow under the Revolving Credit Facility decreased, or if the Revolving Credit Facility were eliminated, the cost and availability of borrowing under the commercial paper program may be impacted.

Previous wording

Pursuant to our commercial paper program, we may issue unsecured commercial paper notes in an amount not to exceed $1.25 billion outstanding at any time, reduced to the extent of borrowings outstanding on our Revolving Credit Facility. Our commercial paper borrowings may have maturities of up to 397 days from date of issuance. Interest rates for borrowings are based on market rates at the time of issuance. We had $445.0 million of commercial paper borrowings outstanding as of September 30, 2024. Our commercial paper borrowings as of September 30, 2024 had a weighted-average annual interest rate of approximately 5.1% and a weighted-average term of approximately 2 days. During the nine months ended September 30, 2024, the average commercial paper balance outstanding was $632.6 million, and the maximum balance outstanding was $880.3 million. Proceeds from our commercial paper borrowings were used for general corporate purposes and working capital needs, including the settlement of our money transfer obligations prior to collecting receivables from agents or others.

Current wording

Pursuant to our commercial paper program, we may issue unsecured commercial paper notes in an amount not to exceed $1.6 billion outstanding at any time, reduced to the extent of borrowings outstanding on our Revolving Credit Facility. Our commercial paper borrowings may have maturities of up to 397 days from date of issuance. Interest rates for borrowings are based on market rates at the time of issuance. We had $350.0 million of commercial paper borrowings outstanding as of March 31, 2025. Our commercial paper borrowings as of March 31, 2025 had a weighted-average annual interest rate of approximately 4.6% and a weighted-average term of approximately 1 day. Proceeds from our commercial paper borrowings were used for general corporate purposes and working capital needs, including the settlement of our money transfer obligations prior to collecting receivables from agents or others.

Previous wording

The total aggregate amount paid for purchased and developed software, contract costs, and purchases of property and equipment was $91.8 million and $117.2 million for the nine months ended September 30, 2024 and 2023, respectively. Amounts paid for new and renewed agent contracts vary depending on the terms of existing contracts as well as the timing of new and renewed contract signings. Other capital expenditures during these periods included investments in our information technology infrastructure.

Current wording

The total aggregate amount paid for purchased and developed software, contract costs, and purchases of property and equipment was $24.4 million and $35.1 million for the three months ended March 31, 2025 and 2024, respectively. Capital expenditures during these periods included investments in our information technology infrastructure. Amounts paid for new and renewed agent contracts vary depending on the terms of existing contracts as well as the timing of new and renewed contract signings.

Previous wording

On February 10, 2022, our Board of Directors authorized $1.0 billion of common stock repurchases through December 31, 2024. During the nine months ended September 30, 2024 and 2023, 13.9 million and 7.8 million shares were repurchased under this authorization for $177.3 million and $100.0 million, respectively, excluding commissions, at an average cost of $12.75 and $12.88, respectively. As of September 30, 2024, $170.9 million remained available under this share repurchase authorization.

Current wording

During the three months ended March 31, 2025 and 2024, 7.0 million and 11.8 million shares were repurchased for $75.0 million and $150.0 million, respectively, excluding commissions, at an average cost of $10.76 and $12.66, respectively, under the share repurchase authorizations approved by our Board of Directors, including one which expired on December 31, 2024. On December 13, 2024, our Board of Directors authorized $1.0 billion of common stock repurchases with no expiration date. As of March 31, 2025, $925.0 million remained available under this share repurchase authorization.

Previous wording

Our Board of Directors declared quarterly cash dividends of $0.235 per common share in the first, second, and third quarters of 2024, representing $238.9 million in total dividends.

Current wording

Our Board of Directors declared quarterly cash dividends of $0.235 per common share in the first quarter of 2025, representing $78.8 million in total dividends.