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 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.

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, slowdowns in travel, 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, armed conflicts or wars, 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; the development, deployment, and use of artificial intelligence ("AI"), machine learning, and automated decision-making technologies in our operations, including risks relating to system performance, data quality, regulatory compliance, bias, or unintended outcomes; 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 s…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Consumer Money Transfer - Our Consumer Money Transfer segment facilitates money transfers, which are primarily sent from our retail agent locations worldwide or through websites and mobile devices. Our money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers.

Current wording

Consumer Money Transfer - Our Consumer Money Transfer segment facilitates money transfers, which are primarily sent from our retail agent and Company-operated locations worldwide or through websites and mobile devices. Our money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers.

Previous wording

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

Current wording

Consumer Services - Our Consumer Services segment includes our bill payment services, money order services, travel money services, check acceptance services, media network, prepaid cards, lending partnerships, and digital wallets.

Previous wording

On August 10, 2025, we entered into an agreement to purchase the entire share capital of International Money Express, Inc. (“Intermex”) for approximately $500 million in cash. This transaction is expected to close in mid-2026 subject to Intermex stockholder and customary regulatory approvals. Intermex is a leading omnichannel money transfer provider, focused primarily on the United States to Latin America and the Caribbean corridors, through a network of agent retail locations, Intermex-operated stores, its mobile app, and websites. We believe this acquisition will strengthen Western Union's retail offering in the United States, expand market coverage in high-potential geographies, and accelerate digital new customer acquisition.

Current wording

On August 10, 2025, we entered into an agreement to purchase the entire share capital of International Money Express, Inc. (“Intermex”) for approximately $500 million in cash and repay all of Intermex's outstanding indebtedness under their revolving credit facility. This transaction is expected to close in the second quarter of 2026, subject to the satisfaction of customary closing conditions, including receipt of remaining regulatory approvals. Intermex is a leading omnichannel money transfer provider, focused primarily on the United States to Latin America and the Caribbean corridors, through a network of agent retail locations, Intermex-operated stores, its mobile app, and websites.

Previous wording

The following discussion of our consolidated results of operations and segment results refers to the three and nine months ended September 30, 2025 compared to the same periods 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.

Current wording

The following discussion of our consolidated results of operations and segment results refers to the three months ended March 31, 2026 compared to the same period in 2025. 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, 2025 and 2024:

Current wording

The following table sets forth our consolidated results of operations for the three months ended March 31, 2026 and 2025:

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 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 were also net of the impact of Argentina inflation while its economy was hyperinflationary. Beginning in the second quarter of 2025, we no longer exclude the effect of Argentina hyperinflation, in light of significantly moderating inflation in the Argentine economy. 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 and nine months ended September 30, 2025 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 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, 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, 2026 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, 2025 and 2024:

Current wording

The following table sets forth our consolidated revenue results for the three months ended March 31, 2026 and 2025:

Previous wording

Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges and Argentina hyperinflation, resulted in an increase to revenues of $15.1 million and $33.5 million for the three and nine months ended September 30, 2025, respectively, when compared to the corresponding periods in the prior year. Beginning in the second quarter of 2025, we are no longer adjusting for the estimated impact of Argentina hyperinflation as inflation had moderated from over 200% at times over the past few years to less than 50% in the second quarter and has remained at that level since. For the first quarter of 2025, we calculated Argentina hyperinflation 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, resulted in an increase to revenues of $12.7 million for the three months ended March 31, 2026, when compared to the corresponding period in the prior year.

Previous wording

In addition to the impacts from foreign currency, net of Argentina hyperinflation, for the three and nine months ended September 30, 2025 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 1% and 3%, respectively. For both the three and nine months ended September 30, 2025, we continued to experience decreases in transactions and revenues in the North America and Latin America and the Caribbean regions of our Consumer Money Transfer segment, as further discussed below.

Current wording

For the three months ended March 31, 2026, revenues and adjusted revenues were primarily impacted by a decrease in transactions and revenues in the North America and Latin America and the Caribbean regions of our Consumer Money Transfer segment, partially offset by revenue growth in our Consumer Services segment, as further discussed below.

Previous wording

Cost of services primarily consists of agent commissions, which represented nearly 60% of total cost of services for the three and nine months ended September 30, 2025 and 2024. For the three and nine months ended September 30, 2025, cost of services decreased compared to the corresponding periods 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. In addition, the decrease in cost of services for the nine months ended September 30, 2025 compared to the corresponding period in the prior year was partially offset by higher consumer fraud losses, and the three and nine months ended September 30, 2024 included expenses associated with our operating expense redeployment program.

Current wording

Cost of services primarily consists of agent commissions, which represented approximately 55% of total cost of services for the three months ended March 31, 2026 and 2025. For the three months ended March 31, 2026, cost of services increased compared to the corresponding period in the prior year primarily due to an increase in employee-related and other expenses associated with our Eurochange Limited (“Eurochange”) acquisition and other immaterial acquisitions that expanded our Company-operated locations, in addition to increases in direct transactional expenses including credit losses, agent commissions, and bank fees.

Previous wording

Total other expense, net increased for the three and nine months ended September 30, 2025, when compared to the corresponding periods in the prior year, primarily due to an increase in interest expense associated with our term loan facility borrowings.

Current wording

Total other expense, net increased for the three months ended March 31, 2026, when compared to the corresponding period in the prior year, primarily due to an increase in interest expense associated with our commercial paper borrowings.

Previous wording

Our effective tax rates on pre-tax income were 16.7% and (95.2)% for the three months ended September 30, 2025 and 2024, respectively, and 18.8% and (16.5)% for the nine months ended September 30, 2025 and 2024, respectively. For the three and nine months ended September 30, 2025 compared to the corresponding periods in the prior year, the change in the effective tax rate was primarily due to a settlement of the IRS examination of our 2017 and 2018 federal income tax returns in the three months ended September 30, 2024, partially offset by the reorganization of our international operations, which took place during the year ended December 31, 2024, and discrete items.

Current wording

Our effective tax rates on pre-tax income were 28.1% and 16.1% for the three months ended March 31, 2026 and 2025, respectively. For the three months ended March 31, 2026 compared to the corresponding period in the prior year, the effective tax rate increased primarily due to discrete expenses in the current period related to the reorganization of our international operations, compared to discrete benefits in the prior period.

Previous wording

During the three and nine months ended September 30, 2025, both basic and diluted earnings per share were $0.43 and $1.17, respectively. During the three and nine months ended September 30, 2024, both basic and diluted earnings per share were $0.78 and $1.61, 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 17.1 million and 11.3 million for the three months ended September 30, 2025 and 2024, respectively, and 16.1 million and 11.7 million for the nine months ended September 30, 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.

Current wording

During the three months ended March 31, 2026 and 2025, basic earnings per share were $0.21 and $0.37, respectively, and diluted earnings per share were $0.20 and $0.36, 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 16.0 million and 14.0 million for the three months ended March 31, 2026 and 2025, 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, 2025 compared to the corresponding periods in the prior year were impacted by the previously described factors impacting net income, partially offset by a lower number of average shares outstanding.

Current wording

Earnings per share for the three months ended March 31, 2026 compared to the corresponding period in the prior year were impacted by the previously described factors impacting net income, partially offset by a lower number of average shares outstanding.

Previous wording

During the three and nine months ended September 30, 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 14, Segments for further discussion.

Current wording

During the three months ended March 31, 2026 and 2025, 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 14, 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, 2025 and 2024:

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, 2026 and 2025:

Previous wording

The following table sets forth our Consumer Money Transfer segment results of operations for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table sets forth our Consumer Money Transfer segment results of operations for the three months ended March 31, 2026 and 2025:

Previous 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.

Current wording

Our Consumer Money Transfer service facilitates money transfers sent from our retail agent and Company-operated locations worldwide and money transfer transactions marketed under our brands and initiated through our websites and mobile applications and our third-party digital partners’ websites and mobile applications (“Branded Digital”). This 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. 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 disruptions in offering services in the country. 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 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, 2025 and 2024. Where reported separately in the discussion below, Branded Digital consists of all transactions and revenue included under the definition provided above.

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, 2026 and 2025. 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, 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 hyperinflation, 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, 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 also historically excluded the effect of increases in local currency revenue due to hyperinflation in Argentina. Beginning in the second quarter of 2025, we are no longer adjusting for the estimated impact of Argentina hyperinflation as inflation had moderated from over 200% at times over the past few years to less than 50% in the second quarter and has remained at that level since. For the first quarter of 2025, we calculated Argentina hyperinflation 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 periods.

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, 2025 and 2024:

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, 2026 and 2025:

Previous wording

Our consumers transferred $27.2 billion and $25.9 billion in cross-border principal for the three months ended September 30, 2025 and 2024, respectively, and $79.7 billion and $76.4 billion in cross-border principal for the nine months ended September 30, 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.

Current wording

Our consumers transferred $27.0 billion and $25.8 billion in cross-border principal for the three months ended March 31, 2026 and 2025, 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 6% and 8%, and transactions decreased 3% and 1% for the three and nine months ended September 30, 2025, 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 hyperinflation in the first quarter of 2025, positively impacted revenue by 1% for the three months ended September 30, 2025 and had no impact to revenue for the nine months ended September 30, 2025, compared to the corresponding periods in the prior year.

Current wording

Consumer Money Transfer revenue decreased 3% and transactions remained flat for the three months ended March 31, 2026, 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, positively impacted revenue by 3% for the three months ended March 31, 2026, compared to the corresponding period in the prior year.

Previous wording

For the three and nine months ended September 30, 2025, in our Consumer Money Transfer regions, NA revenue and transactions decreased, compared to the corresponding periods in the prior year. The region was impacted by 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, a reduction in active agent locations, and price reductions. For the three and nine months ended September 30, 2025, our EU & CIS revenues increased due to growth in Spain and the U.K. For the three and nine months ended September 30, 2025, declines in MEASA revenues compared to the prior period were primarily driven by a reduction in transactions originating from Iraq due to changes in monetary policy and related central bank actions, as discussed above, as well as revenue declines in Saudi Arabia. The revenue decline in LACA was primarily driven by decreases in Ecuador, Mexico, and Brazil and was impacted by evolving migration patterns across the Americas.

Current wording

For the three months ended March 31, 2026, in our Consumer Money Transfer regions, NA revenue and transactions decreased, compared to the corresponding period in the prior year. The region was impacted by declines in revenues and transactions sent from and within the United States, which has been impacted by broader geopolitical and macroeconomic conditions, including impacts from immigration policies. For the three months ended March 31, 2026, our EU & CIS revenues increased primarily due to fluctuations in the United States dollar compared to foreign currencies in that region. For the three months ended March 31, 2026, our MEASA transactions increased, which was primarily driven by growth in the region's Branded Digital transactions, which have lower revenues per transaction. For the three months ended March 31, 2026, the revenue decline in LACA was primarily driven by decreases in Mexico and Brazil and was also impacted by broader geopolitical and macroeconomic conditions.

Previous wording

Consumer Money Transfer operating income decreased for the three and nine months ended September 30, 2025 compared to the corresponding periods in the prior year due to a decrease in revenue, as discussed above, partially offset by decreases in agent commissions, advertising costs, and technology expenses. For the nine months ended September 30, 2025 compared to the corresponding period in the prior year, Consumer Money Transfer operating income also decreased due to higher consumer fraud losses, partially offset by decreases in employee compensation, including incentive compensation, and fluctuations between the United States dollar and foreign currencies.

Current wording

Consumer Money Transfer operating income decreased for the three months ended March 31, 2026 compared to the corresponding period in the prior year due to a decrease in revenue, fluctuations between the United States dollar and foreign currencies, and an increase in the costs for professional services.

Previous wording

The following table sets forth Consumer Services results for the three and nine months ended September 30, 2025 and 2024:

Current wording

The following table sets forth Consumer Services results for the three months ended March 31, 2026 and 2025:

Previous wording

The following table sets forth our Consumer Services revenue results for the three and nine months ended September 30, 2025 and 2024. Consumer Services segment adjusted revenue growth/(decline) is a non-GAAP financial measure, as further discussed in Revenues Overview above.

Current wording

The following table sets forth our Consumer Services revenue results for the three months ended March 31, 2026 and 2025. Consumer Services segment adjusted revenue growth/(decline) is a non-GAAP financial measure, as further discussed in Revenues Overview above.

Previous wording

Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges and Argentina hyperinflation, resulted in a decrease to Consumer Services revenues of $0.4 million and an increase of $23.6 million for the three and nine months ended September 30, 2025, respectively, when compared to the corresponding periods in the prior year. Beginning in the second quarter of 2025, we are no longer adjusting for the estimated impact of Argentina hyperinflation as inflation had moderated from over 200% at times over the past few years to less than 50% in the second quarter and has remained at that level since. For the first quarter of 2025, we calculated Argentina hyperinflation 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, resulted in a decrease to Consumer Services revenues of $9.8 million for the three months ended March 31, 2026, when compared to the corresponding period in the prior year.

Previous wording

For the three and nine months ended September 30, 2025 relative to the corresponding periods in the prior year, Consumer Services GAAP and Adjusted revenues increased primarily due to revenue growth in our travel money services, including the benefit from the acquisition of Eurochange Limited, and growth in our cash-based bill payments services offered at retail locations in Argentina.

Current wording

For the three months ended March 31, 2026 relative to the corresponding period in the prior year, Consumer Services GAAP and Adjusted revenues increased primarily due to revenue growth in our travel money and check acceptance services, including the benefit from Eurochange and other immaterial acquisitions, and growth in our cash-based bill payments services offered at retail locations in Argentina.

Previous wording

Consumer Services operating income for the three and nine months ended September 30, 2025 compared to the corresponding periods in the prior year was impacted by an increase in revenue, as discussed above, partially offset by an increase in expenses associated with the expansion of our travel money services.

Current wording

Consumer Services operating income for the three months ended March 31, 2026 compared to the corresponding period in the prior year was negatively impacted by an increase in employee-related and other expenses associated with Eurochange and other immaterial acquisitions that expanded our Company-operated locations and increases in agent commissions and credit losses, partially offset by an increase in revenue.

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, 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 $220 million was made during 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.

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 revolving credit facility (“Revolving Credit Facility”), which we increased to $1.62 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 $1.62 billion outstanding at any time, reduced to the extent of any borrowings outstanding on our Revolving Credit Facility.

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, our revolving credit facility (“Revolving Credit Facility”), and our $800 million delayed draw term loan credit agreement (“Delayed Draw Term Loan Facility”). The Revolving Credit Facility provides for aggregate revolving credit commitments of $1.62 billion and supports our commercial paper program. Our commercial paper program enables us to issue unsecured commercial paper notes in an amount not to exceed $1.62 billion outstanding at any time, reduced to the extent of any borrowings outstanding on our Revolving Credit Facility.

Previous wording

As of September 30, 2025 and December 31, 2024, we had Cash and cash equivalents of $947.8 million and $1,474.0 million, respectively.

Current wording

As of March 31, 2026 and December 31, 2025, we had Cash and cash equivalents of $909.2 million and $1,234.4 million, respectively.

Previous wording

Investment securities, net, classified within Settlement assets on the Condensed Consolidated Balance Sheets, were $1,449.4 million and $1,332.2 million as of September 30, 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 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 $1,446.5 million and $1,445.0 million as of March 31, 2026 and December 31, 2025, 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 I, Item 1, Financial Statements, Note 8, Settlement Assets and Obligations, for more details regarding investment securities.

Previous wording

Cash provided by operating activities increased to $408.3 million during the nine months ended September 30, 2025, from $272.3 million in the corresponding period in the prior year. Cash provided by operating activities can be impacted by changes to our consolidated net income, in addition to fluctuations in our working capital balances, among other factors.

Current wording

Cash provided by operating activities decreased to $109.0 million during the three months ended March 31, 2026, from $148.2 million in the corresponding period in the prior year. Cash provided by operating activities can be impacted by changes to our consolidated net income, in addition to fluctuations in our working capital balances, among other factors.

Previous wording

As of September 30, 2025, we had outstanding borrowings at par value of $2,599.7 million. The majority of these outstanding borrowings consist of unsecured fixed-rate notes with maturities ranging from 2026 to 2040.

Current wording

As of March 31, 2026, we had outstanding borrowings at par value of $2,634.0 million. The majority of these outstanding borrowings consist of unsecured fixed-rate notes with maturities ranging from 2029 to 2040.

Previous wording

Our Revolving Credit Facility provides for unsecured financing facilities, including a $250.0 million letter of credit subfacility and $300.0 million swing line sublimit, and allows us to draw loans payable based upon the Secured Overnight Financing Rate (“SOFR”), the Euro Interbank Offered Rate, or the Sterling Overnight Index Average. On February 28, 2025, we increased the aggregate revolving credit commitments to $1.62 billion. The Revolving Credit Facility matures on November 30, 2029.

Current wording

Our Revolving Credit Facility provides for unsecured financing facilities, including a $250.0 million letter of credit subfacility and $300.0 million swing line sublimit, and allows us to draw loans payable based upon the Secured Overnight Financing Rate (“SOFR”), the Euro Interbank Offered Rate, or the Sterling Overnight Index Average. The Revolving Credit Facility provides for aggregate revolving credit commitments of $1.62 billion and matures on November 30, 2029.

Previous wording

Pursuant to our commercial paper program, we may issue unsecured commercial paper notes in an amount not to exceed $1.62 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 $100.0 million of commercial paper borrowings outstanding as of September 30, 2025. Our commercial paper borrowings as of September 30, 2025 had a weighted-average annual interest rate of approximately 4.3% 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.

Current wording

Pursuant to our commercial paper program, we may issue unsecured commercial paper notes in an amount not to exceed $1.62 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 $299.4 million of commercial paper borrowings outstanding as of March 31, 2026. Our commercial paper borrowings as of March 31, 2026 had a weighted-average annual interest rate of approximately 4.0% and a weighted-average term of approximately 4 days. Proceeds from our commercial paper borrowings were used for general corporate purposes and working capital needs.