What Wise (WISE) Said on Its Q2 Earnings Call

Key Points

• Wise reported strong operating growth: Active customers rose 20% year over year to 12.5 million, cross-border volume increased 22% to $72 billion, and customer holdings grew 28% to $44 billion. Card spending also climbed 30% to $14 billion.
• Revenue growth broadened beyond transfers: Net revenue increased 21% to $739 million, supported by 34% growth in cards and other revenue and an 18% rise in interest income, despite lower cross-border take rates and declining gross yields.
• Outlook remains favorable: Wise raised its fiscal 2027 net revenue growth expectation to the upper half of its 15%–20% constant-currency range while maintaining its income-before-tax margin outlook near the top of the 20%–25% range. The company continues investing in U.S. and business-customer growth, platform expansion, and selective pricing reductions.

Wise LON: WISE reported continued growth in active customers, cross-border volumes and customer balances in its second quarter of fiscal 2027, while maintaining its full-year margin outlook and raising its net revenue growth expectation to the upper half of its prior range.

During the results call, the company said active customers rose 20% year over year to 12.5 million, while cross-border volume increased 22% to $72 billion. Business-related cross-border volume grew 32%, and business active customers increased 26%, according to the operator presenting the results.

Customer holdings increased 28% year over year to $44 billion, including $11.5 billion held through Wise Assets. Card spending rose 30% to $14 billion as customers increasingly used Wise for everyday financial activity in addition to international transfers.

Revenue growth supported by cards and interest income

Cross-border revenue rose 16% year over year to $355 million. The company said the increase reflected 22% volume growth, partly offset by a reduction in its cross-border take rate to 49 basis points from 52 basis points a year earlier.

The take rate declined by one basis point from the first quarter’s 50 basis points. Management said the decrease was less than its previously communicated expectation of roughly two basis points, partly because the latest price reduction was implemented in August and because of changes in transaction mix.

Wise said it saw lower growth in high-value U.S. transactions, which typically carry lower take rates, following a slight weakening of the U.S. dollar compared with the first quarter.

Cards and other revenue increased 34% year over year to $206 million, driven primarily by card revenue. The company cited higher business card spending in the U.S. and growing personal-card adoption in the U.S. and Asia-Pacific region. Total transaction revenue rose 22% to $551 million.

Interest income reached $238 million, up 18% from a year earlier. Customers held $32 billion in Wise Accounts at the end of September 2026, a 22% increase year over year. However, the company said growth in balances did not fully translate into interest-income growth because gross yields declined to 2.9% from 3.1% in the prior-year quarter.

Combined customer assets, including holdings under custody, totaled $44 billion. Net revenue increased 21% year over year to $739 million, with non-cross-border activity accounting for 52% of net revenue during the quarter.

U.S. growth and business customer initiatives

Management described the U.S. as Wise’s fastest-growing region, followed by Asia-Pacific. The company said its U.S. momentum has been supported by marketing campaigns and by services aimed at business customers.

In response to questions about small and medium-sized business growth, the operator said Wise has dedicated a service team to proactively contact businesses and help them make fuller use of its offerings. The company is also seeking to embed its services in customers’ internal workflows through application programming interfaces and integrations with local accounting software providers.

The operator cited examples including Visma in the Nordic region, Sage in the U.K. and DATEV in Germany as the types of local accounting software used by small businesses.

Wise also highlighted operational progress during the quarter, including its ninth direct integration in Malaysia, the launch of the Wise Account and Wise Card in Thailand, Wise Assets in New Zealand, and additional platform partnerships. Management also referenced launches including a Canadian checking account, travel cards in Israel and Thailand, and eSIM services.

Platform business expands

The company said its platform business represented 6% of cross-border volume at the end of the quarter and remained on track toward its medium-term target of 10% of cross-border volume.

Management said existing platform customers are adding routes and services over time. It also identified OakNorth and Vivid as newly live platform customers. The operator said Wise continued to see a promising pipeline of prospective partners.

Platform pricing varies by customer and service scope, such as whether Wise conducts customer onboarding, but management said the average platform take rate is about 40 basis points, compared with 49 basis points for Wise’s overall cross-border business at quarter end.

The company said it was not aware of any platform customer churn and expressed confidence in its win rate, citing its direct payment-system integrations and pricing.

Outlook, pricing and one-off costs

Wise now expects fiscal 2027 net revenue growth to land in the upper half of its 15% to 20% constant-currency range. It continues to expect full-year income-before-tax margin near the top of its 20% to 25% range.

For the first half, the company said net revenue growth was about 22% on a constant-currency basis and projected an income-before-tax margin of roughly 23%, including one-off expenses equivalent to about two percentage points of margin.

Those one-off expenses include approximately $15 million related to Wise’s dual listing. Management said other one-off administrative, legal and finance-related costs were separate from the listing and were roughly similar in size to the $15 million listing expense.

The company reiterated its intention to reduce its take rate by roughly one to two basis points per quarter when efficiency gains and investment capacity permit. Management said price reductions are intended to support long-term growth rather than generate an immediate volume response, and that pricing decisions will be made only when they can be sustained without compromising targeted margins.

Wise said recent rate increases by the U.S. Federal Reserve and European Central Bank were reflected in its outlook, though it did not assume further increases during the rest of the year. Management said any additional interest income would be considered for reinvestment, but stressed that the company does not want its investment strategy to depend on cyclical interest-rate movements.

About Wise (LON:WISE)

Wise plc provides cross-border and domestic financial services for personal and business customers in the United Kingdom, rest of Europe, the Asia-Pacific, North America, and internationally. Its product portfolio includes international money transfer, wise account, international debit card, amount transfer, receive money, wise platform, business debit card, and mass payment services. The company was formerly known as 456 Newco plc and changed its name to Wise plc in June 2021. Wise plc was founded in 2010 and is based in London, the United Kingdom.

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