Western Union (WU) Financials

Western Union Financial Summary and Trends Analysis (Last Four Years)

Western Union (NYSE: WU) has shown key financial performance metrics and balance sheet positions over the last four years, including Q1 2025 data. Below is an assessment of the financial trends regarding revenues, expenses, net income, cash flow, and balance sheet strength that retail investors should consider.

• Consistent Revenue Generation: Western Union's total revenue across the quarters consistently remained around $1 billion, with Q1 2025 total revenue at $951 million, slightly lower than the roughly $1.02 billion seen in early 2024 but still substantial.
• Stable Non-Interest Income: The company continues to generate the bulk of its income from non-interest sources. Q1 2025 non-interest income stood at about $983.6 million, showing consistent strength in its core business operations.
• Positive Operating Cash Flow: Net cash from operating activities remained positive, at $148.2 million in Q1 2025, indicating operational cash generation capability even amid recent revenue fluctuations.
• Recent Increase in Total Assets: Total assets as of Q1 2025 increased to approximately $8.34 billion from previous quarters around $7.7-$8 billion, suggesting potential investments and asset growth.
• Goodwill and Intangible Assets Are Stable: Goodwill remains steady around $2.05 billion, and intangible assets approximately $300 million, reflecting stable acquired value and intellectual property assets.

• Net Interest Expense Consistently Negative: Western Union carries interest expenses primarily from long-term debt, ranging between $25 million to $33 million quarterly, which slightly reduces net income but is typical for a company with leverage.
• Dividend Payout Consistency: The company maintains a stable quarterly dividend, consistently paying $0.235 per share, attractive for income-focused investors but a fixed cash outflow.
• Repurchase Activity Fluctuates: Share repurchases have varied significantly quarter to quarter, with aggressive repurchasing in 2023 and moderated activity in 2025, impacting cash flow and equity but potentially supporting share price.
• Debt Issuance and Repayments Ongoing: Western Union actively manages debt with issuance and repayments visible each quarter. Long-term debt fluctuated near $2.5-$2.8 billion, indicating ongoing leverage management strategy.

• Declining Net Income in Latest Quarter: Q1 2025 net income dropped to $123.5 million from $385.7 million in Q4 2024 and earlier $264-$385 million ranges in 2023-2024, signaling possible margin pressure or one-time factors affecting profitability.
• Significant Cash Outflow from Financing Activities: Q1 2025 shows a large negative cash flow of approximately $696.6 million from financing activities, mainly from debt repayment and repurchase of equity, pressuring liquidity.
• Rising Other Operating Expenses: Operating expenses in Q1 2025 increased relative to corresponding periods in 2023 and 2024 to about $806.2 million, squeezing operating margins.
• Equity Position Growth is Modest: Total common equity increased over the period but remains under $1 billion, with retained earnings negative and accumulated other comprehensive loss widening slightly, indicating limited equity cushion.
• Net Change in Cash & Equivalents Shows Volatility: Quarterly cash position swings notably, with Q1 2025 showing a significant reduction (-$659.5 million), which may reflect strategic cash uses but poses liquidity considerations.

Summary: Western Union continues to generate robust revenues dominated by non-interest income, supported by a stable operating cash flow. However, the recent quarters show a decline in net income with rising operating expenses, and substantial cash used in financing activities indicating aggressive debt and share repurchase management. The company's balance sheet remains leveraged with sizeable liabilities but stable goodwill and asset base. The consistent dividend demonstrates shareholder return commitment, though cash flow volatility and equity position warrant monitoring.

Retail investors should keep an eye on Western Union's ability to sustain profitability amid expense pressures and capital allocation decisions, especially considering leverage and cash flow trends.