Western Union (WU) Financials

Western Union (NYSE: WU) has demonstrated mixed financial performance over the last four years, with key trends in revenue, expenses, profitability, cash flow, and balance sheet strength from the quarterly data analyzed through Q1 2025.

• The company has consistently generated strong total revenues each quarter, hovering around $950 million to $1.1 billion, driven primarily by stable non-interest income (~$1 billion per quarter).
• Net income from continuing operations remained positive in each quarter, with Q1 2025 reporting $123.5 million and quarterly net income consistently above $120 million in recent quarters.
• Western Union sustains solid operating cash flows, averaging over $100 million in quarterly net cash from operating activities, indicating operational efficiency and liquidity.
• Capital expenditures on property and equipment remain moderate relative to cash flows, supporting ongoing business without extreme capital strain.
• The company has paid regular dividends around $0.235 per share each quarter, reflecting stable shareholder returns.
• Long-term debt interest expense has steadily increased from $26 million in early 2023 to $32.6 million in Q1 2025, indicating rising financing costs or increased debt levels.
• Total equity grew from about $395 million in early 2023 to $939 million by Q1 2025, suggesting some strengthening in the capitalization base but still modest given the asset base over $8 billion.
• Other long-term liabilities remain very high, consistently around $4 to $4.7 billion, reflecting substantial off-balance sheet or long-term obligations that investors may need to monitor.
• There was a notable drop in net income and EPS in Q1 2025 compared to previous quarters, with EPS roughly one-third of prior quarters, signaling potential margin pressure.
• Western Union experienced significant net cash outflows in financing activities in Q1 2025 (-$696.6 million), mainly due to debt repayment ($500 million) and repurchasing common equity ($76.7 million), which could tighten financial flexibility.

Summary: Western Union remains fundamentally solid with steady revenues and positive earnings, supported by healthy operating cash flow and a regular dividend policy. However, rising interest expenses, large long-term liabilities, and recent pressure on profitability and cash used in financing activities may pose challenges. Investors should watch for continued earnings stability and management's approach to leverage and capital allocation going forward.