The Western Union Company delivered a solid third quarter of 2025 (Q3) with revenue of $1.0326 billion and a gross margin of 37.7%, reflecting a stable top-line in a competitive cross-border payments market. Operating income reached $201.9 million and net income was $139.6 million, resulting in an EPS of $0.43. While operating leverage was evident, including a 22.4% year-over-year increase in operating income, net income declined 47.3% year over year due to higher total other income/expenses and financing costs, underscoring the sensitivity of earnings to non-operating items and the interest burden in a leveraged balance sheet. QoQ, revenue rose ~0.63% and EPS improved about 16%, signaling seasonal strength and ongoing margin discipline entering the seasonally stronger Q4.
The company exhibits robust liquidity and cash generation metrics, with a current ratio of 17.26x, operating cash flow per share (OCF/Share) of $0.79, and free cash flow per share (FCF/Share) of $0.518. The earnings mix remains favorable for a technology-enabled payments business, supported by the Consumer-to-Consumer and Business Solutions segments, and aided by digital channel expansion. However, interest expense remains a meaningful headwind, and total other income/expense continues to influence reported profitability. The investment thesis hinges on Western Union’s ability to monetize digital remittance channels, deepen B2B solutions, and optimize capital structure to sustain returns amid regulatory and competitive pressures.