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Highlights:

  • WISE customer holdings rose 31% YoY to GBP 22.9 billion in Q1FY26.
  • Wise recorded GBP 362 million in Q1 underlying income, up 11% YoY.
  • The company saw a 17% YoY rise in active customers, reaching 9.8 million.

Wise plc (LSE:WISE), a London-based global financial technology company facilitating international money transfers, reported its financial and operational metrics for the first quarter of the financial year 2026 (Q1FY26), showing continued expansion in customer base, volumes, and income despite a decline in pricing yields.

In the three months ending 30 June 2025, cross-border volumes handled by Wise grew by 24% year-on-year (YoY) to GBP 41.2 billion. On a constant currency basis, volume growth reached 27%. The increase reflects higher usage among customers and growing engagement, particularly among high-volume clients. Customer holdings on the Wise platform grew by 31% YoY to GBP 22.9 billion, indicating a rising level of retained funds and greater reliance on Wise’s money services. The number of active customers using Wise reached 9.8 million, marking a 17% increase compared to the same quarter in the prior year.

Underlying income for Q1 FY26 stood at GBP 362 million, up 11% YoY on a reported basis and 14% YoY in constant currency terms. The company reaffirmed its full-year expectations for FY26, targeting continued income growth within its medium-term guidance range of 15% to 20% annually on a constant currency basis. However, Wise saw a slight decline in its cross-border take rate the average fee it collects on transactions  which fell by 1 basis point during the quarter to 52 basis points (bps). On a yearly basis, the take rate decreased by 12 bps. The company attributed this decline to reductions in average pricing, coupled with an increased share of higher-volume transactions, which typically carry lower margins.

Management indicated that while take rates may continue to face downward pressure due to changes in customer mix, Wise remains focused on scaling its services globally. The company reiterated its medium-term profitability goal of achieving an underlying profit before tax margin of 13–16%, with expectations for FY26 to be at the upper end of this range. During the quarter, Wise continued to broaden its geographic and platform reach. The company launched its Wise Business product in the Philippines and formed new partnerships under its Wise Platform service. Notable integrations include Raiffeisen Bank, announced during the quarter, and UniCredit, which was disclosed in July, allowing these institutions to offer instant international money transfers to their clients across Europe.

In a strategic development, Wise recently proposed a dual listing of its shares in both the UK and the United States. While currently listed on the London Stock Exchange, management believes that a primary US listing could enhance access to deeper capital markets and long-term strategic opportunities. The proposal has been well received by shareholders and will be subject to further approvals. Co-founder and CEO Kristo Käärmann commented that the quarter marked further progress in extending Wise’s global network and reaching more customers and institutions. He highlighted the company's ongoing investment in infrastructure and partnerships to support long-term financial goals and strategic ambitions.

WISE is trading at 2.30% lower at GBX 1,106.00 per share as on 17 July 2025.