Wise (WSE) H1 2025 earnings summary

Executive summary

• Active customers reached 11.4 million in H1 FY25, up 25% year-over-year and 2.8x from H1 FY21, with strong growth in both personal and business segments; cross-border business and Wise Account adoption have also grown significantly, supported by infrastructure investments.

• Wise operates in 40 currencies, holds 65+ financial licenses, and has expanded direct payment system integrations to six, with two more pending, enhancing speed, cost efficiency, and customer experience.

• Customer support is now 24/7 across email, phone, and chat; transfer limits have increased in multiple countries, and new features like Quick Pay for businesses have launched.

• Partnerships with major banks, including Standard Chartered, Nubank, Qonto, and AbbeyCross, are expanding Wise Platform’s reach, enabling instant, transparent cross-border payments for bank customers in Asia, the Middle East, and other regions.

• Wise continues to expand its infrastructure, adding direct payment system connections and new licenses in key markets.

Financial highlights

• Underlying income for H1 FY25 increased 19% year-over-year to £662.4m; underlying gross profit rose 30% to £505m, with a 6% margin improvement.

• Reported profit before tax grew 51% year-over-year to £292m, with EPS of 21.1p and a four-year PBT CAGR of 95%.

• Card and other revenue grew 52% year-over-year to £172.8m, now representing over one-third of total income.

• Customer holding balances increased 20% year-over-year to £14.7bn, with assets under custody at £3.8bn.

• Free cash flow reached £257.0m, with FCF conversion at 87.9%.

Outlook and guidance

• Underlying income growth is guided at 15%-20% for FY25 and the medium term, with expected profitability margins between 13%-16%.

• No further material price cuts are planned for H2 FY25; margins are expected to move smoothly toward the guided range.

• Long-term investments in infrastructure and customer experience are expected to drive growth over the next decade.