Wise Shares Jump on Strong Volume Growth; Eyes Increased Profitability

Wise (LON: WISE) shares rallied more than 10% in early Tuesday trading after the company reported a robust Q3 FY26, showcasing significant growth in volume and customer engagement. The company's cross-border volume surged 26% on a constant currency basis, reaching £47.4 billion.

With 10.9 million active customers, up 20% year-over-year, the platform continues to expand its user base.

Underlying income climbed to £424.4 million, a 21% increase year-over-year, both on a reported and constant currency basis. The company expects to be around the middle of its guided range of 15-20% growth for FY26.

Customer holdings experienced a substantial 34% increase, reaching £27.5 billion, highlighting the growing popularity of the Wise account. Revenue from card usage and other services also saw a healthy 30% year-over-year rise. Wise Business active customers increased 25% year-over-year to 542,000, with volumes growing strongly by 37%.

Despite a slight dip in the cross-border take rate to 52bps from 56bps a year ago, Wise is focused on long-term growth investments. The company is targeting an underlying profit before tax (PBT) margin of 13-16% in the medium term and now expects FY26 underlying PBT margin to be towards the top of this range, including costs related to Wise's dual listing.

Driver Breakdown:

• Volume Growth: Strong performance driven by increased adoption of Wise's cross-border transfer services.
• Customer Holdings: Rising customer holdings demonstrate increased trust and usage of the Wise account.
• Business Expansion: Significant growth in Wise Business active customers and volumes.

CEO Kristo Käärmann stated, “We served nearly 11 million active customers this quarter, helping more people and businesses around the world with more of their financial needs,” reinforcing the company’s commitment to global expansion and customer-centric services.

The company's commitment to instant transfers is paying dividends, with 74% of payments now being delivered instantly, up from 65% the previous year. This efficiency is a direct result of Wise's investments in infrastructure, including licenses, integrations, technology, and operations.

The planned dual listing in the first half of 2026 is expected to further elevate Wise's profile, particularly in the US market, and accelerate global growth. The company also secured a conditional license approval in South Africa, marking its first venture into Africa.

Wise's focus on infrastructure and technology is driving improved efficiency and customer satisfaction. The direct integration with Japan's Zengin system increased the company's total number of direct integrations to domestic payment systems to eight.