Wise Shares Slip Despite Strong Q1 Growth as Investors Eye Margin Pressure

Shares in Wise Group plc (LSE: WISE; Nasdaq: WSE) fell around 2.5% on Friday morning, even as the money-transfer specialist posted double-digit growth across its key metrics for the first quarter of its 2027 financial year.

For the three months to 30 June 2026, Wise reported net revenue of $714.0 million, up 25% year-on-year from $573.3 million. Cross-border volume rose 26% to $69.3 billion, while active customers climbed 21% to 11.9 million. Customer holdings, a key measure of platform trust and stickiness, jumped 31% to $41.2 billion.

Despite the headline growth, the cross-border take rate — the fee Wise earns on transfers — slipped 2 basis points to 0.50%, the lowest level in the company’s history.

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Management said the reduction reflects a deliberate decision to reinvest operating leverage into lower prices to defend Wise’s competitive position, rather than a sign of pricing pressure from rivals. Instant transfers rose to 77% of transactions, up from 70% a year earlier.

Wise reiterated its FY27 guidance, targeting net revenue growth around the middle of its 15-20% medium-term range on a constant currency basis, and an income-before-tax margin near the top of its 20-25% target.

Chief executive Kristo Käärmann highlighted continued international expansion, including a recent launch in Chile, and reaffirmed the company’s ambition to build “the network for the world’s money.”

The share price reaction suggests investors are focused on the shrinking take rate and margin trajectory rather than the robust top-line growth, as markets weigh whether continued price competition could pressure profitability even as volumes and customer numbers scale rapidly.