Wise Results Put Profit Margin in Focus

Wise (NASDAQ: WSE; LON: WISE), the money-transfer and multi-currency account company, reports half-year results tomorrow (Thursday) after the US close, with a call at 4:30pm ET (9:30pm GMT). WSE is the Nasdaq line of its dual listing; the London line is WISE.

The results land after the London close, so the UK share price reaction comes on Friday.

Much of the picture is already public. Wise said in its Q2 update on the 15th of October that net revenue for the quarter was $739.1m, cross-border volume, the money moved between countries, was $71.7bn, and active customers reached 12.5m.

The take rate, the fee charged as a share of volume, fell to 0.49% as Wise chose to cut prices.

Metric	Q2 FY27	Q2 FY26	Q1 FY27	Q1 FY26
Net revenue ($m)	739.1	610.5	714.0	573.3
Cross-border volume ($bn)	71.7	59.0	69.3	55.0
Active customers (m)	12.5	10.44	11.863	9.797
Cross-border take rate	0.49%	0.52%	0.50%	0.52%

Revenue rose 21% in Q2 and volume 22%, while the take rate slipped 3 basis points. Wise does not report a quarterly profit margin, so the guided first-half figure is the only profit marker so far.

Chief executive Kristo Käärmann framed the price cuts in the Q1 release on the 16th of July.

This quarter almost 12 million people and businesses used Wise to move $69.3 billion across the world. These customers paid an average fee of just 50bps – the lowest it has ever been on Wise.

Kristo Käärmann, Wise co-founder and chief executive

Guidance is the test. Wise now expects full-year net revenue growth in the upper half of its 15-20% range. It guided income before tax margin, pre-tax profit as a share of net revenue, to around the top of 20-25%.

For the first half, Wise guided to a margin of about 23%, including about 2 percentage points of one-off costs, about $15m of it for the dual listing. That makes the profit line the main surprise risk.

Wise now reports in US dollars and guides on income before tax margin. The shares closed today at 835.4p, about 23% below their April weekly closing high of 1,090.5p.

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