Wise Q1 Earnings Call Highlights

Wise delivered strong Q1 growth with active customers up 21% to nearly 12 million, cross-border volume up 26% to $69 billion, and customer balances up 31% to $31 billion. Net revenue rose 25% year over year to GBP 714 million. Revenue diversification is increasing as card and other revenue jumped 38% and interest income rose 15%, with 51% of net revenue now coming from non-cross-border activities. Wise also noted strong business customer and Platform business momentum. The company reiterated full-year guidance and plans to keep lowering prices, expecting constant-currency net revenue growth in the middle of a 15% to 20% range and margins near the high end of 20% to 25%. Management said pricing investments will weigh on results later in the year but are central to Wise’s long-term strategy.

Wise reported continued growth in customers, cross-border volumes and customer balances in the first quarter of fiscal 2027, while reiterating its full-year guidance and plans to keep reducing prices for customers. Chief Financial Officer Emmanuel Thomassin said on the company’s results call that Wise began the year with “continued growth in customers and volumes,” supported by customers using the platform for both cross-border transactions and everyday financial needs. Active customers increased 21% year over year to almost 12 million, while cross-border volume rose 26% to $69 billion. Wise Business was a particular driver, with cross-border volume up 39% year over year. Customer holdings increased 31% to $31 billion, including $10 billion held through Wise Assets.

Thomassin said Wise generated $350 million in cross-border revenue from customers sending or converting currency during the quarter, up 22% year over year. That growth was slightly below the 26% increase in volume, reflecting a decline in the average take rate to 50 basis points from 52 basis points a year earlier. Card and other revenue reached $191 million, up 38% year over year. Thomassin said the increase was mainly due to card revenue, driven by higher business card spending in North America and growing personal card adoption in the U.S. and Asia-Pacific. Together, transaction revenue totaled $541 million, representing 27% year-over-year growth. Wise also generated $225 million in interest income during the quarter, up 15%, as customers continued to hold balances on the platform. Thomassin said growth in balances did not fully translate into interest income because gross yield declined to 2.9% from 3.3% a year earlier, reflecting central bank decisions during 2026. Net revenue totaled GBP 714 million, up 25% year over year. Thomassin highlighted the increasing diversification of Wise’s revenue base, saying 51% of net revenue in the quarter came from non-cross-border activities.

Wise maintained its expectation for full-year net revenue growth around the middle of a 15% to 20% range on a constant-currency basis. Thomassin said growth is expected to be more pronounced in the first half of the year because of the timing of planned pricing investments. The company also expects full-year income before tax margins to be around the high end of the 20% to 25% range, with results front-half weighted and slightly above the target range in the first half. Responding to a question from Goldman Sachs analyst Mohammed Moawalla, Thomassin said first-quarter growth was in line with Wise’s expectations. He added that the company continues to take a conservative view and remains comfortable with its guidance. Wise plans to continue reducing its take rate as it reinvests efficiency gains into lower prices. Thomassin said the take...