This article first appeared on GuruFocus .
Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Wise PLC ( WPLCF ) added 2 million active customers over the year, reaching a total of 13 million users.
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Cross-border volumes increased by 24% to almost 85 billion pounds, indicating strong growth in transaction volumes.
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The company successfully reduced average fees by 15%, leading to increased customer transactions and larger use cases.
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Wise PLC ( WPLCF ) has maintained a stable average take rate of 52 basis points despite price reductions.
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The Wise Platform segment is growing rapidly, now accounting for 5% of cross-border volumes, with a target of 10% in the medium term.
Negative Points
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The cross-border take rate decreased by 10 basis points year on year, impacting revenue growth.
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There is a significant investment in marketing and sales, with a 59% increase year over year, which may pressure short-term profitability.
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The company is facing challenges in maintaining gross margins despite increased direct payment integrations.
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Wise PLC ( WPLCF ) is incurring one-off expenses related to a dual listing project, affecting overall profitability.
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The rapid hiring of 1,000 new employees in the first half may pose challenges in maintaining company culture and operational efficiency.
Q & A Highlights
Q: Can you discuss the momentum and growth expectations for Wise's platform segment, which now accounts for 5% of volumes, and your midterm goal of reaching 10%? Additionally, how does Wise view its position regarding stablecoins in the payment ecosystem? A: (Emmanuel Thomasin, CFO) We have strong momentum with new partners joining the platform and existing ones ramping up volumes. We're on track to achieve our midterm goal of 10% and long-term goal of 50% platform volume. (Christo, CEO) Regarding stablecoins, Wise's infrastructure is well-positioned to handle stablecoin transactions due to our regulatory framework and efficient cross-border payment systems. We are excited about the potential to integrate stablecoins alongside existing payment options.
Q: With the recent price reductions, is there any change in Wise's pricing strategy, and how do you see this evolving over the next year? Also, how are the investments in new markets impacting the payback metrics? A: (Christo, CEO) Our strategy remains to balance investments and avoid large swings. We continue to see volume growth and economic benefits from our pricing strategy. Our marketing efforts are disciplined, focusing on reaching more customers with efficient returns. The advertising in new markets is accelerating customer acquisition and transaction volumes, supporting our long-term growth.
Q: Are there any plans to introduce a subscription model similar to Amazon Prime for Wise transfers, and how does Wise view its margin strategy in the context of market expansion? A: (Emmanuel Thomasin, CFO) We are committed to maintaining a margin range of 13-16% while investing in growth opportunities. We focus on offering the best service and expanding our customer base. (Christo, CEO) While we explore different pricing models, we value customer loyalty without strings attached and aim to maintain this approach.
Q: How is Wise managing the integration of 1,000 new hires in the first half, and what impact does this have on company culture? A: (Emmanuel Thomasin, CFO) Wise has a strong onboarding process that quickly integrates new employees into our open and supportive culture. The existing team plays a crucial role in maintaining our mission-driven environment, ensuring new hires align with our goals and values.
Q: Can you elaborate on the impact of direct integrations on instant payments and gross margins, and how Wise plans to expand its payment infrastructure? A: (Christo, CEO) Direct integrations enhance payment speed and reliability, contributing to customer satisfaction. While not directly impacting gross margins, they improve operational efficiency and customer experience. We continue to integrate more payment systems to increase instant payment rates and expand our infrastructure.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
