Wise Q1 Earnings Call Highlights

• Revenue diversification increasing with 51% of net revenue now from non-cross-border activities; card and other revenue jumped 38% while interest income rose 15%
• Company expects constant-currency net revenue growth in the middle of 15-20% range and margins near the high end of 20-25% for the full year, with growth weighted to the first half
• Wise plans ongoing pricing reductions totaling approximately five basis points across the year (two basis points in Q2, one basis point each in Q3 and Q4) as part of its long-term strategy

Wise Q1 FY2027 Earnings Summary

Key Performance Metrics

Wise (LON: WISE) reported strong Q1 fiscal 2027 results with broad-based growth across all key metrics. Active customers increased 21% year-over-year to nearly 12 million, while cross-border volume surged 26% to $69 billion. Customer balances grew 31% to $31 billion, including $10 billion held through Wise Assets. Net revenue rose 25% to £714 million.

Revenue Diversification

Transaction revenue totaled $541 million, up 27% year-over-year, driven by cross-border revenue of $350 million (up 22%) and card/other revenue of $191 million (up 38%). Interest income grew 15% to $225 million, though gross yield declined to 2.9% from 3.3% due to central bank rate cuts. Notably, 51% of net revenue now comes from non-cross-border activities, highlighting successful revenue diversification.

The company's take rate decreased to 50 basis points from 52 basis points, reflecting strategic pricing reductions. Wise Business performed particularly well, with cross-border volume up 39%.

Guidance and Strategy

Wise maintained full-year guidance, expecting constant-currency net revenue growth in the mid-range of 15-20% and income before tax margins near the high end of 20-25%. Management plans continued take-rate reductions: two basis points in Q2, followed by one basis point each in Q3 and Q4.

CFO Emmanuel Thomassin emphasized that pricing investments are "a core feature" of the business model, supporting long-term growth despite near-term margin pressure. Regional strength was noted in Asia-Pacific and the Americas, particularly the U.S. The Platform business, representing approximately 6% of cross-border volume, shows promising growth potential with a "nice pipeline" of partners.