In late April, we highlighted Wise Group (WISE) as a major winner in the circa $14 trillion cross-border payments industry given its laser-like customer focus and strong technology offering.
To give a sense of scale, in the year to March 2025 Wise helped around 15.6 million individuals and businesses process over $185 billion in cross-border transactions, saving customers around $2.6 billion.
WHAT HAS HAPPENED SINCE WE SAID TO BUY?
On 5 June, Wise revealed revenue and profit growth for the year to 31 March ahead of market expectations and reiterated its 2026 and medium-term guidance.
To recap, Wise expects 2026 underlying income to grow between 15% and 20% and a pre-tax margin at the upper end of its 13% to 16% target range. In the medium-term, the company also expects income growth in the 15% to 20% range and a pre-tax margin range of between 13% and 16%.
The company also announced plans to move its primary listing to the US, while retaining a secondary UK listing.
Wise believes the move will provide the company with access to a wider pool of investors, generate greater liquidity, provide a pathway to index inclusion, build brand awareness and accelerate growth in the US.
Shareholders are due to vote on the plan on 28 July.
In a surprise turn of events (21 July), co-founder Taavet Hinrikus, who owns around 5% of the ‘Class B’ shares, criticised the company for extending its dual-class status for a further 10 years as part of its plan to list in the US.
First-quarter results (17 July) came in shy of consensus with income growth of 14% undershooting the firm’s guidance, caused by a combination of foreign exchange headwinds, tough comparables and a price reduction impact.
Despite the miss, Wise maintained its full-year guidance as comparables are expected to get easier and there are no further planned price reductions.
WHAT SHOULD INVESTORS DO NOW?
Wise continues to deliver on its growth plans and has only just scratched the surface of the global opportunity, while its competitive advantages continue to build. Stick around for the long-term.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
magazine
