Wise Group shares climbed around 8% on Friday after the payments company reported stronger-than-expected profit margins and announced a $500 million share buyback programme for fiscal 2027.
The results showed continued growth in customers, cross-border payments and card spending. Wise also issued a positive outlook for the coming financial year.
Wise Profit Margin Beats Guidance
Wise reported income before tax of $660.4 million for the financial year ended March 31. Net revenue increased by 19% year over year to $2.50 billion.
The company’s profit before tax margin reached 26.4%. This was above Wise’s medium-term guidance range of 20% to 25%.
The stronger margin performance helped lift investor confidence and sent Wise shares sharply higher.
BofA Highlights Stronger-Than-Expected Results
Bank of America analysts said Wise’s profit before tax was 6.6% above their estimate and 1.3% ahead of market expectations.
BofA maintains a “buy” rating on Wise shares, with a price target of $16.40.
However, operating income was affected by a one-off $70 million U.S. GAAP foreign exchange adjustment linked to certain government bonds. As a result, operating income came in at $590.7 million.
Customer Numbers and Payment Volumes Rise
Wise continued to expand its global customer base during the year.
The number of active customers increased by 21% to 19 million. Meanwhile, cross-border payment volume rose by 31% to $243.5 billion.
The company’s cross-border take rate stood at 0.52%, down six basis points from the previous year.
Card spending also grew strongly, rising by 37% to $43.6 billion. Customer balances held with Wise increased by 40% to $39.0 billion.
Transaction Revenue Reaches $1.89 Billion
Wise generated $1.89 billion in transaction revenue during the financial year.
Net interest income from customer balances contributed another $609.2 million to net revenue. This figure was calculated after Wise paid $196.9 million in interest to customers.
The company’s growing customer balances and higher transaction volumes supported the improvement in overall revenue.
Wise Speeds Up International Payments
Chief Executive Kristo Käärmann said Wise helped 19 million individuals and businesses move money around the world during the year.
The company also continued to improve the speed of its payment network. During the fourth quarter, 75% of Wise payments were completed globally in less than 20 seconds.
Käärmann said the company remains focused on the long-term opportunity presented by the global cross-border payments market, where individuals and businesses move approximately $43 trillion every year.
Wise Launches $500 Million Share Buyback
Wise announced a $500 million share repurchase programme for fiscal 2027.
Around 40% of the programme will be used for recurring purchases through the company’s Employee Share Trust. These purchases are intended to offset dilution caused by share-based employee compensation.
Wise also allocated $470 million to repurchase 35.9 million shares during fiscal 2026.
The new buyback programme could provide additional support for Wise shares while improving earnings per share by reducing the number of shares in circulation.
Fiscal 2027 Revenue and Margin Outlook
For fiscal 2027, Wise expects net revenue growth to be near the midpoint of its medium-term target range of 15% to 20%.
The forecast is based on constant exchange rates and assumes no major changes in central bank interest rates or the interest paid to customers.
Wise also expects its income before tax margin to be close to the upper end of its 20% to 25% target range.
BofA Raises Wise Earnings Forecast
Following the results, BofA increased its fiscal 2027 diluted earnings-per-share estimate by 5.7% to 54.34 cents.
The analysts cited stronger gross profit margins and the impact of the $500 million share buyback as the main reasons for the upgrade.
Wise Completes Nasdaq Primary Listing
Wise completed its move to a primary Nasdaq listing on May 8 through a scheme of arrangement.
The payments company retained a secondary listing on the London Stock Exchange.
Overall, Wise delivered strong financial results, faster customer growth and profit margins above guidance. The company’s $500 million share buyback and positive fiscal 2027 outlook also helped drive Wise shares higher.
