Western Union posted a 1% revenue drop. CEO Devin McGranahan blamed slower migration and is pushing deeper cost cuts and AI adoption to offset the drag. The Intermex deal sits with regulators.
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Western Union posted a 1% revenue drop in the second quarter, blaming shifting U.S. immigration patterns for a slowdown in its core Americas retail business.
Revenue fell to $1 billion. President and CEO Devin McGranahan pointed to changes in immigration policy.
When migration turns negative, replacing customers who leave or switch is tough, McGranahan said on the earnings call.
The company's planned acquisition of Intermex, announced in August 2025, remains stuck in regulatory review. The New York Department of Financial Services is still weighing the deal. New York City Mayor Zohran Mamdani publicly urged the agency to block it in May, arguing it would hurt immigrant communities.
McGranahan said the company remains in active talks with regulators and is optimistic about securing the final approval needed.
Cost Cuts and AI Push
In response, Western Union is accelerating cost cuts. The company aims to reduce by 20% discretionary operations and technology work not tied to digital growth, and accelerate AI adoption to lower the cost of moving money, according to a presentation released Thursday.
McGranahan said the company has ramped up its adoption of AI and other automation platforms significantly over the past six months, and sees meaningful opportunity to eliminate manual work and reduce the friction that results from its large geographically dispersed and highly regulated business. Western Union's push into AI comes as the industry debates enterprise AI trust.
Western Union shares moved little in after-hours trading following the release.
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