Market fluctuations hit Wise, affecting its currency-related operations
London-based fintech company Wise, known for its cheap international money transfer services, faced a significant sell-off of more than 10% in its shares after reporting lower profits for the three months ending June 30. The company's underlying income of £362 million fell short of the expected £372 million, primarily due to unfavourable currency market volatility and a decline in the fees it collects from international transactions.
Despite growing its customer base by 17% year-on-year to 9.8 million and increasing cross-border volume by 24% to £42.1 billion, Wise's take rate, the money it receives from international transactions, fell 12 basis points to 0.52%. This decline reflects Wise's strategic choice to cut prices to attract higher-volume users and expand market share, a move that pressures its revenue per transaction even while scaling the business. The unfavourable currency movements further strained the company’s earnings and led to investor concern over the shrinking unit economics, triggering the sell-off during a period when the firm’s valuation came under pressure despite increasing transaction volumes and customer holdings, which rose 31% year-on-year to £22.9 billion.
In response to the lower profits, Wise reaffirmed its intention to move its primary stock listing from the London Stock Exchange to a US stock exchange while maintaining a secondary listing in London. This transition requires shareholder approval. CEO Kristo Käärmann stated that a primary US listing would help accelerate Wise's goal of becoming the global network for money movement and align the interests of customers and shareholders over the long term, reflecting the company’s focus on expanding its global footprint, particularly in the large and important US market.
Analyst Dan Lane of Robinhood UK suggested that the sell-off might appear overzealous considering Wise backed its full-year outlook and kept its guidance for growth of 20% in underlying income. Analysts at Jefferies attribute the 3% miss to "foreign exchange headwinds." Despite missing expectations, Wise restated its intentions to grow 20% over the full year.
In summary, the sell-off of Wise's shares was driven by lower profits, unfavourable currency market volatility, and a decline in the fees collected from international transactions. Wise's strategic decision to cut prices to attract higher-volume users and expand market share contributed to the shrinking unit economics, causing investor concern. The company's plans to move its primary listing to the US stock exchange while maintaining a secondary listing in London aim to tap the US market and enhance its global network aspirations.
[1] Wise Quarterly Results (2025) [2] Wise to List on US Stock Exchange (2025) [3] Wise's Q2 Results Miss Estimates (2025) [4] Wise's US Listing Plans (2025)
[1] The Q2 results of Wise, the London-based fintech company, showed a decline in profits, leading to a significant sell-off of more than 10% in its shares. Unfavourable currency market volatility and a decrease in the fees collected from international transactions partly contributed to this fall.
[2] In response to the lower profits, Wise has announced its intention to move its primary stock listing from the London Stock Exchange to a US stock exchange while maintaining a secondary listing in London. This transition requires shareholder approval.
[3] Despite missing estimates, Wise remains optimistic about its full-year prospects, reaffirming its intention to grow by 20% and maintaining its guidance for growth of underlying income. Analysts attribute the 3% miss to "foreign exchange headwinds."
[4] The strategic decision by Wise to cut prices to attract higher-volume users and expand market share has led to a shrinking of unit economics, causing investor concern over the business's long-term sustainability. This move is part of the company's plan to position itself as a global network for money movement, particularly focusing on expanding in the US market.
