Wise plc Revenue & Financials

Wise reported revenue of $1539.1 million for the fiscal year ended 31 March 2025, a 15% increase from $1336.0 million in FY2024. Underlying income, which adds the first 1% yield of interest income on customer balances to revenue, reached $1730.1 million, up 16% year-on-year. Underlying gross profit expanded 20% to $1301.9 million, with the margin improving from 73% to 75%. Underlying profit before tax rose 17% to $358.3 million, maintaining the 21% margin achieved in FY2024. Reported profit before tax, which includes interest income above the first 1% yield and deducts benefits paid to customers, increased 17% to $717.3 million from $611.4 million. Profit for the year reached $529.2 million, up 18% from $450.3 million. Basic earnings per share were 40.37 pence, compared to 34.20 pence in FY2024. Free cash flow was $781.6 million, representing 108.9% conversion of reported profit before tax. Underlying free cash flow was $422.5 million with 117.9% conversion of underlying profit before tax. The elevated free cash flow conversion in FY2025 was partly due to a change in payment terms with a key partner that reduced receivables outstanding; this is expected to normalize in FY2026. The company held $23.6 billion in cash and highly liquid investment-grade assets at year-end, up 28% from $18.4 billion, including $21.7 billion in customer balances and $1.8 billion in corporate cash. Group eligible capital stood at $1.7 billion, significantly above minimum regulatory requirements. The balance sheet strength enabled Wise to repurchase shares through its Employee Benefit Trust, spending $88.8 million in FY2024 and a similar amount in FY2025 to offset dilution from stock-based compensation. Market capitalization as of June 2025 was approximately $10.5 billion ($10.4 billion), with the stock trading at 826 pence on the London Stock Exchange. The company trades at a price-to-earnings ratio of 22.3x and a price-to-sales ratio of 4.6x, reflecting investor confidence in its growth trajectory and profitability. Revenue per employee was approximately $191,770 in FY2025, up from $177,800 in FY2024, demonstrating productivity gains despite headcount growth. The company's effective tax rate was 26.2% in FY2025, up from 26.1% in FY2024, reflecting higher profitability in higher-tax jurisdictions. Interest income on customer balances totaled $754.8 million in FY2025, up from $599.6 million in FY2024, with the first 1% yield contributing $191.0 million to underlying income and the excess contributing $563.8 million to reported profit. The interest income framework paid $204.7 million to customers in FY2025, up from $130.9 million in FY2024, but still well below the $450.9 million target. The shortfall is a critical financial and regulatory issue that will likely intensify as regulators scrutinize customer treatment.