At Extreme Investor Network, we strive to provide valuable insights into the world of finance that set us apart from other sources. Today, we are excited to share the latest news on Wise, the British digital payments firm that has been making waves in the industry.
Wise recently announced a remarkable 55% jump in profit for the first half of its 2025 fiscal year, citing significant customer growth and an expanding market share. This impressive growth saw the company’s profit soar to £217.3 million, compared to £140.6 million in the same period a year ago. With a 25% increase in active customers, Wise now boasts a total of 11.4 million consumer and business clients.
In addition to its profit surge, Wise reported a 19% increase in revenues for the period, totaling £591.9 million. The market responded positively to this news, with Wise’s stock surging as much as 8% following the announcement. This upward trend was further fueled by a recent partnership with Standard Chartered to enhance the bank’s cross-border payments offering for retail customers.
Despite this impressive performance, Wise had issued a sales warning earlier in the year, leading to a temporary dip in its stock value. The company’s growth expectations for fiscal 2025 were revised down to 15-20%, following a series of price reductions. However, Wise remains confident in its long-term profitability, aiming for an underlying profit margin of 13% to 16% in the medium term.
Looking ahead, Wise anticipates that investments made in reducing pricing will impact its profit margin in the second half of the fiscal year. These strategic decisions align with the company’s commitment to sustainable growth and value creation for its stakeholders.
On a separate note, Wise’s CEO and co-founder, Kristo Käärmann, faced a £350,000 fine from the U.K.’s Financial Conduct Authority for failing to report a tax-related issue. While this development may have raised some concerns, Wise remains focused on delivering innovative solutions and driving positive outcomes for its customers.
Stay tuned for more updates and insights from Extreme Investor Network as we continue to monitor developments in the finance industry and uncover unique opportunities for our readers.