Financial Analysis

4. Acquisitions Eurochange Limited On April 7, 2025 , the Company acquired the entire share capital of Eurochange Limited (Eurochange). The acquisition of Eurochange better enables the Company to deliver accessible financial services to consumers by expanding its travel money services and Company-operated locations in the United Kingdom (UK). Eurochange primarily provides travel money services through its own network of locations, agent locations, kiosks, and online platforms. International Money Express, Inc. On August 10, 2025 , the Company entered into an agreement to purchase the entire share capital of International Money Express, Inc. (Intermex) for approximately $ 500 million in cash and repay all of Intermexs outstanding indebtedness under their revolving credit facility. The Company anticipates closing the transaction as soon as reasonably practicable, subject to the satisfaction of customary closing conditions, including receipt of the remaining regulatory approval. Intermex is a leading omnichannel money transfer provider, focused primarily on the United States to Latin America and the Caribbean corridors, through a network of agent retail locations, Intermex-operated stores, its mobile app, and websites. …

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6. Commitments and Contingencies Letters of Credit and Bank Guarantees The Company had approximately $ 130 million in outstanding letters of credit and bank guarantees as of June 30, 2026, which were primarily held in connection with regulatory requirements, lease arrangements, and certain agent agreements. The Company expects to renew many of its letters of credit and bank guarantees prior to expiration. Litigation and Related Contingencies The Company is subject to certain claims, investigations, and litigation that could result in losses, including damages, fines, and/or civil penalties, which could be significant, and in some cases, criminal charges. The Company regularly evaluates the status of legal matters to assess whether a loss is probable and reasonably estimable in determining whether an accrual is appropriate. Furthermore, in determining whether disclosure is appropriate, the Company evaluates each legal matter to assess if there is at least a reasonable possibility that a material loss or additional material losses may have been incurred. The Company also evaluates whether an estimate of possible loss or range of loss can be made. Unless otherwise specified below, the Company believes that there is at least a reasonable possibility that a loss or additional loss may have been incurred for each of the matters described below. For those matters that the Company believes there is at least a reasonable possibility that a loss or additional loss may have been incurre …

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"11. Borrowings The Companys outstanding borrowings consisted of the following (in millions): June 30, 2026 December 31, 2025 Commercial paper (a) $ 199.8 $ 392.0 Credit facility borrowings (b) 45.3 42.9 Notes: 1.350 % notes due 2026 (c) 600.0 4.750 % notes due 2029 (effective rate of 5.1 %) (d) 615.0 2.750 % notes due 2031 (e) 300.0 300.0 6.200 % notes due 2036 (e) 500.0 500.0 6.200 % notes due 2040 (e) 250.0 250.0 Term loan facility borrowings (effective rate of 5.0 %) 800.0 800.0 Total borrowings at par value 2,710.1 2,884.9 Debt issuance costs and unamortized discount, net ( 12.9 ) ( 7.1 ) Total borrowings at carrying value (f) $ 2,697.2 $ 2,877.8 (a) Pursuant to the Companys commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $ 1.62 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Companys revolving credit facility ( Revolving Credit Facility) . The commercial paper notes may have maturities of up to 397 days from date of issuance. The Companys commercial paper borrowings as of June 30, 2026 had a weighted-average annual interest rate of approximately 4.1 % and a weighted-average term of approximately 4 days. (b) One of the Company s subsidiaries utilizes a short-term revolving credit facility agreement to fund certain operating activities in the UK. The subsidiary may borrow up to 60 million ($ 79 million as of June 30, 2026 ), and the facility expires in February 2030 . Drawd …

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The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three and six months ended June 30, 2026 and 2025 (in millions). The regional split of revenue shown in the tables below is based upon where transactions are initiated. Three Months Ended June 30, 2026 Consumer Money Consumer Transfer Services Total Regions: North America $ 306.7 $ 41.3 $ 348.0 Europe and CIS 246.6 38.2 284.8 Middle East, Africa, and South Asia 149.9 0.1 150.0 Latin America and the Caribbean 89.6 52.1 141.7 Asia Pacific 46.9 0.5 47.4 Revenues from contracts with customers $ 839.7 $ 132.2 $ 971.9 Other revenues (a) 26.4 14.9 41.3 Total revenues $ 866.1 $ 147.1 $ 1,013.2 Three Months Ended June 30, 2025 Consumer Money Consumer Transfer Services Total Regions: North America $ 334.7 $ 38.1 $ 372.8 Europe and CIS 252.4 33.8 286.2 Middle East, Africa, and South Asia 132.2 0.1 132.3 Latin America and the Caribbean 92.8 49.9 142.7 Asia Pacific 49.6 49.6 Revenues from contracts with customers $ 861.7 $ 121.9 $ 983.6 Other revenues (a) 23.3 19.2 42.5 Total revenues $ 885.0 $ 141.1 $ 1,026.1 Six Months Ended June 30, 2026 Consumer Money Consumer Transfer Services Total Regions: North America $ 602.5 $ 82.7 $ 685.2 Europe and CIS 493.5 65.9 559.4 Middle East, Africa, and South Asia 297.3 0.1 297.4 Latin America and the Caribbean 179.8 104.3 284.1 Asia Pacific 94.0 0.5 94.5 Revenues from contracts with customers $ 1,667.1 $ 253.5 $ 1,920.6 O …

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13. Stock-Based Compensation Plans For the three months ended June 30, 2026 and 2025, the Company recognized stock-based compensation expense of $ 7.9 million and $ 11.5 million, respectively, resulting primarily from stock options, restricted stock units, and performance-based restricted stock units, in the Condensed Consolidated Statements of Income. For the six months ended June 30, 2026 and 2025, the Company recognized stock-based compensation expense of $ 16.8 million and $ 22.1 million, respectively. During the six months ended June 30, 2026 , the Company granted 2.1 million options at a weighted-average exercise price of $ 9.56 and 5.5 million performance-based restricted stock units and restricted stock units at a weighted-average grant date fair value of $ 9.51 . As of June 30, 2026 , the Company had 13.9 million outstanding options at a weighted-average exercise price of $ 12.93 , of which 8.2 million options were exercisable at a weighted-average exercise price of $ 14.34 . The Company had 11.3 million outstanding performance-based restricted stock units (based on target performance) and restricted stock units at a weighted-average grant date fair value of $ 10.76 as of June 30, 2026 .

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5. Fair Value Measurements Fair value, as defined by the relevant accounting standards, represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For additional information on how the Company measures fair value, refer to the Companys consolidated financial statements within the Companys Annual Report on Form 10-K for the year ended December 31, 2025. The following tables present the Companys assets and liabilities, which are measured at fair value on a recurring basis, by category (in millions): Fair Value Measurement Using Total June 30, 2026 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 39.6 $ $ 39.6 Measured at fair value through other comprehensive income (net of expected credit losses recorded through net income): State and municipal debt securities 1,082.8 1,082.8 Asset-backed securities 151.9 151.9 Corporate debt and other securities 197.1 197.1 Other assets: Derivatives 22.5 22.5 Total assets $ 39.6 $ 1,454.3 $ 1,493.9 Liabilities: Other liabilities: Derivatives $ $ 23.3 $ 23.3 Total liabilities $ $ 23.3 $ 23.3 Fair Value Measurement Using Total December 31, 2025 Level 1 Level 2 Fair Value Assets: Settlement assets: Measured at fair value through net income: Money market funds $ 44.2 $ $ 44.2 …

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12. Income Taxes The Companys effective tax rates on pre-tax income were 19.6 % and 23.6 % for the three months ended June 30, 2026 and 2025, respectively, and 23.7 % and 20.0 % for the six months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026 compared to the corresponding period in the prior year, the effective tax rate decreased primarily due to discrete expenses in the prior period. For the six months ended June 30, 2026 compared to the corresponding period in the prior year, the effective tax rate increased primarily due to discrete expenses in the current period related to the reorganization of the Companys international operations, compared to discrete benefits in the prior period. Unrecognized tax benefits are reflected in Income taxes payable in the Condensed Consolidated Balance Sheets. The total amount of unrecognized tax benefits as of June 30, 2026 and December 31, 2025 was $ 62.3 million and $ 63.3 million, respectively, including interest and penalties. The Companys tax filings are subject to examination by U.S. federal, state, and various non-United States jurisdictions. The conclusion of the examination of the Companys consolidated federal income tax returns for 2017 and 2018 resulted in both agreed and unagreed adjustments. The Company is contesting the one remaining unagreed adjustment in the U.S. Tax Court and has fully reserved for this unagreed adjustment. The Companys U.S. federal income tax returns since 2022 are al …

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Accounting Pronouncements Not Yet Adopted In November 2024, the Financial Accounting Standards Board (FASB) issued a new accounting pronouncement regarding the disclosure of specified information about certain costs and expenses. The standard requires that public entities disclose certain detailed information about the types of expenses included in the expense captions presented within the Consolidated Statements of Income, provide qualitative descriptions for expenses not separately disaggregated quantitatively, and disclose an entitys definition and total amount of selling expenses. The Company is required to adopt the new standard for its 2027 annual reporting and interim periods thereafter, using either a prospective or retrospective approach. Management is currently evaluating the potential impact that the adoption of this standard will have on the Companys disclosures. In September 2025, the FASB issued a new accounting pronouncement regarding accounting for internal-use software costs. The standard requires that entities capitalize software costs when both management has authorized and is committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the function intended, referred to as the probable-to-complete recognition threshold. In evaluating the probable-to-complete recognition threshold, all entities that account for internal-use software costs under GAAP are required to consider whether …

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7. Related Party Transactions The Company has ownership interests in certain of its agents accounted for under the equity method of accounting. The Company pays these agents commissions for money transfer and other services provided on the Companys behalf. Commission expense recognized for these agents for the three months ended June 30, 2026 and 2025 totaled $ 10.3 million and $ 10.5 million, respectively, and $ 19.8 million and $ 20.5 million for the six months ended June 30, 2026 and 2025 , respectively. …

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2. Revenue The Companys revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the send and receive funding method, the principal amount sent, and, when the money transfer involves different send and receive currencies, the difference between the exchange rate set by the Company to the customer and a rate available in the wholesale foreign exchange market. The Company also offers other consumer services, for which revenue is impacted by similar factors. The Company analyzes its different services individually to determine the appropriate basis for revenue recognition. For additional information on the Companys different services, refer to the Companys consolidated financial statements within the Companys Annual Report on Form 10-K for the year ended December 31, 2025. Revenues from consumer money transfers are included in the Companys Consumer Money Transfer segment, and revenues from consumer bill payment, money order, travel money, and other services are included in the Companys Consumer Services segment. See Note 14 for further information on the Companys segments. The substantial majority of the Companys revenue is recognized at a point in time. The following tables represent the disaggregation of revenue earned from contracts with customers by product type and region for the three and six months ended June 30, 2026 and 2025 (in millions). The …

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14. Segments As further described in Note 1, the Company has classified its business into the following segments : Consumer Money Transfer and Consumer Services. Operating segments are defined as components of an enterprise that engage in business activities, about which separate financial information is available that is evaluated regularly by the Companys Chief Operating Decision Maker (CODM) in allocating resources and assessing performance. The Companys CODM is the President and Chief Executive Officer . The CODM uses segment operating income or loss to assess performan ce, including by comparing the results of each segment with one another, and allocate resources to the segments. This measure includes all expenses necessary to operate the segment and enables the CODM to understand segment profitability based on prior resource allocation decisions. This measure also excludes certain expenses such as exit costs and other severance which may be driven by corporate initiatives or could result in a lack of comparability if included in segment operating income. The Consumer Money Transfer operating segment facilitates money transfers between two consumers. The segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. The Company includes Branded Digital transactions in its regions. By means of common processes and systems, these regions, including Branded Digit …

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9. Stockholders Equity Accumulated Other Comprehensive Loss The following table details reclassifications out of Accumulated other comprehensive loss (AOCL) and into Net income. All amounts reclassified from AOCL affect the line items as indicated below and the amounts in parentheses indicate decreases to Net income in the Condensed Consolidated Statements of Income (in millions). Amounts Reclassified from AOCL to Net Income Three Months Ended Six Months Ended Income Statement June 30, June 30, Income for the period (in millions) Location 2026 2025 2026 2025 Accumulated other comprehensive loss components: Gains/(losses) on investment securities: Available-for-sale securities Revenues $ $ $ ( 0.3 ) $ 1.1 Income tax expense Provision for income taxes ( 0.2 ) Total reclassification adjustments related to investment securities, net of tax ( 0.3 ) 0.9 Gains/(losses) on cash flow hedges: Foreign currency contracts Revenues ( 4.2 ) ( 4.1 ) ( 10.8 ) ( 1.5 ) Interest rate contracts Interest expense ( 0.1 ) 0.1 ( 0.1 ) 0.1 Income tax benefit/(expense) Provision for income taxes 0.4 ( 0.4 ) 0.9 ( 0.4 ) Total reclassification adjustments related to cash flow hedges, net of tax ( 3.9 ) ( 4.4 ) ( 10.0 ) ( 1.8 ) Total reclassifications, net of tax $ ( 3.9 ) $ ( 4.4 ) $ ( 10.3 ) $ ( 0.9 ) The following tables summarize the components of AOCL, net of tax in the accompanying Condensed Consolidated Balance Sheets (in millions): Investment Hedging Foreign Currency Securities Activities Translat …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing