Download PDF

1. Company Snapshot

1.a. Company Description

Wise plc provides cross-border money transfer services for personal and business customers in the United Kingdom, rest of Europe, the Asia-Pacific, North America, and internationally.The company's transfer infrastructure includes Wise Account for international people who need to move and manage money across borders; Wise Business for international businesses need; and Wise Platform that allows businesses and banks to offer their own customers international payments.It also offers online currency exchange services, as well as engages in the investment activities.


The company was formerly known as 456 Newco plc and changed its name to Wise plc in June 2021.Wise plc was founded in 2010 and is based in London, the United Kingdom.

Show Full description

1.b. Last Insights on WISE

Wise's recent performance has been impacted by several negative factors. The company's pretax profit dropped 13% due to increased administrative expenses, including hiring. Additionally, analysts have revised their fair value price target downward from £12.06 to £11.80 per share, citing a modestly higher discount rate. Furthermore, the company's anti-crypto stance has raised concerns, potentially undermining its Web3 ambitions. Wise's expansion plans and partnerships, such as with Wealthsimple, may not be enough to offset these challenges.

1.c. Company Highlights

2. Wise's H1 FY'26 Results: Strong Customer Growth and Profitable Expansion

Wise reported a robust financial performance in the first half of FY'26, with active customers growing by 21% year-over-year to 13 million. Cross-border volumes increased by 24% to GBP 85 billion, driven by a strong service experience and infrastructure investments. The company's revenue growth was supported by a 59% year-over-year increase in marketing and sales investments to GBP 57 million, with a payback period remaining strong at 6 months. Wise's EPS came in at 0.1799, slightly below analyst estimates of 0.1857. The company's gross margin remained flat due to a mix shift in payment methods, with customers moving to cheaper options.

Publication Date: Nov -15

📋 Highlights
  • Customer Growth:: Added 2 million active customers (70% via referrals) in H1 FY26, reaching 13 million total active customers.
  • Revenue Growth:: Cross-border transaction volume increased 24% to GBP 85 billion in H1 FY26.
  • Marketing Investments:: Marketing and sales expenses surged 59% YoY to GBP 57 million, with a 6-month payback period.
  • Platform Momentum:: Platform volume share rose to 5% in H1 FY26 (up from 4% in Q1), targeting 10% midterm and 50% long-term.

Financial Highlights

The company's administrative expenses are expected to be around GBP 1 billion for the full year, driven by investments in servicing, marketing, and hiring. Wise added 1,000 employees in H1, bringing the total headcount to over 7,000, and plans to continue hiring in H2. The company's capital allocation framework remains focused on delivering strong profitable growth, maintaining a strong capital position, and ensuring resilience and flexibility.

Valuation and Growth Prospects

Wise's current valuation metrics indicate a premium, with a P/E Ratio of 22.9 and a P/S Ratio of 5.38. Analysts estimate next year's revenue growth at 20.8%. The company's Return on Equity (ROE) stands at 32.56%, indicating strong profitability. Wise's growth prospects are supported by its expanding customer base, increasing cross-border volumes, and investments in infrastructure and product development.

Platform Business and Stablecoins

Wise's platform business demonstrated strong momentum, with 5% of volumes growing around 3 times faster than total volumes. The company is on track to reach 10% of volumes from platforms in the medium term. Wise is also exploring the use of stablecoins, leveraging its existing infrastructure and regulatory framework to facilitate fast and efficient transactions.

Operational Efficiency and Culture

Wise is focused on increasing operational efficiency, with investments in AI and automation driving improvements in customer servicing. The company has developed a strong culture over the last 12 years, with a successful onboarding process for new employees. The addition of 1,000 new employees in H1 has not disrupted the company culture, with new hires quickly integrating into the organization.

3. NewsRoom

Card image cap

What New Catalysts Are Shaping the Narrative for Wise Now?

Dec -04

Source:

Card image cap

Tracking the Evolving Narrative for Wise as Analyst Views and Growth Prospects Shift

Nov -19

Source:

Card image cap

Crypto Companies, Fintechs and Retailers Scramble to Become Banks

Nov -14

Source:

Card image cap

Why Every Company Suddenly Wants to Become a Bank

Nov -14

Source:

Card image cap

Wise Platform partners with Wealthsimple to offer enhanced international payments services for Canadians

Nov -12

Source:

Card image cap

Wise PLC (WPLCF) (Half Year 2026) Earnings Call Highlights: Strong Customer Growth Amidst ...

Nov -07

Source:

Card image cap

Wise Shares Recover After Solid Results Ahead of U.S. Listing Move

Nov -06

Source:

Card image cap

Wise Continues Crypto Crackdowns Despite Announced Stablecoin Pivot

Oct -22

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.49%)

6. Segments

Personal

Expected Growth: 10.27%

Wise plc's Personal segment growth of 10.27% is driven by increasing adoption of digital payment solutions, rising demand for cross-border transactions, and expansion into new markets. Additionally, the company's focus on customer experience, competitive pricing, and innovative products have contributed to its growth momentum.

Business

Expected Growth: 11.23%

Wise plc's 11.23% growth is driven by increasing demand for cross-border payment solutions, expansion into new markets, and strategic partnerships. The company's competitive pricing, user-friendly interface, and innovative products have attracted a large customer base, resulting in high retention rates and revenue growth.

7. Detailed Products

Borderless Account

A multi-currency account that allows users to hold and convert funds in over 40 currencies, with the ability to receive and send money internationally.

Money Transfer

A service that enables users to send money internationally at a lower cost and with better exchange rates compared to traditional banks.

Debit Card

A debit card linked to the Borderless Account, allowing users to spend money in multiple currencies with low fees and competitive exchange rates.

Business Account

A business account that provides multi-currency management, invoicing, and payment tracking features for businesses.

API and Integrations

APIs and integrations that enable businesses to integrate Wise's payment and currency conversion capabilities into their own platforms.

8. Wise plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Wise plc operates in a niche market with limited substitutes, but the threat of digital banking and fintech companies cannot be ignored.

Bargaining Power Of Customers

Wise plc's customers are primarily individuals and small businesses, who have limited bargaining power due to the company's competitive pricing and quality of service.

Bargaining Power Of Suppliers

Wise plc has a diversified supplier base, and the company's scale and reputation give it significant bargaining power over its suppliers.

Threat Of New Entrants

While there are barriers to entry in the online money transfer market, new entrants can still disrupt the market with innovative solutions and competitive pricing.

Intensity Of Rivalry

The online money transfer market is highly competitive, with established players like PayPal and TransferWise, as well as new entrants, competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.43%
Debt Cost 4.86%
Equity Weight 68.57%
Equity Cost 7.50%
WACC 6.67%
Leverage 45.83%

11. Quality Control: Wise plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Wise

A-Score: 6.0/10

Value: 4.9

Growth: 9.2

Quality: 8.0

Yield: 0.0

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Sopra Steria

A-Score: 5.2/10

Value: 8.3

Growth: 5.7

Quality: 5.0

Yield: 4.4

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Softcat

A-Score: 5.2/10

Value: 2.0

Growth: 5.8

Quality: 8.0

Yield: 3.1

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Bechtle

A-Score: 4.8/10

Value: 5.3

Growth: 6.6

Quality: 4.9

Yield: 3.1

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
TietoEVRY

A-Score: 4.8/10

Value: 6.8

Growth: 1.9

Quality: 1.8

Yield: 9.4

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Lagercrantz Group

A-Score: 4.4/10

Value: 0.7

Growth: 8.3

Quality: 6.2

Yield: 1.2

Momentum: 5.5

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.64$

Current Price

8.64$

Potential

-0.00%

Expected Cash-Flows