Q4 FY2026 Trading Update

Wise PLC (AIM:WISE) has reported a robust trading update for Q4 FY2026, showcasing significant growth across key metrics. The company recorded a 27% year-on-year increase in cross-border transaction volume, reaching £49.4 billion, alongside a 22% rise in active customers to 11.3 million. Additionally, customer holdings in Wise accounts surged by 37% to £29.4 billion, contributing to a 29% increase in card and other revenue. Underlying income for the quarter stood at £435.3 million, reflecting a 24% growth year-on-year. For the full fiscal year 2026, cross-border volume totaled £181.7 billion, marking a 25% increase, while underlying income grew 18% to £1,609.2 million. The company anticipates its underlying profit before tax (PBT) margin for FY26 to be at the higher end of its 13-16% target range and is on track to complete its dual listing on Nasdaq by May 11, 2026.

When assessing this announcement against prior disclosures, Wise's performance appears to align well with its previous guidance. The company had indicated a focus on growth and customer acquisition, and the reported figures reflect a consistent upward trajectory in both transaction volumes and customer engagement. The 27% growth in cross-border volume is particularly noteworthy, as it not only meets but slightly exceeds the growth rates reported in previous quarters, suggesting that Wise is effectively capitalizing on increasing demand for its services. The anticipated dual listing on Nasdaq, which will allow for reporting in USD under US GAAP, is also a strategic move aimed at enhancing visibility and access to capital markets, aligning with the company's long-term growth objectives.

Financially, Wise PLC's market capitalization is approximately GBP 9.93 billion. The company has demonstrated a solid underlying income growth, which is crucial for sustaining its operational momentum. The reported underlying income of £435.3 million for Q4 FY26 indicates a healthy revenue stream, supported by the increase in customer holdings and transaction volumes. However, the reduction in the cross-border take rate to 51 basis points from 53 basis points a year ago raises questions about pricing strategies and competitive positioning. While this reduction may reflect Wise's commitment to maintaining customer loyalty and expanding its market share, it could also impact future revenue growth if not managed carefully.

In terms of valuation, Wise PLC's growth metrics position it favorably against its peers in the fintech and cross-border payment sectors. While specific peer comparisons are limited due to the unique nature of Wise's business model, companies like TransferWise (not publicly listed), PayPal Holdings Inc (NASDAQ:PYPL), and Revolut Ltd (not publicly listed) serve as relevant benchmarks. PayPal, for instance, has a market cap of approximately USD 100 billion and has shown consistent revenue growth, although at a slower rate compared to Wise's recent performance. This comparison suggests that Wise is currently trading at a premium relative to its growth potential, which may be justified by its innovative approach and expanding customer base.

The funding sufficiency for Wise appears to be stable, especially with the upcoming dual listing expected to enhance its capital-raising capabilities. The anticipated margin for FY26 being at the higher end of the 13-16% range indicates that Wise is not only focused on growth but also on maintaining profitability. However, the costs associated with the dual listing could exert pressure on margins in the short term. The company has not indicated any immediate need for additional capital, which is a positive sign for investors concerned about dilution risks.

One notable positive from this announcement is the significant increase in customer holdings, which rose by 37% to £29.4 billion. This growth reflects a strong customer trust in Wise's platform and its ability to attract and retain users. Additionally, the launch of the UK current account with a physical branch concept on Oxford Street in London represents a strategic move to enhance customer engagement and service offerings, further solidifying Wise's position in the competitive fintech landscape.

Looking ahead, the next expected catalyst for Wise is the completion of its dual listing on Nasdaq, scheduled for May 11, 2026. This event is anticipated to provide the company with greater visibility and access to a broader investor base, potentially driving further growth in its stock price and market presence.

In conclusion, Wise PLC's Q4 FY2026 trading update presents a compelling picture of growth and strategic positioning within the fintech sector. The reported increases in transaction volumes, customer engagement, and underlying income are all positive indicators of the company's operational health. While the reduction in the cross-border take rate and the associated costs of the dual listing present some challenges, the overall sentiment surrounding this announcement is bullish. Therefore, this update can be classified as significant, as it not only highlights Wise's current performance but also sets the stage for future growth and expansion in the global market for cross-border transactions. Investors should view this announcement as a confirmation of Wise's trajectory towards becoming a leading player in the financial technology space.

Key insights

• ●Cross-border volume grew 27% YoY, exceeding prior guidance.
• ●Customer holdings surged 37%, indicating strong user trust.
• ●Upcoming Nasdaq listing expected to enhance capital access.

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