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Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segments

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 Company’s Chief Operating Decision Maker (“CODM”) in allocating resources and assessing performance.

The Company's CODM is the President and Chief Executive Officer. The CODM uses segment operating income or loss to assess performance 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, other severance, and operating expense redeployment activities 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 Digital, create one interconnected global network for consumer transactions, thereby constituting one Consumer Money Transfer business and one operating segment.

The Consumer Services segment primarily includes the Company’s bill payment services, money order services, travel money services, media network, prepaid cards, lending partnerships, and digital wallets.

The Company’s segments are reviewed separately below because each segment addresses a different combination of customer groups, distribution networks, and services offered. The business segment measurements provided to, and evaluated by, the Company’s CODM are computed in accordance with the following principles:

•
The accounting policies of the segments are the same as those described in the summary of significant accounting policies in the consolidated financial statements within the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
•
Corporate costs, including overhead expenses, are allocated to the segments primarily based on a percentage of the segments’ revenue compared to total revenue.
•
The CODM does not review total assets by segment and capital expenditures for purposes of assessing segment performance and allocating resources. As such, the disclosure of total assets by segment and capital expenditures have not been included below.
•
All items not included in operating income are excluded from the segments.

The following tables present the Company’s segment results for the three and six months ended June 30, 2025 and 2024 (in millions):

 

Three Months Ended June 30, 2025

 

 

Consumer Money Transfer

 

 

Consumer Services

 

 

Total

 

Revenues

 

$

885.0

 

 

$

141.1

 

 

$

1,026.1

 

Expenses:

 

 

 

 

 

 

 

 

 

Direct transactional expenses (a)

 

 

413.8

 

 

 

36.4

 

 

 

450.2

 

Depreciation and amortization (b)

 

 

23.9

 

 

 

5.4

 

 

 

29.3

 

Other segment items (c)

 

 

279.6

 

 

 

67.7

 

 

 

347.3

 

Total segment operating income

 

$

167.7

 

 

$

31.6

 

 

$

199.3

 

Severance costs (d)

 

 

 

 

 

 

 

 

(3.5

)

Acquisition, separation, and integration costs (e)

 

 

 

 

 

 

 

 

(1.4

)

Amortization of acquisition-related intangible assets (f)

 

 

 

 

 

 

 

 

(0.9

)

Russia termination costs (g)

 

 

 

 

 

 

 

 

(0.8

)

Total consolidated operating income

 

 

 

 

 

 

 

$

192.7

 

 

 

Three Months Ended June 30, 2024

 

 

Consumer Money Transfer

 

 

Consumer Services

 

 

Total

 

Revenues

 

$

965.0

 

 

$

101.4

 

 

$

1,066.4

 

Expenses:

 

 

 

 

 

 

 

 

 

Direct transactional expenses (a)

 

 

438.5

 

 

 

31.5

 

 

 

470.0

 

Depreciation and amortization (b)

 

 

24.7

 

 

 

4.2

 

 

 

28.9

 

Other segment items (c)

 

 

310.3

 

 

 

54.6

 

 

 

364.9

 

Total segment operating income

 

$

191.5

 

 

$

11.1

 

 

$

202.6

 

Redeployment program costs (h)

 

 

 

 

 

 

 

 

(9.4

)

Acquisition, separation, and integration costs (e)

 

 

 

 

 

 

 

 

(0.5

)

Amortization and impairment of acquisition-related intangible assets (f)

 

 

 

 

 

 

 

 

(2.0

)

Total consolidated operating income

 

 

 

 

 

 

 

$

190.7

 

 

 

Six Months Ended June 30, 2025

 

 

Consumer Money Transfer

 

 

Consumer Services

 

 

Total

 

Revenues

 

$

1,757.9

 

 

$

251.8

 

 

$

2,009.7

 

Expenses:

 

 

 

 

 

 

 

 

 

Direct transactional expenses (a)

 

 

817.7

 

 

 

64.8

 

 

 

882.5

 

Depreciation and amortization (b)

 

 

49.3

 

 

 

10.4

 

 

 

59.7

 

Other segment items (c)

 

 

563.9

 

 

 

117.9

 

 

 

681.8

 

Total segment operating income

 

$

327.0

 

 

$

58.7

 

 

$

385.7

 

Severance costs (d)

 

 

 

 

 

 

 

 

(9.9

)

Acquisition, separation, and integration costs (e)

 

 

 

 

 

 

 

 

(3.0

)

Amortization of acquisition-related intangible assets (f)

 

 

 

 

 

 

 

 

(1.1

)

Russia termination costs (g)

 

 

 

 

 

 

 

 

(1.6

)

Total consolidated operating income

 

 

 

 

 

 

 

$

370.1

 

 

 

 

Six Months Ended June 30, 2024

 

 

Consumer Money Transfer

 

 

Consumer Services

 

 

Total

 

Revenues

 

$

1,927.0

 

 

$

188.5

 

 

$

2,115.5

 

Expenses:

 

 

 

 

 

 

 

 

 

Direct transactional expenses (a)

 

 

868.2

 

 

 

53.2

 

 

 

921.4

 

Depreciation and amortization (b)

 

 

49.4

 

 

 

8.2

 

 

 

57.6

 

Other segment items (c)

 

 

630.3

 

 

 

97.4

 

 

 

727.7

 

Total segment operating income

 

$

379.1

 

 

$

29.7

 

 

$

408.8

 

Redeployment program costs (h)

 

 

 

 

 

 

 

 

(23.4

)

Acquisition, separation, and integration costs (e)

 

 

 

 

 

 

 

 

(0.6

)

Amortization and impairment of acquisition-related intangible assets (f)

 

 

 

 

 

 

 

 

(2.0

)

Total consolidated operating income

 

 

 

 

 

 

 

$

382.8

 

 

 

(a)
Direct transactional expenses include commissions to agents, bank fees, credit and non-credit losses, and other variable expenses.
(b)
Depreciation and amortization excludes amortization of capitalized contract costs paid to agents and partners, as this amortization is recorded as commissions to agents and partners and is therefore included in direct transactional expenses. Amortization of capitalized contract costs included within direct transactional expenses in the Consumer Money Transfer segment was $10.9 million and $17.2 million for the three months ended June 30, 2025 and 2024, respectively, and $22.4 million and $35.1 million for the six months ended June 30, 2025 and 2024, respectively.
(c)
Other segment items primarily consists of salaries and benefits, professional services, equipment and software expenses, advertising costs, and lease and facilities costs.
(d)
Represents severance costs, which have been excluded from the segments as management excludes severance in making operating decisions, including allocating resources to the Company's segments. Prior to the fourth quarter of 2024, these severance costs were included in the redeployment program costs line item, and therefore, severance costs have been consistently excluded from segment operating income in the tables above.
(e)
Represents the impact from expenses incurred in connection with the Company's acquisition and divestiture activity, including for the review and closing of these transactions, and integration costs directly related to the Company's acquisitions.
(f)
Represents the non-cash amortization and impairment of acquired intangible assets in connection with recent business acquisitions.
(g)
Represents the costs associated with operating the Russian entity. While the Company had previously made a decision to suspend its operations in Russia, in the third quarter of 2024, the Company decided to pursue either liquidating or selling the Russian assets. In the first quarter of 2025, the Company signed a definitive sale agreement subject to regulatory approvals.
(h)
Represented severance, expenses associated with streamlining the Company's organizational and legal structure, and other expenses associated with the Company's program which redeployed investment and expenses in the Company's cost base through optimizations in vendor management, real estate, marketing, and people strategy, as previously announced in October 2022. Expenses incurred under the program also included non-cash impairments of operating lease ROU assets and property and equipment.

 

For all of the items excluded from the Company’s segment operating income results above, the expenses were not included in the measurement of segment operating income provided to the CODM for purposes of performance assessment and resource allocation.