Key facts
- Wise's profit before tax fell 8% to $660 million in the latest financial year.
- Revenue surged nearly 20% to $2.5 billion, with customer numbers up 21% to 19 million.
- Costs increased by almost 40% to $1.9 billion, outpacing revenue growth.
- The company spent $473.4 million on share repurchases prior to its Nasdaq listing.
- Belgian prosecutors are investigating Wise accounts for potential anti-money laundering violations.
Money transfer firm Wise has reported a decline in its profit before tax for its latest financial year, which fell eight percent to $660 million, down from $717.5 million in the previous year. This downturn occurred despite a nearly 20 percent surge in revenue to $2.5 billion and a 21 percent increase in customer numbers to 19 million.
The company's performance was impacted by a significant rise in costs, which shot up by almost 40 percent to $1.9 billion, outstripping revenue growth. Transaction expenses alone increased by 36 percent to $514 million, driven by the expanding customer base. Wise also increased its investment in technology by 38 percent to $434 million, hiring more engineering staff and enhancing its cloud infrastructure.
Marketing and sales costs saw a substantial jump of 62 percent to $172 million. Ahead of its primary listing on the Nasdaq on May 11, Wise spent $473.4 million on share repurchases. The firm's Employee Share Trust purchased 35.9 million shares from the open market to mitigate shareholder dilution from historical share options.
To facilitate its primary listing shift, Wise established a Jersey entity as its ultimate parent company, contributing to a 40 percent increase in general and administrative costs, which reached $382 million over the past 12 months. The fintech had announced its intention to change its listing in June 2025, aiming for potential inclusion in major US indices, a move seen as a blow to London's financial district.
Separately, Belgian prosecutors initiated an investigation last year into Wise accounts, which had been flagged in hundreds of international criminal requests across over 30 European countries. The transactions under scrutiny amount to approximately €500 million, with investigators examining potential breaches of anti-money laundering (AML) laws and whether illicit proceeds from fraud, corruption, and drug smuggling were funneled through Wise accounts. This probe focuses on Wise's European operations managed from Brussels and does not directly affect its UK users.
Wise has announced plans to initiate a new share buyback following its annual results, which it expects to exceed $500 million.