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Wise PLC Class A (GB:WISE)
LSE:WISE
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Wise PLC Class A (WISE) AI Stock Analysis

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GB:WISE

Wise PLC Class A

(LSE:WISE)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
1,164.00p
▲(22.40% Upside)
Wise PLC's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company's robust growth metrics and strategic initiatives are promising, although technical indicators suggest caution due to bearish trends. Valuation is reasonable, supporting the company's long-term potential.
Positive Factors
Customer Growth
The significant increase in active customers, driven largely by word-of-mouth, indicates strong market acceptance and potential for sustained revenue growth.
Cash Flow Management
Strong free cash flow and high operating cash flow to net income ratio support Wise's ability to fund growth initiatives and maintain financial stability.
Revenue and Profit Growth
Consistent revenue and profit growth demonstrate Wise's effective business model and operational efficiency, supporting long-term financial health.
Negative Factors
North America Revenue Softness
Revenue softness in North America could indicate regional challenges that may affect Wise's ability to capture market share and sustain growth in this key region.
Price Reduction Impact
The impact of price reductions on revenue growth highlights potential pressure on margins, which could affect profitability if not offset by volume increases.
Take Rate Decline
A declining take rate may pressure revenue per transaction, necessitating higher transaction volumes to maintain revenue levels, which could challenge profitability.

Wise PLC Class A (WISE) vs. iShares MSCI United Kingdom ETF (EWC)

Wise PLC Class A Business Overview & Revenue Model

Company DescriptionWise PLC Class A (WISE) is a financial technology company that specializes in international money transfers and currency exchange services. The company operates primarily in the fintech sector, offering a user-friendly platform that enables individuals and businesses to send money across borders at lower costs compared to traditional banks. Wise provides services such as multi-currency accounts, borderless payments, and real-time currency conversion, catering to a global audience seeking transparent and efficient financial solutions.
How the Company Makes MoneyWise generates revenue primarily through transaction fees charged for currency conversions and money transfers. The company operates on a transparent pricing model, where it offers lower fees than traditional banking methods by leveraging its proprietary technology and network. Key revenue streams include fees from individual users transferring money, fees from businesses utilizing Wise for payroll or supplier payments, and fees from currency exchange services. Additionally, Wise benefits from partnerships with banks and financial institutions that enhance its capabilities and expand its customer base, contributing to overall earnings.

Wise PLC Class A Earnings Call Summary

Earnings Call Date:Jun 05, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a positive sentiment with significant growth in customer base, holdings, and revenue despite some regional revenue softness and impacts from price reductions.
Q4-2025 Updates
Positive Updates
Strong Customer Growth
Active customers increased by 21% year-on-year, with personal customers growing by 22% and business customers by 11%. Word-of-mouth was a significant driver, with 70% of customer growth coming from this channel.
Substantial Increase in Customer Holdings
Customer holdings grew by 33% year-on-year to GBP21.5 billion, driven by a 55% increase in assets under management.
Revenue and Profit Growth
Underlying income grew by 16% to GBP1.4 billion, with underlying profit before tax increasing by 17% to GBP282 million.
Wise Platform Expansion
Wise Platform represented 4% of cross-border volume, with new partnerships including Raiffeisen Bank and Itau.
Efficient Cost Management
Cost of sales increased by only 5%, significantly lower than the underlying income growth of 16%, allowing gross profit margins to expand to 75%.
Negative Updates
North America Revenue Softness
There was a noted softness in revenue performance from North America in the second half of the fiscal year.
Price Reduction Impact
Cross border revenue growth was only 6%, reflecting the impact of price reductions and a decrease in cross-border take rate.
Company Guidance
In the FY 2025 results presentation, Wise highlighted significant growth metrics and strategic updates. The company reported serving 15.6 million active customers, reflecting a 21% year-on-year increase, and moved GBP 145 billion in cross-border transactions, marking a 23% growth. Customer holdings grew by 33% to GBP 21.6 billion, underlining the increasing traction of Wise's account offerings. The underlying income for FY 2025 rose by 19% to GBP 1.4 billion, with underlying profit before tax up by 17%, reaching over GBP 0.5 billion. Wise's platform business, noted for its strategic partnerships with major banks like Itau and Raiffeisen, represented 4% of the cross-border volume, illustrating its growing significance. The company emphasized its commitment to lowering fees sustainably, with the take rate declining to 53 basis points. Looking ahead, Wise aims to expand its market share within the GBP 32 trillion cross-border market, supported by infrastructure investments and strategic initiatives like a proposed US dual listing to enhance liquidity and market presence.

Wise PLC Class A Financial Statement Overview

Summary
Wise PLC demonstrates strong financial performance with robust revenue growth, healthy profit margins, a strong equity position, and excellent cash flow management. These factors indicate a solid financial foundation and effective strategic financial management.
Income Statement
92
Very Positive
Wise PLC has demonstrated strong revenue growth, with a consistent upward trend over the years. The gross profit margin is robust, reflecting efficient cost management and pricing strategies. The net profit margin has also improved, indicating solid profitability. The EBIT and EBITDA margins are healthy, showcasing good operational performance.
Balance Sheet
88
Very Positive
The company maintains a very strong equity position with a low debt-to-equity ratio, indicating a conservative approach to leveraging. The return on equity is impressive, showing effective utilization of shareholders' funds. The equity ratio suggests a stable financial structure with assets largely funded by equity rather than liabilities.
Cash Flow
90
Very Positive
Wise PLC exhibits excellent cash flow management, with strong free cash flow generation and a high operating cash flow to net income ratio. The free cash flow to net income ratio further underscores the company's ability to convert net income into cash effectively, supporting future growth and investment opportunities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.76B1.81B1.41B986.30M563.80M421.00M
Gross Profit654.90M1.31B1.10B638.20M369.10M260.50M
EBITDA603.40M598.60M520.00M166.90M62.90M60.90M
Net Income416.70M416.70M354.60M114.00M32.90M30.90M
Balance Sheet
Total Assets19.25B19.25B15.14B11.90B7.56B4.30B
Cash, Cash Equivalents and Short-Term Investments12.83B12.83B9.22B7.65B2.32B1.62B
Total Debt185.60M185.60M224.20M264.40M95.70M98.70M
Total Liabilities17.86B17.86B14.16B11.33B7.16B4.02B
Stockholders Equity1.39B1.39B979.90M576.90M409.20M285.30M
Cash Flow
Free Cash Flow2.21B4.46B3.24B3.91B3.13B2.05B
Operating Cash Flow2.25B4.49B3.25B3.92B3.14B2.07B
Investing Cash Flow-598.40M-598.40M-142.60M-2.59B-490.40M-671.80M
Financing Cash Flow2.07B-181.30M-125.60M153.90M-1.30M24.80M

Wise PLC Class A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price951.00
Price Trends
50DMA
1057.92
Negative
100DMA
1059.10
Negative
200DMA
1038.46
Negative
Market Momentum
MACD
-29.89
Positive
RSI
26.39
Positive
STOCH
16.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WISE, the sentiment is Negative. The current price of 951 is below the 20-day moving average (MA) of 1016.95, below the 50-day MA of 1057.92, and below the 200-day MA of 1038.46, indicating a bearish trend. The MACD of -29.89 indicates Positive momentum. The RSI at 26.39 is Positive, neither overbought nor oversold. The STOCH value of 16.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WISE.

Wise PLC Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£148.47M9.5824.53%16.57%-27.01%-49.07%
75
Outperform
£12.06B23.4435.22%17.53%15.88%
75
Outperform
£2.76B17.2817.42%2.70%21.86%0.86%
69
Neutral
£3.06B24.4447.63%1.94%10.75%10.61%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
53
Neutral
£214.96M61.364.99%2.67%-17.17%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:WISE
Wise PLC Class A
951.00
247.00
35.09%
GB:CCC
Computacenter
2,630.00
242.89
10.18%
GB:FDM
FDM Group (Holdings)
135.80
-205.70
-60.23%
GB:RCN
Redcentric
135.00
18.55
15.93%
GB:SCT
Softcat
1,537.00
45.68
3.06%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 01, 2025