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Wise PLC Class A (GB:WISE)
LSE:WISE
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Wise PLC Class A
(LSE:WISE)
Select Model
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Rating:82Outperform
Price Target:
966.00p
▲(15.69% Upside)
Action:ReiteratedDate:01/21/26
The score is led by very strong financial performance (growth, profitability, balance-sheet strength, and cash flow), supported by a generally positive earnings call focused on customer and volume momentum. Offsetting factors are a relatively high valuation (P/E ~25.7 with no dividend) and mixed technical signals with negative MACD and an elevated RSI.
Positive Factors
Free cash flow conversion
Consistently strong free cash flow and high operating cash conversion give Wise durable funding for technology, compliance, and international expansion without needing high leverage. This supports reinvestment, cushions cyclical revenue swings, and underpins long-term growth funding.
Conservative balance sheet
A low leverage, equity-funded balance sheet improves financial resilience and flexibility. This conservative capital structure reduces refinancing risk, supports regulatory capital needs for banking features, and enables strategic investments or partnerships with limited balance-sheet strain.
Customer & volume momentum
Rapid active-customer additions and rising cross-border volumes strengthen network effects, scale benefits and brand trust. Higher customer holdings and instant payments adoption increase engagement and cross-sell potential, supporting sustained transaction revenue growth over coming quarters.
Negative Factors
Take-rate pressure
A declining take rate reduces revenue per transaction and requires materially higher volumes to sustain revenue growth. If competitive pricing and route mix trends persist, margin recovery will rely on scale, product upsell, or higher-margin platform adoption, making profitability sensitive to mix shifts.
Rising operating cost base
Structural investments in compliance, risk and infrastructure raise the fixed cost base, compressing operating leverage until productivity gains materialize. Sustained higher opex will pressure margins and require either faster top-line or efficiency improvements to preserve target profit margins.
EPS contraction
Negative EPS growth indicates earnings per share have declined, reflecting margin pressure, higher costs, or dilution. Persistent EPS contraction can limit capital return capacity and investor confidence unless offset by clear margin recovery or accelerating high-quality revenue streams.
Wise PLC Class A (WISE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£10.11B
Dividend YieldN/A
Average Volume (3M)1.74M
Price to Earnings (P/E)22.2
Beta (1Y)0.70
Revenue Growth8.87%
EPS Growth-10.29%
CountryUK
Employees6,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.18
Shares Outstanding1,025,672,200
10 Day Avg. Volume2,175,526
30 Day Avg. Volume1,742,398
Financial Highlights & Ratios
PEG Ratio1.33
Price to Book (P/B)7.04
Price to Sales (P/S)5.40
P/FCF Ratio2.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,266.29Price Target Upside51.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.37
Revenue Forecast (FY)£1.58B
Wise PLC Class A Business Overview & Revenue Model
Company DescriptionWise 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.
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:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 30, 2026
Earnings Call Sentiment Neutral
The earnings call demonstrates strong customer growth and increased engagement, with significant investments in technology and partnerships driving future potential. However, these are tempered by pricing pressures, high operational costs, and significant one-time expenses.Q2-2026 Updates
Positive Updates
Customer Growth and Engagement
Added 2 million active customers, reaching 13 million people and businesses using Wise. Cross-border volumes increased by 24% to nearly GBP 85 billion in the half year.
Increase in Customer Trust and Holdings
Customers now trust Wise with over GBP 25 billion in cash, held as deposits or investments through the Wise Account.
Revenue and Profit Growth
Underlying income grew by 16% to GBP 750 million annually, and underlying profit before tax met the top of the target margin range of 13% to 16%.
Wise Platform Expansion
Wise Platform now accounts for 5% of cross-border volumes, with a target to reach 10% in the medium term. Significant partnerships with major banks like UniCredit and Raiffeisen Bank.
Investment in Technology and Customer Experience
74% of payments are now instant, and significant investments in AI and automation for customer service have improved the Net Promoter Score to 69.
Negative Updates
Pricing Pressure
Cross-border take rate decreased by 10 basis points year-on-year to 52 basis points, with revenue increasing only 5% compared to last year.
High Operational Costs
Administrative expenses are expected to reach around GBP 1 billion for the full year, driven by investments in compliance, risk, and infrastructure.
Significant One-Time Costs
GBP 35 million in one-off costs related to a dual listing project, affecting the overall profitability for the year.
Company Guidance
In the recent Wise call, the company reported significant growth and strategic investments that have bolstered their performance. They added 2 million active customers, reaching 13 million in total, and achieved a 24% increase in cross-border volumes, amounting to nearly GBP 85 billion for the half-year. Wise has also successfully reduced their average fees by approximately 15%, resulting in a stronger customer affinity and a 13% growth in underlying income. Customer holdings have exceeded GBP 25 billion, highlighting growing trust. Additionally, 74% of payments are now instant, with money reaching recipients in under 20 seconds. Wise's active customer base expanded by 21%, and the cross-border volume grew by 34% annually. The company remains committed to sustainable growth, aiming for a profit before tax margin between 13% and 16%. Looking ahead, Wise plans to continue investing in infrastructure and international banking features, while maintaining a strategic focus on pricing and customer retention.Wise PLC Class A Financial Statement Overview
Summary
Strong fundamentals driven by consistent revenue growth, robust and improving profitability (healthy gross/net/EBITDA margins), a conservative balance sheet with low leverage and strong equity, and excellent cash conversion with solid free cash flow generation.Income Statement
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.92
Very Positive
Balance Sheet
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.88
Very Positive
Cash Flow
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.90
Very Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.91B | 1.81B | 1.41B | 986.30M | 563.80M | 421.00M |
| Gross Profit | 680.20M | 1.31B | 1.10B | 638.20M | 369.10M | 260.50M |
| EBITDA | 551.00M | 598.60M | 520.00M | 179.70M | 71.20M | 70.40M |
| Net Income | 386.60M | 416.70M | 354.60M | 114.00M | 32.90M | 30.90M |
Balance Sheet | ||||||
| Total Assets | 22.11B | 19.25B | 15.14B | 11.90B | 7.56B | 4.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.58B | 12.83B | 9.22B | 7.65B | 2.32B | 1.62B |
| Total Debt | 301.30M | 185.60M | 224.20M | 264.40M | 95.70M | 98.70M |
| Total Liabilities | 20.68B | 17.86B | 14.16B | 11.33B | 7.16B | 4.02B |
| Stockholders Equity | 1.43B | 1.39B | 979.90M | 576.90M | 409.20M | 285.30M |
Cash Flow | ||||||
| Free Cash Flow | 598.40M | 4.46B | 3.24B | 3.91B | 3.13B | 2.05B |
| Operating Cash Flow | 632.90M | 4.49B | 3.25B | 3.92B | 3.14B | 2.07B |
| Investing Cash Flow | -714.20M | -598.40M | -142.60M | -2.59B | -490.40M | -671.80M |
| Financing Cash Flow | 4.67B | -181.30M | -125.60M | 153.90M | -1.30M | 24.80M |
Wise PLC Class A Technical Analysis
Negative
835.00
Price Trends
886.43
Negative
907.45
Negative
988.27
Negative
Market Momentum
-16.75
Positive
42.36
Neutral
22.17
Neutral
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 835 is below the 20-day moving average (MA) of 879.13, below the 50-day MA of 886.43, and below the 200-day MA of 988.27, indicating a bearish trend. The MACD of -16.75 indicates Positive momentum. The RSI at 42.36 is Neutral, neither overbought nor oversold. The STOCH value of 22.17 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | £10.11B | 22.16 | 35.22% | ― | 8.87% | -10.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | £24.94M | -4.82 | -67.57% | ― | -12.11% | -106.04% | |
39 Underperform | £9.30M | -4.17 | -29.54% | ― | -44.27% | -350.00% |
* Technology Sector Average
GB:WISE
Wise PLC Class A
849.00
-141.00
-14.24%
GB:TIA
IDE Group Holdings Plc
62.50
26.50
73.61%
GB:GST
GSTechnologies
0.37
-1.31
-77.98%
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.