Hello, everyone, and thank you for joining us for Q2 2027 result calls. I am pleased to present our financial results for the second quarter of our financial year 2027. I am going to focus on the numbers today, but we have made great progress operationally with this quarter too, with our ninth direct integration in Malaysia, launching the Wise Account and Wise Card in Thailand, introducing Wise Assets to New Zealand, along with new platform partners. Crystal will tell you more about this progress on our half-year presentation next month. Now I go through our performance. For this quarter, we continue to drive strong growth in both active customers and volumes. Today, I am going to take you through three main points. The first one, our financial highlights in the quarter. The second, the drivers of our revenue growth and our approach to pricing.
Lastly, I will provide an update on our expectations for the year before handing over for Q&A. Now, starting with our financial highlights for Q2 2027. During the quarter, we continued to see solid growth in our main performance metrics as our customers are increasingly using Wise for everyday needs and not only for cross-border transactions. In Q2, our active customer base increased by 20% year-on-year to 12.5 million. Our cross-border volume increased by 22% year-on-year to $72 billion, with strong growth in Wise Business of 32% year-on-year. Customer holdings grew by 28% year-on-year, totaling $44 billion, including $11.5 billion held through Wise Assets. Customers spend more with their cards, with card spend up 30% year-on-year to $14 billion. Firstly, looking at what it means from a cross-border revenue. Cross-border revenue is a function of the volume we deliver together with the price we charge.
The cross-border volume increased by 22% year-on-year to $72 billion. We continue to see strong growth in our active personal and business customers, driving growth in cross-border volume. Volume was particularly strong for business customers, up 32%. We did see lower growth in higher volume transaction from the U.S., given the slight depreciation in the dollar compared to Q1. Looking at the take rate, it has reduced from 52 basis points in Q2 2026 to 49 basis points in Q2 2027. This quarter, the take rate reduced by one basis point to 49 basis points, compared to 50 at Q1 2027. You will notice that this overall decrease is lower at the expected two basis points I have previously shared with you, and this is partially due to the timing and partially due to the volume mix.
We implemented the most recent price reduction in August, and as we mentioned just before, we saw lower high volume transaction from the U.S., which are typically at the lower take rate. Given cross-border volume growth of 22%, combined with the three basis points reduction year-on-year in the take rate, our cross-border revenue increased by 16% to $355 million. I will now take you through our total revenue growth in the quarter. In Q2 2027, as I just said, we generate $355 million in cross-border revenue from customers sending or converting currency. But we also generate $206 million in cards and other revenues from customers using their card, the Wise Card abroad and at home, investing in our Wise Assets product through the Wise Account, and additional customers activities such as domestic transactions. This represent a year-on-year increase of 34%, with an increase mainly due to card revenue.
This was driven by a rise in business card spending in the U.S., and also personal card adoption grew significantly in the U.S. and in APAC. Taking together, transaction revenue totaled $551 million, representing a year-on-year growth of 22%. As we have highlighted in our past calls, customers are also trusting Wise more and more with their money. At the end of September 2026, customers held $32 billion on the Wise Account, up 22% compared to the previous year. As we invest this fund in liquid instruments, we generate $238 million in interest income during the quarter, up 18% year-on-year. Growth in customer balance didn't fully translate to interest income growth, as we saw a reduction in gross yields from 3.1% in Q2 2026 to 2.9% in Q2 2027. This shift reflects central bank decisions taking place during the past year.
While we have seen some central banks increasing interest rates over the recent month. Sorry. Sorry. Apologies, I have a technical issue. Yes, sorry. The growth balance fully transferred in interest and income growth, as we saw the reduction I mentioned before. Our assets under custody continue to grow extremely strong too, reaching $11.4 billion. This drive our total combined customers assets to $44 billion, demonstrating deep and sustained customer trust. I just covered there are different layers of customer activity, including sendings and converting money, spending with a Wise Card and growing with Wise Assets, and holding balance with us. Together, these drive our net revenue growth. In Q2 2027, we delivered $739 million in net revenue, up 21% year-on-year. With an increasingly diversified revenue base, with 52% of net revenue being driven by non-cross-border activity this quarter.
As usual, I would like to remind you of our investments framework and key areas of investments for long-term value generation. Overall, we believe in driving growth through continuous investment. Our investment framework is a clear evidence of this. By targeting medium terms 15%-20% income before tax margins, assuming we were able to pay our target interest income back to customers, we are able to invest in our growth and into our pricing. This, in exchange, drives more scale and operational efficiencies, providing us with additional margin capacity for reinvestment, and allowing us to return capital to shareholders as we are with our current buyback. Finally, looking ahead. I'd like to provide an update on our expectations for the rest of the year, as we expect to see a continued trend of rapid growth, and we aim to continue to invest to achieve this.
We have seen some increase in rates from the Fed and the ECB, and these are reflecting in our expectations. However, we do not include potential future increases in the remainder of the year. Giving this for this year, we now expect that net revenue growth will be in the upper half of the 15%-20% range on a constant currency basis. We continue to expect the full year 2027 income before tax margin around at the top of the 20-25 range. For the half year of this year, you know now that net revenue growth has been around 22% on a constant currency basis, and we expect the PBT margin to be around 23%, including one-off expense equivalent to around two percentage point. This includes circa $15 million relating to the dual listing of Wise.
We will provide further details in our half year 2027 results, including the progress we are making in unlocking transaction and efficiency and reinvesting these gains to drive future growth. Now let's move to the Q&A session.
Thanks, Emmanuel. Anyone who wants to ask a question, please raise your hand in the Zoom. We'll take the first question from Cristopher Kennedy at William Blair.
Thank you for taking the question. Emmanuel, you mentioned some of the trends of high-value sends from the U.S. Can you give us any other color from a geographic perspective?
Yeah, I think what I mentioned is basically that due to some, I say depreciation or weakness in the U.S. dollar, we've seen a slowdown on the high volume transaction in the U.S. But overall, the U.S. market and North America and the U.S. market especially, are growing extremely fast in the regions followed by APAC. So we can see a lot of tractions in the U.S. This is due to the fact that we've been launching, obviously, marketing campaign in the U.S., but also we're serving the businesses quite attractively. We have a quite significant growth in business overall. I mentioned before 20% growth for active customers to 12.5 million. I should highlight also that the business grew by 26% in terms of active customers.
US in general is by far the growing faster regions, and that's the reason why we're so excited to move to the U.S. and the U.S. listing, but also investing in this country.
Yeah. Great. Thank you for that. Then if you could just touch quickly on some of the investments that you're making to drive growth of the SMB business, whether it's integrating with local accounting platforms or onboarding initiatives. Thanks for taking the questions.
No, Cris, thank you very much. I really love these questions because this is very exciting. Actually, we've done several initiatives to drive the businesses. The first one is within the servicing team, we have been dedicated a team that is basically proactively reaching out to businesses. So not only we're reacting to the demand and questions that they may have 24/7, we also reach out to the business proactively to make sure that they can use in full the servicing that we offer. And I think that's quite a unique kind of approach if you compare to maybe legacy banks in this industry. The second part of it is, as you rightly mentioned, we are getting more and more included in their internal workflow. One aspect is not only their approval of invoices or the addition of invoices.
This is also to provide an API or to be able to be included in their, I would say, local champions accounting software. As you surely know, small businesses will not opt for Oracle or SAP of this world. They are by far too big. But then they will choose local champions. With that, I will mention companies like Visma in the Nordics. You could think about Sage in the U.K. or DATEV in Germany. And that, I think, is an investment that will pay off because the businesses will appreciate the fact that this is getting them more transparency.
Thanks, Cris. Can we have the next question from Gus Galá, please?
Hi, good afternoon. Thank you for taking our questions. Can you talk a little bit about how you're thinking of the elasticity of the price cuts versus the volume? Just any sense on the early reads versus the prior price cutting cycles. Pretty clear on the cadence of that. Anything we should be thinking about in terms of the competitive environment or the volume response around the pace of the pricing investment? I will just squeeze in my follow-up. How do you think of the marketing investment sensitivity, especially in North America, relative to the speed and timing around getting a license, applying for that? Is there anything we should be thinking about that, about the timing of that? Thanks.
No, thank you very much. Pricing is really core of our, I would say, almost a mission. We want to offer money without borders. Means like an infrastructure that allow customers to transfer money extremely fast, but also not only at the minimum fees. So maximum ease, minimum fees at the best, at the highest speed that you can offer. Price matter to the customers. This is the number one reason they come to us. By saying this, we are doing everything every month. Every Wiser is looking at efficiency gain. This efficiency gain will be then reinvest. This efficiency gain will be translate in profitability or cash flow. Then basically at the end, we will decide how do we invest this excess or this profitability, either in OpEx or to go back to pricing.
The pricing philosophy here is that we want to be agnostic on every single transaction that will take place on our platforms or on Wise. That is true for retail, that is true for SMEs, that is true for partners. So we follow the cost plus margin logic, and we are in a driving seat. We only take these kind of decisions when we are in a sustainable manner. So when we have the evidence that we are in a place where we can reduce the take rate and still generate the margin that we are targeting, only then we will pass it to the customers or, again, reinvest in our OpEx. This is like a long-term gain. We know the price elasticity is not something that you should expect for the next quarter. It is a long-term trend that we are basically following. This is true, again, for retail.
This is also true for our partners that are joining the platform. You ask about the sensitivity on marketing. I think in general here, I think you combine it with the license, I think I will distinguish both, if I may. Today, as I said, the U.S. market is a very attractive market for us, the fastest growing region, when compared to others. I think the marketing campaign that we are launching is to build an upper funnel to make sure that people are aware about Wise. The license is not having an impact on our business. Our business is strong. We already transfer money very quickly at a very attractive take rate.
That said, we want to have a license at some point, maybe in the future, to make sure that basically we can potentially reduce the take rate, but also as the volume will grow, be able to be more efficient when we transfer money.
That's very helpful. Thank you.
Thank you.
Thanks, Gus. Next question from Gregoire at Morgan Stanley.
Good morning, and thanks for taking my question. Maybe the first one would be on the one-off costs that you mentioned in the press release. Can you maybe expand a bit more on what is in there? Basically, you mentioned that part of them are due to the dual listing, but it looks like there is a bit more to it. What is in this cost that surprised you, that basically you were not expecting? I think last year already you were mentioning some dual listing costs. So what is actually coming on top there that you did not see coming? More on the take rate. Can you expand a bit more on the phasing of the take rate until the end of the year?
How should we think about that for the next quarter, and how much control do you have over that, given that it is also depending on the mix of the volumes? Thank you.
Yeah. If you do not mind, Gregoire, I will start with your second one, and then I will go back to the one-offs. The take rate, we mentioned at the beginning of the year that we would like to reduce the take rate by 1 basis point to 2 basis points of the quarter. We did so in the first quarter, 1 basis point. We also did this in the second, while not apparent here because of the volume mix I mentioned before. We aim to continue to do this during the year, but that it will depend on our investments capacities or efficiency gain. That is linked together. Once we have this efficiency, we will then reinvest in the business, and we are really happy with the investments we have done this first half here.
We were able to invest in a very profitable manner, and we see the growth rate that are in diverse KPIs today. If we have the room, we will continue to reduce the pricing for the next two quarters as we announced to the market, which will around one basis point. That will always depend of our certainty that these investments, this price reduction, will have a positive impact and will not jeopardize the margin that we are targeting. On the one-offs, the nature of one-off is that they are one-off in nature. That means that basically they are not something that is recurrent. Our U.S. listing is one of those. We listed in May. A certain cost occur once this listing was successful.
We were looking at contracts that we had with some providers, and we wanted to make sure that only when we are listing successfully, we might face some fees to be paid. The others are different sorts of one-offs. They are very tiny when you look at the completely size of the business. So that will be in more in administrative and administration categories.
Okay. Very clear. Thank you.
Thank you.
Thanks, Gregoire. Onto Justin from UBS.
Hey. Thank you very much, Emmanuel and Sarah. Hope you can hear me.
Yeah, perfectly.
Just a couple of questions from my end. First, I wanted to talk a little bit about the bank license environment. A couple of things there. Could you just give a status update on where you are with clearing the outstanding consent orders that you had dating back to the, I think it was the 2024 action brought by the several states, and the pretty small fine that you had there? Something, an event that might lead you to potentially planning on, as you kind of alluded to, reapplying for an OCC charter and any updates on the timeline which we might expect that. Separately, in recent days, we've seen quite a lot from violations of different AML money laundering, et cetera, regulations in the U.S. for quite sizable amounts.
Do you think that says anything about the compliance infrastructure that Wise has built with a much lower severity of fines? Maybe I'll start there, and I'll ask my follow-up afterwards.
No, thank you very much for that, Justin. I think in terms of, because you mentioned the consent order in the U.S. and the bank environment in general, I'm pleased to report that basically we have provided the full remediation on every points that were a part of this consent order. We are now waiting for the feedback from the authorities. But we delivered every single remediation that were basically highlighted from them. That's the status quo today, and once we get the positive feedback from the States, obviously, we'll be happy to inform you. On the timeline you mentioned, I think while we considering the timeline for the U.S. listing, we will also consider every single other remediation that we are working on today, and as you know, we working on the NBB one.
I think the timeline is open today, and I don't have a definitive one. On the U.S. fine, I would say this is a reflection of what we try to explain. We've been investing so much in compliance in KYB KYC over the last 15 years. Yet, one third of our investments, ongoing investments, are always going somehow in compliance. This is core to our heart. We know our reputation will depends on this kind of situation. I can't comment on the other banks, what they are facing, but I think this is a reflection of how difficult it is to get everything right when you do AML in the development of the technology.
Overall, we continue to invest in this area because we know this is very important, and very important for Kristo and the rest of the team that have been driving this company for 15 years.
Got it. That is super helpful. Then just my second question, I wanted to ask, and I hate to be the person to do this every quarter, but on platforms, is there any update you can give on just the ramp of some of the existing customers, whether there is some success stories you can share, incremental, say, currencies you are enabling for some of your partners, incremental functionalities? Obviously, we have seen some of the nice wins come in recently, OakNorth, I think you flagged. But anything you can provide on the progression and perhaps the run rate exiting the quarter, if that is a percentage fine or even just case studies that you can share?
Well, today I do not have case studies to present to you. But what I can tell you is that basically we are ramping up the customers that we have. You have to think about every month when we review the activities, we will add some routes with customers. If we do not have new names, then basically we add new routes, FX routes. I am also happy to report that we onboard a U.K. company, OakNorth, that is basically also new to the platform, and they will use our platform to serve their customers. They sign with us, we are live. Another one is called Vivid. They are also live with us. We still have names. We still onboard new partners. I am pretty excited by the pipeline, quite frankly.
In terms of percentage, because you mentioned this, we are now 6% at the end of this quarter, and are on track for basically the percentage that we give mid-term, it was 10% of the cross-border volume.
Awesome. Thank you so much, and congrats on a good print.
All right. Thank you so much.
Thanks, Justin. Next we have a question from Mohammed at Goldman Sachs. I think you might need to unmute, Mo.
Great. Can you hear me?
Yeah.
Great. Hi, Emmanuel.
Hey, Mohammed.
Hi, Jason. Two from me. Just coming back on those sort of one-time costs. Listing costs, I think, were expected to be somewhere around the kind of mid-teens, $13 million to $15 million, if I'm not mistaken. And those other costs, you said they were not sort of significant. I assume those administrative one-time expenses, are they connected to the listing or completely separate? I don't know, can you give us a sort of ballpark way to kind of size those would be great. Secondly, again, this is on platforms. I know you sort of give us at the half year stage the platform as a percentage of revenue. Can you sort of shed some light on that, in terms of how that has sort of been progressing in H1? Thank you.
The one-off I mentioned before, the $15 million on listing, and the other part is not related to the listing at all. That's very distinguished, otherwise I will have put this together. They are administrative part of it. Administration is administration, legal, finance, and so on and so forth. Not related to the U.S. listing at all. I would think, in terms of size, it will be almost the same as the $15 million. That's why, if you back calculate it, you will come to this two percentage-
Yeah
point of margin. You will have more details once we present the H1 numbers in a couple of weeks from now. On Platform, I think today I can't disclose more. I think we will be able to do so in November with Crystal together. Again, I think we're pretty exciting about the evolution that we see, both on the traction that we get with our signed customers, adding new routes and new servicing, but also our partners that are joining the platforms or about to join the Platform.
Got it. If I could squeeze one more in.
Sure.
As we look at the second half, you are going to start to lap some difficult comparatives from last year. How should we think about, I know you announced indicating revenue more at the upper half. It seems to be kind of driven more by perhaps some of the interest income. But when we think operationally, how should we think of the kind of puts and takes in the second half for the growth, considering the more difficult comps? Are we looking at more the lower half of the range essentially is the right way to frame it then?
All right. Look, I hear you. We really focus on the investments we are doing to drive active customers. These active customers are not, as I mentioned before, they transact on cross-border volume. We are still growing 22% this quarter. The business is growing 32% on cross-border volume. If I look at new customers joining us, as I mentioned, I am pretty excited to have 12.5 million active customers, an increase of 20%, but the business is increasing by 26%. So there is a lot of indicators. I should mention also, obviously, the customer holdings. But there is a lot of indicators that we are providing the right servicing. I mentioned some operational highlights.
The fact that we provide, for example, assets in New Zealand, the fact that we launched Canada checking account, for example, or that we have now launched our travel cards in Israel or Thailand, and now we also provide the eSIM services for our customers. I think all these features that we are launching, all these region that are benefiting from assets, they should continue to drive traction. Traction in terms of activity of customers, but also new customers. The interest rates, you are absolutely right. We would benefit from it. H1 was not the case because the Fed and the European Central Bank increased their interest rates lately. And we will benefit from it in H2. But as you know, we are pretty disciplined in the way we invest our money, and we do not want to be dependent on the cyclical evolution of interest rates.
We will be continuously focusing on what can we invest without being dependent on interest rate.
Got it. Thank you, Emmanuel.
Sure. Thank you, Mohammed .
Thanks, Mohammed. As a reminder, if you want to ask a question, can you just raise your hand? I think we have just got one more so far. Can we go to Craig McDowell, JP Morgan?
Hi. Good evening, Emmanuel. Thanks for taking the question. I just want to pick up on the rates piece again, you just mentioned to Mo. You referred to rates beginning to rise, and I'm guessing, as you say, that wasn't in the plan either at the start of the year or indeed when you gave midterm guidance in April last year. Just wondering your discussions, yourself and with the rest of the management team, how do you think about reinvesting that? Or is that something that shareholders will see in pure drop through to the bottom line? Then I've got a follow-up on currency as well. Just any guidance or indication you can give on currency impact into the second half to reported numbers. Thank you.
Do you hear me?
I don't.
I have to start again? Okay, sorry. I think I had issue with my microphone, so maybe I come back. The second part of your questions were about the geopolitical situation, the prediction for the next 6 months of FX. I was saying that basically, unfortunately, I don't have the skills to predict, or we don't have the skills to predict what this, how should I say this now? Bizarre world or what's happening on the geopolitical scene will happen in the next 6 months. If you look back at the beginning of this fiscal year, I think no one would have predicted that the interest rates would go up. We were all thinking that potentially the interest rates at the Fed or European Central Bank will go down. That's extremely difficult to predict on the FX. The good thing is FX volatility is good for us.
When you do have movements in the FX, then you see customers taking advantage of it. To come back to your first questions, what would we do with the increase of the interest rates or the increase of the interest income we might generate? I think it's too early to say. The thing is, if we get rooms to reinvest part of it, we will consider. Nevertheless, we are extremely strict in our. We are disciplined in our capacity to invest. We always use the underlying logic from the past that we don't want to be dependent on the cyclical interest rates. We might pass it, but that's a bit too early to say.
The proportion of the income that we will generate for the second half year from this interest, as we passed, hopefully a lot to our customers, will not be extremely significant for this year, for the fiscal year.
Understood. Thank you.
Thank you.
Thanks, Craig. We've got a couple more. First, we go to Hannes from Jefferies.
Hannes? If you speak, we don't hear.
You might be muted, Hannes.
Okay.
Okay, sorry, Hannes, we can't hear you. We'll catch up later. Can we go to Bharath from Cantor Fitzgerald?
Hi, thank you. Hope you can hear me.
Yeah, perfectly. Thank you.
Perfect. What kind of take rate should we think about for the Platform business given its I know you may not be able to disclose a lot of information now, but just at a high level, what kind of range are we talking about? Then secondly, on competition that you face in the Platform business, who do you come across mainly, and what kind of win rate are you seeing here? Thank you.
Yeah, sure. The take rate, before I jump into the take rate and give you an indication of what the take rate will be on average, I think it's fair to say that the take rate for every partner will be different. It depends on the service that we are providing to them. So let's imagine that we have a partner signing for the Platform, and they ask us to do the onboarding of their customers, then the take rate will reflect this higher cost. As you know, we follow the cost plus margin logic. So the take rate will vary from one partner to the next, depending on the routes that they choose to use, that they want us to use, or the service level that we provide to them. But nevertheless, the take rate on average is around 40 basis points.
Okay.
for the Platform, compared to this 49 basis points at the exit at the end of this quarter. I must confess, the second part of your questions, competition.
Yeah.
Yes, competition.
Just wondering on the competition, yeah.
Yes.
What kind of win rate are you seeing?
I think we're really happy with the win rate that we have on the pitch. There is very few companies that are providing this direct integration to payment systems at the take rate that we are providing. I think you could expect us to win quite a significant large portion of the pitches that we're taking part to.
Okay. Have you had any churn at all in the Platform service? Last question from me. Thank you.
I'm not aware of any churn.
All right.
I'm not aware of any churn so far.
Super. Thank you very much.
Thank you.
We'll just try Hannes again. Are you there, Hannes? I don't think that's working. Sorry, Hannes. We'll speak to you later. I don't think we have any more questions, so thank you everyone for joining us.
Thank you so much for joining us and to supporters. Thank you.