The following discussion should be read in conjunction with the condensed consolidated financial statements and the notes to those statements included in Part I, Item 1, Financial Statements in this report on Form 10-Q. This report on Form 10‑Q contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as “expects,” “intends,” “targets,” “anticipates,” “believes,” “estimates,” “guides,” “provides guidance,” “provides outlook,” “projects,” “designed to,” and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” “could,” and “might” are intended to identify such forward-looking statements. Readers of the Form 10‑Q of The Western Union Company (the “Company,” “Western Union,” “we,” “our,” or “us”) should not rely solely on the forward-looking statements and should consider all uncertainties and risks discussed in the Risk Factors section and throughout the Annual Report on Form 10‑K for the year ended December 31, 2025. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement. Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events or factors related to our business and industry, such as: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns, slowdowns in travel, or other events, such as public health emergencies, epidemics, or pandemics, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price or customer experience, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related exchanges and protocols, and other innovations in technology and business models; geopolitical tensions, political conditions, armed conflicts or wars, and related actions, including trade restrictions, tariffs, and government sanctions, which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents, clients, or other partners; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; our ability to adopt new technology and develop and gain market acceptance of new and enhanced services in response to changing industry and consumer needs or trends; the development, deployment, and use of artificial intelligence ("AI"), machine learning, and automated decision-making technologies in our operations, including risks relating to system performance, data quality, regulatory compliance, bias, or unintended outcomes; factors relating to Western Union’s proposed acquisition of Intermex, including whether the transaction is completed on the anticipated terms and timeline or at all, receipt of regulatory approvals and satisfaction of other customary closing conditions, failure to realize anticipated financial benefits from the transaction, and risks related to continued availability of capital and changes in the capital markets, potential litigation or regulatory actions, and disruptions from the transaction that may harm the company’s business, operations, or market price of capital stock; other mergers, acquisitions, and the integration of acquired businesses and technologies into our Company, divestitures, and the failure to realize anticipated financial benefits from these transactions, and events requiring us to write down our goodwill; decisions to change our business mix; changes in, and failure to manage effectively, exposure to foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers; changes in tax laws, or their interpretation, any subsequent regulation, and unfavorable resolution of tax contingencies; any material breach of security, including cybersecurity, or safeguards of or interruptions in any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; our ability to realize the anticipated benefits from restructuring-related initiatives, which may include decisions to downsize or to transition operating activities from one location to another, and to minimize any disruptions in our workforce that may result from those initiatives; our ability to attract and retain qualified key employees and to manage our workforce successfully; failure to manage credit and fraud risks presented by our agents, clients, and consumers; adverse rating actions by credit rating agencies; our ability to protect our trademarks, patents, and other 31 intellectual property rights, and to defend ourselves against potential intellectual property infringement claims; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; (ii) events or factors related to our regulatory and litigation environment, such as: liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof, including laws and regulations designed to protect consumers, or detect and prevent money laundering, terrorist financing, fraud, and other illicit activity; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations, and industry practices and standards, including changes in interpretations, in the United States and abroad, affecting us, our agents or their subagents, or the banks with which we or our agents maintain bank accounts needed to provide our services, including regulations and guidance relating to digital currencies, stablecoins, and related technologies, the use of AI and automated decision-making systems, anti-fraud measures, our licensing arrangements, customer due diligence, agent and subagent due diligence, registration and monitoring requirements, consumer protection requirements, remittances, immigration, and sustainability reporting, including climate-related reporting; liabilities, increased costs or loss of business and unanticipated developments resulting from governmental investigations and consent agreements with, or investigations or enforcement actions by regulators and other government authorities; liabilities resulting from litigation, including class-action lawsuits and similar matters, and regulatory enforcement actions, including costs, expenses, settlements, and judgments; failure to comply with regulations and evolving industry standards regarding consumer privacy, data use, the transfer of personal data between jurisdictions, and information security; failure to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as regulations issued pursuant to it and the actions of the Consumer Financial Protection Bureau and similar legislation and regulations enacted by other governmental authorities in the United States and abroad related to consumer protection; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to maintain sufficient amounts or types of regulatory capital or other restrictions on the use of our working capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations, or industry standards affecting our business; and (iii) other events or factors, such as: catastrophic events; and management’s ability to identify and manage these and other risks. Overview We are a leading provider of cross-border, cross-currency money movement, payments, and digital financial services and conduct business in the following operating segments: •Consumer Money Transfer - Our Consumer Money Transfer segment facilitates money transfers, which are primarily sent from our retail agent and Company-operated locations worldwide or through websites and mobile devices. Our money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. •Consumer Services - Our Consumer Services segment includes our bill payment services, money order services, travel money services, check acceptance services, media network, prepaid cards, lending partnerships, and digital wallets. Additional information regarding our segments is provided in the Segment Discussion below. International Money Express, Inc. Acquisition On August 10, 2025, we entered into an agreement to purchase the entire share capital of International Money Express, Inc. (“Intermex”) for approximately $500 million in cash and repay all of Intermex’s outstanding indebtedness under their revolving credit facility. We anticipate closing the transaction as soon as reasonably practicable, subject to the satisfaction of customary closing conditions, including receipt of the remaining regulatory approval. Intermex is a leading omnichannel money transfer provider, focused primarily on the United States to Latin America and the Caribbean corridors, through a network of agent retail locations, Intermex-operated stores, its mobile app, and websites. 32 Results of Operations The following discussion of our consolidated results of operations and segment results refers to the three and six months ended June 30, 2026 compared to the same periods in 2025. The results of operations should be read in conjunction with the discussion of our segment results of operations, which provides more detailed discussions concerning certain components of the Condensed Consolidated Statements of Income. All significant intercompany accounts and transactions between our segments have been eliminated. The below information has been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”) unless otherwise noted. All amounts provided in this section are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided. The following table sets forth our consolidated results of operations for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2026 2025 % Change 2026 2025 % Change Revenues $1,013.2 $1,026.1 (1)% $1,995.9 $2,009.7 (1)% Expenses: Cost of services 676.7 642.8 5% 1,331.6 1,262.0 6% Selling, general, and administrative 204.4 190.6 7% 409.2 377.6 8% Total expenses 881.1 833.4 6% 1,740.8 1,639.6 6% Operating income 132.1 192.7 (31)% 255.1 370.1 (31)% Other income/(expense): Interest income 2.2 1.8 23% 4.2 3.5 21% Interest expense (39.5) (36.7) 8% (75.7) (69.3) 9% Other income, net 0.6 1.9 (71)% 1.9 2.7 (33)% Total other expense, net (36.7) (33.0) 12% (69.6) (63.1) 10% Income before income taxes 95.4 159.7 (40)% 185.5 307.0 (40)% Provision for income taxes 18.7 37.6 (50)% 44.1 61.4 (28)% Net income $76.7 $122.1 (37)% $141.4 $245.6 (42)% Earnings per share: Basic $0.25 $0.37 (32)% $0.45 $0.74 (39)% Diluted $0.24 $0.37 (35)% $0.45 $0.73 (38)% Weighted-average shares outstanding: Basic 312.8 328.9 313.8 333.3 Diluted 313.6 329.6 315.2 334.4 Revenues Overview Revenues are primarily derived from consideration paid by customers to transfer money. These revenues vary by transaction based upon factors such as channel, send and receive locations, the send and receive funding method, the principal amount sent, and, when the money transfer involves different send and receive currencies, the difference between the exchange rate we set to the customer and a rate available in the wholesale foreign exchange market. We also offer other consumer services, for which revenue is impacted by similar factors. Due to the significance of the effect that foreign exchange fluctuations against the United States dollar can have on our reported revenues, constant currency results have been provided in the table below for consolidated revenues. Constant currency revenues translate revenues denominated in foreign currencies to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year. Constant currency measures are non-GAAP financial measures and are provided so that revenue can be viewed without the effect of fluctuations in foreign currency exchange rates, which is consistent with how management evaluates our revenue results and trends. We believe that these measures provide management and investors with information about revenue results and trends that eliminates currency volatility, thereby providing greater clarity regarding, and increasing the comparability of, our underlying results and trends. These disclosures are provided in addition to, and not as a substitute for, the percentage change in revenue on a GAAP basis for the three and six months ended June 30, 2026 33 compared to the corresponding periods in the prior year. Other companies may calculate and define similarly labeled items differently, which may limit the usefulness of this measure for comparative purposes. The following table sets forth our consolidated revenue results for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2026 2025 % Change 2026 2025 % Change Revenues, as reported (GAAP) $1,013.2 $1,026.1 (1)% $1,995.9 $2,009.7 (1)% Foreign currency translation impact (a) 0% 0% Adjusted revenues (Non-GAAP) (1)% (1)% (a)Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges, resulted in a decrease to revenues of $2.5 million and an increase to revenues of $10.2 million for the three and six months ended June 30, 2026, respectively, when compared to the corresponding periods in the prior year. For the three and six months ended June 30, 2026, revenues and adjusted revenues were primarily impacted by a decrease in transactions and revenues in the North America and Latin America and the Caribbean regions of our Consumer Money Transfer segment, partially offset by revenue growth in our Consumer Services segment and in the Middle East, Africa, and South Asia region of our Consumer Money Transfer segment, as further discussed below. Operating Expenses Overview Cost of Services Cost of services primarily consists of agent commissions, which represented approximately 55% of total cost of services for the three and six months ended June 30, 2026 and 2025. For the three and six months ended June 30, 2026, cost of services increased compared to the corresponding periods in the prior year primarily due to an increase in agent commissions, in addition to an increase in employee-related and real estate expenses associated with acquisitions that expanded our Company-operated locations. Selling, General, and Administrative Selling, general, and administrative expenses increased for the three and six months ended June 30, 2026 when compared to the corresponding periods in the prior year due to fluctuations in the United States dollar compared to foreign currencies and higher compliance costs. 34 Total Other Expense, Net Total other expense, net increased for the three and six months ended June 30, 2026, when compared to the corresponding periods in the prior year, primarily due to an increase in interest expense associated with our borrowings, including our notes due in 2029. Income Taxes Our effective tax rates on pre-tax income were 19.6% and 23.6% for the three months ended June 30, 2026 and 2025, respectively, and 23.7% and 20.0% for the six months ended June 30, 2026 and 2025, respectively. For the three months ended June 30, 2026 compared to the corresponding period in the prior year, the effective tax rate decreased primarily due to discrete expenses in the prior period. For the six months ended June 30, 2026 compared to the corresponding period in the prior year, the effective tax rate increased primarily due to discrete expenses in the current period related to the reorganization of our international operations, compared to discrete benefits in the prior period. Earnings Per Share During the three months ended June 30, 2026 and 2025, basic earnings per share were $0.25 and $0.37, respectively, and diluted earnings per share were $0.24 and $0.37, respectively. During the six months ended June 30, 2026 and 2025, basic earnings per share were $0.45 and $0.74, respectively, and diluted earnings per share were $0.45 and $0.73, respectively. Outstanding options to purchase Western Union stock and unvested shares of restricted stock are excluded from basic shares outstanding. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested. Shares excluded from the diluted earnings per share calculation were 18.8 million and 17.3 million for the three months ended June 30, 2026 and 2025, respectively, and 17.4 million and 15.7 million for the six months ended June 30, 2026 and 2025, respectively. The effect of these shares was anti-dilutive under the treasury stock method, as the assumed proceeds of the options and restricted stock per unit were above our average share price during the periods. Earnings per share for the three and six months ended June 30, 2026 compared to the corresponding periods in the prior year were impacted by the previously described factors impacting net income, partially offset by a lower number of average shares outstanding. Segment Discussion We manage our business around the consumers and businesses we serve and the types of services we offer. Each of our segments addresses a different combination of customer groups, distribution networks, and services offered. Our segments are Consumer Money Transfer and Consumer Services. During the three and six months ended June 30, 2026 and 2025, we incurred expenses that are not included in the measurement of segment operating income provided to the Chief Operating Decision Maker (“CODM”) for purposes of performance assessment and resource allocation. These expenses are therefore excluded from our segment operating income results. Refer to Part I, Item 1, Financial Statements, Note 14, Segments for further discussion. The following table sets forth the components of segment revenues as a percentage of the consolidated totals for the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Consumer Money Transfer 85 % 86 % 86 % 87 % Consumer Services 15 % 14 % 14 % 13 % 100 % 100 % 100 % 100 % 35 Consumer Money Transfer The following table sets forth our Consumer Money Transfer segment results of operations for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, (dollars and transactions in millions) 2026 2025 % Change 2026 2025 % Change Revenues $866.1 $885.0 (2)% $1,711.5 $1,757.9 (3)% Operating income $125.7 $167.7 (25)% $236.2 $327.0 (28)% Operating income margin 15% 19% 14% 19% Key indicator: Transactions 73.5 71.4 3% 144.6 142.2 2% Our Consumer Money Transfer service facilitates money transfers sent from our retail agent and Company-operated locations worldwide and money transfer transactions marketed under our brands and initiated through our websites and mobile applications and our third-party digital partners’ websites and mobile applications (“Branded Digital”). This segment includes five geographic regions whose functions are primarily related to generating, managing, and maintaining agent relationships and localized marketing activities. We include Branded Digital transactions in our regions. We exclude transactions and revenues generated from Iraq websites and mobile applications from the definition of Branded Digital, given the significant volatility in that business and disruptions in offering services in the country. By means of common processes and systems, these regions, including Branded Digital transactions, create one interconnected global network for consumer transactions, thereby constituting one Consumer Money Transfer business and one operating segment. Transaction volume is the primary generator of revenue in our Consumer Money Transfer segment. A Consumer Money Transfer transaction constitutes the transfer of funds to a designated recipient utilizing one of our consumer money transfer services. The geographic split for transactions and revenue in the table that follows is determined based upon the region where the money transfer is initiated. Branded Digital transactions are included in each region’s metrics in the tables below. Where reported separately in the tables below, Branded Digital consists of all transactions and revenue included under the definition provided above. The table below sets forth revenue and transaction changes by geographic region compared to the prior year. Additionally, we have also provided adjusted revenue results for our Consumer Money Transfer and Consumer Services segment revenues, which are net of the impact of foreign currency hedges, as discussed above. Consumer Money Transfer segment adjusted revenue growth/(decline) is a non-GAAP financial measure, as further discussed in Revenues Overview above. Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Revenue Growth / (Decline) as Reported (GAAP) Foreign Exchange Translation Impact Adjusted Revenue Growth / (Decline)(a) - (Non-GAAP) Transaction Growth / (Decline) Revenue Growth / (Decline) as Reported (GAAP) Foreign Exchange Translation Impact Adjusted Revenue Growth / (Decline)(a) - (Non-GAAP) Transaction Growth / (Decline) Consumer Money Transfer regional growth/(decline): North America (United States & Canada) (“NA”) (9)% (1)% (8)% (5)% (10)% (1)% (9)% (5)% Europe and CIS (“EU & CIS”) 0% 2% (2)% (2)% 2% 4% (2)% (1)% Middle East, Africa, and South Asia (“MEASA”) 13% 1% 12% 44% 7% 1% 6% 32% Latin America and the Caribbean (“LACA”) (4)% 2% (6)% (10)% (4)% 2% (6)% (9)% Asia Pacific (“APAC”) (7)% 0% (7)% 1% (5)% 1% (6)% 0% Total Consumer Money Transfer Segment (2)% 1% (3)% 3% (3)% 1% (4)% 2% Branded Digital (b) 7% 1% 6% 25% 8% 2% 6% 23% (a)Adjusted revenue growth assumes that revenues denominated in foreign currencies are translated to the United States dollar, net of the effect of foreign currency hedges, at rates consistent with those in the corresponding prior periods. (b)As noted above, Branded Digital revenues are included in the regions. 36 The table below sets forth regional revenues as a percentage of our Consumer Money Transfer revenue for the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Consumer Money Transfer revenue as a percentage of segment revenue: NA 36 % 39 % 36 % 39 % EU & CIS 30 % 29 % 30 % 28 % MEASA 18 % 15 % 18 % 16 % LACA 11 % 11 % 11 % 11 % APAC 5 % 6 % 5 % 6 % Our consumers transferred $27.2 billion and $26.7 billion in cross-border principal for the three months ended June 30, 2026 and 2025, respectively, and $54.2 billion and $52.5 billion in cross-border principal for the six months ended June 30, 2026 and 2025, respectively. Consumer Money Transfer cross-border principal is the amount of consumer funds transferred to a designated recipient in a country or territory that differs from the country or territory from which the transaction was initiated. Consumer Money Transfer cross-border principal is a metric used by management to monitor and better understand the growth in our underlying business relative to competitors, as well as changes in our market share of global remittances. Revenues Consumer Money Transfer revenue decreased 2% and 3%, and transactions increased 3% and 2% for the three and six months ended June 30, 2026, respectively, compared to the corresponding periods in the prior year. Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges, positively impacted revenue by 1% for both the three and six months ended June 30, 2026, compared to the corresponding periods in the prior year. For the three and six months ended June 30, 2026, in our Consumer Money Transfer regions, NA revenue and transactions decreased, compared to the corresponding periods in the prior year. The region was impacted by declines in revenues and transactions sent from and within the United States, which has been impacted by broader geopolitical and macroeconomic conditions, including impacts from immigration policies. For the three and six months ended June 30, 2026, the change in our EU & CIS region revenues was driven by increases in Italy, partially offset by decreases in the United Kingdom. For the three and six months ended June 30, 2026, our MEASA transactions increased, which was primarily driven by growth in the region’s Branded Digital transactions, which have lower revenues per transaction. For the three and six months ended June 30, 2026, the revenue decline in LACA was primarily driven by decreases in Mexico and Brazil and was also impacted by broader geopolitical and macroeconomic conditions. For the three and six months ended June 30, 2026, the revenue decline in APAC was primarily driven by decreases in Thailand, partially offset by growth in Singapore. Beginning January 1, 2026, the remittance tax provisions of the One Big Beautiful Bill Act in the United States became effective. These provisions assess a 1% excise tax on certain remittances sent internationally from the United States that are funded with cash or a similar, physical instrument. In April 2026, the United States Department of the Treasury and Internal Revenue Service issued proposed rules that seek to clarify the scope and application of the excise tax, subject to public comment and finalization of the rules. We are evaluating the potential impacts of the proposed rules and will be prepared to implement any changes required by the final rules. We have historically implemented price reductions or price increases throughout many of our global corridors. We will likely continue to implement price changes from time to time in response to competition and other factors. Price reductions generally reduce margins and adversely affect financial results in the short term and may also adversely affect financial results in the long term if transaction volumes do not increase sufficiently. Price increases may adversely affect transaction volumes, as consumers may not use our services if we fail to price them appropriately. 37 Operating Income Consumer Money Transfer operating income decreased for the three and six months ended June 30, 2026 compared to the corresponding periods in the prior year due to a decrease in revenue, fluctuations between the United States dollar and foreign currencies, and an increase in agent commissions and the costs for professional services. Consumer Services The following table sets forth Consumer Services results for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2026 2025 % Change 2026 2025 % Change Revenues $147.1 $141.1 4% $284.4 $251.8 13% Operating income $23.3 $31.6 (26)% $39.5 $58.7 (33)% Operating income margin 16% 22% 14% 23% Revenues The following table sets forth our Consumer Services revenue results for the three and six months ended June 30, 2026 and 2025. Consumer Services segment adjusted revenue growth/(decline) is a non-GAAP financial measure, as further discussed in Revenues Overview above. Three Months Ended June 30, Six Months Ended June 30, (dollars in millions) 2026 2025 % Change 2026 2025 % Change Revenues, as reported (GAAP) $147.1 $141.1 4% $284.4 $251.8 13% Foreign currency translation impact (a) 8% 8% Adjusted revenues (Non-GAAP) 12% 21% (a)Fluctuations in the United States dollar compared to foreign currencies, net of the impact of foreign currency hedges, resulted in decreases to Consumer Services revenues of $11.2 million and $21.0 million for the three and six months ended June 30, 2026, respectively, when compared to the corresponding periods in the prior year. For the three and six months ended June 30, 2026 compared to the corresponding periods in the prior year, Consumer Services GAAP and Adjusted revenues increased primarily due to revenue growth in our travel money and check acceptance services, including the benefit from acquisitions, and growth in our cash-based bill payments services offered at retail locations in Argentina. Operating Income Consumer Services operating income for the three and six months ended June 30, 2026 compared to the corresponding periods in the prior year was negatively impacted by an increase in employee-related and real estate expenses associated with acquisitions that expanded our Company-operated locations and increases in agent commissions, partially offset by an increase in revenue. For the six months ended June 30, 2026 compared to the corresponding period in the prior year, Consumer Services operating income also decreased due to higher credit losses. Capital Resources and Liquidity Our primary source of liquidity has been cash generated from our operating activities, primarily from net income and fluctuations in working capital. Our working capital is affected by the timing of payments for employee and agent incentives, interest payments on our outstanding borrowings, and timing of income tax payments, among other items. Many of our annual employee incentive compensation and agent incentive payments are made in the first quarter following the year they were incurred. The majority of our interest payments are due in the second and fourth quarters, which results in a decrease in the amount of cash provided by operating activities in those quarters and a corresponding increase to the first and third quarters. 38 Our future cash flows could be impacted by a variety of factors, some of which are out of our control. These factors include, but are not limited to, changes in economic conditions, especially those impacting migrant populations, changes in income tax laws or the status of income tax audits, including the resolution of outstanding tax matters, and the settlement or resolution of legal contingencies. Substantially all of our cash flows from operating activities have been generated from subsidiaries. Most of these cash flows are generated from our regulated subsidiaries. Our regulated subsidiaries may transfer all excess cash to the parent company for general corporate use, except for assets subject to legal or regulatory restrictions, including: (i) requirements to maintain cash and other qualifying investment balances, free of any liens or other encumbrances, related to the payment of certain of our money transfer and other payment obligations, (ii) other legal or regulatory restrictions, including statutory or formalized minimum net worth requirements, and (iii) restrictions on transferring assets outside of the countries where these assets are located. We currently believe we have adequate liquidity to meet our business needs, including payments under our debt and other obligations, through our existing cash balances, our ability to generate cash flows through operations, our revolving credit facility (“Revolving Credit Facility”), and our $800 million delayed draw term loan credit agreement (“Delayed Draw Term Loan Facility”). The Revolving Credit Facility provides for aggregate revolving credit commitments of $1.62 billion and supports our commercial paper program. Our commercial paper program enables us to issue unsecured commercial paper notes in an amount not to exceed $1.62 billion outstanding at any time, reduced to the extent of any borrowings outstanding on our Revolving Credit Facility. To help ensure availability of our worldwide cash where needed, we utilize a variety of planning and financial strategies, including decisions related to the amounts, timing, and manner by which cash is repatriated or otherwise made available from our international subsidiaries. These decisions can influence our overall tax rate and impact our total liquidity. We regularly evaluate our United States cash requirements, taking tax consequences and other factors into consideration and also the potential uses of cash internationally to determine the appropriate level of dividend repatriations of our foreign source income. Cash and Investment Securities As of June 30, 2026 and December 31, 2025, we had Cash and cash equivalents of $919.8 million and $1,234.4 million, respectively. In many cases, we receive funds from money transfers and certain other payment services before we settle the payment of those transactions. These funds, referred to as Settlement assets on our Condensed Consolidated Balance Sheets, are not used to support our operations. However, we earn income from investing these funds. We maintain a portion of these settlement assets in highly liquid investments, classified as Cash and cash equivalents within Settlement assets, to fund settlement obligations. Investment securities, net, classified within Settlement assets on the Condensed Consolidated Balance Sheets, were $1,431.8 million and $1,445.0 million as of June 30, 2026 and December 31, 2025, respectively, and consist primarily of highly-rated state and municipal debt securities. These investment securities are held in order to comply with state licensing requirements in the United States and are required to have credit ratings of “A-” or better from a major credit rating agency. Refer to Part I, Item 1, Financial Statements, Note 8, Settlement Assets and Obligations, for more details regarding investment securities. Investment securities are exposed to market risk due to changes in interest rates and credit risk. We regularly monitor credit risk and attempt to mitigate our exposure by investing in highly-rated securities and diversifying our investment portfolio. Our investment securities are also actively managed with respect to concentration. As of June 30, 2026, all investments with a single issuer and each individual security represented less than 10% of our investment securities portfolio. Cash Flows from Operating Activities Cash provided by operating activities increased to $213.9 million during the six months ended June 30, 2026, from $147.9 million in the corresponding period in the prior year, primarily due to lower income tax payments, partially offset by a decrease in income. Cash provided by operating activities can be impacted by changes to our consolidated net income, in addition to fluctuations in our working capital balances, among other factors. 39 Financing Resources As of June 30, 2026, we had outstanding borrowings at par value of $2,710.1 million. The majority of these outstanding borrowings consist of unsecured fixed-rate notes with maturities ranging from 2029 to 2040. As of June 30, 2026 and December 31, 2025, we had $800.0 million outstanding under our unsecured term loan facility (“Term Loan Facility”), and such borrowings mature on December 13, 2027. We have the option to increase the commitments under the Term Loan Facility by an amount such that the commitments do not exceed $1.0 billion in the aggregate (after giving effect to any such increases). Any such increases would be subject to obtaining additional commitments from existing or new lenders under the Term Loan Facility. We used the proceeds from the Term Loan Facility borrowings to repay our 2.850% notes due January 2025, to reduce commercial paper balances, and for general corporate purposes. On January 9, 2026, we entered into the Delayed Draw Term Loan Facility, providing for an unsecured term loan facility in an aggregate amount of $800.0 million. On June 17, 2026, we amended the Delayed Draw Term Loan Facility to extend the commitment period. We have until November 10, 2026 to draw upon the Delayed Draw Term Loan Facility, which matures on the third anniversary of the initial funding date. We have the option to increase the commitments under the Delayed Draw Term Loan Facility by an amount such that the commitments do not exceed $1.0 billion in the aggregate (after giving effect to any such increases). Any such increases would be subject to obtaining additional commitments from existing or new banks under the Delayed Draw Term Loan Facility. We may use the proceeds from the Delayed Draw Term Loan Facility to finance the cash consideration to purchase the entire share capital of Intermex and repay all of Intermex’s outstanding indebtedness under their revolving credit facility. Our Revolving Credit Facility provides for unsecured financing facilities, including a $250.0 million letter of credit subfacility and $300.0 million swing line sublimit, and allows us to draw loans payable based upon the Secured Overnight Financing Rate (“SOFR”), the Euro Interbank Offered Rate, or the Sterling Overnight Index Average. The Revolving Credit Facility provides for aggregate revolving credit commitments of $1.62 billion and matures on November 30, 2029. Interest due under the Revolving Credit Facility is payable according to the terms of that borrowing. Generally, interest under the Revolving Credit Facility is calculated using either (i) an adjusted term SOFR, or other applicable benchmark based on the currency of the borrowing, plus an interest rate margin determined on a sliding scale from 0.920% to 1.425% based on our credit rating (currently 1.140%) or (ii) a base rate plus a margin determined on a sliding scale from 0.000% to 0.425% based on our credit rating (currently 0.140%). A facility fee on the total amount of the facility is also payable quarterly, regardless of usage, and such facility fee is determined on a sliding scale from 0.080% to 0.200% based on our credit rating (currently 0.110%). The purpose of our Revolving Credit Facility, which is diversified through a group of 19 participating institutions, is to provide general liquidity and to support our commercial paper program, which we believe enhances our short-term credit rating. The largest commitment from any single financial institution within the total committed balance of $1.62 billion is approximately 12%. As of June 30, 2026, we had no outstanding borrowings under the facility. If the amount available to borrow under the Revolving Credit Facility decreased, or if the Revolving Credit Facility were eliminated, the cost and availability of borrowing under the commercial paper program may be impacted. Pursuant to our commercial paper program, we may issue unsecured commercial paper notes in an amount not to exceed $1.62 billion outstanding at any time, reduced to the extent of borrowings outstanding on our Revolving Credit Facility. Our commercial paper borrowings may have maturities of up to 397 days from date of issuance. Interest rates for borrowings are based on market rates at the time of issuance. We had $199.8 million of commercial paper borrowings outstanding as of June 30, 2026. Our commercial paper borrowings as of June 30, 2026 had a weighted-average annual interest rate of approximately 4.1% and a weighted-average term of approximately 4 days. Proceeds from our commercial paper borrowings were used for general corporate purposes and working capital needs. On March 9, 2026, we issued $450.0 million of 4.750% unsecured notes due June 15, 2029. On May 5, 2026, we issued an additional $165.0 million of these notes ("2029 Notes"). Interest with respect to the 2029 Notes is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2026. If a change of control triggering event occurs, holders of the 2029 Notes may require us to repurchase some or all of their notes at a price equal to 101% of the principal amount of their notes, plus any accrued and unpaid interest. We may redeem the 2029 Notes in whole or in part, at any time prior to May 15, 2029, at the greater of par or a price based on the applicable treasury rate plus 20 basis points. We may redeem the 2029 Notes at any time after May 15, 2029, at a price equal to par, plus accrued interest. 40 Cash Priorities Liquidity Our objective is to maintain strong liquidity and a capital structure consistent with investment-grade credit ratings. We have existing cash balances, cash flows from operating activities, access to the commercial paper markets, our Revolving Credit Facility, and our Delayed Draw Term Loan available to support the needs of our business. Our ability to grow the business, make investments in our business, make acquisitions, return capital to shareholders, including through dividends and share repurchases, and service our debt and tax obligations will depend on our ability to continue to generate excess operating cash through our operating subsidiaries and to continue to receive dividends from those operating subsidiaries, our ability to obtain adequate financing, and our ability to identify acquisitions that align with our long-term strategy. For additional information, please refer to Part II, Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities in our Annual Report on Form 10‑K for the year ended December 31, 2025. Capital Expenditures The total aggregate amount paid for purchased and developed software, contract costs, and purchases of property and equipment was $88.2 million and $53.4 million for the six months ended June 30, 2026 and 2025, respectively. Capital expenditures during these periods included investments in our information technology infrastructure. Amounts paid for new and renewed agent contracts vary depending on the terms of existing contracts as well as the timing of new and renewed contract signings. Share Repurchases and Dividends On December 13, 2024, our Board of Directors authorized $1.0 billion of common stock repurchases with no expiration date. During the six months ended June 30, 2026 and 2025, 5.7 million and 14.8 million shares were repurchased under this authorization for $53.7 million and $149.7 million, respectively, excluding commissions, at an average cost of $9.35 and $10.08, respectively. As of June 30, 2026, $721.6 million remained available under this share repurchase authorization. Our Board of Directors declared quarterly cash dividends of $0.235 per common share in the first and second quarters of 2026, representing $147.0 million in total dividends. Material Cash Requirements Debt Service Requirements Our 2026 and future debt service requirements will include payments on all outstanding indebtedness, including any borrowings under our commercial paper program. On March 16, 2026, we repaid the 1.350% notes due in March 2026 for total consideration of $600 million, excluding accrued interest, using proceeds from the 2029 Notes and commercial paper issuance. Operating Leases We lease real properties for use as owned locations, administrative offices, and sales offices, in addition to transportation, office, and other equipment. Refer to Part II, Item 8, Financial Statements and Supplementary Data, Note 11, Leases, in our Annual Report on Form 10-K for the year ended December 31, 2025 for details on our leasing arrangements, including future maturities of our operating lease liabilities. We have no material off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, results of operations, liquidity, capital expenditures, or capital resources. 41 Other Commercial Commitments We had approximately $130 million in outstanding letters of credit and bank guarantees as of June 30, 2026 primarily held in connection with regulatory requirements, lease arrangements, and certain agent agreements. We expect to renew many of our letters of credit and bank guarantees prior to expiration. As of June 30, 2026, our total amount of unrecognized income tax benefits was $62.3 million, including associated interest and penalties. The timing of any related cash payments for substantially all of these liabilities is inherently uncertain because the ultimate amount and timing of the settlement of such liabilities are affected by factors which are variable and outside our control. Critical Accounting Policies and Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements and accompanying notes. Actual results could differ from those estimates. Our Critical Accounting Policies and Estimates disclosed in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10‑K for the year ended December 31, 2025, for which there were no material changes, included: •Income taxes •Goodwill •Other intangible assets Recent Accounting Pronouncements Refer to Part I, Item 1, Financial Statements, Note 1, Business and Basis of Presentation for further discussion. Risk Management We are exposed to market risks arising from changes in market rates and prices, including changes in foreign currency exchange rates and interest rates and credit risk related to our agents and customers. A risk management program is in place to manage these risks. Foreign Currency Exchange Rates We provide our services primarily through a network of agent locations in more than 200 countries and territories. We manage foreign exchange risk through the structure of the business and an active risk management process. We currently settle with the significant majority of our agents and disbursement partners in United States dollars, Mexican pesos, or euros requiring those agents and disbursement partners to obtain local currency to pay recipients, and we generally do not rely on international currency markets to obtain and pay illiquid currencies. However, in certain circumstances, we settle in other currencies. The foreign currency exposure that does exist is limited by the fact that the significant majority of transactions are paid by the next day after they are initiated, and agent settlements occur within a few days in most instances. To mitigate this risk further, we enter into short duration foreign currency forward contracts, generally with maturities ranging from a few days to one month, to offset foreign exchange rate fluctuations between transaction initiation and settlement. We also have exposure to certain foreign currency denominated cash and other asset and liability positions and may utilize foreign currency forward contracts, typically with maturities of less than one year at inception, to offset foreign exchange rate fluctuations on these positions. In certain consumer money transfer transactions involving different send and receive currencies, we generate revenue based on the difference between the exchange rate set by us to the consumer and a rate available in the wholesale foreign exchange market, helping to provide protection against currency fluctuations. We attempt to promptly buy and sell foreign currencies as necessary to cover our net payables and receivables which are denominated in foreign currencies. We use longer-term foreign currency forward contracts to help mitigate risks associated with changes in foreign currency exchange rates on revenues denominated in the euro, and, to a lesser degree, the Canadian dollar, the British pound, and other currencies. We use contracts with maturities of up to 36 months at inception to mitigate some of the impact that changes in 42 foreign currency exchange rates could have on forecasted revenues, with a targeted weighted-average maturity of one to two years. We believe the use of longer-term foreign currency forward contracts provides predictability of future cash flows from our international operations. As of June 30, 2026, a hypothetical uniform 10% strengthening or weakening in the value of the United States dollar relative to all other currencies in which our net income is generated would have resulted in a decrease/increase to pre-tax annual income of approximately $30 million, based on our forecast of unhedged exposure to foreign currency at that date. There are inherent limitations in this sensitivity analysis, primarily due to the following assumptions: (i) foreign exchange rate movements are linear and instantaneous, (ii) fixed exchange rates between certain currency pairs are retained, (iii) the unhedged exposure is static, and (iv) we would not hedge any additional exposure. As a result, the analysis is unable to reflect the potential effects of more complex market changes that could arise, which may positively or negatively affect income. Interest Rates We invest in several types of interest-bearing assets, with a total value as of June 30, 2026 of approximately $2.3 billion. Approximately $0.9 billion of these assets bear interest at floating rates. These assets primarily include cash in banks and money market investments and are included in our Condensed Consolidated Balance Sheets within Cash and cash equivalents and Settlement assets. To the extent these assets are held in connection with money transfers and other related payment services awaiting redemption, they are classified as Settlement assets. Earnings on these investments will increase and decrease with changes in the underlying short-term interest rates. The remaining interest-bearing assets pay fixed interest rates and primarily consist of highly-rated state and municipal debt securities and asset-backed securities. These investments may include investments made from cash received from our money order services, money transfer business, and other related payment services awaiting redemption and are classified within Settlement assets in the Condensed Consolidated Balance Sheets. As interest rates rise, the fair values of these fixed-rate interest-bearing securities will decrease; conversely, a decrease to interest rates would result in an increase to the fair values of the securities. We have classified these investments as available-for-sale within Settlement assets in the Condensed Consolidated Balance Sheets, and accordingly, recorded these instruments at their fair value with the net unrealized gains and losses, excluding credit-related losses, net of the applicable deferred income tax effect, being added to or deducted from our Total stockholders’ equity in our Condensed Consolidated Balance Sheets. As of June 30, 2026, borrowings of $800 million under our Term Loan Facility were subject to floating interest rates. The interest on these borrowings was calculated using a selected SOFR plus an interest rate margin. Borrowings under our commercial paper program mature in such a short period that the financing is effectively floating rate. As of June 30, 2026, there were $199.8 million in outstanding borrowings under our commercial paper program. We review our overall exposure to floating and fixed rates by evaluating our net asset or liability position and the duration of each individual position. We manage this mix of fixed versus floating exposure in an attempt to minimize risk, reduce costs, and improve returns. Our exposure to interest rates can be modified by changing the mix of our interest-bearing assets as well as adjusting the mix of fixed versus floating rate debt. The latter is accomplished primarily through the use of interest rate swaps and the decision regarding terms of any new debt issuances (i.e., fixed versus floating). From time to time, we use interest rate swaps designated as hedges to vary the percentage of fixed to floating rate debt, subject to market conditions. As of June 30, 2026, our weighted-average effective rate on total borrowings was approximately 5.1%. At June 30, 2026, a hypothetical 100 basis point increase/decrease in interest rates would result in a decrease/increase to pre-tax income for the next twelve months of approximately $10 million based on borrowings that are sensitive to interest rate fluctuations, net of the impact of hedges. The same 100 basis point increase/decrease in interest rates, if applied to our cash and investment balances on June 30, 2026 that bear interest at floating rates, would result in an offsetting increase/decrease to pre-tax income for the next twelve months of approximately $9 million. There are inherent limitations in the sensitivity analysis presented, primarily due to the assumptions that interest rate changes would be instantaneous and consistent across all geographies in which our interest-bearing assets are held and our liabilities are payable. As a result, the analysis is unable to reflect the potential effects of more complex market changes, including changes in credit risk regarding our investments, which may positively or negatively affect income. In addition, the mix of fixed versus floating rate debt and investments and the level of assets and liabilities will change over time, including the impact from commercial paper borrowings that may be outstanding in future periods. 43 Credit Risk To manage our exposures to credit risk with respect to investment securities, money market fund investments, derivatives, and other credit risk exposures resulting from our relationships with banks and financial institutions, we regularly review investment concentrations, trading levels, credit spreads, and credit ratings, and we attempt to diversify our investments among global financial institutions. We are also exposed to credit risk related to receivable balances from agents in the money transfer, bill payment, and money order settlement process. We perform a credit review before each agent signing and conduct periodic analyses of agents and certain other parties we transact with directly. In addition, we are exposed to non-credit losses directly from consumer transactions, particularly through our digital channels, where transactions are originated through means other than cash and are therefore subject to “chargebacks,” insufficient funds or other collection impediments, such as fraud. Our credit and non-credit losses have been approximately 2.5% or less of our consolidated revenues in all periods presented.