Wise PLC Reports Strong Half-Year Results

Shares of Wise (LON:WISEa) PLC climbed over 5% on Wednesday after releasing its first-half results, which exceeded consensus estimates for underlying pre-tax profit.

Wise reported an underlying pre-tax profit (PBT) of £147.1 million, achieving a margin of 22.2%, outperforming projections by 13%.

> "However, with the outlook for a margin of 13-16% reiterated, questions remain on the timing and achievability of such a low margin," noted analysts at Barclays (LON:BARC).

This strong performance is attributed to a significant underlying gross margin of 76.2%, bolstered by pricing adjustments made earlier in the fiscal year.

Despite this success, Wise has maintained conservative guidance for the rest of fiscal year 2025, forecasting a PBT margin more aligned with its medium-term target range of 13-16%.

Analysts at Morgan Stanley (NYSE:MS) highlighted that Wise’s proactive cost management and platform expansion strategies have enhanced its resilience and positioning in the competitive cross-border payments market.

The platform's ongoing improvements, such as expanding direct local payment connections and accelerating transfer speeds, have solidified Wise as a leading low-cost provider in this sector.