(SeaPRwire) –
Wise stock jumped as much as 9.6% on Friday after management raised its full-year revenue outlook. The rally cooled to about 6%, leaving shares near 882.60 GBP in London. Investors cheered the top line, but the real signal sits deeper in the numbers. Revenue grew 23%, while pre-tax profit only managed 9%. Costs are eating the growth.
First-half net revenue rose to $1.45 billion from $1.18 billion a year earlier. At constant exchange rates, growth was 22%, the basis for Wise’s yearly targets. Pre-tax profit climbed 9% to $334.9 million, a 23% margin. Net income gained 6% to $249.2 million. Total operating expenses jumped 28% to $1.15 billion. Technology and development costs surged 51% to $292.2 million. Servicing costs rose 40% to $250.6 million. Marketing and sales costs climbed 46% to $111.7 million. General and administrative costs increased 41% to $256.7 million, including about $15 million in one-off expenses. Transaction expenses bucked the trend, falling 12% to $229.7 million after Wise improved terms with suppliers. Cross-border volume rose 24% to $141 billion, helped by strong US and Asia Pacific growth. Cross-border revenue grew slower at 19% to $705 million. That gap shows up in the take rate, which slipped to 0.50% from 0.52%. Card revenue rose 43% to $252 million on higher US interchange fees. Card spending increased 33% to $27.2 billion. Interest income on customer balances rose 16% to $463.6 million, with balances growing 22%. Active customers rose 21% to 16.2 million. Customer holdings jumped 28% to $43.5 billion. Assets under custody rose 52% to $11.4 billion.
The full-year outlook now points to revenue growth in the upper half of the 15% to 20% medium-term range. That means 17.5% to 20% at constant currencies. Wise also sees its pre-tax profit margin landing near the top of its 20% to 25% target. CEO Kristo Käärmann said 78% of transfers now complete instantly. The company started a buyback of up to $540 million in July, nearly half done, with 40% earmarked for its employee share trust. But the take rate decline is the commercial loop to watch. Wise is buying volume with lower fees and heavier spending. The market wants proof this investment phase eventually converts to durable margins. Until that proof arrives, the stock rally rests on guidance promises, not on profit delivery.