International Money Express (IMXI 61.29%), a leading provider of money transfer services primarily between the United States and Latin America, reported results for Q2 2025 on August 11, 2025. The main headline was a revenue miss, with the company generating $161.1 million in GAAP revenue, compared to analyst expectations of $164.5 million. However, adjusted diluted earnings per share (non-GAAP) came in at $0.51, just edging past the $0.50 consensus estimate. Transaction activity continued to decline, but This was partially offset by strong digital product gains. The quarter showed mixed results, with profitability above expectations (non-GAAP EPS of $0.51 vs. estimate of $0.50), but persistent top-line softness (GAAP revenue of $161.1 million vs. estimate of $164.5 million) and continuing industry headwinds.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| Adjusted Diluted EPS (Non-GAAP) | $0.51 | $0.50 | $0.55 | (7.3%) |
| Revenue | $161.1 million | $164.5 million | $171.5 million | (6.1%) |
| Net Income | $11.0 million | $14.0 million | (21.4%) | |
| Adjusted EBITDA | $28.8 million | $31.1 million | (7.4%) | |
| Net Free Cash Generated | $14.7 million | $13.3 million | 10.5% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Snapshot and Strategic Focus
International Money Express operates as a cross-border remittance service, helping customers—primarily from the United States—send money to recipients in Latin America and the Caribbean. The company’s network spans both physical retail agent locations and digital channels, allowing customers to transfer funds securely and quickly to their families abroad.
Recently, the company has concentrated its efforts on building out its digital platform and strengthening its position in key, profitable corridors such as Mexico and Guatemala. Its critical success factors include reliable technology, a strong compliance program, and strategically deep bank partnerships. Efficient market expansion into high-potential regions like California and Texas, coupled with investments in digital growth, remain central to the strategy.
Quarter in Review: Operating Metrics and Developments
GAAP revenue declined 6.1% year over year in Q2 2025. GAAP net income fell to $11.0 million in Q2 2025, a decrease of 21.4%. The company reported a total of 14.1 million money transfer transactions in Q2 2025, marking a drop of 7.8% from the prior year. Notably, while transaction count was down, the volume sent was much steadier, with a year-over-year decrease of just 3.1%. This divergence resulted from customers sending larger average amounts—$441 per transaction, up 5.0% from the previous year—reflecting changes in remittance behavior.
Wire transfer and money order fees, a primary revenue source, declined by 8.8% year over year to $132.97 million (GAAP). The fall in transaction counts has been a central factor behind this drop. However, the company benefited from higher foreign exchange (FX) gains, recording a GAAP foreign exchange gain of $23.7 million, supported by the larger send amounts per transaction. Management attributed these behavioral shifts to evolving consumer habits, with senders making fewer but larger transfers earlier in the year.
Adjusted EBITDA, a measure of profitability before interest, taxes, depreciation, and amortization, was $28.8 million—down 7.4% from the prior-year period. Despite this, the company’s net free cash generated improved by 10.5% year over year, reaching $14.7 million. The balance sheet strengthened as well, with cash and equivalents climbing to $174.7 million as of June 30, 2025, up from $130.5 million as of December 31, 2024.
International Money Express invested $2.5 million in digital product marketing in the first half of 2025 and continued to see robust digital transaction growth earlier in the year. Management referenced year-over-year digital growth of around 70% earlier in the year and indicated an increase to about 80% in April 2025, suggesting continued traction in the digital channel. While digital products remain a smaller share of the business, their growth partially offset retail weakness.
On the cost side, salaries and benefits increased just 1% earlier in the year, signaling ongoing focus on expense control. The company also repurchased 980,341 shares for $11.4 million, reducing the diluted share count, which contributed positively to earnings per share.
Material one-time expenses included $2.2 million in transaction costs related to merger and acquisition activity, reflecting significant progress toward its pending acquisition by Western Union. These costs weighed on profit margins.
Business and Industry Context
International Money Express’s core business targets the U.S. to Latin America remittance corridor, with particular concentration in the Mexican and Guatemalan segments—corridors that account for approximately 80% of its gross margin. The company’s success is supported by proprietary technology that enables both physical and digital transfers, supported by rigorous compliance and established partnerships with major financial institutions.
A notable trend earlier in the year has been the shift in consumer remittance behavior. Customers are now sending money less frequently, but in larger amounts, leading to lower transaction counts but still substantial remittance volume. Management cited that the uncertain macroeconomic and regulatory backdrop, including stricter enforcement at U.S. borders, has played a role in this behavioral change earlier in the year. Digital product adoption is viewed as a way to partially offset these trends and provide continued growth momentum in the future.
On the competitive front, management noted some rational pricing but acknowledged increased competition in new and less-penetrated retail markets such as California and Texas. The company is also emphasizing innovation in products, such as value-added features for its digital platform (including bill payment and mobile top-up), and sees its proprietary “Wires as a Service” network as an opportunity for additional revenue streams, although this was not yet a material contributor in the first half of 2025.
The period included $2.2 million in transaction expenses related to the Western Union acquisition process, which weighed on bottom-line profitability.
Outlook and What to Watch
With its pending acquisition by Western Union, International Money Express has stopped providing financial guidance and has canceled upcoming earnings calls. The company stated it is no longer providing financial guidance due to the pending acquisition by Western Union.
Investors should continue to monitor digital product adoption, transaction trends, and potential updates on the Western Union deal timeline.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
