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Investing.com -- Shares of Wise Plc (LON:WISEa) jumped over 8% on Thursday following the announcement of its plan to shift its primary stock market listing to the United States.
This move, while maintaining a dual listing in the United Kingdom (TADAWUL:4280), aims to attract a broader base of growth-oriented investors.
Wise stated that its operations in the U.K. will remain largely unchanged, with its headquarters in London.
Wise reported its fiscal year 2025 preliminary results, with a 4% beat on underlying profit before tax (uPBT).
This was driven by stronger-than-anticipated margins, despite a 78% year-over-year increase in marketing expenses during the second half of the fiscal year.
The company’s fiscal year 2026 guidance for uPBT margins remained consistent at "around the high-end" of its 13-16% mid-term ambition.
For the second half of fiscal year 2025, Wise’s underlying gross profit increased by 12% to £520m, achieving a 74% margin.
This compares to a consensus estimate of £511m and a 73% margin. Underlying profit before tax (uPBT) and its corresponding margin were down 9% to £135m and 19% respectively.
This figure was 9% above the consensus of £123m and 18%, and 7% above Jefferies’ estimate of £126m and 18%. Adjusted diluted earnings per share (EPS) decreased by 19%, which was 13% below the consensus of 21 pence.
Underlying free cash flow reached £221m, representing a 32% margin, compared to a consensus of £138m and a 20% margin.
Corporate cash reserves stood at £1.4bn at the end of March, an increase from £1.1bn at the end of September.
Geographically, the U.K. market saw a 10% year-over-year revenue growth, reaching £117m and contributing 19% of total revenue. Europe (excluding the U.K.) grew by 11% to £191m, accounting for 31% of total revenue.
North America’s revenue increased by 6% to £118m, making up 19% of the total. The Asia-Pacific (APAC) region was the fastest-growing segment, with a 19% increase to £136m, representing 22% of total revenue.
The Rest of the World (RoW) experienced a 4% growth to £59m, contributing 9% to total revenue.
The average number of employees at Wise increased by 12% year-over-year to 6,151, with 64% in servicing, 23% in product development, and the remainder in marketing and other functions.
Marketing expenses specifically rose by 78% year-over-year to £31m. Share-based compensation (SBC) was £27m, down 27% year-over-year, representing approximately 4% of underlying income.
Additionally, 65% of transfers were processed instantly, and Wise expanded its license portfolio to 70, establishing direct connections in Japan, the Philippines, and Brazil.
For fiscal year 2026, Wise introduced guidance projecting 15-20% underlying total income growth, aiming for £1.57-1.64bn.
Jefferies models this at £1.64bn, aligning with the consensus of £1.62bn and the company’s mid-term ambition.
For underlying profit before tax (uPBT), margins are expected to be "around the top" of the 13-16% mid-term ambition range, implying a range of £235-278m.
Jefferies forecasts uPBT at £274m, while consensus stands at £276m. Wise also committed to investing approximately £2bn over the next two years in infrastructure, marketing, and products.