Cross-border volumes rose 23% to £145.2bn as active customers hit 15.6 million, supporting the 20.4% revenue increase.

FY2025 Revenue Growth Hits 20.4%

Wise reported full-year revenue of £1.65bn for FY2025, representing 20.4% year-over-year growth, as the cross-border payments platform scaled its customer base and transaction volumes while maintaining profitability. Underlying income—Wise's preferred revenue metric that excludes interest income on customer balances and other items—reached £1.36bn, up 16% on a reported basis and 18% in constant currency, according to the company's annual report. Underlying profit before tax (PBT) margin for the fiscal year was approximately 20%, well above the company's medium-term target range of 13-16%.

Reported profit before tax increased to £565m from £481m in FY2024, while net income rose to £416.7m, up 18% year-over-year. The company's underlying gross profit margin improved to 75%, up 2 percentage points versus the prior year, reflecting operating leverage from higher volumes and continued pricing discipline. Administrative expenses rose 25% to £768.6m, reflecting investments in headcount, technology infrastructure, and marketing capacity to support future growth.

YoY Growth (%) (%)Source: Orionmano Industries

Customer and Volume Growth as Key Revenue Drivers

Wise's FY2025 growth was underpinned by strong operational execution across both customer acquisition and transaction volume expansion. Active customers reached 15.6 million, up 21% year-over-year, with 5.9 million new customers completing their first cross-border transaction during the period. Cross-border volume rose 23% to £145.2bn, or 25% on a constant-currency basis, driven by higher average transaction values and increased adoption of Wise's account features among existing users.

The company continued its strategy of lowering prices to drive volume growth. Cross-border take rate—the effective fee charged on transactions—declined by 9 basis points to 58bps during FY2025. Wise estimates that its fee structure saved customers approximately £2bn in total during the year. This pricing strategy has contributed to the company's strong organic acquisition: approximately 70% of new customers currently discover Wise through word-of-mouth referrals, management noted on the H2 FY2025 earnings call.

Customer holdings—funds that customers hold in Wise accounts—grew 33% in Q4 FY2025 alone to £21.5bn, reflecting deeper engagement and trust. Over a four-year period from listing, customer holdings have grown 5.7x. Geographic diversification was also strong: all five of Wise's geographical segments—Europe, United Kingdom, North America, Asia-Pacific, and Rest of World—delivered double-digit growth in active customers and volume during FY2025.

Profitability and Margin Performance

Revenue growth translated into meaningful margin expansion at the gross profit level. Underlying gross profit increased 20% to £1,025.1m, while total gross profit reached £1,307.8m. Underlying gross profit margin improved to 75%, up 2 percentage points from FY2024, benefiting from higher transaction volumes and operating efficiencies as Wise scaled its platform. The company's ability to simultaneously lower take rates and expand gross margins underscores the unit cost advantages of its direct network model.

Reported profit before tax margin stood at 34%, though this figure is elevated by interest income on customer balances and other non-operating items. Wise's underlying PBT margin—which management uses for operational guidance—was approximately 20% for FY2025, above the 13-16% medium-term target range. Administrative expenses rose faster than revenue, increasing 25% to £768.6m, as the company reinvested profits into engineering headcount, product development, and market expansion initiatives.

For FY2026, management has guided that underlying PBT margin will be around the top end of the 13-16% range, signaling that the company intends to increase investment spending rather than allow margins to drift higher. This reinvestment strategy has been consistent with Wise's stated approach of prioritizing long-term market share capture over near-term profit maximization.

Strategic Outlook and Medium-Term Targets

Wise's medium-term guidance calls for 15-20% compound annual growth rate (CAGR) in underlying income and a 13-16% underlying PBT margin, a framework management reaffirmed during the H2 FY2025 earnings call. To support this trajectory, the company announced plans to double annual investment in infrastructure, marketing, and product development over the medium term, as disclosed at its recent Owners Day investor event.

In H1 FY2026—covering calendar Q2 and Q3 2025—Wise posted revenue of £658m, up 12% year-over-year, and underlying income of £749.5m. Marketing spend increased 52% year-over-year during the period as the company sought to accelerate customer acquisition beyond its strong organic referral channel. Management expects underlying PBT margin for FY2026 to be approximately 16%, at the top of the medium-term range.

Wise also announced a proposed dual US/UK listing aimed at enhancing liquidity and broadening its investor base, particularly in North America. The company has been expanding its Wise Platform partnerships with financial institutions; notable recent additions include a partnership with Itaú Unibanco in Latin America enabling instant cross-border payments directly from the Itaú app. Geographically, Wise entered the Mexico market during FY2025, enabling two-way money transfer flows, and launched Wise Business accounts in Hong Kong.

The combination of 20.4% revenue growth, expanding active customer base, disciplined pricing, and margin outcomes above medium-term targets positions Wise to sustain high-teens revenue growth over the medium term. The company's ability to reinvest profits into lower prices, product features, and geographic expansion while remaining within its targeted margin range will be a key determinant of whether it can capture a larger share of the estimated multi-trillion-dollar cross-border payments market.