International Money Express Reports 15.4% Revenue Decline in Q1 2026

International Money Express, Inc. reported a decline in financial performance for the first quarter of 2026, with total revenues of $121.95 million, down 15.4% from $144.31 million in the same period of 2025. The decrease was primarily driven by a significant drop in wire transfer and money order fees, which fell to $99.75 million from $120.17 million, reflecting a contraction in the retail remittance market, particularly in the Latin America and Caribbean corridor. The company also experienced a reduction in foreign exchange gains, which decreased to $16.32 million from $20.18 million. Net income for the quarter was $511,000, a sharp decline of 93.4% compared to $7.77 million in the prior year, resulting in earnings per share of $0.02, down from $0.25.

Operationally, the company saw a decrease in transaction volume, with the principal amount sent dropping approximately 11.4% to $4.9 billion, and total remittances processed decreasing by about 12.0% to 11.2 million transactions. This decline was partially offset by increased activity in digital channels and European subsidiaries. The company’s agent network also contracted slightly by 0.6%. Despite these challenges, International Money Express is focusing on expanding its digital services, which have shown higher consumer adoption rates.

In terms of expenses, total operating expenses decreased to $118.28 million from $130.24 million, primarily due to lower service charges from agents and banks, which fell to $79.09 million from $93.79 million. Salaries and benefits increased slightly to $18.89 million, reflecting investments in talent acquisition and improved compensation for the sales force. The provision for credit losses rose to $2.89 million, attributed to higher chargebacks and write-offs from sending agents unable to meet payment terms.

Strategically, the company is in the process of a pending merger with The Western Union Company, which was announced in August 2025. The merger is expected to close in the second quarter of 2026, pending regulatory approvals. As of March 31, 2026, the company had received approvals from 51 U.S. states and territories, with one state still pending. The merger agreement stipulates that each share of the company’s common stock will be converted into $16.00 in cash upon completion. The company has suspended its stock repurchase program during the merger process, with $48.3 million remaining available for future repurchases.

Looking ahead, International Money Express anticipates continued challenges due to market conditions, including potential impacts from changes in immigration laws and economic factors affecting remittance flows. The company is committed to enhancing its digital offerings and expanding its market presence while managing operational costs effectively. The outlook remains cautious as the company navigates the complexities of the merger and the evolving financial landscape.