REG - Wise PLC - Translation of IFRS financials into US GAAP

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RNS Number : 1566A  Wise PLC  13 April 2026

13 April 2026

 

Translation of IFRS financials into US GAAP

 

On 5 June 2025, Wise announced its intention to transfer Wise's primary
listing to a US stock exchange and maintain a secondary listing on the London
Stock Exchange. Once this transfer is complete, Wise will convert (i) to
reporting under US GAAP from IFRS; (ii) the presentation currency of its
financial reporting to US dollars from pounds sterling; and (iii) will no
longer report on the earnings-adjusted 'underlying basis'. Wise's historical
financial statements (for the year ended 31 March, 2024 and 2025, and half
year ended 30 September 2025) are to be presented on this basis within its US
registration statement.

 

To assist with the translation of our historical financials from IFRS to US
GAAP, we have prepared a reconciliation between the two accounting bases for
the periods noted above, which is available on our Owner Relations website at
wise.com/owners/ (http://wise.com/owners/) . In addition, provided below is a
translation of existing medium-term guidance from an IFRS 'underlying basis'
to US GAAP.

 

Note that there is no change to our medium-term expectations for the business,
including our approach to investing for long-term growth, and the guidance
below reflects a pure translation from our existing to our new reporting
framework. Our translated medium-term guidance assumes no material changes in
central bank rates or any material change to the current proportion of
interest income paid to customers (see below for further information):

 

●     Sustained long-term growth. Underlying income growth on an IFRS
basis of 15-20% CAGR from FY24 on a constant currency basis translates to:

○     15-20% CAGR net revenue growth over the medium term under US GAAP
(from FY24 as a base year) on a constant currency basis.

●     Generating attractive returns. Investing to a target medium-term
underlying profit before tax margin of 13-16% under IFRS translates to:

○     Investing to a medium-term target income before tax margin of
15-20% of net revenue including the first 1% of interest income generated and
the 20% of additional interest income retained thereafter.

○    Whilst we aim to pay out the remaining 80% of additional interest
income to customers, we currently do not, primarily due to regulatory
restrictions or because customers in some jurisdictions are required to opt-in
to receive interest payments.

○     As such, until we are substantially able to pay out this
additional interest, we expect to report an above-target income before tax
margin of 20-25% (see below for further information).

Further information in relation to the receipt and use of interest income

As of H1 FY26, customers held $26.4bn of balances with Wise. Interest income
is received by Wise in the process of safeguarding customer deposits. As we
have previously communicated, we choose to use the first 1% yield of this
interest income to contribute towards the costs incurred in providing
customers with the Wise account. Interest income received beyond this first 1%
yield is split  20%/80% with 20% also retained by the business and 80%
available for payment to customers.

In H1 FY26, of all interest income received above this first 1% yield: 20%
flowed intentionally to income before tax, 36% was paid to customers, with the
remaining 44%, which was allocated but not possible (due to regulatory or
operational constraints) to be paid to customers, incidentally flowed to
income before tax. As we have previously communicated, we expect to further
enable the payment of interest to customers up to our 80% target level over
time.

Based on customer balances held at the end of H1 FY26, a 25bps simultaneous
reduction/increase in central bank rates from their prevailing position would
reduce/increase net interest income, net revenue and income before tax by
approximately $40m per year.

Enquiries

Martin Adams - Investor Relations

owners@wise.com (mailto:owners@wise.com)

 

Sana Rahman - Communications

press@wise.com

 

Brunswick Group

Charles Pretzlik / Emily Murphy

Wise@brunswickgroup.com

+44 (0) 20 7404 5959

 

About Wise

 

Wise is a global technology company, building the best way to move and manage
the world's money.

 

With Wise Account and Wise Business, people and businesses can hold 40+
currencies, move money between countries and spend money abroad. Large
companies and banks use Wise technology too; an entirely new network for the
world's money. Launched in 2011, Wise is one of the world's fastest growing,
profitable tech companies.

 

In fiscal year 2025, Wise supported around 15.6 million people and businesses,
processing over £145 billion ($185 billion) in cross-border transactions and
saving customers around £2 billion ($2.6 billion).

 

FORWARD LOOKING DISCLOSURE DISCLAIMER

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events in the forward-looking statements may not occur.

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should not be taken as a representation that trends or activities underlying
past performance will continue in the future, and the statements in this
report speak only as at the date of this report. No representation or warranty
is made or will be made that any forward-looking statement will come to pass
and there can be no assurance that actual results will not differ materially
from those expressed in the forward-looking statements.

Wise expressly disclaims any obligation or undertaking to update, review or
revise any forward-looking statements contained in this report and disclaims
any obligation to update its view of any risks or uncertainties described
herein or to publicly announce the results of any revisions to the
forward-looking statements made in this report, whether as a result of new
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