Translation of IFRS financials into US GAAP

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/. 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

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Sana Rahman - Communications

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Brunswick Group

Charles Pretzlik / Emily Murphy

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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

This report may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as "forward looking", "guidance", "target", "believe", "expect", "intend", "may", "anticipate", "estimate", "forecast," , "project", "will", "can have", "likely", "should", "would", "could" and  any other words and terms of similar meaning or the negative thereof. These forward-looking statements are subject to risks, uncertainties and assumptions about Wise and its subsidiaries. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. 

Past performance cannot be relied upon as a guide to future performance and 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 information, future developments or otherwise, except as required by law.

 

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