Wise (LSE: WISE) stock surges after FY25 profit beat and US dual listing news

Why Did Wise plc Stock Rise After FY25 Results?

Wise plc (LSE: WISE), a London-listed cross-border fintech firm, saw its shares rally over 4.25% to close at 1,129 GBX on 5 June 2025, after reporting a robust set of financial results for the year ending 31 March 2025. The surge was catalyzed by two major developments: record profitability and a proposed dual listing in the United States. The company’s stock touched an intraday high of 1,225 GBX, with LSE data confirming a volume of 270,465 shares traded and turnover exceeding £3 million, underlining the market’s swift institutional response to the announcement.

Wise’s results and listing strategy align with a broader sectoral shift in European fintechs looking for greater liquidity and valuation parity with U.S. peers. Companies like Adyen, Klarna, and Revolut have all made strategic pivots to access deeper pools of capital and regulatory flexibility. For Wise, the move is part of its long-term vision to become the global network for moving money at scale.

How Strong Were Wise plc’s FY2025 Financial Results?

Wise plc delivered standout earnings for FY2025. Revenue grew by 15% to £1.21 billion, while underlying income reached £1.36 billion, reflecting 16% growth year-on-year. Underlying profit before tax surged to £282.1 million, representing a 17% increase over FY2024, and delivering a margin of 21%—well above its mid-term guidance of 13–16%. Meanwhile, reported profit before tax rose to £564.8 million from £481.4 million, translating to earnings per share (EPS) of 40.37p, up 18%.

These results stemmed from increased customer adoption, rising volumes, and a disciplined approach to reinvestment. Wise processed £145.2 billion in cross-border volume, a 23% increase over FY2024. Active customers rose by 21% to 15.6 million, with business users growing by 11% and personal customers by 22%. Card revenue jumped 31% to £219.8 million, while other income from features like Wise Assets grew 71% to £151.7 million.

What’s Driving Institutional Investor Interest in Wise plc?

Institutional flows into Wise plc appear to be reacting to more than headline profitability. The company’s consistent free cash flow conversion—117.9% in FY2025, with £332.7 million in underlying free cash flow—signals high operational efficiency. The fintech also maintained £18.6 billion in cash and highly liquid investments at year-end, giving it a strong liquidity buffer and strategic flexibility as it ramps up investments and gears up for its U.S. dual listing.

Market observers noted the reduction in Wise’s take rate from 0.67% in FY2024 to 0.53% in Q4 FY2025—a strategic price cut aimed at boosting volume while still preserving profitability. This pricing approach strengthens the long-term moat around Wise’s infrastructure model, particularly as competition in the digital cross-border space intensifies with players like PayPal, Revolut, and Remitly.

What Is the Significance of the Proposed US Dual Listing?

Wise’s proposal to shift its primary listing to a U.S. stock exchange while retaining a secondary listing on the London Stock Exchange reflects a calculated move to align with U.S. investor expectations and attract deeper institutional capital. The company’s Board cited several strategic benefits: access to U.S. retail and institutional capital, potential future inclusion in major U.S. indices, and increased visibility for the Wise brand in its largest addressable market.

Notably, the U.S. remains the biggest opportunity for Wise’s fintech platform, given its fragmented banking infrastructure and high consumer fees for international transfers. Wise’s infrastructure, which bypasses traditional correspondent banking, is particularly well-positioned to scale in this environment. The firm already partners with U.S. financial giants such as Morgan Stanley and is actively expanding its Wise Platform offering.

Shareholders will vote on the proposal later in June 2025, and the full circular is expected around 26 June. If approved, the dual listing would likely accelerate Wise’s long-term growth and widen its shareholder base dramatically.

How Is Wise Building a Global Payments Infrastructure?

Wise’s competitive differentiation is increasingly rooted in its proprietary infrastructure, which now integrates directly with eight domestic payment systems globally. FY2025 saw new connections established with InstaPay (Philippines), PIX (Brazil), and Zengin (Japan). These integrations reduce dependency on the outdated SWIFT-based correspondent banking model and enable high-speed, low-cost money transfers.

Currently, 65% of all transactions through Wise are completed in under 20 seconds. This infrastructure advantage is further extended via Wise Platform, which powers cross-border payments for banks and enterprises, including Itaú Unibanco, Standard Chartered, and Nubank.

The company now holds over 70 global regulatory licenses, and in FY2025 operationalised a new AD-II license in India, removing legacy caps on outward remittances. In Australia, Wise launched a new investment-grade product offering interest-like returns via government-backed securities, another step in deepening customer wallet share.

What’s the Sectoral Context Around Wise’s Growth?

Wise’s growth mirrors the evolution of the global fintech and neobanking space, where digital-first platforms are outpacing legacy financial institutions in cost, speed, and transparency. The global cross-border payments market, valued at £32 trillion, remains highly fragmented and ripe for disruption. Traditional banks still extract an estimated £200 billion annually in hidden fees—an inefficiency that Wise is aggressively targeting.

The EU’s recent regulatory actions to mandate fee transparency in cross-border payments, alongside increased consumer demand for instant and low-cost transactions, play directly into Wise’s cost-leadership strategy. With growing regulatory scrutiny and rising consumer expectations, fintechs that can deliver scalable, compliant, and efficient platforms are poised to gain share.

How Are Costs and Investments Shaping the Path Forward?

Wise is ramping up investment across its operations, committing £2 billion over the next two years in infrastructure, marketing, and product development. Administrative expenses rose by 25% in FY2025 to £768.6 million, driven by an expanding workforce—now over 6,500 globally—and an increase in third-party servicing, technology, and consulting costs.

The company’s marketing outlay increased 47% year-over-year to £53.8 million, including its first brand campaign in Australia. Technology costs rose 23% to £65.9 million, and expenses for consultancy and outsourced services jumped 42% to £128.1 million. While these investments compressed short-term margins, management underscored their strategic role in supporting scalable, long-term growth.

Wise has also begun expanding its share repurchase program, with £73 million allocated in FY2025 to mitigate dilution from stock-based compensation. This proactive approach may help support the stock’s valuation ahead of the proposed U.S. listing.

What Is the Forward Guidance for FY2026?

For FY2026, Wise expects to maintain underlying income growth in the range of 15–20%, with an underlying profit before tax margin at the top end of the 13–16% range. The company remains committed to reinvesting efficiency gains into product innovation, pricing improvements, and geographic expansion.

Management’s strategy is clear: continue scaling volumes through reduced pricing, infrastructure-led speed, and embedded finance partnerships. Wise believes that long-term success will stem from becoming the cheapest and most reliable infrastructure provider in the global money movement space—a goal it appears structurally positioned to achieve.

Analysts anticipate potential index inclusion once the U.S. listing matures, and institutional sentiment remains constructive. While global fintech valuations remain volatile, Wise’s fundamentals—scalable revenue, high free cash flow, and robust infrastructure—make it a standout.

Can Wise Become the Global Standard for Cross-Border Money Movement?

Wise plc’s FY2025 performance and strategic roadmap underscore a maturing fintech transforming from a disruptor into global infrastructure. The proposed U.S. dual listing, underpinned by strong fundamentals and long-term market tailwinds, could be the catalyst that propels Wise into the next league of global financial platforms. For investors, the stock represents a rare blend of growth, profitability, and scalable infrastructure in a sector where few players check all three boxes.