 Wise increased its cross-border volume by 20.5% YoY to £35.2bn in 2Q25 (ended 20 September 2024). The growth was driven by a 23% YoY increase in active customer, reaching 8.9mn in 2Q25. According to Wise, this expansion was primarily due to existing customers recommending the service. The number of customers in the Personal segment grew by 23.7% YoY to 8.5mn, while the Business segment expanded by 9.9% to 0.42mn clients. Cross border volume increased by 20.8% YoY in the Personal segment and by 19.4% in the Business segment. Wise reduced or restructured its cross-border pricing to support the growth. The cross-border take rate was 0.59% in 2Q, down from 0.64% in the previous quarter and 0.67% a year earlier. Wise reported cross border revenue of £207.9mn, up 5.8% YoY, including £167.2mn (+8.1% YoY) from the Personal segment and £40.7mn (-2.6% YoY) from the Business segment. Revenue from cards and other services increased by 49.2% YoY to £92.8mn, with £70.5mn from Personal and £22.3mn from Business customers. Interest income also grew, with underlying interest income on the first 1% yield up 22.2% YoY to £36.3mn, while interest income above 1% yield increased by 35.2% YoY to £115.9mn. Wise increased benefits paid relating to customer balances by 50% YoY to £43.5mn. Benefits paid to customers represented 1.127% of customer balances in the Personal segment and 1.147% in the Business segment over the last 12 months. Overall, underlying income increased by 17% YoY to £337mn, with growth of 19.3% in the Personal segment and 9.2% in the Business segment. The Business segment accounted for 23% of Wise’s underlying income in 2Q25. Wise reported an underlying gross profit margin of c76% for 1H25.  Wise expects underlying income to grow by 15-20% in FY25. The price reduction for its cross border business in 1H is expected to support Wise’s medium-term target for the underlying PBT margin range of 13-16% in 2H25. The anticipated decline in central bank interest rates, driven by lower inflation, may limit future interest income. Wise also noted that it does not foresee any material investments in pricing in 2H25.  We updated our estimates for Wise. The results exceeded our expectations in both customer numbers and volume. Interest rates also remained higher for longer than we had previously anticipated. We believe that Wise’s competitive pricing and strong service offering will contribute to its resilience in the future. We adjusted our DCF-based 12-month target price to GBp774, up from GBp735. We rate the stock Hold.