WEX (WEX) Company Report

WEX's strategic priorities for 2026 include enhancing its core business, extending its market reach into new areas like the owner-operator marketplace, and accelerating innovation through AI deployment.
The company expects Q4 2024 spend volume and revenue trends to be largely in line with expectations, with strong sales momentum projected to benefit 2025 and 2026.
In the Mobility segment, WEX reported a 12% increase in new sales with small businesses year over year and anticipates the BP migration in 2026 to be an incremental benefit. The Benefits segment is experiencing a strong Open Enrollment season and saw HSA accounts up 7% in Q3.
WEX has lapped the OTA headwinds in its Corporate Payments segment, positioning it for more normalized growth, and has invested in new sales teams and product enhancements like AP Direct and Embedded Payments.
WEX aims to reduce its leverage below 3x in the next year (from 3.25x in Q3) and maintains a bias towards share buybacks as a primary capital allocation strategy due to strong cash flow generation.

2 days ago

Transcript

WEX CEO Outlines 2026 Priorities and Business Outlook

WEX

New Projects/Investments

Guidance Update

Share Buyback

WEX's key priorities for 2026 include enhancing its core business, extending its market reach, and accelerating innovation, with the BP migration and new product rollouts expected to provide incremental benefits.
The company anticipates Q4 2024 spend volume and revenue trends to be largely in line with expectations, with strong sales momentum projected to benefit 2026.
In the Mobility segment, WEX reported a 12% increase in new sales with small businesses year over year and expects macro headwinds to persist in the first half of 2026. The Benefits segment is seeing a strong open enrollment season and expects long-term benefits from expanded eligibility.
WEX has lapped the OTA headwinds in Q3 for Corporate Payments, leading to more normalized growth, and continues to invest in product capabilities and sales, with sales team paybacks typically less than two years.
WEX aims to reduce its leverage to below 3x in the next year and has a continued bias towards share buybacks as a capital allocation strategy due to their high risk-adjusted return.

2 days ago

Transcript

WEX Discusses 2026 Priorities, Segment Performance, and Capital Allocation at UBS Conference

WEX

Guidance Update

New Projects/Investments

Share Buyback

WEX's strategic priorities for 2026 include enhancing its core business, extending market reach, and accelerating innovation, with a focus on AI deployment. The company's Q4 2024 spend volume and revenue trends are largely in line with expectations, but WEX anticipates macro headwinds in the first half of 2026, particularly impacting same-store sales in its Mobility business.
In the Mobility segment, WEX reported a 12% increase in new sales with small businesses year over year and expects incremental benefits from the BP migration in 2026. The Benefits segment maintains a 20% share of all HSA accounts and is experiencing a strong open enrollment cycle, with potential long-term growth from expanded HSA eligibility. The Corporate Payments segment is returning to normalized growth after lapping prior headwinds and is seeing strong product-market fit from investments in AP Direct and Embedded Payments.
WEX's business segments are considered stronger together due to significant integration and over 200 cross-selling activities across the portfolio. The company generates substantial cash flow, with 80%-90% of adjusted net income dropping to cash. Capital allocation priorities include deleveraging to below 3x leverage in the next year and a continued bias towards share buybacks, while also considering product extensions and selective international expansion for M&A.

2 days ago

Transcript

WEX Discusses Segment Performance, Strategic Growth, and Capital Allocation

WEX

Demand Weakening

Revenue Acceleration/Inflection

New Projects/Investments

WEX's mobility segment, which accounts for approximately 50% of its revenue, has experienced headwinds from freight volatility and macro factors, with Same-Store sales down but showing more stability in Q3. Despite this, the company is seeing a strong sales year in this segment, particularly in the small business arena with 12% more accounts year-to-date, and expects a 0.5 to 1 point growth from the BP win rolling out next year.
In corporate payments, WEX has largely completed lapping the Booking.com transition in Q3, which had a 2% negative impact on company revenue, and anticipates good growth in its travel customer base going forward. The non-travel payments side is diversifying the segment, with the AP Direct product growing spend volume by 20% last quarter and a new embedded payments product showing strong sales.
The benefits business continues to be a reliable grower for WEX, driven by secular tailwinds in consumer-directed healthcare and HSA account growth. The company leverages its custodian capabilities and bank to achieve premium economics.
WEX is prioritizing internal investments and debt reduction, with current leverage at 3.25 times against a target of 2.5 to 3 times. The board concluded that the company is "better together", citing shared technology infrastructure, the WEX Bank's advantage, global compliance, and cross-selling opportunities as key reasons.

Nov 18, 2025, 2:00 PM

Transcript

WEX Discusses Segment Performance, Strategic Priorities, and Capital Allocation at Citi FinTech Conference

WEX

Revenue Acceleration/Inflection

New Projects/Investments

Demand Weakening

WEX's mobility segment, comprising about 50% of revenue, has experienced a "rolling recession" for its over-the-road customers for a couple of years, though Q3 Same-Store sales showed more stability. The company anticipates 0.5 to 1 point of growth in the 12 months following the BP onboarding next year and has seen 12% more small business accounts year-to-date.
The corporate payments segment has largely completed the lapping of the Booking.com transition in Q3, which previously caused a 2% decline in company-wide high-margin revenue. Excluding this, the travel customer base showed good growth, and the non-travel payment side, 40-50% of the business, saw its AP Direct product grow spend volume by 20% last quarter.
WEX's benefits business is supported by secular tailwinds, with HSA accounts growing around 5%, and the company leverages its WEX Bank for premium economics as a custodian, providing technology solutions to 7 of the 10 largest HSA providers.
WEX generates 80-90% of its adjusted net income as cash flow. With current leverage at 3.25x (above its 2.5x to 3x target), the company's capital allocation priority is currently to pay down debt and invest internally before considering M&A or share buybacks.
Following an in-depth review, WEX's board and independent investment banks concluded the company is "better together", citing benefits from shared technology infrastructure, the WEX Bank, global compliance, and cross-selling opportunities.

Nov 18, 2025, 2:00 PM

Transcript

WEX Discusses Business Segments, Growth Drivers, and Capital Allocation at FinTech Conference

WEX

Revenue Acceleration/Inflection

New Projects/Investments

Share Buyback

WEX, a 40-year-old company, focuses on simplifying business operations for over 600,000 customers globally through payment intelligence and workflow optimization.
In its Mobility segment (approximately 50% of revenue), WEX is navigating a "rolling recession" for over-the-road customers but has achieved 12% more accounts in the small business arena year-to-date and anticipates BP's onboarding next year to contribute 0.5 to 1 point of growth.
The Corporate Payments segment largely completed the lapping of a significant online travel customer transition in Q3 of this year, which had previously caused a 2% decline in high-margin revenue for the company. The non-travel payments portion, representing 40-50% of the segment, saw its AP Direct product grow spend volume by 20% last quarter.
WEX's Benefits business is experiencing strong growth in consumer-directed healthcare, with HSA accounts growing approximately 5%, and its custodian role and technology are key, as 7 of 10 HSA providers rely on WEX's solutions.
The company's board, following an independent review, concluded that WEX is "better together," leveraging shared technology, the WEX Bank, global compliance, and cross-selling opportunities. WEX is currently prioritizing debt reduction, with leverage at 3.25x against a target of 2.5x to 3x.

Nov 18, 2025, 2:00 PM

Transcript

WEX Discusses Q3 2025 Mobility Trends, Corporate Payments Growth, and 2026 Margin Outlook

WEX

Demand Weakening

New Projects/Investments

Guidance Update

The Mobility segment experienced negative volume growth in Q3 2025, similar to Q2 2025, reflecting macro challenges and overcapacity in the over-the-road sector, though new SMB business volume increased 12% year-over-year.
Corporate Payments returned to growth in the last quarter, with the direct AP business achieving 20% volume growth in the past two quarters, and the segment is projected to grow in the mid-single digits range.
The Benefits segment grew HSA accounts by 7%, outpacing the market's 5% growth. Upcoming legislation will make an additional 3-4 million accounts eligible for HSAs starting January 1, 2026.
WEX anticipates flat margins in 2026 due to ongoing innovation investments, but expects annual margin expansion of approximately 50 basis points beyond 2026.
A strategic review concluded that breaking up the business is not beneficial due to significant synergies. The company is prioritizing debt reduction, aiming for ~3x leverage by Q3 2026 before reinitiating programmatic share buybacks and M&A.

Nov 12, 2025, 6:10 PM

Transcript

NCR Voyix Reports Third Quarter 2025 Results

WEX

Earnings

Guidance Update

NCR Voyix reported revenue of $684 million and a net loss from continuing operations of $17 million for the third quarter ended September 30, 2025.
For Q3 2025, the company achieved Adjusted EBITDA of $125 million and non-GAAP diluted EPS of $0.31.
Software & Services Revenue was $504 million, and Software ARR increased to $798 million as of September 30, 2025.
The company updated its full-year 2025 outlook, projecting Total Revenue between $2,650 million and $2,670 million, Adjusted EBITDA between $420 million and $435 million, and Non-GAAP Diluted EPS between $0.85 and $0.90.

Nov 6, 2025, 11:45 AM

Press Release

WEX Reports Strong Q3 2025 Results and Provides Q4 and Full-Year Guidance

WEX

Earnings

Guidance Update

Revenue Acceleration/Inflection

WEX delivered strong Q3 2025 financial performance, with revenue reaching $691.8 million, an increase of 3.9% year-over-year, and adjusted net income per diluted share of $4.59, up 5.5% year-over-year, both exceeding the high end of guidance.
Q3 marked a turning point with acceleration in revenue growth, particularly in the Mobility segment, and Corporate Payments returned to revenue growth after largely moving past the OTA customer headwind. The company aims for a long-term revenue growth target of 5% to 10% and double-digit adjusted EPS growth.
For Q4 2025, WEX expects revenue in the range of $646 million to $666 million and adjusted EPS between $3.76 and $3.96 per diluted share. The full-year 2025 outlook projects revenue between $2.63 billion and $2.65 billion and adjusted EPS between $15.76 and $15.96 per diluted share.
The company's leverage ratio was 3.25 times at the end of Q3 2025, within its long-term range of 2.5 to 3.5 times. WEX also highlighted sensitivities, noting a $0.10 change per gallon in fuel prices impacts annual revenue by $20 million and EPS by $0.35, while a 100 basis point change in interest rates impacts annual revenue by $40 million.

Oct 30, 2025, 2:00 PM

Transcript

WEX Reports Strong Q3 2025 Results and Updates Full Year Guidance

WEX

Earnings

Guidance Update

Revenue Acceleration/Inflection

WEX reported Q3 2025 revenue of $691.8 million, an increase of 3.9% year-over-year, and adjusted EPS of $4.59, up 5.5% year-over-year, with both metrics exceeding the high end of guidance.
The company provided Q4 2025 revenue guidance of $646 million to $666 million and adjusted EPS guidance of $3.76 to $3.96 per diluted share. For full year 2025, WEX expects revenue between $2.63 billion and $2.65 billion and adjusted EPS between $15.76 and $15.96 per diluted share, an increase from previous guidance.
Q3 2025 marked a turning point with acceleration in revenue growth, driven by strong performance in the Mobility segment and a return to growth in Corporate Payments, as the company largely moved past the OTA customer headwind.
WEX ended Q3 2025 with a leverage ratio of 3.25x, down from 3.5x at the end of Q1, placing it within the long-term target range of 2.5x-3.5x. The company also announced the appointment of Dave Foss to its Board of Directors, effective November 3rd.

Oct 30, 2025, 2:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for WEX.

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