WEX Inc. Reports Third Quarter 2025 Financial Results

Revenue of $692 million increased 3.9% compared to the prior year GAAP net income of $2.30 per diluted share and adjusted net income of $4.59 per diluted share GAAP operating income margin of 26.5% and adjusted operating income margin of 39.5% Raises full year 2025 revenue guidance to $2.63 billion to $2.65 billion and adjusted net income guidance to $15.76 to $15.96 per diluted share Separately, announced the appointment of David Foss to Board of Directors effective November 3, 2025PORTLAND, Maine--(BUSINESS WIRE)--WEX (NYSE: WEX), the global commerce platform that simplifies the business of running a business, today reported financial results for the three months ended September 30, 2025. “Our strategy to return to revenue growth was demonstrated in the third quarter with both revenue and earnings exceeding the high end of our guidance ranges,” said Melissa Smith, WEX’s Chair, Chief Executive Officer, and President. “We are focused on driving continued momentum by executing on our three strategic pillars: amplifying our core business, expanding our reach, and accelerating innovation. The third quarter marked a turning point with acceleration in revenue growth, and we are confident in our ability to deliver sustainable growth, attractive margins, and robust cash flow for our shareholders. Thank you to our more than 6,500 WEXers for their continued innovation, execution, and passion in support of our valued customers’ success around the world.” Third Quarter 2025 Financial Results (Results are compared to the prior year period unless otherwise noted) Total revenue for the third quarter of 2025 of $691.8 million increased 3.9%, driven by strength across the Benefits and Corporate Payments segments. The revenue increase in the quarter includes a $6.0 million unfavorable impact from fuel prices and spreads and a $2.7 million favorable impact from foreign exchange rates. Net income was $80.3 million, or $2.30 per diluted share, a decrease of 8.7%. Adjusted net income was $159.7 million, or $4.59 per diluted share, up 5.5%. Operating income margin was 26.5% compared to 29.5%. Total adjusted operating income margin was 39.5% compared to 44.0%1. Third Quarter 2025 Performance Metrics and Segment Results (Results are compared to the prior year period unless otherwise noted) Consolidated Total volume across all segments was $66.2 billion, an increase of 6.3%. Mobility Segment Delivers fleet payment solutions, transaction processing, and data-driven insights to more than 600,000 fleet customers globally. Revenue of $360.8 million increased 1.0%. Operating income margin of 30.9% and adjusted operating income margin of 40.7%. Payment processing transactions of 140.0 million decreased 4.5%. Benefits Segment Simplifies the complex world of employee benefits administration and offers a comprehensive platform that spans HSAs, FSAs, HRAs, COBRA, and Benefit Enrollment and administration. Revenue of $198.1 million increased 9.2%. Operating income margin of 28.7% and adjusted operating income margin of 43.8%. Average number of Software-as-a-Service (SaaS) accounts of 21.5 million grew 6.0%. Average HSA custodial cash assets were $4.8 billion, an increase of 11.4%. Corporate Payments Segment Provides automated payment solutions for businesses and government agencies through simplifying the business-to-business (B2B) payments process by digitizing accounts payable (AP) and enabling more efficient and secure transactions. Revenue of $132.8 million increased 4.7%. Operating income margin of 39.1% and adjusted operating income margin of 48.0%. Purchase volume of $23.2 billion decreased 0.9%. Total volume processed, including where WEX does not earn interchange revenue, was $43.3 billion, an increase of 10.8%. Balance Sheet and Cash Flow (Results are compared to the prior year period unless otherwise noted) Cash flow from operating activities in the third quarter of 2025 totaled $376.6 million compared to $3.3 million. Adjusted free cash flow totaled $166.2 million compared to $189.5 million2. The Company’s leverage ratio, as defined in its Credit Agreement, was 3.25x as of September 30, 2025, down from 3.4x as of June 30, 2025, and down from 3.5x at the end of Q1 2025. “Our third-quarter results highlight the resiliency of our business,” said Jagtar Narula, WEX’s Chief Financial Officer. “Even amid a challenged macro environment, we’re executing effectively, with sequential improvements and new business wins driving momentum. We remain focused on disciplined investment in our core and maintaining financial flexibility, positioning WEX to capture growth and operating leverage as market conditions improve.” Financial Guidance and Assumptions The Company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis, due to the uncertainty and the indeterminate amount of certain elements that are included in reported GAAP earnings. For the fourth quarter of 2025, the Company expects revenue in the range of $646 million to $666 million and adjusted net income in the range of $3.76 to $3.96 per diluted share. For the full year 2025, the Company now expects revenue in the range of $2.63 billion to $2.65 billion compared with the prior guidance of $2.61 billion to $2.65 billion issued in connection with our second quarter 2025 financial results. Adjusted net income is now expected to be in the range of $15.76 to $15.96 per diluted share, up from the prior range of $15.37 to $15.77. The company’s guidance is based on the following assumptions: U.S. retail fuel prices of $3.09 and $3.27 per gallon, respectively, for the fourth quarter and full year 2025 based on the applicable NYMEX futures price from the week of October 20, 2025. Adjusted net income tax rate of 25.0% for both the fourth quarter and full year. Mobility credit losses will range from 14 to 19 basis points for the fourth quarter and 13 to 14 basis points for the full year. Weighted average diluted shares outstanding of 34.9 million and 35.9 million for the fourth quarter and the full year, respectively. The Company's adjusted net income guidance, which is a non-GAAP measure, excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, acquisition-related intangible amortization, other acquisition and divestiture related items, stock-based compensation, other costs, debt restructuring costs and debt issuance cost amortization, tax related items and certain other non-operating items and non-recurring or non-cash operating charges that are not core to our operations, as applicable depending on the period presented. We are unable to reconcile our adjusted net income guidance to the comparable GAAP measure without unreasonable effort because of the difficulty in predicting the amounts to be adjusted, including, but not limited to, foreign currency exchange rates, unrealized gains and losses on financial instruments, and acquisition and divestiture-related items, which may have a significant impact on our financial results. Additional Information Management uses the non-GAAP measures presented within this earnings release to evaluate the Company’s performance on a comparable basis. Management believes that investors may find these measures useful for the same purposes, but cautions that they should not be considered a substitute for, or superior to, disclosure in accordance with GAAP. Beginning in fiscal year 2024, the Company began utilizing a fixed annual projected long-term non-GAAP tax rate in order to provide better consistency across reporting periods. The fixed annual projected long-term non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix including due to acquisition activity, or other changes to our strategy or business operations. The Company will re-evaluate our long-term rate as appropriate. To provide investors with additional insight into its operational performance, WEX has included in this earnings release in Exhibit 1, reconciliations of non-GAAP measures referenced in this earnings release; in Exhibit 2, tables illustrating the impact of foreign currency rates and fuel prices for each of our reportable segments for the three and nine months ended September 30, 2025; and in Exhibit 3, a table of selected other metrics for the quarter ended September 30, 2025 and the four preceding quarters. See segment revenue for the three and nine months ended September 30, 2025 and 2024 in Exhibit 4, and information regarding segment adjusted operating income margin and adjusted operating income margin in Exhibit 5. Conference Call Details and Availability of Supplemental Materials In conjunction with this announcement, WEX will host a conference call tomorrow, October 30, 2025, at 10:00 a.m. (ET). As previously announced, the conference call will be webcast live on the Internet, and can be accessed at the Investor Relations section of the WEX website, www.wexinc.com. The live conference call may also be accessed by dialing +1 (888) 596-4144 or +1 (646) 968-2525. The conference ID number is 2902800. The live webcast will be accompanied by presentation slides, which will be made available through the investor relations section of the WEX website on the morning of October 30 prior to the beginning of the webcast. A replay of the live webcast and the accompanying slides will be available on the Company's website through at least Thursday, November 6, 2025. Concurrent with this release, WEX has posted supplemental materials to the Investor Relations section of its website to assist investors with understanding our results and performance. About WEX WEX (NYSE: WEX) is the global commerce platform that simplifies the business of running a business. WEX has created a powerful ecosystem that offers seamlessly embedded, personalized solutions for its customers around the world. Through its rich data and specialized expertise in simplifying benefits, reimagining mobility, and paying and getting paid, WEX aims to make it easy for companies to overcome complexity and reach their full potential. For more information, please visit www.wexinc.com. ___________________________ 1 See Exhibit 1 of this press release for a full explanation and reconciliation of the non-GAAP financial measures, adjusted net income, adjusted net income per diluted share, total segment adjusted operating income, and adjusted operating income to the most directly comparable GAAP financial measures. See Exhibit 5 of this press release for information on the calculation of adjusted operating income margin. 2 Please see the reconciliation of this non-GAAP measure to operating cash flow in Exhibit 1. Forward-Looking StatementsRead the full story here

WEX Inc. Reports Third Quarter 2025 Financial Results

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