WEX Inc. Reports Fourth Quarter and Full Year 2025 Financial Results

Q4 revenue of $672.9 million increased 5.7% compared to the prior year; full year revenue of $2.66 billion increased 1.2%

Q4 GAAP net income of $2.41 per diluted share and adjusted net income of $4.11 per diluted share

Q4 GAAP operating income margin of 24.7% and adjusted operating income margin of 36.7%

PORTLAND, 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 and year ended December 31, 2025.

"Our strong fourth quarter results demonstrate the strategic actions we took to accelerate our growth and drive progressively stronger performance over the course of the year," said Melissa Smith, WEX's Chair, Chief Executive Officer, and President. "We delivered record revenue in 2025 while navigating a dynamic macro environment by remaining focused on our strategic priorities. Entering 2026, we have clear momentum and confidence in our long-term plan to deliver sustainable growth, expanding profitability, and robust cash flow."

Fourth Quarter and Full Year 2025 Financial Results
(Results are compared to the prior year period unless otherwise noted)

Total revenue for the fourth quarter of $672.9 million, an increase of 5.7%, was driven by strength across the Benefits and Corporate Payments segments. The revenue increase in the quarter includes a net $3.3 million favorable impact from fuel prices and spreads and a $4.2 million favorable impact from foreign exchange rates.

Net income for the fourth quarter of $84.3 million, or $2.41 per diluted share, increased 50.6% per diluted share. Adjusted net income for the fourth quarter was $143.7 million, or $4.11 per diluted share, up 15.1% per diluted share. Operating income margin for the fourth quarter was unchanged with the prior year at 24.7%. Total adjusted operating income margin for the fourth quarter was 36.7% compared to 37.9%¹.

For the full year 2025, revenue increased 1.2% to $2.66 billion. The revenue increase includes a net $27.0 million unfavorable impact from fuel prices and spreads and a $6.2 million favorable impact from foreign exchange rates. For the full year 2025, net income was $8.47 per diluted share compared to $7.50 per diluted share. For the full year 2025, adjusted net income per diluted share increased 5.4% to $16.10.

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 margin, 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.

Fourth 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 $58.0 billion, an increase of 10.3%.

Mobility Segment
Delivers fleet payment solutions, transaction processing, and data-driven insights to more than 600,000 fleet customers globally.

• Revenue of $345.1 million was flat.
• Operating income margin of 25.6% and segment adjusted operating income margin of 37.3%.
• Payment processing transactions were 132.5 million, a decrease of 4.3%.

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 $204.9 million increased 9.6%.
• Operating income margin of 28.7% and segment adjusted operating income margin of 40.6%.
• Average number of Software-as-a-Service (SaaS) accounts were 21.6 million, an increase of 6.0%.
• Average HSA custodial cash assets were $4.9 billion, an increase of 11.6%.

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 $122.9 million increased 17.8%.
• Operating income margin of 39.7% and segment adjusted operating income margin of 48.4%.
• Purchase volume was $19.3 billion, an increase of 16.9%.
• Total volume processed, including where WEX does not earn interchange revenue, was $36.5 billion, an increase of 18.3%.

Balance Sheet and Cash Flow
(Results are compared to the prior year period unless otherwise noted)

• Cash flow from operating activities in Q4 was $294.7 million, compared to $638.4 million. For the full year of 2025, cash flow from operating activities totaled $454.3 million, compared to $481.4 million in 2024.
• Adjusted free cash flow in Q4 was $261.3 million, compared to $169.5 million. For the full year of 2025, adjusted free cash flow totaled $638.0 million, compared to $562.0 million in 2024².
• The Company’s leverage ratio, as defined in its Credit Agreement, was 3.1x as of December 31, 2025, down from 3.25x as of September 30, 2025.

"We continue to execute our strategy and our business demonstrated strength and resilience in 2025," said Jagtar Narula, WEX's Chief Financial Officer. "We successfully reaccelerated our growth by enhancing our go-to-market engine while strengthening our product portfolio. We are entering 2026 with a significantly stronger foundation to progress toward our growth goals and create long-term value for our shareholders this year and beyond."

² Please see the reconciliation of adjusted free cash flow, a non-GAAP measure, to operating cash flow in Exhibit 1.

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 first quarter of 2026, the Company expects revenue in the range of $650 million to $670 million and adjusted net income in the range of $133 million to $140 million, or $3.80 to $4.00 per diluted share.
• For the full year 2026, the Company expects revenue in the range of $2.70 billion to $2.76 billion and adjusted net income in the range of $607 million to $628 million, or $17.25 to $17.85 per diluted share.

The Company’s guidance is based on the following assumptions:

• U.S. retail fuel prices of $3.09 and $3.10 per gallon, respectively, for the first quarter and full year 2026 based on the applicable NYMEX futures price from the week of January 26, 2026. The full year fuel price assumption reduces 2026 revenue and adjusted EPS by approximately $47 million and $0.85 respectively compared to 2025.
• Adjusted net income tax rate of 25% for both the first quarter and full year.
• Mobility credit losses will range from 17 to 22 basis points for the first quarter and 12 to 17 basis points for the full year.
• Weighted average diluted shares outstanding of 35.1 million and 35.2 million for the first quarter and full year, respectively.

For additional information regarding our financial guidance assumptions, please see the Q4 2025 earnings supplemental materials filed with the SEC and available on our website.

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 twelve months ended December 31, 2025 and 2024; and in Exhibit 3, a table of selected other metrics for the quarter ended December 31, 2025 and the four preceding quarters. The Company is also providing segment revenue for the three and twelve months ended December 31, 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, February 5, 2026, 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 February 5 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 Thursday, February 12, 2026. 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.

Forward-Looking Statements
This earnings release contains forward-looking statements including, but not limited to, statements about management’s plans, goals, expectations, and guidance and assumptions with respect to future financial performance of the Company. Any statements in this earnings release that are not statements of historical facts are forward-looking statements. When used in this earnings release, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” “positions,” “confidence,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. Forward-looking statements relate to our future plans, objectives, expectations, and intentions and are not historical facts and accordingly involve known and unknown risks and uncertainties and other factors that may cause the actual results or performance to be materially different from future results or performance expressed or implied by these forward-looking statements. The following factors, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this earnings release and in oral statements made by our authorized officers:

• the impact of fluctuations in the amount of fuel purchased and sold by our customers and retail partners, respectively, fuel price volatility, and the actual price of fuel, including fuel spreads in the Company’s international markets, and the resulting impact on the Company’s results, including margins, revenues, and net income;
• the effects of general economic conditions and the amount of business activity in the economies in which we operate, particularly in the U.S., Europe, and the United Kingdom, including, but not limited to, conditions resulting from market volatility, an economic recession, the impact of tariffs or international trade wars, increasing unemployment, and declining consumer confidence, which may lead to, among other things, a decline or stagnation in demand for fuel, corporate payment services, travel related services, or employee benefits related products and services;
• the failure to meet the applicable requirements or commitments under Mastercard or Visa contracts and rules;
• the extent to which unpredictable events in the locations in which the Company or the Company’s customers operate or elsewhere may adversely affect the Company’s employees, ability to conduct business, results of operations and financial condition;
• the impact and size of credit losses, including fraud losses, and other adverse effects if the Company fails to adequately assess and monitor credit risk or fraudulent use of our payment cards or systems;
• the impact of changes to the Company’s credit standards;
• limitations on, or compression of, interchange fees, including as a result of regulatory changes;
• the effect of adverse financial conditions affecting the banking system;
• failure to implement new technologies and products;
• the failure to realize or sustain the expected benefits from investments in our capabilities and other initiatives;
• the failure to compete effectively in order to maintain or renew key customer and partner agreements and relationships, to maintain volumes under such agreements or to favorably differentiate ourselves from our competitors;
• the ability to attract and retain employees;
• the ability to execute the Company’s business expansion and acquisition efforts and realize the benefits of acquisitions we have completed;
• the failure to achieve commercial and financial benefits as a result of our strategic minority equity investments;
• the impact of foreign currency exchange rates on the Company’s operations, revenue and income and other risks associated with our operations outside the United States;
• the failure to adequately safeguard custodial HSA assets;
• the incurrence of impairment charges if the Company’s assessment of the fair value of certain of its reporting units or assets changes;
• the uncertainties of investigations and litigation;
• the ability of the Company to protect its intellectual property and other proprietary rights;
• the impact of actions of activist investors including costs and expenses incurred to address activism-related matters and the distraction of management from business operations in responding to those actions, including any proposals or proxy contest for the election of directors at our annual meeting of stockholders;
• the impact of market volatility, regulatory capital requirements and other regulatory requirements on the operations of WEX Bank or its ability to make payments to WEX Inc.;
• the impact of the Company’s debt instruments on the Company’s operations;
• the impact of increased leverage on the Company’s operations, results or borrowing capacity generally;
• our ability to achieve our capital allocation priorities;
• changes in interest rates, including those which we must pay for our deposits, those which we earn on our investment securities, and the resultant potential impacts to our debt securities subject to early call provisions;
• the ability to refinance certain indebtedness or obtain additional financing;
• the actions of regulatory bodies, including tax, banking and securities regulators, or possible changes in tax, banking or financial regulations impacting the Company’s industrial bank, the Company as the corporate parent or other subsidiaries or affiliates;
• the failure to comply with the Treasury Regulations applicable to non-bank custodians;
• the impact from breaches of, or other issues with, the Company’s technology systems or those of its third-party service providers and any resulting negative impact on the Company’s reputation, liabilities or relationships with customers or merchants;
• the impact of regulatory developments with respect to privacy and data protection;
• the impact of any disruption to the technology and electronic communications networks we rely on;
• the ability to adopt, implement and use artificial intelligence technologies across our business successfully and ethically;
• the ability to maintain effective systems of internal controls;
• the failure to repurchase shares at favorable prices, if at all;
• the impact of provisions in our charter documents, Delaware law and applicable banking laws that may delay or prevent our acquisition by a third party; as well as
• other risks and uncertainties identified in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 20, 2025, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the Securities and Exchange Commission on May 1, 2025 and subsequent filings with the Securities and Exchange Commission.

The forward-looking statements speak only as of the date of the initial filing of this earnings release and undue reliance should not be placed on these statements. The Company disclaims any obligation to update any forward-looking statements as a result of new information, future events, or otherwise.

³ Net debt activity includes: borrowings and repayments on revolving credit facility; borrowings and repayments on term loans; proceeds from issuance of Senior Notes; borrowings and repayments on Bank Term Funding Program (BTFP); advances from and repayments to Federal Home Loan Bank (FHLB); net change in borrowed federal funds; and net borrowings on or repayments of other debt.

News Media Contact:
WEX
Cuthbert Langley, 843-670-7490
Cuthbert.Langley@wexinc.com

Investor Contact:
WEX
Steve Elder, 207-523-7769
Steve.Elder@wexinc.com