WEX Inc 8-K, filed Oct 28, 2026
WEX Inc. (WEX)
8-K
2026-10-28
For: 2026-10-28
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Added on
October 28, 2026
About this 8-K
WEX Inc filed this 8-K on October 28, 2026.
WEX Inc. reported third-quarter revenue of $780.1 million, up 12.8%, and GAAP diluted EPS of $3.88. It raised full-year 2026 revenue guidance to $2.97 billion to $2.99 billion and adjusted net income guidance to $21.28 to $21.48 per diluted share. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Item 2.02 Results of Operations and Financial Condition.
On October 28, 2026, WEX Inc. (the “Company”) issued a news release announcing its third-quarter 2026 results and posted its earnings supplement to the investor section of the Company’s website at www.wexinc.com. A copy of the release and supplement are attached as Exhibits 99.1 and 99.2 and are incorporated by reference herein in their entirety.
The information in this item, including Exhibits 99.1 and 99.2, is being furnished, not filed. Accordingly, the information in this item will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified as being incorporated into it by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibit Index.
EXHIBIT INDEX
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
WEX INC. | ||||||||
Date: October 28, 2026 | By: | /s/ Jagtar Narula | ||||||
Jagtar Narula | ||||||||
Chief Financial Officer | ||||||||
Exhibit 99.1
WEX Inc. Reports Third Quarter 2026 Financial Results
Revenue of $780.1 million increased 12.8% compared to the prior year
GAAP net income of $3.88 per diluted share and adjusted net income of $6.13 per diluted share, an increase of 68.7% and 33.6%, respectively, compared to the prior year
GAAP operating income margin of 30.6% and adjusted operating income margin of 42.6%
Share repurchases of approximately $200 million during Q3, with an additional $75 million through October 26
Raises full year 2026 revenue guidance to $2.97 billion to $2.99 billion and adjusted net income guidance to $21.28 to $21.48 per diluted share
PORTLAND, Maine - October 28, 2026 - WEX (NYSE: WEX), a global leader in intelligent payment solutions, today reported financial results for the three months ended September 30, 2026.
“We delivered another quarter of strong revenue and adjusted EPS, expanded margins, and returned the vast majority of our adjusted free cash flow to shareholders through share repurchases,” said Melissa Smith, WEX’s Chief Executive Officer and President. “Our results reflect real progress in pricing, new business wins, and innovation across each of our segments. We’re building on that momentum by continuing to strengthen our segments, bring innovative solutions to market, and drive sustainable growth and long-term shareholder value.”
Third Quarter 2026 Financial Results
(Results are compared to the prior year period unless otherwise noted)
Total revenue for the third quarter was $780.1 million, an increase of 12.8%. The revenue increase in the quarter includes net favorable impacts of $57.3 million and $0.8 million from fuel prices and foreign exchange rates, respectively.
Net income for the third quarter of $134.1 million, or $3.88 per diluted share, increased 68.7% per diluted share. Adjusted net income was $211.9 million, or $6.13 per diluted share, up 33.6% per diluted share. Operating income margin was 30.6% compared to 26.5%. Adjusted operating income margin was 42.6% compared to 39.5%1.
Third Quarter 2026 Performance Metrics and Segment Results
(Results are compared to the prior year period unless otherwise noted)
Consolidated
•Total volume across all segments was $78.5 billion, an increase of 18.5%.
Mobility Segment
Provides payments and fleet management solutions to more than 600,000 customers globally.
•Revenue of $435.1 million increased 20.6%.
•Operating income margin of 38.7% and segment adjusted operating income margin of 46.9%1.
•Payment processing transactions of 142.3 million increased 1.7%.
Benefits Segment
Provides a broad benefits platform with integrated payments—spanning HSAs, FSAs, HRAs, COBRA, and benefits enrollment and administration—delivered directly to businesses or through our partner network.
•Revenue of $207.6 million increased 4.8%.
•Operating income margin of 28.2% and segment adjusted operating income margin of 42.2%1.
•Average number of Software-as-a-Service (SaaS) accounts of 22.1 million grew 2.8%.
•Average HSA custodial cash assets of $5.3 billion increased 11.2%.
1 See Exhibit 1 of this press release for an 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 and segment adjusted operating income margin.
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Corporate Payments Segment
Provides comprehensive and secure business-to-business (B2B) payments solutions powering mid-sized businesses and global enterprises through scalable technology.
•Revenue of $137.4 million increased 3.5%.
•Operating income margin of 41.0% and segment adjusted operating income margin of 49.9%1.
•Purchase volume of $24.6 billion grew 6.3%.
•Total volume processed, which includes volume from which WEX does not earn interchange revenue, of $47.6 billion increased 10.1%.
Balance Sheet and Cash Flow
(Results are compared to the prior year period unless otherwise noted)
•Net cash used for operating activities in the third quarter of 2026 totaled $11.2 million, compared to $376.6 million net cash provided by operating activities in the third quarter of 2025.
•Adjusted free cash flow was $234.3 million compared to $166.2 million2.
•The Company’s leverage ratio, as defined in its Credit Agreement, was 2.7x as of September 30, 2026, down from 2.9x as of June 30, 2026 and down from 3.1x as of March 31, 2026.
“Our third quarter results demonstrate the core strength of WEX’s operating model, with improving organic growth and significant underlying margin expansion, while higher fuel prices continue to contribute additional cash flow,” said Jagtar Narula, WEX’s Chief Financial Officer. “Our strong cash generation gives us significant flexibility to invest in organic growth while returning capital to shareholders. During the quarter, we repurchased approximately $200 million of shares while further reducing our leverage to 2.7x. Looking ahead, we will continue to allocate capital with discipline, prioritizing opportunities that deliver attractive returns and maximize long-term shareholder value.”
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 2026, the Company expects revenue in the range of $760 million to $780 million and adjusted net income in the range of $193 million to $200 million, or $5.67 to $5.87 per diluted share.
•For the full year 2026, the Company now expects revenue in the range of $2.97 billion to $2.99 billion and adjusted net income in the range of $736 million to $743 million, or $21.28 to $21.48 per diluted share, compared to previous guidance for revenue of $2.86 billion to $2.90 billion and adjusted net income of $689 million to $703 million, or $19.68 to $20.08 per diluted share.
The Company’s guidance is based on the following assumptions:
•U.S. retail fuel prices of $4.81 and $4.50 per gallon for the fourth quarter and full year 2026, respectively, based on the applicable NYMEX futures curve from the week of October 19, 2026. This does not include any potential future impacts from European fuel spreads.
•Adjusted net income effective tax rate of 25.0% for both the fourth quarter and full year.
•Mobility credit losses in the range of 17 to 22 basis points for the fourth quarter and 16 to 17 basis points for the full year.
•Weighted average diluted shares outstanding of 34.1 million and 34.6 million for the fourth quarter and full year, respectively. This assumption does not include any further share repurchases that have been or may be consummated beyond the approximately $260 million bought through Q3.
For additional information regarding our financial guidance assumptions, please see the Q3 2026 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.
2 Please see an explanation and reconciliation of adjusted free cash flow, a non-GAAP financial measure, to the most directly comparable GAAP financial measure, operating cash flow in Exhibit 1.
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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.
The Company utilizes 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, explanations and reconciliations of non-GAAP measures referenced in this earnings release to the most directly comparable GAAP financial measures; 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, 2026; and in Exhibit 3, a table of selected other metrics for the quarter ended September 30, 2026 and the four preceding quarters. The Company is also providing segment revenue for the three and nine months ended September 30, 2026 and 2025 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 29, 2026, at 10:00 a.m. (ET). As previously announced, the conference call will be webcast live on the Internet, and can be accessed via the Investor Relations section of the WEX website, www.wexinc.com. The live conference call may also be accessed by dialing +1 585-542-9983 or +1 833-461-5787. The conference ID number is 816489116. 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 29 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, November 5, 2026. Concurrent with this release, WEX has posted supplemental materials to the Investor Relations section of the WEX 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.
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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,” “commit,” “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, including, but not limited to, conditions resulting from market volatility, an economic recession, the impact of tariffs, international trade wars or other international conflicts, including ongoing military conflicts, supply chain disruptions, increasing unemployment, inflation, changes in interest rates and declining consumer confidence, which may lead to, among other things, a decline or stagnation or volatility 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 failure to realize the benefits of acquisitions or divestitures we have completed or may undertake;
•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;
•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;
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•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 in line with our expectations 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 or other strategic actions 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, 2025, filed with the Securities and Exchange Commission on February 13, 2026, 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.
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WEX INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Payment processing revenue | $ | 344.8 | $ | 301.7 | $ | 973.4 | $ | 858.8 | |||||||||||||||
| Account servicing revenue | 186.7 | 185.3 | 547.0 | 542.3 | |||||||||||||||||||
| Finance fee revenue | 115.9 | 83.2 | 297.9 | 239.3 | |||||||||||||||||||
| Other revenue | 132.7 | 121.5 | 389.1 | 347.6 | |||||||||||||||||||
| Total revenues | 780.1 | 691.8 | 2,207.5 | 1,987.9 | |||||||||||||||||||
| Cost of services | |||||||||||||||||||||||
| Processing costs | 167.8 | 163.1 | 493.7 | 491.9 | |||||||||||||||||||
| Service fees | 22.1 | 22.6 | 70.1 | 71.5 | |||||||||||||||||||
| Provision for credit losses | 23.2 | 20.4 | 85.5 | 57.9 | |||||||||||||||||||
| Operating interest | 33.2 | 29.2 | 89.5 | 82.0 | |||||||||||||||||||
| Depreciation and amortization | 41.1 | 39.0 | 118.3 | 113.7 | |||||||||||||||||||
| Total cost of services | 287.4 | 274.3 | 857.2 | 817.0 | |||||||||||||||||||
| General and administrative | 100.7 | 92.0 | 292.4 | 251.9 | |||||||||||||||||||
| Sales and marketing | 109.3 | 97.3 | 326.5 | 285.9 | |||||||||||||||||||
| Depreciation and amortization | 43.9 | 44.7 | 131.2 | 135.5 | |||||||||||||||||||
| Operating income | 238.8 | 183.6 | 600.1 | 497.6 | |||||||||||||||||||
| Financing interest expense, net of financial instruments | (53.2) | (63.8) | (159.0) | (181.8) | |||||||||||||||||||
| Other income (expense) | — | (0.7) | (0.7) | (2.3) | |||||||||||||||||||
| Net foreign currency (loss) gain | (0.1) | (2.6) | 4.0 | (3.3) | |||||||||||||||||||
| Income before income taxes | 185.5 | 116.4 | 444.5 | 310.2 | |||||||||||||||||||
| Income tax expense | 51.4 | 36.2 | 124.1 | 90.3 | |||||||||||||||||||
| Net income attributable to shareholders | $ | 134.1 | $ | 80.3 | $ | 320.3 | $ | 219.8 | |||||||||||||||
| Net income attributable to shareholders per share: | |||||||||||||||||||||||
| Basic | $ | 3.95 | $ | 2.34 | $ | 9.32 | $ | 6.13 | |||||||||||||||
| Diluted | $ | 3.88 | $ | 2.30 | $ | 9.20 | $ | 6.07 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 33.9 | 34.4 | 34.4 | 35.8 | |||||||||||||||||||
| Diluted | 34.6 | 34.8 | 34.8 | 36.2 | |||||||||||||||||||
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WEX INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 593.2 | $ | 905.8 | |||||||
| Restricted cash | 580.9 | 772.7 | |||||||||
| Accounts receivable | 5,342.7 | 3,362.6 | |||||||||
| Investment securities | 4,673.6 | 4,332.9 | |||||||||
| Securitized accounts receivable, restricted | 192.8 | 123.7 | |||||||||
| Prepaid expenses and other current assets | 158.7 | 215.4 | |||||||||
| Total current assets | 11,541.9 | 9,713.0 | |||||||||
| Property, equipment and capitalized software | 267.2 | 253.7 | |||||||||
| Goodwill and other intangible assets | 4,034.0 | 4,103.4 | |||||||||
| Investment securities | 102.7 | 94.2 | |||||||||
| Deferred income taxes, net | 17.4 | 16.9 | |||||||||
| Other assets | 233.7 | 218.2 | |||||||||
| Total assets | $ | 16,196.9 | $ | 14,399.5 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Accounts payable | $ | 2,046.7 | $ | 1,070.4 | |||||||
| Accrued expenses and other current liabilities | 583.4 | 695.2 | |||||||||
| Restricted cash payable | 577.5 | 771.5 | |||||||||
| Short-term deposits | 6,180.5 | 5,423.1 | |||||||||
| Short-term debt, net | 1,863.5 | 1,326.4 | |||||||||
| Total current liabilities | 11,251.6 | 9,286.6 | |||||||||
| Long-term debt, net | 3,457.6 | 3,532.0 | |||||||||
| Deferred income taxes, net | 210.9 | 187.3 | |||||||||
| Other liabilities | 124.9 | 159.1 | |||||||||
| Total liabilities | 15,044.9 | 13,165.0 | |||||||||
| Total stockholders’ equity | 1,152.1 | 1,234.5 | |||||||||
| Total liabilities and stockholders’ equity | $ | 16,196.9 | $ | 14,399.5 | |||||||
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WEX INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash (used for) provided by operating activities | $ | (419.6) | $ | 159.6 | |||||||
| Cash flows from investing activities | |||||||||||
| Purchases of property, equipment and capitalized software | (128.0) | (102.2) | |||||||||
| Purchases of equity securities and other investments | (26.8) | (11.7) | |||||||||
| Purchases of available-for-sale debt securities | (1,128.4) | (923.6) | |||||||||
| Sales and maturities of available-for-sale debt securities | 551.9 | 653.4 | |||||||||
| Acquisition of intangible assets | — | (14.5) | |||||||||
| Other investing activities | (0.4) | 4.4 | |||||||||
Net cash used for investing activities | (731.8) | (394.3) | |||||||||
| Cash flows from financing activities | |||||||||||
| Repurchases of common stock | (267.4) | (799.8) | |||||||||
| Net change in deposits | 758.1 | 697.6 | |||||||||
| Net change in restricted cash payable | (185.7) | (215.6) | |||||||||
| Payments of deferred and contingent consideration | (80.7) | (76.7) | |||||||||
| Other financing activities | (19.2) | (39.3) | |||||||||
| Net debt activity3 | 455.5 | 650.7 | |||||||||
Net cash provided by financing activities | 660.6 | 216.8 | |||||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | (13.6) | 62.3 | |||||||||
| Net change in cash, cash equivalents and restricted cash | (504.3) | 44.4 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 1,678.4 | 1,437.0 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 1,174.1 | $ | 1,481.5 | |||||||
3 Net debt activity includes: borrowings and repayments on revolving credit facility; borrowings and repayments on term loans; proceeds from issuance of Senior Notes; 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.
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| Exhibit 1 Reconciliation of Non-GAAP Measures | ||||||||||||||
| (in millions, except per share data) (unaudited) | ||||||||||||||
Reconciliation of GAAP Net Income Attributable to Shareholders to Non-GAAP Adjusted Net Income Attributable to Shareholders
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| per diluted share | per diluted share | ||||||||||||||||||||||
Net income attributable to shareholders | $ | 134.1 | $ | 3.88 | $ | 80.3 | $ | 2.30 | |||||||||||||||
Unrealized loss (gain) on financial instruments | 1.0 | 0.03 | (0.3) | (0.01) | |||||||||||||||||||
Net foreign currency loss | 0.1 | — | 2.6 | 0.07 | |||||||||||||||||||
| Change in fair value of contingent consideration | — | — | 0.7 | 0.02 | |||||||||||||||||||
| Acquisition-related intangible amortization | 45.6 | 1.32 | 47.9 | 1.38 | |||||||||||||||||||
| Other acquisition and divestiture related items | — | — | 5.0 | 0.14 | |||||||||||||||||||
| Stock-based compensation | 45.3 | 1.31 | 34.7 | 1.00 | |||||||||||||||||||
| Other costs | 2.8 | 0.08 | 3.6 | 0.10 | |||||||||||||||||||
| Debt restructuring and debt issuance cost amortization | 2.2 | 0.06 | 2.3 | 0.07 | |||||||||||||||||||
| Tax related items | (19.2) | (0.56) | (17.1) | (0.49) | |||||||||||||||||||
Adjusted net income attributable to shareholders | $ | 211.9 | $ | 6.13 | $ | 159.7 | $ | 4.59 | |||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| per diluted share | per diluted share | ||||||||||||||||||||||
Net income attributable to shareholders | $ | 320.3 | $ | 9.20 | $ | 219.8 | $ | 6.07 | |||||||||||||||
Unrealized loss (gain) on financial instruments | 1.3 | 0.04 | (0.7) | (0.02) | |||||||||||||||||||
Net foreign currency (gain) loss | (4.0) | (0.12) | 3.3 | 0.09 | |||||||||||||||||||
| Change in fair value of contingent consideration | 0.7 | 0.02 | 2.3 | 0.06 | |||||||||||||||||||
| Acquisition-related intangible amortization | 137.2 | 3.94 | 145.1 | 4.01 | |||||||||||||||||||
| Other acquisition and divestiture related items | 2.6 | 0.07 | 9.4 | 0.26 | |||||||||||||||||||
| Stock-based compensation | 112.4 | 3.23 | 80.4 | 2.22 | |||||||||||||||||||
| Other costs | 23.6 | 0.68 | 22.9 | 0.63 | |||||||||||||||||||
| Debt restructuring and debt issuance cost amortization | 6.8 | 0.20 | 6.3 | 0.17 | |||||||||||||||||||
| Tax related items | (57.1) | (1.64) | (54.4) | (1.50) | |||||||||||||||||||
Adjusted net income attributable to shareholders | $ | 543.8 | $ | 15.61 | $ | 434.3 | $ | 11.99 | |||||||||||||||
9
Reconciliation of GAAP Operating Income to Non-GAAP Total Segment Adjusted Operating Income and Adjusted Operating Income
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | (margin)4 | 2025 | (margin)4 | 2026 | (margin)4 | 2025 | (margin)4 | ||||||||||||||||||||||||||||
Operating income | $ | 238.8 | 30.6 | % | $ | 183.6 | 26.5 | % | $ | 600.1 | 27.2 | % | $ | 497.6 | 25.0 | % | |||||||||||||||||||
| Unallocated corporate expenses | 27.5 | 23.7 | 78.1 | 74.1 | |||||||||||||||||||||||||||||||
| Acquisition-related intangible amortization | 45.6 | 47.9 | 137.2 | 145.1 | |||||||||||||||||||||||||||||||
| Other acquisition and divestiture related items | — | 3.8 | 1.7 | 5.0 | |||||||||||||||||||||||||||||||
| Stock-based compensation | 45.3 | 34.7 | 112.4 | 80.4 | |||||||||||||||||||||||||||||||
| Other costs | 2.8 | 3.6 | 23.8 | 22.3 | |||||||||||||||||||||||||||||||
Total segment adjusted operating income | $ | 360.0 | 46.1 | % | $ | 297.2 | 43.0 | % | $ | 953.4 | 43.2 | % | $ | 824.4 | 41.5 | % | |||||||||||||||||||
| Unallocated corporate expenses | (27.5) | (23.7) | (78.1) | (74.1) | |||||||||||||||||||||||||||||||
Adjusted operating income | $ | 332.5 | 42.6 | % | $ | 273.5 | 39.5 | % | $ | 875.3 | 39.6 | % | $ | 750.3 | 37.7 | % | |||||||||||||||||||
The Company's non-GAAP adjusted operating income excludes acquisition-related intangible amortization, other acquisition and divestiture related items, debt restructuring costs, stock-based compensation, other costs and certain non-recurring or non-cash operating charges that are not core to our operations, as applicable depending on the period presented. Total segment adjusted operating income further excludes unallocated corporate expenses.
The Company's non-GAAP adjusted net income, which similarly excludes the impact of all items excluded in adjusted operating income, further excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, debt issuance cost amortization, tax related items, and certain other non-operating items, as applicable depending on the period presented.
Although adjusted net income, adjusted operating income, and total segment adjusted operating income are not calculated in accordance with GAAP, our management team believes these non-GAAP measures are integral to our reporting and planning processes and uses them to assess operating performance because they generally exclude financial results that are outside the normal course of our business operations or management’s control. These measures are also used to allocate resources among our operating segments.
The following items are generally excluded in determining one or more non-GAAP measures for the following reasons:
•Exclusion of the non-cash, mark-to-market adjustments on financial instruments, including interest rate swap agreements and investment securities, helps management identify and assess trends in the Company’s underlying business that might otherwise be obscured due to quarterly non-cash earnings fluctuations associated with these financial instruments. Additionally, the non-cash, mark-to-market adjustments on financial instruments are difficult to forecast accurately, making comparisons across historical and future periods difficult to evaluate;
•Net foreign currency gains and losses primarily result from the remeasurement to functional currency of cash, accounts receivable and accounts payable balances, certain intercompany transactions denominated in foreign currencies and any gain or loss on foreign currency economic hedges relating to these items. The exclusion of these items helps management compare changes in operating results between periods that might otherwise be obscured due to currency fluctuations;
•The change in fair value of contingent consideration, which is related to the acquisition of certain contractual rights to serve as custodian or sub-custodian to HSAs, is dependent upon changes in future interest rate assumptions and has no significant impact on the ongoing operations of the Company. Additionally, the non-cash, mark-to-market adjustments on financial instruments are difficult to forecast accurately, making comparisons across historical and future periods difficult to evaluate;
•The Company considers certain acquisition-related costs, including certain financing costs, investment banking fees, warranty and indemnity insurance, certain integration-related expenses and amortization of acquired intangibles, as well as gains and losses from divestitures to be unpredictable, dependent on factors that may be outside of our control and unrelated to the continuing operations of the acquired or divested business or the Company. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related costs, may not be indicative of such future costs. The Company believes that excluding acquisition-related costs and gains or losses on divestitures facilitates the comparison of our financial results to the Company’s historical operating results and to other companies in our industry;
•Stock-based compensation is different from other forms of compensation as it is a non-cash expense. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to the Company is based on a stock-based compensation valuation methodology and underlying assumptions that may vary over time;
•Other costs are not consistently occurring and do not reflect expected future operating expense, nor do they provide insight into the fundamentals of current or past operations of our business. This also includes non-recurring professional service costs including amounts incurred as part of the 2026 proxy contest, and costs related to certain identified initiatives, including restructuring and technology initiatives, to further streamline the business, improve the Company’s efficiency, create synergies
4 Margins are derived by dividing the applicable measures by total revenue for the Company.
10
and globalize the Company’s operations, all with an objective to improve scale and efficiency and increase profitability going forward.
•Impairment charges represent non-cash asset write-offs, which do not reflect recurring costs that would be relevant to the Company’s continuing operations. The Company believes that excluding these nonrecurring expenses facilitates the comparison of our financial results to the Company’s historical operating results and to other companies in its industry;
•Debt restructuring and debt issuance cost amortization are unrelated to the continuing operations of the Company. Debt restructuring costs are not consistently occurring and do not reflect expected future operating expense, nor do they provide insight into the fundamentals of current or past operations of our business. In addition, since debt issuance cost amortization is dependent upon the financing method, which can vary widely company to company, we believe that excluding these costs helps to facilitate comparison to historical results as well as to other companies within our industry;
•The tax related items are the difference between the Company’s GAAP tax provision and a non-GAAP tax provision. The Company utilizes a fixed annual projected long-term non-GAAP tax rate in order to provide better consistency across reporting periods. To determine this long-term projected tax rate, the Company performs a pro forma tax provision based upon the Company’s projected adjusted net income before taxes. The fixed annual projected long-term non-GAAP tax rate could be subject to change in future periods 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; and
•The Company does not allocate certain corporate expenses to our operating segments, as these items are centrally controlled and are not directly attributable to any reportable segment.
WEX believes that adjusted net income, adjusted operating income, and total segment adjusted operating income may be useful to investors as a means of evaluating our performance. However, because adjusted net income, adjusted operating income, and total segment adjusted operating income are non-GAAP measures, they should not be considered as a substitute for, or superior to, net income or operating income as determined in accordance with GAAP. Adjusted net income, adjusted operating income, and total segment adjusted operating income as used by WEX may not be comparable to similarly titled measures employed by other companies.
Reconciliation of GAAP Operating Cash Flow to Non-GAAP Adjusted Free Cash Flow
The following table reconciles GAAP operating cash flow to adjusted free cash flow:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (In millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Operating cash flow | $ | (11.2) | $ | 376.6 | $ | (419.6) | $ | 159.6 | ||||||||||||||||||
| Net sales and maturities (purchases) of current investment securities | 92.3 | 48.7 | (565.3) | (273.3) | ||||||||||||||||||||||
| Capital expenditures | (47.0) | (35.0) | (128.0) | (102.2) | ||||||||||||||||||||||
| Net Funding Activity5 | (360.9) | (178.1) | 1,277.9 | 693.0 | ||||||||||||||||||||||
Decrease (increase) in WEX Bank cash balances | 556.5 | (47.5) | 302.0 | (162.3) | ||||||||||||||||||||||
| Other adjustments6 | 4.8 | 1.5 | 35.9 | 61.9 | ||||||||||||||||||||||
| Adjusted free cash flow | $ | 234.3 | $ | 166.2 | $ | 502.8 | $ | 376.7 | ||||||||||||||||||
In addition to evaluating the Company’s liquidity on a GAAP basis, Company management uses adjusted free cash flow, a non-GAAP financial measure, to evaluate cash generation by adjusting for certain activities including those related to WEX Bank. For example, WEX Bank funds certain customer receivables through the issuance of deposits, short-term debt or the HSA deposits provided by our Benefits segment. WEX Bank can also elect to invest HSA deposits. Changes in deposits, short-term debt and investment activity are reflected in the calculation of adjusted free cash flow.
We view adjusted free cash flow as an important and useful measure for understanding our cash generation from ongoing operations in order to determine the amount of cash generated that is available to be used toward management’s capital allocation priorities. Adjusted free cash flow, however, is not a measure of cash available for discretionary expenditures, as WEX has certain non-discretionary obligations and cash requirements, such as debt service requirements, that are not deducted from this measure.
Adjusted free cash flow is calculated as cash flows from operating activities adjusted for the inclusion of (i) net sales and maturities or purchases of current investment securities, (ii) capital expenditures, and (iii) Net Funding Activity; the exclusion of (iv) changes in WEX Bank cash balances; and the inclusion or exclusion of (v) certain other adjustments, as applicable. These items have been included or excluded in determining adjusted free cash flow for the following reasons:
•Net sales and maturities or purchases of current investment securities relates to the investment of HSA deposits, which are obtained operationally and included within Net Funding Activity described below;
•Capital expenditures are investments in property, equipment and capitalized software required to operate the business;
•To reflect cash generated by core operations, adjusted free cash flow incorporates Net Funding Activity, which includes changes in HSA deposits invested in debt securities and changes in deposits and short-term debt used specifically as part of our accounts
5 Net Funding Activity includes changes in HSA and other deposits, net advances from the FHLB, changes in participation debt, and changes in borrowed federal funds, as applicable.
6 For the nine months ended September 30, 2026 and 2025, other adjustments are predominantly comprised of contingent consideration paid to sellers in excess of acquisition-date fair value.
11
receivable financing strategy. Because these funding activities directly support operations, incorporating them provides a view into underlying cash generation;
•WEX Bank cash, which comprises the majority of our consolidated cash balances, may be increased or decreased as a result of the timing of Net Funding Activity and regulatory capital requirements, rather than Company operating activities. Accordingly, we remove the change in WEX Bank cash balances from adjusted free cash flow, to isolate balances not readily available to WEX Inc.; and
•Management views certain other adjustments, including add-backs to operating cash flows for contingent consideration paid to sellers for acquisitions, as cash expenditures not arising from the ongoing operations of the business, and therefore excludes them from adjusted free cash flow.
Given adjusted free cash flow is a non-GAAP measure, it should not be considered as a substitute for, or superior to, operating cash flow as determined in accordance with GAAP. In addition, adjusted free cash flow as used by WEX may not be comparable to similarly titled measures employed by other companies.
12
Exhibit 2 Impact of Certain Macro Factors on Reported Revenue and Adjusted Net Income Attributable to Shareholders (in millions) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
The tables below show the impact of certain macro factors on reported revenue:
| Segment Revenue Results | |||||||||||||||||||||||||||||||||||||||||||||||
| Mobility | Benefits | Corporate Payments | Total WEX Inc. | ||||||||||||||||||||||||||||||||||||||||||||
| Three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Reported revenue | $ | 435.1 | $ | 360.8 | $ | 207.6 | $ | 198.1 | $ | 137.4 | $ | 132.8 | $ | 780.1 | $ | 691.8 | |||||||||||||||||||||||||||||||
FX impact (favorable) / unfavorable | $ | (0.9) | $ | — | $ | 0.2 | $ | (0.8) | |||||||||||||||||||||||||||||||||||||||
| PPG impact (favorable) / unfavorable | $ | (57.3) | $ | — | $ | — | $ | (57.3) | |||||||||||||||||||||||||||||||||||||||
| Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Reported revenue | $ | 1,202.1 | $ | 1,040.8 | $ | 629.8 | $ | 592.5 | $ | 375.6 | $ | 354.5 | $ | 2,207.5 | $ | 1,987.9 | |||||||||||||||||||||||||||||||
| FX impact (favorable) / unfavorable | $ | (5.6) | $ | — | $ | (2.4) | $ | (8.0) | |||||||||||||||||||||||||||||||||||||||
| PPG impact (favorable) / unfavorable | $ | (119.0) | $ | — | $ | — | $ | (119.0) | |||||||||||||||||||||||||||||||||||||||
To determine the impact of foreign exchange translation (“FX”) on revenue, revenue from entities whose functional currency is not denominated in U.S. dollars, as well as revenue from purchase volume transacted in non-U.S. denominated currencies, were translated using the weighted average exchange rates for the same period in the prior year, exclusive of revenue derived from acquisitions for one year following the acquisition dates.
To determine the impact of price per gallon of fuel (“PPG”) on revenue, revenue subject to changes in fuel prices was calculated based on the average retail price of fuel for the same period in the prior year for the portion of our business that earns revenue based on a percentage of fuel spend, exclusive of revenue derived from acquisitions for one year following the acquisition dates. For the portions of our business that earn revenue based on margin spreads, revenue was calculated utilizing the comparable margin from the prior year.
The table below shows the impact of certain macro factors on adjusted net income by segment:
Segment Estimated Adjusted Net Income Attributable to Shareholders Impact | |||||||||||||||||||||||||||||||||||||||||||||||
| Mobility | Benefits | Corporate Payments | |||||||||||||||||||||||||||||||||||||||||||||
| Three months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||
FX impact (favorable) / unfavorable | $ | (0.5) | $ | — | $ | — | $ | — | $ | 0.4 | $ | — | |||||||||||||||||||||||||||||||||||
| PPG impact (favorable) / unfavorable | $ | (30.5) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
| Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||
| FX impact (favorable) / unfavorable | $ | (0.8) | $ | — | $ | 0.2 | $ | — | $ | 0.1 | $ | — | |||||||||||||||||||||||||||||||||||
| PPG impact (favorable) / unfavorable | $ | (63.6) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
To determine the estimated earnings impact of FX on revenue and expenses from entities whose functional currency is not denominated in U.S. dollars, as well as revenue and variable expenses from purchase volume transacted in non-U.S. denominated currencies, amounts were translated using the weighted average exchange rates for the same period in the prior year, net of tax, exclusive of revenue and expenses derived from acquisitions for one year following the acquisition dates.
To determine the estimated earnings impact of PPG, revenue and certain variable expenses impacted by changes in fuel prices were adjusted based on the average retail price of fuel for the same period in the prior year for the portion of our business that earns revenue based on a percentage of fuel spend, net of applicable taxes, exclusive of revenue and expenses derived from acquisitions for one year following the acquisition dates. For the portions of our business that earn revenue based on margin spreads, revenue was adjusted to the comparable margin from the prior year, net of applicable taxes.
13
Exhibit 3 Selected Other Metrics (in millions, except rate statistics) (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mobility: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment processing transactions (1) | 142.3 | 139.3 | 130.4 | 132.5 | 140.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment processing gallons of fuel (2) | 3,631.2 | 3,595.9 | 3,428.3 | 3,496.5 | 3,639.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average US fuel price (US$ / gallon) | $ | 4.85 | $ | 4.70 | $ | 3.60 | $ | 3.29 | $ | 3.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment processing $ of fuel (3) | $ | 18,010.6 | $ | 17,190.9 | $ | 12,706.8 | $ | 11,859.4 | $ | 12,641.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net payment processing rate (4) | 1.14 | % | 1.23 | % | 1.23 | % | 1.33 | % | 1.33 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payment processing revenue | $ | 205.4 | $ | 210.8 | $ | 156.8 | $ | 157.8 | $ | 168.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net late fee rate (5) | 0.53 | % | 0.48 | % | 0.50 | % | 0.56 | % | 0.53 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Late fee revenue (6) | $ | 95.0 | $ | 82.6 | $ | 64.2 | $ | 66.7 | $ | 67.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Benefits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average number of SaaS accounts (7) | 22.1 | 21.7 | 22.4 | 21.6 | 21.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume (8) | $ | 1,920.1 | $ | 2,187.5 | $ | 2,496.7 | $ | 1,732.5 | $ | 1,770.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average HSA custodial cash assets | $ | 5,349.2 | $ | 5,227.2 | $ | 5,154.2 | $ | 4,873.8 | $ | 4,808.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Payments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume (9) | $ | 24,644.3 | $ | 19,761.7 | $ | 17,908.4 | $ | 19,341.8 | $ | 23,176.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interchange rate (10) | 0.46 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.47 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payment solutions processing revenue | $ | 113.6 | $ | 104.1 | $ | 94.4 | $ | 102.8 | $ | 109.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Definitions and explanations:
(1) Payment processing transactions represents the total number of purchases made by fleets that have a payment processing relationship with WEX where WEX maintains the receivable for the total purchase.
(2) Payment processing gallons of fuel represents the total number of gallons of fuel purchased by fleets that have a payment processing relationship with WEX.
(3) Payment processing dollars of fuel represents the total dollar value of the fuel purchased by fleets that have a payment processing relationship with WEX.
(4) Net payment processing rate represents the percentage of each payment processing $ of fuel that WEX records as revenue from merchants, less certain discounts given to customers and network fees.
(5) Net late fee rate represents late fee revenue as a percentage of fuel purchased by fleets that have a payment processing relationship with WEX.
(6) Late fee revenue represents fees charged for payments not made within the terms of the customer agreement based upon the outstanding customer receivable balance.
(7) Average number of SaaS accounts represents the average number of active consumer-directed health, COBRA, and billing accounts on our SaaS platforms. HSA accounts for which WEX Inc. serves as the non-bank custodian under designation by the U.S. Department of Treasury are included in this average.
(8) Purchase volume represents the total dollar value of all transactions where interchange is earned by WEX.
(9) Purchase volume represents the total dollar value of all WEX issued transactions that use WEX corporate card products and virtual card products.
(10) Net interchange rate represents the percentage of the dollar value of each payment processing transaction that WEX records as revenue from merchants, less certain discounts given to customers and network fees.
14
Exhibit 4 Segment Revenue Information (in millions) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended September 30, | Increase (decrease) | Nine months ended September 30, | Increase (decrease) | ||||||||||||||||||||||||||||||||||||||||||||
| Mobility | 2026 | 2025 | Amount | Percent | 2026 | 2025 | Amount | Percent | |||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
| Payment processing revenue | $ | 205.4 | $ | 168.2 | $ | 37.2 | 22.1 | % | $ | 573.0 | $ | 484.9 | $ | 88.1 | 18.2 | % | |||||||||||||||||||||||||||||||
| Account servicing revenue | 57.1 | 53.7 | 3.4 | 6.3 | % | 164.2 | 155.6 | 8.6 | 5.5 | % | |||||||||||||||||||||||||||||||||||||
| Finance fee revenue | 115.7 | 82.9 | 32.8 | 39.5 | % | 297.1 | 238.1 | 58.9 | 24.7 | % | |||||||||||||||||||||||||||||||||||||
| Other revenue | 56.9 | 56.0 | 0.9 | 1.6 | % | 167.9 | 162.2 | 5.7 | 3.5 | % | |||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 435.1 | $ | 360.8 | $ | 74.2 | 20.6 | % | $ | 1,202.1 | $ | 1,040.8 | $ | 161.3 | 15.5 | % | |||||||||||||||||||||||||||||||
| Three months ended September 30, | Increase (decrease) | Nine months ended September 30, | Increase (decrease) | ||||||||||||||||||||||||||||||||||||||||||||
| Benefits | 2026 | 2025 | Amount | Percent | 2026 | 2025 | Amount | Percent | |||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
| Payment processing revenue | $ | 25.8 | $ | 23.8 | $ | 2.0 | 8.5 | % | $ | 88.3 | $ | 80.8 | $ | 7.6 | 9.3 | % | |||||||||||||||||||||||||||||||
| Account servicing revenue | 110.2 | 113.3 | (3.1) | (2.7) | % | 332.1 | 339.7 | (7.6) | (2.2) | % | |||||||||||||||||||||||||||||||||||||
| Finance fee revenue | 0.1 | — | — | NM | 0.2 | 0.1 | 0.1 | NM | |||||||||||||||||||||||||||||||||||||||
| Other revenue | 71.5 | 61.0 | 10.5 | 17.3 | % | 209.2 | 172.0 | 37.2 | 21.6 | % | |||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 207.6 | $ | 198.1 | $ | 9.5 | 4.8 | % | $ | 629.8 | $ | 592.5 | $ | 37.2 | 6.3 | % | |||||||||||||||||||||||||||||||
| Three months ended September 30, | Increase (decrease) | Nine months ended September 30, | Increase (decrease) | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate Payments | 2026 | 2025 | Amount | Percent | 2026 | 2025 | Amount | Percent | |||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
| Payment processing revenue | $ | 113.6 | $ | 109.7 | $ | 3.9 | 3.5 | % | $ | 312.1 | $ | 293.1 | $ | 19.0 | 6.5 | % | |||||||||||||||||||||||||||||||
| Account servicing revenue | 19.4 | 18.3 | 1.1 | 5.9 | % | 50.8 | 47.0 | 3.7 | 7.9 | % | |||||||||||||||||||||||||||||||||||||
| Finance fee revenue | 0.1 | 0.3 | (0.1) | NM | 0.7 | 1.0 | (0.3) | NM | |||||||||||||||||||||||||||||||||||||||
| Other revenue | 4.3 | 4.5 | (0.2) | (5.1) | % | 12.0 | 13.4 | (1.4) | (10.2) | % | |||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 137.4 | $ | 132.8 | $ | 4.6 | 3.5 | % | $ | 375.6 | $ | 354.5 | $ | 21.1 | 5.9 | % | |||||||||||||||||||||||||||||||
NM - Not meaningful
15
Exhibit 5 Segment Adjusted Operating Income and Adjusted Operating Income Margin Information (in millions) (unaudited) | |||||||||||||||||||||||
Segment Adjusted Operating Income | Segment Adjusted Operating Income Margin7 | ||||||||||||||||||||||
| Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Mobility | $ | 203.9 | $ | 146.7 | 46.9 | % | 40.7 | % | |||||||||||||||
| Benefits | 87.5 | 86.7 | 42.2 | % | 43.8 | % | |||||||||||||||||
| Corporate Payments | 68.5 | 63.8 | 49.9 | % | 48.0 | % | |||||||||||||||||
Total segment adjusted operating income | $ | 360.0 | $ | 297.2 | 46.1 | % | 43.0 | % | |||||||||||||||
Segment Adjusted Operating Income | Segment Adjusted Operating Income Margin7 | ||||||||||||||||||||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Mobility | $ | 511.1 | $ | 412.2 | 42.5 | % | 39.6 | % | |||||||||||||||
| Benefits | 271.2 | 258.5 | 43.1 | % | 43.6 | % | |||||||||||||||||
| Corporate Payments | 171.1 | 153.7 | 45.6 | % | 43.4 | % | |||||||||||||||||
Total segment adjusted operating income | $ | 953.4 | $ | 824.4 | 43.2 | % | 41.5 | % | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Adjusted operating income | $ | 332.5 | $ | 273.5 | $ | 875.3 | $ | 750.3 | |||||||||||||||
Adjusted operating income margin8 | 42.6 | % | 39.5 | % | 39.6 | % | 37.7 | % | |||||||||||||||
News Media Contact:
WEX
Cuthbert Langley, 843-670-7490
press@wexinc.com
Investor Contact:
WEX
Pedro Alvarez, 207-523-7769
Pedro.Alvarez@wexinc.com
WEX
Pedro Alvarez, 207-523-7769
Pedro.Alvarez@wexinc.com
7 Segment adjusted operating income margin is derived by dividing segment adjusted operating income by the revenue of the corresponding segment (or the entire Company in the case of total segment adjusted operating income). See Exhibit 1 for a reconciliation of GAAP operating income and related margin to total segment adjusted operating income and related margin.
8 Adjusted operating income margin is derived by dividing adjusted operating income by total revenues of the entire Company as shown on the Condensed Consolidated Statement of Operations. See Exhibit 1 for a reconciliation of GAAP operating income and related margin to adjusted operating income and related margin.
16
Exhibit 99.2 _
__.
__.Forward-Looking Statements
These earnings supplemental materials contain 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 these supplemental materials that are not statements of historical facts are forward-looking statements. When used in these supplemental materials, the words “anticipate,” “believe,” "commit," “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 these supplemental materials 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, including, but not limited to, conditions resulting from market volatility, an economic recession, the impact of tariffs, international trade wars or other international conflicts, including ongoing military conflicts, supply chain disruptions, increasing unemployment, inflation, changes in interest rates and declining consumer confidence, which may lead to, among other things, a decline or stagnation or volatility 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 failure to realize the benefits of acquisitions or divestitures we have completed or may undertake;
•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.;
1
•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;
•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 in line with our expectations 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 or other strategic actions 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, 2025, filed with the Securities and Exchange Commission on February 13, 2026, and subsequent filings with the SEC.
The forward-looking statements speak only as of the date of the initial filing of these earnings supplemental materials 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.
Non-GAAP Information:
For additional important information and disclosure regarding our use of non-GAAP metrics, specifically, adjusted net income, adjusted net income per diluted share, total segment adjusted operating income and margin, adjusted operating income and margin, and adjusted free cash flow, please see our most recent earnings release issued on October 28, 2026. In addition, see Exhibit 1 to this earnings supplement for an explanation and reconciliation of (i) GAAP net income to non-GAAP adjusted net income, (ii) GAAP net income per diluted share to non-GAAP adjusted net income per diluted share, (iii) GAAP operating income to non-GAAP total segment adjusted operating income and adjusted operating income, and (iv) GAAP operating cash flow to non-GAAP adjusted free cash flow.
Note:
The Company rounds amounts to millions within tables and text (unless otherwise specified), and calculates all percentages and per-share data from underlying whole-dollar amounts. As a result, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Within the tables below, we present the impact of FX and PPG changes on various financial metrics. To determine the estimated earnings impact of FX on revenue and expenses from entities whose functional currency is not denominated in U.S. dollars, as well as revenue and variable expenses from purchase volume transacted in non-U.S. denominated currencies, amounts were translated using the weighted average exchange rates for the same period in the prior year, net of tax, exclusive of revenue and expenses derived from acquisitions for one year following the acquisition dates. To determine the estimated earnings impact of PPG, revenue and certain variable expenses impacted by changes in fuel prices were adjusted based on the average retail price of fuel for the same period in the prior year for the portion of our business that earns revenue based on a percentage of fuel spend, net of applicable taxes, exclusive of revenue and expenses derived from acquisitions for one year following the acquisition dates. For the portions of our business that earn revenue based on margin spreads, revenue was adjusted to the comparable margin from the prior year, net of non-controlling interests and applicable taxes.
2
Financial Results
•Total revenue for Q3 2026 increased $88.3 million, or 12.8%, compared to Q3 2025, including a net $57.3 million favorable impact from fuel prices and a $0.8 million favorable impact from foreign exchange rates. Q3 net income was $3.88 per diluted share, an increase of 68.7% compared to the prior year. Q3 adjusted net income was $6.13 per diluted share, an increase of 33.6% compared to the prior year.
•Q3 2026 results were better than previous guidance, due to higher-than-anticipated fuel prices and underlying organic growth. Fuel prices trended higher than the guidance assumption, which increased revenue and ANI per diluted share above the guidance range. Excluding the impact of fuel prices and FX noted in the table below, revenue growth was 4.4% during the quarter compared with the prior year, while adjusted earnings per share grew 14.3% on the same basis.
| (Unaudited) | For the three months ended | For the twelve months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions except per share amounts) | 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | 12/31/24 | 12/31/25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 665.5 | $ | 636.5 | $ | 636.6 | $ | 659.6 | $ | 691.8 | $ | 672.9 | $ | 673.8 | $ | 753.5 | $ | 780.1 | $ | 2,628.1 | $ | 2,660.8 | ||||||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 2.2 | % | (4.0) | % | (2.5) | % | (2.1) | % | 3.9 | % | 5.7 | % | 5.8 | % | 14.2 | % | 12.8 | % | 3.1 | % | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| FX Impact vs Prior Year1 | $ | (2.2) | $ | 1.3 | $ | 2.5 | $ | (1.9) | $ | (2.7) | $ | (4.2) | $ | (5.1) | $ | (2.1) | $ | (0.8) | $ | (0.8) | $ | (6.2) | ||||||||||||||||||||||||||||||||||||||||||||||
PPG Impact vs Prior Year1 | $ | 21.2 | $ | 26.6 | $ | 8.5 | $ | 15.9 | $ | 6.0 | $ | (3.3) | $ | 2.1 | $ | (63.8) | $ | (57.3) | $ | 73.8 | $ | 27.0 | ||||||||||||||||||||||||||||||||||||||||||||||
| PPG and FX % Impact on Revenue vs Prior Year | (2.9) | % | (4.2) | % | (1.7) | % | (2.1) | % | (0.5) | % | 1.2 | % | 0.4 | % | 10.0 | % | 8.4 | % | (2.9) | % | (0.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
GAAP Net Income per Diluted Share2 | $ | 2.52 | $ | 1.60 | $ | 1.81 | $ | 1.98 | $ | 2.30 | $ | 2.41 | $ | 2.22 | $ | 3.11 | $ | 3.88 | $ | 7.50 | $ | 8.47 | ||||||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change3 | NM | (19.2) | % | 16.8 | % | 8.2 | % | (8.7) | % | 50.6 | % | 22.7 | % | 57.1 | % | 68.7 | % | 21.8 | % | 12.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||
ANI per Diluted Share2 | $ | 4.35 | $ | 3.57 | $ | 3.51 | $ | 3.95 | $ | 4.59 | $ | 4.11 | $ | 4.15 | $ | 5.35 | $ | 6.13 | $ | 15.28 | $ | 16.10 | ||||||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 7.4 | % | (6.5) | % | 1.4 | % | 1.0 | % | 5.5 | % | 15.1 | % | 18.2 | % | 35.4 | % | 33.6 | % | 3.2 | % | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
FX Impact per Share vs Prior Year1 | $ | (0.05) | $ | 0.01 | $ | — | $ | (0.03) | $ | (0.03) | $ | (0.04) | $ | (0.02) | $ | 0.01 | $ | — | $ | (0.04) | $ | (0.11) | ||||||||||||||||||||||||||||||||||||||||||||||
PPG Impact per Share vs Prior Year1 | $ | 0.33 | $ | 0.44 | $ | 0.13 | $ | 0.29 | $ | 0.11 | $ | (0.07) | $ | 0.06 | $ | (1.01) | $ | (0.88) | $ | 1.19 | $ | 0.46 | ||||||||||||||||||||||||||||||||||||||||||||||
| PPG and FX % Impact on ANI per Diluted Share vs Prior Year | (6.9) | % | (11.8) | % | (3.7) | % | (6.7) | % | (1.6) | % | 3.1 | % | (1.2) | % | 25.4 | % | 19.3 | % | (7.8) | % | (2.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||
(1) Favorable impacts are shown in these tables as negatives, while unfavorable impacts are shown as positive figures.
(2) Diluted earnings per share includes the assumed exercise of dilutive options, the assumed issuance of unvested RSUs, performance-based awards for which the performance condition has been met as of the date of determination, and contingently issuable shares that would be issuable if the end of the reporting period was the end of the contingency period, using the treasury stock method unless the effect is anti-dilutive.
(3) Changes are marked "NM" where GAAP net income per diluted share volatility limits meaningful comparison.
3
The following table summarizes our financial results by segment for the most recent quarter and for the twelve months ended December 31, 2025, in millions:
| (Unaudited) | For the three months ended 9/30/26 | For the twelve months ended 12/31/25 | |||||||||||||||||||||||||||
| Mobility | Benefits | Corporate Payments | Total | Mobility | Benefits | Corporate Payments | Total | ||||||||||||||||||||||
| Revenues | $ | 435.1 | $ | 207.6 | $ | 137.4 | $ | 780.1 | $ | 1,386.0 | $ | 797.4 | $ | 477.4 | $ | 2,660.8 | |||||||||||||
| Segment Revenue % of Total | 55.8 | % | 26.6 | % | 17.6 | % | 52.1 | % | 30.0 | % | 17.9 | % | |||||||||||||||||
| Y/Y Change | 20.6 | % | 4.8 | % | 3.5 | % | 12.8 | % | (1.1) | % | 7.8% | (2.1) | % | 1.2% | |||||||||||||||
| GAAP Operating Income | $ | 168.4 | $ | 58.6 | $ | 56.4 | $ | 238.8 | $ | 400.4 | $ | 225.8 | $ | 166.0 | $ | 663.9 | |||||||||||||
| GAAP Operating Income Margin | 38.7 | % | 28.2 | % | 41.0 | % | 30.6 | % | 28.9 | % | 28.3 | % | 34.8 | % | 25.0 | % | |||||||||||||
| Adjusted Operating Income * | $ | 203.9 | $ | 87.5 | $ | 68.5 | $ | 332.5 | $ | 541.1 | $ | 341.6 | $ | 213.3 | $ | 997.5 | |||||||||||||
| Adjusted Operating Income Margin * | 46.9 | % | 42.2 | % | 49.9 | % | 42.6 | % | 39.0 | % | 42.8 | % | 44.7 | % | 37.5 | % | |||||||||||||
* Amounts presented within the Mobility, Benefits, and Corporate Payments columns represent Segment Adjusted Operating Income or Segment Adjusted Operating Income Margin, as applicable, while amounts presented within the Total columns represent Adjusted Operating Income or Adjusted Operating Income Margin, as applicable, for the consolidated entity. For related definitions, see Acronyms and Abbreviations later in this supplement.
4
 | Mobility Segment | ||||
Within our Mobility segment, operating through North American, Over-the-Road, and International business units, WEX is a leader in payments and fleet management solutions. We serve diverse fleet needs globally, from Over-the-Road to locally operated fleets. Our proprietary closed-loop payments network in the U.S. covers approximately 95% of fueling locations and offers broad acceptance at EV charging locations. Our differentiated network offers enhanced data capture, custom controls, and tailored economics between fleets and merchants, creating customer value. Beyond fuel cards, our portfolio includes SaaS solutions for field service management, telematics, reporting and analytics, cash flow management, and mixed-energy fleets. Powered by payment intelligence and workflow optimization, these solutions deliver transformative value to operators, fleet managers, and business managers. Our solutions simplify our customers' businesses by optimizing costs, streamlining operations, and improving driver and fleet manager satisfaction while advancing sustainability and driving business growth.
Revenue in this segment is derived primarily from payment processing, based on transaction volume or fixed fees, as well as account servicing fees, finance charges, and other ancillary services.
•Mobility segment revenue for the quarter increased 20.6% compared to the same prior-year period. Organic growth, excluding fuel prices and foreign exchange rates, accelerated sequentially in the third quarter and was 4.4% compared to the same prior-year period.
•Compared to the same prior-year period, revenue increased 16.1% due to higher fuel prices and exchange rates. Revenue increased by approximately $57.3 million from the $1.47 increase in U.S. fuel prices and $0.9 million from foreign exchange rates.
•The average domestic fuel price for the period of $4.85 was 95 cents higher than our prior guidance, increasing revenue by approximately $35 million relative to the midpoint of our Q2 guidance.
•The net payment processing rate for the quarter was 1.14%, a decrease of 9 basis points sequentially, primarily from the impact of fuel prices.
•The net late fee rate for the quarter remained flat year-over-year, while finance fee revenue increased 39.5% to $115.7 million.
•Credit losses for the quarter increased by $6.0 million versus the same prior-year period, coming in at 11.7 basis points of spend volume, which was within our guidance range of 8-13 basis points and compares to 12.1 basis points for the same prior-year period.
•Segment operating income margin for the quarter was 38.7%, compared to 30.9% in the same prior-year period. The segment adjusted operating income margin for the quarter was 46.9%, up approximately 620 basis points compared to the same prior-year period. This increase was driven by the impact of higher fuel prices and organic revenue growth.
5
The following table reflects segment results and select other metrics within Mobility. All amounts are in millions, except for average U.S. fuel price:
| (Unaudited) | For the three months ended | For the twelve months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | 12/31/24 | 12/31/25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Revenues | $ | 357.2 | $ | 345.2 | $ | 333.8 | $ | 346.2 | $ | 360.8 | $ | 345.1 | $ | 344.6 | $ | 422.4 | $ | 435.1 | $ | 1,400.8 | $ | 1,386.0 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 2.0 | % | (1.4) | % | (1.5) | % | (3.7) | % | 1.0 | % | — | % | 3.2 | % | 22.0 | % | 20.6 | % | 1.3 | % | (1.1) | % | |||||||||||||||||||||||||||||||||||||||||||
| FX Impact4 | $ | (0.5) | $ | 0.1 | $ | 1.3 | $ | (0.8) | $ | (0.9) | $ | (1.5) | $ | (2.8) | $ | (1.8) | $ | (0.9) | $ | — | $ | (1.9) | |||||||||||||||||||||||||||||||||||||||||||
PPG Impact4 | $ | 21.2 | $ | 26.6 | $ | 8.5 | $ | 15.9 | $ | 6.0 | $ | (3.3) | $ | 2.1 | $ | (63.8) | $ | (57.3) | $ | 73.8 | $ | 27.0 | |||||||||||||||||||||||||||||||||||||||||||
| PPG and FX % Impact on Revenue | (5.9) | % | (7.6) | % | (2.9) | % | (4.2) | % | (1.4) | % | 1.4 | % | 0.2 | % | 19.0 | % | 16.1 | % | (5.3) | % | (1.8) | % | |||||||||||||||||||||||||||||||||||||||||||
| Operating Income (GAAP) | $ | 136.5 | $ | 114.1 | $ | 99.4 | $ | 101.1 | $ | 111.5 | $ | 88.4 | $ | 89.7 | $ | 147.5 | $ | 168.4 | $ | 469.1 | $ | 400.4 | |||||||||||||||||||||||||||||||||||||||||||
| Operating Income (GAAP) Margin | 38.2 | % | 33.1 | % | 29.8 | % | 29.2 | % | 30.9 | % | 25.6 | % | 26.0 | % | 34.9 | % | 38.7 | % | 33.5 | % | 28.9 | % | |||||||||||||||||||||||||||||||||||||||||||
| Segment Adjusted Operating Income | $ | 167.1 | $ | 146.1 | $ | 131.4 | $ | 134.0 | $ | 146.7 | $ | 128.9 | $ | 124.5 | $ | 182.7 | $ | 203.9 | $ | 598.5 | $ | 541.1 | |||||||||||||||||||||||||||||||||||||||||||
| Segment Adjusted Operating Income Margin5 | 46.8 | % | 42.3 | % | 39.4 | % | 38.7 | % | 40.7 | % | 37.3 | % | 36.1 | % | 43.2 | % | 46.9 | % | 42.7 | % | 39.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Select Other Metrics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Volume | $ | 20,137 | $ | 18,610 | $ | 18,751 | $ | 18,833 | $ | 19,684 | $ | 18,637 | $ | 19,891 | $ | 26,700 | $ | 27,717 | $ | 79,539 | $ | 75,905 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | (9.4) | % | (11.6) | % | (6.0) | % | (9.7) | % | (2.3) | % | 0.1 | % | 6.1 | % | 41.8 | % | 40.8 | % | (6.1) | % | (4.6) | % | |||||||||||||||||||||||||||||||||||||||||||
| Payment Processing Transactions | 146.5 | 138.5 | 134.5 | 139.2 | 140.0 | 132.5 | 130.4 | 139.3 | 142.3 | 566.8 | 546.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 1.3 | % | 0.3 | % | (1.8) | % | (3.9) | % | (4.5) | % | (4.3) | % | (3.0) | % | 0.1 | % | 1.7 | % | 0.7 | % | (3.6) | % | |||||||||||||||||||||||||||||||||||||||||||
| Payment Processing $ of Fuel | $ | 13,227 | $ | 12,003 | $ | 12,018 | $ | 12,216 | $ | 12,641 | $ | 11,859 | $ | 12,707 | $ | 17,191 | $ | 18,011 | $ | 52,021 | $ | 48,735 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | (11.5) | % | (13.1) | % | (8.0) | % | (11.0) | % | (4.4) | % | (1.2) | % | 5.7 | % | 40.7 | % | 42.5 | % | (8.2) | % | (6.3) | % | |||||||||||||||||||||||||||||||||||||||||||
| Average U.S. Fuel Price | $ | 3.45 | $ | 3.25 | $ | 3.32 | $ | 3.28 | $ | 3.38 | $ | 3.29 | $ | 3.60 | $ | 4.70 | $ | 4.85 | $ | 3.47 | $ | 3.32 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | (13.1) | % | (13.6) | % | (6.7) | % | (9.5) | % | (2.1) | % | 1.1 | % | 8.4 | % | 43.3 | % | 43.4 | % | (9.2) | % | (4.4) | % | |||||||||||||||||||||||||||||||||||||||||||
| Payment Processing Gallons | 3,731 | 3,601 | 3,528 | 3,625 | 3,640 | 3,497 | 3,428 | 3,596 | 3,631 | 14,593 | 14,289 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 1.2 | % | 0.6 | % | (1.1) | % | (1.9) | % | (2.4) | % | (2.9) | % | (2.8) | % | (0.8) | % | (0.2) | % | 0.6 | % | (2.1) | % | |||||||||||||||||||||||||||||||||||||||||||
| Net Payment Processing Rate | 1.38 | % | 1.36 | % | 1.30 | % | 1.31 | % | 1.33 | % | 1.33 | % | 1.23 | % | 1.23 | % | 1.14 | % | 1.34 | % | 1.32 | % | |||||||||||||||||||||||||||||||||||||||||||
| Late Fee Revenue | $59.0 | $68.4 | $63.7 | $65.9 | $67.2 | $66.7 | $64.2 | $82.6 | $95.0 | $255.1 | $263.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | (11.1) | % | (0.9) | % | 5.5 | % | (2.0) | % | 13.9 | % | (2.5) | % | 0.7 | % | 25.3 | % | 41.5 | % | (6.1) | % | 3.3 | % | |||||||||||||||||||||||||||||||||||||||||||
| Net Late Fee Rate | 0.45 | % | 0.57 | % | 0.53 | % | 0.54 | % | 0.53 | % | 0.56 | % | 0.50 | % | 0.48 | % | 0.53 | % | 0.49 | % | 0.54 | % | |||||||||||||||||||||||||||||||||||||||||||
| Credit Losses, in Basis Points | 6 | 11 | 12 | 14 | 12 | 15 | 19 | 16 | 12 | 12 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) Favorable impacts are shown in these tables as negatives, while unfavorable impacts are shown as positive figures.
(5) Segment adjusted operating income margin is derived by dividing segment adjusted operating income by the revenue of the corresponding segment.
6
 | Benefits Segment | ||||
WEX's Benefits segment provides a broad benefits platform with integrated payments—spanning Health Savings Accounts, Flexible Spending Accounts, Health Reimbursement Arrangements, COBRA, and benefits enrollment and administration — delivered directly to businesses or through our partner network. These solutions empower administrators, employers, and participants to make optimal benefits decisions. Our platform's flexibility supports multiple plan types and customizable designs, adapting to market changes. Our solutions streamline processes, reduce costs, and empower employees with greater choice and control. WEX combines healthcare expertise with payment intelligence and workflow optimization to deliver secure, customer-centric solutions. This simplifies daily administration, provides personalized tools, and offers proactive support, ultimately driving better business outcomes through healthier, more engaged employees.
Revenue in this segment is derived from per-participant fees, HSA deposit interest, and debit card interchange. Our business experiences annual seasonality, with Q1 peaking for new account sign-ups and transactions. WEX Inc. also serves as an IRS-designated non-bank custodian, while WEX Bank provides HSA depository services.
•Benefits segment revenue for the quarter was $207.6 million, an increase of 4.8% compared to the same prior-year period.
•Average SaaS accounts for the quarter increased 2.8% year-over-year to 22.1 million. HSA account growth specifically was 7.7% compared to the same prior-year period.
•Purchase volume for the quarter increased by 8.4% compared to the same prior-year period.
•Account servicing revenue for the quarter was $110.2 million, a decrease of 2.7% versus last year. The decrease was due to the transfer of HSA deposits held by third-party depository banks to WEX Bank, which typically earns higher yields. As a result, revenues on these deposits shifted from Account Servicing Revenue into Other Revenue.
•Average custodial cash assets for the quarter totaled $5.3 billion, an increase of 11.2% compared to the same prior-year period, and generated $66.4 million in revenue—up from $61.7 million last year—earned at WEX Bank and third-party banks. The interest yield earned on these investments decreased 16 basis points year-over-year to 4.97% due to the decline in interest rates.
•Segment operating income margin for the quarter was 28.2%, compared to 28.7% in the same prior-year period. The segment adjusted operating income margin for the quarter was 42.2%, down approximately 160 basis points compared to the same prior-year period, reflecting higher depreciation expense against a seasonally softer revenue base.
7
The following table reflects segment results and select other metrics within Benefits. All amounts are in millions:
| (Unaudited) | For the three months ended | For the twelve months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | 12/31/24 | 12/31/25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Revenues | $ | 181.5 | $ | 186.9 | $199.3 | $195.1 | $198.1 | $204.9 | $216.2 | $206.0 | $207.6 | $ | 739.5 | $ | 797.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 9.3 | % | 4.9 | % | 4.2 | % | 8.5 | % | 9.2 | % | 9.6 | % | 8.5 | % | 5.6 | % | 4.8 | % | 10.6 | % | 7.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| Operating Income (GAAP) | $ | 45.2 | $ | 48.8 | $ | 56.5 | $ | 53.5 | $ | 56.9 | $ | 58.9 | $ | 72.4 | $ | 55.8 | $ | 58.6 | $ | 173.3 | $ | 225.8 | |||||||||||||||||||||||||||||||||||||||||||
| Operating Income (GAAP) Margin | 24.9 | % | 26.1 | % | 28.3 | % | 27.4 | % | 28.7 | % | 28.7 | % | 33.5 | % | 27.1 | % | 28.2 | % | 23.4 | % | 28.3 | % | |||||||||||||||||||||||||||||||||||||||||||
| Segment Adjusted Operating Income | $ | 78.4 | $ | 78.0 | $ | 86.9 | $ | 84.9 | $ | 86.7 | $ | 83.1 | $ | 100.2 | $ | 83.5 | $ | 87.5 | $ | 307.0 | $ | 341.6 | |||||||||||||||||||||||||||||||||||||||||||
| Segment Adjusted Operating Income Margin6 | 43.2 | % | 41.7 | % | 43.6 | % | 43.5 | % | 43.8 | % | 40.6 | % | 46.4 | % | 40.5 | % | 42.2 | % | 41.5 | % | 42.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| Select Other Metrics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average SaaS Accounts | 20.3 | 20.4 | 21.5 | 21.2 | 21.5 | 21.6 | 22.4 | 21.7 | 22.1 | 20.3 | 21.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 2.0 | % | 2.5 | % | 6.1 | % | 6.0 | % | 6.0 | % | 6.0 | % | 3.8 | % | 2.2 | % | 2.8 | % | 2.0 | % | 6.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Total Volume | $ | 3,129 | $ | 3,135 | $ | 4,196 | $ | 3,729 | $ | 3,276 | $ | 2,882 | $ | 3,989 | $ | 3,578 | $ | 3,163 | $ | 13,600 | $ | 14,083 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 8.6 | % | 11.1 | % | 9.3 | % | 6.7 | % | 4.7 | % | (8.1) | % | (4.9) | % | (4.1) | % | (3.4) | % | 9.3 | % | 3.5 | % | |||||||||||||||||||||||||||||||||||||||||||
| Purchase Volume | $ | 1,646 | $ | 1,617 | $ | 2,330 | $ | 2,003 | $ | 1,771 | $ | 1,732 | $ | 2,497 | $ | 2,187 | $ | 1,920 | $ | 7,243 | $ | 7,836 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 9.7 | % | 7.1 | % | 10.2 | % | 7.4 | % | 7.6 | % | 7.1 | % | 7.2 | % | 9.2 | % | 8.4 | % | 8.8 | % | 8.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Average HSA Custodial Cash Assets | $ | 4,315 | $ | 4,366 | $ | 4,609 | $ | 4,705 | $ | 4,808 | $ | 4,874 | $ | 5,154 | $ | 5,227 | $ | 5,349 | $ | 4,280 | $ | 4,749 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 10.4 | % | 11.2 | % | 9.5 | % | 11.2 | % | 11.4 | % | 11.6 | % | 11.8 | % | 11.1 | % | 11.2 | % | 10.6 | % | 11.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Custodial Investment Revenue - in Other Revenue7 | $ | 41.2 | $ | 44.3 | $ | 44.6 | $ | 48.2 | $ | 51.5 | $ | 51.8 | $ | 55.8 | $ | 58.5 | $ | 59.7 | $ | 163.0 | $ | 196.1 | |||||||||||||||||||||||||||||||||||||||||||
| Custodial Investment Revenue - in Account Servicing Revenue8 | $ | 12.5 | $ | 9.1 | $ | 11.3 | $ | 9.6 | $ | 10.2 | $ | 9.2 | $ | 7.9 | $ | 5.9 | $ | 6.7 | $ | 46.5 | $ | 40.3 | |||||||||||||||||||||||||||||||||||||||||||
| Custodial Investment Revenue - Total | $ | 53.7 | $ | 53.4 | $ | 55.8 | $ | 57.8 | $ | 61.7 | $ | 61.0 | $ | 63.8 | $ | 64.4 | $ | 66.4 | $ | 209.5 | $ | 236.4 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 22.0 | % | 17.9 | % | 10.6 | % | 11.4 | % | 14.9 | % | 14.2 | % | 14.2 | % | 11.4 | % | 7.7 | % | 24.3 | % | 12.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| HSA Yield9 | 4.98 | % | 4.89 | % | 4.85 | % | 4.92 | % | 5.13 | % | 5.00 | % | 4.95 | % | 4.93 | % | 4.97 | % | 4.90 | % | 4.98 | % | |||||||||||||||||||||||||||||||||||||||||||
(6) Segment adjusted operating income margin is derived by dividing segment adjusted operating income by the revenue of the corresponding segment.
(7) Represents income earned on available-for-sale securities held and managed by WEX Bank. These amounts are recorded within Other Revenue on our consolidated statement of operations.
(8) Represents income earned for custodial deposits held at third-party banks. These amounts are recorded within Account Servicing Revenue on our consolidated statement of operations.
(9) We calculate HSA yield by dividing Custodial Investment Revenue - Total by Average HSA Custodial Cash Assets.
8
The following chart shows the maturity profile of the investment securities and deposits as of September 30, 2026. The blended portfolio yield shown is the return earned on the balances maturing each year as of September 30, 2026.
Our portfolio management efforts have maintained relatively consistent custodial investment returns.
9
 | Corporate Payments Segment | ||||
WEX's Corporate Payments segment provides comprehensive and secure business-to-business (B2B) payments solutions powering mid-sized businesses and global enterprises through scalable technology. Our Direct to Corporate solution automates Accounts Payable (AP) by integrating with Enterprise Resource Planning systems and accounting workflows to maximize virtual payment usage. Our customizable Embedded Payments solution seamlessly integrates virtual payment capabilities into existing workflows, whether payments are core to the business, part of critical operations, or an added customer offering. This versatile solution empowers a broad range of industries, including online travel. We also offer white-label partnerships with financial institutions. Leveraging scale, network incentives, global expertise, and our supplier enablement team, we seek to optimize revenue for our customers.
Revenue in this segment is primarily derived from net interchange, with additional contributions from licensing fees.
•Corporate Payments segment revenue for the quarter was $137.4 million, an increase of 3.5% compared to the same prior-year period.
•Purchase volumes issued by WEX for the quarter increased 6.3% compared to the same prior-year period.
•The net interchange rate for the quarter was down 7 basis points sequentially due primarily to a higher share of travel volume driving the quarter.
•Total travel volume for the quarter increased 13.1% compared to the same prior-year period.
•Direct Accounts Payable purchase volume increased 24% compared to the same prior-year period. This business currently generates approximately 20% of annual segment revenue.
•Segment operating income margin for the quarter was 41.0%, compared to 39.1% in the same prior-year period. The segment adjusted operating income margin for the quarter was 49.9%, up approximately 190 basis points due primarily to lower credit losses within the segment compared to the same prior-year period.
10
The following table reflects segment results and select other metrics within Corporate Payments. All amounts are in millions:
| (Unaudited) | For the three months ended | For the twelve months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | 12/31/24 | 12/31/25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Revenues | $ | 126.9 | $ | 104.3 | $ | 103.5 | $ | 118.3 | $ | 132.8 | $ | 122.9 | $ | 113.0 | $ | 125.1 | $ | 137.4 | $ | 487.8 | $ | 477.4 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | (6.1) | % | (22.7) | % | (15.5) | % | (11.8) | % | 4.7 | % | 17.8 | % | 9.3 | % | 5.8 | % | 3.5 | % | (1.8) | % | (2.1) | % | |||||||||||||||||||||||||||||||||||||||||||
| FX Impact10 | $ | (1.7) | $ | 1.3 | $ | 1.3 | $ | (1.1) | $ | (1.9) | $ | (2.6) | $ | (2.2) | $ | (0.3) | $ | 0.2 | $ | (0.9) | $ | (4.3) | |||||||||||||||||||||||||||||||||||||||||||
| Operating Income (GAAP) | $ | 56.1 | $ | 35.4 | $ | 27.2 | $ | 38.0 | $ | 52.0 | $ | 48.8 | $ | 32.0 | $ | 47.0 | $ | 56.4 | $ | 203.5 | $ | 166.0 | |||||||||||||||||||||||||||||||||||||||||||
| Operating Income (GAAP) Margin | 44.2 | % | 33.9 | % | 26.3 | % | 32.1 | % | 39.1 | % | 39.7 | % | 28.3 | % | 37.5 | % | 41.0 | % | 41.7 | % | 34.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| Segment Adjusted Operating Income | $ | 71.5 | $ | 45.7 | $ | 40.5 | $ | 49.5 | $ | 63.8 | $ | 59.5 | $ | 44.1 | $ | 58.5 | $ | 68.5 | $ | 256.2 | $ | 213.3 | |||||||||||||||||||||||||||||||||||||||||||
| Segment Adjusted Operating Income Margin11 | 56.4 | % | 43.9 | % | 39.1 | % | 41.9 | % | 48.0 | % | 48.4 | % | 39.0 | % | 46.7 | % | 49.9 | % | 52.5 | % | 44.7 | % | |||||||||||||||||||||||||||||||||||||||||||
| Select Other Metrics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Volume | $ | 39,056 | $ | 30,833 | $ | 31,109 | $ | 36,939 | $ | 43,272 | $ | 36,466 | $ | 34,240 | $ | 38,584 | $ | 47,636 | $ | 138,707 | $ | 147,786 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | 6.2 | % | (3.6) | % | (5.8) | % | 3.2 | % | 10.8 | % | 18.3 | % | 10.1 | % | 4.5 | % | 10.1 | % | 8.2 | % | 6.5 | % | |||||||||||||||||||||||||||||||||||||||||||
| Purchase Volume | $ | 23,394 | $ | 16,541 | $ | 17,285 | $ | 20,497 | $ | 23,177 | $ | 19,342 | $ | 17,908 | $ | 19,762 | $ | 24,644 | $ | 89,640 | $ | 80,300 | |||||||||||||||||||||||||||||||||||||||||||
| Y/Y Change | (16.0) | % | (27.5) | % | (27.8) | % | (20.4) | % | (0.9) | % | 16.9 | % | 3.6 | % | (3.6) | % | 6.3 | % | (2.8) | % | (10.4) | % | |||||||||||||||||||||||||||||||||||||||||||
| Net Interchange Rate | 0.45 | % | 0.52 | % | 0.50 | % | 0.48 | % | 0.47 | % | 0.53 | % | 0.53 | % | 0.53 | % | 0.46 | % | 0.46 | % | 0.49 | % | |||||||||||||||||||||||||||||||||||||||||||
(10) Favorable impacts are shown as negatives, while unfavorable impacts are shown as positive figures.
(11) Segment adjusted operating income margin is derived by dividing segment adjusted operating income by the revenue of the corresponding segment.
11
The following charts present Corporate Payments segment revenue, adjusted operating income margin, volume, and net interchange rate:
12
Key Balance Sheet and Liquidity Metrics
The following table shows key balance sheet and liquidity metrics as well as key operating metrics relevant to our balance sheet:
| (in millions, except for leverage ratio) | 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | |||||||||||||||||||||||||||||||||||||||||
| Cash and Cash Equivalents | $ | 535 | $ | 599 | $ | 610 | $ | 773 | $ | 813 | $ | 906 | $ | 634 | $ | 1,161 | $ | 593 | ||||||||||||||||||||||||||||||||
| Accounts Receivable | 3,770 | 3,023 | 3,768 | 3,925 | 3,816 | 3,363 | 4,349 | 4,761 | 5,343 | |||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt, Net | 3,143 | 3,082 | 4,100 | 3,909 | 3,719 | 3,532 | 3,606 | 3,523 | 3,458 | |||||||||||||||||||||||||||||||||||||||||
| Corporate Cash | $ | 123 | $ | 80 | $ | 163 | $ | 134 | $ | 128 | $ | 122 | $ | 91 | $ | 123 | $ | 106 | ||||||||||||||||||||||||||||||||
| Available Liquidity | $ | 729 | $ | 735 | $ | 770 | $ | 916 | $ | 1,082 | $ | 1,249 | $ | 1,131 | $ | 1,232 | $ | 1,267 | ||||||||||||||||||||||||||||||||
| Leverage Ratio12 | 2.6x | 2.6x | 3.5x | 3.4x | 3.25x | 3.1x | 3.1x | 2.9x | 2.7x | |||||||||||||||||||||||||||||||||||||||||
| Investment Securities at Cost13 | $ | 3,734 | $ | 3,875 | $ | 3,891 | $ | 4,180 | $ | 4,134 | $ | 4,329 | $ | 4,818 | $ | 4,994 | $ | 4,905 | ||||||||||||||||||||||||||||||||
We remain in a healthy financial position and ended the quarter with $1.3 billion of available liquidity that includes our available corporate cash and capacity to borrow under our Revolving Credit Facility. Our leverage ratio, as defined in the Credit Agreement, as of September 30, 2026, stands at 2.7 times, and is within our target range of 2.5 times to 3.0 times.
The following table summarizes the Company's long-term debt maturities14, excluding our revolver and nominal scheduled principal payments on our term loans:
We have maintained ample access to debt markets and strategically review our debt composition and maturity schedule to align with our long-term objectives. We currently have a runway of more than one year before our next maturity, which we believe provides us with an appropriate cushion to remain opportunistic in the market.
(12) As defined in the Credit Agreement.
(13) Our available-for-sale debt securities are measured and reported at fair value on the face of the balance sheet. We have additionally included the cost basis of these investments to provide greater clarity on the nature and extent of our investing activities.
(14) The maturity date of the Term A debt is the earlier of (i) May 10, 2029 and (ii) the date that is 91 days prior to the maturity of the Term B-2 Loans. We have presented Term A within 2029 in the table above with the expectation that the Term B-2 debt will be refinanced prior to maturity.
13
Cash Flow
The following table15 presents our operating cash flow and adjusted free cash flow metric:
| (Unaudited) | For the three months ended | For the twelve months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | 12/31/24 | 12/31/25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Cash Flow, as reported | $ | 3.3 | $ | 638.4 | $ | (481.6) | $ | 264.6 | $ | 376.6 | $ | 294.7 | $ | (330.8) | $ | (77.6) | $ | (11.2) | $ | 481.4 | $ | 454.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales and maturities (purchases) of current investment securities | $ | (276.3) | $ | (153.2) | $ | 28.3 | $ | (350.3) | $ | 48.7 | $ | (191.1) | $ | (478.2) | $ | (179.4) | $ | 92.3 | $ | (738.0) | $ | (464.4) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | (35.0) | $ | (38.7) | $ | (32.6) | $ | (34.6) | $ | (35.0) | $ | (38.4) | $ | (37.5) | $ | (43.4) | $ | (47.0) | $ | (147.3) | $ | (140.6) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net Funding Activity | $ | 372.2 | $ | (139.3) | $ | 375.5 | $ | 495.6 | $ | (178.1) | $ | 290.8 | $ | 616.9 | $ | 1,021.9 | $ | (360.9) | $ | 652.7 | $ | 983.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Decrease (increase) in WEX Bank cash balances | $ | 125.3 | $ | (104.7) | $ | 67.7 | $ | (182.5) | $ | (47.5) | $ | (95.0) | $ | 236.5 | $ | (491.0) | $ | 556.5 | $ | 279.1 | $ | (257.3) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other adjustments | $ | — | $ | (33.1) | $ | 58.8 | $ | 1.6 | $ | 1.5 | $ | 0.3 | $ | 42.6 | $ | (11.5) | $ | 4.8 | $ | 34.0 | $ | 62.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Free Cash Flow | $ | 189.5 | $ | 169.5 | $ | 16.2 | $ | 194.3 | $ | 166.2 | $ | 261.3 | $ | 49.5 | $ | 219.0 | $ | 234.3 | $ | 562.0 | $ | 638.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Trailing Twelve Month Adjusted Free Cash Flows | $ | 567.8 | $ | 562.0 | $ | 587.4 | $ | 569.5 | $ | 546.2 | $ | 638.0 | $ | 671.3 | $ | 696.0 | $ | 764.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
WEX has historically generated a significant amount of cash each year, although absolute levels can vary based upon macroeconomic factors, operational investments, and overall business performance. Q3 2026 adjusted free cash flow15 was $234 million. Over the trailing twelve months ended September 30, 2026, we generated $764 million in adjusted free cash flow, converting a substantial portion of our ANI into adjusted free cash flow. We are able to leverage this strong adjusted free cash flow generation to deliver on our disciplined capital allocation strategy.
(15) See "Reconciliation of GAAP Operating Cash Flow to Adjusted Free Cash Flow" in Exhibit 1 for a more detailed discussion and explanation of these metrics.
14
Capital Allocation
The following table presents our uses of cash over the following quarters, including shares repurchased on the last day of the quarter that settle next day:
| For the three months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | |||||||||||||||||||||||||||||||||||||||||
| Capital Expenditures | $ | 35.0 | $ | 38.7 | $ | 32.6 | $ | 34.6 | $ | 35.0 | $ | 38.4 | $ | 37.5 | $ | 43.4 | $ | 47.0 | ||||||||||||||||||||||||||||||||
| Acquisitions16 | $ | 7.1 | $ | — | $ | 91.2 | $ | — | $ | — | $ | 58.6 | $ | 80.7 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Share Repurchases 17,18,19 | $ | 370.0 | $ | 106.0 | $ | 790.0 | $ | — | $ | — | $ | — | $ | — | $ | 60.0 | $ | 200.0 | ||||||||||||||||||||||||||||||||
| Capital Deployed | $ | 412.1 | $ | 144.7 | $ | 913.8 | $ | 34.6 | $ | 35.0 | $ | 97.0 | $ | 118.2 | $ | 103.5 | $ | 247.1 | ||||||||||||||||||||||||||||||||
Note: The Q4 2025 acquisition amount relates primarily to the purchase of the BP portfolio.
WEX strategically allocates capital through a disciplined and rigorous analytical process, prioritizing investments that we expect will deliver strong long-term returns. Our primary uses of cash have included growth-focused initiatives — such as investments in technology and customer experience — strategic M&A, and returning capital to shareholders via share repurchases. Our capex investments are central to strengthening our competitive edge and delivering greater value to our customers.
The following table presents cash spent on share buybacks and the number of shares repurchased for each of the following quarters:
| (In millions) | For the three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash Spent Repurchasing Shares17, 18, 19 | $ | 370.0 | $ | 106.0 | $ | 790.0 | $ | — | $ | — | $ | — | $ | — | $ | 60.0 | $ | 200.0 | ||||||||||||||||||||||||||||||||||||||
| Cumulative Cash Spent Since 2022 | $ | 1,129.8 | $ | 1,235.8 | $ | 2,025.8 | $ | 2,025.8 | $ | 2,025.8 | $ | 2,025.8 | $ | 2,025.8 | $ | 2,085.8 | $ | 2,285.8 | ||||||||||||||||||||||||||||||||||||||
Share Repurchases17 | 1.72 | 0.77 | 5.10 | — | — | — | — | 0.43 | 1.09 | |||||||||||||||||||||||||||||||||||||||||||||||
| Cumulative Shares Repurchased Since 2022 | 6.12 | 6.89 | 11.99 | 11.99 | 11.99 | 11.99 | 11.99 | 12.42 | 13.51 | |||||||||||||||||||||||||||||||||||||||||||||||
(16) This line is presented on a cash basis and includes consideration transferred in the related quarter, including deferred payments when they are paid, as opposed to when the underlying transaction occurred.
(17) During the third quarter of 2024, we entered into the ASR. For purposes of this table, we have included the full payment amount and the initial delivery of shares in the quarter ended September 30, 2024, and the additional 0.2 million shares of WEX common stock received upon ASR settlement during the fourth quarter of 2024, in the quarter ended December 31, 2024.
(18) On March 31, 2025, the Company completed the Tender Offer. The Company incurred approximately $4.2 million of fees related to the Tender Offer, which are not included in this table.
(19) All presented dollar amounts exclude the nondeductible one percent excise tax on the net value of stock repurchases imposed by the Inflation Reduction Act of 2022.
15
Financial Guidance
The following table presents our expectations for the fourth quarter and full year 2026:
| Financial Guidance | Q4'26 | Full Year 2026 | |||||||||||||||||||||||||||
| Current Guidance | Current Guidance | Changes from Prior Guide at Midpoint | |||||||||||||||||||||||||||
| Low | High | Low | High | $ Change | % Change | Fuel Price Impact | |||||||||||||||||||||||
| Net Revenue, in millions | $ | 760 | $ | 780 | $ | 2,968 | $ | 2,988 | $ | 96 | 3 | % | $ | 91 | |||||||||||||||
| Adjusted Net Income per Diluted Share20 | $ | 5.67 | $ | 5.87 | $ | 21.28 | $ | 21.48 | $ | 1.50 | 8 | % | $ | 1.40 | |||||||||||||||
Fourth quarter and full year 2026 guidance is based on a number of assumptions, including:
| Key Guidance Assumptions | Q4'26 | Full Year 2026 | ||||||||||||||||||||||||||||||
| Current Guidance | Current Guidance | Change from Prior Guide at Midpoint | % Change | |||||||||||||||||||||||||||||
| Average U.S. Retail Fuel Prices per Gallon | $ | 4.81 | $ | 4.50 | $ | 0.59 | 15 | % | ||||||||||||||||||||||||
| Mobility Credit Losses (bps) | 17 | - | 22 | 16 | - | 17 | 2.00 | 14 | % | |||||||||||||||||||||||
| Weighted Average Diluted Shares Outstanding, in millions | 34.1 | 34.6 | (0.4) | (1) | % | |||||||||||||||||||||||||||
•U.S. retail fuel prices estimated at $4.81 per gallon for Q4 and $4.50 per gallon for the full year, based on the applicable NYMEX futures curve from the week of October 19, 2026; this assumption increased 2026 revenue and EPS guidance by approximately $91 million and $1.40, respectively.
•Interest rate impacts included in line with market Fed Funds projections.
•Foreign exchange rates are as of the end of September 2026.
•Adjusted net income effective tax rate of 25.0% for 2026 (all periods).
•Does not include any further share repurchases that have been or may be consummated beyond the approximately $260 million repurchased through Q3.
(20) 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.
16
The following tables include estimated revenue and ANI per diluted share sensitivities to changes in PPG and interest rates as of the date of this supplement. As a reminder, the impacts of these macro factors can and will change based upon various factors, including material volatility in fuel prices and the composition of our balance sheet. We target maintaining a materially neutral ANI per share impact from 100 bps adjustments to interest rates and can adjust our profile through balance sheet strategies and hedging.
| Price per Gallon | Interest Rates | ||||||||||||||||
| Sensitivities | +$0.10/Gal | -$0.10/Gal | +100bps | -100bps | |||||||||||||
| Impact to Net Revenue, in millions (approximate) | $ | 20 | $ | (20) | $ | 30 | $ | (30) | |||||||||
| Impact to ANI per Diluted Share (approximate)21 | $ | 0.35 | $ | (0.35) | $ | (0.40) | $ | 0.45 | |||||||||
The following charts22 represent a walk between our previous 2026 guidance and our updated 2026 guidance, accounting for the primary drivers that have changed.
(21) 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.
(22) The PPG impacts above include adjustment for international fuel price spreads.
17
Enterprise Strategy
18
Our Strategy Has Driven Long-Term Growth23
(23) See "Reconciliation of GAAP Net Income Attributable to Shareholders per Diluted Share to Adjusted Net Income Attributable to Shareholders per Diluted Share" in Exhibit 1.
19
Acronyms and Abbreviations
The acronyms and abbreviations identified below are used in these supplemental materials.
Adjusted free cash flow | A non-GAAP measure calculated as cash flows from operating activities adjusted for the inclusion of (i) net sales and maturities or purchases of current investment securities, (ii) capital expenditures, and (iii) Net Funding Activity; the exclusion of (iv) changes in WEX Bank cash balances; and the inclusion or exclusion of (v) certain other adjustments, as applicable. | ||||
Adjusted net income or ANI | A non-GAAP measure that adjusts net income to exclude all items excluded in adjusted operating income, further excluding unrealized gains and losses on financial instruments, net foreign currency gains and losses, debt issuance cost amortization, tax related items and certain other non-operating items, as applicable depending on the period presented. | ||||
Adjusted operating income | A non-GAAP measure that adjusts operating income to exclude specified items that the Company’s management excludes in evaluating performance, including acquisition-related intangible amortization, other acquisition and divestiture related items, debt restructuring costs, stock-based compensation, other costs and certain non-recurring or non-cash operating charges that are not core to our operations, as applicable depending on the period presented. | ||||
Adjusted operating income (AOI) margin | Adjusted operating income margin is calculated by dividing adjusted operating income by total revenue. | ||||
ASR | Accelerated share repurchase agreement, entered into during the third quarter of 2024, with JPMorgan Chase Bank, National Association to repurchase an aggregate of $300.0 million of the Company’s outstanding common stock. Under the ASR, the Company made a payment of $300.0 million to JPMorgan for which we received an initial delivery of approximately 1.3 million shares of our common stock. During the fourth quarter of 2024, the ASR was settled resulting in the delivery of approximately 0.2 million of additional shares of WEX common stock. | ||||
Average SaaS accounts | Represents the average number of active consumer-directed health, COBRA, and billing accounts on our SaaS platforms. HSA accounts for which WEX Inc. serves as the non-bank custodian under designation by the U.S. Department of Treasury are included in this average. | ||||
BTFP | The Federal Reserve Bank Term Funding Program, which provided liquidity to U.S. depository institutions through the extension of bank loans through March 11, 2024. | ||||
Company | WEX Inc. and all entities included in the consolidated financial statements. | ||||
Convertible notes | Convertible senior unsecured notes due on July 15, 2027 in an aggregate principal amount of $310.0 million with a 6.5 percent interest rate, issued July 1, 2020, which were repurchased by the Company and canceled by the trustee at the instruction of the Company on August 11, 2023. | ||||
Corporate cash | Calculated in accordance with the terms of our consolidated leverage ratio in the Company’s Credit Agreement. | ||||
Credit Agreement | Amended and Restated Credit Agreement entered into on April 1, 2021 (as amended from time to time) by and among the Company and certain of its subsidiaries, as borrowers, and Bank of America, N.A., as administrative agent on behalf of the lenders. | ||||
FHLB | Federal Home Loan Bank | ||||
FX | Foreign Exchange | ||||
HSA | Health Savings Account | ||||
20
Net Funding Activity | Includes changes in HSA deposits invested in debt securities and changes in deposits, net advances from the FHLB, changes in participation debt, and changes in borrowed federal funds, as applicable, which are all used as part of WEX Bank’s accounts receivable financing strategy. | ||||
Net interchange rate | Represents the percentage of the dollar value of each payment processing transaction that WEX records as revenue from merchants, less certain discounts given to customers and network fees. | ||||
Net late fee rate | Net late fee rate represents late fee revenue as a percentage of fuel purchased by fleets that have a payment processing relationship with WEX. | ||||
Net payment processing rate | The percentage of each payment processing $ of fuel that the Company records as revenue from merchants less certain discounts given to customers and network fees. | ||||
Operating cash flow | Net cash provided by (used for) operating activities. | ||||
Over-the-Road | Typically, heavy trucks traveling long distances. | ||||
Payment processing $ of fuel | Total dollar value of the fuel purchased by fleets that have a payment processing relationship with WEX. | ||||
Payment processing transactions | Total number of purchases made by fleets that have a payment processing relationship with the Company where the Company maintains the receivable for the total purchase. | ||||
PPG | Price Per Gallon | ||||
Purchase volume | Purchase volume in the Corporate Payments segment represents the total dollar value of all WEX-issued transactions that use WEX corporate card products and virtual card products. Purchase volume in the Benefits segment represents the total dollar value of all transactions where interchange is earned by WEX. | ||||
Revolving Credit Facility | The Company’s secured revolving credit facility under the Credit Agreement. | ||||
RSUs | Restricted stock units | ||||
SaaS | Software-as-a-Service | ||||
Segment adjusted operating income (AOI) | A non-GAAP measure that adjusts operating income to exclude specified items that the Company’s management excludes in evaluating segment performance, including unallocated corporate expenses, acquisition-related intangible amortization, other acquisition and divestiture related items, debt restructuring costs, stock-based compensation, other costs and certain non-recurring or non-cash operating charges that are not core to our operations, as applicable depending on the period presented. | ||||
Segment adjusted operating income (AOI) margin | Segment adjusted operating income margin is calculated by dividing segment adjusted operating income by segment revenue. | ||||
Tender Offer | The Company’s modified “Dutch auction” tender offer, that commenced on February 26, 2025 and was completed on March 31, 2025, in which the Company purchased for cash $750 million in value of shares of its common stock upon the terms and subject to the conditions described in that certain Schedule TO and the exhibits thereto, that were originally filed by the Company with the SEC on February 26, 2025 and subsequently amended. | ||||
Total volume | Includes purchases on WEX-issued accounts as well as purchases on third party issued accounts using a WEX platform. | ||||
WEX | WEX Inc., and all of its subsidiaries that are consolidated under accounting principles generally accepted in the United States, unless otherwise indicated or required by the context. | ||||
21
Exhibit 1
Reconciliation of Non-GAAP Measures
(in millions, except per share data)
Reconciliation of GAAP Net Income Attributable to Shareholders to Adjusted Net Income Attributable to Shareholders
| (Unaudited) | For the three months ended | For the twelve months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | 12/31/24 | 12/31/25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to shareholders | $ | 102.9 | $ | 63.9 | $ | 71.5 | $ | 68.1 | $ | 80.3 | $ | 84.3 | $ | 77.7 | $ | 108.5 | $ | 134.1 | $ | 309.6 | $ | 304.1 | |||||||||||||||||||||||||||||||||||||||||||
Unrealized (gain) loss on financial instruments | $ | (0.9) | $ | 0.8 | $ | (0.4) | $ | (0.1) | $ | (0.3) | $ | (0.1) | $ | 0.2 | $ | 0.1 | $ | 1.0 | $ | 0.2 | $ | (0.8) | |||||||||||||||||||||||||||||||||||||||||||
Net foreign currency (gain) loss | $ | (3.2) | $ | 16.4 | $ | 3.1 | $ | (2.4) | $ | 2.6 | $ | (3.1) | $ | (4.6) | $ | 0.5 | $ | 0.1 | $ | 26.1 | $ | 0.2 | |||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of contingent consideration | $ | 0.1 | $ | 3.0 | $ | 0.8 | $ | 0.8 | $ | 0.7 | $ | 0.6 | $ | 0.7 | $ | — | $ | — | $ | 6.5 | $ | 2.9 | |||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related intangible amortization | $ | 50.4 | $ | 49.9 | $ | 47.8 | $ | 49.3 | $ | 47.9 | $ | 46.9 | $ | 45.8 | $ | 45.7 | $ | 45.6 | $ | 201.8 | $ | 191.9 | |||||||||||||||||||||||||||||||||||||||||||
| Other acquisition and divestiture related items | $ | 2.4 | $ | 2.8 | $ | 2.5 | $ | 1.9 | $ | 5.0 | $ | (0.3) | $ | 0.9 | $ | 1.8 | $ | — | $ | 12.1 | $ | 9.1 | |||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | $ | 29.8 | $ | 22.1 | $ | 13.3 | $ | 32.4 | $ | 34.7 | $ | 23.1 | $ | 29.6 | $ | 37.4 | $ | 45.3 | $ | 111.9 | $ | 103.5 | |||||||||||||||||||||||||||||||||||||||||||
| Other costs | $ | 12.6 | $ | 11.1 | $ | 14.8 | $ | 4.5 | $ | 3.6 | $ | 2.5 | $ | 10.2 | $ | 10.6 | $ | 2.8 | $ | 48.9 | $ | 25.4 | |||||||||||||||||||||||||||||||||||||||||||
Impairment charge | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 9.9 | $ | — | $ | — | $ | — | $ | — | $ | 9.9 | |||||||||||||||||||||||||||||||||||||||||||
| Debt restructuring and debt issuance cost amortization | $ | 4.3 | $ | 3.9 | $ | 2.2 | $ | 1.8 | $ | 2.3 | $ | 2.1 | $ | 2.5 | $ | 2.2 | $ | 2.2 | $ | 15.9 | $ | 8.4 | |||||||||||||||||||||||||||||||||||||||||||
| Tax related items | $ | (20.9) | $ | (31.1) | $ | (17.2) | $ | (20.2) | $ | (17.1) | $ | (22.1) | $ | (17.6) | $ | (20.2) | $ | (19.2) | $ | (102.2) | $ | (76.6) | |||||||||||||||||||||||||||||||||||||||||||
Adjusted net income attributable to shareholders | $ | 177.5 | $ | 142.9 | $ | 138.4 | $ | 136.2 | $ | 159.7 | $ | 143.7 | $ | 145.3 | $ | 186.5 | $ | 211.9 | $ | 631.0 | $ | 578.0 | |||||||||||||||||||||||||||||||||||||||||||
| ANI per Diluted Share | $ | 4.35 | $ | 3.57 | $ | 3.51 | $ | 3.95 | $ | 4.59 | $ | 4.11 | $ | 4.15 | $ | 5.35 | $ | 6.13 | $ | 15.28 | $ | 16.10 | |||||||||||||||||||||||||||||||||||||||||||
22
Reconciliation of GAAP Net Income Attributable to Shareholders per Diluted Share to Adjusted Net Income Attributable to Shareholders per Diluted Share
| (Unaudited) | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to shareholders per diluted share | $ | 0.57 | $ | 3.71 | $ | 3.86 | $ | 2.26 | $ | (5.56) | $ | — | $ | 4.50 | $ | 6.16 | $ | 7.50 | $ | 8.47 | ||||||||||||||||||||||||||||||||||||
Unrealized (gain) loss on financial instruments | $ | (0.19) | $ | (0.03) | $ | (0.06) | $ | 0.79 | $ | 0.62 | $ | (0.86) | $ | (1.86) | $ | 0.70 | $ | 0.01 | $ | (0.02) | ||||||||||||||||||||||||||||||||||||
Net foreign currency (gain) loss | $ | 0.23 | $ | (0.73) | $ | 0.89 | $ | 0.02 | $ | 0.59 | $ | 0.27 | $ | 0.51 | $ | (0.11) | $ | 0.63 | $ | — | ||||||||||||||||||||||||||||||||||||
| Acquisition-related intangible amortization | $ | 2.39 | $ | 3.57 | $ | 3.17 | $ | 3.64 | $ | 3.90 | $ | 4.01 | $ | 3.81 | $ | 4.25 | $ | 4.89 | $ | 5.34 | ||||||||||||||||||||||||||||||||||||
| Other acquisition and divestiture related items | $ | 1.24 | $ | 0.12 | $ | 0.10 | $ | 0.86 | $ | 1.32 | $ | 0.81 | $ | 0.40 | $ | 0.15 | $ | 0.29 | $ | 0.25 | ||||||||||||||||||||||||||||||||||||
Legal settlement | $ | — | $ | — | $ | — | $ | — | $ | 3.71 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
| Stock-based compensation | $ | 0.48 | $ | 0.71 | $ | 0.81 | $ | 1.09 | $ | 1.50 | $ | 1.70 | $ | 2.25 | $ | 3.04 | $ | 2.71 | $ | 2.88 | ||||||||||||||||||||||||||||||||||||
| Other costs | $ | 0.34 | $ | 0.26 | $ | 0.31 | $ | 0.57 | $ | 0.31 | $ | 0.52 | $ | 0.86 | $ | 1.05 | $ | 1.19 | $ | 0.71 | ||||||||||||||||||||||||||||||||||||
Vendor settlement | $ | 0.38 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
(Gain) loss on sale of subsidiary | $ | — | $ | (0.49) | $ | — | $ | — | $ | 1.06 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
| Impairment charges and asset write-offs | $ | — | $ | 1.02 | $ | 0.13 | $ | — | $ | 1.22 | $ | — | $ | 3.05 | $ | — | $ | — | $ | 0.28 | ||||||||||||||||||||||||||||||||||||
| Debt restructuring and debt issuance cost amortization | $ | 0.31 | $ | 0.24 | $ | 0.32 | $ | 0.48 | $ | 0.91 | $ | 0.48 | $ | 0.39 | $ | 2.06 | $ | 0.39 | $ | 0.23 | ||||||||||||||||||||||||||||||||||||
| Change in fair value of contingent consideration | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.88 | $ | 3.11 | $ | 0.20 | $ | 0.16 | $ | 0.08 | ||||||||||||||||||||||||||||||||||||
| Non-cash adjustments related to tax receivable agreement | $ | 0.01 | $ | (0.35) | $ | 0.02 | $ | (0.02) | $ | (0.01) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
| ANI adjustments attributable to non-controlling interests | $ | (0.06) | $ | (0.04) | $ | (0.03) | $ | 1.21 | $ | (0.98) | $ | 2.91 | $ | (0.77) | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
| Tax related items | $ | (1.93) | $ | (2.67) | $ | (1.24) | $ | (1.71) | $ | (2.47) | $ | (1.58) | $ | (2.59) | $ | (2.59) | $ | (2.47) | $ | (2.13) | ||||||||||||||||||||||||||||||||||||
| Dilutive impact of stock awards | $ | — | $ | — | $ | — | $ | — | $ | (0.06) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
| Dilutive impact of convertible debt | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (0.13) | $ | (0.10) | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Adjusted net income attributable to shareholders per diluted share | $ | 3.78 | $ | 5.32 | $ | 8.28 | $ | 9.20 | $ | 6.06 | $ | 9.14 | $ | 13.53 | $ | 14.81 | $ | 15.28 | $ | 16.10 | ||||||||||||||||||||||||||||||||||||
23
Reconciliation of GAAP Operating Income to Total Segment Adjusted Operating Income and Adjusted Operating Income
| (Unaudited) | For the three months ended | For the twelve months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | 12/31/24 | 12/31/25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 196.4 | $ | 157.3 | $ | 157.3 | $ | 156.8 | $ | 183.6 | $ | 166.3 | $ | 158.2 | $ | 203.2 | $ | 238.8 | $ | 686.3 | $ | 663.9 | |||||||||||||||||||||||||||||||||||||||||||
| Unallocated corporate expenses | $ | 24.1 | $ | 28.3 | $ | 24.9 | $ | 25.4 | $ | 23.7 | $ | 24.4 | $ | 24.6 | $ | 26.0 | $ | 27.5 | $ | 102.1 | $ | 98.5 | |||||||||||||||||||||||||||||||||||||||||||
| Acquisition-related intangible amortization | $ | 50.4 | $ | 49.9 | $ | 47.8 | $ | 49.3 | $ | 47.9 | $ | 46.9 | $ | 45.8 | $ | 45.7 | $ | 45.6 | $ | 201.8 | $ | 191.9 | |||||||||||||||||||||||||||||||||||||||||||
| Other acquisition and divestiture related items | $ | 1.6 | $ | 0.3 | $ | 0.5 | $ | 0.7 | $ | 3.8 | $ | (1.5) | $ | — | $ | 1.8 | $ | — | $ | 5.7 | $ | 3.4 | |||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | $ | 29.8 | $ | 22.1 | $ | 13.3 | $ | 32.4 | $ | 34.7 | $ | 23.1 | $ | 29.6 | $ | 37.4 | $ | 45.3 | $ | 111.9 | $ | 103.5 | |||||||||||||||||||||||||||||||||||||||||||
| Other costs | $ | 14.8 | $ | 11.9 | $ | 14.9 | $ | 3.9 | $ | 3.6 | $ | 2.5 | $ | 10.4 | $ | 10.6 | $ | 2.8 | $ | 53.9 | $ | 24.8 | |||||||||||||||||||||||||||||||||||||||||||
Impairment charge | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 9.9 | $ | — | $ | — | $ | — | $ | — | $ | 9.9 | |||||||||||||||||||||||||||||||||||||||||||
Total segment adjusted operating income | $ | 317.1 | $ | 269.8 | $ | 258.7 | $ | 268.5 | $ | 297.2 | $ | 271.5 | $ | 268.8 | $ | 324.6 | $ | 360.0 | $ | 1,161.7 | $ | 1,095.9 | |||||||||||||||||||||||||||||||||||||||||||
| Unallocated corporate expenses | $ | (24.1) | $ | (28.3) | $ | (24.9) | $ | (25.4) | $ | (23.7) | $ | (24.4) | $ | (24.6) | $ | (26.0) | $ | (27.5) | $ | (102.1) | $ | (98.5) | |||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 293.0 | $ | 241.5 | $ | 233.8 | $ | 243.0 | $ | 273.5 | $ | 247.1 | $ | 244.1 | $ | 298.6 | $ | 332.5 | $ | 1,059.7 | $ | 997.5 | |||||||||||||||||||||||||||||||||||||||||||
Although adjusted net income, adjusted operating income, and total segment adjusted operating income are not calculated in accordance with GAAP, our management team believes these non-GAAP measures are integral to our reporting and planning processes and uses them to assess operating performance because they generally exclude financial results that are outside the normal course of our business operations or management’s control. These measures are also used to allocate resources among our operating segments.
The Company's non-GAAP adjusted operating income excludes acquisition-related intangible amortization, other acquisition and divestiture related items, debt restructuring costs, stock-based compensation, other costs and certain non-recurring or non-cash operating charges that are not core to our operations, as applicable depending on the period presented. Total segment adjusted operating income further excludes unallocated corporate expenses.
The Company's non-GAAP adjusted net income, which similarly excludes the impact of all items excluded in adjusted operating income, further excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, debt issuance cost amortization, tax related items, and certain other non-operating items, as applicable depending on the period presented.
The following items are generally excluded in determining one or more non-GAAP measures for the following reasons:
•Exclusion of the non-cash, mark-to-market adjustments on financial instruments, including interest rate swap agreements and investment securities, helps management identify and assess trends in the Company’s underlying business that might otherwise be obscured due to quarterly non-cash earnings fluctuations associated with these financial instruments. Additionally, the non-cash, mark-to-market adjustments on financial instruments are difficult to forecast accurately, making comparisons across historical and future periods difficult to evaluate;
•Net foreign currency gains and losses primarily result from the remeasurement to functional currency of cash, accounts receivable and accounts payable balances, certain intercompany transactions denominated in foreign currencies and any gain or loss on foreign currency economic hedges relating to these items. The exclusion of these items helps management compare changes in operating results between periods that might otherwise be obscured due to currency fluctuations;
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•The change in fair value of contingent consideration, which is related to the acquisition of certain contractual rights to serve as custodian or sub-custodian to HSAs, is dependent upon changes in future interest rate assumptions and has no significant impact on the ongoing operations of the Company. Additionally, the non-cash, mark-to-market adjustments on financial instruments are difficult to forecast accurately, making comparisons across historical and future periods difficult to evaluate;
•The Company considers certain acquisition-related costs, including certain financing costs, investment banking fees, warranty and indemnity insurance, certain integration-related expenses and amortization of acquired intangibles, as well as gains and losses from divestitures to be unpredictable, dependent on factors that may be outside of our control and unrelated to the continuing operations of the acquired or divested business or the Company. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related costs, may not be indicative of such future costs. The Company believes that excluding acquisition-related costs and gains or losses on divestitures facilitates the comparison of our financial results to the Company’s historical operating results and to other companies in our industry;
•Stock-based compensation is different from other forms of compensation as it is a non-cash expense. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to the Company is based on a stock-based compensation valuation methodology and underlying assumptions that may vary over time;
•Other costs are not consistently occurring and do not reflect expected future operating expense, nor do they provide insight into the fundamentals of current or past operations of our business. This also includes non-recurring professional service costs including amounts incurred as part of the 2026 proxy contest, and costs related to certain identified initiatives, including restructuring and technology initiatives, to further streamline the business, improve the Company’s efficiency, create synergies and globalize the Company’s operations, all with an objective to improve scale and efficiency and increase profitability going forward.
•Impairment charges represent non-cash asset write-offs, which do not reflect recurring costs that would be relevant to the Company’s continuing operations. The Company believes that excluding these nonrecurring expenses facilitates the comparison of our financial results to the Company’s historical operating results and to other companies in its industry;
•Debt restructuring and debt issuance cost amortization are unrelated to the continuing operations of the Company. Debt restructuring costs are not consistently occurring and do not reflect expected future operating expense, nor do they provide insight into the fundamentals of current or past operations of our business. In addition, since debt issuance cost amortization is dependent upon the financing method, which can vary widely company to company, we believe that excluding these costs helps to facilitate comparison to historical results as well as to other companies within our industry;
•The tax related items are the difference between the Company’s GAAP tax provision and a non-GAAP tax provision. The Company utilizes a fixed annual projected long-term non-GAAP tax rate in order to provide better consistency across reporting periods. To determine this long-term projected tax rate, the Company performs a pro forma tax provision based upon the Company’s projected adjusted net income before taxes. The fixed annual projected long-term non-GAAP tax rate could be subject to change in future periods 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; and
•The Company does not allocate certain corporate expenses to our operating segments, as these items are centrally controlled and are not directly attributable to any reportable segment.
WEX believes that adjusted net income, adjusted operating income, and total segment adjusted operating income may be useful to investors as a means of evaluating our performance. However, because adjusted net income, adjusted operating income, and total segment adjusted operating income are non-GAAP measures, they should not be considered as a substitute for, or superior to, net income or operating income as determined in accordance with GAAP. Adjusted net income, adjusted operating income, and total segment adjusted operating income as used by WEX may not be comparable to similarly titled measures employed by other companies.
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Reconciliation of GAAP Operating Cash Flow to Adjusted Free Cash Flow
The following table reconciles GAAP operating cash flow to adjusted free cash flow for the three and twelve-month periods presented:
| For the three months ended | For the twelve months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | 9/30/25 | 12/31/25 | 3/31/26 | 6/30/26 | 9/30/26 | 12/31/24 | 12/31/25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating cash flow | $ | 3.3 | $ | 638.4 | $ | (481.6) | $ | 264.6 | $ | 376.6 | $ | 294.7 | $ | (330.8) | $ | (77.6) | $ | (11.2) | $ | 481.4 | $ | 454.3 | |||||||||||||||||||||||||||||||||||||||||||
| Net sales and maturities (purchases) of current investment securities | $ | (276.3) | $ | (153.2) | $ | 28.3 | $ | (350.3) | $ | 48.7 | $ | (191.1) | $ | (478.2) | $ | (179.4) | $ | 92.3 | $ | (738.0) | $ | (464.4) | |||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | (35.0) | $ | (38.7) | $ | (32.6) | $ | (34.6) | $ | (35.0) | $ | (38.4) | $ | (37.5) | $ | (43.4) | $ | (47.0) | $ | (147.3) | $ | (140.6) | |||||||||||||||||||||||||||||||||||||||||||
| Net Funding Activity24 | $ | 372.2 | $ | (139.3) | $ | 375.5 | $ | 495.6 | $ | (178.1) | $ | 290.8 | $ | 616.9 | $ | 1,021.9 | $ | (360.9) | $ | 652.7 | $ | 983.8 | |||||||||||||||||||||||||||||||||||||||||||
| Decrease (increase) in WEX Bank cash balances | $ | 125.3 | $ | (104.7) | $ | 67.7 | $ | (182.5) | $ | (47.5) | $ | (95.0) | $ | 236.5 | $ | (491.0) | $ | 556.5 | $ | 279.1 | $ | (257.3) | |||||||||||||||||||||||||||||||||||||||||||
| Other adjustments25 | $ | — | $ | (33.1) | $ | 58.8 | $ | 1.6 | $ | 1.5 | $ | 0.3 | $ | 42.6 | $ | (11.5) | $ | 4.8 | $ | 34.0 | $ | 62.2 | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted free cash flow | $ | 189.5 | $ | 169.5 | $ | 16.2 | $ | 194.3 | $ | 166.2 | $ | 261.3 | $ | 49.5 | $ | 219.0 | $ | 234.3 | $ | 562.0 | $ | 638.0 | |||||||||||||||||||||||||||||||||||||||||||
| Trailing Twelve Month Adjusted Free Cash Flows | $ | 567.8 | $ | 562.0 | $ | 587.4 | $ | 569.5 | $ | 546.2 | $ | 638.0 | $ | 671.3 | $ | 696.0 | $ | 764.1 | |||||||||||||||||||||||||||||||||||||||||||||||
In addition to evaluating the Company’s liquidity on a GAAP basis, Company management uses adjusted free cash flow, a non-GAAP financial measure, to evaluate cash generation by adjusting for certain activities including those related to WEX Bank. For example, WEX Bank funds certain customer receivables through the issuance of deposits, short-term debt or the HSA deposits provided by our Benefits segment. WEX Bank can also elect to invest HSA deposits. Changes in deposits, short-term debt and investment activity are reflected in the calculation of adjusted free cash flow.
We view adjusted free cash flow as an important and useful measure for understanding our cash generation from ongoing operations in order to determine the amount of cash generated that is available to be used toward management’s capital allocation priorities. Adjusted free cash flow, however, is not a measure of cash available for discretionary expenditures, as WEX has certain non-discretionary obligations and cash requirements, such as debt service requirements, that are not deducted from this measure.
Adjusted free cash flow is calculated as cash flows from operating activities adjusted for the inclusion of (i) net sales and maturities or purchases of current investment securities, (ii) capital expenditures, and (iii) Net Funding Activity; the exclusion of (iv) changes in WEX Bank cash balances; and the inclusion or exclusion of (v) certain other adjustments, as applicable. These items have been included or excluded in determining adjusted free cash flow for the following reasons:
•Net sales and maturities or purchases of current investment securities relates to the investment of HSA deposits, which are obtained operationally and included within Net Funding Activity described below;
•Capital expenditures are investments in property, equipment and capitalized software required to operate the business;
(24) Net Funding Activity includes changes in HSA and other deposits, net advances from the FHLB, changes in participation debt, and changes in borrowed federal funds, as applicable.
(25) For the years ended December 31, 2025 and 2024, and the 2026 year-to-date period, other adjustments are predominantly comprised of contingent consideration paid to sellers in excess of acquisition-date fair value.
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•To reflect cash generated by core operations, adjusted free cash flow incorporates Net Funding Activity, which includes changes in HSA deposits invested in debt securities and changes in deposits and short-term debt used specifically as part of our accounts receivable financing strategy. Because these funding activities directly support operations, incorporating them provides a view into underlying cash generation;
•WEX Bank cash, which comprises the majority of our consolidated cash balances, may be increased or decreased as a result of the timing of Net Funding Activity and regulatory capital requirements, rather than Company operating activities. Accordingly, we remove the change in WEX Bank cash balances from adjusted free cash flow, to isolate balances not readily available to WEX Inc.; and
•Management views certain other adjustments, including add-backs to operating cash flows for contingent consideration paid to sellers for acquisitions, as cash expenditures not arising from the ongoing operations of the business, and therefore excludes them from adjusted free cash flow.
Given adjusted free cash flow is a non-GAAP measure, it should not be considered as a substitute for, or superior to, operating cash flow as determined in accordance with GAAP. In addition, adjusted free cash flow as used by WEX may not be comparable to similarly titled measures employed by other companies.
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