WEX (NYSE:WEX) reported fourth-quarter 2025 results that management said showed an “inflection point” taking hold as prior investments in product development, go-to-market execution, and cost discipline translated into faster earnings growth and improving operating leverage. On the company’s earnings call, executives also issued 2026 guidance that calls for accelerating revenue and adjusted earnings growth, while adjusted operating margins are expected to be flat year over year due to macro-related headwinds.
Fourth-quarter and full-year results
For the fourth quarter, WEX delivered revenue of $672.9 million, up 5.7% year over year, or 4.5% excluding fuel price and foreign exchange impacts. Adjusted net income per diluted share was $4.11, up 15.1% year over year (or 12.1% excluding fuel price and FX impacts).
Chief Financial Officer Jagtar Narula said fourth-quarter revenue exceeded the company’s prior guidance primarily due to higher-than-anticipated fuel prices and a strong quarter in the Benefits segment. Adjusted EPS came in $0.25 above the midpoint of guidance, with $0.18 of that benefit attributed to fuel prices, and the remainder to execution.
Strategy, product investment, and scaling focus
Chief Executive Officer Melissa Smith reiterated that WEX’s strategy is anchored in three pillars: amplifying its core, expanding its reach, and accelerating innovation. She said the company is modernizing platforms to reduce friction, deepen workflow integration, and expand customer lifetime value, while maintaining discipline to support margin expansion over time.
Smith said WEX has increased product innovation velocity by more than 50% year over year, aided by an “AI-first” approach and improvements in execution rigor and accountability. She characterized 2026 as a shift from an investment phase to a scaling phase, with operating leverage expected to drive “meaningful” margin expansion over the medium term.
Examples cited on the call included:
- Mobility: A 13% year-over-year increase in new small business customers driven by targeted marketing; the introduction of Fleet Plus, combining closed-loop fuel card controls with open-loop flexibility; and continued momentum in the 10-4 by WEX offering aimed at smaller trucking fleets and owner-operators.
- Benefits: An AI-powered healthcare claims reimbursement solution that reduced processing times from days to minutes with 98% accuracy; and a modernized brokerage experience with real-time trading and access to HSA cash and investments.
- Corporate Payments: Continued growth in direct accounts payable and early success in embedded payments, alongside a new global funding engine enabling multi-currency virtual card issuance and on-demand currency conversion without incurring FX costs.
Segment performance: Mobility, Benefits, and Corporate Payments
Mobility revenue was $345.1 million, flat year over year. Narula noted a 1.4% favorable impact from fuel prices and FX, offset by a 1% negative impact from lower interest rates. Smith said transaction volumes declined modestly, consistent with expectations and broader market trends, as the over-the-road trucking market remains in a cyclical down cycle with muted freight demand and pressure on small operators. The payment processing rate was 1.33%, down about three basis points, primarily due to lower interest rates.
Benefits revenue increased 9.6% to $204.9 million. SaaS account growth was 6% in the quarter, which management said remained above recent industry trends cited by Devenir. WEX ended open enrollment with more than 9.4 million HSA accounts on its platform, and Smith said the company powers more than 20% of all HSA accounts in the U.S. and serves about 60% of Fortune 1000 companies. Custodial investment revenue rose 14.2% to $61 million, driven by higher average asset levels and higher rates; earned interest yield increased 11 basis points to 5%.
Corporate Payments revenue rose 17.8% to $122.9 million, with purchase volume up 16.9%. Smith said travel-related revenue grew more than 30% in the quarter, helped by high existing customer activity and onboarding of a “meaningful” new customer in Asia. Non-travel revenue grew in the mid-single digits. Adjusted operating margin in the segment increased 450 basis points on operating leverage as volume scaled. Management also cited benefits from an incentive contract with its primary scheme provider; Narula said a new scheme relationship negotiated in the second half of the year contributed in Q3 and more in Q4 and will continue in 2026, with stronger comparisons in the first half and lower in the second half.
Cash flow, leverage, and capital allocation
WEX generated $638 million of adjusted free cash flow in 2025, up from $562 million in 2024. Narula said deferred and contingent M&A payments related to the Benefits business would be “substantially completed” by the end of the first quarter of 2026, which he said would free up about $150 million of cash flow starting in 2027.
The company ended the fourth quarter with a leverage ratio of 3.1x, down from 3.25x at the end of Q3, within its long-term target range of 2.5x to 3.5x. Narula said WEX will prioritize debt reduction until leverage is below 3x, which it expects to reach in Q2 or Q3 of 2026.
On capital allocation, Smith said “risk-adjusted return” remains the company’s guiding principle, noting the company has spent $2 billion buying back stock over the last few years while also emphasizing the increased focus on organic innovation. Management said it will continue to evaluate share repurchases versus M&A, while remaining focused on paying down debt.
2026 guidance and key assumptions
For the first quarter of 2026, WEX guided revenue of $650 million to $670 million and adjusted EPS of $3.80 to $4.00. At the midpoint, management said the outlook implies about 4% revenue growth and 11% adjusted EPS growth, including a 2% net drag from fuel prices, FX, and interest rates.
For full-year 2026, WEX guided revenue of $2.70 billion to $2.76 billion and adjusted EPS of $17.25 to $17.85. At the midpoint, management said the outlook implies revenue growth of 5% and adjusted EPS growth of 13% when excluding the impact of fuel prices, FX, and interest rates.
Additional guidance details included:
- Mobility: Excluding fuel and FX, expected full-year revenue growth of 1% to 3%, including about a 1% headwind from lower interest rates on merchant contracts with pricing escalators. Management assumed no macro improvement. It also cited an over-the-road pull-forward in Q1 2025 due to tariff worries that creates a tougher comp in Q1 2026. Credit losses are expected to be 12 to 17 basis points for the year and 17 to 22 basis points in Q1, driven in part by the math of higher-value receivables from prior higher fuel prices and a smaller impact from certain tested offers that have since been pulled from market.
- Benefits: Expected full-year revenue growth of 5% to 7%, including an approximate two-point headwind from lower rates on the floating-rate portion of non-bank custodial assets. Management noted more than 75% of the portfolio is in fixed-rate instruments. Account growth is expected to be higher in Q1 than later in 2026 as the company laps benefits associated with the UAW contract.
- Corporate Payments: Expected full-year revenue growth of 5% to 7%, with management forecasting more “normalized” quarterly volume trends following the completion of a major OTA transition. Executives said they expect overall yield to be flat to slightly down, with travel yields down one to two basis points and non-travel down two to four basis points, offset by a mix shift toward non-travel.
Narula said guidance includes $50 million of cost savings actions, with some reinvested and some contributing to margins. However, lower expected fuel prices are anticipated to negatively impact adjusted operating margins by approximately 75 basis points, leading the company to forecast an adjusted operating margin that is flat with 2025. The guidance does not assume future M&A or share repurchases and assumes an average fuel price of $3.10 per gallon and two interest rate cuts.
On sensitivities, management said each $0.10 change in fuel price per gallon impacts revenue by about $20 million and adjusted EPS by about $0.35. For interest rates, 100 basis points higher than its outlook would increase revenue by about $30 million and lower adjusted EPS by about $0.35, while 100 basis points lower would reduce revenue by about $30 million and increase adjusted EPS by about $0.45.
Smith also addressed policy-related questions around HSAs, saying the company sees a potentially positive environment and expects it could be a tailwind, but added that no such benefit was factored into guidance.
Finally, management highlighted a board update: newly appointed director David Foss is expected to become vice chair and lead independent director effective at the 2026 annual meeting, while directors Shikhar Ghosh and Jack VanWoerkom plan to retire at that time.
About WEX (NYSE:WEX)
WEX Inc is a global financial technology company specializing in business payment solutions for fleet, travel, and corporate payments. The company delivers software-driven platforms and card-based services that help businesses automate payment processes, manage expenses and improve operational efficiency across a range of industries, including transportation, healthcare and government.
Founded in 1983 as Wright Express in Portland, Maine, the company began by offering fuel card services to trucking fleets.
