WEX Q2 Earnings Call Highlights

WEX beat Q2 guidance with revenue of $753.5 million and adjusted EPS of $5.35, helped by fuel-price and foreign-exchange tailwinds as well as solid execution across the business. Excluding those macro benefits, results were still in line to above expectations. Mobility and Corporate Payments showed improving momentum, with Mobility revenue rising 22% and Direct AP growth re-accelerating to 20%. Management also highlighted pricing actions in Mobility and healthy non-travel embedded payments pipelines. WEX raised full-year guidance and is prioritizing buybacks, projecting 2025 revenue of $2.86 billion to $2.90 billion and adjusted EPS of $19.68 to $20.08. The company said most free cash flow will go toward share repurchases after organic investments.

WEX NYSE: WEX reported second-quarter results above its own guidance ranges, with management citing fuel-price and foreign-exchange tailwinds, stabilizing Mobility transaction trends, and continued momentum in Corporate Payments and Benefits. President and CEO Melissa Smith said the quarter “built on the momentum” established earlier in the year, with revenue and adjusted net income per diluted share both exceeding the high end of the company’s guidance. She said that excluding the beneficial impact of fuel prices and foreign exchange, WEX delivered results in line with expectations and saw “strong execution across the organization.”

For the quarter, WEX reported revenue of $753.5 million, up 14.2% from a year earlier. Excluding fuel prices and foreign exchange, revenue increased 4.2%, which Smith said was at the midpoint of the company’s guidance. Adjusted net income per diluted share was $5.35, up 35.4%. Excluding fuel prices and foreign exchange, adjusted EPS rose 10.1%, which Smith said was at the high end of the guidance range.

CFO Jagtar Narula said foreign exchange rates and fuel prices contributed 10 percentage points to revenue growth and 25.4 percentage points to adjusted EPS growth. He also noted that WEX restarted share repurchases during the quarter, buying back about $60 million of shares in Q2, which added approximately $0.01 to earnings per share. Repurchases continued in July, with another roughly $33 million bought back through July 20.

WEX’s Mobility segment posted revenue growth of 22%, or 3.1% excluding foreign exchange and fuel-price impacts. Narula said the BP portfolio was fully online during the quarter following a successful migration. Payment processing transactions were flat year over year and increased 6.8% sequentially, which management described as an encouraging indicator of improving activity. The company also reported that credit losses increased from 13.5 basis points to 16 basis points, which Narula said was better than the range WEX had guided to previously. He said credit performance benefited from improving trends in the trucking sector, including a supply-side recovery that has lifted spot rates and helped truckers manage higher fuel prices. However, management said demand-side conditions remain constrained by broader economic factors.

In response to a question from KBW analyst Sanjay Sakhrani, Smith said WEX is not assuming a rebound in miles driven in its guidance. “To the extent we do, then that’s upside to us,” she said. Smith also said WEX is pursuing pricing opportunities in Mobility, including actions expected to generate $15 million of additional revenue in 2026. During the question-and-answer session, she said the company had already notified customers of certain pricing actions that would bring $15 million in the second half of the year.

Benefits revenue rose 5.6% to $206 million, reflecting what m...