WEX Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter was $780.1 million, a 12.8% increase year-over-year, driven by a $57.3 million favorable impact from fuel prices and a $0.8 million favorable impact from foreign exchange rates.
• GAAP net income was $134.1 million ($3.88 per diluted share), up 68.7% compared to the prior year.
• Adjusted net income was $211.9 million ($6.13 per diluted share), up 33.6% compared to the prior year.
• GAAP operating income margin was 30.6% (up from 26.5%), while adjusted operating income margin was 42.6% (up from 39.5%).
• Consolidated total volume across all segments reached $78.5 billion, an 18.5% increase year-over-year.
• Net cash used for operating activities was $11.2 million, compared to $376.6 million provided in the prior year period.
• Adjusted free cash flow was $234.3 million, compared to $166.2 million in the prior year period.
• The company's leverage ratio was 2.7x as of September 30, 2026, down from 2.9x in June 2026 and 3.1x in March 2026.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance was raised to $2.97 billion to $2.99 billion (previously $2.86 billion to $2.90 billion).
• Full-year 2026 adjusted net income guidance was raised to $21.28 to $21.48 per diluted share (previously $19.68 to $20.08 per diluted share).
• Fourth quarter 2026 revenue guidance is $760 million to $780 million.
• Fourth quarter 2026 adjusted net income guidance is $193 million to $200 million ($5.67 to $5.87 per diluted share).
• Guidance assumptions include U.S. retail fuel prices of $4.81 per gallon for Q4 and $4.50 per gallon for the full year 2026.
• Guidance assumes an adjusted net income effective tax rate of 25.0% for both Q4 and the full year.
• Mobility credit losses are expected to be 17 to 22 basis points for Q4 and 16 to 17 basis points for the full year.
• Weighted average diluted shares outstanding are assumed to be 34.1 million for Q4 and 34.6 million for the full year.

Business Segments and Product Lines:

• Mobility Segment: Revenue was $435.1 million, up 20.6% year-over-year. Operating income margin was 38.7% and segment adjusted operating income margin was 46.9%. Payment processing transactions increased 1.7% to 142.3 million.
• Benefits Segment: Revenue was $207.6 million, up 4.8% year-over-year. Operating income margin was 28.2% and segment adjusted operating income margin was 42.2%. Average SaaS accounts grew 2.8% to 22.1 million. Average HSA custodial cash assets increased 11.2% to $5.3 billion.
• Corporate Payments Segment: Revenue was $137.4 million, up 3.5% year-over-year. Operating income margin was 41.0% and segment adjusted operating income margin was 49.9%. Purchase volume grew 6.3% to $24.6 billion, and total volume processed increased 10.1% to $47.6 billion.

Market and Competitive Landscape:

• The company serves more than 600,000 customers globally in the Mobility segment.
• The Benefits segment delivers integrated payments for HSAs, FSAs, HRAs, COBRA, and benefits enrollment directly to businesses or through a partner network.
• The Corporate Payments segment powers mid-sized businesses and global enterprises through scalable technology.
• Management noted progress in pricing, new business wins, and innovation across segments.

Risks and Challenges:

• Risks include fluctuations in fuel purchased and sold, fuel price volatility, and fuel spreads in international markets.
• General economic conditions, market volatility, inflation, and declining consumer confidence could impact demand for fuel, corporate payment services, and employee benefits products.
• Potential failure to meet Mastercard or Visa contract requirements.
• Credit losses, including fraud losses, and the ability to adequately assess credit risk.
• Regulatory changes impacting interchange fees, tax, banking, and financial regulations.
• Technology system breaches, data privacy issues, and the ability to successfully adopt AI technologies.
• Foreign currency exchange rate impacts on operations and revenue.

Management Commentary and Tone:

• CEO Melissa Smith stated the company delivered "another quarter of strong revenue and adjusted EPS, expanded margins," and returned the vast majority of adjusted free cash flow to shareholders.
• CFO Jagtar Narula highlighted "improving organic growth and significant underlying margin expansion," noting that higher fuel prices continue to contribute additional cash flow.
• Management emphasized a disciplined capital allocation strategy prioritizing opportunities that deliver attractive returns and maximize long-term shareholder value.

Other Key Points:

• Share repurchases totaled approximately $200 million during the third quarter, with an additional $75 million repurchased through October 26.
• Total share repurchases through Q3 amounted to approximately $260 million.
• The company will host a conference call on October 29, 2026, at 10:00 a.m. ET, with a live webcast available on the Investor Relations section of its website.
• Supplemental materials, including reconciliations of non-GAAP measures and segment revenue data, were filed with the SEC and posted on the company website.