WEX Inc. Q4 Revenue Climbs 5.7% to $672.9M with $4.11 EPS
WEX reported Q4 revenue of $672.9 million, up 5.7% year-over-year, with adjusted EPS of $4.11, a 15.1% increase. Benefits revenue rose 9.6% to $204.9 million and corporate payments jumped 17.8% to $122.9 million; Q1 revenue guidance of $650–670 million and EPS guidance of $3.80–4.00 were issued.
1. Record Quarterly Revenue and Earnings Outperform Estimates
WEX reported fourth-quarter revenue of $672.9 million, up 5.7% year-over-year driven by strength in its Benefits and Corporate Payments segments. Adjusted net income rose 15.1% per diluted share to $4.11, surpassing the consensus estimate of $3.91. GAAP net income per diluted share climbed 50.6% to $2.41, reflecting disciplined cost control and favorable foreign exchange impacts of $4.2 million, partially offset by a $3.3 million benefit from higher fuel price spreads.
2. Segment Performance Highlights
The Mobility segment generated $345.1 million in revenue, flat with prior year, serving over 600,000 fleet customers with transaction processing volumes totaling 132.5 million (down 4.3%). Benefits revenue increased 9.6% to $204.9 million, supported by a 6.0% rise in SaaS accounts to 21.6 million and an 11.6% jump in average HSA custodial assets to $4.9 billion. Corporate Payments grew 17.8% to $122.9 million, with purchase volume of $19.3 billion (up 16.9%) and total volume processed of $36.5 billion (up 18.3%). Adjusted segment operating margins were 37.3% for Mobility, 40.6% for Benefits and 48.4% for Corporate Payments.
3. Cash Flow Strength and Leverage Reduction
Operating cash flow in Q4 totaled $294.7 million, compared with $638.4 million in the prior year quarter, reflecting timing in working capital. Adjusted free cash flow increased to $261.3 million from $169.5 million. For full-year 2025, adjusted free cash flow reached $638.0 million, up from $562.0 million. The company reduced its leverage ratio to 3.1x as of December 31, 2025, down from 3.25x at the end of September, enhancing financial flexibility for strategic investments.
4. 2026 Guidance Underscores Continued Growth
WEX provided Q1 2026 revenue guidance of $650 million to $670 million and non-GAAP net income of $133 million to $140 million ($3.80 to $4.00 per share). Full-year 2026 revenue is expected between $2.70 billion and $2.76 billion, with adjusted net income of $607 million to $628 million (or $17.25 to $17.85 per share). Guidance assumes U.S. retail fuel prices near $3.10 per gallon and a 25% non-GAAP tax rate, and reflects anticipated mobility credit losses of 12–17 basis points for the year.