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Jun 30
WEX Q2 2025 Earnings Report
WEX reported stronger than anticipated financial results for the second quarter of 2025, with adjusted EPS exceeding guidance and revenue at the top end of guidance.
Key Takeaways
WEX delivered robust financial results in Q2 2025, with total revenue of $659.6 million and adjusted net income of $136.2 million, or $3.95 per diluted share, exceeding expectations. Despite a 2% decrease in total revenue year-over-year, largely due to unfavorable fuel prices, the company demonstrated strong operational momentum, particularly in its Benefits segment which saw a 9% revenue increase and 6% growth in SaaS accounts. Corporate Payments' purchase volume decreased significantly, while Mobility's payment processing transactions also saw a slight decline. The company's focus on cost management and investments in sales and marketing contributed to the positive adjusted EPS.
Total revenue for Q2 2025 was $659.6 million, a 2% decrease from Q2 2024, primarily due to a $15.9 million unfavorable impact from fuel prices and spreads.
GAAP net income decreased by $8.9 million to $68.1 million, while GAAP diluted EPS increased by $0.15 to $1.98 per share.
Adjusted net income was $136.2 million, or $3.95 per diluted share, up 1% per diluted share from the prior year, exceeding guidance.
Benefits segment revenue grew 9% to $195.1 million, and average number of SaaS accounts increased 6% to 21.2 million, while Corporate Payments purchase volume decreased 20%.
WEX
WEX
WEX Revenue by Segment
Revenue by Segment
Mobility Revenue
CapyFin.comCorporate Payments Revenue
CapyFin.comBenefits Revenue
CapyFin.comPayment Processing Revenue
CapyFin.comAccount Servicing Revenue
CapyFin.comFinance Fee Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
For Q3 2025, WEX expects revenue in the range of $669 million to $689 million and adjusted net income of $4.30 to $4.50 per diluted share. For the full year 2025, revenue is projected to be between $2.61 billion and $2.65 billion, with adjusted net income per diluted share ranging from $15.37 to $15.77.
Positive Outlook
- Anticipated revenue growth for Q3 2025 and full year 2025.
- Expected increase in adjusted net income per diluted share for Q3 2025 and full year 2025.
- Guidance based on a favorable average U.S. retail fuel price assumption of $3.23 per gallon for Q3 and $3.21 for the full year.
- Positive returns from investments in sales and marketing are expected to strengthen the new business pipeline.
- Operational momentum is expected to support sustained earnings growth and long-term value for shareholders.
Challenges Ahead
- Guidance is based on non-GAAP measures, making direct comparison to GAAP measures difficult without unreasonable effort due to unpredictable adjustments.
- Uncertainty and indeterminate amounts of certain elements included in reported GAAP earnings.
- Potential for fluctuations in foreign currency exchange rates and unrealized gains/losses on financial instruments to significantly impact financial results.
- Mobility credit losses are projected to range from 13 to 18 basis points for Q3 2025 and 12 to 17 basis points for the full year.
- The fixed annual projected long-term non-GAAP tax rate could change due to evolving global tax environment, changes in geographic earnings mix, or other strategic/business operation changes.