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Sep 30
WEX Q3 2025 Earnings Report
WEX reported its third quarter 2025 financial results, exceeding revenue and earnings guidance.
Key Takeaways
WEX delivered a strong third quarter in 2025, with total revenue increasing by 3.9% to $691.8 million, driven by robust performance in the Benefits and Corporate Payments segments. GAAP diluted EPS was $2.30, while adjusted diluted EPS reached $4.59, surpassing guidance. The company also raised its full-year 2025 revenue and adjusted net income guidance, reflecting confidence in continued growth and operational efficiency.
Total revenue for Q3 2025 increased by 3.9% year-over-year to $691.8 million, exceeding the high end of guidance.
Adjusted net income per diluted share was $4.59, up 5.5% from the prior year, also surpassing guidance expectations.
The Benefits segment showed significant growth with revenue up 9.2% and average HSA custodial cash assets increasing by 11.4%.
WEX raised its full-year 2025 revenue guidance to a range of $2.63 billion to $2.65 billion and adjusted net income guidance to $15.76 to $15.96 per diluted share.
WEX
WEX
WEX Revenue by Segment
Revenue by Segment
Mobility Revenue
CapyFin.comBenefits Revenue
CapyFin.comCorporate Payments Revenue
CapyFin.com Forward Guidance
WEX has raised its full-year 2025 revenue and adjusted net income guidance, reflecting strong performance and confidence in future growth, despite anticipating a challenging macro environment.
Positive Outlook
- Full-year 2025 revenue guidance raised to $2.63 billion to $2.65 billion.
- Full-year 2025 adjusted net income guidance raised to $15.76 to $15.96 per diluted share.
- Anticipated U.S. retail fuel prices of $3.09 per gallon for Q4 2025 and $3.27 per gallon for the full year 2025.
- Adjusted net income tax rate expected to be 25.0% for both Q4 and full year.
- Weighted average diluted shares outstanding projected at 34.9 million for Q4 and 35.9 million for the full year.
Challenges Ahead
- Fourth quarter 2025 revenue expected to be in the range of $646 million to $666 million, lower than Q3.
- Fourth quarter 2025 adjusted net income expected to be in the range of $3.76 to $3.96 per diluted share, lower than Q3.
- Mobility credit losses are projected to range from 14 to 19 basis points for Q4 2025, indicating potential for increased credit risk.
- The company acknowledges a 'challenged macro environment' which could impact future performance.
- Uncertainty and indeterminate amounts of certain elements make it difficult to reconcile non-GAAP guidance to GAAP measures without unreasonable effort.