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1. Company Snapshot

1.a. Company Description

WEX Inc.provides financial technology services in the United States and internationally.It operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions.


The Fleet Solutions segment offers fleet vehicle payment processing services.Its services include customer, account activation, and account retention services; authorization and billing inquiries, and account maintenance services; credit and collections services; merchant services; analytics solutions with access to web-based data analytics platform that offers insights to fleet managers; and ancillary services and tools to fleets to manage expenses and capital requirements.This segment markets its products directly and indirectly to commercial and government vehicle fleet customers with small, medium, and large fleets, as well as with over-the-road and long haul fleets; and indirectly through co-branded and private label relationships.


The Travel and Corporate Solutions segment provides payment solutions, including embedded payments; and accounts payable automation and spend management solutions.Its products include virtual cards that are used for transactions where no card is presented.This segment markets its products directly and indirectly to commercial and government organizations.


The Health and Employee Benefit Solutions segment offers healthcare payment products and software-as-a-service consumer directed platforms for healthcare market, as well as payroll related and employee benefit products in Brazil.This segment markets its products through health plans, third-party administrators, financial institutions, payroll companies benefits consultants, software providers, and individuals.The company was formerly known as Wright Express Corporation and changed its name to WEX Inc.


in October 2012.WEX Inc.was founded in 1983 and is based in Portland, Maine.

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1.b. Last Insights on WEX

WEX Inc.'s recent performance was driven by strong Q2 2025 earnings and revenue beat, with adjusted EPS exceeding guidance and revenue coming in at the top end of its guidance. The company's ability to win top-tier customers underscores the compelling value of its solutions and the strength of its business. Additionally, the Benefits segment showed resilience, offsetting declines in Mobility and Payments. The company's accounts payable automation segment experienced 25% year-over-year growth, demonstrating its ability to adapt to changing market conditions.

1.c. Company Highlights

2. WEX's Q3 2025 Earnings: Strong Mobility Performance Drives Growth

WEX reported a revenue of $691.8 million for Q3 2025, representing a 3.9% year-over-year increase, or 4.4% excluding fuel price and foreign exchange rate fluctuations. Adjusted net income per diluted share was $4.59, up 5.5%, or 7.2% excluding those fluctuations, beating analyst estimates of $4.45. The company's Mobility segment drove strong performance, with revenue and adjusted EPS exceeding guidance. The adjusted operating margin is expected to improve in Q4 compared to Q3. For 2026, operating income margins are expected to trend similarly to this year.

Publication Date: Nov -03

📋 Highlights
  • Revenue Growth:: Q3 revenue reached $691.8 million (+3.9% YoY) with adjusted EPS at $4.59 (+5.5%), showing resilience despite fuel price and FX headwinds.
  • Segment Strength:: Benefits segment revenue rose 9.2% to $198.1 million, driven by 6% SaaS account growth and 14.9% custodial investment revenue increase to $61.7 million.
  • Corporate Payments Recovery:: Revenue grew 4.7% to $132.8 million, offsetting purchase volume declines with higher net interchange rates.
  • Guidance & Outlook:: Q4 revenue guidance set at $646–$666 million, with full-year revenue expected to reach $2.63–$2.65 billion and adjusted EPS of $15.76–$15.96.
  • Margin Improvements:: Adjusted operating margin is expected to rise in Q4, with 2026 margins projected to trend similarly to 2025, reflecting operational efficiency gains.

Segment Performance

The Mobility segment saw revenue increase 1% despite a 1.4% drag from lower fuel prices and foreign exchange rates. The payment processing rate was 1.33%, up 2 basis points sequentially. The Benefits segment reported revenue of $198.1 million, a 9.2% increase, driven by 6% SaaS account growth and 14.9% growth in custodial investment revenue to $61.7 million. Corporate Payments revenue was $132.8 million, up 4.7%, as a decline in purchase volume was offset by an increase in the net interchange rate.

Guidance and Outlook

WEX's revenue guidance for Q4 is $646-$666 million, with adjusted net income EPS of $3.76-$3.96. For the full year, revenue is expected to be $2.63-$2.65 billion, with adjusted net income EPS of $15.76-$15.96. The company expects organic growth in the Mobility segment to improve in 2026 compared to 2025. Benefits SaaS ARPU has shown improving trends but is expected to remain flat going into 2026.

Valuation and Financial Health

WEX's current valuation metrics include a P/E Ratio of 17.68, P/B Ratio of 4.49, and EV/EBITDA of 6.0. The company's leverage ratio ended at 3.25x, within the long-term range of 2.5x-3.5x. WEX generated strong recurring revenue and reliable free cash flow, giving it significant capital deployment optionality. The company prioritizes maintaining a strong balance sheet, investing in core businesses, and strategically pursuing accretive M&A or returning capital to shareholders.

Growth Prospects

Analysts estimate next year's revenue growth at 4.9%. The company is well-positioned for growth, with a robust pipeline of new customer opportunities in Corporate Payments and accelerating underlying growth in Mobility. The US trucking sector faces oversupply issues, and a reduction in supply is a benefit to the space. A large public fintech company in embedded payments signed with WEX is ramping as expected, with direct account volume growth remaining strong.

3. NewsRoom

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WEX Inc. (WEX) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Connor Clark & Lunn Investment Management Ltd. Invests $338,000 in WEX Inc. $WEX

Nov -21

Source: defenseworld.net

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WEX Inc. (WEX) Presents at Citi's 14th Annual FinTech Conference Transcript

Nov -18

Source: seekingalpha.com

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WEX® Unlocks Access to 20,000+ Tesla Superchargers Across Europe

Nov -17

Source: businesswire.com

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WEX Inc. (WEX) Presents at 7th Annual Healthcare Symposium Transcript

Nov -14

Source: seekingalpha.com

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Jana Partners' Strategic Move: Significant Addition of The Cooper Companies Inc

Nov -14

Source: gurufocus.com

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WEX Inc. (WEX) Presents at KBW Fintech Payments Conference 2025 Transcript

Nov -12

Source: seekingalpha.com

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WEX Shares Decline 3.6% Since Reporting Q3 Earnings Beat

Nov -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.82%)

6. Segments

Mobility

Expected Growth: 7.5%

WEX Inc.'s Mobility segment growth of 7.5% is driven by increasing adoption of telematics and fleet management solutions, expansion in emerging markets, and rising demand for electric vehicle (EV) charging infrastructure. Additionally, strategic partnerships and investments in digital platforms have enhanced customer experience, contributing to the segment's growth.

Benefits

Expected Growth: 8.5%

WEX Inc.'s 8.5% growth is driven by increasing adoption of digital payment solutions, expansion in the fleet management sector, and growing demand for corporate payment solutions. Additionally, strategic acquisitions, partnerships, and investments in emerging technologies such as artificial intelligence and blockchain contribute to the company's growth momentum.

Corporate Payments

Expected Growth: 7.8%

The 7.8% growth in Corporate Payments from WEX Inc. is driven by increasing adoption of digital payment solutions, expansion into new markets, and growing demand for payment processing and fleet management services. Additionally, strategic partnerships and acquisitions have enhanced WEX's offerings, contributing to the segment's growth.

7. Detailed Products

Fleet Cards

WEX fleet cards provide a payment solution for businesses to manage their vehicle fueling and maintenance expenses.

Travel and Expense Solutions

WEX travel and expense solutions provide a platform for businesses to manage employee travel and expense reporting, reimbursement, and compliance.

Corporate Payments

WEX corporate payments provide a platform for businesses to manage and optimize their accounts payable and accounts receivable processes.

Health and Benefit Payments

WEX health and benefit payments provide a platform for businesses to manage and administer employee benefits, such as FSAs, HSAs, and COBRA.

Electronic Payments

WEX electronic payments provide a platform for businesses to make and receive electronic payments, reducing paper-based transactions and increasing efficiency.

8. WEX Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

WEX Inc. operates in a niche market, providing payment processing and business solutions. While there are substitutes available, they are not as comprehensive as WEX's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

WEX Inc. has a diverse customer base, including large corporations and small businesses. While customers have some bargaining power, WEX's customized solutions and strong relationships reduce their bargaining power.

Bargaining Power Of Suppliers

WEX Inc. has a strong supply chain and partnerships with major banks and financial institutions, reducing the bargaining power of suppliers.

Threat Of New Entrants

The payment processing and business solutions industry has high barriers to entry, including regulatory requirements and significant capital investments, reducing the threat of new entrants.

Intensity Of Rivalry

The payment processing and business solutions industry is competitive, with several established players. However, WEX Inc.'s diversified offerings and strong relationships with customers reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.07%
Debt Cost 6.11%
Equity Weight 31.93%
Equity Cost 11.88%
WACC 7.95%
Leverage 213.15%

11. Quality Control: WEX Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

151.28$

Current Price

151.28$

Potential

-0.00%

Expected Cash-Flows