WEX (WEX)
Market Price (7/30/2026): $188.22 | Market Cap: $6.5 BilSector: Financials | Industry: Transaction & Payment Processing Services
WEX (WEX)
Market Price (7/30/2026): $188.22Market Cap: $6.5 BilSector: FinancialsIndustry: Transaction & Payment Processing Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.4% Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -11% Stock buyback supportStock Buyback 3Y Total is 1.7 Bil Low stock price volatilityVol 12M is 40% Megatrend and thematic driversMegatrends include Fintech & Digital Payments, and Future of Freight. Themes include Digital Payments, and Freight Technology. | Trading close to highsDist 52W High is 0.0% Weak multi-year price returns2Y Excs Rtn is -29%, 3Y Excs Rtn is -64% | Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 25x Key risksWEX key risks include [1] significant financial exposure to fuel price and foreign currency volatility, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.4% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -11% |
| Stock buyback supportStock Buyback 3Y Total is 1.7 Bil |
| Low stock price volatilityVol 12M is 40% |
| Megatrend and thematic driversMegatrends include Fintech & Digital Payments, and Future of Freight. Themes include Digital Payments, and Freight Technology. |
| Trading close to highsDist 52W High is 0.0% |
| Weak multi-year price returns2Y Excs Rtn is -29%, 3Y Excs Rtn is -64% |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 25x |
| Key risksWEX key risks include [1] significant financial exposure to fuel price and foreign currency volatility, Show more. |
Qualitative Assessment
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WEX (WEX) stock has gained about 25% since 3/31/2026 because of the following key factors:
1. Exceeding Earnings Expectations and Raising Full-Year Guidance: WEX significantly outperformed analyst expectations in both fiscal Q1 2026 and fiscal Q2 2026, providing strong momentum. For fiscal Q1 2026 (results reported April 22, 2026), the company's adjusted net income of $4.15 per diluted share surpassed the high end of its guidance, and revenue grew 5.8% to $673.8 million. Building on this, fiscal Q2 2026 (results reported July 22, 2026) saw adjusted earnings per share of $5.35, beating consensus estimates of $5.08 by 5.3%, and revenue increased 14.2% year-over-year to $753.5 million, exceeding the $740.72 million consensus. Following these strong results, WEX consistently raised its full-year 2026 guidance, with the latest update forecasting revenue between $2.86 billion and $2.90 billion and adjusted net income per diluted share between $19.68 and $20.08.
2. Favorable Impact of Higher Fuel Prices: A significant macroeconomic tailwind for WEX's Mobility segment was the sustained higher domestic fuel prices. In fiscal Q2 2026, these elevated prices contributed a net favorable impact of $63.8 million to revenue and approximately $1.01 to adjusted earnings per share. The company's full-year 2026 guidance assumes U.S. retail fuel prices of $3.91 per gallon, an increase that alone boosted expected full-year revenue by about $32 million and adjusted EPS by approximately $0.46 per diluted share.
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WEX (WEX) stock has gained about 25% since 3/31/2026 because of the following key factors:
1. Exceeding Earnings Expectations and Raising Full-Year Guidance: WEX significantly outperformed analyst expectations in both fiscal Q1 2026 and fiscal Q2 2026, providing strong momentum. For fiscal Q1 2026 (results reported April 22, 2026), the company's adjusted net income of $4.15 per diluted share surpassed the high end of its guidance, and revenue grew 5.8% to $673.8 million. Building on this, fiscal Q2 2026 (results reported July 22, 2026) saw adjusted earnings per share of $5.35, beating consensus estimates of $5.08 by 5.3%, and revenue increased 14.2% year-over-year to $753.5 million, exceeding the $740.72 million consensus. Following these strong results, WEX consistently raised its full-year 2026 guidance, with the latest update forecasting revenue between $2.86 billion and $2.90 billion and adjusted net income per diluted share between $19.68 and $20.08.
2. Favorable Impact of Higher Fuel Prices: A significant macroeconomic tailwind for WEX's Mobility segment was the sustained higher domestic fuel prices. In fiscal Q2 2026, these elevated prices contributed a net favorable impact of $63.8 million to revenue and approximately $1.01 to adjusted earnings per share. The company's full-year 2026 guidance assumes U.S. retail fuel prices of $3.91 per gallon, an increase that alone boosted expected full-year revenue by about $32 million and adjusted EPS by approximately $0.46 per diluted share.
3. Substantial Share Repurchase Program: WEX announced a new open-ended $1 billion share repurchase program, signaling management's confidence in the company's valuation and commitment to returning capital to shareholders. The company actively executed this program, repurchasing approximately $60 million of common stock during fiscal Q2 2026 and an additional $33 million through July 20, deploying a total of about $93 million from May through July 20. Management indicated a near-term priority to direct the vast majority of adjusted free cash flow towards share repurchases.
4. Improved Corporate Governance and Strategic Partnerships: Corporate governance enhancements and strategic alliances also contributed to positive investor sentiment. A cooperation agreement reached with activist investor Impactive Capital in May 2026 led to the addition of three new independent directors to the board and a commitment to separate the roles of Chair and CEO after the 2026 annual meeting, addressing prior governance concerns. Additionally, around the fiscal Q2 2026 earnings release, WEX announced a new strategic partnership with Bluon, further expanding its market reach.
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Stock Movement Drivers
Fundamental Drivers
The 23.1% change in WEX stock from 3/31/2026 to 7/29/2026 was primarily driven by a 9.9% change in the company's Net Income Margin (%).| (LTM values as of) | 3312026 | 7292026 | Change |
|---|---|---|---|
| Stock Price ($) | 153.04 | 188.41 | 23.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,661 | 2,792 | 4.9% |
| Net Income Margin (%) | 11.4% | 12.6% | 9.9% |
| P/E Multiple | 17.4 | 18.6 | 7.1% |
| Shares Outstanding (Mil) | 35 | 35 | -0.3% |
| Cumulative Contribution | 23.1% |
Market Drivers
3/31/2026 to 7/29/2026| Return | Correlation | |
|---|---|---|
| WEX | 23.1% | |
| Market (SPY) | 12.2% | -6.6% |
| Sector (XLF) | 14.8% | 20.8% |
Fundamental Drivers
The 26.5% change in WEX stock from 12/31/2025 to 7/29/2026 was primarily driven by a 16.2% change in the company's Net Income Margin (%).| (LTM values as of) | 12312025 | 7292026 | Change |
|---|---|---|---|
| Stock Price ($) | 148.98 | 188.41 | 26.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,624 | 2,792 | 6.4% |
| Net Income Margin (%) | 10.8% | 12.6% | 16.2% |
| P/E Multiple | 18.1 | 18.6 | 3.2% |
| Shares Outstanding (Mil) | 34 | 35 | -0.9% |
| Cumulative Contribution | 26.5% |
Market Drivers
12/31/2025 to 7/29/2026| Return | Correlation | |
|---|---|---|
| WEX | 26.5% | |
| Market (SPY) | 7.3% | 7.6% |
| Sector (XLF) | 4.0% | 32.5% |
Fundamental Drivers
The 28.3% change in WEX stock from 6/30/2025 to 7/29/2026 was primarily driven by a 12.1% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 6302025 | 7292026 | Change |
|---|---|---|---|
| Stock Price ($) | 146.89 | 188.41 | 28.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,612 | 2,792 | 6.9% |
| Net Income Margin (%) | 12.1% | 12.6% | 4.1% |
| P/E Multiple | 18.1 | 18.6 | 2.8% |
| Shares Outstanding (Mil) | 39 | 35 | 12.1% |
| Cumulative Contribution | 28.3% |
Market Drivers
6/30/2025 to 7/29/2026| Return | Correlation | |
|---|---|---|
| WEX | 28.3% | |
| Market (SPY) | 19.1% | 19.1% |
| Sector (XLF) | 9.5% | 36.8% |
Fundamental Drivers
The 3.5% change in WEX stock from 6/30/2023 to 7/29/2026 was primarily driven by a 109.4% change in the company's Net Income Margin (%).| (LTM values as of) | 6302023 | 7292026 | Change |
|---|---|---|---|
| Stock Price ($) | 182.07 | 188.41 | 3.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,445 | 2,792 | 14.2% |
| Net Income Margin (%) | 6.0% | 12.6% | 109.4% |
| P/E Multiple | 53.5 | 18.6 | -65.2% |
| Shares Outstanding (Mil) | 43 | 35 | 24.2% |
| Cumulative Contribution | 3.5% |
Market Drivers
6/30/2023 to 7/29/2026| Return | Correlation | |
|---|---|---|
| WEX | 3.5% | |
| Market (SPY) | 70.4% | 45.4% |
| Sector (XLF) | 75.7% | 50.3% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| WEX Return | -31% | 17% | 19% | -10% | -15% | 23% | -10% |
| Peers Return | 10% | -33% | 9% | 16% | -24% | 6% | -24% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 98% |
Monthly Win Rates [3] | |||||||
| WEX Win Rate | 25% | 58% | 58% | 58% | 58% | 43% | |
| Peers Win Rate | 50% | 42% | 55% | 55% | 43% | 49% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| WEX Max Drawdown | -46% | -30% | -20% | -31% | -39% | -31% | |
| Peers Max Drawdown | -32% | -45% | -32% | -25% | -39% | -30% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: CPAY, GPN, BILL, PYPL, ADP. See WEX Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/29/2026 (YTD)
How Low Can It Go
| Event | WEX | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -26.6% | -18.8% |
| % Gain to Breakeven | 36.3% | 23.1% |
| Time to Breakeven | 105 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -17.2% | -9.5% |
| % Gain to Breakeven | 20.8% | 10.5% |
| Time to Breakeven | 70 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -17.1% | -6.7% |
| % Gain to Breakeven | 20.6% | 7.1% |
| Time to Breakeven | 93 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -11.8% | -24.5% |
| % Gain to Breakeven | 13.4% | 32.4% |
| Time to Breakeven | 7 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -64.6% | -33.7% |
| % Gain to Breakeven | 182.3% | 50.9% |
| Time to Breakeven | 1458 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -33.2% | -19.2% |
| % Gain to Breakeven | 49.7% | 23.8% |
| Time to Breakeven | 99 days | 105 days |
In The Past
WEX's stock fell -26.6% during the 2025 US Tariff Shock. Such a loss loss requires a 36.3% gain to breakeven.
Preserve Wealth
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Asset Allocation
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| Event | WEX | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -26.6% | -18.8% |
| % Gain to Breakeven | 36.3% | 23.1% |
| Time to Breakeven | 105 days | 79 days |
| 2020 COVID-19 Crash | ||
| % Loss | -64.6% | -33.7% |
| % Gain to Breakeven | 182.3% | 50.9% |
| Time to Breakeven | 1458 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -33.2% | -19.2% |
| % Gain to Breakeven | 49.7% | 23.8% |
| Time to Breakeven | 99 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -41.3% | -12.2% |
| % Gain to Breakeven | 70.5% | 13.9% |
| Time to Breakeven | 194 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -48.9% | -6.8% |
| % Gain to Breakeven | 95.6% | 7.3% |
| Time to Breakeven | 298 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -29.8% | -17.9% |
| % Gain to Breakeven | 42.4% | 21.8% |
| Time to Breakeven | 58 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -76.2% | -53.4% |
| % Gain to Breakeven | 319.8% | 114.4% |
| Time to Breakeven | 619 days | 1085 days |
In The Past
WEX's stock fell -26.6% during the 2025 US Tariff Shock. Such a loss loss requires a 36.3% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About WEX (WEX)
WEX Inc. is a financial technology company that provides payment processing and information management solutions across various sectors globally. Its largest segment, Fleet Solutions, specializes in payment processing services for commercial and government vehicle fleets. This includes managing customer accounts, providing credit and collections, supporting merchant services, and offering data analytics tools to help fleet managers track expenses and optimize operations. WEX serves fleets of all sizes, from small businesses to large corporations and government agencies, often through direct sales or partnerships.
Beyond fleet management, WEX also offers comprehensive payment solutions for commercial and government organizations through its Travel and Corporate Solutions segment. This segment focuses on accounts payable automation, spend management, and embedded payments, primarily utilizing virtual cards for secure and efficient transactions. Lastly, the Health and Employee Benefit Solutions segment provides healthcare payment products and software-as-a-service (SaaS) platforms for consumer-directed healthcare. It also extends to payroll and employee benefit products in Brazil, serving a diverse clientele including health plans, financial institutions, and individuals.
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WEX is like a specialized Visa or Mastercard for businesses, managing payments and expenses for fleet vehicles, corporate travel, and employee health benefits.
WEX is like SAP Concur, but also provides specialized B2B payment cards and platforms for fleet management, corporate travel, and healthcare benefits.
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- Fleet Vehicle Payment Processing Services: Provides payment processing and management tools for commercial and government vehicle fleets.
- Travel and Corporate Payment Solutions: Offers various payment solutions, including embedded payments and virtual cards, for commercial and government organizations.
- Accounts Payable Automation and Spend Management: Delivers solutions to automate accounts payable and manage spending for businesses.
- Healthcare Payment Products: Provides specific payment solutions for the healthcare market.
- Healthcare SaaS Consumer Directed Platforms: Offers software platforms enabling consumers to manage their healthcare benefits.
- Payroll and Employee Benefit Products: Supplies payroll-related and employee benefit solutions, particularly in Brazil.
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Major Customers of WEX Inc.
Based on the provided company description, WEX Inc. primarily sells its financial technology services to other companies and government organizations (B2B). The background information describes the categories of customers WEX serves rather than listing specific major customer company names.
WEX's major customer categories include:
- Commercial and Government Vehicle Fleet Customers: This segment serves organizations with small, medium, and large fleets, as well as over-the-road and long-haul fleets, providing them with payment processing services, analytics solutions, and tools for managing expenses and capital requirements. WEX also works through co-branded and private label relationships with other companies serving these fleets.
- Commercial and Government Organizations (General): These customers utilize WEX's payment solutions for accounts payable automation and spend management, including virtual cards for transactions.
- Healthcare Market and Employee Benefit Providers: WEX offers healthcare payment products and software-as-a-service consumer-directed platforms to entities such as health plans, third-party administrators, financial institutions, payroll companies, benefits consultants, and software providers.
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- Visa Inc. (V)
- Mastercard Incorporated (MA)
- U.S. Bancorp (USB)
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Melissa Smith, Chair, CEO, and President
Melissa Smith joined WEX in 1997 as a senior financial analyst. She became Chief Financial Officer at age 32 and was instrumental in WEX's initial public offering in 2005. In 2014, she was appointed CEO, and in 2019, she became the first female Chair of the WEX board. Prior to her time at WEX, Ms. Smith worked at Ernst & Young in Portland, Maine. She has led WEX through significant growth, both organically and through acquisitions.
Jagtar Narula, Chief Financial Officer
Jagtar Narula was appointed Chief Financial Officer of WEX, effective May 25, 2022. Before joining WEX, he served as CFO of 3D Systems Corporation. His previous experience includes overseeing corporate strategy and business development for Blackbaud, Inc., where he also managed investor relations, financial planning, and investment strategy. Mr. Narula held several finance leadership roles at Xerox, focusing on financial planning, acquisition operations, and strategy. Earlier in his career, he spent nearly ten years in investment banking and private equity. He has a strong background in executing and integrating acquisitions.
Hilary Rapkin, Chief Legal Officer, Corporate Secretary
Hilary Rapkin has been with WEX for more than two decades, having joined the company in 1996 as its first lawyer. In her role, she oversees WEX's global legal, regulatory compliance, government affairs, and corporate philanthropy functions. Ms. Rapkin was involved in WEX's IPO in 2005. She previously served as a Director at TelaPoint, Inc.
Karen Stroup, Chief Digital Officer
Karen Stroup joined WEX in 2022 as the company's first Chief Digital Officer. She brings over 15 years of experience in leading product management, digital, and innovation organizations, primarily within financial services and focused on software-as-a-service offerings. Prior to WEX, Ms. Stroup was the Chief Digital Officer at Thomson Reuters. Her previous roles include SVP, Product and Innovation at Capital One Financial Services, and VP, Product Management at Intuit.
Carlos Carriedo, Chief Operating Officer, International
Carlos Carriedo joined WEX on January 3, 2022, in the newly created role of Chief Operating Officer, International. In this position, he is responsible for leading WEX's operations across Europe, the Middle East, Africa (EMEA), and Asia Pacific (APAC). Mr. Carriedo has over two decades of experience in driving global business growth through multinational innovation and digital transformation initiatives. Before WEX, he served as the General Manager of Commercial Services for Europe at American Express and was also the Chairman of American Express Bank of Russia. He also held various positions at American Express managing commercial services in international markets and worked as an analyst at Deloitte Consulting.
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Key Risks to WEX
- Intense Competition Across Segments: WEX operates in highly competitive markets for its Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions segments. The company faces significant rivalry from direct competitors like Corpay, large financial institutions, global payment networks such as Visa and Mastercard, and other benefits technology providers. This intense competition can pressure margins, impact pricing power, and threaten WEX's market leadership in its core offerings.
- Exposure to Fuel Price Volatility and the Electric Vehicle (EV) Transition: WEX's Fleet Solutions segment, which generates a substantial portion of its revenue, is inherently exposed to fluctuations in fuel prices and volumes. Declining fuel prices can negatively affect revenue in this segment. Furthermore, the ongoing shift towards fleet electrification poses a long-term risk to the demand for traditional fuel cards, potentially impacting WEX's foundational business. While WEX is investing in EV-related solutions, a failure to adapt quickly or loss of market share during this transition could be detrimental.
- Fraud and Cybersecurity Risks: As a financial technology company processing a high volume of payments and handling sensitive data across its diverse business segments, WEX is continuously exposed to fraud and cybersecurity threats. In its Fleet Solutions segment, there's a risk of losses from fuel theft, misallocation, and fraudulent transactions like card cloning. For its Health and Employee Benefit Solutions, the increasing digitalization of benefits administration makes it an attractive target for fraudsters, leading to potential financial leakage, exposure of employee data, and regulatory risks. While WEX implements fraud prevention measures, the evolving nature of these threats requires constant vigilance and investment.
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The widespread adoption and electrification of vehicle fleets, necessitating a fundamental shift from traditional fuel payment processing to managing diverse electric vehicle (EV) charging and energy expenses. This could allow new specialized payment and management solution providers to emerge and gain market share, potentially challenging WEX's established Fleet Solutions segment if its offerings do not rapidly and comprehensively adapt to the EV ecosystem.
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WEX Inc. (NYSE: WEX) is expected to drive future revenue growth over the next two to three years through several strategic initiatives across its business segments.
One primary driver is **strategic investments in product innovation and technology**. WEX is heavily investing in artificial intelligence (AI) to enhance product development and operational efficiency, with AI reportedly writing 40% of its code, thereby streamlining processes and improving customer experience. The company is also expanding its offerings for electric vehicles (EVs), including fleet cards with EV payment capabilities, and has acquired companies like Sawatch Labs to support fleet electrification. Additionally, WEX is launching new applications, such as 10-4 BY WEX and PACER, and has integrated capabilities from recent acquisitions like Payzer and Ascensus' Health and Benefits line of business to meet evolving customer needs and expand its product suite.
Another significant growth driver is the **expansion of its customer base and market penetration**. WEX's long-term strategy includes a strong focus on customer retention and acquiring new businesses. The company aims to increase sales momentum through cross-selling existing products to its current customer base and by utilizing digital go-to-market strategies. Growth in its direct business within the Mobility segment and strategic partnerships, such as with Trucker Path, are also expected to contribute to broadening its market reach and customer acquisition.
Finally, **continued strong performance and expansion within its key business segments** are anticipated to fuel revenue growth. The Corporate Payments segment has demonstrated robust purchase volume growth, particularly from its travel customers, with WEX consistently outpacing the overall travel market's growth. The Health and Employee Benefit Solutions segment is experiencing strong growth, driven by an increase in Software-as-a-Service (SaaS) accounts and the growth of Health Savings Account (HSA) custodial cash assets, which provide a significant new revenue stream. Furthermore, legislative changes expanding HSA eligibility could also benefit this segment. While the Fleet Solutions (Mobility) segment has faced some headwinds, underlying revenue growth is expected to accelerate, supported by acquisitions like Payzer and the anticipated BP portfolio conversion in the latter half of the year.
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Share Repurchases
- In 2025, WEX repurchased $801.6 million of its common stock.
- The company repurchased approximately $650 million of its common stock in 2024.
- WEX repurchased approximately $295 million of its common stock in 2023.
- WEX's board of directors authorized an increase in the share repurchase program to $2.05 billion through December 31, 2025, in September 2024.
Share Issuance
- WEX did not report significant share issuances for capital raising purposes during the last 3-5 years. However, routine equity compensation activity, such as the vesting of restricted stock units (RSUs) and subsequent withholding of shares for tax obligations, occurred regularly.
Inbound Investments
- In 2025, WEX completed a private offering of $550 million in senior unsecured notes due in 2033 and amended its Credit Agreement to establish an incremental tranche of senior secured term loans amounting to $450 million. These funds were primarily used to fund a Tender Offer and repay outstanding debt.
Outbound Investments
- In 2021, WEX acquired the health savings account (HSA) assets of HealthCare Bank for approximately $250 million, with $200 million paid in cash upfront and deferred payments in July 2023 and January 2024.
- WEX acquired Benefit Express Services, LLC on June 1, 2021.
- In 2023, WEX expanded its offerings with the acquisitions of Payzer and Ascensus' Health and Benefits line of business.
- The company purchased a factoring portfolio in January 2025 and plans to close on the acquisition of a card program portfolio in early 2026 for an anticipated purchase price not exceeding $35 million.
Capital Expenditures
- Increased capital expenditures in 2023 were noted as a primary reason for a marginal decrease in adjusted free cash flow from 2022.
- WEX made strategic investments in AI and technology infrastructure projects in 2023 to advance its strategic priorities.
- The company has focused on strategic acquisitions and capital investments to drive growth.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| WEX Earnings Notes | 12/22/2025 | |
| Is WEX Stock Built to Withstand a Pullback? | 10/17/2025 | |
| WEX vs Cheniere Energy: Which Is A Better Investment? | 08/18/2025 | |
| WEX vs Interactive Brokers: Which Is A Better Investment? | 08/18/2025 | |
| How Does WEX Stock Stack Up Against Its Peers? | 08/13/2025 | |
| Better Bet Than WEX Stock: Pay Less Than WEX To Get More From UNH, OKE | 08/12/2025 | |
| Better Bet Than WEX Stock: Pay Less Than WEX To Get More From IBKR, JEF | 08/12/2025 | |
| Better Bet Than WEX Stock: Pay Less Than WEX To Get More From EEFT | 08/12/2025 | |
| WEX Dip Buy Analysis | 07/10/2025 |
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 138.34 |
| Mkt Cap | 25.3 |
| Rev LTM | 6,825 |
| Op Inc LTM | 1,560 |
| FCF LTM | 1,186 |
| FCF 3Y Avg | 1,565 |
| CFO LTM | 1,665 |
| CFO 3Y Avg | 1,997 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 10.0% |
| Rev Chg 3Y Avg | 6.5% |
| Rev Chg Q | 13.9% |
| QoQ Delta Rev Chg LTM | 3.3% |
| Op Inc Chg LTM | 7.2% |
| Op Inc Chg 3Y Avg | 9.9% |
| Op Mgn LTM | 21.9% |
| Op Mgn 3Y Avg | 22.0% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 23.1% |
| CFO/Rev 3Y Avg | 23.6% |
| FCF/Rev LTM | 19.9% |
| FCF/Rev 3Y Avg | 20.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 25.3 |
| P/S | 2.8 |
| P/Op Inc | 11.1 |
| P/EBIT | 14.2 |
| P/E | 20.6 |
| P/CFO | 15.4 |
| Total Yield | 4.9% |
| Dividend Yield | 0.2% |
| FCF Yield 3Y Avg | 6.6% |
| D/E | 0.4 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 27.8% |
| 3M Rtn | 26.1% |
| 6M Rtn | 16.3% |
| 12M Rtn | 6.4% |
| 3Y Rtn | -8.2% |
| 1M Excs Rtn | 29.5% |
| 3M Excs Rtn | 23.4% |
| 6M Excs Rtn | 9.8% |
| 12M Excs Rtn | -10.3% |
| 3Y Excs Rtn | -71.9% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Mobility | 1,386 | 1,401 | 1,383 | 1,444 | 1,111 |
| Benefits | 797 | 740 | 668 | 504 | 414 |
| Corporate Payments | 477 | 488 | 497 | 402 | 325 |
| Total | 2,661 | 2,628 | 2,548 | 2,350 | 1,850 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Mobility | 541 | 598 | 599 | 693 | 557 |
| Benefits | 342 | 307 | 242 | 134 | 104 |
| Corporate Payments | 213 | 256 | 277 | 193 | 87 |
| Other acquisition and divestiture related items | -3 | -6 | -7 | -18 | -40 |
| Legal settlement | -10 | ||||
| Other costs | -25 | -54 | -46 | -40 | -23 |
| Unallocated corporate expenses | -98 | -102 | -103 | -84 | -78 |
| Stock-based compensation | -104 | -112 | -132 | -101 | -77 |
| Acquisition-related intangible amortization | -192 | -202 | -184 | -170 | -182 |
| Impairment charges | -136 | 0 | |||
| Debt restructuring costs | -6 | ||||
| Total | 664 | 686 | 647 | 470 | 342 |
Price Behavior
| Market Price | $188.41 | |
| Market Cap ($ Bil) | 6.5 | |
| First Trading Date | 02/16/2005 | |
| Distance from 52W High | 0.0% | |
| 50 Days | 200 Days | |
| DMA Price | $148.01 | $152.28 |
| DMA Trend | down | down |
| Distance from DMA | 27.3% | 23.7% |
| 3M | 1YR | |
| Volatility | 43.6% | 39.9% |
| Downside Capture | -81.10 | 78.50 |
| Upside Capture | 21.35 | 74.12 |
| Correlation (SPY) | -15.3% | 20.0% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.26 | -0.17 | 0.11 | 0.47 | 0.75 | 1.16 |
| Up Beta | -1.10 | -1.44 | -0.64 | -0.15 | 0.07 | 1.31 |
| Down Beta | 1.68 | 0.48 | 0.24 | 0.90 | 0.87 | 1.34 |
| Up Capture | 0% | -22% | 17% | 38% | 75% | 54% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 10 | 21 | 35 | 61 | 129 | 390 |
| Down Capture | 29% | 20% | 101% | 77% | 109% | 103% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 11 | 20 | 28 | 64 | 122 | 360 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WEX | |
|---|---|---|---|---|
| WEX | 7.1% | 39.8% | 0.27 | - |
| Sector ETF (XLF) | 8.1% | 14.8% | 0.31 | 36.6% |
| Equity (SPY) | 15.6% | 12.8% | 0.86 | 18.8% |
| Gold (GLD) | 21.6% | 28.1% | 0.68 | -4.4% |
| Commodities (DBC) | 31.5% | 19.7% | 1.27 | 8.0% |
| Real Estate (VNQ) | 15.9% | 14.0% | 0.82 | 17.7% |
| Bitcoin (BTCUSD) | -46.1% | 42.9% | -1.32 | 16.8% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WEX | |
|---|---|---|---|---|
| WEX | -0.5% | 37.2% | 0.08 | - |
| Sector ETF (XLF) | 11.0% | 18.4% | 0.46 | 54.5% |
| Equity (SPY) | 12.4% | 17.1% | 0.55 | 52.0% |
| Gold (GLD) | 17.1% | 18.4% | 0.75 | 5.1% |
| Commodities (DBC) | 9.3% | 19.5% | 0.36 | 23.2% |
| Real Estate (VNQ) | 2.9% | 18.9% | 0.05 | 41.9% |
| Bitcoin (BTCUSD) | 14.7% | 53.3% | 0.46 | 20.6% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with WEX | |
|---|---|---|---|---|
| WEX | 7.3% | 40.2% | 0.31 | - |
| Sector ETF (XLF) | 13.5% | 22.0% | 0.56 | 65.6% |
| Equity (SPY) | 14.7% | 17.9% | 0.70 | 62.5% |
| Gold (GLD) | 11.3% | 16.1% | 0.57 | 1.0% |
| Commodities (DBC) | 7.1% | 18.0% | 0.32 | 33.6% |
| Real Estate (VNQ) | 5.1% | 20.7% | 0.21 | 54.3% |
| Bitcoin (BTCUSD) | 57.7% | 66.2% | 0.98 | 15.3% |
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Earnings Returns History
Updated 7/30/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/22/2026 | 10.1% | 21.0% | |
| 4/22/2026 | -16.3% | -16.4% | -19.3% |
| 2/4/2026 | -0.2% | 11.3% | 12.2% |
| 10/29/2025 | -1.6% | -3.6% | -4.9% |
| 7/23/2025 | 6.5% | 5.1% | 3.8% |
| 4/30/2025 | -6.8% | -7.0% | 2.0% |
| 2/5/2025 | -18.7% | -19.2% | -15.0% |
| 10/24/2024 | -15.0% | -18.4% | -14.7% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 8 | 11 | 8 |
| # Negative | 17 | 14 | 16 |
| Median Positive | 4.4% | 5.1% | 7.3% |
| Median Negative | -6.0% | -8.6% | -7.3% |
| Max Positive | 10.1% | 21.0% | 35.9% |
| Max Negative | -18.7% | -19.2% | -28.4% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/22/2026 | 10.1% | 21.0% | |
| 4/22/2026 | -16.3% | -16.4% | -19.3% |
| 2/4/2026 | -0.2% | 11.3% | 12.2% |
| 10/29/2025 | -1.6% | -3.6% | -4.9% |
| 7/23/2025 | 6.5% | 5.1% | 3.8% |
| 4/30/2025 | -6.8% | -7.0% | 2.0% |
| 2/5/2025 | -18.7% | -19.2% | -15.0% |
| 10/24/2024 | -15.0% | -18.4% | -14.7% |
| 7/25/2024 | -3.7% | 2.6% | 1.8% |
| 4/25/2024 | -7.8% | -10.2% | -19.2% |
| 2/8/2024 | 2.3% | 6.6% | 13.1% |
| 10/26/2023 | -8.0% | -6.3% | -2.8% |
| 7/27/2023 | -2.9% | -3.6% | -5.8% |
| 4/27/2023 | -0.6% | -4.1% | -3.8% |
| 2/9/2023 | 7.1% | 6.1% | -3.5% |
| 10/27/2022 | 7.1% | 5.8% | 10.8% |
| 7/28/2022 | -0.1% | 0.2% | -1.9% |
| 4/28/2022 | 1.1% | 4.1% | 0.3% |
| 2/10/2022 | 1.1% | 3.4% | -2.7% |
| 10/28/2021 | -12.7% | -19.1% | -28.4% |
| 7/29/2021 | -4.1% | -12.1% | -11.3% |
| 4/29/2021 | -6.4% | -11.6% | -15.1% |
| 2/24/2021 | 0.0% | -6.5% | -8.8% |
| 10/29/2020 | -5.7% | 4.8% | 35.9% |
| 7/30/2020 | -6.0% | -2.6% | -4.7% |
| SUMMARY STATS | |||
| # Positive | 8 | 11 | 8 |
| # Negative | 17 | 14 | 16 |
| Median Positive | 4.4% | 5.1% | 7.3% |
| Median Negative | -6.0% | -8.6% | -7.3% |
| Max Positive | 10.1% | 21.0% | 35.9% |
| Max Negative | -18.7% | -19.2% | -28.4% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/23/2026 | 10-Q |
| 03/31/2026 | 04/23/2026 | 10-Q |
| 12/31/2025 | 02/13/2026 | 10-K |
| 09/30/2025 | 10/30/2025 | 10-Q |
| 06/30/2025 | 07/24/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/20/2025 | 10-K |
| 09/30/2024 | 10/24/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 04/25/2024 | 10-Q |
| 12/31/2023 | 02/23/2024 | 10-K |
| 09/30/2023 | 10/27/2023 | 10-Q |
| 06/30/2023 | 07/27/2023 | 10-Q |
| 03/31/2023 | 04/27/2023 | 10-Q |
| 12/31/2022 | 02/28/2023 | 10-K |
| 09/30/2022 | 10/28/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/23/2026 | 10-Q |
| 03/31/2026 | 04/23/2026 | 10-Q |
| 12/31/2025 | 02/13/2026 | 10-K |
| 09/30/2025 | 10/30/2025 | 10-Q |
| 06/30/2025 | 07/24/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/20/2025 | 10-K |
| 09/30/2024 | 10/24/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 04/25/2024 | 10-Q |
| 12/31/2023 | 02/23/2024 | 10-K |
| 09/30/2023 | 10/27/2023 | 10-Q |
| 06/30/2023 | 07/27/2023 | 10-Q |
| 03/31/2023 | 04/27/2023 | 10-Q |
| 12/31/2022 | 02/28/2023 | 10-K |
| 09/30/2022 | 10/28/2022 | 10-Q |
| 06/30/2022 | 07/29/2022 | 10-Q |
| 03/31/2022 | 05/03/2022 | 10-Q |
| 12/31/2021 | 03/01/2022 | 10-K |
| 09/30/2021 | 11/09/2021 | 10-Q |
| 06/30/2021 | 08/04/2021 | 10-Q |
| 03/31/2021 | 05/06/2021 | 10-Q |
| 12/31/2020 | 03/01/2021 | 10-K |
| 09/30/2020 | 11/09/2020 | 10-Q |
| 06/30/2020 | 08/05/2020 | 10-Q |
| 03/31/2020 | 05/11/2020 | 10-Q |
| 12/31/2019 | 02/28/2020 | 10-K |
| 09/30/2019 | 11/08/2019 | 10-Q |
Recent Forward Guidance
Updated 7/27/2026Latest: Q2 2026 Earnings Reported 7/22/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | 733.00 Mil | 743.00 Mil | 753.00 Mil | 0.8% | Higher New | Guidance: 737.00 Mil for Q2 2026 | |
| Q3 2026 Adjusted Net Income | 189.00 Mil | 192.50 Mil | 196.00 Mil | 9.1% | Higher New | Guidance: 176.50 Mil for Q2 2026 | |
| Q3 2026 EPS | 5.45 | 5.55 | 5.65 | 10.3% | Higher New | Guidance: 5.03 for Q2 2026 | |
| 2026 Revenue | 2.86 Bil | 2.88 Bil | 2.90 Bil | 1.1% | Raised | Guidance: 2.85 Bil for 2026 | |
| 2026 Adjusted Net Income | 689.00 Mil | 696.00 Mil | 703.00 Mil | 2.7% | Raised | Guidance: 677.50 Mil for 2026 | |
| 2026 EPS | 19.7 | 19.9 | 20.1 | 3.3% | Raised | Guidance: 19.2 for 2026 | |
Prior: Q1 2026 Earnings Reported 4/22/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 727.00 Mil | 737.00 Mil | 747.00 Mil | ||||
| Q2 2026 Adjusted Net Income | 173.00 Mil | 176.50 Mil | 180.00 Mil | ||||
| Q2 2026 EPS | 4.93 | 5.03 | 5.13 | ||||
| 2026 Revenue | 2.82 Bil | 2.85 Bil | 2.88 Bil | 4.4% | Raised | Guidance: 2.73 Bil for 2026 | |
| 2026 Adjusted Net Income | 667.00 Mil | 677.50 Mil | 688.00 Mil | 9.7% | Raised | Guidance: 617.50 Mil for 2026 | |
| 2026 EPS | 18.9 | 19.2 | 19.6 | 9.7% | Raised | Guidance: 17.6 for 2026 | |
Q4 2025 Earnings Reported 2/4/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 650.00 Mil | 660.00 Mil | 670.00 Mil | 0.6% | Higher New | Guidance: 656.00 Mil for Q4 2025 | |
| Q1 2026 Adjusted Net Income | 133.00 Mil | 136.50 Mil | 140.00 Mil | ||||
| Q1 2026 EPS | 3.8 | 3.9 | 4 | 1.0% | Higher New | Guidance: 3.86 for Q4 2025 | |
| 2026 Revenue | 2.70 Bil | 2.73 Bil | 2.76 Bil | 3.4% | Higher New | Guidance: 2.64 Bil for 2025 | |
| 2026 Adjusted Net Income | 607.00 Mil | 617.50 Mil | 628.00 Mil | ||||
| 2026 EPS | 17.2 | 17.6 | 17.9 | 10.7% | Higher New | Guidance: 15.9 for 2025 | |
Q3 2025 Earnings Reported 10/29/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2025 Revenue | 646.00 Mil | 656.00 Mil | 666.00 Mil | -3.4% | Lower New | Guidance: 679.00 Mil for Q3 2025 | |
| Q4 2025 Adjusted Net Income per diluted share | 3.76 | 3.86 | 3.96 | -12.3% | Lower New | Guidance: 4.4 for Q3 2025 | |
| 2025 Revenue | 2.63 Bil | 2.64 Bil | 2.65 Bil | 0.4% | Raised | Guidance: 2.63 Bil for 2025 | |
| 2025 Adjusted Net Income per diluted share | 15.8 | 15.9 | 16 | 1.9% | Raised | Guidance: 15.6 for 2025 | |
Insider Activity
Updated 7/29/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Kimball, Jennifer | Chief Accounting Officer | Direct | Sell | 7292026 | 176.55 | 1,183 | 208,859 | 867,920 | Form |
| 2 | Drew, Ann Elena | Chief Risk and Compliance | Direct | Sell | 7292026 | 176.02 | 3,400 | 598,468 | 1,406,048 | Form |
| 3 | Deshaies, Robert Joseph | COO, Benefits | Direct | Sell | 7082026 | 148.40 | 2,000 | 296,796 | 3,010,695 | Form |
| 4 | Deshaies, Robert Joseph | COO, Benefits | Direct | Sell | 6012026 | 144.84 | 1,200 | 173,808 | 3,228,194 | Form |
| 5 | Groch, James R | Direct | Buy | 5182026 | 142.95 | 1,500 | 214,425 | 2,566,953 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Kimball, Jennifer | Chief Accounting Officer | Direct | Sell | 7292026 | 176.55 | 1,183 | 208,859 | 867,920 | Form |
| 2 | Drew, Ann Elena | Chief Risk and Compliance | Direct | Sell | 7292026 | 176.02 | 3,400 | 598,468 | 1,406,048 | Form |
| 3 | Deshaies, Robert Joseph | COO, Benefits | Direct | Sell | 7082026 | 148.40 | 2,000 | 296,796 | 3,010,695 | Form |
| 4 | Deshaies, Robert Joseph | COO, Benefits | Direct | Sell | 6012026 | 144.84 | 1,200 | 173,808 | 3,228,194 | Form |
| 5 | Groch, James R | Direct | Buy | 5182026 | 142.95 | 1,500 | 214,425 | 2,566,953 | Form | |
| 6 | Dearborn, Joel Alan JR | COO, International | Direct | Sell | 4202026 | 175.00 | 3,500 | 612,500 | 4,002,600 | Form |
| 7 | Dearborn, Joel Alan JR | COO, International | Direct | Sell | 4022026 | 152.14 | 3,500 | 532,489 | 4,012,226 | Form |
| 8 | Kimball, Jennifer | Chief Accounting Officer | Direct | Sell | 3232026 | 147.66 | 104 | 15,357 | 900,578 | Form |
| 9 | Kimball, Jennifer | Chief Accounting Officer | Direct | Sell | 3182026 | 157.82 | 715 | 112,841 | 978,957 | Form |
| 10 | Trickett, Sara | Chief Legal Officer | Direct | Sell | 2252026 | 149.95 | 1,815 | 272,159 | 320,443 | Form |
| 11 | Deshaies, Robert Joseph | COO, Benefits | Direct | Sell | 2252026 | 150.22 | 3,238 | 486,416 | 2,232,136 | Form |
| 12 | Carriedo, Carlos | COO, Amer. Payments & Mobility | Direct | Sell | 2182026 | 159.90 | 1,575 | 251,848 | 590,843 | Form |
| 13 | Deshaies, Robert Joseph | COO, Benefits | Direct | Sell | 2132026 | 166.00 | 1,032 | 171,312 | 2,606,034 | Form |
| 14 | Kimball, Jennifer | Chief Accounting Officer | Direct | Sell | 12222025 | 151.40 | 494 | 74,792 | 555,789 | Form |
| 15 | Deshaies, Robert Joseph | COO, Benefits | Direct | Sell | 12012025 | 149.62 | 1,506 | 225,328 | 2,348,884 | Form |
| 16 | Smith, Stephen Montgomery | Direct | Buy | 11172025 | 144.25 | 1,000 | 144,250 | 1,149,817 | Form | |
| 17 | Drew, Ann Elena | Chief Risk and Compliance | Direct | Sell | 8082025 | 171.69 | 1,931 | 331,533 | 1,252,479 | Form |
| 18 | Carriedo, Carlos | COO, Amer. Payments & Mobility | Direct | Sell | 8042025 | 171.68 | 875 | 150,224 | 904,776 | Form |
Investor Activity (13F)
Updated Jul 30, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Impactive Capital LP | $261.3 Mil | 18.9% | 10 | TRIM -22.2% | 13F |
| Par Capital Management Inc | $345.1 Mil | 10.0% | 45 | Hold | 13F |
| Solel Partners LP | $25.6 Mil | 5.5% | 19 | Hold | 13F |
| Sunriver Management LLC | $31.2 Mil | 5.3% | 18 | TRIM -38.1% | 13F |
| Turtle Creek Asset Management Inc. | $102.4 Mil | 3.8% | 39 | ADD +58.5% | 13F |
| Rhino Investment Partners, Inc | $9.4 Mil | 2.6% | 39 | ADD +45.7% | 13F |
| Lone Peak Global Investors LLC | $14.1 Mil | 2.4% | 42 | Hold | 13F |
| Lightrock Netherlands B.V. | $9.2 Mil | 2.0% | 39 | Hold | 13F |
| Lyrical Asset Management LP | $116.5 Mil | 1.8% | 39 | Hold | 13F |
| Hawk Ridge Capital Management LP | $25.0 Mil | 0.9% | 48 | TRIM -64.0% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Par Capital Management Inc | $345.1 Mil | 10.0% | 45 | Hold | 13F |
| Impactive Capital LP | $261.3 Mil | 18.9% | 10 | TRIM -22.2% | 13F |
| Lyrical Asset Management LP | $116.5 Mil | 1.8% | 39 | Hold | 13F |
| Turtle Creek Asset Management Inc. | $102.4 Mil | 3.8% | 39 | ADD +58.5% | 13F |
| Sunriver Management LLC | $31.2 Mil | 5.3% | 18 | TRIM -38.1% | 13F |
| Solel Partners LP | $25.6 Mil | 5.5% | 19 | Hold | 13F |
| Hawk Ridge Capital Management LP | $25.0 Mil | 0.9% | 48 | TRIM -64.0% | 13F |
| Lone Peak Global Investors LLC | $14.1 Mil | 2.4% | 42 | Hold | 13F |
| Rhino Investment Partners, Inc | $9.4 Mil | 2.6% | 39 | ADD +45.7% | 13F |
| Lightrock Netherlands B.V. | $9.2 Mil | 2.0% | 39 | Hold | 13F |
WEX Trade Sentinel
Constructive
CONVICTION RATIONALE
WEX is successfully executing a pivot, evidenced by raised 2026 guidance and a commitment to return cash via buybacks. While core Mobility volumes have stabilized, the recent decline in Corporate Payments volume is a key concern. Conviction rests on management delivering its guided H2 reacceleration, driven by new contracts and pricing.
STOCK ARCHETYPE
Diversified Transactional & Service Fees(Volume of Transactions x Take Rate) + (Number of SaaS Accounts x Fee per Account) + (Custodial Assets x Yield) Scaling the higher-margin Benefits and Corporate Payments segments, executing on pricing actions, and driving operating leverage through AI-powered efficiencies and a shared services platform.
INVESTMENT THESIS
Evidence suggests a successful transition is underway, driven by strong execution, margin expansion, and a new focus on shareholder returns.
- Full-year 2026 EPS guidance was raised, with a new midpoint of $19.90.
- Management committed to over 100 basis points of margin expansion in H2 2026.
- The large BP portfolio was fully online in Q2, with contributions weighted to H2.
- New pricing actions in Mobility are expected to add $15 million in 2026 revenue.
- The company is prioritizing buybacks, directing the majority of adjusted FCF to repurchases.
PRIMARY RISK
Underlying volumes are weak, with Corporate Payments purchase volume declining 3.6% in Q2. This suggests the growth story is faltering, masked by temporary fuel price benefits, and that peer Corpay is winning with 43% volume growth.
- Corporate Payments purchase volume decreased 3.6% YoY in Q2 2026.
- Mobility payment processing transactions were nearly flat, up only 0.1% YoY.
- Accounts receivable grew 21.3% YoY, outpacing revenue growth of 14.3%.
- Trailing-twelve-month cash conversion from net income is low, with a ratio of 0.75.
| KPI | Status | Rationale |
|---|---|---|
| Mobility Payment Processing Transactions | 139.3 million for Q2 2026 - Turning around | The YoY trend has stabilized, improving from a 3% decline in the prior quarter to flat in the latest quarter. The strong sequential growth is an "encouraging indicator of improving activity," which management attributes to company-specific execution like the BP portfolio coming online and investments in new sales, as the broader trucking market demand remains constrained. |
| Corporate Payments Purchase Volume | $19.8 billion for Q2 2026 - Decelerating | The YoY growth trend has decelerated sharply from +16.9% two quarters ago and +3.6% in the prior quarter to a 3.6% decline. Management attributes the latest quarter's decline to the timing of volumes from a large travel customer and another contract paying minimums, which together had an approximate 5% negative impact. A bright spot is the Direct AP business, where volume reaccelerated to 20% growth. |
| Benefits Average Number of SaaS Accounts | 21.7 million (Q2 2026) | This metric reflects the number of employee accounts on the Benefits platform, serving as the primary base for recurring software and administrative service fees. Consistent growth indicates successful client acquisition and retention. |
Execution Strength vs. Volume Weakness
BULL VIEW
Management's strong execution, including a beat-and-raise quarter and hitting leverage targets, will drive a guided H2 reacceleration in organic growth to its 5-10% target range, proving recent volume softness was temporary.
CORE TENSION
Can guided H2 catalysts, like the BP portfolio ramp and new pricing, overcome the Q2 Corporate Payments volume decline of 3.6%?
PREVAILING SENTIMENT
The latest evidence favors the bulls. The market's 13.0% post-earnings rally shows it believes management's explanation and forward guidance for a H2 2026 recovery.
BEAR VIEW
The 3.6% decline in Corporate Payments volume and flat Mobility transactions are early signs of a structural slowdown. The strong Q2 results were a fuel-price illusion, and the growth story is breaking.
| Timeline | Event & Metric To Watch |
|---|---|
Q3 2026 | Margin Delivery Failure Watch: Reported Q3 operating margin and any change to the full-year margin expansion outlook. |
Q3 2026 | Third Quarter Earnings Report Watch: Company to report Q3 2026 results, providing an update on revenue, adjusted net income, and EPS against raised guidance. |
11/2/2026 | Mobility Segment Slowdown Watch: Peer Corpay's (CPAY) commentary on fleet volumes and the health of the trucking sector in its earnings report. |
11/5/2026 | Peer BILL Earnings Watch: Peer BILL (BILL) is scheduled to report earnings, relevant for the payments and accounts payable automation space. |
back half of the year | Margin Expansion Target Watch: Management is committed to delivering over 100 basis points of macro-neutral margin expansion for the second half of the year. |
No set date | Corporate Payments Volatility Watch: Corporate Payments purchase volume growth in Q3 results. Any commentary on continued volatility from large OTA customers or travel demand. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-22 | Strong Q2 Earnings Report Details: The company reported Q2 revenue of $753.5 million, an increase of 14.2%, and raised its full-year 2026 guidance. The stock reacted positively with a 13.0% two-day gain. | +6.5% $160.96 -> $171.47 |
2026-05-14 | Board Leadership Change Details: The Board appointed independent director David Foss as Chair, separating the roles of Chair and Chief Executive Officer. | +4.1% $135.79 -> $141.42 |
2026-05-14 | New Share Repurchase Program Details: The Board of Directors authorized a new share repurchase program for up to $1 billion of the company's common stock. | +4.1% $135.79 -> $141.42 |
2026-05-04 | Cooperation Agreement with Activist Details: WEX entered into a cooperation agreement with Impactive Capital, establishing a refreshed slate including three new independent directors for election to the board. | -2.6% $151.14 -> $147.23 |
2026-04-23 | Negative Q1 Earnings Reaction Details: Following its Q1 2026 earnings report, the stock had a two-day reaction of -19.0% versus 0.0% for the S&P 500. | -18.6% $184.93 -> $150.45 |
2026-02-09 | Activist Nominates Board Slate Details: Impactive Capital nominated four candidates for election to the company's board of directors, citing a need for change. | +4.4% $158.95 -> $166.00 |
2026-02-05 | Positive Q4 Earnings Reaction Details: The company reported Q4 2025 results, after which the stock had a two-day reaction of 7.0%. | +6.7% $148.91 -> $158.95 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: WEX trades at roughly 36% annualized options-implied volatility versus about 15% for the S&P 500 (2.4x the market), around the 62nd percentile of its own trailing year. A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
CPAY - Corpay
Higher-Growth PeerCorpay offers significantly higher gross margins (78.7% vs. WEX's 59.6%) and demonstrated much stronger recent growth in Corporate Payments, with a 43% organic increase in spend volumes.
GPN - Global Payments
Scaled IncumbentGlobal Payments is a much larger, more diversified payments provider with 3.2 times WEX's revenue. It has proven success in winning large enterprise clients like Subway and Abercrombie & Fitch.
WEX is a diversified B2B payments company using its proprietary bank as a funding and yield advantage, shifting its growth engine from cyclical fleet payments to higher-margin benefits administration and corporate payments.
WEX is navigating a challenging macro environment in its largest segment, Mobility, by executing on pricing actions and gaining share in smaller fleet markets. Meanwhile, it is driving growth in its more profitable Benefits and Corporate Payments segments. The company is leveraging its unique WEX Bank structure for low-cost funding and higher yields on HSA assets, and is now prioritizing returning capital to shareholders via buybacks after reducing leverage.
Sustained double-digit growth in the Direct AP business, margin expansion of more than 100 basis points in the back half, and evidence that the BP portfolio integration is driving incremental volume.
A sharp downturn in the trucking sector that leads to a decline in Mobility transactions despite new sales efforts, or a failure to convert the strong Corporate Payments pipeline into revenue growth.
Short-term volatility in fuel prices, which creates headline revenue fluctuations but is largely a pass-through, and quarter-to-quarter timing of travel volumes from large OTA customers.
Repricing Catalyst
The strong Q2 earnings beat, raised full-year guidance, and management's commitment to direct the 'vast majority of adjusted free cash flow to share repurchases' in the near term, signaling confidence in the stock's value.
Mobility
$1.5B TTM (53% of Total)What It Is
This segment provides fleet payment solutions, transaction processing, and information management to businesses and government agencies with commercial vehicle fleets of all sizes, including light, medium, and heavy-duty vehicles.
Who Pays & How
Fleet operators pay for solutions that help them manage and control fuel, EV charging, and other operational expenses. They use WEX's proprietary closed-loop network for enhanced data capture and fraud controls, which helps optimize costs and streamline operations.
Competition
Benefits
$825M TTM (30% of Total)What It Is
This segment provides a SaaS-based platform for administering employee benefits, including Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and COBRA. It serves employers directly and through a network of partners like third-party administrators, financial institutions, and health plans.
Who Pays & How
Employers and partners pay for a platform that simplifies benefits administration, reduces administrative burden, and lowers costs. The platform's flexibility and data-driven insights help employers and employees make better benefits decisions.
Competition
Corporate Payments
$494M TTM (18% of Total)What It Is
This segment delivers global B2B payment solutions, including embedded virtual payments for industries like travel and fintech, and direct accounts payable (AP) automation for mid-sized and large corporations. It also offers white-label programs for financial institutions.
Who Pays & How
Corporations and financial institutions pay to automate and secure their B2B payment workflows, enhance security, simplify processes, and generate revenue through rebates. The virtual card solution provides enhanced controls, easier reconciliation, and fraud protection.
Competition
WEX — Investor Video Playlist
Industry Resources
| Financials Resources |
| Federal Reserve Economic Data |
| Federal Reserve |
| FDIC Data |
| American Banker |
| The Banker |
| Banking Technology |
| Transaction & Payment Processing Services Resources |
| PYMNTS |
| Payments Dive |
| The Paypers |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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