WEX Inc. (NYSE: WEX), a leading global commerce platform that simplifies the business of running a business, today announced its financial results for the first quarter ended March 31, 2025. Despite a modest revenue decline, the company highlighted solid progress on strategic priorities and demonstrated financial resilience amid ongoing macroeconomic uncertainty.
“I am pleased with WEX’s Q1 performance and the continued progress we are making against our strategic priorities,” said Melissa Smith, Chair, Chief Executive Officer, and President of WEX. “WEX’s strong financial position and diversified portfolio provide a meaningful buffer against short-term softness in any one sector and position us well to navigate ongoing macro uncertainty.”
First Quarter 2025 Financial Overview
WEX reported total revenue of $636.6 million for the first quarter of 2025, representing a 2% decline compared to $652.7 million in the same period last year. The revenue decrease was primarily driven by external factors, including an $8.5 million unfavorable impact from fuel prices and spreads and a $2.5 million negative effect from foreign exchange rate fluctuations.
Despite the top-line decline, the company achieved year-over-year growth in GAAP net income. WEX posted GAAP net income of $71.5 million, or $1.81 per diluted share, compared to $65.8 million, or $1.55 per diluted share, in Q1 2024. This marks an increase of $5.7 million in net income year over year.
On a non-GAAP basis, adjusted net income for the quarter was $138.4 million, or $3.51 per diluted share. This compares to adjusted net income of $146.7 million, or $3.46 per diluted share, in the prior-year period. The modest 1% increase in per-share adjusted net income underscores continued efficiency and cost discipline.
The company’s GAAP operating income margin came in at 24.7%, slightly down from 25.2% in the first quarter of 2024. On an adjusted basis, the operating income margin was 36.7%, down from 38.5% in the prior year. The slight contraction in margins reflects macro-driven revenue headwinds as well as strategic investments aimed at long-term growth.
Key Operating Metrics by Segment
WEX reported total volume across all segments of $54.1 billion for the first quarter, a 5% decrease compared to the same period in 2024.
In the Mobility segment, payment processing transactions totaled 134.5 million, a 2% decrease compared to 136.9 million in the first quarter of the prior year.
The Benefits segment demonstrated robust performance. The average number of Software-as-a-Service (SaaS) accounts grew 6% year over year to reach 21.5 million. Average Health Savings Account (HSA) custodial cash assets also increased, rising 9.5% to $4.6 billion, up from $4.2 billion a year earlier. These gains highlight the company’s continued momentum in employee benefits and health-related solutions.
Corporate Payments experienced softness, with purchase volume falling 28% to $17.3 billion from $23.9 billion in Q1 2024. However, total volume processed, which includes transactions where WEX does not earn interchange revenue, decreased more moderately by 5.8% to $31.1 billion. This decline reflects a more challenging B2B spending environment and evolving corporate demand patterns.
Capital Allocation and Share Repurchase Activity
In a significant move, WEX repurchased approximately 5.1 million shares of its common stock during the first quarter, amounting to a total capital return of $790 million. This includes the successful completion of a tender offer concluded in March 2025. The share repurchase aligns with the company’s ongoing capital allocation strategy and reflects confidence in the long-term value of its business.
Cash Flow and Liquidity
WEX reported cash flows from operating activities of negative $481.6 million in the first quarter. However, adjusted free cash flow—a non-GAAP metric reflecting cash available for discretionary investments—was positive at $16.2 million. The reconciliation of these figures is provided in Exhibit 1 of the full financial results.
Updated Financial Guidance for 2025
Looking ahead, WEX has updated its financial guidance for the remainder of the year to reflect ongoing macroeconomic conditions, including fluctuations in fuel prices, foreign exchange, and interest rates, as well as the impact of the recent share repurchase.
“We are updating our full-year 2025 guidance to account for the macro-related impacts of fuel prices, FX, and interest rates, as well as our recently completed tender offer, with all other changes minor in nature,” said Jagtar Narula, Chief Financial Officer of WEX. “Our guidance is based upon current trends, focusing on what we can control, and small but manageable incremental headwinds since providing our original outlook. The business environment is dynamic, and our guidance does not include the impact of a potential further slowdown in the economy.”
Second Quarter 2025 Guidance
- Revenue is expected to be in the range of $640 million to $660 million.
- Adjusted net income is forecasted to be between $3.60 and $3.80 per diluted share.
Full Year 2025 Guidance
- Revenue is projected in the range of $2.57 billion to $2.63 billion.
- Adjusted net income is expected to be between $14.72 and $15.32 per diluted share.
These forecasts are based on several key assumptions, including average U.S. retail fuel prices of $3.18 per gallon for Q2 2025 and $3.10 per gallon for the full year. Additionally, the company assumes an adjusted net income effective tax rate of 25.0% and approximately 34.5 million and 35.9 million fully diluted shares outstanding for the second quarter and full year, respectively.
The company clarified that its adjusted net income guidance excludes several items, including unrealized gains and losses on financial instruments, foreign currency movements, acquisition-related amortization, stock-based compensation, and other non-recurring or non-core charges.
WEX enters the remainder of 2025 on solid footing, supported by a diversified business model, disciplined capital deployment, and a commitment to innovation across its mobility, benefits, and corporate payments platforms. While macroeconomic headwinds continue to present challenges, the company remains focused on executing its strategic priorities, delivering shareholder value, and maintaining operational resilience.
More detailed financial information, including reconciliations of GAAP to non-GAAP measures and additional guidance assumptions, can be found in the exhibits accompanying the company’s earnings release.
