Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR 1 Hancock St., Portland, ME 04101 (Address of principal executive offices) (Zip Code) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (207) 773–8171 For the transition period from to (Registrant's telephone number, inclu ...

WEX Inc. (NYSE:WEX) Q2 2021 Results Conference Call July 29, 2021 10:00 AM ET Company Participants Steve Elder - VP, IR Melissa Smith - CEO Roberto Simon - CFO Conference Call Participants Sanjay Sakhrani - KBW Bob Napoli - William Blair George Mihalos - Cowen Dan Dolev - Mizuho Trevor Williams - Jefferies Darrin Peller - Wolfe Research Mihir Bhatia - Bank of America Operator Ladies and gentlemen, thank you for standing by, and welcome to the WEX Second Quarter 2021 Earnings Conference Call. [Operator Instr ...

PART I [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) The unaudited Q1 2021 financial statements reflect a year-over-year revenue decrease and a significant improvement in net loss attributable to shareholders | Financial Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Total revenues | $410,757 | $431,679 | | Operating income | $50,541 | $74,829 | | Net income (loss) | $23,205 | $(12,269) | | Net loss attributable to shareholders | $(2,565) | $(16,256) | | Diluted net loss per share | $(0.06) | $(0.37) | | Balance Sheet Item | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Total current assets | $3,708,411 | $3,502,847 | | Total assets | $8,316,733 | $8,183,361 | | Total current liabilities | $3,307,745 | $2,740,853 | | Total liabilities | $6,285,891 | $6,148,225 | | Total stockholders' equity | $1,888,226 | $1,917,917 | | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash (used for) provided by operating activities | $(217,295) | $340,223 | | Net cash used for investing activities | $(16,406) | $(20,708) | | Net cash used for financing activities | $(114,579) | $(257,960) | - On March 15, 2021, the Company redeemed its **$400.0 million** of 4.75% Notes outstanding, accelerating and expensing unamortized debt issuance costs of **$1.4 million**[95](index=95&type=chunk) - Subsequent to quarter-end, the Company completed the acquisition of certain HSA assets for **$200 million** initial cash, acquired the remaining 25% interest in WEX Europe Services for **~$97 million**, and signed an agreement to acquire benefitexpress for **~$275 million**[153](index=153&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2021 financial results, highlighting varied COVID-19 impacts on segments, liquidity, and post-quarter strategic acquisitions and financing activities [Summary of Performance and Recent Events](index=38&type=section&id=MD%26A_Summary) Q1 2021 performance was impacted by the pandemic, showing varied segment recovery, alongside the redemption of senior notes and post-quarter acquisitions - The **Travel and Corporate Solutions** segment remains the most impacted by the pandemic, while **Fleet Solutions** volumes are recovering, and **Health and Employee Benefit Solutions** purchase volumes are impacted by deferred discretionary healthcare spending[163](index=163&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - On March 15, 2021, the company redeemed its outstanding **$400 million** 4.75% senior secured notes[167](index=167&type=chunk) - Subsequent to the quarter, WEX acquired the remaining 25% interest in WEX Europe Services for **~$97.1 million** and signed a definitive agreement to acquire benefitexpress for **~$275 million**[170](index=170&type=chunk)[171](index=171&type=chunk) [Key Performance Indicators](index=40&type=section&id=MD%26A_KPIs) Q1 2021 key performance indicators show mixed year-over-year results, with **Fleet Solutions** recovering, **Travel and Corporate Solutions** declining, and **Health** growing SaaS accounts | Key Metric (vs. Q1 2020) | Q1 2021 | Change | % Change | | :--- | :--- | :--- | :--- | | **Fleet Solutions** | | | | | Fuel transactions processed (millions) | 146.4 | (4.3) | (2.9)% | | Average vehicles serviced (millions) | 15.8 | 0.7 | 4.4% | | **Travel and Corporate Solutions** | | | | | Payment solutions purchase volume (millions) | $6,107.7 | $(1,933.4) | (24.0)% | | **Health and Employee Benefit Solutions** | | | | | Average number of U.S. SaaS accounts (millions) | 15.5 | 1.0 | 6.9% | [Results of Operations by Segment](index=41&type=section&id=MD%26A_Segment_Results) Q1 2021 segment performance varied, with **Fleet Solutions** revenue down but operating income up, **Travel and Corporate Solutions** revenue and operating income significantly down, and **Health** revenue slightly down but operating income up | Segment | Q1 2021 Revenue | YoY % Change | Q1 2021 Operating Income (Loss) | YoY % Change | | :--- | :--- | :--- | :--- | :--- | | Fleet Solutions | $243.8M | (2)% | $89.6M | 22% | | Travel and Corporate Solutions | $70.6M | (16)% | $(25.8)M | (316)% | | Health and Employee Benefit Solutions | $96.3M | (1)% | $14.3M | 3% | - The **Fleet Solutions** segment's provision for credit losses decreased by **$16.2 million** (**79%**) compared to Q1 2020, when a large provision was made at the onset of the COVID-19 pandemic[188](index=188&type=chunk) - The **Travel and Corporate Solutions** segment's operating loss was driven by a **$24.2 million** (**328%**) increase in G&A expenses, primarily from a vendor contract termination payment and integration costs for the eNett and Optal acquisition[201](index=201&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=MD%26A_Liquidity) Q1 2021 operating cash flow significantly decreased, while liquidity is maintained through credit facilities, and the share repurchase program remains available - Cash used for operating activities was **$217.3 million**, a decrease of **$557.5 million** from the prior year, primarily from rebounding customer spend volumes and fuel prices[228](index=228&type=chunk)[229](index=229&type=chunk) - On April 1, 2021, the company amended its 2016 Credit Agreement, extending maturities, increasing the Revolving Credit Facility to **$930 million**, and providing approximately **$117 million** in additional Tranche A Term Loans[234](index=234&type=chunk) - The company has authorization to repurchase up to **$150 million** of its common stock until September 2021, which was entirely unused as of March 31, 2021[260](index=260&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There were no material changes to the company's market risk disclosures from those presented in its Annual Report on Form 10-K for the year ended December 31, 2020 - As of March 31, 2021, there were no material changes to the market risk disclosures previously reported in the Annual Report on Form 10-K for the year ended December 31, 2020[269](index=269&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal controls over financial reporting during the quarter - The Company's principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2021[270](index=270&type=chunk) - There has been no change in internal control over financial reporting during the quarter that has materially affected, or is reasonably likely to materially affect, internal controls[271](index=271&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) WEX is not involved in any material legal proceedings as of the filing date, but is cooperating with an SEC investigation related to a former Brazil subsidiary - The company is not involved in any material legal proceedings as of the filing date[273](index=273&type=chunk) - WEX is cooperating with an SEC investigation concerning its former Brazil subsidiary (sold in September 2020), but the current estimate of a reasonably possible loss contingency is not material[273](index=273&type=chunk) [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the detailed risk factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - The report refers to the risk factors discussed in Part I, "Item 1A. Risk Factors" in the Annual Report on Form 10–K for the year ended December 31, 2020, for a comprehensive understanding of potential risks[274](index=274&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during Q1 2021, with the full **$150 million** authorized under its share repurchase program remaining available - The company did not purchase any shares of its common stock during the quarter ended March 31, 2021[276](index=276&type=chunk) - As of March 31, 2021, the full **$150 million** authorized under the share repurchase program was available for future purchases[276](index=276&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section provides a list of all exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents and certifications

| --- | --- | --- | --- | |-------------------|-------|-------|-------| | WEX First Quarter | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2021 Earnings | | | | | April 29, 2021 | | | | WEX Forward-Looking Statements These materials contain forward-looking statements, including statements regarding: assumptions underlying the Company's future financial performance, future operations; future growth opportunities and expectations; expectations for future revenue performance, future impacts from a ...

[Part I](index=8&type=section&id=Part%20I) [Business](index=8&type=section&id=Item%201.%20Business) WEX Inc. provides financial technology services across three segments, supported by WEX Bank, and completed key acquisitions and divestitures in 2020, while focusing on strategic expansion [Our Company](index=8&type=section&id=Our%20Company) WEX Inc. is a leading financial technology service provider with three segments, supported by WEX Bank for funding and credit extension - WEX operates in three main segments: **Fleet Solutions**, **Travel and Corporate Solutions**, and **Health and Employee Benefit Solutions**[41](index=41&type=chunk) - WEX Bank, a wholly-owned FDIC insured depository institution, provides a **low-cost funding mechanism** and makes credit decisions for the Fleet and Travel segments[42](index=42&type=chunk) [Recent Developments](index=8&type=section&id=Recent%20Developments) In 2020, WEX acquired eNett and Optal for a reduced price of **$577.5 million** after a legal settlement and sold its WEX Latin America subsidiary - WEX acquired eNett and Optal on December 15, 2020, for a reduced cash price of **$577.5 million** following a legal dispute and settlement, with the original deal at **$1.3 billion** in cash and **2.0 million** shares[43](index=43&type=chunk)[45](index=45&type=chunk) - A residual value of **$162.5 million** from the eNett and Optal transaction was allocated to a legal settlement expense[45](index=45&type=chunk) - The company sold its WEX Latin America subsidiary (UNIK S.A.) on September 30, 2020, resulting in a pre-tax loss on sale of **$46.4 million**[46](index=46&type=chunk) [Fleet Solutions Segment](index=9&type=section&id=FLEET%20SOLUTIONS%20SEGMENT) The Fleet Solutions segment leads in payment processing for commercial and government vehicle fleets, serving **15.8 million** vehicles as of year-end 2020 - As of December 31, 2020, the Fleet Solutions segment serves **15.8 million** vehicles[48](index=48&type=chunk) Fleet Solutions Transaction Volume | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Payment Processing Transactions (millions) | 464 | 505 | - Revenue sources include payment processing fees, account servicing fees, finance fees, and other ancillary services like data analytics and tax reporting[49](index=49&type=chunk)[52](index=52&type=chunk)[62](index=62&type=chunk) - The segment utilizes direct marketing channels (WEX, EFS, Fleet One) and indirect channels through co-branded and private label partnerships with fuel providers and fleet management companies[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) [Travel and Corporate Solutions Segment](index=11&type=section&id=TRAVEL%20AND%20CORPORATE%20SOLUTIONS%20SEGMENT) The Travel and Corporate Solutions segment provides corporate purchasing and payment solutions, including electronic payments and corporate cards, to streamline B2B transactions - The segment offers electronic payment solutions, including virtual payments and integrated payables, to streamline B2B transactions[59](index=59&type=chunk)[60](index=60&type=chunk) - Virtual payments utilize a unique account number (VCN) for each transaction with customized credit limits and expiration dates to limit fraud and simplify reconciliation[60](index=60&type=chunk)[63](index=63&type=chunk) - The segment also offers corporate cards for purchasing and travel & entertainment, as well as prepaid and gift card products in Australia[61](index=61&type=chunk)[62](index=62&type=chunk) [Health and Employee Benefit Solutions Segment](index=12&type=section&id=HEALTH%20AND%20EMPLOYEE%20BENEFIT%20SOLUTIONS%20SEGMENT) The Health and Employee Benefit Solutions segment provides a SaaS platform for consumer-directed healthcare payments, serving **408,000** employers and **33.1 million** consumers - The segment provides a SaaS platform to support healthcare benefit programs like FSAs, HSAs, and COBRA administration[66](index=66&type=chunk)[67](index=67&type=chunk) - The segment has relationships with approximately **408,000** employers, reaching about **33.1 million** consumers[68](index=68&type=chunk) - Primary revenue sources are SaaS licensing fees charged to partners and interchange fees from spending on customer debit cards[68](index=68&type=chunk)[69](index=69&type=chunk) [Other Items](index=14&type=section&id=OTHER%20ITEMS) This section covers WEX's competitive landscape, corporate strategy, human capital management, technology, and extensive regulatory environment - The company's 2020 strategy focused on five pillars: winning with customer relationships, delivering modular solutions on integrated platforms, diversifying through new verticals and acquisitions, mitigating risk to maximize scale, and leveraging culture to grow talent[81](index=81&type=chunk) - As of December 31, 2020, WEX had approximately **5,300** employees, with **4,300** located in the United States[78](index=78&type=chunk) - The company's technology infrastructure relies on proprietary closed-loop platforms for fleet services and an integrated multi-account payment platform for WEX Health, supported by global data centers and cloud services[86](index=86&type=chunk)[87](index=87&type=chunk) - WEX and its subsidiary WEX Bank are subject to extensive U.S. and foreign regulations, including banking laws (FDIC, Utah DFI), consumer protection (CFPB), data privacy (GLBA, HIPAA, CCPA, GDPR), and anti-money laundering laws[92](index=92&type=chunk)[93](index=93&type=chunk)[125](index=125&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) The company faces multiple risks from the COVID-19 pandemic, fuel price volatility, substantial indebtedness, regulatory changes, and cybersecurity threats - The COVID-19 pandemic is a primary risk, negatively impacting worldwide travel, fuel demand, and consumer spending, which is expected to continue affecting business operations and financial condition[132](index=132&type=chunk)[133](index=133&type=chunk) - A significant portion of revenues is tied to fuel prices and volume; a one-cent decline in average domestic fuel prices is estimated to result in a **$1.5 million** decline in 2021 revenue[136](index=136&type=chunk) - The company faces risks from its substantial indebtedness of approximately **$3.0 billion** as of December 31, 2020, which could affect business flexibility and ability to meet debt service obligations[30](index=30&type=chunk)[192](index=192&type=chunk) - WEX Bank's industrial loan charter (ILC) provides access to low-cost funds; its loss or suspension, or changes in regulations, could disrupt operations and increase costs[29](index=29&type=chunk)[181](index=181&type=chunk) - The business is regularly subject to cyberattacks and security breaches, which could lead to liability, reputational damage, and loss of customer confidence[34](index=34&type=chunk)[227](index=227&type=chunk) [Unresolved Staff Comments](index=46&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[250](index=250&type=chunk) [Properties](index=46&type=section&id=Item%202.%20Properties) All of the company's facilities are leased, including its corporate headquarters in Portland, Maine, and significant space for WEX Health operations - The company leases all its facilities, with its corporate headquarters in Portland, Maine[251](index=251&type=chunk) [Legal Proceedings](index=46&type=section&id=Item%203.%20Legal%20Proceedings) The company is not involved in any material legal proceedings, with the eNett and Optal acquisition dispute settled and an ongoing SEC investigation - The legal proceedings initiated by eNett and Optal shareholders were dismissed with prejudice on December 15, 2020, as part of a settlement that finalized the acquisition at a reduced price[252](index=252&type=chunk)[253](index=253&type=chunk) - The company is cooperating with an SEC investigation related to the revision of its financial statements due to issues at its former Brazil subsidiary[254](index=254&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[255](index=255&type=chunk) [Part II](index=47&type=section&id=Part%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=47&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) WEX Inc.'s common stock trades on the NYSE under WEX, with no dividends declared since its 2005 IPO and no share repurchases in 2020 - The company's common stock trades on the NYSE under the symbol WEX[257](index=257&type=chunk) - No dividends have been declared on common stock since the company's IPO in 2005[258](index=258&type=chunk) - The company did not repurchase any of its common stock during the year ended December 31, 2020; the full **$150 million** authorized under the share repurchase program was available as of year-end[260](index=260&type=chunk)[261](index=261&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's 2020 financial performance, significantly impacted by COVID-19, resulting in decreased revenue and a net loss, while maintaining strong liquidity 2020 Key Performance Indicators vs. 2019 | Segment | Metric | 2020 | Change vs. 2019 | | :--- | :--- | :--- | :--- | | **Fleet Solutions** | Avg. Vehicles Serviced | 15.3 million | +9% | | | Avg. US Fuel Price/Gallon | $2.29 | -18% | | | Payment Processing Transactions | 463.9 million | -8% | | **Travel & Corp. Solutions** | Payment Solutions Purchase Volume | $20.9 billion | -47% | | **Health & Employee Benefit** | Avg. SaaS Accounts | 14.5 million | +12% | - The company's financial performance in 2020 was significantly impacted by the COVID-19 pandemic, with the Travel and Corporate Solutions segment being the most severely affected due to the decline in worldwide travel[284](index=284&type=chunk)[285](index=285&type=chunk) - In December 2020, the company acquired eNett and Optal for a reduced price of **$577.5 million**, paid with cash on hand, and recorded a **$162.5 million** legal settlement expense related to the transaction[276](index=276&type=chunk) - In July 2020, WEX issued **$310 million** in convertible senior notes and **$90 million** in common stock to an affiliate of Warburg Pincus LLC[277](index=277&type=chunk) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) For 2020, total revenues decreased by **9.5%** to **$1.56 billion**, resulting in an operating loss of **$91.7 million** and a net loss of **$243.6 million** Consolidated Results of Operations (in thousands) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Total Revenues | $1,559,869 | $1,723,691 | | Operating (Loss) Income | $(91,673) | $385,841 | | Net (Loss) Income Attributable to Shareholders | $(243,638) | $99,006 | - The operating loss in 2020 was primarily due to a **$162.5 million** legal settlement, a **$53.4 million** goodwill impairment charge, and a **$46.4 million** loss on the sale of a subsidiary[465](index=465&type=chunk) [Application of Critical Accounting Policies and Estimates](index=63&type=section&id=Application%20of%20Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies involve significant judgment in revenue recognition, credit loss allowances, asset valuation, and income tax calculations - Key estimates are required for revenue recognition, especially concerning variable consideration like fee rebates tied to performance milestones[348](index=348&type=chunk)[354](index=354&type=chunk) - The allowance for expected credit losses is calculated using analytical models based on historical loss rates, adjusted for current conditions and economic forecasts; a **0.5%** change would impact the provision by **$10.3 million**[359](index=359&type=chunk)[364](index=364&type=chunk) - Goodwill and intangible assets are tested for impairment annually or when indicators exist; in 2020, a **$53.4 million** goodwill impairment charge was recorded for WEX Fleet Europe due to reduced volumes from COVID-19[369](index=369&type=chunk)[377](index=377&type=chunk) [Liquidity, Capital Resources and Cash Flows](index=67&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Cash%20Flows) The company maintains adequate liquidity and capital resources, with net cash from operating activities increasing to **$857.0 million** in 2020 and approximately **$3.0 billion** in debt outstanding Cash Flow Summary (in thousands) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $857,019 | $663,171 | | Net cash used for investing activities | $(329,086) | $(990,614) | | Net cash (used for) provided by financing activities | $(179,256) | $749,773 | - As of December 31, 2020, the company had approximately **$3.0 billion** of debt outstanding and **$818.4 million** in remaining borrowing capacity under its revolving credit facility[192](index=192&type=chunk)[430](index=430&type=chunk) - WEX Bank, a key source of funding, was categorized as "**well capitalized**" as of December 31, 2020[421](index=421&type=chunk)[754](index=754&type=chunk) - The company utilizes off-balance sheet arrangements, including accounts receivable factoring and securitization facilities in Australia and Europe, to improve liquidity[412](index=412&type=chunk)[414](index=414&type=chunk)[417](index=417&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rates, foreign currency exchange rates, and commodity prices, with some interest rate hedging in place - The company has **$2.3 billion** in variable-rate debt under its 2016 Credit Agreement, with interest rate swaps in place to fix the rate on **$1.4 billion** of this debt[434](index=434&type=chunk) - A hypothetical **1.00%** increase in interest rates would increase the annual interest expense on the 2016 Credit Agreement by an estimated **$8.8 million**[436](index=436&type=chunk)[437](index=437&type=chunk) - The company is exposed to foreign currency fluctuations from its international subsidiaries but does not currently use hedging instruments to mitigate this risk[438](index=438&type=chunk) - The company is not hedged for changes in fuel prices[439](index=439&type=chunk) [Financial Statements and Supplementary Data](index=77&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2020, reporting **$1.56 billion** in revenues and a net loss of **$243.6 million**, with critical audit matters identified Consolidated Financial Highlights (Year Ended Dec 31, 2020) | Metric | Amount (in thousands) | | :--- | :--- | | Total Revenues | $1,559,869 | | Operating (Loss) Income | $(91,673) | | Net (Loss) Income Attributable to Shareholders | $(243,638) | | Diluted EPS | $(5.56) | | Total Assets | $8,183,361 | | Total Liabilities | $6,148,225 | | Total Stockholders' Equity | $1,917,917 | - The independent auditor's report highlighted three critical audit matters: the complexity of auditing highly automated revenue systems, the accounting for the 2020 convertible notes issuance, and the valuation and allocation of the purchase price for the eNett and Optal acquisition[448](index=448&type=chunk)[449](index=449&type=chunk)[453](index=453&type=chunk)[458](index=458&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=138&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable to the company - Not applicable[764](index=764&type=chunk) [Controls and Procedures](index=138&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020, excluding recent acquisitions - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[765](index=765&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2020[767](index=767&type=chunk) - The recently acquired eNett and Optal businesses were excluded from management's assessment of internal control over financial reporting[768](index=768&type=chunk) - The independent registered public accounting firm issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2020[769](index=769&type=chunk)[773](index=773&type=chunk) [Other Information](index=141&type=section&id=Item%209B.%20Other%20Information) This item is not applicable to the company - Not applicable[781](index=781&type=chunk) [Part III](index=141&type=section&id=Part%20III) [Directors, Executive Officers and Corporate Governance](index=141&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding the company's directors, executive officers, and corporate governance practices is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[783](index=783&type=chunk) [Executive Compensation](index=141&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the company's definitive 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[785](index=785&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=141&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership and equity compensation plans is incorporated by reference from the company's definitive 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[786](index=786&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=141&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related party transactions, and director independence is incorporated by reference from the company's definitive 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[787](index=787&type=chunk) [Principal Accounting Fees and Services](index=141&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding the fees paid to and services provided by the principal independent registered public accounting firm is incorporated by reference from the company's definitive 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[788](index=788&type=chunk) [Part IV](index=142&type=section&id=Part%20IV) [Exhibits and Financial Statement Schedules](index=142&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the documents filed as part of the Form 10-K, including financial statements and an index of all exhibits - This section contains the index to the consolidated financial statements and the exhibit index[791](index=791&type=chunk) [Form 10–K Summary](index=142&type=section&id=Item%2016.%20Form%2010%E2%80%93K%20Summary) The company has not provided a Form 10-K summary - None[792](index=792&type=chunk)

Financial Performance - Q4 2020 - Total revenue decreased by 93% year-over-year, from $440045 thousand in 4Q19 to $398990 thousand in 4Q20[38] - Adjusted net income attributable to shareholders decreased by 435%, from $114722 thousand in 4Q19 to $64831 thousand in 4Q20[38] - Adjusted net income per diluted share decreased by 444%, from $261 in 4Q19 to $145 in 4Q20[38] Financial Performance - Full Year 2020 - Total revenue decreased by 95% year-over-year, from $1723691 thousand in 2019 to $1559869 thousand in 2020[37] - Adjusted net income attributable to shareholders decreased by 334%, from $402673 thousand in 2019 to $268324 thousand in 2020[37] - Adjusted net income per diluted share decreased by 341%, from $920 in 2019 to $606 in 2020[37] Segment Performance - Q4 2020 - Fleet Solutions revenue decreased by 97%, from $260773 thousand in 4Q19 to $235379 thousand in 4Q20[40] - Travel and Corporate Solutions revenue decreased by 220%, from $95700 thousand in 4Q19 to $74690 thousand in 4Q20[40] - Health and Employee Benefit Solutions revenue increased by 64%, from $83572 thousand in 4Q19 to $88921 thousand in 4Q20[40] Segment Performance - Full Year 2020 - US Healthcare revenue increased by 18%[19] Additional Information - Corporate cash balance was approximately $642 million[57]

WEX Inc. (NYSE:WEX) Q4 2020 Results Earnings Conference Call February 24, 2021 9:00 AM ET Company Participants Steve Elder - VP, IR Melissa Smith - Chairman & CEO Roberto Simon - CFO Conference Call Participants Darrin Peller - Wolfe Research Tien-Tsin Huang - JPMorgan Ramsey El-Assal - Barclays Bob Napoli - William Blair Ashish Sabadra - Deutsche Bank Dave Koning - Baird Operator Ladies and gentlemen, thank you for standing by. And welcome to the WEX Q4 2020 Earnings Conference Call. At this time, all part ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-32426 WEX Inc. (Exact name of registrant as specified in its charter) Delaware 01-0526993 (State or other ...

WEX Inc. (NYSE:WEX) Q3 2020 Results Conference Call October 29, 2020 10:00 AM ET Company Participants Steve Elder - VP, IR Melissa Smith - CEO Roberto Simon - CFO Conference Call Participants Sanjay Sakhrani - KBW Steven Wald - Morgan Stanley Ashish Sabadra - Deutsche Bank Ramsey El-Assal - Barclays Bob Napoli - William Blair Operator Ladies and gentlemen, thank you for standing by, and welcome to the WEX Q3 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ pr ...

WEX Third Quarter 2020 Earnings October 29, 2020 WEX Forward-Looking Statements This earnings information contains forward-looking statements, including statements regarding: financial guidance and potential for providing the same; assumptions underlying the Company's future financial performance; future growth opportunities and expectations; and, expectations for the macro environment. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. When used in th ...