Summary of WEX FY Conference Call (May 20, 2025) Company Overview - **Company**: WEX Inc. - **Industry**: Mobility and Corporate Payments Key Points Mobility Segment - **Tariff Impact**: The Over the Road (OTR) segment, which constitutes about one-third of the Mobility business, experienced strong volumes initially in Q1, but saw a softening towards the end of April due to tariff discussions and Easter-related disruptions [2][3] - **Domestic vs. Import Freight**: Approximately 90% of trucking in the U.S. involves domestically produced goods, with only 10% related to imports. This indicates a limited impact from import-related freight on overall volumes [4][5] - **Volume Increase**: A 50 basis point increase in volumes was estimated from Q4 to Q1 due to demand pull forward [4][5] - **Freight Pricing Correlation**: There is a loose correlation between freight prices and WEX's performance, particularly with spot rates reflecting real-time shipment needs [6][9] Credit Management - **Dynamic Credit Box**: WEX has invested in data analytics and machine learning to manage its credit box dynamically, allowing for adjustments based on customer spending patterns and delinquencies [10][11] - **Credit Losses**: Credit losses improved to 12 basis points in Q1, down from 15 basis points in the previous year, indicating effective credit management [12][13] - **Recession Preparedness**: The company has conducted scenario modeling for potential recession impacts and feels well-prepared to manage credit losses [17][18] Electric Vehicle (EV) Transition - **Market Readiness**: WEX has developed solutions for the EV transition, including on-route charging and home charging solutions, but adoption in commercial fleets is slow due to complexity and varied use cases [21][24] International Opportunities - **Global Expansion**: WEX sees potential for international growth, particularly in Europe and Australia, but prioritizes investments based on the highest return opportunities [26][28] Corporate Payments Segment - **Travel and Non-Travel Business**: The travel segment is undergoing a contract migration, which has temporarily affected revenue, but volumes remain strong. The non-travel segment is slower growing, but investments in embedded and direct business are yielding positive results [29][31] - **Volume Growth**: The direct business saw a 25% volume growth in both Q1 and Q4, reflecting successful investments [33] Competitive Landscape - **Infrastructure Advantage**: WEX's established infrastructure for servicing complex travel needs provides a competitive edge over new entrants who lack similar capabilities [40][41] - **Market Position**: WEX has captured market share due to its scale and ability to meet sophisticated client needs across multiple geographies [48] Financial Sensitivity to Interest Rates - **Revenue Impact**: A 100 basis point change in interest rates could impact revenue by approximately $40 million, primarily affecting the mobility and HSA segments [54][55] - **EPS Sensitivity**: Higher interest rates could negatively impact EPS due to corporate debt, despite benefiting revenue [56] Capital Allocation Strategy - **Leverage Management**: WEX is focused on reducing leverage to historical levels and is not currently pursuing M&A opportunities [63][64] Additional Insights - **SaaS Accounts Growth**: A 6% increase in SaaS accounts was noted, driven by a successful open enrollment season [49][50] - **HSA Market Trends**: The HSA market continues to grow, supported by regulatory advocacy and employer interest, despite a slowdown in account growth rates [51][52] This summary encapsulates the key insights and data points from the WEX FY Conference Call, highlighting the company's performance, strategic initiatives, and market dynamics.

Core Insights - WEX Inc. reported strong first-quarter 2024 results with adjusted earnings of $3.51 per share, exceeding the Zacks Consensus Estimate by 3.2% and showing a 1.5% increase year-over-year. However, revenues of $636.6 million fell short of the previous year by 2.5% despite beating estimates by 1% [1] - The stock price declined by 5.1% following the results announcement due to weak guidance for 2025 [1] Revenue Guidance - For 2025, WEX expects revenues between $2.57 billion and $2.63 billion, with the midpoint of $2.60 billion being below the current Zacks Consensus Estimate of $2.62 billion. Adjusted net income is projected between $14.72 and $15.32 per share, with the midpoint of $15.02 billion also below the consensus estimate of $15.15 billion [2] Segment Performance - The Mobility segment's revenues decreased by 1.5% year-over-year to $333.8 million, surpassing estimates of $324 million. The Corporate Payments segment saw revenues of $103.5 million, down 15.5% from the previous year, missing estimates of $112.9 million. Conversely, the Benefits segment's revenues increased by 4.2% year-over-year to $199.3 million, beating estimates of $192.5 million [3] Operating Results - Adjusted operating income fell by 4.6% to $157.3 million compared to the previous year, missing estimates of $231 million. The adjusted operating income margin was 36.7%, in line with estimates but down 180 basis points year-over-year [4] Balance Sheet & Cash Flow - WEX ended the quarter with cash and cash equivalents of $610.3 million, up from $595.8 million in the previous quarter. Long-term debt increased by 33% to $4.1 billion. The company reported a cash outflow of $481.6 million from operating activities, with adjusted free cash flow at $16.2 million and capital expenditures totaling $47.1 million [5] Q2 Guidance - For the second quarter of 2025, WEX anticipates revenues between $640 million and $660 million, with the midpoint of $650 million below the current Zacks Consensus Estimate of $652.1 million. Adjusted net income is expected to be between $3.60 and $3.80 per share, which is above the Zacks Consensus Estimate of $3.58 [6]

Plans to Vote Against Jack VanWoerkom, Melissa Smith, and James Neary Confident Company can Deliver Value to All Stakeholders with the Right Leadership and Strategy NEW YORK, May 02, 2025 (GLOBE NEWSWIRE) -- Impactive Capital, LP, together with its affiliates, one of the largest shareholders of WEX Inc. (NYSE:WEX) (the “Company”) with an ownership interest of approximately 7.0% today issued an open letter to the Company’s shareholders. The full text of the letter is set forth below: Dear Fellow Shareholders ...

Financial Performance - Total revenues for the three months ended March 31, 2025, were $636.6 million, a decrease of 2% compared to $652.7 million in the same period of 2024[141]. - Net income for the same period increased to $71.5 million, up 8.7% from $65.8 million in 2024, resulting in a net income per diluted share of $1.81, compared to $1.55 in the prior year[141]. - Adjusted net income was $138.4 million, down from $146.7 million year-over-year, with adjusted net income per diluted share at $3.51, slightly up from $3.46[141]. - Operating income for the three months ended March 31, 2025, increased by $9.8 million, or 21%, to $56.5 million compared to $46.7 million in the same period of 2024[153]. - Segment adjusted operating income rose by $7.5 million, or 9%, to $86.9 million for the three months ended March 31, 2025, compared to $79.4 million in 2024[153]. - Total segment adjusted operating income was $258.7 million for the three months ended March 31, 2025, down from $274.9 million in 2024[174]. Revenue Breakdown - In the Mobility segment, total revenues decreased by $5.2 million to $333.8 million, primarily due to lower average domestic fuel prices, which decreased revenue by $8.5 million[143]. - Total revenues in the Benefits segment increased by $8.1 million to $199.3 million, driven by a rise in average HSA custodial cash assets, which increased by 9% to $4,608.9 million[151]. - Total revenues in the Corporate Payments segment decreased by $19.0 million, or 16%, to $103.5 million for the three months ended March 31, 2025, compared to $122.5 million in 2024[155]. - Payment processing revenue declined by $17.5 million, or 17%, to $85.7 million for the three months ended March 31, 2025[155]. Expenses and Margins - General and administrative expenses decreased by $4.2 million, or 41%, to $6.2 million for the three months ended March 31, 2025, due to reduced integration costs and changes in performance-based compensation estimates[154]. - Segment adjusted operating income margin for Mobility improved to 39.4%, up from 38.6% in the prior year, primarily due to a reduction in credit loss provision[148]. - Segment adjusted operating income margin for Corporate Payments decreased by 13.6 percentage points to 39.1% for the three months ended March 31, 2025, compared to 52.7% in 2024[159]. Cash Flow and Liquidity - Operating cash flow for the three months ended March 31, 2025, was reported at $(481.6) million, compared to $(153.3) million in 2024[177]. - Adjusted free cash flow for the three months ended March 31, 2025, was $16.2 million, an improvement from $(9.2) million in 2024[177]. - The company reported a net cash used for operating activities of $481.6 million for the three months ended March 31, 2025, an increase of $328.3 million compared to the same period in 2024[191][193]. - Cash used for investing activities decreased by $294.3 million to $23.5 million for the three months ended March 31, 2025, primarily due to the absence of HSA deposit transfers to WEX Bank during this period[195]. - Financing activities generated $318.4 million in cash during the three months ended March 31, 2025, a decrease of $35.7 million compared to the prior year, influenced by a reduction in restricted cash payable[197]. Debt and Compliance - The company completed a private offering of $550.0 million in senior unsecured notes due in March 2033 during the three months ended March 31, 2025[179]. - The company had outstanding term loan principal borrowings of $2,689.9 million and borrowings of $954.3 million on the Revolving Credit Facility as of March 31, 2025[181]. - The company believes its current cash and cash equivalents, along with cash generating capabilities, will be adequate to fund its cash needs for the next 12 months[181]. - As of March 31, 2025, the company maintained compliance with financial covenants, including a consolidated interest coverage ratio of no less than 3.00 to 1.00 and a consolidated leverage ratio of no more than 4.75 to 1.00[189]. - WEX Bank is subject to a consent order from the FDIC requiring compliance improvements, with a civil money penalty of $650 thousand assessed and paid in full[201]. Stock and Shareholder Information - As of March 31, 2025, there was $173.9 million worth of WEX common stock available for repurchase under the authorized plan[198]. - The company has the ability to redeem up to 40% of the Senior Notes at a redemption price of 106.500% of the principal amount, provided at least 50% of the original amount remains outstanding[188]. - The company had $144.8 million available to borrow from the Federal Reserve Bank Discount Window as of March 31, 2025, with no outstanding borrowings on this line of credit[190].

Financial Data and Key Metrics Changes - The company reported revenue of $636.6 million for Q1 2025, a decrease of 2.5% year over year. Excluding fuel price and foreign exchange fluctuations, revenue was down 0.8% compared to the prior year [10][30] - Adjusted net income per diluted share was $3.51, an increase of 1.4% compared to the same quarter last year. Excluding the impact of fuel prices and foreign exchange rates, adjusted EPS grew by 5% [10][30] - The revenue guidance for Q2 is expected to be in the range of $640 million to $660 million, with adjusted net income EPS projected between $3.6 and $3.8 per diluted share [37] Business Line Data and Key Metrics Changes Mobility Segment - Revenue for the mobility segment declined by 1.5% during Q1 compared to last year, impacted by lower fuel prices and foreign exchange rates [30] - Same store sales growth for local fleets was down 3.9%, while over-the-road customers saw an uptick of approximately 2.6% [14][30] - Transaction levels were slightly down from the prior year due to external factors, including weather events [14] Benefits Segment - Total revenues for the benefits segment rose by 4.2% year over year, with SaaS account growth of 6.1% [31] - The company managed over 21 million SaaS accounts, with HSA account growth of 7% in Q1 [18][31] Corporate Payments Segment - Revenues for the corporate payments segment declined by 15.5% year over year, primarily due to customer transitions to a new operating model [32] - Direct accounts payable volume grew nearly 25% compared to last year, indicating strong performance in this area [22][32] Market Data and Key Metrics Changes - The company operates in three segments: Mobility, Benefits, and Corporate Payments, each offering significant long-term growth opportunities [12] - The mobility segment accounts for approximately 50% of total revenue, while benefits represent about 30%, and corporate payments about 20% [12][20] Company Strategy and Development Direction - The company is committed to balancing long-term investments while remaining responsive to near-term macro dynamics [9] - Investments are being made across all segments, with a focus on enhancing sales and marketing efforts [25] - The board regularly reviews the business portfolio to balance strategic advantages with potential acquisition or disposal opportunities [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic landscape but emphasized the company's strong customer retention and diversified segments as buffers against economic softness [9][10] - The company remains focused on executing its strategy and delivering value to customers while preparing for potential financial impacts from macroeconomic changes [11][26] Other Important Information - The leverage ratio ended the quarter at 3.5 times, at the high end of the long-term range [34] - The company returned $790 million to investors through share repurchases, reducing share count by approximately 13.1% since the end of last year [34] Q&A Session Summary Question: Impact of tariffs on Mobility segment - Management noted that local fleets experienced a decline in same store sales due to weather and economic factors, while over-the-road business saw a positive trend [46][48] Question: Corporate payments verticals and cyclicality - The corporate payments business is diverse, with about half of the revenue coming from non-travel sectors, but some softness in discretionary spending was noted [51][53] Question: Composition of Mobility segment revenue - The majority of mobility revenue comes from local fleets, with a mix of small and large customers, and same store sales trends were largely homogeneous across sectors [57][59] Question: Corporate Payments purchase volume normalization - Management indicated that Q1 purchase volume returned to a more normalized pattern, and yields are expected to remain stable for the rest of the year [68][70] Question: Credit exposure and risk management - Management expressed confidence in the company's credit tools and strategies to mitigate risks, indicating a stronger position compared to previous cycles [75][77] Question: Benefits segment growth drivers - The company is optimistic about outpacing market growth in the HSA space, supported by strong performance in direct business and marketing investments [83][85]

Financial Data and Key Metrics Changes - The company reported revenue of $636.6 million for Q1 2025, a decrease of 2.5% year over year, with adjusted net income per diluted share at $3.51, an increase of 1.4% compared to the same quarter last year [8][30][31] - Excluding the impact of fluctuations in fuel prices and foreign exchange rates, Q1 revenue was down 0.8% compared to the prior year, while adjusted EPS grew 5% [9][30] Business Line Data and Key Metrics Changes - **Mobility Segment**: Revenue declined 1.5% year over year, impacted by lower fuel prices and foreign exchange rates. Same store sales growth for local fleets was down 3.9%, while over-the-road customers saw an uptick of approximately 2.6% [12][30] - **Benefits Segment**: Total revenues rose 4.2% year over year, with SaaS account growth of 6.1%. The company managed over 21 million SaaS accounts, and HSA accounts grew by 7% [14][31][16] - **Corporate Payments Segment**: Revenues declined 15.5% year over year, primarily due to customer transitions to a new operating model. However, direct accounts payable volume grew nearly 25% compared to last year [19][32] Market Data and Key Metrics Changes - The company operates in three segments: Mobility (50% of total revenue), Benefits (30%), and Corporate Payments (20%). Each segment is positioned for long-term growth despite macroeconomic uncertainties [10][19] - The Mobility segment's transaction levels were slightly down due to external factors, including weather events, while the Benefits segment showed resilience during economic downturns [12][17] Company Strategy and Development Direction - The company is focused on balancing long-term investments with responsiveness to near-term macro dynamics, maintaining high customer retention rates, and leveraging its diversified segments to navigate economic uncertainties [6][7][24] - Incremental investments are being made across all segments, particularly in mobility, with a multichannel marketing strategy targeting small business customers [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive position and ability to adapt to changing macroeconomic conditions, emphasizing the importance of customer engagement and proactive planning [6][28] - The company expects revenue for Q2 2025 to be in the range of $640 million to $660 million, with adjusted net income EPS between $3.6 and $3.8 per diluted share [37][38] Other Important Information - The company returned $790 million to investors through share repurchases, reducing share count by approximately 13.1% since the end of the previous year [33] - The leverage ratio ended the quarter at 3.5 times, at the high end of the long-term range [33] Q&A Session Summary Question: Impact of tariff policy on Mobility segment - Management noted that local fleets experienced a decline in same store sales due to weather and economic factors, while over-the-road business saw a positive trend [46][48] Question: Corporate Payments segment performance - Management indicated that about half of the corporate payments revenue is outside of travel, with some softness in discretionary spending observed [50][53] Question: Composition of Mobility segment revenue - The majority of the Mobility segment revenue comes from local fleets, with a mix of small and large customers, and same store sales trends were largely homogeneous across different sectors [56][58] Question: Credit exposure and risk management - Management expressed confidence in the company's credit tools and strategies, indicating a better position going into potential economic downturns compared to previous cycles [75][78] Question: Benefits segment growth potential - Management highlighted strong HSA account growth and competitive positioning in the benefits market, with expectations to outgrow the overall market [83][85] Question: Portfolio review and cross-selling initiatives - Management confirmed ongoing reviews of the business portfolio and noted successful cross-selling activities between mobility and benefits segments [106][108]

Core Insights - Wex reported revenue of $636.6 million for the quarter ended March 2025, a decrease of 2.5% year-over-year, while EPS increased to $3.51 from $3.46 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $630.4 million, resulting in a surprise of +0.98%, and the EPS also surpassed the consensus estimate of $3.40 by +3.24% [1] Financial Performance Metrics - Purchase volume in the Benefits segment was $2.33 billion, exceeding the average estimate of $2.19 billion [4] - Payment processing transactions in the Mobility segment totaled 134.5 million, slightly below the average estimate of 136.53 million [4] - Corporate Payments segment reported a purchase volume of $17.29 billion, lower than the estimated $18.78 billion [4] - Average US fuel price in the Mobility segment was $3.32 per gallon, above the average estimate of $3.29 per gallon [4] - Mobility revenues were $333.80 million, slightly above the estimate of $331.20 million, representing a year-over-year decline of -1.5% [4] - Benefits revenues reached $199.30 million, surpassing the estimate of $197.88 million, with a year-over-year increase of +4.2% [4] - Corporate Payments revenues were $103.50 million, below the estimate of $104.85 million, reflecting a year-over-year decline of -15.5% [4] - Payment processing revenues were $271.80 million, under the estimate of $274.30 million, showing a year-over-year decrease of -10% [4] - Account servicing revenues were $179.10 million, exceeding the estimate of $177.13 million, with a year-over-year increase of +3.4% [4] - Finance fees revenues were $75.70 million, above the estimate of $67.74 million, indicating a year-over-year increase of +7.7% [4] - Other revenues were reported at $110 million, slightly below the estimate of $112.18 million, with a year-over-year increase of +2.7% [4] - Benefits-Other revenues were $53.60 million, below the estimate of $54.77 million, reflecting a year-over-year increase of +16.5% [4] Stock Performance - Wex shares have returned -18.1% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Core Viewpoint - Wex reported quarterly earnings of $3.51 per share, exceeding the Zacks Consensus Estimate of $3.40 per share, and showing a slight increase from $3.46 per share a year ago, indicating a positive earnings surprise of 3.24% [1] Financial Performance - Wex's revenues for the quarter ended March 2025 were $636.6 million, surpassing the Zacks Consensus Estimate by 0.98%, although this represents a decline from $652.7 million in the same quarter last year [2] - Over the last four quarters, Wex has exceeded consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Wex shares have declined approximately 24.9% since the beginning of the year, contrasting with the S&P 500's decline of 5.5% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings numbers [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.58, with expected revenues of $653.3 million, and for the current fiscal year, the estimate is $15.22 on $2.61 billion in revenues [7] - The estimate revisions trend for Wex is currently favorable, leading to a Zacks Rank 2 (Buy), suggesting that the shares are expected to outperform the market in the near future [6] Industry Context - The Financial Transaction Services industry, to which Wex belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8]

Financial Performance - Total revenue for Q1 2025 decreased by $16.1 million compared to Q1 2024, primarily due to an $8.5 million unfavorable impact from fuel prices and spreads and a $2.5 million unfavorable impact from foreign exchange rates[15] - Q1 2025 Mobility segment revenue decreased 1.5% compared to the same period a year ago, including a 2.9% drag from lower fuel prices[21] - Benefits revenue in Q1 2025 was $199.3 million, a 4.2% increase over the prior year, driven by strong revenue growth in the HSA business[24] - Corporate Payments segment revenue for the quarter decreased 15.5% to $103.5 million, primarily due to a change in revenue model for a major online travel agency (OTA) customer[32] Key Metrics - Payment processing transactions in the Mobility segment were down 1.8% in Q1 2025 compared to Q1 2024[21] - Average SaaS accounts in the Benefits segment for Q1 increased 6.1% year-over-year to 21.5 million[24] - Average custodial cash assets in the Benefits segment were $4.6 billion, an increase of 9.5% compared to the prior year[24] - Total purchase volumes issued by WEX in the Corporate Payments segment declined 27.8% compared to last year[32] Capital Allocation and Debt - The company completed a Tender Offer, repurchasing approximately 4.9 million shares of its common stock at $154 per share, for a total cost of $750 million[43] - The company ended the quarter with $770 million of available liquidity and a leverage ratio of 3.5 times[35] Financial Guidance - The company's full year 2025 net revenue guidance is $2.568 billion to $2.628 billion, a decrease of $32 million from prior guidance at midpoint[46] - The company's full year 2025 adjusted net income per diluted share guidance is $14.72 to $15.32, unchanged from prior guidance at midpoint[46]

Revenue Performance - Total revenue for Q1 2025 decreased by $16.1 million compared to Q1 2024, driven by an unfavorable impact of $8.5 million from fuel prices and spreads, and $2.5 million from foreign exchange rates[12] - For the twelve months ended December 31, 2024, total revenue was $2,628.1 million, reflecting an 8.4% year-over-year increase[11] - The company’s underlying revenue growth during Q1 2025 was down 0.8% when adjusted for fuel prices and foreign exchange impacts[12] - Mobility segment revenue for Q1 2025 decreased by 1.5% year-over-year, impacted by a 2.9% drag from lower fuel prices, with total revenue at $333.8 million[6] - Total revenues for the twelve months ended December 31, 2024, increased by 10.6% to $739.5 million compared to $668.4 million for the previous year[22] Income and Profitability - Adjusted net income per diluted share for Q1 2025 was $3.51, a 1.4% increase compared to the prior year[11] - The company’s GAAP income per diluted share for Q1 2025 was $1.81, reflecting a 16.8% year-over-year increase[11] - The adjusted operating income margin for the Mobility segment was 39.4% for Q1 2025, compared to 42.7% for the twelve months ended December 31, 2024[14] - GAAP operating income margin for the Mobility segment was 29.8%, up from 29.3% in the prior year, with non-GAAP adjusted operating income margin at 39.4%, an increase of 0.7%[6] - GAAP operating income margin for the Corporate Payments segment was 26.3%, down from 41.7% in the comparable prior year quarter[27] - Adjusted operating income margin for the Corporate Payments segment decreased to 39.1% from 52.7% in the same quarter last year[27] Segment Performance - The Mobility segment generated $333.8 million in revenue for Q1 2025, accounting for 52% of total revenue[14] - The company’s total segment adjusted operating income for the twelve months ended December 31, 2024, was $1,059.7 million[14] - Benefits revenue in Q1 2025 was $199.3 million, reflecting a 4.2% increase year-over-year, driven by strong growth in the HSA business[21] - Average SaaS accounts increased by 6.1% year-over-year to 21.5 million, with HSA account growth at 7% compared to a market growth of 5%[21] - Total purchase volume for the Corporate Payments segment decreased by 27.8% year-over-year to $17.285 million for the three months ended March 31, 2025[28] Cash Flow and Capital Expenditures - For Q1 2025, the company reported an adjusted free cash flow of $16.2 million, with trailing twelve months adjusted free cash flows totaling $587 million[33] - Capital expenditures for Q1 2025 were $32.6 million, while total capital deployed in the same quarter reached $913.8 million[35] - The adjusted free cash flow for the twelve months ended December 31, 2024, is projected to be $562.0 million[60] Financial Guidance and Market Outlook - The financial guidance for Q2 2025 projects net revenue between $640 million and $660 million, with a full-year revenue expectation of $2.568 billion to $2.628 billion[38] - The adjusted net income per diluted share guidance for Q2 2025 is between $3.60 and $3.80, with full-year guidance ranging from $14.72 to $15.32[38] - The company anticipates U.S. GDP growth of approximately 2% in 2025, without accounting for potential economic slowdowns[38] Liquidity and Debt Management - The company ended the quarter with $770 million of available liquidity, including corporate cash and borrowing capacity under its revolving credit agreement[29] - As of March 31, 2025, the leverage ratio increased to 3.5 times, remaining within the long-term target range of 2.5 to 3.5 times[29] - The company has maintained ample access to debt markets, with a three-year runway before the next debt maturity, allowing for opportunistic market positioning[31] Shareholder Returns - The company repurchased approximately 4.9 million shares at a price of $154 per share, totaling $750 million in cash for the tender offer completed on March 31, 2025[36] Non-GAAP Measures and Adjustments - The company's adjusted net income and adjusted operating income are non-GAAP measures and should not be considered superior to GAAP measures[56] - The company has begun utilizing a fixed annual projected long-term non-GAAP tax rate starting in fiscal year 2024 for better consistency across reporting periods[58] - Stock-based compensation is treated as a non-cash expense, differing from other forms of compensation[58] - Impairment charges represent non-cash asset write-offs and do not reflect recurring costs relevant to the company's continuing operations[58]