WEX(US:WEX)2026-02-04 21:34Revenue and Income Growth - Total revenue for Q4 2025 increased by $36.3 million, or 5.7%, compared to Q4 2024, driven by a favorable impact from fuel prices and foreign exchange rates[8] - Q4 net income was $2.41 per diluted share, reflecting a significant increase of 50.6% year-over-year[8] - Adjusted net income for Q4 was $4.11 per diluted share, an increase of 15.1% compared to the prior year[8] - Revenue growth for Q4, when accounting for the impact of fuel prices and foreign exchange, was up 4.5% compared to the prior year[8] - The total revenue for the twelve months ended December 31, 2025, was $2,660.8 million, representing a year-over-year increase of 1.2%[9] - The company reported a year-over-year change in revenues of 5.7% for Q4 2025, with a notable increase in the Benefits segment[8] Segment Performance - Mobility segment revenue for Q4 2025 was $345.1 million, flat compared to the same period last year, with a 1.4% benefit from higher fuel prices and foreign exchange rates[14] - The Benefits segment revenue for the twelve months ended December 31, 2025, was $797.4 million, representing a year-over-year decrease of 1.1%[10] - Benefits segment revenue for the quarter was $204.9 million, an increase of 9.6% over the prior year, driven by strong revenue growth in SaaS accounts and custodial revenue[8] - Corporate Payments segment revenue for the quarter increased 17.8% to $122.9 million, driven by an 18.3% increase in total volume[25] Operating Income and Margins - Operating income margin for the Mobility segment was 25.6% in Q4 2025, down from 33.1% in the same prior-year period[14] - Adjusted operating income for the Mobility segment was $128.9 million in Q4 2025, with a margin of 37.3%, down 5.0% year-over-year[15] - Operating income margin for the Benefits segment was 28.7%, compared to 26.1% in the same prior-year period[8] - Operating income (GAAP) for the twelve months ended December 31, 2023, was $219.1 million, with an operating income margin of 44.1%[26] - Operating income for the three months ended December 31, 2023, was $158.5 million, with an expected increase to $196.4 million by September 30, 2024[62] Cash Flow and Liquidity - Adjusted free cash flow for Q4 2025 was $261 million, with a trailing twelve-month adjusted free cash flow of $638 million[34] - Available liquidity at the end of 2025 was $1.25 billion, including corporate cash and borrowing capacity[29] - The Company reported an operating cash flow of $761.9 million for the year ended December 31, 2023, with an adjusted free cash flow of $510.6 million[71] Capital Expenditures and Share Repurchases - Capital expenditures for the three months ended December 31, 2023, were $41.9 million, with total capital deployed of $438.2 million[36] - The company spent $150 million on share repurchases in Q4 2023, with cumulative cash spent reaching $2.0258 billion by Q1 2025[38] - A modified "Dutch auction" tender offer was completed on March 31, 2025, repurchasing approximately 4.9 million shares at $154 per share for a total of $750 million[38] Financial Guidance and Projections - The financial guidance for Q1 2026 projects net revenue between $650 million and $670 million, with a full year estimate of $2.7 billion to $2.76 billion, reflecting a 3% increase at midpoint[41] - Adjusted net income per diluted share guidance for 2026 is set at $3.80 to $4.00 for Q1 and $17.25 to $17.85 for the full year, indicating a 9% increase at midpoint[41] - The company anticipates full year revenue growth of 1-3% in Mobility, with a 5-7% growth expectation in both Benefits and Corporate Payments segments[41] Foreign Exchange and Other Financial Metrics - The impact of foreign exchange on revenue for the twelve months was a decrease of $6.2 million compared to the prior year[9] - The company reported a net foreign currency gain of $26.1 million for the twelve months ended December 31, 2024[59] - Unrealized gains and losses on financial instruments for the twelve months ended December 31, 2023, resulted in a net impact of $30.4 million[59] Non-GAAP Measures and Adjustments - Adjusted net income and adjusted operating income are non-GAAP measures that the Company believes are useful for evaluating performance, but should not replace GAAP measures[69] - The Company plans to utilize a fixed annual projected long-term non-GAAP tax rate starting in fiscal year 2024 to enhance consistency across reporting periods[70] - The Company reported a loss on extinguishment of Convertible Notes as part of debt restructuring costs, which are not indicative of ongoing operations[68]