Core Insights - WEX reported strong fourth-quarter results, with revenue exceeding guidance due to higher fuel prices and a robust performance in the Benefits segment [1][4] - The company is transitioning from an investment phase to a scaling phase, with expectations for medium-term margin expansion driven by operating leverage [6][9] Financial Performance - Fourth-quarter revenue reached $672.9 million, a 5.7% increase year over year, with adjusted EPS of $4.11, up 15.1% [3][7] - For the full year 2025, WEX achieved record revenue of $2.66 billion, a 1.2% year-over-year increase, and adjusted net income per share rose to $16.10, up 5.4% [2] Segment Performance - Mobility segment revenue was $345.1 million, flat year over year, with a slight positive impact from fuel prices offset by lower interest rates [11] - Benefits segment revenue increased by 9.6% to $204.9 million, with significant growth in HSA accounts and custodial investment revenue [12] - Corporate Payments revenue rose 17.8% to $122.9 million, driven by strong travel-related revenue growth of over 30% [13] Cash Flow and Leverage - WEX generated $638 million of adjusted free cash flow in 2025, up from $562 million in 2024, and reduced leverage to 3.1x [5][14] - The company plans to prioritize debt reduction until leverage is below 3x, expected by Q2/Q3 2026 [15] 2026 Guidance - For 2026, WEX guided revenue of $2.70 billion to $2.76 billion, implying a 5% growth, and adjusted EPS of $17.25 to $17.85, indicating a 13% growth when excluding fuel prices and foreign exchange impacts [18] - The guidance includes expected revenue growth of 1% to 3% for Mobility, 5% to 7% for Benefits, and 5% to 7% for Corporate Payments [19] Strategic Focus - The company's strategy is centered on three pillars: amplifying its core, expanding its reach, and accelerating innovation, with a focus on modernizing platforms and enhancing customer value [8][9] - WEX has increased product innovation velocity by over 50% year over year, supported by an "AI-first" approach [9]