WEX’s third quarter results for 2025 were marked by a modest negative market reaction, despite the company delivering revenue and non-GAAP profit above Wall Street expectations. Management attributed the return to growth primarily to the resilience of the Mobility segment and stabilization in Corporate Payments following the resolution of a large online travel agency (OTA) customer transition. CEO Melissa Smith addressed ongoing challenges in the over-the-road trucking market and described the macroeconomic environment as “a bit of a slog,” but highlighted efforts to retain customers and strengthen small business acquisition, which increased new small business customers by 12% year-over-year.
Is now the time to buy WEX? Find out in our full research report (it’s free for active Edge members).
WEX (WEX) Q3 CY2025 Highlights:
- Revenue: $691.8 million vs analyst estimates of $681.9 million (4% year-on-year growth, 1.5% beat)
- Adjusted EPS: $4.59 vs analyst estimates of $4.45 (3.1% beat)
- Adjusted EBITDA: $309.3 million vs analyst estimates of $303.7 million (44.7% margin, 1.8% beat)
- Adjusted EPS guidance for the full year is $15.86 at the midpoint, beating analyst estimates by 0.9%
- Operating Margin: 26.5%, down from 29.5% in the same quarter last year
- Market Capitalization: $5.08 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From WEX’s Q3 Earnings Call
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Sanjay Sakhrani (KBW) pressed for clarity on the Board’s portfolio review and how investors should view the combined segments. CEO Melissa Smith said the review, with input from two investment banks, reaffirmed the value of keeping segments unified for execution and growth.
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Darrin Peller (Wolfe Research) asked about the sustainability of Corporate Payments growth and future acceleration. Smith highlighted momentum in embedded payments and direct accounts payable, with volume growth exceeding 20% for the direct product last quarter.
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Mihir Bhatia (Bank of America) questioned risk management in the Mobility segment amid trucking weakness. Smith explained the company tightened credit standards and leveraged AI for credit decisions, helping maintain asset quality despite industry challenges.
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David Koning (Baird) inquired about Mobility’s growth momentum and prospects for improved organic growth in 2026. Smith responded that high sales and stable retention this year should generate positive momentum into next year, barring macro surprises.
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Rayna Kumar (Oppenheimer) probed for margin expectations into 2026. CFO Jagtar Narula noted that while operating income margins are likely to remain similar next year due to investment run-rate effects, the company is still finalizing its budget.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the ramp-up and revenue contribution from the BP portfolio conversion in Mobility, (2) the impact of HSA eligibility expansion on Benefits segment growth, and (3) progress in onboarding new Corporate Payments customers and embedded payment volumes. We will also track margin trends as investment levels and macro conditions evolve.
WEX currently trades at $148.03, down from $154.12 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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