WEX Inc. Q1 FY2026 earnings call

First quarter marked strong start with exceeding revenue and adjusted net income guidance. Mobility executing well despite challenging market, revenue up 3.2%. Benefits had strong open enrollment, revenue up 8.5% with HSA accounts growth. Corporate payments revenue up 9.3% with renewal and growth in non-travel. AI integrated into operations to improve customer outcomes and efficiency. Plan to deliver $50 million in cost-saving actions in 2026.

Mobility represents roughly half of revenue, with revenue increasing 3.2% year over year. Benefits represents approximately 30% of revenue, with revenue up 8.5% in the quarter. Corporate payments represents approximately 20% of revenue, with revenue increasing 9.3% in the quarter.

Q2 revenue expected to be in range of $727 million to $747 million, adjusted net income EPS between $4.93 and $5.13 per diluted share. Full year revenue expected in range of $2.82 billion to $2.88 billion, adjusted net income EPS between $18.95 and $19.55 per diluted share. Updated fuel price assumption to $4.30 per gallon in Q2 and $3.70 per gallon for full year. No longer assuming rate cuts for rest of the year.

Macro economic environment remains challenging, fuel price volatility, foreign exchange rate impacts, credit loss risks.

Q: Dave Koning from Baird asks about mobility growth acceleration and emerging benefits.

A: Melissa and Jagtar respond about execution, pull forward last year, BP roll on, pricing work.

Q: Ramsey LSL from Cantor Fitzgerald asks about downstream impact of fuel prices on credit performance and fuel spreads.

A: Response about no impact on credit quality, spreads expected to settle.

Q: Mihir Bhatia from Bank of America asks about adjusted operating margin and mobility pricing.

A: Explanation of margin components and pricing levers.

Q: Reena Kumar from Oppenheimer asks about mobility performance sustainability and benefits segment operating margin.

A: Response about slight betterment in mobility and factors affecting benefits margin.

Q: Nate Svensson from Deutsche Bank asks about pricing opportunities in mobility.

A: Discussion on pricing actions and balancing customer attrition.

Q: Chen Tseng Huang from JP Morgan asks about segment outlooks and cost savings.

A: No change in segment guidance and progress on cost savings.

Q: Sanjay Sukrani from KBW asks about mobility same-store sales and travel weakness.

A: Explanation of over-the-road market dynamics and travel weakness isolation.

Q: Madison Seward from Raymond James asks about SMB strategy and direct AP business.

A: Discussion on SMB strategy progress and direct AP volume expectations.

Q: Daniel Krebs from Wolf Research asks about full year EPS guide.

A: Clarification on passing through first quarter beat and fuel price adjustment.

Q: Michael Infante from Morgan Stanley asks about mobility same-store sales and benefits deposit economics.

A: Explanation on same-store sales convergence and deposit unit economics differential