WEX (WEX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $636.6 million, down 2%–2.5% year-over-year, but above guidance midpoint; adjusted EPS was $3.51, up 1%–1.4% year-over-year, driven by higher-than-expected fuel prices.

• GAAP net income rose 9% to $71.5 million ($1.81 per diluted share).

• $790–$801.6 million was spent on share repurchases in Q1, reducing share count by 13.1%.

• The business remains resilient due to diversified segments, high customer retention, and proactive customer engagement amid macroeconomic uncertainty.

• Strategic investments are being made across all segments, with a focus on mobility and sales/marketing to drive long-term growth.

Financial highlights

• Total volume across all segments was $54.1 billion, down 5% year-over-year.

• Adjusted net income was $138.4 million, down 6% year-over-year; adjusted EPS grew 1%–1.4% to $3.51.

• GAAP net income per diluted share was $1.81, up 17% year-over-year.

• Adjusted free cash flow for Q1 2025 was $16.2 million.

• Share repurchases of $790–$801.6 million in Q1 reduced share count by 13.1%.

Outlook and guidance

• Q2 2025 revenue expected between $640–$660 million; adjusted EPS between $3.60–$3.80.

• Full-year 2025 revenue guidance is $2.57–$2.63 billion; adjusted EPS $14.72–$15.32, with a 7% EPS increase at midpoint due to reduced share count.

• Guidance incorporates manageable headwinds from fuel, FX, and interest rates, but not a broader economic downturn.

• Assumes average U.S. fuel price of $3.10/gallon and a 25% adjusted net income effective tax rate.