Key Highlights

● Second-quarter revenue rose 14.2 per cent year over year to $753.5 million.

● Adjusted earnings per diluted share rose 35.4 per cent to $5.35 from $3.95.

● Operating cash flow was negative $77.6 million, against positive $264.6 million a year earlier.

● Full-year revenue guidance was raised to $2.86 billion to $2.90 billion.

WEX (NYSE:WEX), a payments company serving fleet, travel and corporate payments and employee benefits customers, reported second-quarter 2026 results on 22 July 2026. Revenue was $753.5 million, up 14.2% from $659.6 million, while GAAP net income was $108.5 million, or $3.11 per diluted share, against $1.98 a year earlier. Adjusted net income per diluted share, a non-GAAP measure, was $5.35, up 35.4% from $3.95. A third-party data provider cited consensus expectations of $5.08 per share and $740.7 million of revenue, which would imply a beat, though the consensus figures are not from the company. Operating income was $203.2 million, a 27.0% margin against 23.8%, and adjusted operating income was $298.6 million, a 39.6% margin against 36.8%. Total volume across segments was $68.9 billion, up 15.7%. Six-month revenue was $1,427.4 million and adjusted earnings per diluted share were $9.49, against $7.44.

Fuel Prices Flatter the Mobility Segment

Mobility revenue rose 22.0% to $422.4 million, but the release attributes $63.8 million of total company revenue growth to fuel prices. The average US fuel price was $4.70 per gallon, against $3.28 a year earlier, while payment processing gallons slipped to about 3,596 million from 3,625 million. The net payment processing rate in Mobility fell to 1.23% from 1.31%. Our reading is that much of the headline growth comes from a higher price level rather than higher volumes, which is a feature that can reverse.

Cash Flow, Debt and Guidance

Operating cash flow was negative $77.6 million, compared with positive $264.6 million a year ago, which the company attributed mainly to higher domestic fuel prices affecting receivables. Adjusted free cash flow, a non-GAAP measure, was $219.0 million. Short-term debt rose to $1,834.2 million and long-term debt was $3,523.0 million, while the credit agreement leverage ratio eased to 2.9 times from 3.1 times. Cash and equivalents were $1,161.5 million, and short-term deposits, a balance sheet liability, rose to $6,550.0 million from $5,423.1 million at the end of 2025. Management raised full-year guidance, with revenue now expected at $2.86 billion to $2.90 billion and adjusted earnings per diluted share at $19.68 to $20.08. Third-quarter guidance is revenue of $733 million to $753 million and adjusted earnings per share of $5.45 to $5.65. The guidance assumes a US fuel price of $3.90 per gallon in the third quarter, well below the second quarter average, so the fuel tailwind may fade.

Third-Quarter Guidance Already Assumes the Tailwind Fades

WEX's Mobility segment benefited significantly from US fuel prices averaging $4.70 a gallon versus $3.28 a year earlier, even as actual payment processing gallons slipped, so much of the headline revenue growth reflects price levels rather than volume. Operating cash flow swung sharply negative as those higher fuel prices inflated receivables, and with third-quarter guidance assuming fuel prices fall back to $3.90 a gallon, the company's own numbers suggest the fuel-driven tailwind behind this quarter's growth is expected to fade.