WEX Inc.

Revenue for Q2 was $753.5 million, up 14.2% year over year; excluding fuel prices and foreign exchange, revenue grew 4.2%. Adjusted EPS was $5.35, up 35.4% year over year; excluding fuel prices and FX, adjusted EPS grew 10.1%. Adjusted operating margin increased approximately 280 basis points, and credit losses rose from 13.5 basis points to 16 basis points. On a trailing 12-month basis, adjusted free cash flow was $696 million, up 22%, and leverage finished Q2 at 2.9x. For Q3, WEX expects revenue of $733 million to $753 million and adjusted EPS of $5.45 to $5.65. For full year 2026, it now expects revenue of $2.86 billion to $2.9 billion and adjusted EPS of $19.68 to $20.08. Management said the midpoint increases versus prior guidance were driven largely by Q2 share repurchases and higher fuel price assumptions for Q3 and the full year.

Melissa D. Smith struck an upbeat but measured tone, saying the quarter built on earlier momentum and that the company exceeded the high end of guidance on both revenue and adjusted EPS. She emphasized that WEX is progressing across its three strategic pillars—amplifying core, expanding reach, and accelerating innovation—with particular focus on AI, pricing actions, and new product development. She also highlighted that the company expects to exit the year within its long-term organic revenue growth range of 5% to 10%.

Jagtar Narula emphasized that each segment performed well and that Q2 revenue and EPS beat the top end of guidance. He noted the 280 basis point adjusted operating margin improvement, cited credit losses of 16 basis points versus 13.5 basis points a year ago, and said the company generated $696 million of trailing-12-month adjusted free cash flow. He also reiterated leverage at 2.9x, inside the 2.5x to 3x target range, and said the company expects to return the vast majority of adjusted free cash flow through buybacks while using a modest amount for deleveraging.

Analysts focused on trucking/mobility trends, the buyback and free-cash-flow conversion, corporate payments volume and yield dynamics, and whether WEX is gaining share. Management said the over-the-road market is recovering on the supply side, but demand has not yet improved enough to lift miles driven; they believe the current macro assumptions are embedded in guidance and any rebound would be upside. On capital returns, Narula said annual free cash flow typically runs around $600 million to $650 million and generally tracks adjusted net income. Management also said direct AP growth reaccelerated to 20% in Q2, with roughly one-third of growth from over-the-road and two-thirds from new business, while in mobility they said they believe they are continuing to take market share.