WEX (WEX) 2026 Baird Global Consumer, Technology & Services Conference summary

Business overview and strategy

• Operates in three segments: Mobility (fuel cards), Benefits (HSA, FSA, benefits admin), and Corporate Payments (B2B payments), with $2.7B revenue and 37.5% operating margin last year.

• Mobility is 45% of revenue, Benefits 30-35%, and Corporate Payments the remainder; 60% of Fortune 1000 use their solutions.

• Strategic focus on amplifying core strengths, expanding reach into new markets, and accelerating innovation, including new products like 10-4 for trucking.

• AI is leveraged to enhance client insights, automate controls, and improve margins, with recent gains in claims processing and product innovation.

• Maintains a 10%+ revenue CAGR and 17% earnings CAGR over the past decade.

Financial performance and capital allocation

• Generates over $650M in adjusted free cash flow annually, with leverage now below 3x and a new $1B stock buyback program underway.

• Buybacks began earlier than expected, with a methodical approach balancing leverage and debt paydown.

• Long-term guidance remains at 5-10% revenue growth and 10-15% earnings growth.

Segment updates and growth drivers

• Mobility segment faces macro volatility but shows improving same-store sales in trucking; new products like 10-4 and Field Service Management are driving adoption.

• BP contract expected to add 50-100 bps to segment growth, with dual loop card innovation cited as a win.

• Benefits segment sees steady account and float income growth, with regulatory tailwinds from expanded HSA eligibility.

• Corporate Payments segment targets 5-7% growth, focusing on driving volume through high-margin platforms.