WEX (WEX) Q4 2024 earnings summary

Executive summary

• Full-year 2024 revenue reached a record $2.63 billion, up 3% year-over-year, despite headwinds from fuel prices and FX rates.

• Q4 2024 revenue was $636.5 million, down 4% year-over-year, with adjusted net income per diluted share at $3.57, down 7%.

• Adjusted net income per share for the full year was $15.28, up 3% year-over-year.

• Growth slowed due to macro factors (fuel, FX, trucking recession) and one-off items (contract renegotiation, customer loss).

• Ongoing investments in product innovation, sales, and marketing are expected to drive long-term growth.

Financial highlights

• Q4 2024 GAAP net income was $63.9 million, down 25% year-over-year; adjusted net income was $142.9 million, down 13%.

• Full-year 2024 GAAP net income was $309.6 million, up 16% year-over-year; adjusted net income was $631.0 million, down 2%.

• Adjusted free cash flow for 2024 was $562 million, up from $511 million in 2023.

• Company repurchased 3.3 million shares in 2024 for $650 million.

• Segment adjusted operating income margin for Q4 2024 was 37.9%, down from 39.6% in Q4 2023.

Outlook and guidance

• FY 2025 revenue guidance: $2.60–$2.66 billion; adjusted net income per diluted share: $14.65–$15.25.

• Q1 2025 revenue guidance: $625–$640 million; adjusted EPS: $3.35–$3.50.

• Guidance assumes average US retail fuel prices of $3.25/gallon, reducing 2025 revenue and adjusted EPS by $44 million and $0.68, respectively, vs. 2024.

• Long-term organic revenue growth target revised to 5%-10%; adjusted EPS target set at 10%-15%.

• Expect margin pressure in 2025, with improvement anticipated in subsequent years.