PORTLAND – Global commerce platform WEX Inc. (NYSE: WEX) on Wednesday reported stronger-than-anticipated financial results for the third quarter, citing its strategic execution as a catalyst for returning to revenue growth and prompting an increase to its full-year profit forecast.
For the three months ended Sept. 30, revenue climbed nearly 4% to $691.8 million, exceeding the high end of the company’s own guidance. The performance was driven by particular strength in its Benefits and Corporate Payments divisions.
“Our strategy to return to revenue growth was demonstrated in the third quarter with both revenue and earnings exceeding the high end of our guidance ranges,” said Melissa Smith, WEX’s chair and CEO, in a statement.
Smith described the quarter as a “turning point” and pointed to the company’s strategic pillars of amplifying its core business, expanding its reach, and accelerating innovation.
On a GAAP basis, net income fell 8.7% to $80.3 million, or $2.30 per diluted share. However, the company emphasized its adjusted net income, a non-GAAP measure that excludes various one-time expenses, which rose 5.5% to $159.7 million, or $4.59 per diluted share.
Total volume processed across all segments grew 6.3% to $66.2 billion.
Segment performance was mixed. The Mobility segment, which serves fleet customers, saw a modest 1% revenue increase to $360.8 million, while payment processing transactions declined. The Benefits segment, which handles health savings and other employee benefit accounts, posted a 9.2% revenue jump to $198.1 million. The Corporate Payments segment, focused on business-to-business transactions, saw revenue increase 4.7% to $132.8 million.
Chief Financial Officer Jagtar Narula said the results “highlight the resiliency of our business” even amid a “challenged macro environment.”
The company also improved its financial position, reporting a leverage ratio of 3.25x, down from 3.5x at the end of the first quarter.
Looking ahead, WEX provided fourth-quarter revenue guidance between $646 million and $666 million. For the full year 2025, the company now expects revenue between $2.63 billion and $2.65 billion, compared to a prior range of $2.61 billion to $2.65 billion.
More notably, WEX raised its full-year adjusted profit outlook to a range of $15.76 to $15.96 per diluted share, up from its previous forecast of $15.37 to $15.77.