WEX: Targeting an Exit Rate In Line With LT Growth Targets

Research evidence excerpt

WEX: Targeting an Exit Rate In Line With LT Growth Targets

Deutsche Bank

Research

Rating Company Date

Hold WEX 23 July 2026

North America Reuters Bloomberg Rating Hold

United States WEX.N WEX US Price target (USD) 160.00 Price at 22 Jul 26 155.68

52-week range 184.93 – 39.97

TMT

Payments, Processors, & IT Valuation & Risks

Services

Targeting an Exit Rate In Line With LT Growth

Targets NateResearchSvensson,AnalystCFA

+1-917-547-4768

Key Takeaway – New investor focus on Mobility growth ex late fees

Hersh Shintre, CFA Since we put out our quick take last night (see here for more detail), investor focus Research Associate

in Mobility has centered around macro-adjusted revenue growth excluding late +1-917-459-1162

fees (which feels like it has become a new KPI for the company to hit) given late

fees are directly corelated with fuel prices. While mgmt. highlighted a ~2ppt Paul Tomaszewski

Research Associate headwind from late-fee revenue (relative to what they were expecting with the

+917-419-2598

rise in fuel prices), investors have pushed back on Mobility numbers, noting that

macro-adjusted growth excluding late fees deteriorated to -2.2% Y/Y in 2Q26

from +3.6% in 1Q26, suggesting underlying Mobility trends may be weaker than

headline results imply. However, it is our understanding that the late-fee benefits

from higher fuel prices are, indeed, incorporated into WEX’s reported fuel impact

(we believe ~40% of the ~$64m fuel price tailwind in 2Q26 showed up in late

fees). Outside of Mobility, Corporate Payments growth was in line with our

expectation as Direct AP volumes re-accelerated to ~20% Y/Y, benefiting from

new business wins. There were some timing issues impacting volumes in

Corporate Payments as a large OTA customer shifted some volumes from 2Q26