WEX Inc "Q2 2026 Earnings Recap" (Neutral) Zhang

Research evidence excerpt

WEX Inc "Q2 2026 Earnings Recap" (Neutral) Zhang

BP portfolio is now fully converted and contributed ~1% (for a full

quarter in Q2) to Mobility segment revenue growth in Q2, with the company

expecting a similar ~1% contribution in Q3 and Q4. Outlook assumes the ~2%

headwind from lower late fees persists into Q3 (assuming consistent current

customer payment behavior), with Q3 Mobility revenue growth expected to be

relatively softer than Q4 as the company laps some pricing actions taken in Q3

2025. The company also anticipates 2H growth to benefit from improving

business momentum and planned pricing actions, with already-notified Mobility

pricing changes expected to contribute ~$15mm of incremental revenue in 2026

(~$5mm in Q3 and ~$10mm in Q4, largely in Finance Fees and Other).

Additionally, management expects loss rates to continue to improve through the

year.

Benefits: The company expects accounts in Benefits to increase modestly through

the remainder of the year (on an absolute and percentage basis), with

management highlighting a strong open enrollment season in 2026 and healthy

pipeline for the 2027 season.

Corporate Payments: Revenue growth exiting Q4 in the 5-6% range, with a

slight headwind in 2H as the company laps the benefit of renegotiated network

incentive fees last year. CP volume should benefit from the timing of volumes from

the large OTA customer (less in Q2 and anticipated to contribute more in 2H), with

volume in the Direct AP business anticipated in the mid-teens range through the

remainder of 2026. The net interchange rate is expected to decline modestly from

~53bps due predominantly to mix.

Additional guidance considerations: 1) WEX guided Q3 revenue to ~$733-753mm

and ANI per share to ~$5.45-5.65; 2) For FY 2026, the company raised revenue