WEX Inc.WEX
WEX Inc. Segments Disclosure
| 23. | Segment Information | ||||
The Company determines its operating segments and reports segment information in accordance with how our Chief Executive Officer, the Company’s CODM, allocates resources and assesses performance. The Company has both three operating segments and three reportable segments, as described below.
•Mobility provides payment solutions, transaction processing, and information management, serving diverse fleet needs globally. Beyond fuel payments, our portfolio includes SaaS solutions for field service management, telematics, reporting and analytics, cash flow management, and mixed-energy fleets.
•Corporate Payments delivers global B2B payment solutions, including our Direct Accounts Payable solution that integrates with ERPs and accounting workflows to maximize virtual payment usage, and our Embedded Payments solution that integrates virtual payment capabilities into existing workflows for a broad range of industries, including the travel industry. We also offer white-label partnerships with financial institutions.
•Benefits simplifies employee benefit plan administration through SaaS software integrated with payment solutions. We deliver diverse product offerings including benefit administration, HSAs, FSAs, HRAs, COBRA and direct billing, and compliance administration. WEX Inc. also serves as an IRS-designated non-bank custodian, while WEX Bank provides HSA depository services.
The CODM uses segment adjusted operating income to evaluate the financial performance of each segment and make decisions regarding the allocation of capital and resources to each segment. The CODM also uses variance analysis of segment adjusted operating income on a recurring basis to assess the performance of the segment against forecast, prior periods and the annual budget. We do not allocate assets to our operating segments as we do not use assets to assess our segment performance.
Segment revenues, expenses and adjusted operating income
Segment adjusted operating income, as reported in the following tables, excludes unallocated corporate expenses, acquisition-related intangible amortization, other acquisition and divestiture related items, debt restructuring costs, stock-based compensation, other costs and certain non-recurring or non-cash operating charges that are not core to our operations, as applicable depending on the period presented. Accordingly, certain significant expenses included below have been marked as “adjusted”, as they do not agree with similarly named expense totals appearing elsewhere within this annual report on Form 10-K, due to these exclusions.
Year Ended December 31, 2025 | |||||||||||||||||||||||
| (in millions) | Mobility | Corporate Payments | Benefits | Total | |||||||||||||||||||
Total revenues (revenues from external customers)(1) | $ | 1,386.0 | $ | 477.4 | $ | 797.4 | $ | 2,660.8 | |||||||||||||||
Less(2): | |||||||||||||||||||||||
| Processing costs, adjusted | 289.0 | 70.0 | 260.1 | ||||||||||||||||||||
| Service fees | 7.5 | 10.8 | 77.6 | ||||||||||||||||||||
| Provision for credit losses | 63.4 | 15.5 | (0.5) | ||||||||||||||||||||
| Operating interest expense | 84.1 | 19.7 | 5.2 | ||||||||||||||||||||
| Sales and marketing expense, adjusted | 240.3 | 71.8 | 54.4 | ||||||||||||||||||||
| General and administrative expense, adjusted | 98.9 | 40.6 | 21.4 | ||||||||||||||||||||
Other segment items(3) | 61.6 | 35.8 | 37.7 | ||||||||||||||||||||
Segment adjusted operating income (4) | $ | 541.1 | $ | 213.3 | $ | 341.6 | $ | 1,095.9 | |||||||||||||||
Year Ended December 31, 2024 | |||||||||||||||||||||||
| (in millions) | Mobility | Corporate Payments | Benefits | Total | |||||||||||||||||||
Total revenues (revenues from external customers)(1) | $ | 1,400.8 | $ | 487.8 | $ | 739.5 | $ | 2,628.1 | |||||||||||||||
Less(2): | |||||||||||||||||||||||
| Processing costs, adjusted | 278.9 | 68.4 | 253.0 | ||||||||||||||||||||
| Service fees | 7.2 | 11.7 | 64.8 | ||||||||||||||||||||
| Provision for credit losses | 61.0 | 7.7 | (0.5) | ||||||||||||||||||||
| Operating interest expense | 89.7 | 9.7 | 4.6 | ||||||||||||||||||||
| Sales and marketing expense, adjusted | 208.4 | 56.9 | 53.4 | ||||||||||||||||||||
| General and administrative expense, adjusted | 104.2 | 48.0 | 25.5 | ||||||||||||||||||||
Other segment items(3) | 52.9 | 29.2 | 31.6 | ||||||||||||||||||||
Segment adjusted operating income (4) | $ | 598.5 | $ | 256.2 | $ | 307.0 | $ | 1,161.7 | |||||||||||||||
Year Ended December 31, 2023 | |||||||||||||||||||||||
| (in millions) | Mobility | Corporate Payments | Benefits | Total | |||||||||||||||||||
Total revenues (revenues from external customers)(1) | $ | 1,382.7 | $ | 496.9 | $ | 668.4 | $ | 2,548.0 | |||||||||||||||
Less(2): | |||||||||||||||||||||||
| Processing costs, adjusted | 268.4 | 70.6 | 239.6 | ||||||||||||||||||||
| Service fees | 7.6 | 12.6 | 53.0 | ||||||||||||||||||||
| Provision for credit losses | 87.1 | (4.7) | 7.4 | ||||||||||||||||||||
| Operating interest expense | 69.5 | 9.4 | 5.3 | ||||||||||||||||||||
| Sales and marketing expense, adjusted | 200.0 | 52.6 | 53.3 | ||||||||||||||||||||
| General and administrative expense, adjusted | 109.7 | 59.7 | 40.8 | ||||||||||||||||||||
Other segment items(3) | 40.9 | 19.5 | 27.2 | ||||||||||||||||||||
Segment adjusted operating income (4) | $ | 599.4 | $ | 277.2 | $ | 241.8 | $ | 1,118.4 | |||||||||||||||
(1) No one customer accounted for more than 10 percent of the total consolidated revenue in 2025, 2024 or 2023.
(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Given the increase in both provision for credit losses and operating interest expense, it was determined during the third quarter of 2025 that such expenses are deemed significant for all segments, whereas previously were only considered significant for the Mobility segment. Segment information for previous periods has been recast to conform to the current-period presentation.
(3) Other segment items for the Mobility, Corporate Payments and Benefits reportable segments include depreciation expense for each of the periods presented.
(4) See following table for a reconciliation of segment adjusted operating income to income before income taxes.
Segment adjusted operating income reconciliation
| Year ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Segment adjusted operating income: | |||||||||||||||||
| Mobility | $ | 541.1 | $ | 598.5 | $ | 599.4 | |||||||||||
| Corporate Payments | 213.3 | 256.2 | 277.2 | ||||||||||||||
| Benefits | 341.6 | 307.0 | 241.8 | ||||||||||||||
| Total segment adjusted operating income | $ | 1,095.9 | $ | 1,161.7 | $ | 1,118.4 | |||||||||||
| Year ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Reconciliation: | |||||||||||||||||
| Total segment adjusted operating income | $ | 1,095.9 | $ | 1,161.7 | $ | 1,118.4 | |||||||||||
| Less: | |||||||||||||||||
| Unallocated corporate expenses | 98.5 | 102.1 | 103.0 | ||||||||||||||
| Acquisition-related intangible amortization | 191.9 | 201.8 | 184.0 | ||||||||||||||
| Other acquisition and divestiture related items | 3.4 | 5.7 | 6.6 | ||||||||||||||
| Impairment charges | 9.9 | — | — | ||||||||||||||
| Stock-based compensation | 103.5 | 111.9 | 131.6 | ||||||||||||||
| Other costs | 24.8 | 53.9 | 46.1 | ||||||||||||||
| Add: | |||||||||||||||||
| Financing interest expense, net of financial instruments | (240.6) | (235.9) | (204.6) | ||||||||||||||
| Net foreign currency (loss) gain | (0.2) | (26.1) | 4.9 | ||||||||||||||
| Loss on extinguishment of Convertible Notes | — | — | (70.1) | ||||||||||||||
| Change in fair value of contingent consideration | (2.9) | (6.5) | (8.5) | ||||||||||||||
| Income before income taxes | $ | 420.2 | $ | 417.8 | $ | 368.8 | |||||||||||
Other segment disclosures
| (in millions) | Mobility | Corporate Payments | Benefits | ||||||||||||||
Year Ended December 31, 2025: | |||||||||||||||||
Interest income(1) | $ | 15.3 | $ | 12.9 | $ | 196.2 | |||||||||||
| Operating interest expense | $ | 84.1 | $ | 19.7 | $ | 5.2 | |||||||||||
Depreciation(2) | $ | 61.6 | $ | 35.8 | $ | 37.7 | |||||||||||
Year Ended December 31, 2024: | |||||||||||||||||
Interest income(1) | $ | 13.4 | $ | 22.7 | $ | 163.3 | |||||||||||
| Operating interest expense | $ | 89.7 | $ | 9.7 | $ | 4.6 | |||||||||||
Depreciation(2) | $ | 52.9 | $ | 29.2 | $ | 31.6 | |||||||||||
Year Ended December 31, 2023: | |||||||||||||||||
Interest income(1) | $ | 17.5 | $ | 21.6 | $ | 109.1 | |||||||||||
| Operating interest expense | $ | 69.5 | $ | 9.4 | $ | 5.3 | |||||||||||
Depreciation(2) | $ | 40.9 | $ | 19.5 | $ | 27.2 | |||||||||||
(1)The amounts of interest income disclosed by reportable segment are included within total revenues in the preceding tables.
(2)The amounts of depreciation disclosed by reportable segment are included within other segment items. Amounts do not include amortization of intangible assets, as amortization is not included in determining segment adjusted operating income.
Geographic Data
Revenue by principal geographic area, based on the country in which the sale originated, was as follows:
| Year ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 2,335.7 | $ | 2,289.5 | $ | 2,193.8 | |||||||||||
Other international(1) | 325.0 | 338.7 | 354.2 | ||||||||||||||
| Total revenues | $ | 2,660.8 | $ | 2,628.1 | $ | 2,548.0 | |||||||||||
(1)No single country made up more than 10 percent of total revenues for any of the years presented.
Net property, equipment and capitalized software is subject to geographic risks because it is generally difficult to move and relatively illiquid. Net property, equipment and capitalized software by principal geographic area was as follows:
| Year ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 244.0 | $ | 251.6 | $ | 231.7 | |||||||||||
| Other international | 9.7 | 9.6 | 11.2 | ||||||||||||||
| Net property, equipment and capitalized software | $ | 253.7 | $ | 261.2 | $ | 242.9 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 6, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.