WEX Inc.'s Q2 2025: Unpacking Contradictions in Mobility, HSA Growth, and Corporate Payments

Mobility segment performance and outlook, HSA account growth expectations, corporate payments segment growth and transition, corporate payments segment performance, and benefits segment growth and market share are the key contradictions discussed in WEX Inc.'s latest 2025Q2 earnings call.



Revenue and Earnings Performance:
- WEX reported revenue of $659.6 million for the quarter, a 2.1% year-over-year decrease.
- Excluding fluctuations in fuel prices and foreign exchange rates, revenue was flat compared to the prior year.
- The company's adjusted net income per diluted share was $3.95, an 1% increase from the same quarter last year.
- Higher-than-anticipated fuel prices and tight cost management contributed to the earnings outcome.

Segment Performance in Mobility:
- The Mobility segment, the company's largest segment at approximately 50% of total revenue, experienced a 3.7% decline in revenue during Q2.
- The decline was primarily due to a 4.2% drag from lower fuel prices and foreign exchange rates.
- Transaction levels declined slightly from the prior year, reflecting underlying economic activity across the customer base.

Benefits Segment Growth:
- The Benefits segment saw 8.5% year-over-year growth in total revenue, with SaaS account growth of 6%.
- Custodial investment revenue rose 11.4% to $57.8 million.
- Growth was driven by the addition of new HSA accounts and increased custodial balances, with a 7% growth in HSA accounts.

Corporate Payments Segment and Future Outlook:
- Corporate Payments segment revenue decreased 11.8% year-over-year, aligning with expectations.
- Purchase volume declined year-over-year, mainly due to a large customer transition to a new operating model.
- The segment is expected to return to growth in Q3 and accelerate in Q4, supported by new customer wins and product investments.