Revenue rose 12.8% and operating income 30.1%, with fuel prices adding $57.3 million to revenue 8-K. Operating cash flow was an outflow of $11.2 million 8-K. Full-year revenue guidance was raised to $2.97 billion to $2.99 billion 8-K.
WEX Inc. · Q3 2026 · Reported 28 Oct 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 780.10 | 691.80 | +12.8 % |
Operating income | 238.80 | 183.60 | +30.1 % |
Net income | 134.10 | 80.30 | +67.0 % |
Diluted EPS | 3.88 USD/share | 2.30 USD/share | +68.7 % |
Operating cash flow | -11.20 | 376.60 | -103.0 % |
Operating margin | 30.6 % | 26.5 % | +4.1 pp |
Net margin | 17.2 % | 11.6 % | +5.6 pp |
Figures in USD, as reported. Margins are computed from the reported lines. Operating cash flow for the quarter are derived by subtracting year-to-date periods.
Operating income grew far faster than revenue, with fuel prices a named tailwind
Revenue reached $780.1 million, up 12.8% from a year earlier, and operating income rose 30.1% to $238.8 million 8-K. Operating margin widened to 30.6% from 26.5% 8-K. Management says the revenue increase includes net favorable impacts of $57.3 million from fuel prices and $0.8 million from foreign exchange 8-K.
Net income rose 67.0% to $134.1 million and diluted EPS rose 68.7% to $3.88 8-K. EPS grew slightly faster than net income, which fits the roughly $200 million of buybacks in the quarter, though that is my reading 8-K. Company-defined adjusted EPS was $6.13, up 33.6%, with adjusted operating margin of 42.6% against 39.5% 8-K.
Mobility drove the growth while the other two segments grew in single digits
Mobility revenue rose 20.6% to $435.1 million, at a 38.7% operating margin 8-K. Benefits grew 4.8% to $207.6 million and Corporate Payments 3.5% to $137.4 million 8-K. Total volume rose 18.5% to $78.5 billion, while Mobility payment processing transactions rose only 1.7% 8-K. This suggests the Mobility revenue gain leaned on price rather than activity, consistent with the fuel price benefit.
Finance fee revenue rose to $115.9 million from $83.2 million a year earlier 8-K. The provision for credit losses rose to $23.2 million from $20.4 million 8-K. Mobility credit losses are guided to 17 to 22 basis points for Q4 8-K.
Operating cash flow turned negative while the company's adjusted free cash flow rose
Net cash used for operating activities was $11.2 million in the quarter, against $376.6 million provided a year earlier 8-K. Cash conversion fell to -8% of net income from 469% a year earlier. That is a sharp weakening against a quarter that was itself unusually high, and one quarter is not a trend.
Company-defined adjusted free cash flow was $234.3 million, against $166.2 million 8-K. Management says it returned the vast majority of that to shareholders through repurchases, and the leverage ratio fell to 2.7x from 2.9x at June 30, 2026 8-K. The reconciliation between the two cash measures is the item to check.
What to watch next
Management raised full-year 2026 revenue guidance to $2.97 billion to $2.99 billion from $2.86 billion to $2.90 billion, and adjusted EPS guidance to $21.28 to $21.48 from $19.68 to $20.08 8-K.
Q4 guidance is revenue of $760 million to $780 million and adjusted EPS of $5.67 to $5.87, built on an assumed U.S. retail fuel price of $4.81 per gallon, so fuel remains a swing factor 8-K.
Whether operating cash flow recovers toward net income after the $11.2 million outflow in Q3 8-K.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.