WEX Inc. Reports $2.63 Billion in Revenue for 2024, Net Income Increases to $309.6 Million

WEX Inc. reported total revenues of $2.63 billion for the year ended December 31, 2024, a slight increase of 1% compared to $2.55 billion in 2023. Net income attributable to shareholders was $309.6 million in 2024, down from $266.6 million in 2023. Net income per diluted share was $7.50 in 2024 and $6.16 in 2023. The company's net cash provided by operating activities was $481.4 million in 2024, a decrease of $426.5 million compared to 2023. Adjusted net income attributable to shareholders, a non-GAAP measure, was $631.0 million in 2024, compared to $645.8 million in 2023. Adjusted free cash flow, another non-GAAP measure, was $562.0 million in 2024, up $51.4 million from 2023. Total volume processed across the company was $138.7 billion in 2024, an 8% increase from 2023.

Significant changes compared to the previous year included a 6% decrease in total volume within the Mobility segment, primarily due to lower average U.S. fuel prices, which decreased revenue by $73.8 million. However, pricing optimization efforts and the Payzer acquisition offset this decline, resulting in a 1% overall revenue increase in the Mobility segment. The Benefits segment saw an 11% revenue increase, largely driven by higher average HSA deposit balances and interest rates, as well as the Ascensus acquisition. The Corporate Payments segment experienced a 2% revenue decrease due to a contract change with a large travel customer. The company also exceeded its goal of generating $100 million in run-rate cost savings in 2024.

Strategic developments during 2024 included the launch of the EV At-Home reimbursement solution and the 10-4 by WEX trucker solution in the Mobility segment. The company also expanded its AI capabilities, particularly in customer service and benefits administration, and launched a pilot for its Benefit Assistant offering. In terms of financial strategy, the board authorized an additional $1 billion for share repurchases, bringing the total authorization to $2.05 billion. The company repurchased approximately $650 million of its common stock during 2024. The company also amended its Credit Agreement to increase its term loans and revolving credit facility availability.

Operationally, WEX had approximately 6,500 full-time employees as of December 31, 2024, with approximately 5,000 located in the United States. The company's global voluntary turnover rate was approximately 10% in 2024. In the Benefits segment, the average number of SaaS accounts was 20.3 million, a 2% increase from 2023. WEX Inc. served as custodian to $6.8 billion in HSA assets as of December 31, 2024. The company's Mobility segment served over 600,000 customers worldwide, and its Corporate Payments segment processed $138.7 billion in total volume.

The company's outlook is not explicitly stated in the provided 10-K excerpt, but the filing does mention that the impact from the travel contract change in the Corporate Payments segment is expected to affect reported revenue through the first half of 2025. The filing also notes several risk factors that could affect future performance, including fuel price volatility, economic conditions, competition, and regulatory changes.