WEX’s revenue increased 12.8% year over year to reach $780.1 million in the third quarter, according to the release. This was record quarterly revenue, Smith said during a Thursday (Oct. 29) earnings call.
The revenue increase included net favorable impacts of $57.3 million from fuel prices and $800,000 from foreign exchange rates, per the release.
“Results benefited from tailwinds from higher fuel prices, but the real story is the actions we have taken to strengthen execution, expand our competitive advantages and deliver sustainable growth,” Smith said during the call.
WEX’s largest segment, Mobility, which provides payments and fleet management solutions, saw its revenue leap 20.6% to $435.1 million in the third quarter, according to the release.
During the third quarter, WEX’s Mobility segment renewed an over-the-road (OTR) customer that is its largest by gallons processed and piloted an agentic account management solution, according to an earnings presentation released Thursday.
“Historically, only our largest fleets could have a dedicated account manager,” Smith said during the call. “We’re piloting an AI-driven program that reaches every customer at the moments that matter most in their experience with WEX, effectively extending sophisticated account management at scale to small fleets that couldn’t previously afford that investment.”
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WEX’s second segment, Benefits, which provides a benefits platform with integrated payments, saw its revenue rise 4.8% to $207.6 million, the release said.
During the most recent quarter, WEX’s Benefits segment saw positive customer response to its platform modernization and expanded its Claims AI processing as it continued to integrate artificial intelligence (AI) across its platform, the presentation said.
“There’s more to come as we continue to integrate AI into our solutions to take more of their critical work off their plates,” Smith said during the call. “For example, we’ve recently expanded our AI-powered claims adjudication tool to support additional account types, further strengthening the value proposition of this offering.”
WEX’s third segment, Corporate Payments, which provides B2B payments solutions to mid-sized businesses and global enterprises, saw its revenue increase 3.5% to $137.4 million, per the release.
In the third quarter, WEX’s Corporate Payments segment gained customers and developed healthy pipelines in its Direct AP and Embedded Payments businesses, per the presentation.
“Our ability to offer a broad range of virtual card solutions tailored to customers across geographies and use cases remains an important competitive differentiator,” Smith said during the call. “Expanding our embedded virtual card offerings and continuing to build momentum in Direct AP positions us well to capture the significant opportunities available in this segment.”
WEX continues to deploy AI to develop better products at a faster pace, unlock the company’s commercial potential and drive efficiency and operating leverage, according to the presentation.
“Beyond how we build our products, we believe AI becomes even more valuable when applied alongside the proprietary data our network generates, the decades of expertise earned inside our customers’ industries and the infrastructure we’ve built to move money and manage risk,” Smith said during the call. “Together, these capabilities create a combination that is very hard to replicate.”
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