WEX Inc. Deutsche Bank 2026 Technology Conference

Okay. All right. Does this work?

Yeah, absolutely. First of all, thanks for having me here, Nate. Glad to be here. One of the comments that we get a lot is around the complexity of the WEX business. And when we look at it, we actually think WEX isn't that complicated of a business. At the end of the day, WEX is a payments platform that we utilize across three segments of our business. In our mobility business, we are providing a payment solution for fuel for commercial customers. And they're using that to prevent fraud, to enable their drivers to optimize routes, things like that. In the corporate payments business, we are essentially the backbone for high payment volumes, like in the travel industry. One of the leading providers of helping process payments for online travel agents, and we're using the platform to move into near adjacent markets.

And then if I go to the benefits business, again, payments platform. Here, we are providing a set of benefit solutions, health savings accounts, COBRA account, flexible spending accounts, and the like. The theme across all this is a payments platform tailored for multiple segments, providing mission-critical payment delivery for organizations. We get, like I said, comments about complexity, but when you look at it isn't that complicated.

Yeah, we get a lot of questions from a trend perspective. Nothing has really changed since we had our earnings call in July. We talked a bit about it then. One of the questions we get a lot is folks track some of the indices, like the Cass Freight Index is one that a lot of folks track, including us. They've seen improvement in the Cass Freight Index, and they start to say, "Well, how does that translate into what you're seeing in WEX?" Where that index improves and where we are seeing improvement is if you look in the trucking sector, which is a material part of our mobility segment, it's around the supply side of the equation. The current administration, through a series of regulations, have reduced the supply of drivers in the market. That's reduced supply, reduced trucks.

The result of that is spot prices have increased, and that has strengthened the trucking industry. Truckers are able to move goods profitably, able to be much more profitable. That's good for the industry. It's good for us. A strong customer is important. It helps credit statistics, for example. The other part of the equation is the demand side. Actual goods moving through the economy. I think that's where we need to see continued improvement to start to see some of the shifts in same store sales that we're looking for. We track things like housing starts, manufacturing indexes, et cetera, to start to see progress on those fronts. I think with continuing strengthening of the economy, you'll start to see that transition to the demand side of the equation, and you'll start to see volumes gradually improve in our mobility segment.

Right now, as I said, we're seeing it on the supply side, which helps us from a customer's perspective, but I think over time, you'll see it on the demand side as well.

Yeah, sure. One thing I would note is we talked a bit about pricing in the last earnings call and got a lot of questions around it. This isn't actually anything new for us, right? We've periodically, regularly, evaluate pricing and evaluate the opportunity to optimize how we price. In fact, if you go back, the 2023, 2024 timeframe, we talked a lot about pricing then. I think we implemented about $70 million of pricing actions at the time, predominantly our mobility segment. So nothing new for us. What we're doing this time, and what we've talked about, is about $15 million of pricing improvement or revenue from incremental pricing coming in second half of this year, Q3 or Q4. We haven't talked a lot specifically about what those pricing actions are or what we might do going forward, just for competitive reasons.