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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number: 001-32426
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WEX Inc.
(Exact name of registrant as specified in its charter)
Delaware 01-0526993
(State or other jurisdiction of
incorporation or organization)		 (I.R.S. Employer
Identification No.)
1 Hancock St.,Portland,ME 04101
(Address of principal executive offices) (Zip Code)
(207) 773–8171
(Registrant’s telephone number, including area code) 
N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueWEXNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes   ☐ No

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S–T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes   ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b–2 of the Exchange Act.
Large Accelerated Filer☒  Accelerated Filer☐
Non-accelerated Filer☐  Smaller Reporting Company☐
Emerging Growth Company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b–2 of the Exchange Act).    
☐ Yes  ☒  No

Number of shares of common stock outstanding as of October 19, 2023 was 42,737,339.

TABLE OF CONTENTS
PART I—FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II—OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
 



2
Unless otherwise indicated or required by the context, the terms “we,” “us,” “our,” “WEX,” or the “Company,” in this Quarterly Report on Form 10–Q refers to WEX Inc. and all of its subsidiaries that are consolidated under Generally Accepted Accounting Principles in the United States.
FORWARD–LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for statements that are forward-looking and are not statements of historical facts. This Quarterly Report includes forward-looking statements including, but not limited to, statements about management’s plans and goals. Any statements in this Quarterly Report that are not statements of historical facts are forward-looking statements. When used in this Quarterly Report, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. Forward-looking statements relate to our future plans, objectives, expectations and intentions and are not historical facts and accordingly involve known and unknown risks and uncertainties and other factors that may cause the actual results or performance to be materially different from future results or performance expressed or implied by these forward-looking statements. The following factors, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this Quarterly Report and in oral statements made by our authorized officers:
•the impact of fluctuations in demand for fuel and the volatility, and prices, of fuel, including fuel spreads in the Company’s international markets, and the resulting impact on the Company’s margins, revenues, and net income;
•the effects of general economic conditions, including a decline in demand for fuel, corporate payment services, travel related services, or healthcare related products and services;
•failure to implement new technologies and products;
•breaches of, or other issues with, the Company’s technology systems or those of its third-party service providers and any resulting negative impact on its reputation, liabilities or relationships with customers or merchants;
•the actions of regulatory bodies, including banking and securities regulators, or possible changes in banking or financial regulations impacting the Company’s industrial bank, the Company as the corporate parent or other subsidiaries or affiliates;
•the failure to maintain or renew key customer and partner agreements and relationships, or to maintain volumes under such agreements;
•the impact and size of credit losses, including fraud losses, and other adverse effects if the Company fails to adequately assess and monitor credit risk or fraudulent use of our payment cards or systems;
•changes in interest rates, including those which we must pay for our deposits, and the rate of inflation;
•the effect of adverse financial conditions affecting the banking system;
•the failure to adequately safeguard custodial HSA assets;
•the failure of corporate investments to result in any anticipated economic or strategic value;
•the extent to which unpredictable events in the locations in which the Company or the Company’s customers operate or elsewhere may adversely affect the Company’s employees, ability to conduct business, results of operations and financial condition;
•the failure to comply with the applicable requirements of Mastercard or Visa contracts and rules;
•the failure to comply with the Treasury Regulations applicable to non-bank custodians;
•the ability to attract and retain employees;
•the ability of the Company to protect its proprietary rights;
•the ability to incorporate artificial intelligence in our business successfully and ethically;
•limitations on or compression of interchange fees;
•the effects of the Company’s business expansion and acquisition efforts;
•the failure to achieve commercial and financial benefits as a result of our strategic minority equity investments;
•the impact of changes to the Company’s credit standards;
•the impact of foreign currency exchange rates on the Company’s operations, revenue and income and other risks associated with operations outside the United States;
•the impact of the Company’s debt instruments on the Company’s operations;
•the impact of leverage on the Company’s operations, results or borrowing capacity generally, and as a result of acquisitions specifically;
•the impact of sales or dispositions of significant amounts of the Company’s outstanding common stock into the public market, or the perception that such sales or dispositions could occur;
•the impact of regulatory capital requirements and other regulatory requirements on the operations of WEX Bank or its ability to make payments to WEX Inc.;
•the possible dilution to the Company’s stockholders caused by the issuance of additional shares of common stock or equity-linked securities;
3
•the incurrence of impairment charges if the Company’s assessment of the fair value of certain of its reporting units changes;
•the uncertainties of litigation; as well as
•other risks and uncertainties identified in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 28, 2023, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023, filed with the SEC on April 27, 2023 and July 27, 2023, respectively, and subsequent filings with the Securities and Exchange Commission.
The forward-looking statements speak only as of the date of the initial filing of this Quarterly Report and undue reliance should not be placed on these statements. The Company disclaims any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
4
ACRONYMS AND ABBREVIATIONS
The acronyms and abbreviations identified below are used in this Quarterly Report, including the condensed consolidated financial statements and the notes thereto. The following is provided to aid the reader and provide a reference point when reviewing this Quarterly Report.
Adjusted free cash flow
A non-GAAP measure that is calculated as cash flows from operating activities, adjusted for net purchases of current investment securities, capital expenditures, the change in net deposits, changes in borrowings under the BTFP and borrowed federal funds and certain other adjustments.
Adjusted net income or ANI
A non-GAAP measure that adjusts net income (loss) attributable to shareholders to exclude unrealized gains and losses on financial instruments, net foreign currency gains and losses, change in fair value of contingent consideration, acquisition-related intangible amortization, other acquisition and divestiture related items, stock-based compensation, other costs, debt restructuring and debt issuance cost amortization, similar adjustments attributable to our non-controlling interests and certain tax related items.
Amended and Restated Credit AgreementCredit agreement entered into on July 1, 2016 (as amended from time to time) by and among the Company and certain of its subsidiaries, as borrowers, and Bank of America, N.A., as administrative agent on behalf of the lenders, as amended and restated on April 1, 2021 (and as amended from time to time thereafter).
Ascensus AcquisitionThe acquisition from Ascensus, LLC of certain entities, which comprised the health and benefits business of Ascensus.
Average number of SaaS accountsRepresents the number of active consumer-directed health, COBRA, and billing accounts on our SaaS platforms
B2BBusiness-to-Business
BTFPThe Federal Reserve Bank Term Funding Program, which provides liquidity to U.S. depository institutions
CODMChief Operating Decision Maker
CompanyWEX Inc. and all entities included in the consolidated financial statements.
Convertible NotesConvertible senior unsecured notes due on July 15, 2027 in an aggregate principal amount of $310.0 million with a 6.5 percent interest rate, issued July 1, 2020, which were repurchased by the Company and canceled by the trustee at the instruction of the Company on August 11, 2023.
Corporate CashCalculated in accordance with the terms of our consolidated leverage ratio in the Company’s Amended and Restated Credit Agreement.
Discovery BenefitsDiscovery Benefits, Inc., an employee benefits administrator
DSUsDeferred Stock Units held by non-employee directors.
FDICFederal Deposit Insurance Corporation
Federal Reserve Bank Discount WindowMonetary policy that allows WEX to borrow funds on a short-term basis to meet temporary shortages of liquidity caused by internal or external disruptions.
GAAPGenerally Accepted Accounting Principles in the United States
HSAHealth Savings Account
LIBORLondon Interbank Offered Rate
NAVNet Asset Value
Net interchange rateRepresents the percentage of the dollar value of each payment processing transaction that WEX records as revenue from merchants, less certain discounts given to customers and network fees.
Net late fee rateNet late fee rate represents late fee revenue as a percentage of fuel purchased by fleets that have a payment processing relationship with WEX.
Net payment processing rateThe percentage of each payment processing $ of fuel that the Company records as revenue from merchants less certain discounts given to customers and network fees.
Operating cash flowNet cash provided by (used for) operating activities
Operating interestInterest expense incurred on the operating debt obtained to provide liquidity for the Company’s short-term receivables or used for investing purposes in fixed income debt securities.
Over-the-roadTypically, heavy trucks traveling long distances.
Payment processing $ of fuelTotal dollar value of the fuel purchased by fleets that have a payment processing relationship with WEX.
Payment processing transactionsTotal number of purchases made by fleets that have a payment processing relationship with the Company where the Company maintains the receivable for the total purchase.
PO HoldingPO Holding, LLC, a wholly-owned subsidiary of WEX Inc. and the direct parent of WEX Health.
Processing costsExpenses related to processing transactions, servicing customers and merchants and costs of goods sold related to hardware and other product sales.
Purchase volumePurchase volume in the Corporate Payments segment represents the total dollar value of all WEX-issued transactions that use WEX corporate card products and virtual card products. Purchase volume in the Benefits segment represents the total dollar value of all transactions where interchange is earned by WEX.
Redeemable non-controlling interestThe portion of the U.S. Benefits business’ net assets owned by a non-controlling interest holder, SBI, prior to the March 7, 2022 acquisition of SBI’s remaining interest in PO Holding.
SaaSSoftware-as-a-Service
5
SBISBI Investments, Inc., which is owned by State Bankshares, Inc., and was a minority interest holder in PO Holding, LLC., a subsidiary of WEX Inc. and the direct parent of WEX Health.
SECSecurities and Exchange Commission
Segment adjusted operating incomeA non-GAAP measure that adjusts operating income to exclude specified items that the Company’s management excludes in evaluating segment performance, including unallocated corporate expenses, acquisition-related intangible amortization and other acquisition and divestiture related items, debt restructuring costs, stock-based compensation, impairment charges and other costs.
Service feesCosts incurred from third-party networks utilized to deliver payment solutions and other third-parties utilized in performing services directly related to generating revenue.
SOFRSecured Overnight Financing Rate
Topic 606ASC Section 606, Revenue from Contracts with Customers
Total volume
Includes purchases on WEX-issued accounts as well as purchases issued by others, but using a WEX platform.
UDFIUtah Department of Financial Institutions
U.S. Benefits business(i) prior to March 31, 2021, WEX Health, Inc. and Discovery Benefits, LLC., collectively, (ii) from March 31, 2021 to June 1, 2021, WEX Health, Inc., (iii) from June 1, 2021 to April 30, 2022, WEX Health, Inc. and benefitexpress, collectively, and (iv) from April 30, 2022, WEX Health, Inc.
WEX
WEX Inc., unless otherwise indicated or required by the context
WEX AustraliaWEX Card Holdings Australia Pty Ltd and its subsidiaries
WEX BankAn industrial bank organized under the laws of the State of Utah, and wholly owned subsidiary of WEX, Inc.
WEX Europe ServicesWEX Europe Service Limited, a European Mobility business
WEX HealthWEX Health, Inc., the Company’s healthcare technology and administration solutions provider/business.


6
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
WEX INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
 
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Revenues
Payment processing revenue$313.3 $309.0 $901.9 $860.8 
Account servicing revenue161.5 138.3 475.1 415.9 
Finance fee revenue77.1 96.7 234.2 260.6 
Other revenue99.5 72.1 273.5 194.6 
Total revenues651.4 616.1 1,884.7 1,731.9 
Cost of services
Processing costs156.4 146.3 451.7 416.3 
Service fees18.5 16.6 54.7 47.2 
Provision for credit losses9.4 54.0 77.5 121.9 
Operating interest25.3 7.9 57.6 13.4 
Depreciation and amortization25.5 27.3 75.9 79.9 
Total cost of services235.1 252.1 717.4 678.6 
General and administrative116.6 86.5 311.7 248.7 
Sales and marketing82.8 80.9 241.6 235.3 
Depreciation and amortization42.0 38.9 125.4 118.2 
Impairment charges— 136.5 — 136.5 
Operating income174.9 21.3 488.6 314.7 
Financing interest expense(41.6)(34.4)(122.4)(95.9)
Change in fair value of contingent consideration(3.2)(30.3)(6.2)(135.1)
Loss on extinguishment of Convertible Notes(70.1)— (70.1)— 
Net foreign currency loss(7.8)(23.4)(9.4)(37.8)
Net unrealized (loss) gain on financial instruments(7.8)23.5 (20.1)90.3 
Income (loss) before income taxes44.4 (43.3)260.4 136.1 
Income tax expense26.0 0.8 78.7 57.3 
Net income (loss)18.4 (44.1)181.7 78.8 
Less: Net income from non-controlling interests— — — 0.3 
Net income (loss) attributable to WEX Inc.18.4 (44.1)181.7 78.5 
Change in value of redeemable non-controlling interest— — — 34.2 
Net income (loss) attributable to shareholders$18.4 $(44.1)$181.7 $112.7 
Net income (loss) attributable to shareholders per share:
Basic$0.43 $(1.00)$4.23 $2.53 
Diluted$0.42 $(1.00)$4.18 $2.51 
Weighted average common shares outstanding:
Basic42.9 44.2 43.0 44.6 
Diluted43.4 44.2 43.5 45.0 
See notes to the unaudited condensed consolidated financial statements.

7
WEX INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in millions)
(unaudited)
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Net income (loss)$18.4 $(44.1)$181.7 $78.8 
Other comprehensive loss, net of tax:
  Unrealized losses on available-for-sale debt securities(55.8)(56.8)(63.5)(150.5)
  Foreign currency translation(22.0)(42.3)(15.7)(83.8)
Other comprehensive loss, net of tax(77.8)(99.1)(79.2)(234.3)
Comprehensive (loss) income(59.4)(143.2)102.5 (155.5)
Less: Comprehensive income attributable to non-controlling interests— — — 0.3 
Comprehensive (loss) income attributable to WEX Inc.$(59.4)$(143.2)$102.5 $(155.8)
See notes to the unaudited condensed consolidated financial statements.
8
WEX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
(unaudited) 
September 30,
2023		December 31,
2022
Assets
Cash and cash equivalents$957.8 $922.0 
Restricted cash1,159.1 937.8 
Accounts receivable, net4,053.5 3,275.7 
Investment securities2,625.2 1,395.3 
Securitized accounts receivable, restricted147.2 143.2 
Prepaid expenses and other current assets189.0 143.3 
Total current assets9,131.8 6,817.1 
Property, equipment and capitalized software (net of accumulated depreciation of $592.6 in 2023 and $529.9 in 2022)
228.9 202.2 
Goodwill2,796.9 2,728.9 
Other intangible assets (net of accumulated amortization of $1,302.5 in 2023 and $1,173.2 in 2022)
1,443.4 1,473.6 
Investment securities46.8 48.0 
Deferred income taxes, net11.6 13.4 
Other assets241.0 246.0 
Total assets$13,900.4 $11,529.2 
Liabilities and Stockholders’ Equity
Accounts payable$1,742.7 $1,365.8 
Accrued expenses and other current liabilities745.1 643.9 
Restricted cash payable1,158.4 937.1 
Short-term deposits4,252.8 3,144.6 
Short-term debt, net957.3 202.6 
Total current liabilities8,856.3 6,294.1 
Long-term debt, net2,650.1 2,522.2 
Long-term deposits115.5 334.2 
Deferred income taxes, net140.5 142.2 
Other liabilities441.7 587.1 
Total liabilities12,204.1 9,879.7 
Stockholders’ Equity
Common stock $0.01 par value; 175.0 shares authorized; 49.9 shares issued in 2023 and 49.6 in 2022; 42.7 shares outstanding in 2023 and 43.2 in 2022
0.5 0.5 
Additional paid-in capital1,018.3 928.0 
Retained earnings1,672.2 1,490.5 
Accumulated other comprehensive loss(385.5)(306.3)
Treasury stock at cost; 7.1 and 6.3 shares in 2023 and 2022, respectively
(609.2)(463.2)
Total stockholders’ equity1,696.3 1,649.5 
Total liabilities and stockholders’ equity$13,900.4 $11,529.2 
See notes to the unaudited condensed consolidated financial statements.
9
WEX INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in millions)
(unaudited)


Common Stock IssuedAdditional
Paid-in 
Capital		Retained EarningsAccumulated Other Comprehensive LossTreasury StockTotal Stockholders’
Equity
SharesAmount
Balance at January 1, 202349.6 $0.5 $928.0 $1,490.5 $(306.3)$(463.2)$1,649.5 
Stock issued under share-based compensation plans0.1 — 6.3 — — — 6.3 
Share repurchases for tax withholdings— — (8.8)— — — (8.8)
Stock-based compensation expense— — 25.3 — — — 25.3 
Unrealized gain on available-for-sale debt securities— — — — 22.2 — 22.2 
Purchase of shares of treasury stock— — — — — (92.8)(92.8)
Foreign currency translation— — — — 0.8 — 0.8 
Net income— — — 68.0 — — 68.0 
Balance at March 31, 202349.7 $0.5 $950.8 $1,558.5 $(283.3)$(556.0)$1,670.5 
Stock issued under share-based compensation plans0.1 — 1.2 — — — 1.2 
Share repurchases for tax withholdings— — (6.6)— — — (6.6)
Purchase of shares of treasury stock— — — — — (3.2)(3.2)
Stock-based compensation expense— — 35.9 — — — 35.9 
Unrealized loss on available-for-sale debt securities— — — — (29.9)— (29.9)
Foreign currency translation— — — — 5.5 — 5.5 
Net income— — — 95.3 — — 95.3 
Balance at June 30, 202349.8 $0.5 $981.3 $1,653.8 $(307.7)$(559.2)$1,768.7 
Stock issued under share-based compensation plans0.1 — 8.1 — — — 8.1 
Share repurchases for tax withholdings— — (1.6)— — — (1.6)
Purchase of shares of treasury stock— — — — — (50.0)(50.0)
Stock-based compensation expense— — 30.5 — — — 30.5 
Unrealized loss on available-for-sale debt securities— — — — (55.8)— (55.8)
Foreign currency translation— — — — (22.0)— (22.0)
Net income— — — 18.4 — — 18.4 
Balance at September 30, 202349.9 $0.5 $1,018.3 $1,672.2 $(385.5)$(609.2)$1,696.3 
10
WEX INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (continued)
(in millions)
(unaudited)


 Common Stock Issued Additional
Paid-in 
Capital		Retained EarningsAccumulated Other Comprehensive LossTreasury StockTotal Stockholders’
Equity
 SharesAmount
Balance at January 1, 202249.3 $0.5 $844.1 $1,289.1 $(122.5)$(172.3)$1,838.8 
Stock issued under share-based compensation plans0.2 — 0.8 — — — 0.8 
Share repurchases for tax withholdings— — (12.2)— — — (12.2)
Stock-based compensation expense— — 23.7 — — — 23.7 
Unrealized loss on available-for-sale debt securities— — — — (51.7)— (51.7)
Change in value of redeemable non-controlling interest, net of $3.5 million of tax expense
— — — 34.2 — — 34.2 
Foreign currency translation— — — — 4.3 — 4.3 
Net income— — — 88.5 — — 88.5 
Balance at March 31, 202249.4 $0.5 $856.3 $1,411.9 $(169.9)$(172.3)$1,926.5 
Stock issued under share-based compensation plans0.1 — 2.3 — — — 2.3 
Share repurchases for tax withholdings— — (3.1)— — — (3.1)
Purchase of shares of treasury stock— — — — — (80.6)(80.6)
Stock-based compensation expense— — 24.9 — — — 24.9 
Unrealized loss on available-for-sale debt securities— — — — (42.1)— (42.1)
Foreign currency translation— — — — (45.7)— (45.7)
Net income— — — 34.1 — — 34.1 
Balance at June 30, 202249.5 $0.5 $880.5 $1,446.0 $(257.7)$(252.9)$1,816.4 
Stock issued under share-based compensation plans— — 0.7 — — — 0.7 
Share repurchases for tax withholdings— — (1.9)— — — (1.9)
Purchase of shares of treasury stock— — — — — (69.0)(69.0)
Stock-based compensation expense— — 28.2 — — — 28.2 
Unrealized loss on available-for-sale debt securities— — — — (56.8)— (56.8)
Foreign currency translation— — — — (42.3)— (42.3)
Net loss— — — (44.1)— — (44.1)
Balance at September 30, 202249.5 $0.5 $907.5 $1,401.8 $(356.8)$(322.0)$1,631.1 

See notes to the unaudited condensed consolidated financial statements.

11
WEX INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
 Nine Months Ended September 30,
 20232022
Cash flows from operating activities
Net income$181.7 $78.8 
Adjustments to reconcile net income to net cash provided by operating activities:
Change in fair value of contingent consideration6.2 135.1 
Stock-based compensation91.7 76.8 
Depreciation and amortization201.3 198.1 
Deferred tax benefit(0.4)(54.1)
Provision for credit losses77.5 121.9 
Impairment charges— 136.5 
Loss on extinguishment of Convertible Notes70.1 — 
Other non-cash adjustments43.7 (41.6)
Changes in operating assets and liabilities, net of effects of business acquisitions:
Accounts receivable and securitized accounts receivable(842.0)(1,147.8)
Prepaid expenses and other current and other long-term assets(27.7)(11.2)
Accounts payable387.4 568.4 
Accrued expenses and other current and long-term liabilities(12.6)34.9 
Income taxes(30.9)10.8 
Net cash provided by operating activities146.0 106.6 
Cash flows from investing activities
Purchases of property, equipment and capitalized software(101.7)(75.5)
Purchase of other investments(5.0)— 
Purchases of available-for-sale debt securities(1,448.6)(633.0)
Sales and maturities of available-for-sale debt securities144.1 48.0 
Acquisition of intangible assets(4.5)(3.3)
Acquisitions, net of cash and restricted cash acquired(155.7)— 
Net cash used for investing activities(1,571.4)(663.9)
Cash flows from financing activities
Purchase of treasury shares(152.6)(149.6)
Net change in deposits889.9 960.6 
Net change in restricted cash payable213.1 350.1 
Borrowings on revolving credit facility2,479.7 1,825.4 
Repayments on revolving credit facility(2,008.1)(1,857.0)
Repayments on term loans(47.5)(47.5)
Repurchase of Convertible Notes(368.9)— 
Borrowings on BTFP750.0 — 
Repayments on BTFP(250.0)— 
Net change in borrowed federal funds260.1 — 
Net borrowings on other debt(4.8)34.9 
Payments of deferred and contingent consideration(52.2)— 
Other financing activities(3.4)(13.3)
Net cash provided by financing activities1,705.3 1,103.5 
Effect of exchange rates on cash, cash equivalents and restricted cash(22.8)(101.5)
Net change in cash, cash equivalents and restricted cash257.1 444.7 
Cash, cash equivalents and restricted cash, beginning of period(a)
1,859.8 1,256.8 
Cash, cash equivalents and restricted cash, end of period(a)
$2,116.9 $1,701.5 


12
WEX INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in millions)
(unaudited)


The following table provides supplemental disclosure of non-cash investing and financing activities:
Nine Months Ended September 30,
20232022
Capital expenditures incurred but not paid$9.0 $7.4 
Maturities of available-for-sale debt securities, unsettled as of period-end15.0 — 
Initial deferred liability from acquisition of remaining interest in PO Holding— 216.6 

(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our condensed consolidated balance sheets to amounts within our condensed consolidated statements of cash flows.
 Nine Months Ended September 30,
 20232022
Cash and cash equivalents at beginning of period$922.0 $588.9 
Restricted cash at beginning of period937.8 667.9 
Cash, cash equivalents and restricted cash at beginning of period$1,859.8 $1,256.8 
Cash and cash equivalents at end of period$957.8 $759.4 
Restricted cash at end of period1,159.1 942.1 
Cash, cash equivalents and restricted cash at end of period$2,116.9 $1,701.5 

See notes to the unaudited condensed consolidated financial statements.

13


WEX INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)



1.Basis of Presentation
The accompanying condensed consolidated financial statements, which include the accounts of WEX Inc. and its subsidiaries, have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10–Q and Rule 10–01 of Regulation S–X. Accordingly, they exclude certain disclosures required by GAAP for a complete set of financial statements. Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q to “WEX,” the “Company,” “we” or “our” refer to WEX Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP, which are of a normal recurring nature, have been included. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results for any future periods or the year ending December 31, 2023. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements that are included in the Company’s Annual Report on Form 10–K for the year ended December 31, 2022, filed with the SEC on February 28, 2023 (“2022 Annual Report”).
We have applied the same accounting policies in preparing these quarterly financial statements as we did in preparing our 2022 annual financial statements. The Company rounds amounts in the condensed consolidated financial statements to millions and calculates all percentages and per-share data from underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot or recalculate based on reported numbers due to rounding. We have included certain terms and abbreviations used throughout this Quarterly Report on Form 10-Q within “Acronyms and Abbreviations” in the front of this document.
In connection with a rebranding initiative, during the first quarter of 2023 the Company renamed its existing reportable segments. The Fleet Solutions segment was renamed to Mobility, the Travel and Corporate Solutions segment was renamed to Corporate Payments and the Health and Employee Benefits Solutions segment was renamed to Benefits. These notes to the condensed consolidated financial statements incorporate these changes. There were no changes to the composition of our reportable segments.
Reclassifications
Beginning December 31, 2022, within the condensed consolidated statements of cash flows, accrued expenses are combined with other current and long-term liabilities within cash flows from operating activities and the change in restricted cash payable is presented separately. The change in restricted cash payable, which had previously been presented within cash flows from operating activities, is now reflected within cash flows from financing activities. Prior period amounts have been reclassified to conform to the current period presentation, which includes the reclassification of restricted cash payable inflows of $350.1 million from operating cash flows to financing cash flows for the nine months ended September 30, 2022.

2.Significant Accounting Policies
Significant Accounting Policies
The significant accounting policies used in preparation of these condensed consolidated financial statements as of and for the nine months ended September 30, 2023, are consistent with those discussed in “Note 1, Basis of Presentation and Summary of Significant Accounting Policies” to the consolidated financial statements in our 2022 Annual Report.
Recent Accounting Pronouncements
There are no recent accounting pronouncements adopted during the nine months ended September 30, 2023, or not yet adopted as of September 30, 2023, that could have a material effect on our financial statements.



14
WEX INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)

3.Revenues
In accordance with Topic 606, revenue is recognized when, or as, performance obligations are satisfied as defined by the terms of the contract, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for goods or services provided.
The following tables disaggregate the Company’s consolidated revenues, substantially all of which relate to services transferred to the customer over time:
Three Months Ended September 30, 2023
(In millions)MobilityCorporate PaymentsBenefitsTotal
Topic 606 revenues
Payment processing revenue$176.9 $115.8 $20.6 $313.3 
Account servicing revenue5.4 10.5 108.5 124.4 
Other revenue24.7 — 6.9 31.6 
Total Topic 606 revenues$207.0 $126.3 $136.0 $469.3 
Non-Topic 606 revenues143.1 8.9 30.1 182.1 
Total revenues$350.1 $135.2 $166.1 $651.4 
Three Months Ended September 30, 2022
(In millions)MobilityCorporate PaymentsBenefitsTotal
Topic 606 revenues
Payment processing revenue$188.6 $101.5 $18.9 $309.0 
Account servicing revenue4.7 10.7 85.9 101.4 
Other revenue21.3 0.1 7.5 28.9 
Total Topic 606 revenues$214.6 $112.3 $112.4 $439.4 
Non-Topic 606 revenues163.5 1.6 11.7 176.8 
Total revenues$378.1 $114.0 $124.1 $616.1 
Nine Months Ended September 30, 2023
(In millions)MobilityCorporate PaymentsBenefitsTotal
Topic 606 revenues
Payment processing revenue$520.6 $310.6 $70.7 $901.9 
Account servicing revenue14.3 31.7 319.8 365.8 
Other revenue69.2 — 20.9 90.1 
Total Topic 606 revenues$604.1 $342.3 $411.4 $1,357.8 
Non-Topic 606 revenues428.5 19.6 78.8 526.9 
Total revenues$1,032.6 $361.9 $490.2 $1,884.7 
Nine Months Ended September 30, 2022
(In millions)MobilityCorporate PaymentsBenefitsTotal
Topic 606 revenues
Payment processing revenue$542.9 $255.2 $62.7 $860.8 
Account servicing revenue13.6 31.9 256.1 $301.6 
Other revenue63.5 0.5 23.9 87.9 
Total Topic 606 revenues$620.0 $287.6 $342.8 $1,250.3 
Non-Topic 606 revenues456.5 4.1 21.1 481.6 
Total revenues$1,076.5 $291.6 $363.8 $1,731.9 
15
WEX INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)

Contract Balances
The majority of the Company’s receivables, which are excluded from the table below, are either due from cardholders who have not been deemed our customer as it relates to interchange income, or from revenues earned outside of the scope of Topic 606. The Company’s contract assets consist of upfront payments to customers under long-term contracts and are recorded upon the later of when the Company recognizes revenue for the transfer of the related goods or services or when the Company pays or promises to pay the consideration. The resulting asset is amortized against revenue as the Company satisfies its performance obligations under these arrangements. The Company’s contract liabilities consist of customer payments received before the Company has satisfied the associated performance obligations. The following table provides information about these contract balances:
(In millions)
Contract balanceLocation on the condensed consolidated balance sheetsSeptember 30, 2023December 31, 2022
Receivables1
Accounts receivable, net$39.3 $53.6 
Contract assets
Prepaid expenses and other current assets17.4 13.6 
Contract assets
Other assets34.6 37.9 
Contract liabilities
Accrued expenses and other current liabilities15.3 8.1 
Contract liabilities
Other liabilities80.5 87.0 
1 The significant decrease in receivables is due to the sale of certain accounts receivable invoices under our Benefits securitization facility, which is described more fully within Note 11, Off-Balance Sheet Arrangements.

During the three and nine months ended September 30, 2023, the Company recognized revenue of $2.2 million and $4.8 million, respectively, related to contract liabilities existing as of December 31, 2022.

Remaining Performance Obligations
The Company’s unsatisfied or partially unsatisfied performance obligations as of September 30, 2023 represent the remaining minimum monthly fees on a portion of contracts across the lines of business, deferred revenue associated with stand ready payment processing obligations and contractually obligated professional services yet to be provided by the Company. The total remaining performance obligations below are not indicative of the Company’s future revenue, as they relate to a small portion of the Company’s operations.
The following table includes revenue expected to be recognized related to remaining performance obligations at the end of the indicated reporting period.
(In millions)Remaining 202320242025202620272028ThereafterTotal
Minimum monthly fees1
$16.6 $39.7 $19.6 $7.2 $4.3 $2.8 $0.8 $91.0 
Other2
5.6 17.1 25.0 33.3 36.0 5.9