Off-Balance Sheet Arrangements

3 Months Ended

Mar. 31, 2026


11.			Off-Balance Sheet Arrangements

WEX Europe Services and WEX Bank Accounts Receivable Factoring

WEX Europe Services and WEX Bank are each party to separate accounts receivable factoring arrangements with unrelated third-party financial institutions to sell certain of their accounts receivable balances. Each subsidiary continues to service these receivables post-transfer with no participating interest. Upon transfer, proceeds received are recorded net of applicable costs or negotiated discount rates and are recorded in operating activities in the condensed consolidated statements of cash flows. Cost of factoring, which was immaterial for the three months ended March 31, 2026 and 2025, is recorded within cost of services in the condensed consolidated statements of operations.

The WEX Europe Services agreement automatically renews each January 1 unless either party gives not less than 90 days written notice of their intention to withdraw. Under this agreement, accounts receivable are sold without recourse to the extent that the customer balances are maintained at or below the credit limit established by the buyer. The Company maintains the risk of default on any customer receivable balances in excess of the buyer’s credit limit, which were immaterial as of March 31, 2026 and December 31, 2025. Under this arrangement, the Company sold $82.6 million and $112.3 million of accounts receivable during the three months ended March 31, 2026 and 2025, respectively.

The WEX Bank agreement has no set expiration date, however, either party can terminate the agreement with 30 days’ written notice. Under this arrangement, the Company sold $1.3 billion and $2.3 billion of trade accounts receivable during the three months ended March 31, 2026 and 2025, respectively.

Non-Bank Custodial HSA Cash Assets

As a non-bank custodian, WEX Inc. contracts with depository partners to hold custodial cash assets on behalf of individual account holders. As of March 31, 2026, WEX Inc. was custodian to approximately $5.2 billion in HSA cash assets. Of these custodial balances, approximately $617.2 million of HSA cash assets at March 31, 2026, were deposited with and managed by certain unrelated third-party partners and not recorded on our condensed consolidated balance sheets. Such third-party depository partners are regularly monitored by management for stability. The remaining balance of $4.6 billion in HSA cash assets as of March 31, 2026, is deposited with and managed by WEX Bank and is therefore reflected on our condensed consolidated balance sheets. See Note 9, Deposits, for further information about HSA deposits recorded on our condensed consolidated balance sheets.