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Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
14.
Income Taxes
The Company’s effective tax rate was 28.4 percent and 28.8 percent for the three months ended March 31, 2026 and 2025, respectively. Income tax expense is based on an estimated annual effective rate, which requires the Company to make its best estimate of annual pretax income or loss. The Company’s effective income tax rates differ from the U.S. federal statutory rates primarily due to jurisdictional earnings mix and permanent book to tax differences arising from stock-based compensation.
Undistributed earnings of certain foreign subsidiaries of the Company amounted to $370.1 million and $351.0 million at March 31, 2026 and December 31, 2025, respectively. The Company continues to maintain its indefinite reinvestment
assertion for its investments in foreign subsidiaries, except for any historical undistributed earnings and future earnings for WEX Australia and WEX Brazil. Upon distribution of these earnings, the Company would be subject to withholding taxes payable to foreign countries, where applicable, but would generally have no further federal income tax liability. It is not practicable to estimate the unrecognized deferred tax liability associated with these undistributed earnings; however, it is not expected to be material.