My name is Dave Koning. I'm a Senior Research Analyst at Baird covering payments and services. Thrilled to have WEX along with us, CFO Jagtar Narula, and our new IR, Pedro Alvarez, over here. You probably all know Steve. Steve was at WEX for probably 15 years, and Pedro just stepped in about, what? A month or two ago, is that? A month or two, yeah. Yeah. Yeah. This new IR. With that, I know Jagtar is going to give a little review of WEX, and then we'll jump into Q&A. Yeah. Great. Thanks, David. Yeah. Appreciate you having me. Forward-looking statement. Going a little bit about WEX. For those of you who don't know WEX, we are a payments company. This slide I love because it presents simply what we do. We manage business-to-business payments and not every type of business-to-business payment, but business-to-business payments that have certain characteristics. They tend to be payments that are highly complicated. That's true of every one of our businesses. They tend to be payments that are mission-critical, and they're often highly regulated. That's where we bring our unique value add, and we do this really well. This slide shows a little bit about WEX. We are about $2.7 billion in revenue last year, $16.10 of adjusted EPS with operating margins of about 37.5% last year. We operate in three different segments, and I'll just go to those really quickly. Our largest segment is Mobility segment. It's about 45% of our revenue, and that segment, if you think about the core of that solution, at the end of the day, it's a fuel card. We offer a fuel card that comes with a lot of controls, a lot of reporting. It helps whether you're running what we call local fleets, which think of the electrician or the cable company, or if you're an over-the-road trucker, long-haul trucking. It helps you manage your business and understand how your fuel spend is occurring. Our Benefits segment is our second-largest segment. It's about 30%-35% of company revenues, and this is where we are providing We have a benefits platform, benefits administration, as well as the actual provision of benefits. This is in things like Health Savings Accounts, Flexible Spending Accounts, lifestyle expending accounts. We offer those solutions. We also manage flow of income associated with it. We handle the payments that occur with it. We are one of the five largest HSA providers in the country. Something like 60% of the Fortune 1000 use our solution. Our last segment, which is the remainder of the business, is our corporate payment segment, and this is where we're processing business-to-business payments for corporations. This could include what we call wholesale or embedded payment solution, where we're processing high volume transactions integrated heavily with our end customer, or we're doing what we call our direct AP business, which is processing AP accounts for our corporate clients. This page is a little bit on our strategy, three core strategies. We've got amplify our core, which this in my mind is execute. We have the three segments that I just talked about earlier. We are leaders in those segments, and we continue to expand by doing what we've historically done well. We have expand our reach, which is we take our solutions and move into new markets. Provide our solutions to new customers. A perfect example of this is our embedded payment solution. We have historically sold these to travel customers. We've increasingly sold these to non-travel customers. That same platform is used in our direct AP business. It's a slightly different front end, but the back end is all identically the same. We are expanding our TAM, which provides a growth tailwind to the company. The third piece is accelerating innovation. This is where we are developing new solutions for our clients, getting into new markets, but also within existing markets, providing solutions that are incremental value add. We introduced a product fairly recently called 10-4, which is a solution that helps the low end of the trucking market. This is both a segment expansion for us as well as a new product solution, and that's core to our strategy. A lot of questions I get are about AI and what's the impact of AI to us. We think of AI as an opportunity. We operate at the core infrastructure layer in payments processing. This is heavily regulated core payments processing, and with it, we generate a lot of data. We capture a lot of data. Whether it's in our mobility segment, understanding how vehicles are being used by our clients, our benefits segment, understanding how employees are actually spending the benefits dollars that are given to them, or in our corporate payment segment, which is understanding how companies are spending their money. That generates a lot of data, that data allows us to enhance our value proposition. We can use that data to provide insights for our clients, automate things like controls so that we can help them with their spending. In addition, AI gives us an opportunity to enhance our margins as a company. We spend lots of money doing things like processing claims, developing technology, some of the things we've seen over the last year is using AI to make improvements in those areas. We've increased the pace of product innovation. We've cut down in claims processing times, all through the use of AI. We have a strong track record of growth. If you look over the last 10 years, we've grown about 10%, north of 10% revenue CAGR, about 17% earnings CAGR. We've got a strong track record of growth, and we're excited about the path forward. Last thing I will touch on is capital allocation. We generate a lot of cash annually, north of about $650 million of adjusted free cash flow. Two things I will point out on this slide. First thing is the balance sheet and leverage. We've been on a march towards to be below three times levered, and we are updating our near-term guidance to say that we'll be below between two and a half to three times levered. We think that gives us a very strong balance sheet with optimal flexibility. The other thing I'll mention is our board recently authorized a billion-dollar stock buyback program. We've said that once we got below three times levered, we would start buying back stock. We are now in that place. We are now below 3 times levered, and we've begun stock buybacks. This is an update that I wanted to provide to everyone. Okay. Yeah, that's good news. Yep, exactly. Just what we expect. We continue to expect long-term 5%-10% revenue growth, 10%-15% earnings growth, and we've provided that guidance for some time. Just to summarize it, we view ourselves as a differentiated company. We are highly innovative, and we will continue to bring new products to market. We feel really good about our growth prospects, and we feel good about the path forward for the company. Yeah. That's great. You did it in about five minutes. Which was what I promised you. Nice. I guess let's just start off, since you just talked about you started the buyback again. That's good. We had expected that more to start in Q3, not Q2, so that's good to hear. You could buy back about 1 million shares a quarter just with your cash flow the next six quarters, and that would use up the $1 billion. If you did that's 3% every quarter, that's 12% buybacks in the year. You could get to 10%-15% EPS growth with zero revenue and zero margin expansion. Is that a fair point if that all happens? I mean, that's a fair point. Okay. Not going to raise our guidance right now. Yeah. Look, I think we will balance between. We gave a two and a half to three range on leverage. We will balance within that range. I think I'd like to continue to pay down debt a bit, but not as aggressively as we have over the past year. We'd like to be prudent. I think our approach to share buybacks will be highly methodical. I think you've seen over the past few years, we've bought $2 billion worth of stock buyback, but you saw some quarters where we bought more, some quarters where we bought less. I think we're taking a more methodical approach to this, so it's a bit more predictable. Yeah. I think you will see a reasonable amount of share buybacks. Okay. Well, that's great to hear. The one other one that just impacts things so much right now is fuel price. I know that guidance is kind of a constant fuel price guidance, right now, fuel's been massively in your favor. Right. How do you think about that? Maybe just give us a little context on how fuel impacts the business and how you even think about it now that it's stayed higher than you probably thought. Yeah. We did take up guidance at the end of Q1 because of the impact of fuel prices. We've given out publicly, we provide supplemental materials on our investor relations site, you can think about our rule of thumb for how fuel prices impact our business. If you go and look at it, you'd see a $0.10 increase in fuel prices at the pump on an annual basis would be about $20 million of revenue and $0.35 of earnings per share. That's at the top level how fuel prices impact us. Now, I know in the first quarter, we had a rapid increase in fuel prices, and some of what we showed, I don't think it matched what people might have expected. The biggest impact to that to us was in our European business, where we have this dynamic of European fuel spreads. That's a smaller part of our business, but it operates on a slightly different model than the bulk of our business. in the Americas. In Europe, we price fuel to the end user on a Friday, then we purchase from the retailers as you go through the week. Because you had such a rapid increase in fuel price, we were actually kind of underwater on the spread for part of the quarter. That created a large negative revenue for us. Now that we are at this higher fuel price level and the volatility is not there, we don't expect to see that similar dynamic of the negative spreads. In fact, through Q2, it's been more in line with historical. I think there's been two periods in the company's history where we had that sizable negative spread occurrence. I think what you're starting to see now is more normalized than what you would expect according to our rule of thumb. Got you. All right. That's all helpful. Let's turn back to really the core business. In mobility, the backdrop seems to be getting better. About a third of your revenue, I believe, is over-the-road trucking. Correct. The Cass data and ISM data are both getting better or less bad. They were pretty bad for a while. They're getting better. Yeah. How do you see that impacting the business? We've been cautiously optimistic, right? We've been in this environment for the last couple of years where every time that we think that the freight recession is ending, it has not ended. This one seems to be a little bit more real than the past couple of years of false dawns. I'd say a couple data points for us. If I look at the first quarter, we did have a negative compare in over-the-road from sort of fueling transactions, but we also had a very tough compare. In the first quarter of last year, we had what we call a pull forward. Last year, you all remember that we had tariffs that went into place the beginning of April, and so a lot of shippers got ahead of that by moving goods really early, to get ahead of tariffs. We saw big volumes in the first quarter last year. That made a really tough compare this year. On the bright side of what we've seen is same-store sales within the over-the-road trucking segment. That improved in the first quarter. It wasn't positive, but it was an improvement over what we've seen in prior quarters. That gave some sense that things are improving. We're watching closely. We're cautiously optimistic, but the data from the external side does point to there may be some improvements coming in the trucking segment. Sounds good. What about local and international? Does macro pretty stable, or how do you see those pieces? We've been operating in this sort of volatile macro environment. Higher rates have slowed down some segments like construction and the like. We've seen some negative same-store sales drags. I think, with high fuel prices, it's created some macro uncertainty. The good news is volumes have held up kind of to our expectations, in line with our expectations. We feel good about that, and also good news, credit has held up. The big concern is high fuel prices, what's that mean for the economy? What's that mean for your AR and credit? That has performed in line with expectations. We feel really good about that. Yeah. ancillary products, Payzer, 10-4, some of those, should those be accretive to revenue growth next several quarters? Yeah, that's the idea, right? We're really excited about the 10-4 product. That's something we introduced, I think, a couple quarters ago. This product is intended to target the low end of the trucking market. Think about single-owner operators, a market we historically have shied away from because they just didn't qualify for a WEX fuel card. They didn't have the credit for it. With the WEX fuel card, you get access to our discount network, this was a way to say, Okay, come into the WEX fold, bring your own credit, but you can access our discount network. That brings truckers into our fold, and then we have ancillary products that we can sell to them, ancillary solutions. Over time, as they build up credit, they can graduate to a WEX fuel card. With these high fuel prices, what we've seen is a lot of interest in the product. We can see within our data an acceleration of adoption by truckers of the solution after fuel prices increased, because of the value proposition. We feel really excited about that. On the Payzerware side, which we now call WEX Field Service Management, we've had good growth of that in Q1. That was a little slower start than we would have liked, but we saw really good double-digit growth in the first quarter. What I'd say is we have a product that is really well targeted, kind of at that small to mid-market service organization. We've seen, when we've looked at our data, we've seen not only a good greenfield opportunity there, but we've had some good competitive takeaways over the last quarter. That gives us increasing optimism that we've got a really good solution, and customers are buying it. That's great to hear. The BP contract comes out in the back half to kind of help accelerate growth, too. How much again does that help you year-over-year, kind of the next four quarters starting Q3? What we've said is on an annualized basis, it's about 50 basis points to 100 basis points in this segment in terms of growth volume or revenue for that segment. Yeah. We started to see initial BP in Q1, so we'll see the BP impact here in Q2. That'll continue over the course of the year. We were really excited about that when we won it on the basis of new product innovation. We introduced this new dual loop card that allows you to run on both the WEX rails but also an open loop rail. BP really liked that solution, which is one of the reasons they chose us, and we're really excited about it. I guess wrapping up mobility, can this be a mid-single digit growth business going forward if you get a little better, just the macro of the ISM data, et cetera, the BP contract, et cetera, Payzerware? Yeah. That's our aspiration. We see market growth in kind of that low to the mid-single digit range. We feel we should take share, be ahead of that market growth. We got a great set of solutions that customers like, we should do at or better than market. You add on top of that we continue to add new solutions to the market, whether it be Field Service Management or 10-4 or other solutions, that should help us continue to grow in that mid-single range. Yeah. Okay. If we move to benefits, there's three revenue drivers here. Correct the interchange, the float revenue. Yeah. How do you see the whole business and kind of each of those being impacted right now? Sure, benefits has been a great business for us. It's been a really steady grower. If I walk through each of those pieces, account growth, we see steady account growth over time. HSA continues to get adopted. There continues to be good tailwinds to that adoption. Our benefit administration solution gets adopted. When folks adopt our solution, they tend to drag additional solutions along with it. If you're an HR manager, you don't want to go to one place for HSA, one place for FSA, one place for COBRA, et cetera. You want one provider, since we have such a broad set of benefit offerings, we see things like HSA will drag other parts of the portfolio. We feel really good about that. We are, as I mentioned in my prepared remarks, one of the top five HSA providers in the country, 60% of the Fortune 1000. We continue to see good momentum there. With that good momentum comes good momentum on the float income side, the non-bank custodial income. That tends to grow faster than account servicing revenue, for the simple fact that people put money into account, they don't completely spend it all, and the following year, they start the cycle again. When you look at balances by age of account, they tend to be higher as the account ages. That just makes the growth of that segment faster than the overall. The maturities in that segment, because we take the balances invested into investment securities, the maturities in that are very good, and the bulk of our maturities aren't till 2033 or beyond. We sort of see a long runway towards good float income, and even the stuff that we had maturing earlier, we'll see an uptick, assuming state rates stay around where they are today. We'll see an uptick as we roll over those maturities. We feel really good there. Then the interchange revenue, that's people spending money from their accounts, that tends to grow in line with account growth. Overall, it's a really good business. Yeah. Anything coming up, either regulatory, like allowance to invest more in HSA? Any fear of what if AI means there's 20% less employment in the U.S.? What are those background factors? On the first side of it, on the regulatory side, we're in a good position that I think there's consensus in Congress, in Washington, that HSAs are a good thing, right? More consumer control helps control healthcare spending. There's been a desire to expand the use of HSAs, and we saw that earlier this year or last year with the One Big Beautiful Bill, which expanded eligibility to HSAs. We think that provides us incremental opportunity. We go to market through both a direct channel and a partner channel. Our partners are very good at sort of picking up that incremental opportunity that came through things like One Big Beautiful Bill. We view that as an additional tailwind to our business. On the AI side, we view it as an opportunity, right? We operate at the core infrastructure layer across all of our businesses, including benefits. As I mentioned earlier, we capture a lot of data in the benefits segment, and we've been using AI with that data to provide information to employees to better utilize either the selection of their benefits or the utilization of their benefits. That's good for the employee, which makes the employer happy, which helps us as an organization. We continue to think there's a good opportunity from AI there. There's a good opportunity from AI on the cost side. Processing claims is a reasonable expense of ours. As I mentioned in my prepared remarks, we've rolled out automated claims solutions into that organization, where we have seen a significant reduction in the amount of time and cost that it takes us to process a claim. As we continue to expand that through our claims processing, customer support in the call center, we should continue to see benefits from AI there. Yeah. Okay. You said 5%-10% revenue growth, total company. Mobility sounds like close to mid-single digits. Benefits, what would that be, mid to high singles? Yeah, we've guided kind of 5%-10% across each of our segments. We think there's sort of significant opportunity. For this year, we've said mobility is at the lower end of that, so mobility's 1%-3%. Yeah. Corporate payments is 5%-7%. Over time, we see each of our businesses as having the capability to grow in that 5%-10% range. Yeah. Okay. Then moving to corporate, that's travel and then just B2B, right? The travel segment of that, is there any impacts right now from the Iran conflict that you see? We've had some impacts, smaller than people may think. We have a very low exposure to the Middle East. Our exposure was about $3 million of revenue of a quarter. That's relatively small, and as you can expect, nobody's really traveling to the Middle East right now. Overall, in our book of business, I think one thing that people don't appreciate is that our book of business is heavily skewed towards hotel bookings. When we have environments like this where you have this rapid increase in energy prices, jet fuel goes up, people may start flying less, right? That may impact airlines. Generally, people, like if you had a vacation planned and you don't fly to your vacation, people will still drive, right? Hotel bookings tend to be more resilient than airline bookings. That's what we've seen. As we've looked at volume through the year, things have held up, so we're pretty optimistic. Obviously, right now, we're entering that peak summer travel period. Right now, we've got a close eye on it. Things have so far held up well, but we're keeping a close eye. Yeah. Okay. What about stablecoins? A lot of people think B2B payments, like big chunky payments, big payment files. Yep with stablecoins. What do you see? Could you use them? Is it a risk, et cetera? I think there's two or three pieces to this. When you think about us, where people ask about stablecoins for us the most is in our travel business, because you've got all these kind of international travelers. Money going to hotels around the world. One, I think you got to remember the value proposition of our offering. We help with controls, we help with fraud protection, with chargebacks, with reconciliation, with integrating to the OTA, online travel agencies, backend systems, all something that just stablecoin by itself doesn't do. That's a big value proposition of our solution, which is critically important. The other thing you have to remember is that when you do a hotel booking and use our platform, we're issuing in local currency, we issue around the globe. We're issuing local and processing local. There isn't really a FX transaction going on there. That point-of-sale at the hotel isn't really designed today for stablecoin. It's designed for a solution like ours. Today, we haven't seen a lot of demand from stablecoin. I would say that if in the future, if hotels were suddenly able to accept stablecoin, you could add a new payment rail on top of what we do today, and so we could look at stablecoin as a solution. Where you do see sort of stablecoin opportunities, I think, in the areas that you talked about, which is it's kind of wholesale. It's that high volume flow, which is more of a treasury operation than that point-of-sale operation of handling a hotel booking. Got you. Yep. What about yields on volume in the corporate business? A couple of years ago, it was down a little bit, people got nervous. Lately, it's been pretty stable. Yeah. Yeah, how do you see that over time? Yeah. I think it's kind of one of the misconceptions. A lot of people spend a lot of time looking at the yields, and it's not that yields aren't important, but we tend to think of it as driving as much volume as we can through the platform, as much revenue. That business is a high margin drop through business. It doesn't cost us a lot incrementally to process additional volume. Our core mantra at the end of the day is drive more volume through the platform. That volume drives incremental revenue. That incremental revenue drops through at a very high rate to operating income. That's how we tend to think about it. When you think about the mix of the business, we've got this direct AP business that tends to be at kind of very high take rates. What we call our wholesale business, our embedded payments business. There, you're trying to go after a lot of volume, which means you're offering pricing incentives to drive the volume from the client over to our platform, and that mix overall impacts the overall take rates that you see. We tend to manage that by trying to drive home as much volume as you can. Yeah. Understand. Maybe one last question. The activist got involved in David Foss as Chairman of the Board. Yeah. Many people know him from Jack Henry. Some people had kind of pushed for the segments to be broken up. The activist pushed for that. What's, I guess, your thought on the segments staying intact or being broken up, and maybe where are we at now with the activist? Yeah. We've settled with the activist. We've got some new board members now. We just had our first board meeting. It was a great board meeting. What I'd say is we've looked at this in the past. As we've mentioned before, we had two banks look at it, Bank of America, JPMorgan. They came to a clear conclusion, both of them separately, that WEX is better as one company. There are dis-synergies from breaking apart. the businesses. Things like the bank where we fund at better rates in the mobility segment. We earn flow of income at a significantly higher rate in our benefits segment that could potentially go away if you were to break up the businesses. We continue to look at what JPMorgan and Bank of America had said. As we've said, we always look at this, right? Yeah. This was not a one time. We've looked at it every year since I've been at WEX. We will continue to look at it. It's always something that's open for discussion, but the latest data I have is the latest analysis we ran. Yeah. Got you. Well, that's-