WEX Inc

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A. Risk Factors in our Annual Report on Form 10K for the year ended December 31, 2024, which could materially affect our business, financial condition or future results. The rand in Part II, Item 1A. Risk fFactors disclosure iin our AnnualQuarterly Report on Form 10-KQ for the year ended December 31, 2024 is qualified by the information that is described in this Quarterrterly Report on Form 10-Q, including the additional risk factor set forth below. The risks described in our Annual Report on Form 10K for the year ended December period ended March 31, 2024 are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be imm5, which could material also may materially adversely aly affect our business, financial condition or results of operations.

We currently have a substantial amount of indebtedness and may incur additional indebtedness, which could increase our leverage, affect our flexibilityfuture results. The risk factors disclosure in managing our business and could materially and adversely affect our ability to meet our debt service obligations.

At MarchAnnual Report on Form 10-K for the year ended December 31, 2025, we had approximately $5.6 billion of debt outstanding, net of unamortized debt issuance costs and debt discount. Such amount outstanding includes obligations under (i) our Credit Agreement, which consists of a tranche

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A-4 and in our Quarterly Report on Form 1 term loan facility, a tranc0-Q for the B-2 term loan facility, a tranche B-3 quarterm loan facility and a secured revolving credit facility, (ii) the Senior Notes and (iii) securitized and participation debt, borrowed federal funds and advances from the FHLB. In addition to our outstanding debt, as of ly period ended March 31, 2025, we had outstanding letters of credit issu is qualified under our Credit Agreement. We have additional indebtedness in the by the inform of deposits held by WEX Bank and other liabilities outstanding.

Our substantial indebtedness currently outstanding, or as may become outstanding if we incur additional indebtedness, andation that is described in the terms and conditions of such indebtedness, could, among other things:

lead to difficulty in our ability to generate enough cash flow to satisfy our indebtedness obligations under our credit facilities, and if we fail to satisfy these indebtedness obligations, an event of default could result;

require us to dedicate a substantial portiois Quarterly Report on Form 10-Q. The risks described in of our cash flow to repaying our indebtedness, thus reducing the amount of funds available to execute on our corAnnual Reporate strategy, to fund working capital or capital expenditures or t on Form 10K for other general corporate purposes;

increase our leverage ratio and limit our ability to borrow additional funds necessary for working capital, capital expenditures or other general corporate purposes;

increase our vulnerability to adverse general economic or industry conditions;

place us at a competitive disadvantage relative to our competitors that have less indebtedness or better access to capital, by, for example, limiting our ability to enter into new markets, upgrade our assets or pursue acquisitions or other business opportunities; and

limit our flexibility in planning for, or reacting to changes in, our business.

We may also incur substantial additional indebtedness in the future. In addition to available borrowing capacity remaining under the Revolving Credit Facility as of  year ended December 31, 2024 and in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, we  are also permitted under our credit facilities and tnot the Indenture to incur additional indebtedness, subject to specified limitations, includonly risks facing compliance with covenants contained in oour Credit Agreement. If new debt is incurred under any circumstance, the associated risks faced by the Coompany, such as those set forth above, could intensify.

Moreover, if we are unable to meet any of our principal, interest, or other payment or settlement obligations under any of our debt agreements, we could be forced to restructure or refinance our obligations, seek additional equity financing or sell assets, which we may . Additional risks and uncertainties not be able to do on satisfactory terms or at all. Our default on any of our debt agreements could have a material adverse effect on our business, financial condition and resultcurrently known to us of operations.

In addition, the Credit Agreement requires thr that we meet certain financial covenants, including a Consolidated EBITDA to consolidated interest charge coverage ratio and a consolidated leverage ratio, as described in Part I Item 2 Liquidity and Capital Resources. The Credit Agreement also contains various affirmative and negative covenants that, subject to certain customary exceptions, restrict our ability to, among other things, crecurrently deem to be immate liens over our property, incur additional indebtedness, enter into sale and lease-back transactions,rial also make loans, advances or other investments, make non-ordinary course asset sales, declare or pay dividends or make other distributions with respect to equity interests, change the nature of our business, enter into certain agreements which restrict our ability to pay dividends or other distributions or create liens on our property, transact business with affiliates and/or merge or consolidate with any other person.

Our ability to comply with these provisions may be affected by events beyond our control, including prevailing economic, financial, and industry conditions. Failure to compy materially adversely with the financial covenants or any other non-financial or restrictive covenants in our Credit Agreement, for any reason, could create a default. Upon a default, our lenders could accelerate the indebtedness under the facilities (except only the requisite lenders under the revolving credit facility and the tranche A term loan facility may accelerate the revolving credit facility due to a breach of the financial covenants)affect our business, foreclose against their collateral or seek other remedies, which could trigger a default under the Indenture and could jeopardize our ability to inancial continue our current operations. The Indenture also contains limited covenants that, among other things, restrict our ability and our subsidiaries ability, subject to certain exceptions, to create certain liens and enter into certain sale and leaseback transactions. These covenants do not apply to WEX Bank and its subsidiaries. The Indenture also contains customary events of default that if breached could allow the requisite noteholders to accelerate the maturity of the Senior Notes, and to exercise their rights and remedies under the Indenture, and could also trigger a cross-default under the Credit Agreement.

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dition or results of operations.