WEX — Feb 5, 2025 release

In addition, revenue was negatively impacted by the change in revenue model for a major OTA customer, which we have discussed previously. Our relationship with this customer is also strong and we expect to lap the impact of this change by Q3 2 025. Foreign exchange rates were also unfavorable, reducing revenue by $1.3 million compared to the prior year. • Purchase volumes issued by WEX declined 27.5% compared to last year. This was largely due to the large customer volume fluctuations and OTA revenue model transition mentioned above. • The net interchange rate was up 7 basis points sequentially driven primarily by customer volume mix. • While the Direct component of the segment is currently a small portion of volumes, it is rapidly growing and higher revenue yields lead to a relatively larger revenue impact to the segment. It also provides lower quarterly volume volatility due to our direct interaction with the end customer. Comparing Q4 2024 to Q4 2023, we have grown Direct volumes by more than 25%. • Because of the strong potential growth opportunity in our Direct business, we intend to invest in new product capabilities and additional sales and marketing resources in 2025. • GAAP operating income margin for the segment was 33.9%. The adjusted operating income margin in the segment was 43.9%, which is down from 58.4% in the same quarter last year due to lower revenue. 11 The following table reflects segment results and s