Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [3][4] - Each stock receives an alphabetic rating from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [4] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, considering projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Style Score is designed for momentum traders, utilizing price changes and earnings estimate trends to identify favorable investment opportunities [6] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating based on value, growth, and momentum, and is effective when used with the Zacks Rank [7] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8][10] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [9] Stock to Watch: Corpay, Inc. (CPAY) - Corpay, Inc. is a global commercial payments solution provider, serving various regions including North America and Europe [12] - CPAY holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A and a Value Style Score of B, indicating attractive valuation metrics such as a forward P/E ratio of 14.3 [12][13] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase to $21.10 per share suggest potential for growth, making CPAY a candidate for investors' consideration [13]

Core Insights - Corpay, Inc. (CPAY) reported second-quarter 2025 earnings per share (EPS) of $5.13, meeting consensus estimates, with a year-over-year increase of 12.8% [1][8] - Total revenues reached $1.1 billion, surpassing consensus estimates and reflecting a 13% increase from the previous year [1][8] - The stock has seen a decline of 6.9% year-to-date, contrasting with a slight rise in its industry and a 6.9% growth in the Zacks S&P 500 composite [1] Segmental Results - Vehicle payments generated revenues of $525.5 million, a 3% increase year-over-year, exceeding the estimate of $523.3 million [2] - Corporate payments revenues amounted to $391.9 million, up 36% year-over-year, but slightly missed the projection of $392.1 million [2] - Lodging payments revenues were $119.8 million, down 2% from the previous year, falling short of the estimate of $123.8 million [2] Margins - EBITDA increased by 10.2% year-over-year to $570.7 million, surpassing the estimate of $568.4 million [3] - The EBITDA margin was reported at 56.3%, a decrease of 50 basis points from the year-ago quarter [3] Balance Sheet & Cash Flow - Corpay ended Q2 2025 with cash and cash equivalents of $2.2 billion, up from $1.6 billion in Q1 2025 [4] - Long-term debt remained stable at $5.9 billion compared to the previous quarter [4] - The company utilized $1.1 billion in cash from operating activities during the quarter, with capital expenditures totaling $52.6 million [4] 2025 Outlook - For 2025, Corpay raised its revenue guidance to a range of $4.41-$4.49 billion, up from the previous range of $4.38-$4.46 billion, with the midpoint exceeding the Zacks Consensus Estimate of $4.44 billion [5] - The guidance for adjusted net income per diluted share was increased to $20.86-$21.26, slightly below the Zacks Consensus Estimate of $21.10 [5]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three and six months ended June 30, 2025, including balance sheets, income statements, and cash flow statements, along with detailed notes on accounting policies, acquisitions, debt, and contingencies, highlighting increases in total assets, revenues, and net income driven by acquisitions and organic growth [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights | Balance Sheet Highlights | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$20,435,226** | **$17,957,031** | | Cash and cash equivalents | $2,192,849 | $1,553,642 | | Goodwill | $6,334,018 | $5,984,667 | | **Total Liabilities** | **$16,468,047** | **$14,811,042** | | Total current liabilities | $9,639,769 | $8,707,881 | | Notes payable and other obligations | $5,869,083 | $5,226,106 | | **Total Equity** | **$3,967,179** | **$3,145,989** | [Unaudited Consolidated Statements of Income](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) Unaudited Consolidated Statements of Income Highlights (In Thousands, Except Per Share) | Income Statement Highlights | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues, net** | **$1,102,030** | **$975,710** | **$2,107,697** | **$1,910,961** | | Operating income | $479,390 | $433,339 | $906,514 | $830,677 | | **Net income attributable to Corpay** | **$284,168** | **$251,625** | **$527,401** | **$481,394** | | Diluted earnings per share | $3.98 | $3.52 | $7.38 | $6.64 | [Unaudited Statements of Cash Flows](index=7&type=section&id=Unaudited%20Statements%20of%20Cash%20Flows) Unaudited Statements of Cash Flow Highlights (In Thousands) | Cash Flow Highlights | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,066,096 | $891,105 | | Net cash used in investing activities | ($222,640) | ($146,613) | | Net cash provided by (used in) financing activities | $78,355 | ($239,238) | | **Net increase in cash and cash equivalents and restricted cash** | **$1,075,013** | **$405,761** | [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) - In February 2025, the Company acquired 100% of Gringo, a Brazil-based vehicle compliance payment company, for approximately **$153.7 million**, net of cash acquired, included in the Vehicle Payments segment[50](index=50&type=chunk) - In April 2025, the Company expanded its strategic partnership with Mastercard, which includes a **$300 million** investment by Mastercard for a **2.8% interest** in Corpay's Cross-Border business[53](index=53&type=chunk) - The Company is party to an **$8.25 billion** Credit Agreement, with total debt under the Credit Agreement and Securitization Facility approximately **$8.1 billion** as of June 30, 2025[66](index=66&type=chunk)[67](index=67&type=chunk) - Subsequent to the quarter end, in July 2025, the Company announced its intention to acquire Alpha Group International plc for an enterprise value of approximately **$2.2 billion** and to divest a legacy fuel card portfolio for approximately **$60 million**[100](index=100&type=chunk)[104](index=104&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a **12.9% increase** in net revenues for Q2 2025, driven by **11% organic growth** and contributions from recent acquisitions, with the Corporate Payments segment being a key growth driver with a **35.9% revenue increase**, covering segment performance, macroeconomic impacts, liquidity, capital resources, and recent strategic activities [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Q2 2025 vs Q2 2024 Financial Highlights | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues, net** | **$1,102.0 M** | **$975.7 M** | **12.9%** | | Operating Income | $479.4 M | $433.3 M | 10.6% | | Net Income Attributable to Corpay | $284.2 M | $251.6 M | 12.9% | - Q2 2025 consolidated revenue growth was driven by **11% organic growth** and **5% from acquisitions**, partially offset by a negative macroeconomic impact of approximately **$19 million** due to unfavorable FX, fuel price spreads, and fuel prices[142](index=142&type=chunk)[143](index=143&type=chunk) Segment Revenue (Q2 2025 vs Q2 2024) | Segment Revenue (Q2 2025 vs Q2 2024) | Revenue (M) | % Change | | :--- | :--- | :--- | | Vehicle Payments | $525.5 | 3.0% | | Corporate Payments | $391.9 | 35.9% | | Lodging Payments | $119.8 | (2.1)% | - For the six months ended June 30, 2025, consolidated revenues increased **10.3%** to **$2.11 billion**, while the negative impact from the macroeconomic environment was estimated at approximately **$70 million**[164](index=164&type=chunk)[165](index=165&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had approximately **$3.5 billion** in total liquidity, comprising **$1.4 billion** available under its Credit Facility and **$2.2 billion** in unrestricted cash[184](index=184&type=chunk) - Net cash from operating activities increased to **$1.07 billion** for the first six months of 2025, up from **$891.1 million** in the prior-year period, primarily due to changes in working capital[188](index=188&type=chunk) - The company's stock repurchase program has **$1.2 billion** of remaining authorization available as of June 30, 2025[207](index=207&type=chunk) [Acquisitions, Investments and Dispositions](index=33&type=section&id=Acquisitions%2C%20Investments%20and%20Dispositions) - In July 2025, the company announced a cash offer to acquire Alpha Group International plc for an enterprise value of approximately **$2.2 billion**, expected to close in Q4 2025[136](index=136&type=chunk) - In May 2025, Corpay and TPG formed a partnership to acquire AvidXchange, with Corpay expecting to invest approximately **$550 million** for a **34% equity stake**[137](index=137&type=chunk)[136](index=136&type=chunk) - In February 2025, the company acquired Gringo, a Brazilian vehicle compliance payment company, for approximately **$153.7 million**[137](index=137&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its market risk profile from the information disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the company's market risk since the end of fiscal year 2024[235](index=235&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were not effective due to a previously identified material weakness in internal control related to ineffective information technology general controls (ITGCs) in user access management, with remediation efforts currently in progress - Management concluded that disclosure controls and procedures were not effective as of June 30, 2025[236](index=236&type=chunk) - The ineffectiveness is due to a material weakness in internal control related to IT general controls (ITGCs) for user access management over certain IT systems[237](index=237&type=chunk) - Remediation actions are being implemented, including enhancing IT compliance oversight, developing training programs, and improving documentation and testing of ITGCs[241](index=241&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) This section details the company's legal matters, including the dismissal of consolidated shareholder derivative lawsuits on April 1, 2025, with no appeal, and the ongoing Federal Trade Commission (FTC) lawsuit concerning advertising and marketing practices, for which the company is currently unable to estimate the potential financial impact - The consolidated shareholder derivative lawsuits against the company and certain directors and officers were dismissed by the court on April 1, 2025, and the plaintiffs did not appeal[247](index=247&type=chunk) - The lawsuit filed by the Federal Trade Commission (FTC) in 2019 regarding advertising and marketing practices is ongoing, with an appeal argued in the Eleventh Circuit on January 21, 2025[248](index=248&type=chunk)[249](index=249&type=chunk) - The company is unable to predict the ultimate outcome or reasonably estimate a range of possible losses resulting from the FTC litigation[251](index=251&type=chunk) [Item 1A. Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to its risk factors from those previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in the company's risk factors from those disclosed in the 2024 Annual Report on Form 10-K[252](index=252&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchase of Equity Securities](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchase%20of%20Equity%20Securities) This section details the company's stock repurchase activities, noting that the Board-approved program authorizes up to **$9.1 billion** in repurchases through February 4, 2026, with **$1.2 billion** remaining under this authorization as of June 30, 2025 - The company's stock repurchase program has a total authorization of **$9.1 billion** and an expiration date of February 4, 2026[253](index=253&type=chunk) - As of June 30, 2025, the company has repurchased an aggregate of **$7.9 billion** in shares, with **$1.2 billion** remaining available for future repurchases under the program[253](index=253&type=chunk)

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $1,102,000,000, an increase of 13% year-over-year, and cash EPS of $5.13, also up 13% [7][28] - Organic revenue growth for Q2 was 11%, a 2% sequential increase from Q1 [8][34] - Adjusted EPS grew 17% on a constant macro basis [28] Business Line Data and Key Metrics Changes - The vehicle payment segment grew 9% in Q2, while the corporate payment segment saw an 18% increase [8][29] - Lodging segment revenue declined by 2% year-over-year, with room nights decreasing by 1% [33] - The other segment, primarily driven by gift card sales, increased by 18% due to new orders [33] Market Data and Key Metrics Changes - Spend volumes increased by 36% on a reported basis, reaching over $58,000,000,000 in Q2 [29] - The U.S. vehicle payments segment turned positive in organic revenue growth, marking a significant improvement [31] Company Strategy and Development Direction - The company aims to simplify its structure and focus on corporate payments, expecting this segment to reach $2,000,000,000 in revenue next year [14][24] - The company is expanding its cross-border business and has launched new products, including a multi-currency account [16][18] - M&A activities are focused on acquiring larger, more strategic businesses while divesting non-core assets [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the corporate payments segment, projecting high teens organic revenue growth for the full year [11][25] - The lodging segment is expected to remain soft, with no significant improvement anticipated in the second half [11][33] - The company is optimistic about the vehicle payments segment, expecting it to track to 10% organic growth in the second half [12][32] Other Important Information - The company ended the quarter with a leverage ratio of 2.53 times and over $3,500,000,000 in cash and revolver availability [37][38] - The company is preparing for non-core divestitures, expecting net proceeds to exceed $1,500,000,000 [23][24] Q&A Session Summary Question: Insights on corporate payments and future growth - Management is pleased with the setup and believes that continued investment could lead to accelerated organic revenue growth in the coming years [42][44] Question: Details on the Circle partnership - The partnership is reciprocal, with plans to use Circle's services while also assisting them in certain geographies [46] Question: Factors driving U.S. vehicle payments acceleration - Improved retention and new significant accounts are expected to drive growth in the second half [52][53] Question: Visibility on lodging segment performance - Management noted that the softness is partly due to emergency services and that sales need improvement to drive growth [66][70] Question: Impact of divestitures on earnings - The divestitures are expected to be non-dilutive and will provide capital for future growth initiatives [74] Question: Cross-border sales and tariff impacts - The tariff situation has had mixed effects, with some regions performing better than others [79][81] Question: Growth in Brazil and vehicle payments - The Brazilian market is experiencing strong growth due to a large addressable market and early-stage digital services [84][86] Question: Concerns about same-store sales trends - Management indicated that same-store sales have remained relatively flat, with no significant economic concerns noted [97][100] Question: Retention rates and their impact on revenue - Higher retention rates in corporate payments are expected to contribute positively to revenue growth over time [102][105] Question: Gift card performance and future expectations - The company anticipates strong growth in the gift card segment due to new regulations and improved sales [108][110] Question: Future M&A and buyback strategies - The company is focused on maintaining a healthy balance sheet while considering future acquisitions and buybacks [120][121]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $1,102 million, an increase of 13% year-over-year, and cash EPS of $5.13, also up 13% [6][27] - Cash EPS would be up 17% on a constant macro basis, indicating strong performance despite some challenges [7] - The overall organic revenue growth for Q2 was 11%, up 2% sequentially from Q1 [7][28] Business Line Data and Key Metrics Changes - The vehicle payment segment grew by 9%, while the corporate payment segment saw an 18% increase in revenue for the quarter [7][29] - Lodging segment revenue declined by 2% year-over-year, with room nights decreasing by 1% [33] - The other segment, primarily driven by gift card sales, increased by 18% due to new orders [33] Market Data and Key Metrics Changes - Spend volumes increased by 36% on a reported basis and were up 19% organically, reaching just over $58 billion in Q2 [29] - The U.S. vehicle payments segment turned positive in organic revenue growth, marking a significant improvement [31] Company Strategy and Development Direction - The company aims to simplify its structure and focus on fewer, larger businesses, particularly in corporate payments, which is expected to represent over 40% of revenue next year [12][13] - The company is expanding its cross-border business and has launched new products, including a multi-currency account [15][16] - M&A activities are focused on deepening existing capabilities rather than broadening the portfolio, with significant acquisitions planned [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its revenue and profit targets for the year, despite some softness in the lodging segment [24][36] - The outlook for the second half of the year includes expectations for vehicle segment revenue growth to reach 10% and corporate payments to continue high teens growth [10][24] - Management acknowledged the mixed impact of tariffs and trade policies on different markets, with a stronger performance expected outside North America [78] Other Important Information - The company ended the quarter with a leverage ratio of 2.53 times and over $3.5 billion in cash and revolver availability, providing flexibility for growth funding [36] - The company is preparing for non-core divestitures, expecting net proceeds to exceed $1.5 billion [22][73] Q&A Session Summary Question: Corporate payments growth potential - Management indicated that organic revenue growth could accelerate if investments in sales and marketing continue, with a focus on larger enterprise accounts [42][44] Question: U.S. vehicle payments acceleration - The anticipated acceleration is driven by improved retention and new significant accounts, such as GasBuddy and Amazon [52][53] Question: Visibility on lodging segment - Management noted that the softness in lodging is partly due to external factors like weather and emphasized the need for improved sales to reaccelerate growth [65][70] Question: Impact of divestitures on earnings - The divestitures are expected to be non-dilutive and will provide capital for the Alpha acquisition, with a focus on achieving favorable multiples [72][73] Question: Cross-border sales performance - Management reported record cross-border sales, indicating strong demand despite uncertainties in U.S. trade policy [78] Question: Retention rates and revenue acceleration - Higher retention rates in corporate payments are expected to contribute to overall revenue growth, although the impact may be gradual [103][106] Question: Gift card business performance - The gift card segment is expected to perform well due to new regulations and strong underlying sales, with growth anticipated in the second half of the year [110][111] Question: Future of the lodging segment - Management stated that if the lodging segment does not improve, it may be divested, as the company mandates growth [118]

Core Insights - Corpay (CPAY) reported quarterly earnings of $5.13 per share, matching the Zacks Consensus Estimate, and showing an increase from $4.55 per share a year ago [1] - The company achieved revenues of $1.1 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.19% and up from $975.71 million year-over-year [2] - Corpay has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates twice in the same period [2] Financial Performance - The earnings surprise for the previous quarter was +0.45%, with actual earnings of $4.51 per share compared to an expected $4.49 [1] - The current consensus EPS estimate for the upcoming quarter is $5.66, with expected revenues of $1.16 billion, and for the current fiscal year, the EPS estimate is $21.10 on revenues of $4.44 billion [7] Market Position - Corpay shares have underperformed the market, losing about 5.9% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The Zacks Rank for Corpay is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Financial Transaction Services industry, to which Corpay belongs, is currently in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Q2 2025 Financial Performance - Adjusted EPS reached $5.13, a 13% year-over-year increase, or 17% on a constant macro basis[10] - Revenues totaled $1.102 billion, up 13% year-over-year[10] - Adjusted EBITDA was $621 million, a 12% year-over-year increase[10] - The company reported organic revenue growth of 11%[10] - Revenue retention improved to 92.3%[10] Segment Performance - Corporate Payments revenue grew by 18%[10] - Vehicle Payments organic revenue growth was 9%[16] - Lodging Payments experienced a decline of 2%[16] - Other segments, including Gift and Payroll Cards, grew by 18%[16] Liquidity and Capital Allocation - Liquidity as of June 30, 2025, was approximately $3.5 billion[23] - Adjusted EBITDA was reported as $621 million[26] - Free cash flow generated was $366 million[26] - The company's leverage ratio was 2.53x[23] 2025 Guidance - The company projects second-half adjusted EPS to accelerate to $11.40, an 18% increase over the first half of 2025[32] - Organic revenue growth in the second half is expected to be 10%[32]

[Q2 2025 Financial Performance Overview](index=1&type=section&id=Q2%202025%20Financial%20Performance%20Overview) Corpay's Q2 2025 performance highlights strong organic revenue growth and strategic acquisitions, positioning the company confidently for its full-year outlook [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Corpay reported strong Q2 2025 results, slightly exceeding expectations with **11% organic revenue growth**, driven by an **18% increase** in the Corporate Payments segment. The company announced the acquisition of Alpha Group and partnerships in the stablecoin market, signaling strategic expansion. Management expressed confidence in achieving its 2025 outlook due to strong sales, cost discipline, and improving retention - Q2 2025 organic revenue growth was **11%**, with the Corporate Payments segment growing **18%**[2](index=2&type=chunk) - The company announced the acquisition of Alpha Group and is pursuing opportunities in the stablecoin and digital currency markets[1](index=1&type=chunk)[2](index=2&type=chunk) - Total company organic growth improved by **500 basis points** year-over-year, driven by improvements in the U.S. Vehicle Payments business and strong performance in Corporate Payments[4](index=4&type=chunk) [Financial Results](index=1&type=section&id=Financial%20Results) For the second quarter of 2025, Corpay delivered a **13%** year-over-year increase in both revenue and adjusted EPS, with revenue reaching **$1,102.0 million** and adjusted net income per diluted share at **$5.13**, alongside strong **11%** organic revenue growth Q2 2025 Financial Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Revenues | $1,102.0 M | $975.7 M | +13% | | Net Income | $284.2 M | $251.6 M | +13% | | Net Income per Diluted Share | $3.98 | $3.52 | +13% | | **Non-GAAP Results** | | | | | Organic Revenue Growth | 11% | N/A | N/A | | Adjusted EBITDA | $620.6 M | $554.4 M | +12% | | Adjusted Net Income | $366.4 M | $325.0 M | +13% | | Adjusted Net Income per Diluted Share | $5.13 | $4.55 | +13% | [Updated Fiscal Year 2025 Outlook](index=1&type=section&id=Updated%20Fiscal%20Year%202025%20Outlook) Corpay raised its full-year 2025 guidance, citing strong second-quarter performance and favorable foreign currency rates, now expecting revenues between **$4,405 million** and **$4,485 million** and adjusted EPS between **$20.86** and **$21.26** Updated FY 2025 Guidance | Metric | Low End | High End | | :--- | :--- | :--- | | Total Revenues | $4,405 M | $4,485 M | | Net Income | $1,171 M | $1,211 M | | Net Income per Diluted Share | $16.41 | $16.81 | | Adjusted Net Income | $1,488 M | $1,528 M | | Adjusted Net Income per Diluted Share | $20.86 | $21.26 | - The updated guidance is based on several assumptions, including average U.S. fuel prices of **$3.16 per gallon**, an effective tax rate of **25.5% to 26.5%**, and approximately **72 million** fully diluted shares outstanding[5](index=5&type=chunk)[11](index=11&type=chunk) [Segment Performance](index=9&type=section&id=Segment%20Performance) The Corporate Payments segment was the standout performer in Q2 2025, with reported revenue surging **36%** year-over-year to **$391.9 million**, while Vehicle Payments revenue grew a modest **3%** and Lodging Payments revenue declined by **2%**, with pro forma and macro-adjusted Corporate Payments revenue growing **18%** and Vehicle Payments **9%** Q2 2025 Revenue by Segment (YoY) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Vehicle Payments | $525.5 M | $510.3 M | +3% | | Corporate Payments | $391.9 M | $288.5 M | +36% | | Lodging Payments | $119.8 M | $122.4 M | -2% | | Other | $64.8 M | $54.6 M | +19% | Q2 2025 Operating Income by Segment (YoY) | Segment | Q2 2025 Op. Income | Q2 2024 Op. Income | % Change | | :--- | :--- | :--- | :--- | | Vehicle Payments | $250.1 M | $242.0 M | +3% | | Corporate Payments | $161.2 M | $120.6 M | +34% | | Lodging Payments | $49.6 M | $56.4 M | -12% | | Other | $18.5 M | $14.4 M | +29% | [Geographic Performance](index=10&type=section&id=Geographic%20Performance) In Q2 2025, the United States remained the largest market, accounting for **49%** of total revenue, though its share decreased from **52%** in the prior year, indicating faster growth in international markets, with 'Other' international regions seeing their collective revenue share increase from **19%** to **22%** year-over-year Q2 2025 Revenue by Geography | Geography | Q2 2025 Revenue | % of Total | Q2 2024 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | | US | $541 M | 49% | $507 M | 52% | | Brazil | $170 M | 15% | $150 M | 15% | | UK | $148 M | 13% | $133 M | 14% | | Other | $242 M | 22% | $186 M | 19% | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Corpay's consolidated financial statements for Q2 2025 reflect robust revenue and net income growth, alongside increased assets and equity, demonstrating a strong financial position [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) For the second quarter of 2025, revenues increased **13%** year-over-year to **$1.1 billion**, with operating expenses growing **15%**, leading to an **11%** increase in operating income to **$479.4 million**, and net income attributable to Corpay rising **13%** to **$284.2 million**, resulting in a diluted EPS of **$3.98** Q2 2025 Consolidated Statement of Income Highlights (YoY) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Revenues, net | $1,102,030 | $975,710 | 13% | | Total operating expense | $622,640 | $542,371 | 15% | | Operating income | $479,390 | $433,339 | 11% | | Net income attributable to Corpay | $284,168 | $251,625 | 13% | | Diluted earnings per share | $3.98 | $3.52 | 13% | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Corpay's total assets stood at **$20.4 billion**, up from **$18.0 billion** at the end of 2024, driven by growth in cash, receivables, and customer deposits, while total equity increased significantly to **$4.0 billion** from **$3.1 billion** over the same period Balance Sheet Highlights | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $2,192,849 | $1,553,642 | | Total current assets | $10,759,243 | $8,675,869 | | Total assets | $20,435,226 | $17,957,031 | | Total current liabilities | $9,639,769 | $8,707,881 | | Total liabilities | $16,468,047 | $14,811,042 | | Total equity | $3,967,179 | $3,145,989 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash from operating activities increased to **$1.07 billion** from **$891 million** in the prior-year period, with the company using **$222.6 million** in investing activities, primarily for acquisitions and property purchases, and generating **$78.4 million** from financing activities, which included stock repurchases of **$90.9 million** offset by net borrowings Six Months Ended June 30 Cash Flow Summary | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,066,096 | $891,105 | | Net cash used in investing activities | ($222,640) | ($146,613) | | Net cash provided by (used in) financing activities | $78,355 | ($239,238) | | Net increase in cash | $1,075,013 | $405,761 | [Non-GAAP Reconciliations & Supplemental Data](index=3&type=section&id=Non-GAAP%20Reconciliations%20%26%20Supplemental%20Data) This section provides detailed reconciliations of GAAP to non-GAAP financial measures and other disclosures, offering a comprehensive view of Corpay's adjusted performance and underlying assumptions [Reconciliation of Net Income to Adjusted Net Income (Exhibit 1)](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20%28Exhibit%201%29) For Q2 2025, Corpay's GAAP Net Income of **$284.2 million** was adjusted for several items to arrive at an Adjusted Net Income of **$366.4 million**, with the most significant adjustments being for amortization (**$64.1 million**) and stock-based compensation (**$28.9 million**) Q2 2025 Reconciliation of Net Income to Adjusted Net Income (in thousands) | Description | Amount | | :--- | :--- | | Net income attributable to Corpay | $284,168 | | Stock-based compensation | $28,868 | | Amortization | $64,137 | | Integration and deal related costs | $14,452 | | Other adjustments | ($3,295) | | Income tax impact of adjustments | ($27,840) | | Discrete tax items | $5,931 | | **Adjusted net income attributable to Corpay** | **$366,421** | [Reconciliation of Segment Revenue and KPIs (Exhibit 5)](index=12&type=section&id=Reconciliation%20of%20Segment%20Revenue%20and%20KPIs%20%28Exhibit%205%29) This reconciliation details adjustments for macroeconomic factors and acquisitions to provide a pro forma view of performance, showing that for Q2 2025, consolidated reported revenue of **$1,102.0 million** was negatively impacted by fuel prices/spreads (**-$12.6 million**) and foreign exchange rates (**-$6.7 million**), resulting in a pro forma and macro-adjusted revenue of **$1,121.4 million** Q2 2025 Consolidated Revenue Reconciliation (in millions) | Description | Amount | | :--- | :--- | | Pro forma and macro adjusted revenue | $1,121.4 | | Impact of acquisitions/dispositions | $0.0 | | Impact of fuel prices/spread | ($12.6) | | Impact of foreign exchange rates | ($6.7) | | **As reported revenue** | **$1,102.0** | [Reconciliation of EBITDA and Adjusted EBITDA (Exhibit 6)](index=13&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA%20%28Exhibit%206%29) In Q2 2025, Net Income from operations of **$284.1 million** was reconciled to an Adjusted EBITDA of **$620.6 million**, with key add-backs including depreciation & amortization (**$91.4 million**), interest expense (**$96.9 million**), income taxes (**$109.0 million**), and stock-based compensation (**$28.9 million**), resulting in an Adjusted EBITDA margin of **56.3%**, slightly down from **56.8%** in the prior year Q2 2025 Reconciliation to Adjusted EBITDA (in millions) | Description | Amount | | :--- | :--- | | Net income from operations | $284.1 | | Provision for income taxes | $109.0 | | Interest expense, net | $96.9 | | Depreciation and amortization | $91.4 | | Other adjustments | ($10.6) | | **EBITDA** | **$570.7** | | Stock-based compensation | $28.9 | | Other addbacks (legal, restructuring, etc.) | $21.0 | | **Adjusted EBITDA** | **$620.6** | [Reconciliation of Non-GAAP Guidance (Exhibit 7)](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Guidance%20%28Exhibit%207%29) The company provides a reconciliation for its full-year 2025 guidance, where the low-end GAAP Net Income guidance of **$1,171 million** is adjusted by **$424 million** in pre-tax items, primarily amortization (**$256 million**) and stock-based compensation (**$97 million**), to reach the low-end Adjusted Net Income guidance of **$1,488 million** FY 2025 Guidance Reconciliation (Low End, in millions) | Description | Amount | | :--- | :--- | | Net income (GAAP) | $1,171 | | Stock-based compensation | $97 | | Amortization | $256 | | Other | $71 | | Income taxes on adjustments | ($107) | | **Adjusted net income (Non-GAAP)** | **$1,488** | [Other Disclosures](index=2&type=section&id=Other%20Disclosures) This section contains standard legal disclaimers, including forward-looking statements that outline various risks and uncertainties the company faces, such as macroeconomic conditions and acquisition integration, and provides detailed definitions for the non-GAAP financial measures used throughout the report to enhance investor understanding of the company's core operating performance - The report contains forward-looking statements subject to numerous risks and uncertainties, including macroeconomic conditions, acquisition integration, regulatory changes, and cybersecurity incidents[9](index=9&type=chunk)[10](index=10&type=chunk)[12](index=12&type=chunk) - The company uses non-GAAP measures like adjusted net income, organic revenue growth, and adjusted EBITDA to evaluate operating performance, excluding items it does not consider indicative of core performance, such as stock-based compensation, amortization, and integration costs[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk)

Core Insights - Corpay, Inc. (CPAY) is set to release its second-quarter 2025 results on August 6, after market close, and has consistently surpassed the Zacks Consensus Estimate in the past four quarters with an average earnings surprise of 0.6% [1] Revenue Expectations - The Zacks Consensus Estimate for Corpay's revenues is $1.1 billion, reflecting a 12.7% growth compared to the same quarter last year, driven by growth across all segments [2][9] - Revenue from vehicle payments is estimated at $523.3 million, indicating a 2.6% increase year-over-year, supported by the company's app-based strategy and organic revenue growth in Brazil [3] - Corporate payments revenue is projected at $392.1 million, suggesting a significant 35.9% year-over-year growth, aided by strong payables revenues and new channel partnerships [4] - Lodging revenues are expected to reach $123.8 million, representing a 1.2% rise from the previous year, likely due to a moderate increase in occupancy [4] Earnings Projections - The consensus estimate for earnings per share is $5.13, implying a 12.8% year-over-year growth, driven by strong margins [5][9] - The model predicts an earnings beat for Corpay, with an Earnings ESP of +0.28% and a Zacks Rank of 3, indicating a favorable outlook for the upcoming earnings report [6]

Core Insights - Corpay (CPAY) is expected to report quarterly earnings of $5.13 per share, reflecting a year-over-year increase of 12.8% [1] - Anticipated revenues for the quarter are projected to be $1.1 billion, which represents a 12.7% increase compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised 1.2% higher over the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [3] Revenue Forecasts - Analysts predict 'Revenues- Corporate Payments' will reach $385.68 million, a year-over-year increase of 33.7% [5] - 'Revenues- Vehicle Payments' are expected to be $525.69 million, showing a 3% increase year-over-year [5] - 'Revenues- Lodging Payments' are forecasted at $122.91 million, indicating a slight increase of 0.4% from the previous year [5] - 'Revenues- Other Payments' are estimated to be $61.97 million, reflecting a 13.5% increase from the prior year [6] Transaction and Operating Income Estimates - 'Spend volume - Corporate Payments' is projected to reach 54.03 million, up from 42.88 million in the same quarter last year [7] - 'Operating income- Corporate Payments' is expected to be $144.83 million, compared to $120.56 million in the previous year [9] - 'Operating income- Vehicle Payments' is forecasted at $259.50 million, up from $242.03 million year-over-year [9] - 'Operating income- Lodging' is estimated to be $55.18 million, slightly down from $56.39 million in the same quarter last year [10] Market Performance - Corpay shares have decreased by 6.7% in the past month, contrasting with a 0.6% increase in the Zacks S&P 500 composite [10]