Group 1 - The article discusses Corpay (NYSE: CPAY) and its optimistic guidance following the 1Q25 results, leading to a Buy rating for the stock [1] - The author emphasizes a value-focused investment strategy, highlighting the importance of fundamental research in sectors such as chemicals, homebuilders, building materials, industrials, and metals & mining [1] - The investment horizon mentioned ranges from a quarter to two years, indicating a medium-term investment approach [1]

Group 1 - The event is the 10th Annual Future of Commerce Symposium hosted by Autonomous Research, focusing on the U.S. payments and FinTech industry [1] - The symposium includes interactive fireside chats with prepared questions for speakers, allowing audience participation [2] - Corpay is a featured company at the symposium, represented by Mark Frey and Jim Eglseder, highlighting their expertise in cross-border payments [3] Group 2 - Mark Frey, Group President of Corpay's cross-border business, has extensive experience in the industry, having been with Corpay since its acquisition of Cambridge and previously working at Western Union Business Solutions [3]

Core Points - The British government announced a deal with the United States to collaborate on enhancing nuclear power during President Donald Trump's state visit this week [1] Group 1 - The agreement aims to secure investment in nuclear power, indicating a strategic partnership between the two nations in the energy sector [1]

Core Insights - Zaxbys has launched an enhanced gift card program in partnership with Stored Value Solutions (SVS) to improve customer engagement and experience across all locations and digital channels [1][2][3] Company Overview - Zaxbys, founded in 1990, specializes in Chicken FingerzTM, wings, and signature sauces, operating over 980 locations across 19 states [4] - Stored Value Solutions (SVS) is a leading provider of prepaid and branded currency, managing over 750 million card products and processing over 1.5 billion transactions annually [5] Partnership Details - The collaboration aims to leverage Zaxbys' customer base and SVS's expertise in gifting and branded currency solutions to enhance the guest experience [2][3] - SVS will provide full-service support, including transaction processing, card production, mobile wallet integrations, and e-commerce solutions [2] Enhanced Gift Card Features - The new gift card program includes features such as: - Zaxbys app integration for purchasing, storing, and redeeming e-gift cards [7] - Mobile wallet compatibility for saving and accessing e-gift cards in Apple and Google Wallets [7] - Mobile marketing messages to notify gift card holders with relevant updates [7] - Franchisee-friendly tools for simplified reconciliation and improved reporting [7] - Omnichannel usability allowing gift cards to be redeemed in-store or online [7]

Core Insights - The company has a strong focus on serving CFOs and the office of the CFO, which aligns with the experience of its Chief Financial Officer who has been in the role for about 20 years [1] - The opportunity to work under a visionary CEO is highlighted as a significant motivating factor for joining the company, indicating a strong leadership presence [2] Business Opportunities - There is a notable potential for cross-selling in the Corporate Payables segment, which was previously underestimated [2]

Corpay (CPAY) Conference Summary Company Overview - **Company**: Corpay (CPAY) - **Event**: Second Annual Jefferies Fintech Conference - **Date**: September 03, 2025 Key Points Industry Insights - **Focus on Corporate Payments**: Corpay is positioned as a leading non-bank FX provider, targeting middle-market companies with annual revenues around $500 million, which large banks typically overlook [24][25] - **Cross-Border Business Growth**: The company has been growing faster than the overall cross-border B2B market, indicating a strong competitive position [23] Financial Performance - **Q3 Trends**: The company is on track for mid-single digit growth in vehicle payments and expects to maintain this trajectory into Q4 [9][12] - **Vehicle Payments Revenue**: Projected to exceed $2 billion in 2025, with growth driven by U.S. vehicle payments at 5%, international vehicle payments at 10%, and Brazil at high teens [17][18] - **Corporate Payments Growth**: Expected to grow in the high teens, with a strong performance in cross-border payments [24][35] Strategic Initiatives - **Acquisition of Alpha**: A $2.2 billion deal set to close in Q4 2025, aimed at entering the institutional investment space and leveraging Alpha's unique offerings, such as virtual bank accounts [26][28] - **Partnership with Mastercard**: This partnership is designed to enhance Corpay's reach into financial institutions, potentially accelerating growth in corporate payments [34][35] Market Dynamics - **Brazilian Market Performance**: Brazil has shown strong organic growth, exceeding 20% in some quarters, with 40% of revenue now coming from extended network products [15][17] - **Lodging Segment Challenges**: The lodging segment is expected to perform below expectations due to reliance on emergency events and slower sales volume [52][53] Future Outlook - **2026 Growth Projections**: The company anticipates sustaining high teens growth in corporate payments and overall organic growth of 10% or greater, continuing a trend seen over the past five years [73][66] - **Divestiture Strategy**: Corpay is considering divesting non-core businesses to fund acquisitions like Alpha, emphasizing a strategic approach to capital allocation [74][76] Additional Considerations - **Blockchain and Stablecoin Integration**: Corpay is exploring blockchain technology and stablecoins as complementary to its business model, focusing on enhancing currency movement and foreign exchange services [42][45] - **Sales Strategy**: The company is in the early stages of cross-selling corporate payables into its fleet customer base, indicating potential for future revenue growth [60][61] This summary encapsulates the key insights and strategic directions discussed during the Corpay conference, highlighting the company's growth trajectory, market positioning, and future initiatives.

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, with A indicating the highest potential for outperformance [3] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - Momentum Score identifies stocks with favorable price trends and earnings outlooks, utilizing recent price changes and earnings estimate revisions [6] Integration with Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to aid in portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure if earnings forecasts are declining [10] Company Spotlight: Corpay, Inc. - Corpay, Inc. is a global provider of commercial payment solutions, helping businesses automate and secure payments across various regions [11] - Currently rated 3 (Hold) by Zacks, Corpay has a VGM Score of A and a Value Style Score of B, supported by a forward P/E ratio of 15.42 [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the consensus estimate increasing by $0.09 to $21.09 per share, indicating a positive outlook for the company [12]

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)