Financial Data and Key Metrics Changes - The company reported Q3 revenue of $1.172 billion, reflecting a 14% year-over-year growth, driven by 11% organic revenue growth [14][15] - Cash EPS for Q3 was $5.70, also up 14% year-over-year, with adjusted EPS growing 17% on a constant macro basis [15][22] - The full year 2025 revenue guidance was increased to $4.515 billion, representing a 14% growth, and adjusted EPS guidance was raised to $21.24 per share, indicating a 12% growth [22] Business Line Data and Key Metrics Changes - The corporate payments segment achieved 17% organic growth in Q3, despite a 1% drag from float revenue compression due to lower interest rates [15][16] - The vehicle payment segment grew 10% organically, with the US vehicle payment segment accelerating to 5% [3][17] - The lodging business saw a decline of 5% in organic revenue, primarily due to lower emergency revenue [18] Market Data and Key Metrics Changes - Corporate payments revenue per spend volume decreased year-over-year, attributed to new payables and cross-border enterprise clients [16] - Spend volume in corporate payments increased by 57% on a reported basis, reaching over $68 billion in Q3, positioning the company for an annual run-rate exceeding $250 billion [16] Company Strategy and Development Direction - The company is focusing on expanding its corporate payments business, aiming for over $2 billion in revenue next year, which will represent about 40% of total revenue [6][7] - The company is pursuing M&A opportunities, having closed the AvidXchange investment and the Alpha acquisition, which are expected to enhance profitability and growth [10][11] - The company is also exploring stablecoin opportunities to enhance its payment systems and provide new services to clients [12][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macroeconomic environment for 2026, anticipating better FX rates and lower interest rates, with expected organic revenue growth in the 9-11% range [5][6] - The company is confident in achieving strong earnings growth next year, driven by synergies from recent acquisitions and productivity improvements [6][30] Other Important Information - The company ended Q3 with liquidity of $3.5 billion and a leverage ratio of 2.4 times, indicating a strong balance sheet [20] - The company plans to continue share repurchases while maintaining leverage within target ranges [21][22] Q&A Session Summary Question: Corporate payments organic growth outlook for Q4 - Management expects core corporate payments growth to be around 16%, with a drag of 100 basis points from float, leading to a mid-teens growth rate overall [24] Question: Confidence in organic growth outlook for next year - Management is confident in achieving 10% organic growth, with expectations for mid-teens growth in corporate payments despite macro challenges [26] Question: Impact of Mastercard investment on revenue growth - The Mastercard investment is expected to add a point or two to revenue growth, with synergies from Alpha contributing around $300 million [28][29] Question: Update on AvidXchange's margin improvement - Management is focused on improving Avid's profitability and growth, with clear actions already taken to enhance performance [46] Question: Progress on divestitures - Management indicated that the divestiture process is underway, with first bids expected soon, and expressed confidence in selling decent businesses [42] Question: Sustainability of US fleet growth - Management noted improved retention and sales in the US vehicle payments segment, indicating a more sustainable growth trajectory [44]

Core Insights - Corpay (CPAY) reported quarterly earnings of $5.7 per share, exceeding the Zacks Consensus Estimate of $5.63 per share, and up from $5 per share a year ago, representing an earnings surprise of +1.24% [1] - The company posted revenues of $1.17 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.58%, and an increase from $1.03 billion year-over-year [2] - Corpay has underperformed the market, with shares down approximately 22.8% year-to-date compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.83 on revenues of $1.18 billion, and for the current fiscal year, it is $21.10 on revenues of $4.46 billion [7] - The estimate revisions trend for Corpay was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial Transaction Services industry, to which Corpay belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Corpay's stock performance [5]

Q3 2025 Performance - Revenues reached $1.17 billion, a 14% year-over-year increase[10] - Adjusted EPS was $5.70, up 14% year-over-year, and 17% on a constant macro basis[10] - Organic revenue growth was 11%[10] - Adjusted EBITDA was $677 million, a 14% year-over-year increase[10] - Revenue retention improved to 92.4%[10] Segment Performance - Corporate Payments revenue grew by 17%, or 18% excluding float[10] - Vehicle Payments organic revenue growth was 10%[15] - Corporate Payments organic revenue growth was 17%[15] - Lodging Payments organic revenue declined by 5%[15] Guidance and Outlook - Q4 2025 GAAP revenue is projected between $1.225 billion and $1.245 billion, a 19% year-over-year increase[36] - Full year 2025 GAAP revenue is projected between $4.505 billion and $4.525 billion, a 14% year-over-year increase[36] - The company expects organic revenue growth of 9%-11% in 2026[41]

Credit Agreement Amendments - The Company has requested an increase in Aggregate Revolving B Commitments by $1,000,000,000[5] - The Term B-6 Loan is established with an aggregate principal amount of $900,000,000[8] - The Aggregate Revolving B Commitments will total $1,500,000,000 after the amendment[6] - Each Incremental Revolving B Lender will increase or provide an initial Revolving B Commitment as specified[6] - The Company must prepay any outstanding Revolving B Loans to align with the new commitments[7] - The Incremental Term Loan Maturity Date will be defined in the Amended Credit Agreement[9] - The Existing Credit Agreement is amended in its entirety to form the Amended Credit Agreement[10] - All necessary consents and approvals for the Amendment must be obtained[19] - The Company is required to pay all fees and charges to the Administrative Agent prior to the Effective Date[27] - Each Loan Party acknowledges and consents to all terms and conditions of the Amendment, affirming obligations under the Loan Documents[30] - The security interests and Liens granted to the Administrative Agent are in full force and effect, properly perfected, and enforceable[30] - No Default has occurred and is continuing or would result from the transactions contemplated by this Amendment[35] - Each New Lender represents that it has full power and authority to execute and deliver this Amendment and become a Lender under the Amended Credit Agreement[37] - The Amendment may be executed using Electronic Signatures and shall have the same legal effect as a paper record[42] - This Amendment is a Loan Document, a Lender Joinder Agreement, and an Incremental Facility Amendment[43] - The legality, validity, and enforceability of the remaining provisions of this Amendment shall not be affected if any provision is held to be illegal, invalid, or unenforceable[44] - The rights and obligations of the parties under this Amendment shall be governed by the laws of the State of New York[46] - The execution, delivery, and performance of this Amendment have been duly authorized by all necessary corporate action[31] - Each Lender party represents that the representations and warranties set forth in the Amended Credit Agreement are true and correct as of the Effective Date[41] Lender Commitments - Total Incremental Revolving B Commitments amount to $1,000,000,000, with applicable percentages distributed among various lenders[75] - JPMorgan Chase Bank, N.A. holds the largest commitment of $179,000,000, representing 17.9% of the total[75] - Barclays Bank PLC has a commitment of $125,000,000, accounting for 12.5% of the total[75] - PNC Bank, National Association and The Toronto-Dominion Bank, New York Branch each have commitments of $100,000,000, representing 10% of the total[75] - The smallest commitments include Fifth Third Bank and Société Générale, each with $25,000,000, or 2.5% of the total[75] - The total commitments reflect a diverse group of lenders, enhancing financial stability and flexibility for the borrowing entity[75] - The amendment of Schedule 2.01 indicates adjustments in the commitments and applicable percentages, with the total now at $1,500,000,000[77] - Bank of America, N.A. has a revised commitment of $159,059,925.13, representing 10.60% of the total after the amendment[77] - The total percentage of commitments remains at 100% across all lenders, ensuring full utilization of the available credit[77] - The structured commitments provide a robust framework for future financing needs and operational growth[75] Financial Compliance and Reporting - The Company must provide a Pro Forma Compliance Certificate demonstrating compliance with financial covenants[21] - The Company has committed to maintaining compliance with various financial covenants as outlined in the agreement[110] - The Company is required to provide regular financial statements and other information to the lenders[123] Financial Definitions and Metrics - The aggregate principal amount of Aggregate Revolving A Commitments is $1,275 million[110] - The aggregate principal amount of Aggregate Revolving B Commitments is $1,500 million[110] - The definition of "Alternative Currency Daily Rate" includes SONIA for Sterling and a designated rate for other currencies, with adjustments applicable if rates fall below zero[116] - "Alternative Currency Term Rate" is based on EURIBOR for Euros and TIBOR for Yen, with similar adjustments for other currencies, ensuring rates do not fall below zero[122] - The "Applicable Rate" for Term B-5 and Term B-6 Loans is set at 1.75% per annum for Term SOFR Loans and 0.75% per annum for Base Rate Loans[126] - The "Availability Period" for Revolving A Commitments extends from the Third Amendment Effective Date to the Maturity Date or termination of commitments[137] - "Attributable Indebtedness" includes capitalized amounts for Capital Leases and Synthetic Leases, reflecting obligations as if structured as secured loans[134] - The "Audited Financial Statements" for the fiscal year ended December 31, 2016, include consolidated balance sheets and income statements prepared in accordance with GAAP[135] - The "Bail-In Legislation" refers to laws applicable in the EEA and the UK regarding the resolution of failing financial institutions[139] - "Alternative Currency Equivalent" is determined by exchange rates referenced from Bloomberg, ensuring accurate currency conversions[118] - The "Applicable Percentage" for lenders is based on their commitments and outstanding loans, subject to adjustments as specified in the agreement[124] - "Assignee Group" consists of two or more Eligible Assignees that are Affiliates or Approved Funds managed by the same investment advisor[131] - The Base Rate is defined as the highest of the Federal Funds Rate plus 0.50%, Bank of America's prime rate, or Term SOFR plus 1.00%[141] - Base Rate Loans are only available to the Company or the Additional Borrower and are denominated in Dollars[143] - The term "Change in Law" includes any new laws or regulations affecting the agreement, including those from the Dodd-Frank Act and Basel III[154] - A "Change of Control" occurs if any person or group acquires 35% or more of the Parent's voting equity interests[155] Acquisitions and Financial Metrics - The Company has undergone the AFEX Acquisition, acquiring all issued and outstanding shares of Associated Foreign Exchange Holdings, Inc.[107] - The Comdata Acquisition involves the Parent acquiring all outstanding share capital of the Target as per the Merger Agreement[163] - Comdata Acquisition Costs include the purchase price, refinancing of existing debt, and related fees and expenses[164] - Consolidated Capital Expenditures for the Parent and its Subsidiaries are determined in accordance with GAAP and exclude certain expenditures[168] - Consolidated EBITDA for the most recent four fiscal quarters was calculated, including adjustments for non-recurring fees and projected cost savings[169] - Consolidated Net Income for the period was determined in accordance with GAAP, reflecting the overall profitability of the Parent and its Subsidiaries[173] - Consolidated Funded Indebtedness was assessed, excluding certain types of indebtedness, with a cap of $1.2 billion or 150% of Consolidated EBITDA[172] - Consolidated Interest Coverage Ratio was established, indicating the ability to cover interest expenses with EBITDA for the last four quarters[171] - Consolidated Leverage Ratio was calculated, providing insight into the debt levels relative to EBITDA for the most recent period[172] - Non-recurring or unusual fees, costs, and expenses were identified, with a limit on the amount added back to EBITDA not exceeding 10%[170] - Consolidated Working Capital was evaluated, excluding cash and cash equivalents, to assess liquidity[177] - The amount of "run rate" cost savings and synergies was projected, with specific criteria for identification and support[169] - Consolidated Tangible Assets were determined, excluding intangible assets, to provide a clearer picture of the company's asset base[176] - Consolidated Scheduled Funded Debt Payments were outlined, detailing the scheduled principal payments on funded indebtedness[175] Designated Borrowers and Jurisdictions - As of the Twelfth Amendment Effective Date, AllStar, FleetCor UK, and Lux 2 are the only Designated Borrowers[192] - "Designated Borrower Obligations" include all advances and debts of the Designated Borrowers, encompassing both direct and indirect liabilities[193] - The term "Designated Jurisdiction" includes regions subject to Sanctions, such as Crimea, Donetsk, Luhansk, Cuba, Iran, North Korea, and Syria[195] Miscellaneous Definitions - "Disposition" refers to the sale or transfer of property by any Loan Party or Subsidiary, excluding certain ordinary business transactions[196] - The term "Dollar" refers to lawful money of the United States[197] - "Dollar Equivalent" is defined as the equivalent amount in Dollars for any amount denominated in Alternative Currency[198] - A "Domestic Subsidiary" is any Subsidiary organized under U.S. laws or the District of Columbia[199] - The Domestic Swing Line Commitment is the amount set for each Domestic Swing Line Lender, subject to modification by agreement[200]

Company Overview - Corpay, Inc. (CPAY) has a market capitalization of $20.1 billion and is recognized as a global leader in corporate payments, serving over 800,000 clients worldwide [1] - The company specializes in modern payment solutions that streamline vehicle, travel, and vendor payments, resulting in significant time and cost savings for businesses [1] Financial Performance - Corpay is expected to announce its fiscal Q3 2025 results on November 5, with analysts predicting a profit of $5.35 per share, reflecting a 13.4% increase from $4.72 per share in the same quarter last year [2] - For fiscal 2025, analysts forecast an EPS of $20.04, which is over a 13% increase from $17.73 in fiscal 2024, and anticipate further growth to $23.12 in fiscal 2026, representing a 15.4% year-over-year increase [3] Stock Performance - Over the past 52 weeks, Corpay's shares have decreased by 19.7%, underperforming compared to the S&P 500 Index's 16.2% rise and the Financial Select Sector SPDR Fund's 11.5% return [4] - Following the announcement of Q2 2025 adjusted EPS of $5.13 and revenue of $1.1 billion, Corpay's stock fell by 3.4% the next day, attributed to lower fuel price spreads and rising interest expenses estimated between $360 million and $390 million [5] Analyst Ratings - The consensus among analysts for CPAY stock is cautiously optimistic, with an overall "Moderate Buy" rating; out of 15 analysts, eight recommend "Strong Buy," two "Moderate Buys," and five suggest "Hold" [6] - The average analyst price target for Corpay is $376.42, indicating a potential upside of 32.3% from current levels [6]

Core Points - Corpay, Inc. has announced the satisfaction of regulatory conditions for the acquisition of Alpha Group International PLC [1] - The acquisition received shareholder approval from Alpha on September 22, 2025, and has also been approved by the FCA, MFSA, and the Italian FDI Authority [1] - Completion of the acquisition is still subject to additional conditions [1]

Core Insights - Corpay, Inc. has completed a take-private transaction for AvidXchange Holdings, Inc. in partnership with TPG, initially announced on May 6, 2025 [1] - Corpay invested approximately $550 million for a 34% equity stake in AvidXchange [1] - The transaction is expected to be slightly accretive to Corpay's earnings in the fourth quarter of 2025 and accretive in 2026 [1]

Core Insights - AvidXchange Holdings, Inc. has been acquired by TPG and Corpay for $10.00 per share, valuing the company at approximately $2.2 billion, transitioning it to a private entity [1][4]. Company Overview - AvidXchange is a leading provider of accounts payable (AP) automation software and payment solutions, serving over 8,500 businesses and facilitating payments to more than 1,350,000 suppliers in the past five years [7]. Acquisition Details - TPG acquired a majority interest in AvidXchange through TPG Capital, while Corpay obtained a minority interest. The acquisition was announced on May 6, 2025, approved by shareholders on September 16, 2025, and closed on October 15, 2025 [4]. - Following the acquisition, AvidXchange shares have ceased trading and the company is no longer listed on the Nasdaq Global Select Market [5]. Future Growth Prospects - The management team, including CEO Mike Praeger, expressed optimism about leveraging TPG and Corpay's resources to accelerate innovation and growth, aiming to enhance solutions for customers and expand the company's market presence [2][3].

Core Insights - The article compares Corpay (CPAY) and MasterCard (MA) to determine which stock offers better value for investors [1] Valuation Metrics - Both CPAY and MA currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - CPAY has a forward P/E ratio of 13.29, significantly lower than MA's forward P/E of 34.15 [5] - CPAY's PEG ratio is 1.01, while MA's PEG ratio is 2.28, suggesting CPAY is more reasonably priced relative to its expected earnings growth [5] - CPAY has a P/B ratio of 4.98 compared to MA's P/B of 64, indicating a more favorable valuation based on book value [6] - Based on these valuation metrics, CPAY is rated with a Value grade of B, while MA has a Value grade of D, suggesting CPAY is the superior value option [6]

Core Insights - ClearBridge Investments reported modest gains in its "ClearBridge Mid Cap Growth Strategy" for Q3 2025, outperforming the Russell Midcap Growth Index which returned 2.8% [1] - The strategy is positioned to benefit from a fundamental, bottom-up investment philosophy despite near-term volatility [1] Company Overview: Corpay, Inc. (NYSE:CPAY) - Corpay, Inc. is a payment company focused on managing vehicle-related expenses for businesses and consumers [2][3] - As of October 9, 2025, Corpay's stock closed at $290.85 with a market capitalization of $20.538 billion [2] - The stock experienced a one-month return of -5.37% and a 52-week decline of 14.28% [2] Performance Analysis - Corpay's performance was negatively impacted by macro volatility and company-specific issues, leading to a decision to exit the position [3] - Concerns regarding Corpay's exposure to South American economies and the increasing presence of stablecoins contributed to its underperformance [3] Hedge Fund Interest - Corpay, Inc. was held by 42 hedge fund portfolios at the end of Q2 2025, an increase from 40 in the previous quarter [4] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks present greater upside potential [4]