Summary of Corpay (CPAY) FY Conference Call - May 20, 2025 Company Overview - **Company**: Corpay (CPAY) - **Event**: FY Conference Call - **Date**: May 20, 2025 Key Points Industry and Economic Outlook - The current economic environment is stable with no significant negative trends impacting the business at this time [3][4] - Political factors are creating some market churn, but Corpay's volumes and trends are steady and in line with expectations [4] Corporate Payments Segment - Corpay's corporate payments business consists of domestic payables and international payments, with a 60% to 40% split between cross-border and domestic payments [6] - Direct business accounts for approximately 90% of domestic payables revenue, indicating strong customer engagement and retention [7] Partnership with Mastercard - Corpay has entered into a partnership with Mastercard, which includes a $300 million investment for a 3% stake in Corpay's cross-border unit [9] - This partnership aims to enhance Corpay's visibility and access to tier two and tier three banks, where many international payments are made inefficiently in USD [11][12] - The collaboration is expected to contribute 2-3 percentage points to cross-border revenue growth by 2026 [13][14] Investment in Avid Exchange - Corpay has invested approximately $550 million for a one-third stake in Avid Exchange, partnering with TPG as the majority owner [16][17] - The investment aims to leverage Corpay's existing scale and expertise to drive growth in Avid Exchange [18] M&A Strategy - Corpay maintains a high appetite for mergers and acquisitions, focusing on strategic acquisitions that enhance core capabilities and shareholder value [24][25] - The company is looking to invest in corporate payment space opportunities that are accretive to earnings [26] Vehicle Payments Business - Corpay has shifted its focus to larger, healthier customers in the vehicle payments sector, moving away from micro-SMBs [29][30] - The company reports solid same-store sales trends and improved customer retention, with a churn rate of less than 7.5% [33][34] - The goal is to achieve 20% sales growth, contributing to 10% organic growth year-over-year [35] Brazil Market Strategy - Corpay has expanded its presence in Brazil through acquisitions of Gringo and ZapPay, enhancing its vehicle debt management offerings [46][48] - The Brazilian market is characterized by a high reliance on vehicles, and the new acquisitions have added 20 million incremental users to Corpay's platform [51] Lodging Segment Performance - The lodging segment faced a tough comparison in Q1 due to prior year events and has seen some softness in customer demand [56][57] - The company believes that its products provide cost savings and better oversight for customers, with expectations of mid-single-digit growth in the back half of the year [58] Non-Core Divestitures - Corpay is considering divesting non-core assets totaling approximately $2 billion to focus on growth areas that drive shareholder value [62][64] Electric Vehicle (EV) Strategy - Corpay has prepared to service fleet customers transitioning to electric vehicles, particularly in Europe, but notes that the EV market is currently not a hot topic [69][71] - The company is agnostic to fuel types and is positioned to support both petrol and electric vehicles [72][73] Additional Insights - The company is actively monitoring the macroeconomic environment and adjusting its strategies accordingly, particularly in the vehicle payments and corporate payments sectors [2][3] - Corpay's focus on strategic partnerships and acquisitions is aimed at enhancing its market position and driving long-term growth [24][25][26]

Core Insights - Corpay, Inc. (CPAY) has experienced a 25% increase in share value over the past year, outperforming the Zacks S&P 500 composite's growth of 13.6% [1] Revenue and Earnings Outlook - CPAY's revenues are projected to grow by 11.3% year-over-year in 2025 and 10.6% in 2026, while earnings are expected to rise by 10.4% in 2025 and 16% in 2026 [3] - The company raised its 2025 revenue guidance to a range of $4.38-$4.46 billion, up from the previous estimate of $4.35-$4.45 billion, indicating continuous improvement from the third quarter of 2024's expectation of $3.98-$4.01 billion [4] Organic Revenue Growth - CPAY's organic revenues increased by 13% in 2022, 10% in 2023, and surged by 20% in 2024, driven by higher transaction volumes and revenues per transaction [5] Marketing and Sales Strategy - The company employs a multi-channel approach to expand its customer base, utilizing digital channels, direct sales forces, and strategic partnerships, which enhances the efficiency of its sales team [6] Acquisition Strategy - CPAY actively acquires companies to broaden its customer base and service offerings, with notable acquisitions including GPS Capital Markets and PayByPhone, which enhance its corporate payments and vehicle payment solutions [7][8]

Core Insights - Corpay and Computer Guidance Corporation have released a joint case study highlighting their integrated accounts payable automation solution for S.T. Wooten, a construction firm [1][4] - The partnership aims to modernize and streamline back-office operations for construction companies through secure payment automation within existing ERP systems [2][3] Company Overview - Computer Guidance Corporation provides a leading construction enterprise resource planning (ERP) solution, serving thousands of clients across North America, with over 20% of clients on top ENR lists [5] - Corpay is a global S&P 500 corporate payments company that processes 1.9 billion transactions annually and is the number one B2B commercial Mastercard issuer in North America [6][7] Solution Features - The integrated solution is built on a flexible, API-based framework that allows real-time data exchange between Corpay's payment automation platform and Computer Guidance's eCMS ERP system, enhancing visibility and accuracy while reducing manual processing [3][4] - The case study emphasizes the benefits of reducing payment friction, strengthening vendor relationships, and allowing accounts payable teams to focus on strategic initiatives [4][5] Market Impact - The collaboration between Corpay and Computer Guidance aims to simplify workflows, improve control, and drive meaningful cost savings for construction finance teams [5] - The unified spend management platform, Corpay Complete, offers various solutions including Payments Automation and Invoice Automation, which help clients automate and secure business payments [7]

Core Insights - Corpay, Inc. (CPAY) reported strong first-quarter 2025 results, with a notable increase in corporate payment solutions sales, leading to an 8.1% rise in share price since the earnings release on May 6 [1] Financial Performance - CPAY achieved adjusted earnings per share of $4.51, slightly exceeding the Zacks Consensus Estimate, reflecting a 10% year-over-year growth [2] - Total revenues reached $1 billion, marking a 7.5% increase from the previous year, although it slightly missed the consensus estimate [2] Segment Performance - The vehicle payments segment generated revenues of $487.1 million, a slight decline from the previous year, and fell short of the estimated $506.7 million; however, significant growth was noted in Brazil due to increased toll tag sales and improvements in electric vehicle offerings in the U.K. and Europe [3] - The corporate payments segment saw revenues of $352.7 million, a 33% year-over-year increase, surpassing the estimated $335.7 million, driven by strong sales of corporate payment solutions and improved payables revenues [4] - The lodging payments segment reported revenues of $110.2 million, a slight decrease from the year-ago quarter, but better than the estimated $115.8 million, attributed to low airline revenues and volume softness [5]

[Part I - Financial Information](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) Corpay's Q1 2025 financial results show revenue and net income growth, asset expansion, and negative operating cash flow [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$18.55 billion** by March 31, 2025, driven by receivables and goodwill, with equity also growing - Total assets increased by **$590.8 million** from December 31, 2024, to March 31, 2025[11](index=11&type=chunk) - Goodwill increased from **$5.98 billion** to **$6.19 billion** during the quarter, reflecting recent acquisition activity[11](index=11&type=chunk) - Total debt (current and noncurrent notes payable, lines of credit, and securitization facility) increased from **$7.99 billion** to **$8.17 billion**[11](index=11&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) Q1 2025 revenues grew **7.5%** to **$1.006 billion**, with operating income and net income also increasing significantly Income Statement Item | Income Statement Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | **Revenues, net** | $1,005,667 | $935,251 | | **Operating Income** | $427,124 | $397,338 | | **Net Income Attributable to Corpay** | $243,233 | $229,769 | | **Diluted EPS** | $3.40 | $3.12 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 significantly increased to **$351.2 million**, primarily due to positive foreign currency translation gains - Foreign currency translation gains were **$153.6 million** in Q1 2025, compared to losses of **$96.1 million** in Q1 2024[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Statements%20of%20Cash%20Flows) Q1 2025 saw a **$74.2 million** net cash outflow from operations, increased investing cash use for acquisitions, and cash provided by financing activities Cash Flow Activity | Cash Flow Activity (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(74,151) | $350,184 | | **Net cash used in investing activities** | $(183,918) | $(102,344) | | **Net cash provided by (used in) financing activities** | $142,297 | $(158,551) | - Cash used for acquisitions was **$153.7 million** in Q1 2025, up from **$56.3 million** in Q1 2024[19](index=19&type=chunk) - Cash used for common stock repurchases decreased significantly to **$58.7 million** in Q1 2025 from **$288.8 million** in Q1 2024[19](index=19&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue by segment, the **$153.7 million** Gringo acquisition, debt amendments, derivatives, and post-quarter strategic investments Revenue by Segment | Revenue by Segment (Q1 2025) | Amount (in millions) | % of Total | | :--- | :--- | :--- | | **Vehicle Payments** | $487.1 | 48% | | **Corporate Payments** | $352.7 | 35% | | **Lodging Payments** | $110.2 | 11% | | **Other** | $55.7 | 6% | - In February 2025, the Company acquired 100% of Gringo, a Brazil-based vehicle compliance payment company, for approximately **$153.7 million**[50](index=50&type=chunk) - Subsequent to quarter-end, the company announced a strategic partnership with Mastercard, including a **$300 million** investment by Mastercard for a **2.8%** interest in Corpay's Cross-Border business, and a **$550 million** minority investment in the acquisition of AvidXchange[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) Financial Metric | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues, net** | $1,005.7M | $935.3M | +7.5% | | **Operating Income** | $427.1M | $397.3M | +7.5% | | **Net Income Attributable to Corpay** | $243.2M | $229.8M | +5.9% | | **Diluted EPS** | $3.40 | $3.12 | +9.0% | Balance Sheet Item | Balance Sheet Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $18,547.8M | $17,957.0M | | **Total Liabilities** | $15,053.7M | $14,811.0M | | **Total Equity** | $3,494.1M | $3,146.0M | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management reported strong Q1 2025 results with **7.5%** consolidated revenue growth, driven by **9%** organic growth, despite macroeconomic headwinds, maintaining robust liquidity Non-GAAP Metric | Non-GAAP Metric (Q1 2025) | Amount (in millions) | Change vs. Q1 2024 | | :--- | :--- | :--- | | **Adjusted Net Income** | $322.9 | +7.2% | | **Adjusted EBITDA** | $555.4 | +7.5% | | **Adjusted EBITDA Margin** | 55.2% | Flat | - Organic revenue growth was **9%**, driven by increases in spend and transaction volumes, and new sales initiatives[137](index=137&type=chunk) - Macroeconomic headwinds, primarily unfavorable foreign exchange rates of ~**$42 million**, negatively impacted consolidated revenues by approximately **$51 million**[138](index=138&type=chunk)[139](index=139&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 consolidated revenue grew **7.5%** to **$1.006 billion**, driven by **32.9%** surge in Corporate Payments, while Vehicle and Lodging Payments saw declines Segment Performance | Segment Performance (Q1 2025 vs Q1 2024) | Revenue Change | Operating Income Change | | :--- | :--- | :--- | | **Vehicle Payments** | -1.4% | +2.0% | | **Corporate Payments** | +32.9% | +29.8% | | **Lodging Payments** | -1.0% | -8.5% | | **Other** | -13.7% | -10.2% | - Corporate Payments growth was driven by a **19%** increase in spend volume and approximately **$36 million** in revenue from recent acquisitions[151](index=151&type=chunk) - Vehicle Payments revenue was negatively impacted by **$36 million** from unfavorable FX rates and **$9 million** from the disposition of the merchant solutions business[149](index=149&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20capital%20resources) Corpay maintained **$2.8 billion** in liquidity, increased Term Loan B by **$750 million**, used cash for acquisitions and repurchases, and announced future strategic investments - Total liquidity stood at approximately **$2.8 billion** at quarter-end[157](index=157&type=chunk) - In February 2025, the company amended its Credit Agreement to increase Term Loan B commitments by **$750 million**, using the proceeds to pay down the revolving credit facility[165](index=165&type=chunk) - The company has a stock repurchase program with **$1.2 billion** of remaining authorization as of March 31, 2025[179](index=179&type=chunk) [Management's Use of Non-GAAP Financial Measures](index=38&type=section&id=Management%27s%20Use%20of%20Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP metrics like Adjusted Net Income (**$322.9 million**) and Adjusted EBITDA (**$555.4 million**), used to assess core performance and organic growth Reconciliation to Adjusted Net Income | Reconciliation to Adjusted Net Income (Q1 2025, in thousands) | Amount | | :--- | :--- | | **Net income attributable to Corpay (GAAP)** | **$243,233** | | Stock-based compensation | $18,366 | | Amortization | $66,066 | | Integration and deal related costs | $11,389 | | Other adjustments | $11,488 | | Income tax effect of adjustments | $(27,616) | | **Adjusted net income attributable to Corpay (Non-GAAP)** | **$322,926** | Reconciliation to Adjusted EBITDA | Reconciliation to Adjusted EBITDA (Q1 2025, in millions) | Amount | | :--- | :--- | | **Net income (GAAP)** | **$243.9** | | Provision for income taxes | $83.6 | | Interest expense, net | $93.9 | | Depreciation and amortization | $92.2 | | Other adjustments | $5.7 | | **EBITDA (Non-GAAP)** | **$519.3** | | Stock-based compensation | $18.4 | | Other addbacks | $17.7 | | **Adjusted EBITDA (Non-GAAP)** | **$555.4** | [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes to the company's market risk profile were reported as of March 31, 2025, compared to the 2024 Form 10-K disclosures - There have been no material changes to the company's market risk from that disclosed in the 2024 Form 10-K[203](index=203&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to a material weakness in IT general controls, with a remediation plan underway - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2025[204](index=204&type=chunk) - The ineffectiveness is due to a material weakness in IT general controls related to user access management over certain IT systems[205](index=205&type=chunk) - A remediation plan is underway, focusing on enhancing IT compliance oversight, training, documentation, and system controls. The material weakness will not be considered remediated until the new controls have operated effectively for a sufficient period[208](index=208&type=chunk)[209](index=209&type=chunk) [Part II - Other Information](index=46&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=46&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) A shareholder derivative lawsuit was dismissed, while an ongoing FTC lawsuit regarding marketing practices is under appeal, with no estimable loss range - A consolidated shareholder derivative lawsuit was dismissed on April 1, 2025, and as of the filing date, no appeal had been filed[215](index=215&type=chunk) - The FTC lawsuit, alleging unfair and deceptive practices, is ongoing. The case is under appeal in the Eleventh Circuit following a district court's summary judgment ruling that found liability but denied the FTC's claim for monetary relief[216](index=216&type=chunk)[217](index=217&type=chunk) - The company is currently unable to predict the outcome or estimate the possible losses resulting from the ongoing legal proceedings[219](index=219&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20RISK%20FACTORS) No material changes in the company's risk factors were reported from those disclosed in the 2024 Annual Report on Form 10-K - There have been no material changes in risk factors from those disclosed in the company's 2024 Annual Report on Form 10-K[220](index=220&type=chunk) [Unregistered Sales of Equity Securities and Issuer Purchases of Equity Securities](index=47&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%2C%20USE%20OF%20PROCEEDS%20AND%20ISSUER%20PURCHASE%20OF%20EQUITY%20SECURITIES) In Q1 2025, the company repurchased **157,234** shares for **$58.7 million** to satisfy employee tax obligations, with **$1.2 billion** remaining in its repurchase program - In Q1 2025, the company withheld **157,234** shares to satisfy employee tax obligations, effectively repurchasing them for a total of approximately **$58.7 million**[223](index=223&type=chunk) - As of March 31, 2025, **$1.2 billion** remained available for future repurchases under the company's publicly announced stock repurchase program[221](index=221&type=chunk) [Defaults Upon Senior Securities](index=47&type=section&id=Item%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section is not applicable for the current reporting period [Mine Safety Disclosures](index=47&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) This section is not applicable for the current reporting period [Other Information](index=47&type=section&id=Item%205.%20OTHER%20INFORMATION) No director or executive officer adopted, modified, or terminated a Rule 10b5-1 trading plan during the quarter - No director or executive officer adopted, modified, or terminated a Rule 10b5-1 trading plan during the reported period[225](index=225&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, credit agreements, and certifications

Core Insights - Corpay, Inc. (CPAY) reported mixed first-quarter 2025 results with earnings surpassing estimates while revenues fell short [1] - Earnings per share reached $4.51, a 10% increase year over year, while total revenues were $1 billion, reflecting a 7.5% year-over-year growth but missing estimates slightly [1] Financial Performance - Vehicle payments revenues were $487.1 million, a slight decline from the previous year and missing estimates of $506.7 million, although growth was noted in Brazil due to increased toll tags and electric vehicle offerings in the U.K. and Europe [3] - Corporate payments revenues amounted to $352.7 million, a 33% year-over-year increase, exceeding estimates of $335.7 million, driven by strong sales and cross-border transactions influenced by FX rate volatility [4] - Lodging payments generated $110.2 million, a slight decline from the previous year, missing estimates of $115.8 million due to low airline revenues [5] - EBITDA increased by 7.6% year over year to $519.3 million, surpassing estimates of $508 million, with an EBITDA margin of 55.2%, consistent with the previous year [6] Balance Sheet & Cash Flow - At the end of Q1 2025, Corpay had cash and cash equivalents of $1.6 billion, unchanged from Q4 2024, while long-term debt rose to $5.9 billion from $5.2 billion [7] - The company generated $74.2 million in cash from operating activities, with capital expenditures totaling $44.8 million [7] 2025 Outlook - Corpay raised its revenue guidance for 2025 to a range of $4.38-$4.46 billion, aligning with the Zacks Consensus Estimate [8] - The adjusted net income per diluted share guidance was updated to $20.80-$21.20, slightly lower than the Zacks Consensus Estimate for earnings per share [8]

Q1 2025 Earnings Release Supplement Refer to earnings release dated May 6, 2025 for further information ^ - dark blue-teal #00B5E2 ^ - light raspberry #981239 ^ - dark raspberry #981239 ^ - light blue-teal #59CBE8 ^ - cool gray 1 #E6E8E7 ^ - maroon #3D1628 Q1 Safe Harbor Provision 2025 ^ This presentation contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about Corpay's (formerly known as Fleetcor Technologies ...

Core Insights - Corpay (CPAY) reported revenue of $1.01 billion for the quarter ended March 2025, reflecting a year-over-year increase of 7.5% [1] - Earnings per share (EPS) for the quarter was $4.51, up from $4.10 in the same quarter last year, with an EPS surprise of +0.45% compared to the consensus estimate of $4.49 [1] - The reported revenue matched the Zacks Consensus Estimate, resulting in a slight revenue surprise of -0.43% [1] Financial Performance Metrics - Corpay's shares have returned +13.8% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3] Key Revenue Metrics - Lodging Payments recorded 9.8 million room nights, exceeding the average estimate of 9.2 million [4] - Corporate Payments generated revenues of $352.66 million, surpassing the average estimate of $346.20 million, with a year-over-year increase of +32.9% [4] - Vehicle Payments revenues were $487.11 million, slightly below the average estimate of $492.03 million, representing a year-over-year decline of -1.4% [4] - Lodging Payments revenues were $110.22 million, also below the average estimate of $113.03 million, reflecting a -1% year-over-year change [4] - Other Payments revenues were $55.67 million, slightly above the average estimate of $55.59 million, but showed a significant year-over-year decline of -13.7% [4]

Core Insights - Corpay (CPAY) reported quarterly earnings of $4.51 per share, exceeding the Zacks Consensus Estimate of $4.49 per share, and up from $4.10 per share a year ago, representing an earnings surprise of 0.45% [1] - The company posted revenues of $1.01 billion for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.43%, compared to $935.25 million in the same quarter last year [2] - Corpay has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates twice during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.12 on revenues of $1.09 billion, while for the current fiscal year, the estimate is $21.11 on revenues of $4.42 billion [7] - The estimate revisions trend for Corpay is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial Transaction Services industry, to which Corpay belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [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]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $1.6 billion, an increase of 8%, and cash EPS of $4.51, up 10% [8][24] - Organic revenue growth for the quarter was 9%, with vehicle payments growing 8% and corporate payments growing 19% [9][25] - Retention rate remained steady at 92%, with new bookings up 35% year-over-year [10][24] Business Line Data and Key Metrics Changes - Corporate Payments revenue increased 19% organically, driven by solid spend volumes [25] - Cross border sales grew 51% year-over-year, with revenue increasing 18% organically [25] - Vehicle payments revenue grew 8% organically, with significant growth in Brazil [29] Market Data and Key Metrics Changes - The company expects tariff impacts to be modest, with an estimated unfavorable impact of $10 million to $15 million on cross border revenue [28] - U.S. vehicle payments revenue growth was down 3% organically, but improvements in customer application approvals were noted [30] Company Strategy and Development Direction - The company is focused on expanding its corporate payments business through recent acquisitions, including a partnership with Mastercard and a minority investment in Avid [15][16][18] - The company aims to enhance its position in the corporate payments space and is exploring additional acquisition targets [18][19] - A major push into the institutional client segment for cross border payments is underway [21] Management's Comments on Operating Environment and Future Outlook - Management maintains a full-year 2025 guidance of $4.42 billion in revenue and $21 in cash EPS, reflecting confidence in the business despite macro uncertainties [12][40] - The company is not seeing any meaningful change in customer behavior due to economic uncertainties as of April [40] - Management expressed optimism about the performance of the hedging business, benefiting from market volatility [94] Other Important Information - The company completed the acquisition of Gringo in March, which had an immaterial impact on revenue and adjusted EPS [24] - Operating expenses increased 8% year-over-year, influenced by recent acquisitions [33] - The company has over $2.5 billion in cash and revolver availability, providing ample capacity for acquisitions [35] Q&A Session Summary Question: Confidence in Mastercard partnership for incremental revenue growth - Management expressed confidence that the partnership with Mastercard will create significant opportunities, especially with Tier two and Tier three banks [44][46] Question: Nature of the Avid investment - The investment in Avid is strategic, aimed at enhancing corporate payments and payables, with a focus on profit acceleration [48][49] Question: Update on enterprise sales pipeline - Management confirmed that the enterprise sales initiative is live and progressing well, with potential for significant growth [57][59] Question: Impact of tariffs on vehicle payments - Management noted that while tariffs do not directly impact the company, clients with goods-based businesses may experience indirect effects [65][67] Question: Performance of U.S. vehicle payments - Management reported improved retention rates and anticipated mid-single-digit growth in the second half of the year [72][74] Question: Avid's supplier network access - Management indicated that there is a pre-existing commercial agreement to enhance supplier network monetization, which will be further developed [112][113] Question: Potential noncore divestitures - Management mentioned that divesting three noncore businesses could provide upwards of $2 billion in liquidity [17][115]