FleetCor(US:FLT)2025-08-06 20:16Financial Highlights and Management Commentary Corpay reported strong Q2 2025 results with 13% revenue and adjusted EPS growth, driven by organic revenue and strategic acquisitions Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1,102.0M | $975.7M | +13% | | Net Income | $284.2M | $251.6M | +13% | | Net Income per Diluted Share | $3.98 | $3.52 | +13% | | Adjusted EBITDA | $620.6M | $554.4M | +12% | | Adjusted Net Income | $366.4M | $325.0M | +13% | | Adjusted Net Income per Diluted Share | $5.13 | $4.55 | +13% | - Organic revenue growth for the quarter was 11%, a 500 basis point improvement year-over-year46 - The Corporate Payments segment was a key driver of growth, with organic revenue increasing by 18%2 - Strategic initiatives include the announced acquisition of Alpha Group and partnerships to participate in the stablecoin and digital currency markets12 Updated Fiscal Year 2025 Outlook Corpay raised its full-year 2025 financial guidance due to Q2 outperformance and favorable currency rates, providing updated financial ranges Updated Full-Year 2025 Financial Guidance | Metric | Low End | High End | | :--- | :--- | :--- | | Total Revenues | $4,405M | $4,485M | | Net Income | $1,171M | $1,211M | | Net Income per Diluted Share | $16.41 | $16.81 | | Adjusted Net Income | $1,488M | $1,528M | | Adjusted Net Income per Diluted Share | $20.86 | $21.26 | - Key guidance assumptions include: - Weighted average U.S. fuel prices at $3.16 per gallon - Interest expense between $360 million and $390 million - An effective tax rate of approximately 25.5% to 26.5%511 Consolidated Financial Statements Corpay's consolidated financial statements detail financial position and performance, with increased cash from operations and total assets Unaudited Condensed Consolidated Statements of Income Q2 2025 revenues grew 13% to $1.102 billion and operating income increased 11%, with H1 revenues up 10% Q2 2025 vs Q2 2024 Income Statement Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues, net | $1,102,030 | $975,710 | 13% | | 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% | Six Months 2025 vs 2024 Income Statement Highlights (in thousands) | Line Item | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues, net | $2,107,697 | $1,910,961 | 10% | | Operating Income | $906,514 | $830,677 | 9% | | Net Income Attributable to Corpay | $527,401 | $481,394 | 10% | | Diluted Earnings Per Share | $7.38 | $6.64 | 11% | Condensed Consolidated Balance Sheets As of June 30, 2025, Corpay's total assets reached $20.44 billion, driven by increased cash and receivables, with equity rising Balance Sheet Highlights (in thousands) | Asset/Liability/Equity | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Assets | | | | 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 | | Liabilities & Equity | | | | Customer deposits | $4,143,205 | $3,266,126 | | Total current liabilities | $9,639,769 | $8,707,881 | | Total Corpay stockholders' equity | $3,928,573 | $3,122,342 | Unaudited Condensed Consolidated Statements of Cash Flows H1 2025 net cash from operating activities was $1.07 billion, with financing activities shifting to an inflow due to reduced repurchases Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 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 | $1,075,013 | $405,761 | - Stock repurchases were significantly lower in H1 2025 ($90.9M) compared to H1 2024 ($947.1M)26 Segment Performance Analysis Corporate Payments was the primary growth engine in Q2 2025, with revenues surging 36% to $391.9 million Q2 2025 Revenue by Segment (As Reported, in millions) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Vehicle Payments | $525.5 | $510.3 | 3% | | Corporate Payments | $391.9 | $288.5 | 36% | | Lodging Payments | $119.8 | $122.4 | (2)% | | Other | $64.8 | $54.6 | 19% | Q2 2025 Revenue by Segment (Pro Forma & Macro Adjusted, in millions) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | Vehicle Payments | $548.4 | $504.2 | 9% | | Corporate Payments | $389.1 | $330.6 | 18% | | Lodging Payments | $119.5 | $122.4 | (2)% | - The United States remains the largest geographical market, contributing 49% of total revenue in Q2 2025, though its share decreased from 52% in Q2 202434 Reconciliation of GAAP to Non-GAAP Measures Corpay provides non-GAAP measures like Adjusted Net Income and Adjusted EBITDA for a clearer view of core operating performance - Non-GAAP measures like Adjusted Net Income and Adjusted EBITDA are used by management to evaluate operating performance, for planning, and to allocate resources1320 Q2 2025 Reconciliation of Net Income to Adjusted Net Income (in thousands) | Description | Amount | | :--- | :--- | | Net income attributable to Corpay (GAAP) | $284,168 | | Stock-based compensation | $28,868 | | Amortization | $64,137 | | Integration and deal related costs | $14,452 | | Other Adjustments | ($3,295) | | Tax Impact of Adjustments & Discrete Items | ($21,909) | | Adjusted net income attributable to Corpay (Non-GAAP) | $366,421 | Q2 2025 Reconciliation to Adjusted EBITDA (in millions) | Description | Amount | | :--- | :--- | | Net income from operations (GAAP) | $284.1 | | Plus: Taxes, Interest, D&A, etc. | $286.6 | | EBITDA | $570.7 | | Plus: Stock-based compensation | $28.9 | | Plus: Other addbacks (legal, restructuring, etc.) | $21.0 | | Adjusted EBITDA (Non-GAAP) | $620.6 | Reconciliation of Full-Year 2025 Guidance (in millions) | Metric | Low End | High End | | :--- | :--- | :--- | | Net Income (GAAP) | $1,171 | $1,211 | | Total pre-tax adjustments | $424 | $424 | | Income taxes on adjustments | ($107) | ($107) | | Adjusted Net Income (Non-GAAP) | $1,488 | $1,528 |