Corpay (CPAY) investor relations material

Executive summary

• Q2 2026 revenue reached $1.34 billion, up 21% year-over-year and $45 million above expectations, with organic revenue growth at 10% and adjusted EPS of $7.00, up 36% year-over-year, both exceeding guidance.

• Corporate Payments grew 16% organically, Vehicle Payments 8%, and Lodging showed sequential improvement; overall revenue retention was 93%.

• Alpha and Avid deals contributed $0.39 of EPS accretion, with Alpha integration progressing and Avid sales up 30%.

• The company is simplifying its portfolio, divesting sub-scale businesses like epyx and PayByPhone, and focusing on spend management, vehicle, and cross-border segments.

• Net income declined 13% to $248.3 million due to a $100 million FTC settlement charge.

Financial highlights

• Adjusted EBITDA margin was 57.3%, up 100 basis points year-over-year, with adjusted EBITDA at $767 million, up 24%.

• Free cash flow for 2026 expected at $1.8 billion, with $464 million generated in Q2 and a 7% yield.

• Leverage ratio ended at 2.55x, with $1.6 billion available under the revolver; $321 million in stock repurchases retired 1 million shares.

• Operating costs increased 9% (excluding FX, stock comp, amortization, and a $100 million FTC settlement charge), mainly due to sales investments and higher credit losses.

• Cash and cash equivalents increased to $3.16 billion as of June 30, 2026.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $5.31 billion (midpoint), up 17% year-over-year, with adjusted net income per diluted share of $27.35, reflecting 28% growth.

• Q3 2026 revenue guidance is $1.355 billion (midpoint), up 16% year-over-year; Q3 adjusted EPS guidance is $7.15, up 26%.

• Guidance incorporates Q2 outperformance, improved macro, and assumes epyx/maintenance business divestiture closes September 1, reducing revenue by $40 million but neutral to EPS due to share repurchases.

• Organic revenue growth for 2026 expected at 10%, with Corporate Payments maintaining mid-teens growth and Lodging accelerating to mid-single digits.

• Guidance based on stable fuel prices, flat spreads, and consensus FX rates.