Corpay (CPAY) Citi’s 15th Annual FinTech Conference summary

Q3 performance and growth visibility

• Q3 marked a sixth consecutive quarter of double-digit organic growth: 11% overall, 18% in corporate payments and 13% across corporate and vehicle payments, together ~80% of revenue.

• The quarter was the fifth consecutive beat-and-raise; October results and the remaining six weeks of the year gave management high visibility into Q4 performance.

• Revenue retention was 92%-93%, with pricing contributing ~3%; sales added to the recurring base support the organic growth algorithm.

• Of $500 million in expected 2026 corporate payments sales, ~50% is expected to be recognized in 2026 and ~40% in 2027, creating a 7%-8% tailwind on a ~$2.5 billion base.

Corporate payments strategy and demand

• Cross-border and spend management both performed well; the target middle market includes businesses with $300 million-$500 million in revenue that are often underserved by banks.

• Cross-border clients commonly use at least two of international payments, risk management and Global Bank Account; spend management cross-sell between AP automation and commercial cards remains an opportunity.

• Procurement is a planned addition to spend management, using AI to process contracts and data; the aim is a unified platform that enables further cross-sell.

• Management views Ramp and Brex as evidence of demand for improved CFO workflows, while noting the need to balance sales and marketing investment with 55% EBITDA margins.

AvidXchange and Alpha

• AvidXchange is held in a two-thirds/one-third partnership with TPG; after sales investment beginning in February, management expects a double-digit organic growth exit rate in 2026 and reported EBITDA doubled YoY.

• A call option is available in summer 2028; earlier ownership increases, including to 51%, are possible, with any move dependent on further proof points and capital allocation priorities.

• Alpha's corporate business is nearing full integration onto CamTrade; shutting down the legacy system by year-end 2026 is expected to provide a cost tailwind in 2027.

• A unified Global Bank Account for private capital markets, corporates and FIs is targeted for launch in early January 2027, potentially extending availability to the U.S. and Asia.