Corpay (CPAY) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $1.034 billion, up 10% year-over-year, with adjusted/cash EPS of $5.36, up 21%, and adjusted EBITDA of $571 million, up 12%.

• Full-year 2024 revenue was $3.97 billion (+8% ex-Russia), adjusted/cash EPS was $19.01 (+16% ex-Russia), and adjusted EBITDA was $2.1 billion (+10% ex-Russia).

• Corporate Payments and cross-border segments delivered strong double-digit growth, with Corporate Payments up 20% for the year and supported by major acquisitions.

• 2025 guidance targets $4.4 billion in revenue and $21 adjusted/cash EPS, both up 11% year-over-year, despite macro headwinds.

• Macro headwinds, especially FX and higher tax rates, are expected to compress 2025 revenue by over $100 million and EPS by $1.19–$1.20.

Financial highlights

• Q4 organic revenue grew 12%; full-year organic revenue up 8%.

• Adjusted/cash EPS for Q4 increased 21% year-over-year; full-year adjusted/cash EPS up 12%.

• Adjusted EBITDA margin for Q4 was 55.2%, up 100 bps; full-year margin at 53.6%.

• New sales rose 36% in Q4 and 22% for the year; revenue retention averaged 92% for FY 2024.

• Q4 free cash flow was $383 million; year-end liquidity was ~$2.1 billion, with $1.6 billion in unrestricted cash.

Outlook and guidance

• 2025 guidance: revenue $4.35–$4.45 billion (+11% YOY at midpoint); adjusted/cash EPS $20.75–$21.25 (+11% YOY at midpoint).

• Organic revenue growth for 2025 guided at 11%; macro-neutral cash EPS growth targeted at 17%.

• Q1 2025: print revenue growth of 7%-9%, organic revenue growth of 8%-10%, and adjusted/cash EPS up 9%-11%.

• Revenue growth expected to accelerate in later quarters as FX headwinds abate.

• Assumptions include flat fuel price spreads, FX rates per January 2025 consensus, and effective tax rate of 25.5–26.5%.