Corpay (CPAY) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $1.248 billion, up 21% year-over-year, with adjusted EPS of $6.04, up 13%, both ahead of guidance, driven by strong Cross-Border and Alpha performance.

• Full year 2025 revenue was $4.53 billion, up 14%, with adjusted EPS of $21.38, up 12%, and organic revenue growth of 10% for the fourth time in five years.

• New sales bookings rose 29% year-over-year in Q4, with same-store sales up 1% and revenue retention stable at 92%.

• Major acquisitions included Alpha (second largest in company history) and strategic investments in Avid, with Mastercard investing $300 million in the cross-border business at a $13 billion valuation.

• 2026 guidance projects revenue of $5.265 billion (up 16%) and adjusted EPS of $26 (up 22%), driven by strong fundamentals, acquisitions, and favorable macro conditions.

Financial highlights

• Q4 adjusted EBITDA was $712 million (+18% YoY), with a margin of 57.1%.

• Free cash flow for Q4 was $424 million; FY 2025 free cash flow reached $1.5 billion.

• Operating expenses in Q4 were $684 million, up 25% due to lower net gain on business dispositions, acquisitions, and FX; excluding these, expenses rose 8%.

• Leverage ratio at year-end was 2.8x, in line with guidance.

• Repurchased 1.7 million shares in Q4 for $500 million, with $1.5 billion remaining authorized for buybacks.

Outlook and guidance

• 2026 revenue guidance at $5.215–$5.315 billion (midpoint up 16% YoY), with 10% organic revenue growth expected.

• 2026 adjusted EPS guidance at $25.50–$26.50 (midpoint up 22% YoY).

• Q1 2026 revenue guidance at $1.2–$1.22 billion (up 20% YoY), with 9% organic growth and adjusted EPS of $5.45 (up 21%).

• Guidance assumes stable fuel prices, flat fuel spreads, and no material acquisitions or divestitures.

• Expense rationalization initiatives are expected to deliver $75 million in savings, with $50 million already executed.