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President & CEO Greg Adelson attributed the softer outlook to the timing of M&A impacts and large renewals, not structural changes or a change in guidance philosophy. He noted revenue from larger wins will materialize more in the back half of the year. He also confirmed plans to begin selling Banno outside the core base by the end of the calendar year, with beta clients expected in the latter part of the fiscal year.

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CEO Greg Adelson explained that correlating assets to ACV is difficult due to deal-specific nuances like product mix and client focus. CFO Mimi Carsley stated that non-key revenue generally has a lower-margin mix. Regarding free cash flow, she affirmed the full-year guide of 65-75% conversion is on track and that an annual view is more appropriate than a quarterly one for this metric.

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President and CEO Greg Adelson explained that while renewals can involve some price compression, this is typically offset by bundling additional products, and all such dynamics are factored into the existing guidance. CFO Mimi Carsley added that while revenue is expected to accelerate throughout the year, with Q4 growth higher than Q3, the company is not providing specific quarterly guidance and directs investors to the full-year outlook.

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CFO Mimi Carsley explained that second-half margin expansion will be driven by accelerating revenue growth and overcoming first-half headwinds, such as tougher comps on software usage and headcount growth from prior year departures. CEO Greg Adelson clarified that while Banno Business is a contributor, the 20% user growth is primarily driven by the retail platform as more clients are implemented.

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CFO Geoff Smith confirmed the guidance midpoint is the correct focus and attributed the Q4 organic growth slowdown to lapping a strong software license quarter in the prior year. He noted the Justice Tech investment is a recent decision to capture new revenue opportunities expected in FY 2026. CSO Clay Whitson quantified the incremental Q4 expense at approximately $700,000. CEO Greg Daily added that all verticals are performing well and he is optimistic about FY 2026.

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CFO Geoffrey Smith clarified that the remaining healthcare business has approximately $8 million in annual revenue with a margin profile similar to the public sector. He stated that RemainCo's free cash flow conversion should be well above two-thirds of adjusted EBITDA, aided by lower interest expense. For cadence, Smith projected Q3 revenue would be the seasonal low point, representing about 48% of the second half's revenue with margins in the mid-20s, while Q4 would see the remaining 52% with margins recovering to the high 20s.

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Executive Clay Whitson clarified that the Healthcare growth was due to onetime software license sales and that full-year expectations remain in the low single-digits. He confirmed the license pull-forward was approximately $1.8 million. CFO Geoffrey Smith added that full-year margin guidance holds, with Q3 typically being the low point due to seasonality. He also noted the large utility project is on track, with payments now live and revenue expected to ramp from ~$3 million to ~$5 million this year before accelerating further in 2026 and 2027.

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CFO Geoffrey Smith stated that no significant revenue pushed out of Q4 and the expected $2 million license fee was received. Executive Clay Whitson clarified that the FY25 high single-digit organic growth target implies new logo growth on top of the 100% NDR. Smith added that the NDR calculation currently excludes payments revenue, which would likely increase the figure, and that they aim to improve it via cross-selling and tactical pricing. Whitson projected continued low single-digit growth for the Healthcare segment in the medium term.

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President, Chairman & CEO Ronald Clarke was direct, stating that businesses must meet the company's 10% organic growth floor. He said the Lodging segment 'either gets fixed and it gets growing or it goes.' On capital allocation, Clarke reiterated that the first priority is always attractive M&A. However, he noted that at the current stock price, Corpay is also a buyer of its own stock, and future deployment will be a balanced function of liquidity, the M&A pipeline, and the stock price.

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President, Chairman & CEO, Ronald Clarke, was direct, stating the Lodging business 'either gets fixed and it gets growing or it goes,' as every segment is expected to meet a 10% organic growth floor. On capital allocation, he confirmed M&A remains the first priority for attractive, growing businesses. However, he added that at the current stock price, Corpay would also be buyers of its own stock if liquidity allows, aiming for a balanced approach.

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CFO Cosmin Pitigoi explained that the guidance considers a pull-forward of some Australia education revenue into Q2, offset by cautiousness around U.S. education weakness. He confirmed that assumptions for other verticals like B2B, healthcare, and travel have not materially changed. Regarding margins, Pitigoi attributed the second-half moderation to the timing of investments and a continued disciplined approach to OpEx, especially heading into the peak Q3.

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CFO Cosmin Pitigoi explained that the second-half reacceleration is driven by the lapping of Canada's headwinds, easier Q4 comps, and the ramp-up of new healthcare and SFS clients. He also stated that client acquisition remains strong as universities seek Flywire's technology to improve efficiency, and noted that demand for international education remains resilient as a long-term goal for families.

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CEO Michael Massaro highlighted that the company's current ~26% growth includes a significant headwind from Canada, implying stronger underlying performance. CFO Cosmin Pitigoi affirmed the Rule of 40 commitment, with expected annual EBITDA margin expansion of 300-600 bps. Regarding capital allocation, Massaro noted the significant Q3 investment in the Invoiced acquisition and buybacks, stating the company is positioned to continue pursuing organic growth, strategic M&A, and opportunistic share repurchases.

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CFO Nancy Disman advised that Q2 gross margin trends are a good proxy for the rest of the year and noted that purchase price amortization from Global Blue will be a factor. For 2026 free cash flow, she cautioned that Global Blue has significant seasonality and deferred providing specific guidance, pointing to higher cash interest and taxes as known future impacts.

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CEO Dushyant Sharma clarified that the 'multibillion dollar' remark reflects a long-term vision based on market trends like agentic AI, not a change to the company's established 20%+ revenue growth CAGR model. Regarding free cash flow, Sharma provided a framework for forecasting it (Adjusted EBITDA less taxes, capex, plus interest income) but noted that working capital remains a significant variable, making precise prediction difficult.

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Sanjay Kalra (Executive) attributed the strong free cash flow to high adjusted EBITDA and favorable working capital changes, including a reduction in DSO. He advised looking at cash flow on an annual basis rather than extrapolating from a single quarter. He also confirmed that the gross revenue guide is more conservative than the contribution profit guide due to the unpredictable outperformance of new, lower-margin large enterprise clients. Dushyant Sharma (Executive) added that bringing more interchange dollars onto the P&L is a long-term strategy.

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Founder and CEO Dushyant Sharma attributed the enterprise success to clients' growing need for sophisticated workflow automation that they cannot build in-house, combined with the unique reach of Paymentus's platform and IPN ecosystem. He confirmed this success is broad-based across all verticals. Regarding M&A, Sharma stated that with a strong balance sheet and no functional gaps, the company can be highly selective and opportunistic, focusing on potential deals that are accretive to the top or bottom line.

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CEO Dushyant Sharma attributed the growth to accelerated market share capture and earlier-than-expected large client implementations. CFO Sanjay Kalra advised using the initial 2024 growth guidance as a baseline for 2025 modeling. Regarding margins, Kalra highlighted the focus on profitable growth and economies of scale but cautioned against modeling the current high performance indefinitely, while Sharma reiterated the goal of building a 'perpetual growth engine' that requires ongoing investment.

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President & CEO Mac Schuessler confirmed that Cynquia's performance exceeded expectations for the quarter and is back on its desired growth trajectory. EVP & CFO Joaquin Castrillo-Salgado noted the guidance raise reflects continued strength in LatAm and a slight FX improvement. On M&A, Mr. Schuessler stated that while a large transformational deal is not the focus, the company has a strong balance sheet and an active pipeline for deals similar in size to past acquisitions.

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Chief Financial Officer Joaquin Castrillo attributed the margin growth to lapped pricing actions, a favorable mix of card-not-present transactions, and lower interchange costs. He cautioned that margins are not expected to expand further. He clarified the client attrition would impact about two-thirds of Q2 and confirmed that Puerto Rico relief funds are flowing through and are reflected in the resiliency of the local payments business.

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CFO Joaquin Castrillo clarified that Q4 growth was skewed towards pricing, but for the full year, growth was driven roughly equally by pricing, volume, and non-transactional fees. He expects this to normalize in 2025 as pricing initiatives are anniversaried. CEO Mac Schuessler stated that while the Sinqia integration was a major focus, the company maintains a good M&A pipeline and will continue to pursue smart, diversifying tuck-in acquisitions.

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CFO Joaquin Castrillo confirmed the Merchant segment's growth was entirely organic and explained that while Q4 was skewed toward pricing, the full-year contribution was more evenly split between pricing, volume, and non-transactional fees. CEO Mac Schuessler addressed M&A, stating that while the large Sinqia deal required significant focus, the company maintains a good pipeline and will continue to pursue smart, growth-oriented deals, likely similar in size to the recent tuck-in acquisitions.

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CEO Stephanie Ferris explained the Capital Markets guide reflects a tough comparison, as Q1 benefited from a large, non-recurring renewal timing benefit that will not repeat in Q2. For the pro forma Banking segment, CFO James Kehoe noted the Issuer Solutions business adds $2.5 billion in revenue, increasing the segment's scale by approximately 35%. He highlighted its durable nature, with 80% recurring revenue and an average client tenure of 25 years, which enhances cross-sell opportunities.

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CFO James Kehoe clarified that the $1.2 billion buyback for 2025 represents a $400 million increase from the initial plan, effectively returning the M&A underspend from 2024. CEO Stephanie Ferris expressed high confidence in the revenue acceleration, stating it's a 'Q2 story' driven by a large pipeline of signed deals from record 2024 wins, providing strong visibility.

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CFO James Kehoe clarified that the 9% CapEx level is a temporary pressure expected to last 12-18 months, driven by supplier price hikes and strategic investments, with the long-term target remaining 7-8%. He emphasized that capital returns are not at risk. On taxes, Kehoe stated there is 'absolutely no risk' to the company's 12-13% guided tax rate for the next few years based on current legislation.

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CFO Jagtar Narula explained that after the 2025 investment year, margins are expected to accrete upward over time. CEO Melissa Smith added that the strategy for non-travel corporate payments is to grow the direct business, which carries a higher rate and will become a more meaningful contributor to growth over time.

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