Sign in

You're signed outSign in or to get full access.

CI

CORPAY, INC. (CPAY)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered double‑digit top and bottom line growth: revenues $1.102B (+13% YoY) and adjusted EPS $5.13 (+13% YoY), with organic revenue growth of 11% driven by Corporate Payments (+18% organic) and improving Vehicle Payments trends .
  • Versus estimates, Corpay posted a slight revenue beat and EPS in line; EBITDA was below consensus, while adjusted EBITDA grew 12% YoY to $620.6M; guidance for FY25 was raised modestly on revenue and adjusted EPS midpoints, supported by favorable FX and disciplined costs . See Estimates Context for details (S&P Global).
  • Management emphasized catalysts: enterprise payables ramp (one mega client at $1B monthly spend in July), cross‑border record sales, and stablecoin strategy (Circle collaboration and Kinexys/JPM blockchain rail), while lodging remained soft and non‑core divestitures progressed .
  • FY25 outlook raised: revenues to $4.405–$4.485B, adjusted EPS to $20.86–$21.26; Q3 guide set to revenue ~$1.165B and adjusted EPS $5.50–$5.70; assumptions include tax rate 25.5–26.5%, interest expense $360–$390M, ~72M diluted shares .

What Went Well and What Went Wrong

What Went Well

  • Corporate Payments momentum: organic revenue +18%, spend volume $58.1B (+36% reported, +19% organic), with payables and cross‑border both strong; adjusted EPS +13% YoY to $5.13 on “excellent organic growth” and disciplined costs .
  • Enterprise payables milestone: “successfully implemented” a mega client; $1B spend in July and tracking ~$1.5B in October; opens new enterprise TAM with referenceability for future wins .
  • Cross‑border expansion and tech: record sales, MCA deposits hit $1B in July with 10K accounts; Circle USDC integration and Kinexys/JPM blockchain use extend 24/7 settlement and programmability .

What Went Wrong

  • Lodging softness: organic revenue −2% YoY; room nights −1%; management does not expect improvement in 2H; mixed from weaker emergency/airline demand despite workforce gains .
  • EBITDA consensus miss (reported EBITDA): actual $570.8M vs higher consensus; adjusted EBITDA margin slightly down YoY (56.3% vs 56.8%) amid one‑time M&A fees and lodging weakness .
  • Gift card shipments timing and lodging softness partially offset favorable FX macro, netting results “right on expectations” rather than a larger beat .

Financial Results

Consolidated P&L and Margins (oldest → newest)

MetricQ2 2024Q1 2025Q2 2025
Revenues ($USD Millions)$975.7 $1,005.7 $1,102.0
Net Income Attributable to Corpay ($USD Millions)$251.6 $243.2 $284.2
Diluted EPS (GAAP, $)$3.52 $3.40 $3.98
Adjusted Net Income ($USD Millions)$325.0 $322.9 $366.4
Adjusted EPS ($)$4.55 $4.51 $5.13
Adjusted EBITDA ($USD Millions)$554.4 $555.4 $620.6
Adjusted EBITDA Margin (%)56.8% 55.2% 56.3%
  • Versus prior quarter: revenues rose from $1,005.7M to $1,102.0M and adjusted EPS from $4.51 to $5.13, driven by corporate payments growth and vehicle recovery, partially offset by lodging softness .

Segment Revenues ($USD Millions)

SegmentQ2 2024Q1 2025Q2 2025
Vehicle Payments$510.3 $487.1 $525.5
Corporate Payments$288.5 $352.7 $391.9
Lodging Payments$122.4 $110.2 $119.8
Other (Gift & Payroll Card)$54.6 $55.7 $64.8
Total$975.7 $1,005.7 $1,102.0

KPIs

KPIQ2 2024Q1 2025Q2 2025
Corporate Payments Spend ($USD Millions)$42,879 $50,688 $58,114
Corporate Rev per $ Spend (%)0.67% 0.70% 0.67%
Lodging Room Nights (Millions)8.8 9.8 8.7
Lodging Rev per Room Night ($)$13.97 $11.26 $13.84
Vehicle Transactions (Millions)207.3 213.0 222.6
Vehicle Rev per Transaction ($)$2.46 $2.29 $2.36

Guidance Changes

MetricPeriodPrevious Guidance (Q1 2025)Current Guidance (Q2 2025)Change
Total Revenues ($USD Billions)FY 2025$4.380–$4.460 $4.405–$4.485 Raised
Net Income ($USD Millions)FY 2025$1,167–$1,207 $1,171–$1,211 Raised
Diluted EPS ($)FY 2025$16.37–$16.77 $16.41–$16.81 Raised
Adjusted Net Income ($USD Millions)FY 2025$1,485–$1,525 $1,488–$1,528 Raised
Adjusted EPS ($)FY 2025$20.80–$21.20 $20.86–$21.26 Raised
Interest Expense ($USD Millions)FY 2025$350–$380 $360–$390 Raised
Effective Tax Rate (%)FY 202525.5–26.5 25.5–26.5 Maintained
Diluted Shares (Millions)FY 2025~72 ~72 Maintained
Fuel Price Assumption ($/gal)FY 2025$2.96 $3.16 Raised
FX AssumptionFY 2025April 2025 forward consensus July 2025 forward consensus Updated
Net Income ($USD Millions)Q3 2025—$318–$328 New
Diluted EPS ($)Q3 2025—$4.42–$4.62 New
Adjusted Net Income ($USD Millions)Q3 2025—$396–$406 New
Adjusted EPS ($)Q3 2025—$5.50–$5.70 New

Earnings Call Themes & Trends

TopicQ4 2024 (Prev‑2)Q1 2025 (Prev‑1)Q2 2025 (Current)Trend
Corporate Payments growth and enterprise pushOrganic +26%, enterprise client win; direct up 28%; spend +22% Corporate +19% organic; enterprise client expected ~$30B annual spend; strong bookings +18% organic; enterprise client at $1B July, ~$1.5B Oct; pipeline growing Sustained high‑teens growth; enterprise scaling
Cross‑border strategy & MCABanks control 90% flows; MCA product planned MCA accounts/deposits growing; tariffs exposure modest Record sales; MCA 10K accts, $1B deposits; Circle USDC; Kinexys/JPM rail Acceleration; tech rails broaden
Tariffs/macro & FXFX headwind in Q4; macro assumptions worsened for 2025 Limited direct tariff exposure; modest $10–$15M cross‑border impact Mixed geography impact; favorable FX in Q2; overall steady Manageable; FX tailwinds 2H
U.S. Vehicle PaymentsTurning corner; sales up ~60%; late fees lapped Retention +200bps YoY; 2H mid‑single digit growth planned Organic +9%; 2H tracking to 10%; U.S. mid‑single digit Improving trajectory
Lodging performanceOrganic +1%; FEMA/insurance mix affected yields Organic −1%; workforce strong; airline soft Organic −2%; no 2H improvement expected Stabilized but soft
Non‑core divestituresNoted; focus on corporate payments 3 units (~$2B proceeds) targeted; simplify portfolio Two vehicle + one lodging units; bankers hired; post‑Labor Day process Active execution
M&A (GPS, Paymerang, Avid, Alpha, Mastercard)GPS & Paymerang synergies; pipeline robust Mastercard stake in cross‑border; Avid minority stake with call option; Gringo acquisition Alpha acquisition (EV $2.2B), Avid/TPG closing Q4, Mastercard FI channel progressing Strategic scaling continues

Management Commentary

  • CEO on Q2 performance: “We reported Q2 print revenue of $1,102,000,000 up 13% and cash EPS of 5.13 also up 13%… overall organic revenue growth 11%… vehicle payment segment grew 9%, corporate payment segment grew 18%, lodging declined 2% year over year” .
  • CFO on segments: “Corporate Payments delivered 18% organic revenue growth… spend volume was just over $58,000,000,000 in Q2… Vehicle Payments delivered 9% organic revenue growth… U.S. Vehicle Payments organic revenue growth turned positive” .
  • CEO on enterprise payables: “That client has reached $1,000,000,000 in spend in the month of July… looking to be at about $1,500,000,000 in spend for the month of October… super contribution” .
  • CEO on stablecoins: “We just view it as another tool… biggest edge… 24/7… we can play… helping money move across between [stablecoin and fiat]” .
  • CFO on guidance raise: “We’re increasing our full year 2025 revenue guidance to $4,445,000,000 at the midpoint… adjusted EPS guidance to 21.06 per share at the midpoint” .

Q&A Highlights

  • Corporate Payments runway and enterprise impact: Management believes sustained high‑teens growth is achievable with incremental investments and diversified client segments (banks, asset managers, digital assets), with the enterprise client materially accelerating spend capture .
  • U.S. Vehicle acceleration: Improvement underpinned by ~130bps better retention and “elephant” wins (e.g., GasBuddy, Amazon), driving 2H acceleration to ~10% organic growth .
  • Lodging visibility: Weak emergency/airline volumes and sales execution shortfalls; stabilization achieved but growth contingent on new sales; management will “kick at it” harder with leadership changes .
  • Tariffs and FX: Mixed impacts by geography and client type; volatility generally helps hedging and cross‑border sales; 2H macro expected to be more favorable on FX .
  • Stablecoin economics: Rail cost is de minimis to B2B FX economics; benefits are speed, 24/7 settlement, programmability; reciprocal partnership with Circle for on/off‑ramp services .

Estimates Context

MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD Millions)1,099.6*1,102.0
Primary EPS ($)5.124*5.13
EBITDA ($USD Millions, reported)583.8*570.8
  • Revenue was a slight beat; EPS essentially in line; EBITDA below consensus while adjusted EBITDA rose 12% YoY to $620.6M .
  • Number of estimates: Revenue (11*), EPS (14*).
  • Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Corporate Payments remains the growth engine (18% organic; $58.1B Q2 spend), with enterprise payables ramp and FI/digital asset channels poised to extend runway; allocation of incremental sales/marketing likely supports sustained high‑teens growth .
  • Vehicle Payments’ U.S. inflection plus Brazil/international strength support 2H acceleration to ~10% organic; retention and “elephant” wins are the key levers .
  • Lodging is a drag near‑term; stabilization achieved but recovery requires improved sales execution—monitor progress or potential divestiture as management is willing to exit underperformers .
  • Strategic actions (Alpha, Avid/TPG, Mastercard) and tech rails (MCA, Circle USDC, Kinexys/JPM) deepen cross‑border capabilities; expect continued mix shift toward Corporate Payments and higher durability of growth .
  • FY25 guide raised modestly on revenue and adjusted EPS; FX tailwinds and expense discipline underpin confidence; watch Q3 delivery (revenue ~$1.165B; adjusted EPS $5.50–$5.70) .
  • Near‑term trading focus: slight Q2 beat/in‑line EPS, raised FY guide, and enterprise ramp are positive; monitor EBITDA vs consensus mix (reported vs adjusted), lodging softness, and execution on divestitures.
  • Medium‑term thesis: portfolio simplification and Corporate Payments scaling (including enterprise) could compress churn, lift mix, and improve capital deployment optionality; cross‑border innovation adds differentiation against bank incumbents .

Other Relevant Press Releases (Q2 window)

  • Circle collaboration: embedding USDC in Corpay rails (24/7 settlement, wallets, card draw from USDC balances) .
  • Kinexys/JPM blockchain: enabling near real‑time FX conversions and extended trading hours; settlement within minutes; efficiency gains for treasury liquidity .

Citations: .

Disclaimer: Consensus estimate values marked with * were retrieved from S&P Global.