Corpay Inc at Raymond James TMT and Consumer Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: John Davis - Raymond James - Analyst : Maybe we'll just start quarter-to-date macro trends. Anything you've seen or observed post the call a month ago or so, I would love to get

Question: John Davis - Raymond James - Analyst : Okay. And I wanted to dive in a little bit in vehicle payments and specifically North America fleet. Obviously, that's been challenged. The macro backdrop there has been bouncing along the bottom for a while now. You saw some nice acceleration in the third quarter to mid-single digits. I think you expect that to continue in the fourth quarter. Maybe touch on what drove that acceleration? And then any other macro comments on North America fleet specifically? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 1:40PM, CPAY.N - Corpay Inc at Raymond James TMT and Consumer Conference

Question: John Davis - Raymond James - Analyst : Okay. And maybe shifting to Corporate Payments, which obviously has been a big focus, mid- to high teen grower, fantastic 2025. Maybe we'll start a little bit on the fourth quarter. I think you have a much tougher comp. You talked about incremental float headwind. Maybe talk a little bit about what the expectations for the fourth quarter, how you get to that kind of mid-teen plus growth rate despite a 900 basis point tougher comp because that's the number one question I get from investors right now is fourth quarter everything seems fine. The corporate payments, the math and the spreadsheet looks tough, but Ron was very emphatic on the call that you felt really strongly about that. So maybe just talk a little bit about the tailwinds and what's driving that growth?

Question: John Davis - Raymond James - Analyst : Okay. And maybe let's take a second and zoom out on the corporate payments business given it's been such a focus from an M&A perspective, lots of moving pieces. You've got Avid, you've got Alpha. Just remind us what's cross-border, what's the payables business, the growth rates? And what does that look like as we sit here approaching 2026. I think corporate payments means a lot to a lot of different people. We have competitors that have very different corporate payments businesses. And so just would love to maybe zoom out for a second and just kind of talk about the pieces and maybe remind the audience how large that business is as a total of all of CPay?

Question: John Davis - Raymond James - Analyst : So as we break down that mid-teens growth. If I recall last time, I think Ron talked about it, you're talking high teens to low 20s in the cross-border business. And then the payables business grows a little bit slower, you have the full AP growing faster than the indirect channel, which is, I think, now the de minimis. But is that the right way to think about just the relative growth rates of how we get to that mid- to high teen consolidated corporate payments growth, corporate -- the FX cross-border business and then the payables, any color there?

Question: John Davis - Raymond James - Analyst : Okay. And speaking of deals closing, Mastercard partnership closed yesterday. So it's $300 million or a 3% stake. But maybe talk a little bit about why that partnership is important. You've called out, I think, 200 to 300 basis point tailwind to the cross-border business in 2026. So maybe talk a little bit about that deal and what gives you confidence in that incremental growth tailwind next year.

Question: John Davis - Raymond James - Analyst : Okay. Great. And then maybe last corporate payments topic. Everyone's favorite stablecoins. You guys recently announced a partnership with Circle. I think a lot of people really are struggling to kind of understand both the opportunity and the risk from stablecoin. So would just love to get your perspective on the cross-border business and how you guys think about Circle partnership and the broader stablecoin opportunity?

Question: John Davis - Raymond James - Analyst : Okay. No, that's great. And then I did want to spend just 30 seconds on the lodging business. I think that's something that used to be a really nice grower, has been more challenged recently. I think Ron on the last call mentioned that if it wasn't going to turn around, he'd be LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 1:40PM, CPAY.N - Corpay Inc at Raymond James TMT and Consumer Conference opening to potentially selling that business. But maybe just talk a little bit about what the challenges have been and what you guys need to do to get that back on the right growth trajectory.

Question: John Davis - Raymond James - Analyst : Okay. And then just maybe rounding up from the segment perspective. Gifts had a nice year. You had a tailwind from a lot of retailers having to reprint or reissue cards. And maybe just talk about that in the context of the gift business broadly and kind of how we should think about that growth on a more normalized basis?

Question: John Davis - Raymond James - Analyst : Okay. No, that's great. Maybe we'll turn to the preliminary '26 outlook that you guys laid out on the third quarter call, calling for roughly 10% top line growth. I think that's very encouraging given some of the trends like in lodging that continue to be a drag on the business. But LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 1:40PM, CPAY.N - Corpay Inc at Raymond James TMT and Consumer Conference maybe if we just zoom out, how should we think about the different pieces of that 10% growth? Anything to call out, whether by segment or otherwise that we should make sure and keep in mind as we think about that 10% for the full year?

Question: John Davis - Raymond James - Analyst : Okay. And then I think you guys stop short of kind of a lot of EPS commentary. I think last year, Ron gave kind of an EPS run rate. You guys stayed away from that. But the one thing you did give was the $0.75 contribution from Alpha and Avid. But as we think about EPS, is there anything we need to keep in mind, whether obviously, lower rates are going to help on the interest income -- or sorry, the interest expense, but then you do have a float headwind in the corporate payments business. But just anything else we should keep in mind when we're thinking about earnings for 2026?

Question: John Davis - Raymond James - Analyst : Okay. No, that's great. And then --

Question: John Davis - Raymond James - Analyst : Okay. And maybe just turning to the balance sheet. You guys have been obviously pretty active with Mastercard and Avid and Alpha. Up 2.8 times or so end of the year. How do you guys think about buybacks versus incremental M&A? Do you need time to digest the recent acquisitions? And then Ron also talked about a couple of deals or divestitures that could be out there, it could be as much as $1.5 billion. So just how should we think about capital allocation as we go into 2026? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 1:40PM, CPAY.N - Corpay Inc at Raymond James TMT and Consumer Conference

Question: John Davis - Raymond James - Analyst : Perfect. We've got just a couple of minutes here left. Any questions in the audience? All right. Well, as we wrap up Peter here, what is the one message you want investors to walk away from this presentation with?

Question: John Davis - Raymond James - Analyst : Or a couple. That's fine.

Question: John Davis - Raymond James - Analyst : All right. We're going to leave it there. Thanks, Peter.