Corpay Inc Q2 2025 Earnings Call Summary

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

Question: Andrew Jeffrey - William Blair & Company LLC - Analyst : Hi guys, appreciate you taking the question. I guess I wanted to dig in a little bit on corporate payments. It seems like you've built and are building, certainly one of the most complete vertically integrated tech stacks in the market. And when we think about GPS and the very strong sales and the pending acquisition of Alpha and very good performance, could, as we think the '26 and '27 that organic revenue growth could even accelerate from these levels? Or how are you framing that as you plan out over the next couple of years?

Question: Andrew Jeffrey - William Blair & Company LLC - Analyst : Okay. That's helpful. It's pretty exciting to watch. And then just on the Circle deal, which I think is also notable, are they going to be both a customer using on-ramp and off-ramp and are you going to be a customer of theirs or a distribution partner of theirs in terms of incorporating USDC in your MCA product?

Question: Andrew Jeffrey - William Blair & Company LLC - Analyst : Okay, excellent. Peter, look forward to working with you. Welcome to Corpay.

Question: Darrin Peller - Wolfe Research LLC - Analyst : Maybe we could just hit on the U.S. vehicle acceleration and just help us understand what underpins the acceleration that you're anticipating into the second half? And just to hit on whether it contemplates the BP portfolio to you guys. Thanks.

Question: Darrin Peller - Wolfe Research LLC - Analyst : Okay, Ron, that helps. Thanks. Just a quick follow up on the corporate payment side. Just the contribution of the enterprise domestic payables client to the corporate payment segment. Was there anything there? And then just what were the underlying signs in the segment from the same sort of sales activity? Just how's how's activity from either domestic or international AP payments as well if you if you don't mind. Thanks again guys, good job.

Question: Darrin Peller - Wolfe Research LLC - Analyst : Just what you're seeing in the underlying trends right now more than anything else in the last quarter and then into this quarter coming up.

Question: Darrin Peller - Wolfe Research LLC - Analyst : That's great to hear. All right, very helpful, Ron. Thanks guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2025 / 9:30PM, CPAY.N - Q2 2025 Corpay Inc Earnings Call

Question: Tien-Tsin Huang - J.P. Morgan - Analyst : Thank you so much. Welcome to the call. Just on the lodging side, I'm just curious on the visibility there and what could turn out differently than what you're forecasting either on the upside or the downside. I'm sure you've got some plans, I assume, to reenergize growth as well?

Question: Tien-Tsin Huang - J.P. Morgan - Analyst : Got you. And just my quick follow-up just on the divestitures Ron. Just on the -- if you achieve your target EV, I'm assuming that you've got -- it sounds like it has been (inaudible) on $1.5 billion. Just thinking about the earnings impact and how much flex you have and what you're thinking in achieving your goals there with the divestitures? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2025 / 9:30PM, CPAY.N - Q2 2025 Corpay Inc Earnings Call

Question: Tien-Tsin Huang - J.P. Morgan - Analyst : Got it. Understood. Thank you.

Question: Nate Svensson - Deutsche Bank - Analyst : Hey guys, I know last quarter, we were talking a lot about tariffs. So I guess I'm just wondering if there was any impact to 2Q numbers from tariffs, any sort of pull forward, strength in the FX hedging business, we talked about last quarter, anything on volume impacts -- and then I guess the related question, in the prepared remarks, you called out record cross-border sales. And so I guess I'm just wondering like given how dynamic the environment is, is it actually helping the go-to-market motion and your value prop as your end consumer -- or your end companies that you're serving to deal with an environment that's changing on a daily basis?

Question: Nate Svensson - Deutsche Bank - Analyst : That's helpful. For the follow-up, the Zafe and Greenville growth really stood out. I think you classified it as growing like crazy Ron. And like moving aside currency fluctuations, the Brazil business has been a really strong performer. So maybe you could talk about more about some of the strength you're seeing there and kind of what's embedded in the vehicle payments acceleration outside of the U.S. vehicle payments that we talked about earlier? And then maybe you could extend that topic to something we've touched on in the past. It's the broader consumer vehicle payment efforts. So any update on how things are progressing in the U.K. update on plans in the U.S., et cetera?

Question: Nate Svensson - Deutsche Bank - Analyst : Thanks Ron, I get paid by the question, so I appreciate you obliging the multi-parter.

Question: Sanjay Sakhrani - Keefe, Bruyette & Woods - Analyst : Thanks. I guess I have a question for Peter and Ron, maybe you to, the growth is really strong and the setup for the second half for vehicle and corporate payments, obviously, in corporate payments with the enterprise relationship coming on in July, it looks good. But the fourth quarter is a pretty difficult comparison in terms of the growth rate. I mean, could you just talk about like the cadence of the growth? Like do we need to worry just about the fourth quarter growth rates? Just trying to think through all of that .

Question: Sanjay Sakhrani - Keefe, Bruyette & Woods - Analyst : Okay. So you expect the grow over to be just fine to the fourth quarter?

Question: Sanjay Sakhrani - Keefe, Bruyette & Woods - Analyst : Okay. Got it. And just maybe, Ron, a follow-up just on same-store sales. Obviously, it ticked down a little bit, just curious, like, is there anything that you're seeing from an economic standpoint that concerns you in terms -- what can drive a reacceleration there? And how much of that -- I know you said you've kind of figured for flat same-store sales for the rest of the year, but just trying to think through what the puts and takes there are?

Question: Nate Svensson - Deutsche Bank - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2025 / 9:30PM, CPAY.N - Q2 2025 Corpay Inc Earnings Call

Question: Ramsey El-Assal - Barclays Corporate & Investment Bank - Analyst : Hi, thank you for taking my question and welcome to you, Peter. I wanted to ask about retention. It was another nice result in the quarter. And I'm not implying that necessarily this was the driver of that result. But given the structurally higher retention rates and corporate payments versus some of your other historical businesses, should we expect retention -- overall company retention rates to climb up over time just given the mix shift to corporate payments? And then I guess the next logical step is, will that have an impact on driving some revenue acceleration as you don't have to turn -- replace so many clients that sort of churn through sort of longer-term philosophical questions, but just curious your perspective.

Question: Ramsey El-Assal - Barclays Corporate & Investment Bank - Analyst : Got it. Got it, thank you. A quick follow-up on gift. I know it's noncore, but Q3, I know there's this reissuance in terms of tamper-proof packaging. And I'm just curious in terms of your visibility to what arrived in Q2 versus what may come in Q3? Are we anything are we in there? Should we expect kind of a days to come? Or are you already sort of past the halfway point with that whole cycle?

Question: Ramsey El-Assal - Barclays Corporate & Investment Bank - Analyst : Got it. And by the way, I think you bought the business 11 years ago. So time flies, Ron. Thanks a lot.

Question: John Davis - Raymond James - Analyst : Hey, good afternoon, guys. Ron, I just want to circle back to lodging. You're not known for owning businesses that don't really grow. So as we think about that segment, the flattish plus or minus growth -- how much of that is macro? Like what do you think you can do to reaccelerate growth? And if you can't get it back to something that's more reasonable from a growth perspective, if it does it make sense to own it? And would you potentially offload to deploy capital to corporate payments or a faster-growing segment of the business?

Question: John Davis - Raymond James - Analyst : Okay. Great. And then just switching to the balance sheet here. So Ron, you laid out kind of a mid- to high 2s pro forma kind of leverage at year-end closing alpha with some of the divestitures. Given kind of the integration of GPS and Alpha, should we expect more buybacks given kind of -- you do have some balance sheet flexibility, but you are also integrating a couple of acquisitions at the same time? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2025 / 9:30PM, CPAY.N - Q2 2025 Corpay Inc Earnings Call Just curious what kind of the appetite for M&A from here, call it, over the next 12 months versus buybacks and how we should think about it?

Question: Mihir Bhatia - Bank of America Securities - Analyst : Hi, good afternoon. Thank you for taking my questions and welcome Steve. So I wanted to take a step back maybe and ask a question about stablecoins. Just from a big picture perspective, lots of announcements in recent weeks around stablecoins, including from you. And I was wondering if you could talk a little bit more about everything you're doing there. I'm particularly interested in the opportunities and risks you see to your existing business? And also, if you -- like where are things -- what parts of stablecoins are exciting for you and what parts are way you're looking at it and say, hey, maybe we need to reach ego the business a little bit to accommodate stable points? Maybe even talk about the transaction economics with stablecoins versus without. Thank you.

Question: Mihir Bhatia - Bank of America Securities - Analyst : Ron, if you just touch on transaction economics?

Question: Mihir Bhatia - Bank of America Securities - Analyst : Got it. Thank you so much.

Question: Trevor Williams - Jefferies LLC - Analyst : Hey guys, thanks for taking the question. I want to go back to corporate payments and the 18% growth. On the Q1 call it, it sounded like April had been a very strong month. So if you could just talk us through what the sequencing and puts and takes look like from there in May and June. I think Peter, you called out some softness in North America, but any more detail there would be helpful? Thanks.

Question: Trevor Williams - Jefferies LLC - Analyst : Okay. Got it. And then just going back to the full year revenue guide, if you could put a finer point on the moving pieces, just within the organic guide, it sounds like it's mostly lodging. That's a part of the one point cut, but the relative sizing of that against the better FX, just how we net to the $25 million full year race?

Question: Trevor Williams - Jefferies LLC - Analyst : Yeah, okay. I appreciate all that. Thanks, Ron.

Question: Ken Suchoski - Autonomous Research - Analyst : Ron and Peter, thanks on taking the questions, maybe I'll ask on U.S. vehicle. I mean, it's nice to see the momentum and moving in the right direction and getting to mid-single digits in the back half. I guess I'm curious to get your view on whether U.S. vehicle can

Question: Ken Suchoski - Autonomous Research - Analyst : Yes. No, that makes sense, Ron. And maybe just as my follow-up, I think Sanjay maybe asked about it, but just revisiting that 3Q versus 4Q growth rate, I mean when we look at pretty much every segment has a harder comp on the year-over-year growth rate in 4Q, even total company, I think, is like six points harder. So why doesn't that impact the year-over-year growth in 4Q? Ron, I know you look at the business sort of quarter-over-quarter, but just optically year-over-year, it looks like it's harder. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2025 / 9:30PM, CPAY.N - Q2 2025 Corpay Inc Earnings Call And then, I guess, if you could just give us like what is the expectation for organic growth in 3Q versus 4Q, that would be helpful. Thank you.

Question: Ken Suchoski - Autonomous Research - Analyst : Yes. I think the organic growth in 3Q versus 4Q, Ron, but I think one question we're getting is just like the growth in 4Q 2024 was so much harder versus 3Q. So if you just look at that like run rate, it sort of implies some acceleration, I feel like, in the fourth quarter.

Question: Ken Suchoski - Autonomous Research - Analyst : Okay. Great. Thank you, Ron.

Question: Dave Koning - Robert W. Baird & Co Inc - Analyst : Yeah, hey guys, thank you. Just one question, free cash flow looked massive in Q2 look like your best cash flow ever. And just a question, I guess, a lot of companies actually guide to cash flow and a lot have less cash flow than earnings. In your case, you've had better cash flow than earnings -- maybe just philosophically, would you ever guide to that? And then maybe why is your cash flow so strong and is it sustainable? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 06, 2025 / 9:30PM, CPAY.N - Q2 2025 Corpay Inc Earnings Call

Question: Dave Koning - Robert W. Baird & Co Inc - Analyst : Yeah, that's great. Thank you.