07-05-2025
Corpay Inc (CPAY) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: Q1 2025 revenue of $1.6 billion, up 8% year-over-year.
Cash EPS: $4.51, up 10% year-over-year; would be up 18% on constant macro basis.
Organic Revenue Growth: 9% overall; Vehicle Payments 8%, Corporate Payments 19%.
Same-Store Sales: Positive 1% growth.
Retention Rate: Steady at 92%.
Sales/New Bookings: Up 35% versus Q1 last year.
Full Year 2025 Revenue Guidance: $4.420 billion at the midpoint.
Full Year 2025 Cash EPS Guidance: $21 at the midpoint.
Corporate Payments Revenue: Up 19% organically.
Cross-Border Revenue: Increased 18% organically.
Vehicle Payments Revenue: Grew 8% organically.
Operating Expenses: $579 million, increased 8% year-over-year.
Adjusted EBITDA Margin: 55.2%, consistent with prior year.
Leverage Ratio: 2.69x, down 6 bps from year-end.
Cash and Revolver Availability: Over $2.5 billion at the end of the quarter.
Q2 2025 Revenue Growth Expectation: 12% to 14%.
Q2 2025 Cash EPS Growth Expectation: 11% to 13%.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Corpay Inc (NYSE:CPAY) reported Q1 2025 revenue of $1.6 billion, an 8% increase, with cash EPS up 10% to $4.51.
Organic revenue growth was strong at 9%, with Vehicle Payments and Corporate Payments segments showing 8% and 19% growth, respectively.
The company announced a strategic partnership with Mastercard, which is expected to add 2% to 3% incremental revenue growth to the cross-border business starting next year.
Corpay Inc (NYSE:CPAY) is maintaining its full-year 2025 guidance with expected organic revenue growth of 11% and cash EPS of $21.
The company is actively pursuing M&A opportunities, including a $500 million investment in Avid, which is expected to be accretive to earnings in 2026.
Negative Points
The company faced a $6 million unfavorable fuel spread revenue shortfall in Q1 due to low price volatility.
Cross-border revenue was impacted by U.S. tariff policies, with an expected unfavorable impact of $10 million to $15 million for the remainder of 2025.
U.S. Vehicle Payments revenue declined by 3% organically, although improvements in retention and sales are anticipated.
Lodging organic revenue growth was down 1% for the quarter, although it showed improvement from the previous year's decline.
The macroeconomic environment remains uncertain, with potential indirect impacts from tariffs on client volumes and overall business performance.
Q & A Highlights
Q: Can you provide more details on the partnership with Mastercard and the expected revenue growth? A: Ronald Clarke, CEO, explained that the partnership with Mastercard is expected to add 2-3% incremental revenue growth to Corpay's cross-border business. He emphasized the significant opportunity due to the large volume of cross-border payments currently handled by banks, and expressed confidence that Mastercard's involvement will drive growth.
