10-QPeriod: Q1 FY2025

CORPAY, INC. Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 12, 2025For Securities:CPAY

Summary

Corpay, Inc. (CPAY) reported solid top-line growth in its first quarter of 2025, with revenues increasing by 7.5% to $1.01 billion year-over-year. This growth was driven by a combination of organic expansion, successful acquisitions, and new business initiatives, partially offset by macroeconomic headwinds and the divestiture of its merchant solutions business. The company demonstrated strong operational execution, with the Corporate Payments segment showing particularly robust growth of 32.9% in revenue. Net income attributable to Corpay rose by 5.9% to $243.2 million, translating to a diluted EPS of $3.40, up from $3.12 in the prior year. Despite increased investments in sales and marketing and integration costs from recent acquisitions, Corpay maintained a stable Adjusted EBITDA margin of 55.2%. The company also reported a significant increase in cash and cash equivalents and restricted cash, ending the quarter at $4.38 billion.

Financial Highlights

50 data points
Beta

Revenue

$1.01B

Net Income

$243.88M

24.3% Net Margin

EPS (Diluted)

$3.40

Total Assets

$18.55B

Cash & Equivalents

$1.55B

Free Cash Flow

-$118.92M

Financial Statements
Beta
Revenue$1.01B
Operating Income$427.12M
Net Income$243.88M
EPS (Basic)$3.46
EPS (Diluted)$3.40
Shares Outstanding (Basic)70.32M
Shares Outstanding (Diluted)71.56M

Key Highlights

  • 1Consolidated revenues grew 7.5% to $1.01 billion, driven by organic growth and acquisitions.
  • 2Corporate Payments segment revenue surged by 32.9% to $352.7 million, showcasing strong performance.
  • 3Net income attributable to Corpay increased by 5.9% to $243.2 million, with diluted EPS rising to $3.40.
  • 4Adjusted EBITDA margin remained strong at 55.2%, indicating efficient operations despite investments.
  • 5The company made a significant acquisition (Gringo) in Brazil for $153.7 million in February 2025, expanding its vehicle payments business.
  • 6Total cash and cash equivalents and restricted cash increased to $4.38 billion at quarter-end.
  • 7Subsequent events include a strategic partnership with Mastercard and a minority investment in AvidXchange.

Frequently Asked Questions

Corpay's consolidated revenues increased by 7.5% to $1.01 billion, primarily driven by a 9% organic revenue growth from increased spend and transaction volumes, new sales initiatives, and the impact of acquisitions completed in 2024 and 2025. This growth was partially tempered by macroeconomic headwinds and the disposition of its merchant solutions business.

The Corporate Payments segment was a standout performer, with revenues increasing by 32.9% to $352.7 million, fueled by 19% growth in spend volume and strong new sales. The Vehicle Payments segment saw a slight decrease of 1.4% in revenue to $487.1 million, impacted by foreign exchange rates and the divestiture of its merchant solutions business, though organic growth was 8%. Lodging Payments revenue decreased slightly by 1.0% to $110.2 million.

Corpay ended the quarter with a strong liquidity position, with cash and cash equivalents and restricted cash totaling $4.38 billion. Management believes its current cash levels and borrowing capacity under its credit and securitization facilities are sufficient to meet its operational needs and planned requirements for the foreseeable future. The company also reported a decrease in net cash used in operating activities compared to the prior year period, which was primarily driven by changes in working capital.

Corpay is involved in various legal proceedings, including a derivative lawsuit and an FTC matter. While the company believes its defenses are strong and the FTC matter is not expected to be material to its financial performance, it acknowledges that the ultimate resolution of these matters could have a material adverse effect on its results of operations and financial condition. The derivative lawsuit was dismissed on April 1, 2025.