Corpay, Inc.

What they do

Corpay provides payment and spend management solutions including accounts payable automation, cross-border payments (foreign exchange spot, forward and option transactions), commercial card programs such as purchasing, business and virtual cards, vehicle payment solutions such as fuel cards and toll payments, and lodging payment solutions including hotel and extended stay bookings. It sells to business customers through digital channels, direct sales forces and strategic partner relationships, and also grows through acquisitions. The company has been a member of the S&P 500 since 2018 and trades on the NYSE under the ticker CPAY.

Revenue drivers

• Corporate Payments — Includes AP automation, virtual cards, cross-border payments and purchasing and T&E card products. Second quarter 2026 revenue was $548.7 million as reported, the largest segment; management cited 16% organic revenue growth in the segment.
• Vehicle Payments — Fuel cards, tolls and complementary products. Second quarter 2026 revenue was $580.2 million as reported, with 147.6 million transactions; revenue benefited from fuel prices/spread and foreign exchange impacts.
• Lodging Payments — Helps businesses manage lodging costs and hotel and housing management. Second quarter 2026 revenue was $123.2 million as reported on 7.5 million room nights, up from $119.8 million a year earlier.
• Other — Includes Gift, Outsourced Card Processing and Payroll Card operating segments. Second quarter 2026 revenue was $86.7 million as reported on 450.4 million transactions.

Recent performance

Second quarter 2026 revenues rose 21% to $1,338.8 million from $1,102.0 million a year earlier. GAAP net income fell 13% to $248.3 million and GAAP diluted EPS fell 7% to $3.70, reflecting a $100 million charge for a preliminary FTC Bureau of Consumer Protection settlement. Non-GAAP adjusted net income rose 27% to $464.4 million and adjusted diluted EPS rose 36% to $7.00. Adjusted EBITDA rose 24% to $767.2 million, and organic revenue growth was 10%.

Strategy

Corpay describes a vision that every payment is digital, every purchase is controlled and every related decision is informed, and is rotating further into corporate payments and spend management. It sells stand-alone products and is deploying platforms where a single customer can use multiple products from one user interface. The company supplements organic growth with acquisitions intended to strengthen and extend market positions. In the second quarter of 2026 it refinanced debt facilities, increased its revolving credit facility to $3.7 billion, exited with 2.55x leverage, and repurchased 1 million shares for $321 million.

Risks

• Technology and cybersecurity disruption — Corpay depends on interconnected computer systems, telecommunications, data centers and call centers, including third-party systems, and incidents at those third parties could disrupt services and extend recovery times.
• Macro and fuel/foreign exchange exposure — Results are sensitive to retail fuel prices and fuel price spreads, electric vehicle adoption, retail lodging prices, foreign exchange rates and interest rates, and management guidance assumes specific fuel and FX levels.
• Regulatory and litigation — The business faces regulation, supervision and examination by foreign and domestic authorities as well as litigation and regulatory actions, including the FTC lawsuit; a $100 million preliminary FTC settlement charge was recorded in second quarter 2026.
• Credit and funding risk — Corpay is exposed to borrowers' credit risks and payment behaviors, sufficiency of its allowance for expected credit losses, its ability to securitize trade receivables, and higher borrowing costs or reduced credit ratings affecting funding and liquidity.

Outlook

For fiscal year 2026, Corpay guides total revenues of $5.290 billion to $5.330 billion, growing 17% at the midpoint, and GAAP net income of $1.285 billion to $1.325 billion, or $19.50 to $19.90 per diluted share. Adjusted net income is guided to $1.790 billion to $1.830 billion, or $27.15 to $27.55 per diluted share, growing 28% at the midpoint. Guidance assumes U.S. fuel prices of $4.02 per gallon for the rest of the year, fuel price spreads approximately flat with the 2025 average, interest expense of $435 million to $465 million, roughly 66 million fully diluted shares, and an adjusted effective tax rate of approximately 25% to 27%. For the third quarter of 2026, revenue is expected at approximately $1.355 billion and adjusted diluted EPS at $7.15 at the midpoint.