Corpay (NYSE:CPAY) executives told investors the company closed 2025 with a record fourth quarter, highlighting continued double-digit organic revenue growth, strong sales momentum, and contributions from its cross-border and corporate payments operations. Management also issued 2026 guidance that calls for another year of double-digit organic growth and more than 20% cash/adjusted EPS expansion, while outlining priorities that include further portfolio simplification, improved U.S. sales execution, and additional investments in product and automation.
Fourth quarter results beat expectations as sales and retention held firm
Chairman and CEO Ron Clarke said Corpay’s fourth quarter results came in “better than our expectations,” driven primarily by outperformance in Cross-Border and the recently acquired Alpha business. The company reported fourth quarter revenue of $1.248 billion, up 21% year-over-year. Adjusted (cash) EPS was $6.04 per share, up 13% year-over-year, which Clarke noted would have been up 20% at a constant tax rate.
Full-year 2025: 10% organic revenue growth and major portfolio moves
For full-year 2025, Corpay reported revenue of $4.528 billion, up 14%, and adjusted EPS of $21.38, up 12% year-over-year (or 17% at a constant tax rate). Management said organic revenue growth was 10% for the year, making it four of the last five years with 10%+ organic growth.
Clarke described 2025 as an “active repositioning year,” with several transactions and investments intended to expand the corporate payments footprint and capabilities:
- Acquisition of Alpha, which management said adds an international bank account product and access to the asset management segment.
- A $300 million investment from Mastercard in Corpay’s cross-border business at a $13 billion valuation, aimed at helping unlock the financial institution (FI) channel.
- An investment in AvidXchange to deepen the company’s position in middle-market AP automation and payments.
- Acquisition of a second vehicle debts company in Brazil, intended to accelerate non-toll revenue growth in that market.
Segment commentary: corporate payments strength, lodging still pressured
CFO Peter Walker said the quarter’s “headline” was overperformance, supported by strong corporate payments results and expense discipline. Corporate payments delivered 16% organic growth in the fourth quarter despite what Walker called a 200-basis-point drag from float revenue compression due to lower interest rates. Corporate payments growth was also supported by spend volumes that increased 44% on a pro forma basis to more than $81 billion.
Cross-border demand remained resilient during the year, Walker said, “even in the face of trade-related uncertainty,” and Alpha integration was described as progressing well. Clarke later added that Alpha had exceeded his expectations culturally and commercially, saying sales teams “came roaring out of the blocks,” and he noted January performance was ahead again.
Vehicle payments delivered 10% organic revenue growth in the quarter. Walker noted the company has three roughly equal-sized vehicle payments businesses across the U.S., Europe, and Brazil, with strong performance across all three. On the call, he said the U.S. fleet card business delivered approximately 5% organic growth for the quarter. Clarke added that same-store sales in the U.S. vehicle business turned positive for the first time in six quarters, and he pointed to improving approval rates and more stable retention.
Lodging, which management said represents less than 10% of total revenue, declined 7% year-over-year. Walker said lodging was roughly flat when adjusting for a 600-basis-point drag from lower FEMA emergency revenue versus the prior year, and Corpay is assuming low single-digit growth in 2026 with headwinds in the first half and improvement in the back half as new sales and implementations come online.
2026 outlook: revenue midpoint $5.265B and adjusted EPS midpoint $26
Corpay issued full-year 2026 guidance calling for revenue of $5.265 billion at the midpoint, up 16% year-over-year, and adjusted (cash) EPS of $26.00 at the midpoint, up 22%. Clarke cited three main drivers behind the outlook: fundamentals (including record Q4 exit trends and strong sales), “creative acquisitions,” and a more favorable macro backdrop.
Management expects 10% organic revenue growth in 2026, though Walker said the company’s organic growth rate is guided below the 2025 exit rate due to additional float headwinds that are more heavily weighted in the first half of 2026. Macro assumptions include favorable FX, lower SOFR rates, and a roughly flat year-over-year tax rate.
Alpha is expected to contribute about $300 million of incremental revenue in 2026, and Clarke said Alpha and the Avid investment together are expected to contribute approximately $1.00 of cash EPS to the 2026 outlook. Executives also discussed cost and integration work, including a planned IT systems sunset at Alpha that Clarke said should unlock savings across IT, compliance, and operations.
The company also provided first-quarter guidance, with revenue of $1.21 billion at the midpoint (up 20% year-over-year), organic revenue growth of 9% at the midpoint, and adjusted EPS of $5.45 at the midpoint (up 21%).
Divestitures and capital allocation: PayByPhone deal signed; more sales in process
As part of its portfolio rotation, Corpay signed a definitive agreement to sell PayByPhone, which management described as a non-core vehicle payments asset. Walker said the deal is expected to close in the second quarter of 2026, and the impact is not included in guidance because the company updates guidance for closed deals. PayByPhone is expected to produce approximately $100 million of annual revenue in 2026, and Walker said the transaction is not expected to have a material impact to adjusted EPS because Corpay plans to use proceeds to repurchase shares.
Clarke told analysts the company is working on two additional vehicle-related divestitures, describing them as “pretty late stage,” and said if both close the proceeds would be “over $1 billion,” with an expected use of proceeds to buy back shares.
Walker said Corpay ended the quarter with a leverage ratio of 2.8x and repurchased 1.7 million shares for $500 million in the quarter (2.6 million shares for the year). The company has approximately $1.5 billion remaining under its authorization, including $1 billion of additional authorization approved in December. Walker added that the company’s forecast assumes free cash flow is used to pay down debt and that 2026 guidance does not include any share buybacks.
Walker also noted the company remediated an outstanding material weakness related to user access, which he said would be reflected in the 10-K.
About Corpay (NYSE:CPAY)
Corpay (NYSE:CPAY) is a global payments and fintech company that provides businesses with tools to manage, move and optimize corporate spend. The company focuses on commercial payments, foreign exchange and cross-border transactions, aiming to simplify treasury operations and reduce friction in business-to-business payments through technology-driven solutions.
Its product offering includes payment processing and accounts payable automation, corporate and virtual card programs, expense management tools, and foreign-exchange hedging and execution services for international payments.
