Corpay, Inc. Q1 FY2026 earnings call

Top five priorities include rotating portfolio to corporate payments, increasing USA sales in middle market, widening payables monetization, developing cross-border multi-currency account and integrating Alpha, and incorporating AI. Portfolio progress: Alpha organic revenue up 17% in Q1, Avid EBITDA up 50%. Midterm direction: Stay purpose of helping businesses manage expenses, rotate portfolio to corporate payments with divestitures and acquisitions, aim for three global businesses in employee payments, B2B payments, and cross-border.

Corporate payments delivered 16% organic growth in Q1 despite a 200 basis point drag from float revenue compression. Cross-border continued to perform strongly with solid sales and revenue. Alpha integration saw about 15% of clients migrated to the tech platform. Payables business performed well with volume growth. AVID's sales up over 20% vs Q1 2025, EBITDA grew 50%. Vehicle payments organic growth 10% driven by solid results in geographies. Lodging had sequential organic revenue growth improvement of 7% vs Q4 2025.

Raised full year 2026 revenue and earnings guidance. 2026 revenue guidance at midpoint $5.29 billion, growing 17% y/y. Q2 revenue guidance $1.295 billion at midpoint, growing 18% y/y. Adjusted EPS for rest of year at midpoint $26.70, growing 25% y/y. Q2 adjusted EPS at midpoint $6.55, growing 28% y/y.

Q: Strong quarter with underlying trends strong, any puts and takes for remainder of year?

A: Q1 delivered 11% organic growth, rest of year growing over 11% comp, raise for back half is $50 million combination of business performance and macro.

Q: Divestiture and acquisition opportunities?

A: Super late innings on a meaningful divestiture, teasing out additional non-core things, digging into corporate payment assets.

Q: Rotating to corporate payments, capabilities and TAM?

A: Mostly geographic and vertical bulking up, looking for acquisitions close to existing business for synergies.

Q: Cross-border next steps?

A: Tune in to cross-border deep dive, base business performing well, migrations and blockchain rail agreements in progress.

Q: USA sales focusing on middle market?

A: Micro market had issues, middle market is bigger, more stable, fleet business now part of corporate payments.

Q: Lodging business drivers?

A: Base stabilized, same-store sales positive, second half expected mid to high single-digit growth.

Q: U.S. fleet business same-store sales?

A: U.S. fleet business had plus one same-store sales in base, growth tied to middle market sales model.

Q: AP spend management and cross-border growth rate?

A: Both growing significantly in high teens, payables business now global with spend management in Europe.

Q: MasterCard partnership progress?

A: Pleased with partnership, made sales contracts, foreign bank account product popular.

Q: Q2 cross-border comp?

A: No specific issues, cross-border opportunity big with 1% of $160 trillion market.

Q: Corporate volumes and Q2 cross-border comp?

A: No specific comp issues, volume-grower businesses, some giant accounts skew averages.