Seeking details on the sizing, timing, and characteristics of future divestiture and acquisition opportunities, particularly regarding the core businesses and the role of Lodging and Gift.

Ron Clarke indicated being in "late innings" on a meaningful divestiture possibly closing this quarter, with 2-3 additional non-core businesses being evaluated for sale. On the acquisition side, they are looking at Corporate Payment assets, focusing on geographic expansion and vertical penetration rather than new capabilities, aiming for year-one accretion. “I will say, one, that we're super late innings on a pretty meaningful transaction of divestiture. And so that will either happen or not happen, maybe get signed or not in this quarter.”

Asking about the next steps for the cross-border business, specifically regarding Alpha migrations and the JPMorgan/BVNK blockchain rail agreements, and what milestones to watch for.

Ron Clarke highlighted the strong performance of the base cross-border business (sales up 40% in Q1) and emphasized accelerating bank account offerings, completing Alpha platform migration, and testing client adoption of blockchain rails. He expressed personal excitement for the B2B application of tokenized fiat currencies over blockchain. “The key message I want people to take is the thing is rocking. The base business sales, I think, were 40% or something up in Q1.”

Inquiring why the middle market is the current focus for USA sales and if it represents the most beneficial market segment for Corpay.

Ron Clarke explained that the shift is away from the "unpleasant" micro market due to credit/client losses and short account lives. The middle market offers juicier, more stable, and longer-lasting accounts. This also allows integrating fleet products into a broader commercial card platform for middle-market companies with diverse spend needs. “So we point at the middle market, which is juicy, you don't have to give as much money away. The accounts are bigger. They're more stable. They last longer.”

CPAY

Corpay (CPAY) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Information Technology· May 7, 2026

Source: earnings call transcript

Executive summary

Corpay Q1 FY26 — Blowout Quarter with Strong Organic Growth and Raised Full-Year Guidance

Corpay delivered an outstanding Q1 FY26, marked by strong organic revenue growth and significant beats on both top and bottom lines, leading to a confident raise in full-year guidance. The company is actively executing its portfolio rotation towards Corporate Payments, with strategic divestitures and acquisitions underway, aiming for a simpler, high-growth model focused on three global business categories.

Highlights

Reported revenue of $1.26 billion, up 25% year-over-year.
Cash EPS of $5.80, up 29% year-over-year.
Overall organic revenue growth of 11% for the fourth consecutive quarter.
Corporate Payments organic revenue grew 16% (18% excluding flow compression), reaching 40% of total revenues.
New sales/bookings up 24% and overall retention finished at 93.5%.

Concerns

Divestiture of PayByPhone resulted in a $75 million reduction to rest of year revenue guidance.
Adjusted EBITDA margin slightly down year-over-year due to acquisitions.
Higher interest expense expected for the rest of the year, though offset by share buybacks.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$5.290 billion at the midpoint high materiality	FY26	High
Full-year 2026 Organic Revenue Growth	10% high materiality	FY26	High
Full-year 2026 Cash EPS	$26.70 at the midpoint high materiality	FY26	High
Q2 Revenue	$1.295 billion at the midpoint medium materiality	Q2 · FY26	High
Q2 Organic Revenue Growth	9% to 11% medium materiality	Q2 · FY26	High
Q2 Adjusted EPS	$6.55 at the midpoint medium materiality	Q2 · FY26	High
Midterm Cash EPS	double cash EPS to $50 a share high materiality	Midterm forecast period	High
Midterm Cash Generation	about $15 billion high materiality	Midterm forecast period	High
Midterm Organic Revenue Growth	10% high materiality	Midterm	High
Midterm Earnings Growth	15% plus high materiality	Midterm	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Corporate Payments Exceeded expectations driven by strong cross-border and payables performance. Currency volatility was a helpful backdrop for sales. Constituted 40% of overall revenues in Q1. Organic growth excluding flow compression: 18%Spend volumes: $82 billion (up 43% organically)Alpha organic revenue growth: 17% (ex-flow compression)Alpha client migration to tech platform: 15%Avid EBITDA growth: 50% over Q1 2025Payables sales performance: strong	—	16%	—	—
Vehicle Payments Solid results across all three geographies (US, Europe, Brazil). Higher fuel prices benefited the segment. Divestiture of PayByPhone completed. US same-store sales: +1%Brazil business forecast: high teens rest of yearEurope business: steady around 10%	—	10%	—	—
Lodging Better than expected performance, raising confidence for growth acceleration in the second half of the year. Base has stabilized after prior IT issues. Same-store sales: +6%	—	flat	7% vs Q4 2025	—

CPAY operating KPIs by quarter

CPAY operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Retention rate	93.5% Overall retention finished at 93.5%. Source: earnings call transcript	93% Retention remaining steady at 93%. Source: earnings call transcript	-0.5 pt
Payments volume Corporate Payments	$82B Overall, Corporate Payments performance was driven by growth in spend volumes, which increased organically 43% to $82 billion. Source: earnings call transcript	$95B Overall, Corporate Payments continued to be driven by strong underlying customer activity with organic spend increasing 43% to $95 billion. Source: earnings call transcript	+15.9%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Blockchain Rails for Global Settlement Network	launch	integration in progress
Multicurrency Account Banking Business	expansion	ongoing
Spend Management Business	launch	launched

Deals & partnerships

PayByPhone Sale of non-core asset.

Divestiture completed on March 31.

JPMorgan Agreement to integrate blockchain rails for global settlement network.

Partnership to speed the addition of blockchain rails to Corpay's global settlement network.

BVNK Agreement to integrate blockchain rails for global settlement network.

Partnership to speed the addition of blockchain rails to Corpay's global settlement network.

Mastercard Strategic partnership for cross-border business.

Mastercard introduces Corpay to its client base, leveraging Corpay's expertise, particularly for multicurrency bank accounts.

Risks & headwinds

Float revenue compression Q1 FY26

200 basis point drag

Mitigation:Offset by strong performance in cross-border and payables.

Higher interest expense rest of year

offset by lower share count

Mitigation:Expected to be offset by lower share count from year-to-date share buybacks.

IT issues in Lodging segment past

bled us over 6 to 12 months

Mitigation:Base has stabilized, Q1 same-store sales +6%, expected mid-to-high single-digit growth in H2.

Micro market challenges for Vehicle Payments past

credit losses, client losses, short account lives

Mitigation:Shifted focus to middle market for USA sales, which offers more stable and larger accounts.

Slower sales cycle for Mastercard partnership ongoing

3-4 sales contracts, 50 accounts in pipeline

Mitigation:Formula is working, with sales contracts and pipeline accounts building; strong interest in multicurrency bank accounts.

What to watch in Q2 FY26

Divestiture of meaningful non-core asset

Q2 FY26

Current In late innings

Target Signed or not signed

Why it matters

This will further advance the portfolio rotation towards Corporate Payments and free up capital for strategic acquisitions or buybacks.

I will say, one, that we're super late innings on a pretty meaningful transaction of divestiture. And so that will either happen or not happen, maybe get signed or not in this quarter.

Find out whether CPAY delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquiring about the sustainability of strong underlying trends and macro help, and if there's more upside to the full-year guidance given the Q1 performance.

Management confirmed strong Q1 performance and noted that while Q1 had an easier comp, the rest of the year has higher comps. The guidance raise reflects continued business performance and macro favorability, with a built-in revenue climb from Q1 to Q4.

“Remember, in our business, we take the absolute revenue up about $100 million from Q1 to Q4. So there's a climb already built into the guide to start.”

asked by Sanjay Sakhrani · answered by Ronald F. Clarke

2 min read 5 chapters

Detailed narrative

Q1 Performance Highlights

Corpay reported a "blowout quarter" with Q1 revenue of $1.26 billion (up 25% year-over-year) and cash EPS of $5.80 (up 29% year-over-year). Approximately two-thirds of the $50 million Q1 revenue beat was attributed to better performance across the board rather than macro factors.

Organic revenue growth was 11% for the fourth consecutive quarter, driven by Corporate Payments (16% organic, 18% excluding flow compression) and Vehicle Payments (10% organic).

Portfolio Rotation and Strategic Priorities

The company is actively rotating its portfolio towards Corporate Payments, which now constitutes 40% of overall revenues. This involves divesting non-core, TAM-constrained businesses (e.g., PayByPhone divestiture, reducing revenue guidance by $75 million) and acquiring Corporate Payment assets. Key priorities include increasing USA sales in the middle market (targeting companies with $300-$400 million in revenue), widening monetization in payables, developing multicurrency accounts, integrating Alpha, and incorporating AI for product enhancement and expense savings.

Cross-Border Business Momentum

The core cross-border business is performing exceptionally well, with Alpha organic revenue growing 17% in Q1 (excluding flow compression) and 15% of Alpha clients already migrated to Corpay's tech platform. New agreements with JPMorgan and BVNK aim to integrate real-time blockchain rails into the global settlement network, enhancing global commerce for middle-market companies.

The base business sales were up 40% in Q1, contributing to an estimated $1.5 billion in revenue for 2026.

Midterm Vision and Financial Objectives

Corpay's midterm strategy focuses on building three global businesses: employee payments, B2B payments, and cross-border payments, all centered on helping businesses manage expenses. Objectives include sustaining 10% organic revenue growth, achieving 15%+ earnings growth, and doubling cash EPS to $50 per share during the forecast period, supported by an expected $15 billion in cash generation.

The company aims to build a simpler, more attractive, and consistent high-growth entity.

Lodging Segment Recovery

The Lodging segment showed meaningful sequential improvement, landing flat for the quarter, a significant turnaround from previous declines. Same-store sales for Lodging were up 6% in Q1, indicating a strong stabilization and expected mid-to-high single-digit growth in the second half of the year due to pipeline build-up. This recovery is a positive shift from the negative 18% same-store sales seen eight quarters prior.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.