Q1 2026 Corpay Inc Earnings Call

May 7, 2026

Speaker #2: Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press star zero and a member of our team will be happy to help you.

Operator 2: Hello, and welcome everyone joining today's Corpay Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you'll have the opportunity to ask questions during a question-and-answer session. To register to ask a question at any time, please press star one on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Jim Eglseder, Investor Relations. Please go ahead.

Operator: Hello, and welcome everyone joining today's Corpay Q1 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you'll have the opportunity to ask questions during a question-and-answer session. To register to ask a question at any time, please press star one on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Jim Eglseder, Investor Relations. Please go ahead.

Speaker #2: Hello and welcome, everyone, joining today's CORPAY First Quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. Later, you'll have the opportunity to ask questions during a question-and-answer session.

Speaker #2: To register to ask a question at any time, please press star one on your telephone keypad. Please note this call is being recorded. We are sending by if you should need any assistance.

Speaker #2: It is now my pleasure to turn the meeting over to Jim Eglseder, Investor Relations. Please go ahead. Good afternoon and thank you for joining us today for our earnings call to discuss the first quarter 2026 results.

Jim Eglseder: Good afternoon, and thank you for joining us today for our earnings call to discuss the Q1 2026 results. With me today are Ron Clarke, our Chairman and CEO, and Peter Walker, our CFO. Our earnings release and supplemental materials for the quarter are available on the investor relations section of corpay.com. Please refer to these materials for an explanation of the non-GAAP financial measures discussed on this call, along with a reconciliation of those measures to the nearest applicable GAAP measures. Our remarks today will include forward-looking statements about expected operating and financial results, strategic initiatives, acquisitions and synergies, and divestitures, among other matters. Forward-looking statements may differ materially from actual results and are the subject to a number of risks and uncertainties.

Speaker #2: With me today are Ron Clarke, our Chairman and CEO, and Peter Walker, our CFO. Our earnings released and supplemental materials for the quarter are available on the Investor Relations section of CORPAY.com.

Speaker #2: Please refer to these materials for an explanation of the non-gap financial measures discussed on this call, along with a reconciliation of those measures to the nearest applicable gap measures.

Speaker #2: Our remarks today will include forward-looking statements about expected operating and financial results, strategic initiatives, acquisitions and synergies, and divestitures, among other matters. Forward-looking statements may differ materially from actual results and are the subject of a number of risks and uncertainties.

Speaker #2: Some of those risks are mentioned in today's press release on Form 8K and can also be found on our annual report on Form 10K.

Jim Eglseder: Some of those risks are mentioned in today's press release on Form 8-K and can also be found on our annual report on Form 10-K. These documents are available on our website and at sec.gov. Now I'll turn the call over to Ron Clarke, our Chairman and CEO. Ron?

Speaker #2: These documents are available on our website and at SEC.gov. So now I'll turn the call over to Ron Clarke, our Chairman and CEO. Ron?

Speaker #3: Okay, Jim. thanks. good afternoon, everyone, and thanks for joining, today's call. up front here, I'll plan to cover, four subjects. first, provide my take on Q1 results.

Ron Clarke: Okay, Jim. Thanks. Good afternoon, everyone, and thanks for joining today's call. Upfront here, I'll plan to cover 4 subjects. First, provide my take on Q1 results. Second, I'll share our revised guidance for full year 2026. Third, I'll review progress against our top priorities. Lastly, I'll share our thoughts on the midterm direction for the company and where we're headed. Okay, let me begin with our Q1 results, which were really outstanding. We reported revenue of $1.26 billion, up 25%, and Cash EPS of $5.80, up 29%. Importantly, about two-thirds of our $50 million Q1 revenue beat versus guidance was really just better performance across the board, not macro-related.

Ron Clarke: Okay, Jim. Thanks. Good afternoon, everyone, and thanks for joining today's call. Upfront here, I'll plan to cover four subjects. First, provide my take on Q1 results. Second, I'll share our revised guidance for full year 2026. Third, I'll review progress against our top priorities. Lastly, I'll share our thoughts on the midterm direction for the company and where we're headed. Okay, let me begin with our Q1 results, which were really outstanding. We reported revenue of $1.26 billion, up 25%, and cash EPS of $5.80, up 29%. Importantly, about two-thirds of our $50 million Q1 revenue beat versus guidance was really just better performance across the board, not macro-related.

Speaker #3: second, I'll share our revised guidance, for full year 2026. third, I'll review progress, against our top priorities. and then lastly, I'll share our thoughts, on the midterm direction for the company and, and where we're headed.

Speaker #3: Okay, let me begin with our, Q1 results, which were, really outstanding. we reported revenue of $1.26 billion, up 25%, and cash EPS of $580, up 29%.

Speaker #3: Importantly, about two-thirds of our $50 million Q1 revenue beat versus guidance was really just better performance across the board, not macro-related. So for us, this Q1 was really a, a, a blowout quarter.

Ron Clarke: For us, this Q1 was really a blowout quarter. Q1 overall organic revenue growth 11%. That makes four consecutive quarters of 11%. Inside of that, Corporate Payments grew 16%. That's 18% excluding flow compression, and did reach 40% of our overall revenues in the quarter. Vehicle Payments grew 10%, all three geographies contributing the US, Europe, and Brazil. Lodging improved meaningfully sequentially, landing flat for the quarter. Big improvement there. The Q1 operating trends are also quite good. Overall retention finished at 93.5%. I do wanna note that this metric now includes our cross-border business. New sales or bookings up 24%. Happy with that.

Speaker #3: Q1, overall organic revenue growth 11%. That makes four consecutive quarters of, of 11%. inside of that, corporate payments grew, 16%. that's 18% excluding, float compression.

Speaker #3: And did reach 40% of our overall revenues, in the quarter. vehicle payments grew 10%, all three geographies, contributing the, the US, Europe, and Brazil.

Speaker #3: And lodging improved meaningfully, sequentially, landing flat—flat for the quarter. So, a big improvement there. The Q1 operating trends were also quite good. Overall retention finished at 93.5%.

Speaker #3: I do want to note that this metric, now includes our cross-border business. New sales or bookings, up 24%, happy with that. And same-store sales, finishing, flat for the quarter.

Ron Clarke: Same-store sales finishing flat for the quarter. Look, we are clearly off to a terrific start here. All right, let me transition to our 2026 guidance. Given our Q1 performance and the current trends, the raise to full year guidance is really pretty straightforward. We're raising full year 2026 revenue guidance today to $5,290 million at the midpoint. That's driven really by a few things. First, we'll flow through the $50 million Q1 revenue beat. Second, we'll increase rest of year revenue guidance another $50 million as a result of higher fuel price expectations and ongoing or continued better fundamental performance. We'll also net out $75 million from rest of year revenue to reflect the divestiture of PayByPhone on 31 March.

Speaker #3: So look, we are clearly off to a, to a terrific start here. All right, let me transition to our 2026 guidance. given our Q1 performance and the current trends, the raise to full year guidance is really pretty, pretty straightforward.

Speaker #3: So we're raising full year 2026 revenue guidance today to, $5,290 at the midpoint. And that's driven really by a few things. first, we'll flow through the $50 million Q1 revenue beat.

Speaker #3: Second, we'll increase rest-of-year revenue guidance another $50 million as a result of higher fuel price expectations and ongoing or continued better fundamental performance. We'll also net out $75 million from rest-of-year revenue to reflect the divestiture of Pay-by-Phone on March 31st.

Speaker #3: We do continue to expect 10% organic revenue growth, for the year, which again is our most important measure of, of durability. On the earnings side, we are raising full year 2026 cash EPS guidance to $2,670 at the midpoint.

Ron Clarke: We do continue to expect 10% organic revenue growth for the year, which again is our most important measure of durability. On the earnings side, we are raising full year 2026 Cash EPS guidance to $26.70 at the midpoint. That's a result of flowing through our Q1 EPS beat of $0.35. It's adding a rest of year Cash EPS raise of $0.35 also. That's coming from the expected $50 million in rest of year higher revenue. We do expect to have a lower share count from year to date share buybacks, which will basically offset the expected higher interest expense rest of year. You can see this bridge guidance math on page 11 of the earnings supplement.

Speaker #3: So that's a result of, flowing through, our Q1 EPS beat of $35. it's adding a rest-of-year, cash EPS raise of $35 also. That's coming from the expected $50 million in, rest-of-year higher revenue.

Speaker #3: we do expect to have a lower share count, from year to date, share buybacks, which will basically offset, the expected higher, interest expense, rest-of-year.

Speaker #3: You can see this bridge guidance math on page 11 of the earnings supplement. This higher full-year 2026 guidance implies, for the full year, 17% revenue growth.

Ron Clarke: This higher full year 2026 guidance implies for the full year 17% revenue growth, and 25% Cash EPS growth for the full year. Look, all the ingredients for a very good 2026 financial performance are holding. First off, you have the terrific start Q1 print. We've got very good sales and retention trends. We're continuing to enjoy a favorable macro environment and our two big acquisitions and investments, Alpha and AvidXchange, both performing well. We're in a good spot. Okay, let me make the turn now to our top five priorities, laid out in February, which really are unchanged. They are, 1, our portfolio, again, rotating our portfolio to Corporate Payments with the hope of having fewer, bigger businesses.

Speaker #3: And 25% cash EPS growth for the full year. So look, all the ingredients for a very good 2026 financial performance are holding. First off here, the terrific start—Q1 print.

Speaker #3: we've got very good, sales and retention trends. we're continuing to enjoy a favorable, macro environment. And our, and our two big, acquisitions and investments, Alpha, Alpha and Avid, both performing well.

Speaker #3: So, we're in a good spot. Okay, let me make the turn now to our top five priorities. laid out in February, which really are unchanged.

Speaker #3: So they are: one, our portfolio, again, rotating our portfolio to corporate payments, with the hope of having fewer, bigger businesses. two, USA sales, so increasing sales production, in the middle market, versus in the micro market.

Ron Clarke: Two, USA sales, so increasing sales production in the middle market versus in the micro market. Payables, widening monetization there beyond virtual cards, and launching a spend management business in Europe. Fourth, cross-border. Priority is to further develop our multicurrency account banking business, integrate the Alpha acquisition, and now add real-time blockchain rails to our global settlement network. Lastly, AI, like others, we are incorporating AI into most of our products. Secondly, working internally to redesign processes and get expense savings. What I'll do here is I'll just touch on progress just in a couple of areas, our portfolio and cross-border initiatives. On the portfolio front, we really are making good progress. You know, our newest acquisitions and investments there are working.

Speaker #3: Payables—widening monetization there beyond virtual cards, and launching a spend management business in Europe. Fourth, cross-border: priority is to further develop our multi-currency account banking business, integrate the Alpha acquisition, and now add real-time blockchain rails to our global settlement network.

Speaker #3: And the lastly, AI, like others, we are incorporating, AI into most of our products. and secondly, working internally, to redesign processes and, and get expense savings.

Speaker #3: So what I'll do here is I'll just touch on progress just in a couple of areas. our portfolio and, cross-border initiatives. So on the portfolio front, we really are making good progress.

Speaker #3: You know, our newest, acquisitions and investments there, are working. So Alpha grew organic revenue, 17% in Q1. that's excluding, the float compression. And Avid grew EBITDA 50%, in the quarter.

Ron Clarke: Alpha grew organic revenue 17% in Q1. That's excluding the flow compression. AvidXchange grew EBITDA 50% in the quarter. Really an outstanding performance and improvement there. Both off to a really good start. We're in the late innings with a non-core Vehicle Payments divestiture and actually teeing up a couple more businesses potentially for sale. On the other side, we're digging into a couple new Corporate Payments acquisition opportunities that do look quite interesting to us. Look, these actions are evidence that we're committed to further rotating the portfolio to Corporate Payments. On the cross-border front, you know, lots happening there. We are extending the geographies of our multicurrency accounts and seeing some real momentum from that.

Speaker #3: So really, an outstanding, performance and improvement there. So, both off to a really good start. We're in the late, innings with a non-core vehicle payments divestiture.

Speaker #3: And actually teeing up a couple more businesses, potentially for, for sale. And on the other side, we're digging into a couple, new corporate payment acquisition opportunities.

Speaker #3: The two look quite interesting to us. So, look, these actions are evidence that we're committed to further rotating the portfolio to corporate payments. On the cross-border front, you know, lots happening there.

Speaker #3: We are extending the geographies, of our multi-currency accounts. and seeing some real momentum from that. on the Alpha front, we've converted about 15% of Alpha clients to our tech platform.

Ron Clarke: On the Alpha front, we've converted about 15% of Alpha clients to our tech platform. A lot more to follow in June. We just signed JPMorgan and BVNK agreements to speed the addition of blockchain rails to our global settlement network. While working on all these initiatives, the core cross-border business rocking, you know, continuing to perform exceptionally well. Just wanted everyone to know we are laser focused on these top five priorities. Last up today, I do wanna share our thoughts on our midterm direction and where we're heading with the company.

Speaker #3: a lot more to follow in June. We just signed, JPMorgan and BVNK agreements, to exped the, addition of blockchain rails, to our global settlement network.

Speaker #3: And look, while working on all these initiatives, the, the core, cross-border business, rocking, you know, continuing to perform, exceptionally well. So, just wanted everyone to know we are laser, focused on these, these top five priorities.

Speaker #3: Okay, so last up today, I do want to share our thoughts, on our midterm direction and, where we're heading with the company. We did just return from our annual, offsite strategy session, where each year we, we get away, we debate the purpose of the company, our portfolio, the objectives, to decide if it makes sense to change course.

Ron Clarke: We did just return from our annual off-site strategy session, where each year we get away, we debate the purpose of the company, our portfolio, the objectives, to decide if it makes sense to change course. We always come back clearer than when we go into these sessions. Here are this year's conclusions. Purpose. On the purpose front, we are staying put. We'll continue to have a single purpose here at Corpay, which is to help businesses, you know, better manage and control expenses. You know, the tagline, Corpay for every way your business moves money. You will see our new Corpay brand campaign hammer home this simple theme. In fact, I think one of our newest introductory ads is now on our website.

Speaker #3: And we always, come back clearer than, than when we, than when we go into these sessions. So, here are this year's conclusions. So purpose, so on the purpose front, we, we are staying put.

Speaker #3: We'll continue to have, single purpose, here at CORPAY, which is to help businesses, you know, better manage and control expenses. You know, the tagline, CORPAY for, every way your business moves money.

Speaker #3: You will see our new Corpay brand campaign hammer home this simple theme. And in fact, I think one of our newest introductory ads is now on our website.

Ron Clarke: On the portfolio front, again, we'll continue to rotate to Corporate Payments and to fewer, bigger businesses. You will see us divest more non-core, TAM-constrained businesses, and you will see us acquire more Corporate Payment assets. We're heading towards building really 3 global businesses over time. The first wrapper really is employee payments. We've got a set of spend management solutions that control really all distributed employee spend, whether fuel or T&E or just one-off discretionary purchases. Those programs all about preventing the misuse of company monies. We'll have a big B2B payments business, AP and supplier solutions that automate the workflow really through the entire centralized procurement invoice and payment chain. The goal there is to de-risk B2B money movement. Third big business, cross-border payments.

Speaker #3: on the portfolio front, again, we'll continue to rotate two corporate payments, and to fewer bigger businesses. You will see us divest more non-core, TAM-constrained businesses, and you will see us acquire, more corporate payment assets.

Speaker #3: So we're heading towards building really three global businesses over time. So the first wrapper really is employee payments. So, we—we've got a set of spend management solutions that control really all distributed employee spend, whether fuel or T&E or just one-off discretionary purchases.

Speaker #3: So, those programs all about, preventing the misuse of company monies. we'll have a big B2B, payments business, AP and supplier solutions that automate, the workflow, really through the entire, centralized procurement invoice, and payment chain.

Speaker #3: The goal there is to de-risk, B2B money movement. And then third big business, cross-border payments. We'll have, you know, FX payments, risk management solutions, and foreign bank accounts.

Ron Clarke: We'll have, you know, FX payments, risk management solutions, and foreign bank accounts really for middle-market companies all over the world. Our goal there is to make global commerce easier. Post this midterm period, portfolio remix, we'll really end up in these three main global business categories, each of which have like massive TAMs, and again, all centered around the same common purpose of helping businesses better manage and control their spending. On the objective front, really our midterm objectives remain intact. Most important is to grow revenue organically 10% and remain a top quartile grower. Our business model and operating leverage do enable us to grow earnings much faster, you know, think 15%+. And our goal is to double Cash EPS to $50 a share during the forecast period.

Speaker #3: Really for middle market companies, all over the world, goal there is to make global, commerce easier. So, so post this, midterm period, portfolio remix, we'll really end up in these three main global business categories.

Speaker #3: Each of which have, like, massive, TAMs, and again, all centered around the same, common purpose of helping, businesses better manage, and control their spending.

Speaker #3: on the objective front, really our midterm objectives really, remain intact. most important is to grow revenue organically 10% and remain a top quartile grower.

Speaker #3: our business model and operating leverage do enable us to grow earnings much faster, you know, think 15% plus. and our goal is to double cash EPS to $50 a share during the forecast period.

Speaker #3: We do expect to generate about $15 billion in cash during the forecast period. That's from a combination of annual free cash flow and increased borrowing capacity as our earnings grow.

Ron Clarke: We do expect to generate about $15 billion in cash during the forecast period. That's from a combo of annual free cash flow and increased borrowing capacity as our earnings grow. We may buy back, you know, more than half the company at this current valuation. Net, net, we are very clear and super excited about the way forward and where the company is headed. We'll build a simpler, more attractive, more consistent, high-growth company that we believe will outperform most. In conclusion, we're delighted with the start to the year. We are raising full-year 2026 revenue and earnings guidance, high confidence in that. We're working the same five priorities very hard.

Speaker #3: We may buy back, you know, more than half the company, at this current valuation. So look, net, net, net, we are very clear and super excited, about the way forward and where the company is headed.

Speaker #3: we'll build a simpler, more attractive, more consistent, high-growth company that, we believe will outperform most. So look, in conclusion, we're delighted with the start to the year.

Speaker #3: We are raising full year 26 revenue and earnings guidance, high confidence in, in that. We're working the same five priorities, very hard. and we've reaffirmed the midterm, purpose, portfolio, and objectives for the company, really leading us to a super exciting place.

Ron Clarke: And we've reaffirmed the midterm purpose, portfolio, and objectives for the company, really leading us to a super exciting place. With that, let me turn the call back over to Peter to provide some additional detail on the quarter, and our 2026 outlook. Peter?

Speaker #3: So with that, let me turn the call back over to Peter, to provide some additional detail on the quarter, and our 26 outlook. Peter.

Speaker #3: Thanks, Rohan. And good afternoon, everyone. The headline for the quarter is significant overperformance, with 25% top-line and 29% bottom-line growth, and our fourth consecutive quarter of 11% organic revenue growth.

Peter Walker: Thanks, Ron. Good afternoon, everyone. The headline for the quarter is significant overperformance with 25% top line and 29% bottom line growth and our fourth consecutive quarter of 11% organic revenue growth. Let's turn to our segment performance and the underlying drivers of our organic revenue growth. Corporate Payments delivered 16% organic growth for the quarter, despite a 200 basis point drag from float revenue compression driven by lower interest rates. The organic revenue growth exceeded our expectations, driven by strong performance in cross-border and payables. Overall, Corporate Payments performance was driven by growth in spend volumes, which increased organically 43% to $82 billion. Cross-border continued to deliver strong sales and revenue performance in Q1. Overall, currency volatility conditions were a helpful backdrop as it created the opportunity for our sales team to highlight the value of our offerings.

Speaker #3: Let's turn to our segment performance and the underlying drivers of our organic revenue growth. Corporate payments delivered 16% organic growth for the quarter despite a 200 basis point drag from float revenue compression driven by lower interest rates.

Speaker #3: The organic revenue growth exceeded our expectations driven by strong performance in cross-border and payables. Overall, corporate payments performance was driven by growth in spend volumes, which increased organically 43% to 82 billion dollars.

Speaker #3: Cross-border continued to deliver strong sales and revenue performance in Q1. Overall, currency volatility conditions were a helpful backdrop as it created the opportunity for our sales team to highlight the value of our offerings.

Speaker #3: Additionally, alpha integration efforts are progressing well. Approximately 15% of alpha corporate volume is already been migrated to our global tech platform with the next wave of migration planned for Q2.

Peter Walker: Additionally, Alpha integration efforts are progressing well. Approximately 15% of Alpha corporate volume has already been migrated to our Global Tech platform, with the next wave of migration planned for Q2. The payables business continued to perform well, driven by volume growth and especially strong sales performance in Q1. This sets us up well for the rest of the year. We're also pleased with the progress of AvidXchange, our minority investment, which is reflected as an equity investment in our financials. Sales are up over 20% versus Q1 2025. Volumes and revenue are also up, and EBITDA grew 50% over Q1 2025. Vehicle Payments organic growth was 10%, driven by solid results across all three geographies. Higher fuel prices benefited this segment, driving a portion of the macro beat in the quarter.

Speaker #3: The payables business continued to perform well driven by volume growth and especially strong sales performance in Q1. This sets us up well for the rest of the year.

Speaker #3: We're also pleased with the progress of Avid, our minority investment, which is reflected as an equity investment in our financials. Sales are up over 20% versus Q1 2025.

Speaker #3: Volumes and revenue are also up, and EBITDA grew 50% over Q1 2025. Vehicle payments organic growth was 10%, driven by solid results across all three geographies.

Speaker #3: Higher fuel prices benefited this segment, driving a portion of the macro beat in the quarter. Additionally, we closed the sale of pay-by-phone and have taken 75 million dollars out of our rest-of-year guide as a result.

Peter Walker: Additionally, we closed the sale of PayByPhone and have taken $75 million out of our rest of year guide as a result. As a reminder, the sale has no material impact on our adjusted EPS as we bought back shares with sale proceeds. Lodging came in better than we expected, with sequential organic revenue growth improvement of 7% versus Q4 2025. We saw better performance in all areas of the business, raising our confidence in the 2026 Lodging growth acceleration plan for the H2 of the year. In summary, we delivered 11% organic growth in Q1, a 200 basis point beat to what we expected, and at the high end of our midterm range. Our Corporate Payments and Vehicle Payments segments totaled 85% of our Q1 2026 revenue and delivered a combined organic growth rate of 12%.

Speaker #3: As a reminder, the sale is no material impact on our adjusted EPS as we bought back shares with sale proceeds. Lodging came in better than we expected, with sequential organic revenue growth improvement of 7% versus Q4 2025.

Speaker #3: We saw better performance in all areas of the business, raising our confidence in the 2026 lodging growth acceleration plan for the second half of the year.

Speaker #3: In summary, we delivered 11% organic growth in Q1, a 200 basis point beat to what we expected, and at the high end of our midterm range.

Speaker #3: Our corporate payments and vehicle payments segments totaled 85% of our Q1 2026 revenue and delivered a combined organic growth rate of 12%. Sales growth of 24% and retention rates over 93% in Q1 remain impressive.

Peter Walker: Sales growth of 24% and retention rates over 93% in Q1 remain impressive. As such, we are encouraged by our strong Q1, and it strengthens our conviction on achieving our increased full-year guidance. Now, looking further down the income statement. Operating costs, excluding the impact of FX, M&A, and stock compensation, increased 10%. The increase was primarily due to higher transaction volumes and higher bad debt. Adjusted EBITDA margin of 54.6% was slightly down over the prior year, primarily due to acquisitions. Our adjusted effective tax rate for the quarter was 26.8%. The year-over-year increase in the rate was due to the favorable impact of employee stock options on the tax rate last year. On to the balance sheet.

Speaker #3: As such, we are encouraged by our strong Q1 and its strengthens our conviction on achieving our increased full-year guidance. Now, looking further down the income statement, operating costs excluding the impact of FX, M&A, and stock compensation increased 10%.

Speaker #3: The increase was primarily due to higher transaction volumes and higher bad debt. Adjusted EBITA margin of 54.6% was slightly down over the prior year primarily due to acquisitions.

Speaker #3: Our adjusted effective tax rate for the quarter was 26.8%. The year-over-year increase in the rate was due to the favorable impact of employee stock options on the tax rate last year.

Speaker #3: Onto the balance sheet. We ended the quarter in excellent shape, with a leverage ratio of 2.7 times and $1.4 billion of available borrowing capacity on our revolver.

Peter Walker: We ended the quarter in excellent shape with a leverage ratio of 2.7 times and $1.4 billion of available borrowing capacity on our revolver. In the quarter, we spent $786 million repurchasing 2.4 million shares. This includes the use of $450 million of PayByPhone sale proceeds as we essentially pre-purchased Corpay shares in advance of receiving the proceeds. As of Q1, we have $1.8 billion authorized for share repurchases as the board approved another $1 billion at the most recent board meeting. We have just received commitments to refinance our revolver and term loan A. The commitments will upsize our credit facility by over $1 billion versus existing levels. This refinancing will extend the maturity of the facility for 5 years and will reduce the interest rate by 10 basis points.

Speaker #3: In the quarter, we spent $786 million repurchasing 2.4 million shares. This includes the use of $450 million of pay-by-phone sale proceeds, as we essentially pre-purchased CORPAY shares in advance of receiving the proceeds.

Speaker #3: As of Q1, we have $1.8 billion authorized for share repurchases, as the board approved another $1 billion in the most recent board meeting. We have just received commitments to refinance our revolver and term loan A.

Speaker #3: The commitments will upsize our credit facility by over a billion dollars versus existing levels. This refinancing will extend the maturity of the facility for five years and will reduce the interest rate by 10 basis points.

Speaker #3: We plan to use a billion dollars of proceeds from the new facility to pay down a portion of our term loan B expiring in April 2028.

Peter Walker: We plan to use $1 billion of proceeds from the new facility to pay down a portion of our term loan B expiring in April 2028. This will result in overall lower interest expense going forward. We've not reflected this in our guidance as the deal is expected to close and fund later this month. As always, we will continue to pursue M&A opportunities and to buy back shares, particularly at this valuation, while maintaining leverage within our target range. Let's cover our segment geography changes. We've made minor reporting segment geography changes to better align our reporting with how we run the business. You can find the adjusted historical information in the earnings supplement to help you update your models. Now let me share some additional information on our updated 2026 full year and Q2 outlook.

Speaker #3: This will result in overall lower interest expense going forward. We've not reflected this in our guidance as the deal is expected to close and fund later this month.

Speaker #3: As always, we will continue to pursue M&A opportunities and to buy back shares, particularly at this valuation, while maintaining leverage within our target range.

Speaker #3: Next, let's cover our segment geography changes. We've made minor reporting segment geography changes to better align our reporting with how we run the business.

Speaker #3: You can find the adjusted historical information in the earnings supplement to help you update your models. Now, let me share some additional information on our updated 2026 full-year and Q2 outlook.

Speaker #3: Our updated 2026 revenue guidance is 5.29 billion at the midpoint, growing 17% year over year. This assumes 10% organic revenue growth at the midpoint.

Peter Walker: Our updated 2026 revenue guidance is $5.29 billion at the midpoint, growing 17% year over year. This assumes 10% organic revenue growth at the midpoint. Our updated outlook flows through our Q1 beat of $50 million, increases the remaining year's revenue by $50 million, driven by a combination of macro favorability and business fundamentals, and is offset by $75 million from the sale of PayByPhone. Our updated rest of year guidance for adjusted EPS is $26.70 per share at the midpoint, growing 25% year over year. Our Q2 revenue guidance is $1.295 billion at the midpoint, growing 18% year over year. We expect Q2 organic revenue growth in the range of 9% to 11%. We expect adjusted EPS of $6.55 at the midpoint, growing 28% year over year.

Peter Walker: Our updated 2026 revenue guidance is $5.29 billion at the midpoint, growing 17% year-over-year. This assumes 10% organic revenue growth at the midpoint. Our updated outlook flows through our Q1 beat of $50 million, increases the remaining year's revenue by $50 million, driven by a combination of macro favorability and business fundamentals, and is offset by $75 million from the sale of PayByPhone. Our updated rest of year guidance for adjusted EPS is $26.70 per share at the midpoint, growing 25% year-over-year. Our Q2 revenue guidance is $1.295 billion at the midpoint, growing 18% year-over-year. We expect Q2 organic revenue growth in the range of 9% to 11%. We expect adjusted EPS of $6.55 at the midpoint, growing 28% year-over-year.

Speaker #3: Our updated outlook flows through our Q1 beat of $50 million, increases the remaining year's revenue by $50 million, driven by a combination of macro favorability of business fundamentals, and is offset by $75 million from the sale of PayByPhone.

Speaker #3: Our updated rest-of-year guidance for adjusted EPS is 26.70 per share at the midpoint, growing 25% year over year. Our Q2 revenue guidance is 1.295 billion at the midpoint, growing 18% year over year.

Speaker #3: We expect Q2 organic revenue growth in the range of 9 to 11 percent. We expect adjusted EPS of $6.55 at the midpoint, growing 28% year over year.

Speaker #3: The complete details regarding our revised full-year and Q2 outlook can be found in our press release and earnings supplement. So, operator, please open up the line for questions.

Peter Walker: The complete details regarding our revised full year and Q2 outlook can be found in our press release and earnings supplement. Operator, please open up the line for questions.

Speaker #1: Thank you. As a reminder, at this time, if you would like to ask a question, it is the star and one on your telephone keypad.

Operator 2: Thank you. As a reminder at this time, if you would like to ask a question, it is the star and 1 on your telephone keypad. To leave the queue at any time, press star 2. Once again, that is the star and 1 to ask a question. We do ask that you limit yourself to 1 question and 1 follow-up. We will take our first question from the line of Sanjay Sakhrani with KBW. Please go ahead.

Operator: Thank you. As a reminder at this time, if you would like to ask a question, it is the star and 1 on your telephone keypad. To leave the queue at any time, press star 2. Once again, that is the star and 1 to ask a question. We do ask that you limit yourself to 1 question and 1 follow-up. We will take our first question from the line of Sanjay Sakhrani with KBW. Please go ahead.

Speaker #1: To leave the queue at any time, press *2. Once again, that is *1 to ask a question. We do ask that you limit yourself to one question and one follow-up.

Speaker #1: We'll take our first question from the line of Sanjay Sakrani with KBW. Please go ahead.

Speaker #2: Thank you, really strong quarter here. I guess my first question is, it seems like the underlying trends are really strong, and then you've got sort of the macro, help as well.

Sanjay Sakhrani: Thank you. Really strong quarter here. I guess my first question is, it seems like the underlying trends are really strong, and then you've got sort of the macro help as well. When we sort of impute everything, it would seem like the underlying trends would suggest even more upside as we move through the year, unless there's a give back. Maybe Peter, you could just talk a little bit about sort of the puts and takes factored in for the remainder of the year.

Speaker #2: And when we sort of impute everything, it would seem like the underlying trends would suggest even more upside as we move through the year, unless there's a give-back.

Speaker #2: Maybe, maybe, Peter, you could just talk a little bit about sort of the puts and takes factored in, for the remainder of the year?

Speaker #3: Yeah. Hey, Sanjay. thanks for the question. So when we look at Q1, we really got out of the box stronger than we expected, and obviously delivered the 11% organic growth.

Peter Walker: Yeah. Hey, Sanjay, thanks for the question. When we look at Q1, we really got out of the blocks stronger than we expected and obviously delivered the 11% organic growth. We were growing over 9%, so relatively easy comp. When we look out at the rest of the year, we're growing over 11% comp for all 3 quarters. That's what lands us at the full year 10% and gets us comfortable with that. In terms of the raise for the back half of the year, that is a combination of continued business performance and macro. When we think about how that splits out, call it $25 million is in Q2 with the remaining $25 million in the back half. Hey, Sanjay, it's Ron. Just wanna add to Peter's.

Speaker #3: And we were growing over 9%, so relatively easy comp. When we look out of the rest of the year, we're growing over 11% comp for all three quarters.

Speaker #3: So that's what lands us at the full-year 10% and gets us comfortable with that. In terms of the raise for the back half of the year, that is a combination of continued business performance and macro.

Speaker #3: And when we think about how that splits out, call it 25 million as in Q2, with the remaining 25 million in the back half.

Speaker #4: Hey, hey, Sanjay, it's Ron. J-just want to add that Peters, remember in our business, we take the, the absolute revenue up about 100 million.

Ron Clarke: Hey, Sanjay, it's Ron. Just wanna add to Peter's. 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.

Ron Clarke: 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.

Speaker #4: From Q1 to Q4, so there's a climb already built into the guide to start.

Speaker #2: Got it. Got it. All right. Very helpful. And then Ron, just a question for you, you know, you talked about more divestiture opportunities, and then also acquisition opportunities.

Sanjay Sakhrani: Got it. Got it. All right. Very helpful. Ron, just a question for you. You know, you talked about more divestiture opportunities and also acquisition opportunities. Maybe you could parse apart sort of sizing, timing, you know, in sort of the core businesses going forward. It seems like Lodging and gift weren't necessarily part of it. Are there opportunities there? Maybe you could just elaborate on that. Thank you.

Speaker #2: So maybe, maybe you could parse apart sort of sizing, timing, you know, and, and sort of, the core businesses going forward. It seems like lodging and gift weren't necessarily part of it.

Speaker #2: Are there opportunities there? Maybe you could just elaborate on that. Thank you.

Speaker #4: Yeah, Sanjay. I don't want to provide too many details and tip off too many people. I will say, one, that we're super late-innings on a pretty meaningful transaction, a divestiture.

Ron Clarke: Yeah, Sanjay, I don't want to provide too many details and tip off too many people. I will say, 1, that we're super late innings on a pretty meaningful transaction, a divestiture, that'll either happen or not happen, maybe get signed or not, in this quarter we're sitting in. That's number 1. Number 2, we have two or three additional kind of non-core things that we're teasing out

Speaker #4: And so that'll either happen or not happen. We'll either get signed or not, in this quarter. We're sitting in that's number one. Number two, we have two or three additional kind of non-core things that we're teasing out, trying to get a sense of whether the, the take them fully out to the market, or not.

Ron Clarke: Trying to get a sense of whether to take them fully out to the market, or not. On the other side, like always, we're digging into a couple new corporate payment assets. The message is more will happen. Exactly when and stuff, you know, TBD, but by the time we get to Christmas, we will have likely sold additional assets beyond the one here in Q2, and likely be looking at buying some additional things. We are hard at work on this rotation.

Speaker #4: and then on the other side, like, like always, we're digging into a couple, new corporate payment assets. So the, the message is more will happen.

Speaker #4: exactly when and stuff, you know, TBD, but, but by the time we get to Christmas, we will have likely sold additional assets beyond the one here in Q2 and likely, be looking at buying some additional things.

Speaker #4: So, we are hard at work on this rotation.

Speaker #1: Thank you. And we'll take our next question. From Tingjin with Tingjin Hung with JGP Morgan. Please go ahead.

Operator 2: Thank you. We'll take our next question from Tien-Tsin Huang with JPMorgan. Please go ahead.

Operator: Thank you. We'll take our next question from Tien-Tsin Huang with JPMorgan. Please go ahead.

Speaker #5: Hey, thanks a lot. Great results. maybe ask some of the what Sanjay asked. With that, you've given away the trade secrets here, Ron. Just as you're rotating to corporate payments and, and it's obviously doing really, really well, can you just instead of the details, what capabilities or, or TAM characteristics are, are you looking to acquire?

Tien-Tsin Huang: Hey, thanks a lot. Great results. Maybe ask similar to what Sanjay asked, without you giving away the trade secrets here, Ron. Just as you're rotating to Corporate Payments, and it's obviously doing really, really well, can you just, instead of the details, what capabilities or TAM characteristics are you looking to acquire? I'm guessing you're probably not alone in looking at these assets, are valuations reasonable when you compare it to buying back your own stock? Which you said yourself you'd buy back more than half the company at this valuation. Just trying to understand the balancing act there.

Tien-tsin Huang: Hey, thanks a lot. Great results. Maybe ask similar to what Sanjay asked, without you giving away the trade secrets here, Ron. Just as you're rotating to Corporate Payments, and it's obviously doing really, really well, can you just, instead of the details, what capabilities or TAM characteristics are you looking to acquire? I'm guessing you're probably not alone in looking at these assets, are valuations reasonable when you compare it to buying back your own stock? Which you said yourself you'd buy back more than half the company at this valuation. Just trying to understand the balancing act there.

Speaker #5: And I'm guessing you're probably not alone in looking at these assets. So are, are valuations reasonable when you compare it to buying back your own stock, which you say to yourself you'd buy back more than half the company at this valuation?

Speaker #5: So just trying to understand the balancing act there.

Speaker #4: Yeah. Hey, Tingjin. Good, good to hear from you. So I, I don't think we need much, in terms of capabilities. You know, we have gone on, a bit of a buying spree, including that foreign bank account.

Ron Clarke: Yeah. Hey, Tien-Tsin. Good to hear from you. I don't think we need much in terms of capabilities. You know, we have gone on a bit of a buying spree, including that foreign bank account capability, right, we got from Alpha. I'd say it's mostly some geographic things. There's an asset in the geography that we'd like to heavy up on. There's another asset that we like some of the verticals, so it's in a completely similar business, but has positions in some different verticals. We have mostly what we need. I'd say it's more now bulking up. As you know, the closer these acquisitions are to what we do, the bigger the synergies. We always look, as you know, at year 1 accretion.

Speaker #4: Capability, right? We got from, we got from Alpha. So I'd say it's mostly, some geographic things. There's an asset in the geography that we'd like to, heavy up on.

Speaker #4: there's another asset that we'd like some of the verticals. So it's in a completely similar business, but has positions in some different verticals. And so, we have mostly what we need, I'd say it's more now bulking up.

Speaker #4: And as you know, the closer these acquisitions are to what we do, the, the, the bigger the synergies. So we always look, as you know, at year one, a, accretion.

Speaker #4: And so if the thing is super in close to what we do, we, we can make the numbers work. So I would say that, you know, you should look for us to, to buy additional assets this year.

Ron Clarke: If the thing is super in-close to what we do, we can make the numbers work. I would say that, you know, you should look for us to buy additional assets this year.

Speaker #5: In that way. Okay. Yeah. So, tapping up on geos and verticals as an example. Okay. No, that's great, Ron, to hear. We trust you on that.

Tien-Tsin Huang: In that way. Okay. Topping up on geos and verticals, as an example. Okay. No, that's great, Ron, to hear. We trust you on that. On my follow-up, maybe staying with cross-border, you said demand there is really good. You gave us the update on the Alpha migrations. You signed JPM and BVNK on the blockchain rail side. What's next, I suppose? What are you trying to track to gauge success as you're, you know, putting those agreements to work again on JPM and the BVNK side? Also on Alpha, is it more just migrations? Are those the milestones we should be watching for?

Tien-tsin Huang: In that way. Okay. Topping up on geos and verticals, as an example. Okay. No, that's great, Ron, to hear. We trust you on that. On my follow-up, maybe staying with cross-border, you said demand there is really good. You gave us the update on the Alpha migrations. You signed JPM and BVNK on the blockchain rail side. What's next, I suppose? What are you trying to track to gauge success as you're, you know, putting those agreements to work again on JPM and the BVNK side? Also on Alpha, is it more just migrations? Are those the milestones we should be watching for?

Speaker #5: So on the my follow-up, maybe staying with, with CrossBorder, you said demand there is really good. You gave us the update on the, the Alpha migrations.

Speaker #5: You signed JPM and, and BBNK. on the blockchain rails side. So what, what's next, I suppose? What, what, what should we be asking you or what are you trying to track to, to gauge success a-as you're, you know, putting those, agreements to work?

Speaker #5: Again, on JPM and the and the BBNK side. And also on Alpha. Is it more just migrations? Is that are those the milestones we should be watching for?

Speaker #4: Yeah. Well, first thing I'd say, hey, tune into to the CrossBorder deep dive. I think this gym is next. Next Wednesday, Tingjin. So we're gonna you know, try to spend an hour on the business and kind of peel it back and tell people why it's a it's a pretty good thing.

Ron Clarke: Yeah. Well, first thing I'd say, hey, tune in to the cross-border deep dive. I think this, Jim, is next.

Jim Eglseder: Wednesday

Ron Clarke: next Wednesday, Tien-Tsin Huang. We're gonna, you know, try to spend an hour on the business and kind of peel it back and tell people why it's a pretty good thing. I think the biggest headline for everybody is, yeah, we have these new things, these new initiatives, right? Get Alpha across, which we're doing, get this bank account, you know, thing lifted up, get blockchain super functional and stuff. 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. When I say way ahead, you know, of expectations, the thing, like in every way for us, is just working, right. The numbers, I don't know, I think it's a billion five ballpark for that business in 2026.

Speaker #4: But I think the, the biggest headline for everybody is, yeah, we have these new things, these new initiatives, right? Get Alpha, Cross, which we're doing.

Speaker #4: Get this bank account, you know, thing lifted up. Get blockchain super functional and stuff. The key message I want people to take is the thing is freaking rocking.

Speaker #4: The base business is sales. I think we're 40% or something up, in Q1. And so it, it is just when I say way ahead, you know, of, of expectations, the thing like in every way for us is just working, right?

Speaker #4: The number I don't think it's a billion five ballpark for that business in 2026 is additional assets obviously that we, we know of that we, we're looking at clearly in the space.

Ron Clarke: There's additional assets, obviously, that we know of, that we're looking at clearly in the space. I think it's really just getting those things done, right? It's getting the bank account to accelerate. It's getting Alpha, you know, and shuttering their platform. It's teasing out whether our clients really want to use blockchain. I mean, I think you guys, the JPM guys personally are onto the right thing. The Ron Clarke bet is moving, tokenizing fiat currencies and moving it over blockchain outside of the banking hours, there's no, you know, off-boarding of the thing. I personally think that is a winner, that our clients are going to really love that rail as an added rail versus the more difficult, hey, depositing money with no interest, getting stablecoins, running it down the blockchain, then reconverting it again.

Speaker #4: And so I think it's really just getting those things done, right? It's getting the bank account to accelerate. It's getting Alpha, you know, and shuttering their platform.

Speaker #4: It's teasing out whether our clients really want to use blockchain. I mean, I think you guys, the, the JPM guys personally are onto the right thing.

Speaker #4: The Ron Clarke bet is moving tokenizing fiat currencies and moving it over blockchain outside of the banking hours. And so there's no, you know, offboarding of the thing.

Speaker #4: I personally think that is a winner, that our clients are gonna really love that rail. As an added rail versus the more difficult, hey, depositing money with no interest, getting stablecoins, running it down the blockchain, then reconverting it again.

Speaker #4: And so the approach that, that your particular bank is taking, we think for B2B is a is a super good fit. So we're really I'm personally really excited about that idea.

Ron Clarke: The approach that your particular bank is taking, we think for B2B is a super good fit. I'm personally really excited about that idea.

Speaker #1: Thank you. And we'll go next to Ramsey LSL with Cantor Fitzgerald. Please go ahead.

Operator 2: Thank you. We'll go next to Ramsey El-Assal with Cantor Fitzgerald. Please go ahead.

Operator: Thank you. We'll go next to Ramsey El-Assal with Cantor Fitzgerald. Please go ahead.

Speaker #6: Hi, guys. Another terrific quarter. I wanted to ask about the USA sales and focusing on the middle market. I was just curious, is that where you see the most opportunity right now?

Ramsey El-Assal: Hi, guys. Another terrific quarter. I wanted to ask about the US sales and focusing on the middle market. I was just curious, is that where you see the most opportunity right now? Is that the more beneficial market segment? I guess why is that the best place to hunt right now?

Speaker #6: Is that the more beneficial market segment? And I guess why, why is that the best place to hunt right now?

Speaker #4: Yeah. Hey, hey, Ramsey. It's Ron. It's a good question. So I think the first answer to that is we just liked the micro market, right?

Ron Clarke: Yeah. Hey, Ramsey. It's Ron. It's a good question. I think the first answer to that is we just liked the micro market, right? I don't wanna go back to that saga, that was a super unpleasant pivot, right? A couple of years ago, we saw credit losses, we saw client losses, we saw very short lives of some of the new accounts that came in. The conclusion was way investing in digital and bulking up in micro is not the best way to create a durable business. 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.

Speaker #4: I don't want to go back to that saga, but that was a super unpleasant pivot, right, a couple of years ago. We saw credit losses, we saw client losses and stuff.

Speaker #4: we saw a very short lives of some of the new accounts that came in. And so the conclusion was way investing in digital and bulking up in micro is not, not the best way to create a durable business.

Speaker #4: 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.

Speaker #4: They last longer. But the other thing which is important to us is it, it suddenly takes the, the fleet business and makes it more part of our corporate payments business.

Ron Clarke: The other thing which is important to us is it suddenly takes the fleet business and makes it more a part of our Corporate Payments business. What I mean by that is when we serve a little company, take, like, a 10-person plumbing company, all they need is a fleet car. They have no other spend. They really don't do anything else except send, you know, 10 guys out and about. When you go to a middle-market company, let's say 300 to 400 million in revenue, and it's got 50 fleet people, it's got other stuff. It's got a supply chain. It might have manufacturing. It's got white-collar people. All of a sudden, the products that we have that combine our fleet controls with our kind of commercial card spend management stuff, it's the same.

Speaker #4: And what I mean by that is when, when we serve a little company, take like a 10-person plumbing company, all they need is a fleet car.

Speaker #4: They have no other spend. They really don't do anything else except 10, 10, you know, 10 guys out and about. When you go to a middle market company, let's say three, four hundred million in revenue, and it's got 50 fleet people, it's got other stuff.

Speaker #4: It's got a supply chain. It might have manufacturing. It's got white-collar people. So all of a sudden, the products that we have that combine our fleet controls with our kind of commercial card spend management stuff, it's the same.

Speaker #4: And so we can take the same product that we bring to kind of non-fleet intensive businesses to the fleet intensive businesses. And so no longer do we have kind of like specialized fleet products.

Ron Clarke: We can take the same product that we bring to kind of non-fleet intensive businesses to the fleet intensive businesses. No longer do we have kind of, like, specialized fleet products. They're just a spend category in our bigger platform. I really like that, the idea of fleet just becoming a portion really of the overall commercial card business that we're in because we've moved up market basically from the super small accounts. The million-dollar question is the new selling approach and partner approach we're taking gonna add enough business? That's what we're working on. We've increased the investment there. We've got a lot of stuff in the pipeline. Reporting out to you guys the progress of new business in that segment is the key to growth going forward.

Speaker #4: They're just a spend category in, in our bigger platform. And so we, we really I really like that, the, the idea of fleet just becoming a portion really of, of the overall commercial card business that we're in because we've, we've moved up market basically from the, the super small accounts.

Speaker #4: So the million-dollar question is, is the new selling approach and partner approach we're taking gonna add enough business? That's what we're working on. We've increased the investment there.

Speaker #4: We've got a lot of stuff in the pipeline. So we're porting out to you guys the progress of new business in that segment is the key to growth going forward.

Ramsey El-Assal: Super interesting. A quick follow-up. On Lodging, obviously you saw some pretty great re-acceleration in that business this quarter. Maybe just talk about the underlying drivers there, the underlying business momentum if you're feeling like that trend is now headed in the right direction?

Speaker #6: Super interesting. a, a quick follow-up. O-on lodging, obviously, saw some pretty great, reacceleration in that business this quarter. Maybe just talk about the underlying drivers there, the underlying business momentum, if, if you you're feeling like that, that trend is, is now headed in the right direction.

Ron Clarke: It is. I'm gonna get off characterizing it as a problem child because not only did it race ahead of what we thought or I thought it could do in Q1, I think in the second half the thing will be the right side of 5%, somewhere in the mid to high single-digit growth. The reason I guess is pretty simple. Again, the couple of year ago kind of meltdown from the IT thing that took a big part of our base away and bled us over 6 to 12 months, was a huge Ramsey pothole to fill, you know, with business. Well, that thing now has way stabilized. In fact, I'm looking at our Q1 same-store sales report, it was +6 for Lodging. +6.

Speaker #4: It, it is. And I'm and I'm gonna get off, characterizing it as, as a problem child because not only did it, race ahead of what we thought I thought it could do in Q1, I think in the second half, the thing will be the, the right side of 5%, somewhere in the, the, the in the mid to high single-digit growth.

Speaker #4: And the reason, I guess, is pretty simple. Again, a couple of years ago, the kind of meltdown from the IT thing, that took a big part of our base away and bled us over 6 to 12 months, was the huge Ramsey pothole to fill, you know, with business.

Speaker #4: Well, that thing now has way stabilized. In fact, I'm looking at our Q1 same-store sales report, and it was plus 6 for lodging, plus 6.

Speaker #4: That number was, like, negative—I have it in front of me—like negative 18%. You know, eight quarters ago. So that's the first giant thing, is that the base is positive.

Ron Clarke: That number was, like, negative It's not even in front of me. Like, -18%, you know, 8 quarters ago. That's the first giant thing is that the base is positive, anything we add obviously creates the growth rate of the business. I would say that given there's a little bit of lead time to install business, implement business there, that there's been enough in the pipeline, we're pretty confident you'll see that thing on the positive side in the H2. Hallelujah to Lodging. That'll help our overall growth rate obviously for those who could do math, from consolidating, you know, -6% to, let's say, consolidating in the H2 +6% or 7%.

Speaker #4: So then anything we add, obviously, creates the growth rate of the business. So I would say that, given there's a little bit of lead time to install business, implement business there, that there's been enough in the pipeline—we're pretty confident you'll see that thing on the positive side in the second half.

Speaker #4: So hallelujah to lodging. And that'll help our overall growth rate, obviously, for those that could do math, from consolidating, you know, minus 6%, to, let's say, consolidating in the second half, plus 6 or 7%.

Speaker #1: Thank you. And we'll go next to Darren Peller with Wolf Research. Please go ahead. Darren, your line is open.

Operator 2: Thank you. We'll go next to Darrin Peller with Wolfe Research. Please go ahead. Darren, your line is open.

Operator: Thank you. We'll go next to Darrin Peller with Wolfe Research. Please go ahead. Darren, your line is open.

Speaker #7: Okay, sorry about that, guys. I was muted—excuse me. Maybe you could just touch on, A, the rate of growth of the US fleet; anything that we—like, what would we have to see for the fleet market to actually see same-store sales break out of the 0% to 1% type range we've been seeing?

Darrin Peller: Okay. Sorry about that, guys. I was muted. Excuse me, maybe you could just touch on the rate of growth of the US fleet business for a moment. Is there anything that we Like, what would we have to see for the fleet market to actually see same-store sales break out of the 0% to 1% type range we've been seeing? I'm not sure if there's anything macro driven you'd expect, but, I'm just kind of curious on same-store sales.

Speaker #7: I'm not sure if there's anything macro-driven you'd expect, but I'm just kind of curious on same-store sales.

Speaker #4: Yeah. Hey, Darren. It's Ron. So a little positive news—the US fleet business was plus 1, in terms of same-store sales in the base, which is obviously, you know, it was minus 2 in Q1 of '25.

Ron Clarke: Yeah. Hey, Darrin, it's Ron. A little positive news. The US fleet business was +1 in terms of same-store sales in the base, which is obviously, you know, it was -2 in Q1 of 2025, kind of that's a 3-point swing helping it. Look, I kind of answered the question earlier. The growth of that business now is just all turning on this new sales model, the middle market. If we sell a lot there, it'll grow. If we don't, you know, it won't. I mean, frankly, which you as Mr. Corporate Payments Advocate, the thing is 10% now of our company, ballpark.

Speaker #4: So, kind of, that's a 3-point swing helping it. But I kind of answered the question earlier. The growth in that business now is just all turning on this new sales model, the middle market.

Speaker #4: If we sell a lot there, it'll grow. If we don't, you know, it won't. I mean, frankly, in which— which you, as Mr. Corporate Payments advocate— the thing is 10% now of our company, ballpark, in terms of revenue.

Darrin Peller: Right

Ron Clarke: in terms of revenue. Our focus, as you know, I've been super clear on this, that we have moved, I have moved a bunch of sales and marketing money into the Corporate Payments space to try to still deliver what we delivered, 29% earnings growth in Q1.

Speaker #4: And so our focus, as you know, I've, I've been super clear on this, that we have moved I have moved a bunch of, of a bunch of sales and marketing money into the corporate payments space to try to still deliver what we delivered 29% earnings growth in Q1.

Speaker #7: Correct.

Darrin Peller: Right.

Ron Clarke: We don't have unlimited money, Darren, to make profits, we have poured obviously way more incremental money particularly into the cross-border business. If we see this middle market thing take, we'll put more dough into it and grow it more. If not, it's kind of a bit of a yawn now. At 10% it's not gonna make the thing go. What you've been saying for three years, everybody needs to see how the Corporate Payments thing's going, 'cause that's gonna be 50%.

Speaker #4: So, we don't have unlimited money, Darren, to make profits. And so we have poured, obviously, way more incremental money, particularly into the cross-border business.

Speaker #4: And so if we see this middle market thing take, we'll put more dough into it and grow it more. And if not, it's kind of a bit of a beyond now at 10%.

Speaker #4: It's not gonna make the thing go. What you've been saying for three years—everybody needs to see how the corporate payment thing is going because that's gonna be 50% of the company.

Darrin Peller: Right

Ron Clarke: of the company.

Darrin Peller: Right

Speaker #7: Right.

Ron Clarke: That, that-

Speaker #4: That, that, that's the.

Darrin Peller: That's fair. All right. I guess on that note, maybe you could just explain a little more on the rate of growth we saw this past quarter between the AP spend management side and the cross-border sides of the Corporate Payments side. Obviously, the 18% ex float was solid.

Speaker #7: All right. I guess on that note, maybe you could just explain a little more on the rate of growth we saw this past quarter between the AP spend management side and the cross-border sides of the corporate payments side.

Speaker #7: Obviously, the 18% ex-float was solid.

Speaker #4: Yeah, that's a really good follow-up. It's about the same, which is really positive. So, both businesses are growing into the quarter in the high teens.

Ron Clarke: Yeah, that's a really good follow-up. It's about the same, which is really positive. Both businesses are growing, you know, in the quarter in the high teens. Again, both are working, so we like that, right? We like the balance of the two different solutions. Also the geographies. I think you know this, but maybe others don't. We finally have taken the payables business, which up until, you know, maybe six months ago was a 100% USA business. Now we've got a spend management business running in Europe, about $15 million in revenues is the current run rate of that, so obviously up from $0. Then in the cross-border business, about 75% of that business gets originated, you know, in other geographies.

Speaker #4: And again, both are working. So we like that, right? We like the balance of the two different solutions, and also the geography.

Speaker #4: So I think you know this, but maybe others don't. We, we finally have taken the payables business, which up until, if you know, maybe six months ago was 100% U.S.A. business.

Speaker #4: And now we've got a spend management business running in Europe, about $15 million in revenues. That is the current run rate of that. So, obviously, up from zero.

Speaker #4: And then about 75% of that business gets originated, you know, in other geographies—you know, Canada, the UK, continental Europe, you know, Singapore, Australia, etc.

Ron Clarke: You know, Canada, the UK, continental Europe, you know, Singapore, Australia, et cetera. That's what's so cool is that the businesses now are truly global. That payables thing has TAM now sitting, you know, certainly cross-border, but even now in the, in the spend management thing, we've got those products, Darrin, working in other, right, geographies beyond the US. The opportunity is way up because of that.

Speaker #4: And so, that's what's so cool is that the businesses now are truly global. That payables thing has TAN now sitting, you know, certainly across border, but even now in the spend management thing, we've got those products, Darren, working in other, right, geographies beyond the US.

Speaker #4: So, the opportunity is way up because of that.

Speaker #1: Thank you. And we'll go next to Michael Infante with Morgan Stanley. Please go ahead. Your line is open.

Operator 2: Thank you. We'll go next to Michael Infante with Morgan Stanley. Please go ahead, your line is open.

Operator: Thank you. We'll go next to Michael Infante with Morgan Stanley. Please go ahead, your line is open.

Speaker #8: Yeah. Hey, guys. Thanks for taking my question. Ron, I'd love to hear how the Mastercard partnership has progressed, how are both organizations sort of devoting resources here, and is that 1 to 2 points of contribution across border still the right place for '26?

Michael Infante: Hey. Thanks for taking my question. Ron, I'd love to hear how the Mastercard partnership is progressing. How are both organizations sort of devoting resources here? Is that 1 to 2 points of contribution to cross-border still the right place for 2026?

Ron Clarke: A good ask. I think we're both pleased. I know Mastercard reported. I didn't hear what they commented, I'd say from our seat, we're really pleased with the thing. We're pleased with Mastercard's engagement with us. We're pleased we've made, I think, 3 or 4 sales contracts, $5 million-ish run rate on the contracts. The last report, I saw 50 accounts in some form of a pipeline working. The fascinating thing is we have a better fix now on which FIs, which kinds of banks like this thing, and what they like. Fascinating, the most interesting product they're interested in, is our foreign bank account or our multicurrency bank account product, even more so than our payment capabilities. Look, it's a slower sales cycle, right, versus going to an end business.

Speaker #4: A good a good ask. I think we're both believe I know Mastercard reported. I didn't I didn't hear. What they commented. But I would say from our seat, we're, we're, we're really pleased with the thing.

Speaker #4: We're pleased with Mastercard's engagement with us. We're pleased we've made, I think, three or four sales contracts—$5 million-ish run rate on the contracts.

Speaker #4: The last report, I saw 50 accounts—in some form of a pipeline—working. The fascinating thing is, we have a better fix now on which FIs, which kinds of banks, like this thing.

Speaker #4: and what they like fascinating the most, interesting, product they're interested in, is our foreign bank account or our multicurrency bank account product. even more so than our than our p the payment capabilities.

Speaker #4: So look, it's a slower sales cycle, right, versus going to an end business. But I'd say the premise of Mastercard introducing us to their client base, and our people explaining the expertise we have—the formula is working.

Ron Clarke: I'd say the premise of Mastercard introducing us to their client base and our people explaining the expertise we have, the formula, is working. Ask me, you know, as we get into the summer and the fall, what that thing will be. I'd say we're still pretty bullish on it.

Speaker #4: And so, ask me, you know, as we get into the summer and the fall, what that thing will be. But I'd say we're still pretty bullish on it.

Speaker #8: That's helpful. And then maybe, Peter, just in terms of some of the tariff comp dynamics—you obviously had some pull-forward, some uncertainty in North America. Alpha obviously grew robustly last year.

Michael Infante: It's helpful. Maybe Peter, just in terms of some of the tariff comp dynamics, you obviously had some pull forward, some uncertainty in North America. Alpha obviously grew robustly last year. Anything we should just be mindful of in terms of the Q2 cross-border comp? Thanks, guys.

Speaker #8: Anything we should just be mindful of in terms of the Q2 cross-border comp? Thanks, guys.

Speaker #4: I'd say nothing specific in the Q2 cross-border comp. I mean, obviously, in my prepared remarks, I shared that, you know, the volatility across the world, right, allowed us the opportunity to display our, you know, capabilities and continue to gain business.

Peter Walker: I'd say nothing specific in the Q2 cross-border comp. I mean, obviously in my prepared remarks, I shared that, you know, the volatility across the world, right, allowed us the opportunity to display our, you know, capabilities and continue to gain business. I think what'll be really exciting for you guys to hear is to tune in to the cross-border teach-in next week. We're gonna really describe to you a $160 trillion, you know, market, which we have, you know, 1% of. I'd just say our opportunity here is really big.

Speaker #4: I think what’ll be really exciting for you guys to hear is to tune into the cross-border teach-in next week, and we’re gonna really describe to you a $160 trillion, you know, market, which we have, you know, 1% of.

Speaker #4: So I'd just say our opportunity here is, is, is really big.

Speaker #1: Thank you. We'll go next to Dave Koenig with Baird. Please go ahead.

Operator 2: Thank you. We'll go next to Dave Koning with Baird. Please go ahead.

Operator: Thank you. We'll go next to Dave Koning with Baird. Please go ahead.

Speaker #9: Yeah, hey guys, thank you. Nice job. And I guess my question, as we look forward, the corporate volumes, which have been, you know, huge because of Alpha, etc.—what should that start to grow at?

Dave Koning: Yeah. Hey, guys. Thank you. Nice job. I guess my question, as we look forward, the corporate volumes, which have been, you know, huge because of Alpha, et cetera, what should that start to grow at? Then similarly, what should the yield be? Like, does the yield stay around the 62 basis points? I would imagine if flow rates go up, that goes up a little bit, maybe pricing. Just the balance between how you're seeing volume and yield over the next couple years.

Speaker #9: And then, similarly, what should the yield be? Like, does the yield stay around the 62 basis points? I would imagine if float rates go up…

Speaker #9: That goes up a little bit, maybe pricing, but just the balance between how you're seeing volume and yield over the next couple of years.

Speaker #4: Yeah. Hey, hey, Dave. It's Ron. That's, that's also a good question. So, I'd say generally, both our payables business and our cross-border business are volume grower businesses.

Ron Clarke: Yeah. Hey, Dave, it's Ron. That's also a good question. I'd say generally, both our payables business and our cross-border business are volume grower businesses. They're not really rating kinds of businesses. Mostly again, because the clients are generally sizable. They're mid-market, you know, plus kind of clients. I'd say the only deviation from that is our cross-border business and, by the way, our payables business have had a little bit of success with some kind of crazy enterprise opportunities.

Speaker #4: They're not they're not really rate rating kinds of businesses in, in most, again, because the clients are generally sizable. They're, they're, they're mid-market, you know, plus kind of clients.

Speaker #4: I'd say the only deviation from that is our cross-border business and, by the way, our payables business have had a little bit of success with some kind of crazy enterprise opportunities.

Speaker #4: So I think I did mention we had a, payables enterprise account, gigantic, that we, we onboarded last spring that, that's kind of fully in now that said, you know, a quarter of kind of the line average, but it's a gigantic I think I mentioned it was half or more of the size of the p of the paymerang business.

Ron Clarke: I think I did mention we had a payables enterprise account, gigantic, that we onboarded last spring that's kind of fully in now that said, you know, a quarter of kind of the line average, but I think I mentioned it was half or more the size of the Paymerang business. Then the same in cross-border. We now are targeting some giant accounts where we might be doing some risk management work where they have big trades. We'll take those trades at very low, you know, sub-10 basis points 'cause they're massive transaction sizes. It skews a little bit these averages. What we do internally, which I'd be happy, Jim, for us to send around, is we look at the same day and pull those out.

Speaker #4: And then the same in cross-border. We, we now are targeting some giant accounts where we, we might be doing some risk management work, but they have big trades.

Speaker #4: And so we'll take those trades at very low, you know, sub-10 basis points, 'cause they're massive transaction sizes. So it skews a little bit, these averages.

Speaker #4: So what we do internally, which I'd be happy, Jim, for us to send around, is we look at the thing, Dave, and pull those out.

Speaker #4: So, we run the distribution. We look for, like, the 10 giant trades in the period and then look at the non, you know, kind of rest of business without those.

Ron Clarke: We run the distribution, we look for, like, the 10 giant trades in the period, and then look at the non, you know, kind of rest of the business without those. Not shockingly, it's kind of right spot on, you know, the yield we've been running at. It's a long way of saying, sans some big enterprise things, we don't see much movement in that yield.

Speaker #4: And not shockingly, it's kind of right spot-on, you know, the yield we've been running at. So, it's a long way of saying, sans some big enterprise things, we don't see much movement in that yield.

Speaker #9: Yeah, thank you. And then just on the vehicle business—it looked like, I just looked at the Brazil revenue number, and on a constant currency basis, if I kind of put it into the model, it looks like Brazil maybe slowed just a touch, but, you know, you'd obviously know better.

Dave Koning: Yeah. Thank you. Just on the Vehicle Payments business, it looked like I just looked at the Brazil revenue number, and on a constant currency basis, if I kind of put it into the model, it looks like Brazil may be slowed just a touch. You know, you'd obviously know better, but that just looked like it. Maybe comment on that and the Europe business a little bit.

Speaker #9: But that just looked—looked like it. But maybe comment on that in the Europe business a little bit.

Speaker #4: Yeah. I mean, to, to, to make the three, you know, V of 10%, obviously, some, some set of people need to be double-digit. So I, I don't have it in front of me, but the Brazil business is, is still rocking.

Ron Clarke: Yeah. I mean, to, to make the 3, you know, be at 10%, obviously some set of people need to be double-digits. I don't have it in front of me, but the Brazil business is still rocking. We've had a little weird thing with Google, some key word in our Vehicle Payments business kinda nicked us for maybe a point or something, I think, in Q1. The, the forecast, which I'm staring at, has that business in the high-teens rest of the year, Q2 and on, we're pretty confident. The Europe Vehicle Payments business, I'd say steady as she goes. That thing's been right around the 10% mark, I don't know, probably 8, 10 quarters now running. Same thing, that thing is out looking kind of steady as she goes.

Speaker #4: We've had a little weird thing with Google—some keyword in our vehicles. That's business kind of nicked us for maybe a point or something, I think, in Q1.

Speaker #4: But the, the forecast, which I'm staring at, has that business in the high teens, rest of year—Q2 and on. So we're, we're pretty confident.

Speaker #4: And the Europe vehicle business, I'd say steady as she goes. That thing's been right around the 10% mark. I don't know, probably 8, 8, 10 quarters now running.

Speaker #4: And same thing, that—that thing is outlooking, kind of steady as she goes. So, when you put the three geographies together, you get back to kind of, you know, 9 or 10 percent.

Ron Clarke: When you put the three geographies together, you get back to kind of, you know, 9% or 10%, and that's what we think rest of the year will be.

Speaker #4: And that's what we think the rest of the year will be.

Speaker #9: Great. Thanks, guys.

Dave Koning: Great. Thanks, guys.

Speaker #1: Once again, if you'd like to ask a question, this is Star and One on your touch-tone telephone. We'll pause for any further questions or follow-ups to queue.

Operator 2: Once again, if you'd like to ask a question, that's star 1 on your touch tone telephone. We'll pause for any further questions or follow-ups to queue. At this time, it does look like we have no further questions. We'd like to thank everybody for participating in today's meeting. We appreciate your time and participation. You may now disconnect.

Operator: Once again, if you'd like to ask a question, that's star 1 on your touch tone telephone. We'll pause for any further questions or follow-ups to queue. At this time, it does look like we have no further questions. We'd like to thank everybody for participating in today's meeting. We appreciate your time and participation. You may now disconnect.

Speaker #1: At this time, it does look like we have no further questions. So, we'd like to thank everybody for participating in today's meeting.