Corpay (CPAY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $1.34 billion, up 21–21.5% year-over-year, exceeding expectations and driven by organic growth, acquisitions, and favorable macro conditions.

• Adjusted EPS was $7.00, up 36% year-over-year, setting a record; adjusted EBITDA rose 24% to $767.2 million.

• Net income declined 12.6–13% to $248.3 million due to a $100 million FTC legal settlement charge.

• Organic revenue growth was 10%, with Corporate Payments up 16% and Vehicle Payments up 8%; retention held at 93%.

• Major acquisitions included Alpha Group and a minority stake in AvidXchange; PayByPhone was divested, and a sale agreement for the Maintenance business was signed.

Financial highlights

• Adjusted EBITDA margin was 57.3%, up from 56.3% YoY, driven by operating leverage and macro benefits.

• Free cash flow generated was $464 million in Q2; cash and equivalents at $3.16 billion as of June 30, 2026.

• Leverage ratio ended at 2.55x, with $1.6 billion available under the revolver.

• $321 million in stock repurchased during Q2; $1.4 billion remains authorized.

• Operating costs increased 9% (excluding FX, stock comp, amortization, and $100M FTC charge), mainly due to sales investments and higher credit losses.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $5.31 billion at midpoint, up 17% year-over-year, assuming 10% organic growth.

• Full-year adjusted net income per diluted share expected at $27.35, up 28% year-over-year; Q3 revenue guide is $1.355 billion (+16% YoY) and Q3 EPS guide is $7.15 (+26% YoY).

• Guidance reflects Q2 outperformance, favorable macro conditions, and the sale of the maintenance business.

• Pending Maintenance business sale expected to generate a pre-tax gain of $460–$515 million upon closing.

• Guidance assumes stable fuel prices, flat spreads, and consensus FX rates.