Corpay helps businesses pay suppliers, exchange currencies, and control employee fuel, travel, and other spending. In the second quarter ended June 30, 2026, its Corporate Payments business increased revenue by 42%, but operating profit grew 27% as acquisitions and expansion added costs. That business supplied most of Corpay’s new revenue, while a legal settlement charge pushed the company’s total quarterly profit down. The business is expanding, but turning that expansion into more profit and freely usable cash remains the central task.
Research cutoff: October 21, 2026, New York time. Financial results cover the second quarter and, where specified, the first six months of 2026; the material later development reviewed is the September FTC settlement announcement.
Source: Corpay’s June 2026 Form 10-Q, consolidated income statement, p. 2; Note 11, pp. 18–21; Note 12, pp. 21–22.
1. Corporate Payments supplies most of the new revenue, but earns less per dollar processed
Corporate Payments generated 68% of Corpay’s quarterly revenue increase. Customers are using Corpay to move more money, and the company now owns a larger business following its October 2025 acquisition of Alpha, a foreign-exchange and payment provider serving companies and investment funds.
The distinction between money moved and revenue earned matters. Corpay generally records its fees and payment margins as revenue, rather than the full value of a customer’s fuel purchase or supplier payment. Moving $100 for a customer therefore produces much less than $100 of revenue.
The following comparison uses the segment definitions adopted in 2026. Corpay restated the 2025 figures to move outsourced card processing into Other and certain enterprise spending customers into Corporate Payments.
| Consolidated segments; US$ millions | Second quarter 2025 revenue | Second quarter 2026 revenue | Second quarter 2025 operating profit | Second quarter 2026 operating profit |
|---|---|---|---|---|
| Corporate Payments | 387.3 | 548.7 | 156.9 | 199.6 |
| Vehicle Payments | 512.0 | 580.2 | 241.6 | 190.1 |
| Lodging Payments | 119.8 | 123.2 | 49.3 | 49.5 |
| Other | 82.9 | 86.7 | 31.5 | 33.1 |
| Corpay total | 1,102.0 | 1,338.8 | 479.4 | 472.3 |
Source: June 2026 Form 10-Q, Note 11, pp. 18–21. Vehicle Payments includes the 2026 legal charge and disposal adjustments discussed below. Other includes gift cards, outsourced card processing, and payroll cards.
Corporate Payments’ reported growth includes approximately $78 million from acquisitions. After adjusting both periods for the businesses owned and for exchange rates and fuel prices, management reports 16% revenue growth. Customer spending on that comparable basis grew 43%, from $66.2 billion to $94.6 billion. Revenue earned per dollar processed fell from about 0.70% to 0.57%.
Management attributes the lower revenue per dollar to new large customers in payables and cross-border payments. These customers bring considerable payment volume without a matching percentage increase in fees. The result supports the case that Corpay is winning more business, but payment volume alone overstates the growth in what Corpay earns.
The same distinction appears in profit. Corporate Payments kept 36.4 cents of operating profit per revenue dollar, down from 40.5 cents a year earlier. Sales investment and integration expenses offset part of the benefit from growth and integration savings. The pattern also holds over the first half: segment revenue grew 43.7%, while operating profit increased 32.1%.
Source: June 2026 Form 10-Q, key performance measures, pp. 30–31; segment discussion, pp. 37 and 40; organic-growth reconciliation, pp. 45–46. Margins and the contribution to consolidated growth are calculated from Note 11.
There is a practical route to improving those economics. Corpay can process acquired customers on shared technology and sell more services to its existing customer base. Management reported in August that more than 80% of Alpha’s corporate payment volume had migrated to Corpay’s platform. The migration shows implementation progress. Even with integration savings, the segment retained less operating profit from each revenue dollar.
The competitive challenge is to make the combined service useful enough that customers buy more than basic payment processing. Banks, American Express, and Coupa already compete for corporate payment workflows. Mastercard’s commercial partnership offers Corpay another distribution route through Mastercard’s financial-institution customers. It expands access to potential customers, but the disclosed agreement does not quantify the revenue those referrals will produce.
Sources: August 5, 2026 prepared earnings remarks, p. 8; 2025 Form 10-K, Item 1, “Competition”; Mastercard investment completion announcement, December 8, 2025.
2. The legal charge explains the quarterly profit decline, but other costs also rose
Removing the settlement charge reveals profit growth, while leaving evidence of pressure on margins. Corpay’s reported second-quarter revenue rose 21.5%, yet operating profit fell 1.5% and profit attributable to Corpay fell 12.6%.
| Consolidated reported results; US$ millions except per-share amounts and margins | Second quarter 2025 | Second quarter 2026 | First half 2025 | First half 2026 |
|---|---|---|---|---|
| Revenue | 1,102.0 | 1,338.8 | 2,107.7 | 2,599.8 |
| Operating profit | 479.4 | 472.3 | 906.5 | 1,108.4 |
| Operating margin | 43.5% | 35.3% | 43.0% | 42.6% |
| Profit attributable to Corpay | 284.2 | 248.3 | 527.4 | 598.4 |
| Diluted earnings per share, US$ | 3.98 | 3.70 | 7.38 | 8.79 |
Source: June 2026 Form 10-Q, consolidated income statement, p. 2. Operating margin is operating profit divided by revenue. “Profit attributable to Corpay” excludes earnings belonging to other owners of consolidated subsidiaries.
A limited adjustment helps isolate the settlement’s effect without removing all the costs management excludes. Add back the $100 million settlement charge and remove the $1.1 million quarterly disposal gain: operating profit becomes a calculated $571.2 million, 19.1% above the prior-year quarter. Its margin is 42.7%, still below 43.5%. This calculation keeps stock compensation, acquisition-related amortization, integration expenses, and other operating costs.
Costs increased for identifiable reasons. Processing expense rose 15.4%, partly because transaction volume and credit losses increased. Selling expense rose 30.1% as Corpay added acquired operations, paid higher commissions, and invested in marketing. General and administrative expense rose 26.4%, including deal fees and technology investment. The filing does not separate every additional dollar into temporary and ongoing spending.
Interest also absorbed more profit. Second-quarter net interest expense rose to $114.7 million from $96.9 million. Borrowing to fund acquisitions outweighed the benefit of lower borrowing rates and greater interest income on cash balances. In the first half, net interest expense increased by $34.0 million.
Source: June 2026 Form 10-Q, expense and interest discussion, pp. 35–39. The limited operating-profit adjustment is reproduced in the calculation notes.
The first-half profit increase needs a different explanation from the quarter. The income statement includes a $122.5 million net disposal gain, primarily from selling PayByPhone, alongside the $100 million settlement expense. Corpay’s first-half tax rate also rose to 28.7% from 26.7%, with the sale among the stated causes. These items make the six-month profit increase a poor stand-alone measure of improvement in the continuing businesses.
Management’s adjusted profit measure shows stronger growth: second-quarter adjusted net income rose 26.7% to $464.4 million. It removes the settlement, but also removes compensation paid in shares, amortization, integration costs, and other items. Those exclusions answer a narrower operating question; they do not make acquisition costs or employee compensation disappear. The full reported-to-adjusted comparison, including tax treatment, is in the notes.
Source: June 2026 Form 10-Q, Note 9, p. 18; Note 15, p. 26; non-GAAP reconciliation, pp. 47–48.
The FTC matter also changed after the filing. On September 17, the agency announced acceptance of a proposed $100 million settlement for public comment. The comment deadline was October 22, one day after this report’s research cutoff. The settlement therefore remained proposed at that cutoff; it was not a second $100 million charge established by the September announcement.
The existing court order requires clear fee disclosures and customers’ informed consent, and prohibits deceptive fuel-card claims. That makes this an operating issue as well as a payment obligation: the U.S. fuel-card business must earn fees under those restrictions. Corpay said on September 18 that it had strengthened communications and compliance controls and did not expect a material ongoing operating impact. The filing nevertheless warned that changes to, or rejection of, the proposed settlement could bring additional redress or penalties; it supplied no additional loss estimate.
Sources: FTC announcement, September 17, 2026; Federal Register notice, September 22, 2026, comment deadline and proposed-order status; Corpay’s September 18 response; June 2026 Form 10-Q, Note 12.
3. Fuel prices helped Vehicle Payments, while lodging still depended on earning more per room night
Vehicle growth benefited from fuel prices; lodging growth came from more revenue per room night. Vehicle Payments’ second-quarter revenue increased 13.3%, including benefits from currency translation, fuel prices, and the difference between fuel prices charged to customers and paid to merchants.
Management estimated approximately $29 million of favorable currency effects and $27 million from fuel prices and fuel-price spreads in this segment. Those benefits helped offset approximately $28 million of revenue lost through disposals. On management’s comparable basis, Vehicle Payments revenue and transactions each grew about 8%, with revenue per transaction essentially unchanged.
The reported transaction count tells a very different story: it fell 29%. The principal explanation is the sale of PayByPhone, which had contributed 67.8 million parking transactions in the prior-year quarter. After adjusting for portfolio changes, fleet transactions grew about 2%. Corpay also recorded growth in toll-tag subscriptions and other vehicle services. Treating the reported transaction decline as a broad loss of customers would miss the disposal.
Source: June 2026 Form 10-Q, performance measures, pp. 30–31; Vehicle Payments discussion, p. 37; revenue reconciliation, pp. 45–46.
WEX’s results show why fuel-related revenue deserves that separation. In the same quarter, WEX’s Mobility revenue rose 22%, while payment-processing transactions were almost unchanged at 139.3 million versus 139.2 million. WEX attributed $63.8 million of revenue benefit to higher fuel prices. Its product and geographic mix differ from Corpay’s, so this is evidence of a shared industry influence, rather than a direct market-share comparison.
Source: WEX second-quarter 2026 results, Mobility results and Exhibit 3.
Lodging has a different problem. Corpay earned more per room night, but processed fewer room nights. Quarterly revenue rose 2.8%, while operating profit increased only 0.4%.
| Lodging activity; reported quarterly measures | Second quarter 2024 | Second quarter 2025 | Second quarter 2026 |
|---|---|---|---|
| Room nights, millions | 8.8 | 8.7 | 7.5 |
| Revenue per room night, US$ | 13.97 | 13.84 | 16.34 |
| Revenue, US$ millions | 122.4 | 119.8 | 123.2 |
Sources: August 6, 2025 earnings release, Exhibit 2; June 2026 Form 10-Q, pp. 30–31 and 37. Activity figures are rounded; use the company’s disclosed 13% decline for 2026 room nights rather than calculating a rate from rounded counts.
The two-year comparison shows that lodging revenue has only slightly exceeded its 2024 level, despite earning more per room night. Revenue per room night can change with customer and service mix as well as rates, so the increase does not establish a uniform price rise. Management expected lodging’s organic growth to improve to mid-single digits in the second half. A stronger volume result would make that improvement more convincing than another increase driven mainly by revenue per room night.
Geography also affects the consolidated picture. First-half U.S. revenue grew to $1.144 billion from $1.049 billion, but its share fell to 44% from 50%. Brazil, the United Kingdom, and other countries grew faster in reported dollars. Management estimated that currency movements added $99 million to first-half consolidated revenue. Thus the stronger international contribution reflects both business expansion and translation into dollars.
Sources: August 5, 2026 prepared remarks, p. 4, management outlook; June 2026 Form 10-Q, revenue by geography, p. 30, and first-half revenue discussion, pp. 38–39.
4. Customer money enlarges the balance sheet without becoming spare corporate cash
Corpay’s $10.2 billion cash total is mainly part of running its payment businesses. At June 30, $7.0 billion was restricted. Those funds include customer money held for payments and collateral supporting currency transactions. Even the $3.2 billion classified as unrestricted includes customer deposits and amounts needed for operations or regulatory requirements.
| Consolidated financial position; US$ millions | December 31, 2025 | June 30, 2026 |
|---|---|---|
| Cash and cash equivalents | 2,408.1 | 3,163.5 |
| Restricted cash | 6,583.8 | 7,004.8 |
| Customer deposits owed | 8,118.6 | 8,915.8 |
| Receivables after loss allowances, including pledged receivables | 3,968.7 | 4,956.0 |
| Accounts payable | 1,564.5 | 2,275.8 |
| Financing debt, including receivables financing | 10,001.7 | 10,623.5 |
| Total assets | 26,408.1 | 28,224.2 |
| Total equity, including ordinary noncontrolling interests | 3,926.7 | 3,588.0 |
Source: June 2026 Form 10-Q, balance sheet, p. 1; Notes 1, 2 and 8; liquidity discussion, pp. 40–42. The separately presented $314.0 million redeemable Mastercard interest is outside both financing debt and total equity in this table.
Receivables—the amounts customers and payment counterparties owe Corpay—increased by almost $1 billion after loss allowances between year-end and June 30. The company also owed merchants and others more money. Part of this reflects payment settlement rather than fee revenue: cross-border spot-payment receivables after permitted offsetting rose to $393.5 million from $199.2 million, while the corresponding payables rose to $302.4 million from $107.6 million. These are amounts moving through the payment process, not additional sales of the same size.
Receivables still carry loss risk. In the first half, Corpay charged $90.7 million against profit for expected credit losses, versus $62.2 million a year earlier. Actual receivables written off, after recoveries, were $88.4 million versus $51.8 million. Management said the expense relative to customer spending was consistent with the prior period and attributed the increase primarily to business growth. That is useful counterevidence to a deterioration claim, even though the absolute cost of unpaid bills increased.
The loss allowance rose from $171.0 million to $176.2 million. New loss provisions slightly exceeded net write-offs, and currency changes added to the balance. The complete reconciliation appears in the notes.
Source: June 2026 Form 10-Q, Note 1, spot-trade offsetting, p. 8; Note 2, pp. 10–11.
Currency contracts create a further cash requirement. Corpay’s customer foreign-exchange contracts had a $163.1 billion reference amount at June 30, up from $123.9 billion at year-end. That reference amount is not the amount Corpay stands to lose. After permitted offsetting, the related derivative assets were $1.05 billion and liabilities were $743.6 million.
Corpay had posted $331.4 million of cash collateral with banks. Sudden currency moves can require it to post more before customer contracts settle. The company reviews customer and bank credit quality, sets counterparty limits, and can require collateral. This growing business therefore needs both payment technology and cash available at short notice; customer deposits cannot simply be counted as money available for acquisitions or debt repayment.
Source: June 2026 Form 10-Q, Note 13, pp. 22–23; liquidity facilities, p. 42.
5. Buybacks used most of the cash left after capital spending
Operating cash increased, but customer-payment timing supplied a material part of the improvement. Corpay reported $1.413 billion of first-half operating cash, up 32.6% from $1.066 billion. The cash statement starts with consolidated net income of $605.5 million, which includes earnings belonging to other owners of subsidiaries.
Corpay’s accounts charge part of past equipment, software, and acquisition spending against each period’s profit. Those depreciation and amortization charges do not require another cash payment in that period. Compensation in shares and provisions for unpaid customer bills and the legal settlement also reduced profit without matching current-period cash payments. The cash statement adds back these charges and removes the disposal gain, because the sale proceeds belong in investing cash flow.
The payment-timing effect was especially large. Growth in payables, accrued expenses, and customer deposits supplied $1.570 billion, while growth in receivables used $1.083 billion. Together with the other operating-asset changes, these timing movements supplied $458.2 million, compared with $273.0 million a year earlier. Collecting customer bills releases cash; paying merchants and returning customer deposits uses it.
| First-half cash allocation; US$ millions | 2025 | 2026 |
|---|---|---|
| Reported operating cash inflow | 1,066.1 | 1,413.5 |
| Cash purchases of property and equipment | 97.4 | 105.5 |
| Operating cash less those purchases, calculated | 968.7 | 1,308.0 |
| Cash used to repurchase shares | 90.9 | 1,112.5 |
| Remainder after capital purchases and buybacks, calculated | 877.8 | 195.4 |
Source: June 2026 Form 10-Q, consolidated cash-flow statement, p. 5. Positive spending figures are subtracted. The calculated remainder precedes acquisitions, disposals, borrowing, currency effects, and other financing or investing flows; rounding affects displayed sums.
The calculation shows that reported operating cash covered both capital purchases and buybacks in the first half. It does not establish that the remaining $195.4 million was all freely distributable: the operating cash figure contains customer-funding movements. Corpay also received $421.7 million from selling PayByPhone and drew a net $633.9 million of additional borrowings across its facilities. These were separate sources of funds.
Capital purchases increased 8.3%. Corpay’s annual filing says a significant part of capital investment develops internal software used to process payments and information. The business is not building a large manufacturing asset base: net property and equipment was almost unchanged at $472.3 million. No material inventory is separately reported. The disclosures do not divide investment into maintenance and expansion, so the difference between capital spending and depreciation cannot establish that split.
Sources: June 2026 Form 10-Q, pp. 1 and 5; 2025 Form 10-K, Note 2, “Property and Equipment and Definite-Lived Intangible Assets.”
Buybacks also changed the earnings-per-share comparison. Second-quarter diluted average shares fell 7.1% to 66.325 million. This softened the reported EPS decline to 7.0%, versus the 12.6% fall in profit attributable to Corpay. It also helped adjusted EPS grow faster than adjusted total profit.
During the first half, treasury shares increased by 3.400 million while issued shares increased by 0.692 million. Shares outstanding consequently fell by 2.707 million to 65.655 million. The balance sheet retains repurchases as treasury shares—shares Corpay holds itself—while issued shares continue to rise. Stock compensation of $59.5 million remained an economic cost, and employee share issuance offset part of the reduction from repurchases.
Corpay’s own stockholders’ equity fell by $342.0 million even though it earned a profit. The $1.116 billion addition to treasury-stock cost outweighed retained profit, share issuance, stock compensation, and favorable movements recorded outside profit. The difference between that treasury-stock entry and $1.113 billion of cash repurchases is kept separate in the reconciliation; the cash statement governs the spending comparison. No cash dividend payment is reported for the first half.
Source: June 2026 Form 10-Q, balance sheet and statements of equity and cash flows, pp. 1, 4–5; Notes 5 and 10. The earnings-per-share calculation also deducts the increase in Mastercard’s redemption entitlement, explained in the notes.
One terminology difference matters when reading management’s plans. Corpay’s earnings release uses “free cash flow,” “cash net income,” and “adjusted net income” interchangeably. The cash-allocation table above instead subtracts actual cash purchases of property and equipment from reported operating cash. These are different measures, and only the latter begins with the cash-flow statement. The distinction matters because the same release assumes that cash generated by the business is used to reduce debt.
Source: August 5, 2026 earnings release, “About Non-GAAP Financial Measures.”
6. Refinancing extended the main loans, while receivables funding remained fully used
Corpay pushed the main loan repayment dates further out, while total debt increased. The May amendment extended Term Loan A and the principal revolving facilities to May 2031. Term Loan B-6 matures in November 2032. Debt including receivables financing nevertheless increased by $621.8 million from year-end to $10.624 billion.
| Financing at June 30, 2026; US$ millions | Carrying amount | Stated facility maturity |
|---|---|---|
| Term Loan A | 3,291.5 | May 21, 2031 |
| Term Loan B-6 | 2,912.2 | November 5, 2032 |
| Revolving credit facilities | 2,060.0 | May 21, 2031 |
| Other obligations | 59.8 | Various terms |
| Receivables financing facility | 2,300.0 | November 3, 2028 |
| Total financing debt | 10,623.5 | — |
Source: June 2026 Form 10-Q, Notes 2 and 8, pp. 10 and 17; May 22, 2026 Form 8-K, Item 1.01. Term loans are shown after discounts and issuance costs. Receivables financing has an earlier-expiry condition tied to the credit agreement; the disclosed dates make November 2028 the earlier date.
The revolving facility grew to $3.7 billion and had approximately $1.6 billion of unused capacity. That supports short-term flexibility. By contrast, the $2.3 billion receivables facility had no unused capacity. Corpay keeps the pledged receivables on its consolidated balance sheet and records the funding as debt, because it retains continuing involvement in those receivables. More customer lending therefore requires collections, other borrowing capacity, or another funding arrangement.
The filing classifies $4.525 billion of debt as current, including all $2.3 billion of receivables financing. It also presents $2.176 billion in a remaining-2026 principal-payment schedule while separately stating the longer facility maturity dates above. It does not reconcile those presentations. The current obligations should remain in a near-term liquidity assessment, without treating the entire amount as a bank facility expiring in 2026.
At June 30, disclosed rates were 5.02% on Term Loan A, 5.39% on Term Loan B-6, 5.03% on dollar revolving borrowings, and 4.55% on receivables financing. The unused revolving commitment fee was 0.25%. Corpay paid $281.0 million of interest during the first half, compared with $238.8 million a year earlier. These cash payments differ from net interest expense because of interest income, accrual timing, and noncash financing charges.
Source: June 2026 Form 10-Q, p. 5; Notes 2 and 8; liquidity and financing discussion, pp. 40–42.
Corpay met its financial and nonfinancial loan covenants at June 30. The amended agreement generally limits its defined debt-to-earnings ratio to 4.0 times, with a conditional 4.5-times allowance following a qualifying acquisition. This uses the contract’s definitions, rather than simply dividing balance-sheet debt by accounting profit. Compliance and unused bank capacity provide support for management’s statement that liquidity covers its planned needs, though access to funding remains important to daily payment operations.
Interest-rate exposure works in both directions. Corpay had swaps covering $4.0 billion of variable-rate debt at June 30, of which $1.5 billion was scheduled to mature on July 31. It also earns interest on customer funds where permitted. Management said lower rates reduced Corporate Payments’ organic revenue growth by 1.8 percentage points in the quarter through lower interest earned on those balances. Lower rates can therefore reduce both borrowing expense and payment-business revenue.
Sources: May 2026 amended credit agreement, Sections 2.07–2.08 and 8.11; June 2026 Form 10-Q, pp. 17 and 42; August 5 prepared remarks, p. 8.
Leases are a smaller claim on cash. The latest detailed schedule, dated December 31, 2025, showed $129.9 million of undiscounted future lease payments, including $30.1 million for full-year 2026. Discounted lease liabilities were $114.5 million. These mainly support offices, data centers, vehicles, and equipment and are separate from the financing-debt table.
Source: 2025 Form 10-K, Note 14, pp. 100–101. These are year-end disclosures, not updated June 2026 lease balances.
Disputed tax positions create another potential cash claim. The latest detailed annual tax note reported $134.9 million of unrecognized tax benefits at December 31, 2025. These are disputed or uncertain tax positions, not a forecast cash payment. The second-quarter filing reported no material financial-statement effect from recent U.S. tax changes and global minimum-tax rules during the quarter or first half.
Sources: 2025 Form 10-K, Note 13; June 2026 Form 10-Q, “Income Taxes,” p. 33.
7. Portfolio changes sharpen the strategy while adding future cash decisions
Corpay is directing its business toward corporate payments while selling smaller vehicle-related operations. The intended benefit is a more focused business with shared technology and wider customer relationships. The cost is acquisition financing, integration work, and dependence on the acquired customer relationships producing the expected income.
Alpha’s approximately $2.4 billion cash purchase price was funded through credit-facility borrowings. Its acquired assets included $994.5 million of identifiable intangible assets, mostly customer and vendor relationships. Corpay gradually charges the assigned cost of those relationships against profit through amortization. Keeping those customers is therefore important to earning back the acquisition cost.
Alpha also contributed $1.209 billion of goodwill, which records expected business benefits beyond the separately identified net assets. Roughly $4 billion of acquired cash came with corresponding obligations to customers, limiting its use for general corporate spending.
The separate $578 million investment in the partnership owning AvidXchange gives Corpay approximately 35% ownership. AvidXchange automates supplier invoices and payments for smaller and midsized companies in selected industries. Corpay records its share of investment results, rather than adding all AvidXchange revenue to consolidated sales. Corpay’s equity-method investments produced $22.7 million of reported losses in the first half, even as management described progress in the underlying business.
That investment includes another decision: 33 months after the October 2025 closing, Corpay can buy the remaining partnership equity for approximately 2.5 times invested capital. If it declines and TPG sells during the following 15 months, Corpay may have to make up a shortfall under a guarantee of approximately 1.6 times its partners’ invested capital, subject to specified limits. The filing says a sale at approximately the original enterprise valuation in 2029 would require no such payment. The guarantee is therefore a contingent cash exposure, not an established payable of a disclosed fixed amount.
Source: June 2026 Form 10-Q, Note 1, equity-method losses, p. 9; Note 6, pp. 14–15; liquidity discussion, pp. 43–44.
The Mastercard partnership has a more clearly defined potential cash claim. Mastercard can require Corpay to repurchase its 2.3% cross-border interest during a six-month window starting August 1, 2027. The price is the original $300 million plus 8% annually compounded. Its carrying redemption value was $314 million at June 30. The partnership may help distribution, while this repurchase right means the original investment cannot be treated as permanently available equity capital.
Source: June 2026 Form 10-Q, Note 1, pp. 8–9; redeemable noncontrolling interest discussion, p. 43.
On the disposal side, PayByPhone was sold on March 31. Corpay also agreed to sell its Maintenance business, identified in the August announcement as epyx and related companies, for approximately £600 million, or about $800 million at the filing’s exchange rate. Management said the sale would simplify the portfolio and planned to use proceeds for share repurchases. Its August forecast assumed approximately $40 million less 2026 revenue from the disposal, with the per-share effect offset by buybacks. That offset is a plan about the share count; the sold business’s revenue and profit would leave Corpay.
The sources reviewed establish the sale agreement and an expected autumn closing, rather than a verified completed transaction by the research cutoff. The filing estimated a $460 million–$515 million pretax gain on completion, subject to costs, closing adjustments, and currency movements. Neither that forecast gain nor the expected proceeds are included as completed first-half cash flows here.
Sources: June 2026 Form 10-Q, Note 15, p. 26; August 5 disposal announcement; August 5 prepared remarks, p. 11.
These disposals also explain much of the change in assets. Goodwill fell by $414.8 million, mainly because $214.5 million left with PayByPhone and $194.3 million moved into assets held for sale for Maintenance. This was not a new goodwill impairment. The Maintenance business’s $326.3 million of assets moved into current assets, explaining most of the $357.0 million rise in prepaid expenses and other current assets.
Other intangible assets fell by $318.0 million, with amortization, portfolio removals and reclassification, and currency translation affecting the balance. Corpay recorded $161.0 million of intangible amortization and a $13.8 million currency-related decline. Goodwill and intangibles still represented 35.7% of assets. The financial condition therefore depends substantially on the performance of acquired businesses, as well as on the cash and receivables supporting payments.
Source: June 2026 Form 10-Q, balance sheet, p. 1; Note 7, p. 16; Note 15, p. 26. The goodwill reconciliation is in the calculation notes.
Management’s August outlook called for full-year revenue of $5.290 billion–$5.330 billion. It assumed continued favorable operating conditions, weighted average U.S. fuel prices of $4.02 per gallon for the rest of the year, fuel-price spreads near the 2025 average, and full-year interest expense of $435 million–$465 million. These remain forecasts from August, not results verified through October. The business consequence is clear: continued growth requires customer wins and successful integration, while the forecast also depends on fuel, currency, and financing conditions that Corpay does not control.
Source: August 5, 2026 earnings release, fiscal-year outlook and assumptions.
8. Conclusion: the expansion is working, but the next gain must reach margins and usable cash
Corpay has demonstrated substantial growth in corporate payment activity; the remaining test is how much profit and available cash that activity produces. Acquisitions broadened the offering, comparable revenue also increased, and Corporate Payments supplied most of the company’s incremental sales. The reported quarterly profit decline largely reflects the legal charge, rather than a fall in revenue across the business.
The strongest contrary evidence is inside the expanding segment itself: revenue per dollar processed and operating margin both fell. Lodging’s revenue recovery also rests on earning more per room night while room nights remain weak. Meanwhile, higher operating cash partly reflects customer-payment timing, and buybacks consumed most of the reported cash left after capital purchases.
The refinancing gives Corpay time to integrate its businesses and develop customer relationships. Successful integration, better margins on growing payment volume, and cash generation that funds investment and planned obligations after customer settlements would strengthen the business assessment. Persistent margin pressure, rising losses on customer balances, or greater collateral and repurchase obligations would weaken it. Corpay’s next stage depends on improving the economics of the larger platform it has already built.
Reporting basis:
This analysis uses Corpay, Inc. and subsidiaries’ unaudited consolidated U.S. GAAP statements for the three and six months ended June 30, 2026, with matching 2025 periods. Balance-sheet comparisons use December 31, 2025. The selected filing is Form 10-Q, CIK 0001175454, accession 0001175454-26-000050, filed August 10, 2026; EDGAR records acceptance on August 7 after market hours. The fiscal year ends December 31. Prior-year segment amounts come from the 2026 filing’s recast presentation; older segment classifications are not spliced into the Corporate Payments comparison.
The research cutoff is October 21, 2026, New York time. Subsequent-event coverage here consists of the specific primary documents cited, including the September FTC materials. August management forecasts retain their original date. No completed Maintenance sale or third-quarter financial results are assumed.
Source: SEC filing index; June 2026 Form 10-Q, cover, Note 1 and Note 11.
Calculation notes:
A. What the growth and profit comparisons measure
Percent growth equals the current-period amount divided by the matching prior-period amount, minus one. Operating margin equals operating profit divided by revenue. A change between two margins is expressed in percentage points.
Corporate Payments supplied $161.419 million of Corpay’s $236.779 million second-quarter revenue increase, or 68.2%. Its operating margin declined from 40.520% to 36.383%, a 4.137-percentage-point decline.
Management’s organic comparison adjusts the businesses included in the prior year and removes specified currency and fuel effects. The following figures are management’s rounded reconciliation, rather than GAAP revenue:
| Quarterly revenue comparison; US$ millions | Second quarter 2025 | Second quarter 2026 |
|---|---|---|
| Revenue on management’s comparable portfolio and economic basis | 1,152.5 | 1,270.7 |
| Portfolio adjustments to return to reported revenue | -50.5 | 0.8 |
| Fuel-price and fuel-spread adjustments | 0.0 | 30.2 |
| Currency adjustments | 0.0 | 37.0 |
| Reported revenue | 1,102.0 | 1,338.8 |
The comparable increase is approximately 10.3%, reported by management as 10%. The 2026 displayed components differ from reported revenue by $0.1 million because of rounding; that difference is not assigned to additional organic growth.
The limited operating-profit calculation in section 2 is, in US$ millions: reported operating profit of 472.274 + settlement charge of 100.000 − disposal gain of 1.099 = 571.175. Against prior-year reported operating profit of 479.390, growth is 19.146%. Dividing 571.175 by revenue of 1,338.809 gives a 42.663% margin. This is a pretax calculation and is not management’s adjusted net income.
Sources: June 2026 Form 10-Q, income statement, Note 11, and organic-growth reconciliation, pp. 45–46.
B. How management gets from reported profit to adjusted profit
All figures below are US$ millions. Positive adjustments increase adjusted profit; negative adjustments reduce it. The equity-investment adjustment is already after tax. The other adjustment lines follow management’s stated pretax treatment, with the combined tax effect shown separately.
| Reported-to-adjusted reconciliation | Second quarter 2025 | Second quarter 2026 | First half 2025 | First half 2026 |
|---|---|---|---|---|
| Reported profit attributable to Corpay | 284.168 | 248.307 | 527.401 | 598.373 |
| Stock compensation | 28.868 | 32.014 | 47.234 | 59.509 |
| Amortization, including financing costs | 64.137 | 85.105 | 130.203 | 168.269 |
| Legal settlements and litigation | 0.278 | 100.944 | 0.863 | 101.526 |
| Debt-extinguishment loss | 0.000 | 6.557 | 1.596 | 6.557 |
| Integration and deal costs | 14.452 | 38.127 | 25.841 | 55.053 |
| Restructuring and related costs | 3.330 | 2.839 | 6.130 | 6.879 |
| Remove net disposal gain | 0.000 | -1.099 | 0.000 | -122.522 |
| Equity-method investment adjustments, after tax | 0.000 | 14.321 | 0.000 | 35.711 |
| Other adjustments | -6.903 | 2.641 | -0.396 | 13.022 |
| Total adjustments before the following tax lines | 104.162 | 281.449 | 211.471 | 324.004 |
| Tax effect of pretax adjustments | -27.840 | -65.372 | -55.456 | -104.926 |
| Discrete tax adjustments | 5.931 | 0.000 | 5.931 | 44.103 |
| Management’s adjusted profit | 366.421 | 464.384 | 689.347 | 861.554 |
Amortization includes acquired intangible assets, receivable premiums, and financing costs. Other adjustments include currency gains or losses, items attributable to other owners, stock-compensation tax effects, and other specified items. For first-half 2026, the discrete tax adjustment includes $40.0 million associated with PayByPhone’s sale and taxes related to the equity-method investment. The aggregate tax adjustment cannot be used to assign a separately verified after-tax amount to the FTC charge or disposal gain. The disposal footnote describes a $122.9 million PayByPhone gain; the consolidated income statement’s $122.522 million net disposition line is the amount used in this reconciliation.
Reported diluted EPS also reflects Mastercard’s redemption entitlement. For second-quarter 2026, US$248.307 million of Corpay profit − US$2.838 million redemption adjustment = US$245.469 million available for the EPS calculation. Dividing by 66.325 million diluted shares gives US$3.70. The prior-year comparison is US$284.168 million ÷ 71.429 million shares = US$3.98. Management’s adjusted EPS excludes the redemption adjustment.
Source: June 2026 Form 10-Q, Note 10, p. 18; Note 15, p. 26; adjusted-income reconciliation and footnotes, pp. 47–48.
C. Cash generation, cash balances, and credit losses
This bridge explains why reported profit and operating cash differ. It uses consolidated net income, including other owners’ earnings, consistently with the cash-flow statement.
| First-half operating cash bridge; US$ millions | 2025 | 2026 |
|---|---|---|
| Consolidated net income | 527.953 | 605.502 |
| Total noncash and other profit adjustments | 265.173 | 349.811 |
| Receivables growth, cash used | -740.361 | -1,082.858 |
| Payables, accrued expenses, and deposits, cash supplied | 1,071.400 | 1,570.343 |
| Other operating-asset and derivative movements, net | -58.069 | -29.319 |
| Operating cash inflow | 1,066.096 | 1,413.479 |
The adjustment total above contains the following items. Adding back an expense explains the difference between profit and cash; it does not itself bring in money.
| Adjustments to first-half profit; US$ millions | 2025 | 2026 |
|---|---|---|
| Depreciation and amortization of intangible assets and receivable premiums | 183.538 | 233.123 |
| Compensation paid in shares | 47.234 | 59.509 |
| Provisions for unpaid customer bills | 62.162 | 90.650 |
| Legal settlement provision | 0.000 | 100.000 |
| Deferred-tax adjustment | -25.499 | -53.612 |
| Remove disposal gain | 0.000 | -122.522 |
| Financing-cost amortization, debt-extinguishment losses, and other noncash items, net | -2.262 | 42.663 |
| Total adjustments | 265.173 | 349.811 |
The last grouped line for 2026 combines financing-cost amortization of $7.246 million, debt-extinguishment losses of $6.557 million, and other noncash expense of $28.860 million. The comparable 2025 inputs are $4.842 million, $1.596 million, and negative $8.700 million.
The cash balance includes restricted customer funds. This table follows the cash statement’s scope; the 2026 closing amount excludes Maintenance’s cash moved to assets held for sale.
| Cash and restricted cash reconciliation; US$ millions | First half 2025 | First half 2026 |
|---|---|---|
| Opening balance | 4,456.345 | 8,991.940 |
| Operating cash flow | 1,066.096 | 1,413.479 |
| Investing cash flow | -222.640 | 321.454 |
| Financing cash flow | 78.355 | -419.666 |
| Effect of currency movements | 153.202 | -114.140 |
| Cash moved to assets held for sale | 0.000 | -24.725 |
| Closing balance | 5,531.358 | 10,168.342 |
The expected-credit-loss allowance also reconciles, in US$ millions:
| Allowance movement in the first half | 2025 | 2026 |
|---|---|---|
| Opening allowance | 133.757 | 170.957 |
| New loss provisions | 62.162 | 90.650 |
| Receivables written off | -55.724 | -93.662 |
| Recoveries of previously written-off amounts | 3.927 | 5.259 |
| Currency translation | 11.725 | 3.040 |
| Closing allowance | 155.847 | 176.244 |
Source: June 2026 Form 10-Q, cash-flow statement, p. 5; cash reconciliation, Note 1, p. 7; allowance reconciliation, Note 2, p. 11.
D. Equity, asset values, and other obligations
Stockholders’ equity is the accounting value left for owners after liabilities and the separately reported redeemable interest. The following bridge explains the first-half change in Corpay’s own stockholders’ equity.
| Equity movement; US$ millions | First half 2026 |
|---|---|
| Opening Corpay stockholders’ equity | 3,883.864 |
| Profit attributable to Corpay | 598.373 |
| Compensation paid in shares | 59.509 |
| Common-share issuance | 86.426 |
| Currency and derivative movements recorded outside profit, net | 35.603 |
| Treasury-share additions | -1,116.076 |
| Mastercard redemption-value adjustment | -5.815 |
| Closing Corpay stockholders’ equity | 3,541.884 |
Paid-in capital increased by $145.934 million, principally through stock compensation and issuance. Retained earnings increased by $592.558 million: profit less the Mastercard redemption adjustment. The $35.603 million improvement recorded outside profit combines a $48.363 million after-tax derivative gain and a $12.760 million currency-translation loss, including reclassifications. Ordinary noncontrolling equity adds $46.068 million to reach total equity of $3,587.952 million.
The balance sheet includes Mastercard’s redeemable interest separately. At June 30, US$24,322.215 million of liabilities + US$314.000 million of redeemable interest + US$3,587.952 million of equity = US$28,224.167 million of assets. At December 31, the corresponding check is US$22,179.458 million + US$302.000 million + US$3,926.677 million = US$26,408.135 million.
Goodwill reconciles in US$ millions: opening 7,564.822 − Maintenance reclassification of 194.287 − dispositions of 214.518 + acquisition-accounting adjustments of 2.247 − currency translation of 8.286 = closing 7,149.978. Moving an asset into “held for sale” changes where it appears; it does not itself create cash or an impairment loss.
The disclosed principal-payment schedule, excluding receivables financing, totals $8,360.630 million: $2,175.858 million in the remainder of 2026; $112.004 million in 2027; $153.254 million in 2028; $194.504 million in each of 2029 and 2030; and $5,530.506 million thereafter. Deducting $37.099 million of debt discounts and issuance costs produces the $8,323.531 million carrying amount. The separate facility maturity dates and the disclosure gap are discussed in section 6.
Sources: June 2026 Form 10-Q, pp. 1 and 4; Notes 1, 7, 8 and 14.
SEC XBRL facts were checked by accession, date range, taxonomy, and units against the statements. The revenue facts cover all reported revenue, including amounts outside ordinary customer-contract revenue accounting. Consolidated net income used in the cash statement was distinguished from profit attributable to Corpay. Quarter facts cover April–June; first-half facts cover January–June. Dollar amounts originally stated in thousands were converted to millions; rounding may affect displayed totals.
Source: SEC Corpay company facts, facts associated with accession 0001175454-26-000050, checked against the selected filing.
This report provides information about Corpay’s business and financial statements. It is not investment advice.