Mon, May 12, 9:04 PM (42 days ago)
**Corpay, Inc. (CPAY) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,005.7 million, up 7.5% YoY, driven by organic growth (8%) and acquisitions (5%). - **Net Income:** $243.2 million, a 5.9% increase YoY. - **Earnings per Share (EPS):** $3.40 diluted, up from $3.12 in Q1 2024. - **Operating Income:** $427.1 million, a 7.5% increase YoY. - **Cash Flow:** Net cash used in operating activities was $(74.2) million, compared to $350.2 million in Q1 2024. **Profit Margins:** - **Operating Margin:** 42.5%. - **Net Margin:** 24.2%. **Cash Flow:** - **Operating Cash Flow:** $(74.2) million, impacted by changes in working capital. - **Investing Cash Flow:** $(183.9) million, increased due to acquisitions. - **Financing Cash Flow:** $142.3 million, improved due to reduced stock repurchases and increased borrowings. **Earnings Changes:** - **Revenue Growth:** Driven by organic growth and acquisitions, partially offset by macroeconomic factors. - **Operating Expenses:** Increased due to acquisitions, higher variable expenses, and investments in growth. **Quarterly Performance Discussion:** - **Vehicle Payments:** Revenues decreased by 1.4% due to foreign exchange rates, disposition of merchant solutions, and fuel price impacts. - **Corporate Payments:** Revenues increased by 32.9% due to organic growth and acquisitions. - **Lodging Payments:** Revenues decreased by 1.0% due to weakness in the airline solution. - **Other:** Revenues decreased by 13.7% due to lower volume in payroll and gift card businesses. **Trends and Uncertainties:** - **Macroeconomic Factors:** Negative impact of approximately $51 million due to foreign exchange rates, fuel prices, and fuel price spreads. - **Acquisitions:** Continued focus on strategic acquisitions to drive growth. - **Interest Rates:** Exposure to market risk changes in interest rates, partially offset by interest income on cash balances. **Future Operations Impact:** - **Liquidity:** Approximately $2.8 billion in total liquidity, consisting of $1.2 billion available under the Credit Facility and $1.6 billion in unrestricted cash. - **Stock Repurchase Program:** $1.2 billion remaining authorization for future repurchases. - **Strategic Partnerships:** Expanded partnership with Mastercard and minority investment in AvidXchange. **Segment Performance:** - **Vehicle Payments:** Revenues $487.1 million, operating income $230.2 million. - **Corporate Payments:** Revenues $352.7 million, operating income $135.9 million. - **Lodging Payments:** Revenues $110.2 million, operating income $43.3 million. - **Other:** Revenues $55.7 million, operating income $17.7 million. **Conclusion:** Corpay's Q1 2025 performance reflects strong organic growth and strategic acquisitions, despite macroeconomic headwinds. The company remains focused on driving operational efficiencies and pursuing growth opportunities.