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Corpay Earnings Beat Estimates in Q3, Revenues Increase 14% Y/Y
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Key Takeaways
CPAY's Q3 EPS of $5.7 beat estimates by 1.2% and grew 14% y/y.
Revenues grew 13.9% to $1.2B, driven by strength in vehicle and corporate payments.
CPAY raised the 2025 guidance for revenues and adjusted net income per share.
Corpay, Inc. (CPAY - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
CPAY’s earnings per share of $5.7 beat the consensus estimate by 1.2% and rose 14% year over year. The total revenues of $1.2 billion surpassed the consensus estimate by a slight margin and gained 13.9% from the year-ago quarter.
The stock has lost 25% over the past year against its industry's marginal 8.8% decline and against 16.5% growth of the Zacks S&P 500 composite.
Vehicle payments’ revenues of $553.2 million increased 9% from the year-ago quarter. This figure beat our estimate of $550.3 million. In Brazil, growth in 6% tag and expansion of the company’s extended network, including a new card debt offering, drove this segment’s growth. Performance was impressive across the U.K., Europe and ANZ as CPAY witnessed strong sales in those regions.
Revenues from corporate payments amounted to $409.7 million, up 27% year over year, surpassing our estimate of $398.5 million. Strength in the payables business, fueled by robust execution on Paymerang synergies, and solid progress implementing and enhancing new full AP customers, drove this segment’s performance.
Lodging payments posted revenues of $127 million, declining 5% from the year-ago quarter. The reported figure missed our projection of $138 million.
CPAY’s Margins
EBITDA increased 12.5% from the year-ago quarter to $627.5 million, missing our estimation of $630.6 million. The EBITDA margin was 57.7%, down 10 basis points from the year-ago quarter.
Balance Sheet & Cash Flow of CPAY
Corpay exited the third quarter of 2025 with cash and cash equivalents of $2 billion compared with $2.2 billion in the second quarter of 2025. The long-term debt was $5.8 billion compared with $5.9 billion in the preceding quarter.
CPAY utilized $378.9 million in cash from operating activities in the quarter. Capital expenditure amounted to $50.9 million.
Corpay’s 2025 Outlook
For 2025, CPAY raised the revenue guidance to $4.51-$4.53 billion compared with the preceding quarter’s view of $4.41-$4.49 billion. The guided range is higher than the Zacks Consensus Estimate of $4.46 billion.
The guidance for adjusted net income per diluted share was raised to $21.14-$21.34 compared with $20.86-$21.26 from the preceding quarter. The guided range is higher than the Zacks Consensus Estimate of $21.10.
The company’s adjusted earnings per share of $10.11 beat the Zacks Consensus Estimate by 24.7% and increased 52% from the year-ago quarter. Revenues of $3.5 billion outpaced the consensus estimate by 1.1%. The metric gained 1.1% year over year.
Gartner, Inc. (IT - Free Report) posted third-quarter 2025 results.
The company’s adjusted earnings per share of $2.76 beat the Zacks Consensus Estimate by 14.5% and increased 4.4% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate by a slight margin and improved 2.7% year over year.
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Corpay Earnings Beat Estimates in Q3, Revenues Increase 14% Y/Y
Key Takeaways
Corpay, Inc. (CPAY - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
CPAY’s earnings per share of $5.7 beat the consensus estimate by 1.2% and rose 14% year over year. The total revenues of $1.2 billion surpassed the consensus estimate by a slight margin and gained 13.9% from the year-ago quarter.
The stock has lost 25% over the past year against its industry's marginal 8.8% decline and against 16.5% growth of the Zacks S&P 500 composite.
Corpay, Inc. Price and EPS Surprise
Corpay, Inc. price-eps-surprise | Corpay, Inc. Quote
Corpay’s Segmental Results
Vehicle payments’ revenues of $553.2 million increased 9% from the year-ago quarter. This figure beat our estimate of $550.3 million. In Brazil, growth in 6% tag and expansion of the company’s extended network, including a new card debt offering, drove this segment’s growth. Performance was impressive across the U.K., Europe and ANZ as CPAY witnessed strong sales in those regions.
Revenues from corporate payments amounted to $409.7 million, up 27% year over year, surpassing our estimate of $398.5 million. Strength in the payables business, fueled by robust execution on Paymerang synergies, and solid progress implementing and enhancing new full AP customers, drove this segment’s performance.
Lodging payments posted revenues of $127 million, declining 5% from the year-ago quarter. The reported figure missed our projection of $138 million.
CPAY’s Margins
EBITDA increased 12.5% from the year-ago quarter to $627.5 million, missing our estimation of $630.6 million. The EBITDA margin was 57.7%, down 10 basis points from the year-ago quarter.
Balance Sheet & Cash Flow of CPAY
Corpay exited the third quarter of 2025 with cash and cash equivalents of $2 billion compared with $2.2 billion in the second quarter of 2025. The long-term debt was $5.8 billion compared with $5.9 billion in the preceding quarter.
CPAY utilized $378.9 million in cash from operating activities in the quarter. Capital expenditure amounted to $50.9 million.
Corpay’s 2025 Outlook
For 2025, CPAY raised the revenue guidance to $4.51-$4.53 billion compared with the preceding quarter’s view of $4.41-$4.49 billion. The guided range is higher than the Zacks Consensus Estimate of $4.46 billion.
The guidance for adjusted net income per diluted share was raised to $21.14-$21.34 compared with $20.86-$21.26 from the preceding quarter. The guided range is higher than the Zacks Consensus Estimate of $21.10.
Currently, CPAY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Avis Budget Group, Inc. (CAR - Free Report) reported impressive third-quarter 2025 results.
The company’s adjusted earnings per share of $10.11 beat the Zacks Consensus Estimate by 24.7% and increased 52% from the year-ago quarter. Revenues of $3.5 billion outpaced the consensus estimate by 1.1%. The metric gained 1.1% year over year.
Gartner, Inc. (IT - Free Report) posted third-quarter 2025 results.
The company’s adjusted earnings per share of $2.76 beat the Zacks Consensus Estimate by 14.5% and increased 4.4% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate by a slight margin and improved 2.7% year over year.