We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Acquisitions Aid Corpay Amid Seasonality & Low Liquidity
Read MoreHide Full Article
Key Takeaways
CPAY beat Q4 estimates with EPS up 12.7% and revenues rising 20.7% y/y.
Corpay expanded via the Alpha Group deal and prior buyouts to scale corporate payments.
CPAY faces seasonal headwinds and ended Q4 with a 0.98 current ratio, below the industry.
Corpay, Inc. (CPAY - Free Report) reported better-than-expected fourth-quarter 2025 results. CPAY’s earnings per share of $6.04 beat the consensus mark by 1.5% and rose 12.7% year over year. Total revenues of $1.2 billion marginally exceeded the consensus mark and increased 20.7% from the year-ago quarter.
How Is Corpay Faring?
CPAY utilizes a multi-channel approach to actively market and sell its solutions to current and prospective customers. This go-to-market strategy includes a comprehensive digital channel, direct sales forces and strategic partner relationships. The company expands online, end-to-end capabilities, wherein customers can buy, onboard and manage their accounts on their own. The salespeople of CPAY become more efficient by improving their prospecting efforts via leads sourced digitally through the omnichannel approach.
The company acquires and invests consistently, both domestically and globally, to increase its customer base, workforce and operational capabilities, and expand the array of services across various industries. CPAY announced its agreement to acquire Alpha Group International, as it is a highly complementary, fast-growing corporate payments asset with good prospects.
Corpay acquired GPS Capital Markets in December 2024, expanding and scaling its corporate payments business. Paymerang was acquired by the company in the same year, strengthening Corpay’s position in the corporate payments market by propelling growth and profitability in its Corporate Payments segment. These buyouts marked a significant expansion of the company's product portfolio and geographic presence.
Meanwhile, seasonality affects Corpay’s fuel card, workforce payment solutions and gift card businesses. The company’s fuel card and workforce payment solutions businesses are hindered during the first and fourth quarters as a result of the prevailing weather conditions, U.S. holidays, Christmas celebration in Russia in January, lower business activities in Brazil due to summer break and the Carnival celebration.
Corpay’s current ratio (a measure of liquidity) at the end of the fourth quarter of 2025 was 0.98, lower than the industry's 1.14. A current ratio of less than 1 indicates that CPAY might be inefficient in its ability to pay off short-term obligations.
TRU’s quarterly adjusted EPS of $1.07 surpassed the consensus mark by 3.9%. The metric grew 10.3% year over year. Total revenues of $1.2 billion beat the consensus mark by 3% and rose 13% from the year-ago quarter.
EFX posted $2.09 in EPS, beating the Zacks Consensus Estimate by 2.2%. This marked a 1.4% dip from the fourth quarter of 2025. The company recorded $1.6 billion in its top line, surpassing the consensus estimate by 1.3%. Revenues spiked 9.1% from the year-ago quarter.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Acquisitions Aid Corpay Amid Seasonality & Low Liquidity
Key Takeaways
Corpay, Inc. (CPAY - Free Report) reported better-than-expected fourth-quarter 2025 results. CPAY’s earnings per share of $6.04 beat the consensus mark by 1.5% and rose 12.7% year over year. Total revenues of $1.2 billion marginally exceeded the consensus mark and increased 20.7% from the year-ago quarter.
How Is Corpay Faring?
CPAY utilizes a multi-channel approach to actively market and sell its solutions to current and prospective customers. This go-to-market strategy includes a comprehensive digital channel, direct sales forces and strategic partner relationships. The company expands online, end-to-end capabilities, wherein customers can buy, onboard and manage their accounts on their own. The salespeople of CPAY become more efficient by improving their prospecting efforts via leads sourced digitally through the omnichannel approach.
The company acquires and invests consistently, both domestically and globally, to increase its customer base, workforce and operational capabilities, and expand the array of services across various industries. CPAY announced its agreement to acquire Alpha Group International, as it is a highly complementary, fast-growing corporate payments asset with good prospects.
Corpay acquired GPS Capital Markets in December 2024, expanding and scaling its corporate payments business. Paymerang was acquired by the company in the same year, strengthening Corpay’s position in the corporate payments market by propelling growth and profitability in its Corporate Payments segment. These buyouts marked a significant expansion of the company's product portfolio and geographic presence.
Meanwhile, seasonality affects Corpay’s fuel card, workforce payment solutions and gift card businesses. The company’s fuel card and workforce payment solutions businesses are hindered during the first and fourth quarters as a result of the prevailing weather conditions, U.S. holidays, Christmas celebration in Russia in January, lower business activities in Brazil due to summer break and the Carnival celebration.
Corpay’s current ratio (a measure of liquidity) at the end of the fourth quarter of 2025 was 0.98, lower than the industry's 1.14. A current ratio of less than 1 indicates that CPAY might be inefficient in its ability to pay off short-term obligations.
Earnings Snapshot
TransUnion (TRU - Free Report) reported impressive fourth-quarter 2025 results.
TRU’s quarterly adjusted EPS of $1.07 surpassed the consensus mark by 3.9%. The metric grew 10.3% year over year. Total revenues of $1.2 billion beat the consensus mark by 3% and rose 13% from the year-ago quarter.
Equifax Inc. (EFX - Free Report) registered impressive fourth-quarter 2025 results.
EFX posted $2.09 in EPS, beating the Zacks Consensus Estimate by 2.2%. This marked a 1.4% dip from the fourth quarter of 2025. The company recorded $1.6 billion in its top line, surpassing the consensus estimate by 1.3%. Revenues spiked 9.1% from the year-ago quarter.