Corpay, Inc.

• Q2 2026 revenue $1,338.8M, +21% reported / +10% organic (vs $1,102.0M).
• Segments (Q2 2026): Corporate Payments $548.7M (41%), Vehicle Payments $580.2M (43%), Lodging $123.2M (9%), Other $86.7M (6%).
• Geography (Q2 2026): US $600.2M (45%), Brazil $217.2M (16%), rest international (~39%).
• Adjusted EBITDA $767.2M (+24%); adjusted net income $464.4M (+27%); adjusted EPS $7.00 (+36%).
• GAAP net income $248.3M (-13%); GAAP diluted EPS $3.70 (-7%) — the $100M FTC charge.
• FY26 guidance (raised): revenue $5.29–5.33B (+17% midpoint), adjusted EPS $27.15–27.55 (+28% midpoint).
• Q3 2026 guidance: revenue ~$1.355B (+16%), adjusted EPS $7.15 (+26%).

Corpay sells closed-loop B2B payment networks — corporate/virtual cards and cross-border FX (Corporate Payments), fleet/fuel/vehicle spend cards (Vehicle Payments), and lodging payment networks — earning a net take-rate on spend that flows through those rails, not a volume-only processor fee.

• monetization model: Transaction/volume fees, interchange/merchant discounts, FX spreads, account/service and software/AP-automation subscriptions; no one-time hardware. (FY2024 10-K, Item 1 Business; accession 0001175454-25-000008; sec.gov )
• revenue mix: Vehicle Payments ~50%, Corporate Payments ~29%, Lodging Payments ~12%, Other ~9% (FY2024 10-K, Segment Information; same accession URL).
• who pays: Business customers—fleet operators, corporate AP/treasury, hotel/travel firms; merchants/network partners also pay discounts/interchange. Economic buyer is corporate fleet/AP/finance. (FY2024 10-K, Business/Risk Factors; same URL).
• margin_value_capture: Gross margin ~74%, operating margin ~37% (FY2024 10-K, MD&A/Consolidated Statements; same URL). Value accrues via transaction spreads, fees, float, recurring integrations.

• customer classes: Fleet operators, Corporate AP/treasury teams, Hotel/travel businesses, Merchants/payment partners, SMBs. (FY2024 10-K, Business; same URL).

Corpay, Inc. (NYSE: CPAY; formerly FLEETCOR Technologies, Inc.; SEC CIK 0001393818).

CPAY operates as a global corporate payments company. It monetizes the movement of business spending rather than selling a standalone software license. The economic engine is a combination of:

1. Spread economics on fuel, lodging, and cross-border payments — CPAY buys or acquires at one price and sells/settles at another price.
2. Transaction and service fees on card, ACH, wire, and virtual-card transactions.
3. Subscription/telematics fees in the vehicle-payments segment.
4. Float and program fees on prepaid and payroll/gift programs, reported mainly in the “Other” segment.

The FY2024 10-K reports segment revenues in Note 13, “Segment Information” [1].

CPAY’s monetization source is concentrated in transaction-linked revenue, not long-term subscription contracts. The filing’s business section describes revenue as derived primarily from:

• Fuel-card revenue from the difference between the price charged to the customer and the price paid to the fuel merchant.
• Corporate-payments revenue from foreign-exchange spreads, payment fees, and card-network interchange on accounts-payable and cross-border products.
• Lodging revenue from negotiated room rates, commissions, and payment processing on certain merchant/OTA booking flows.
• Prepaid and other revenue from program management, gift-card processing, payroll cards, and related fees.

The 10-K’s business and segment disclosures describe customer classes rather than named top accounts. The evidence-backed archetypes from the filing [1]:

Q2 2026 revenue $1,338.8M (+21% reported / +10% organic) vs $1,102.0M; GAAP operating income $472.3M (35.3% margin); GAAP net income attributable $248.3M (−13%); adjusted EBITDA $767.2M (57.3% margin); adjusted EPS $7.00 (+36%). FY2025 10-K revenue $4,528.4M. Sources: 10-Q period ended 2026-06-30; 8-K EX-99.1 2026-08-05; companyfacts Revenues FY2025.

Digital Trust > Payments & Financial Workflow > closed-loop corporate / fleet virtual-card network as a payments toll-road. Corpay monetizes a proprietary FX settlement network (cross-border B2B), a universal fleet-card acceptance network, and a lodging payment network — earning a spread on every transaction that flows through its closed loop.

Digital Trust > Payments & Financial Workflow > closed-loop corporate / fleet virtual-card network as a payments toll-road. The growth engine is Corporate Payments (41% of Q2 revenue, +16% organic); the cash-cow is Vehicle Payments (43%), which also absorbed the $100M FTC consent-order charge.

1. Toll-rate = adjusted-EBITDA margin 57.3%. Q2 2026 adjusted EBITDA $767.2M on revenue $1,338.8M = 57.3% (vs $620.6M / $1,102.0M = 56.3% a year ago). For every $1 of gross payments revenue flowing through the network, Corpay keeps ~$0.57 of adjusted EBITDA — software-like economics on a transactional network.
2. M&A vs organic bridge in Corporate Payments. Q2 2026 CP revenue +$161.4M YoY (+41.7%) on a +16% organic base → organic ≈ $387.3M × 16% ≈ $62.0M, leaving ≈ $99.4M (~26 pts) from the AvidXchange partnership interest + Alpha acquisition. Growth is being partly bought (M&A), not purely won (network).
3. Fuel-price sensitivity = the disconfirming constraint. FY26 guidance explicitly assumes a $4.02/gal weighted-average US fuel price (June 2026 EIA STEO) with flat fuel-price spreads. Vehicle Payments (43% of revenue) scales with fuel price × spread — a 10% fuel-price decline to ~$3.62/gal would compress the price-linked component of Vehicle Payments revenue by ~10% (≈ $58M/quarter ≈ 4.3% of total). The fleet toll is structurally exposed to fuel-price normalization it does not control.
4. Cost of the regulatory moat. Q2 2026 recorded a $100M preliminary FTC settlement (Bureau of Consumer Protection) = ~7.5% of Q2 revenue, and the GAAP net income -13% YoY ($248.3M) is the direct result. The same regulator that licenses the toll can tax it.
5. Balance-sheet toll. Debt refinanced (revolver raised to $3.7B), exited Q2 at 2.55× leverage; 1M shares repurchased for $321M (~$321/sh avg); ~66M diluted shares outstanding.

• Q2 2026 revenue $1,338.809M; Corporate Payments $548.724M (41%); Vehicle Payments $580.209M (43%); Lodging $123.183M (9%); Other $86.693M (6%). Geography: US $600.2M (45%), Brazil $217.2M (16%), UK $202.2M (15%), Other $319.2M (24%). Source: 10-Q "Revenues, net by Segment/Geography".
• Corporate Payments organic +16% (5th consecutive double-digit organic quarter, CEO Ron Clarke, EX-99.1). Reported CP +$161.4M YoY; organic ≈ $387.3M × 16% ≈ $62.0M, leaving ≈ $99.4M (~26 pts) from Alpha (Q4 2025) + AvidXchange partnership interest — growth is partly bought.
• GAAP operating income by segment Q2 2026: Corporate Payments $199.642M (36.4% OI margin); Vehicle Payments $190.053M (32.8%); Lodging $49.500M (40.2%). Vehicle Payments "Other operating, net" $100.800M is essentially the entire $100M FTC charge sitting in the fleet segment. VP OI ex that charge ≈ $290.9M / 50.1% margin. Source: 10-Q segment table.
• FTC: CID Oct 2017 → NDGA lawsuit Dec 20, 2019 (FTC v. FleetCor, 19-cv-05727) on US direct fuel-card advertising. Eleventh Circuit affirmed Jan 6, 2026; en banc denied May 5, 2026. July 1, 2026 staff-level proposed consent order; $100M charge recorded; still subject to FTC Commissioners + District Court approval; EX-99.1 says process expected to conclude later in 2026. Source: 10-Q Note 12.
• Alpha Group International plc acquired Oct 31, 2025 at £42.50/share, aggregate ≈ £1.8B / $2.4B (consideration ~$2.1B net of $4.5B cash/restricted cash acquired). Customer/vendor intangibles $946.1M. Source: 10-Q Note 6.
• AvidXchange: May 2025 TPG partnership; Oct 2025 close; Corpay invested ~$578M for ~35% of a limited partnership at ~$1.9B EV, LP used ~$450M of debt; TPG ~56%. Call right 33 months after close (~July 2028) at ~2.5× invested capital on remaining equity; if unused and TPG sells within 15 months, Corpay guarantees ~1.6× invested capital. Source: 10-Q Note 6.
• Maintenance / epyx: June 2026 definitive agreement to sell the Vehicle Payments Maintenance business (UK epyx + r2c Online + Business Gateway to OEConnection / Francisco Partners, IR 2026-08-05). Expected proceeds ~£600M / ~$800M before cash acquired; ~$194.3M goodwill moved to held-for-sale; expected pretax gain $460–$515M; close later in 2026 pending UK + Australian regulatory approval. IR: cash-EPS neutral because proceeds go to buybacks. Source: 10-Q Note 15 + Corpay IR 2026-08-05.
• Capital: Q2 diluted shares 66.325M; 1.0M shares bought in Q2 for $321M; H1 buybacks 3.4M shares / $1.1B; $1.4B remaining authorization through Dec 31, 2026. Eighteenth amendment (May 21, 2026) revolver to $3.7B, TLA $3.3B, TLA/revolver maturity May 21, 2031. EX-99.1 leverage 2.55×. Outstanding shares 65,655,113 at June 30, 2026.
• Comp overlay (not in the 08-29 note): July 22, 2026 8-K Item 5.02 — Clarke 300,000 PSUs and Netto 28,213 PSUs, earned on five separate closes at $425 / $450 / $475 through Aug 31, 2028.

Public inputs (EX-99.1 Exhibit 2 + 10-Q):

1. Take-rate gap (the constraint). $94,635M × 0.12% = $113.6M of Q2 revenue that would have printed at last year's 0.70% take-rate. $113.6M / $1,338.8M = 8.5% of company revenue. Volume +70% is not the same as economic capture +70%. Implied revenue at 0.70% would have been $662.4M vs actual $548.9M.
2. Organic vs bought CP growth. Reported CP +$161.4M. Organic at +16% on $387.3M = $62.0M. Residual $99.4M (~26 pts) is Alpha + Avid — consistent with the 08-29 note, still true after reading the 10-Q purchase accounting.
3. Cost of the FX moat. Alpha $2.4B ÷ annualized CP revenue ($548.7M × 4 = $2.195B) = 1.09× one year of Corporate Payments revenue to buy the UK/EU B2B FX / alternative-bank-account rail. Customer-relationship intangibles $946M imply the acquired book is the asset, not proprietary processing IP (tech intangibles only $22.6M).
4. Avid call cost. Remaining 65% equity × 2.5× on ~$1.651B implied total equity ($578M / 0.35) ≈ $2.68B cash if the 2028 call is exercised — a second, larger check than Alpha, 33 months out. Not a 2026 P&L item; it is the published price of consolidating the AP-automation adjacency.
5. Regulatory tax on the fleet toll. $100M / $1,338.8M = 7.5% of Q2 revenue; $100M / $248.3M GAAP NI = 40% of quarterly earnings. Because $100.8M of Vehicle Payments other-operating expense matches the charge, the consent order is a fleet-card advertising tax, not a Corporate Payments tax.