Corpay Reports Fourth Quarter and Full Year 2024 Financial Results

Atlanta, Ga., February 5, 2025 — Corpay, Inc. (NYSE: CPAY), a corporate payments company, today reported financial results for its fourth quarter and year ended December 31, 2024.

“We had a great finish to 2024, delivering fourth quarter organic revenue growth of 12% and adjusted EPS growth of 21%, which are both above our mid-term growth targets,” said Ron Clarke, chairman and chief executive officer, Corpay, Inc. “We delivered Corporate Payments growth of 20% for the full year, and we made meaningful advances to scale our Corporate Payments business, with two significant acquisitions during the year.”

•Revenues increased 10% to $1,034.4 million in the fourth quarter of 2024, compared with $937.3 million in the fourth quarter of 2023.

•Net income attributable to Corpay decreased 4% to $246.0 million in the fourth quarter of 2024, compared with $255.9 million in the fourth quarter of 2023.

•Net income per diluted share attributable to Corpay decreased 1% to $3.44 in the fourth quarter of 2024, compared with $3.48 per diluted share in the fourth quarter of 2023.

•Fourth quarter net income and net income per diluted share attributable to Corpay include a gain on sale of business, goodwill impairment charge and a discrete non-cash tax provision that on a net basis reduced net income by approximately $37 million, or $0.52 of earnings per share.

•Organic revenue growth was 12% in the fourth quarter of 2024.

•Adjusted EBITDA1 increased 12% to $571.2 million in the fourth quarter of 2024, compared to $508.1 million in the fourth quarter of 2023.

•Adjusted net income attributable to Corpay1 increased 18% to $383.2 million in the fourth quarter of 2024, compared with $326.1 million in the fourth quarter of 2023.

•Adjusted net income per diluted share attributable to Corpay1 increased 21% to $5.36 in the fourth quarter of 2024, compared with $4.44 per diluted share in the fourth quarter of 2023.

“Each business segment delivered accelerating revenue growth with fourth quarter organic revenue growth hitting its high water mark over the past 5 quarters. Our strong core business performance enabled record adjusted earnings per diluted share of $5.36 for the quarter,” said Tom Panther, chief financial officer, Corpay, Inc. “Improving sales, retention and same store sales trends during the quarter positions us very well for continued growth in 2025.”

•Revenues increased 6% to $3,974.6 million in 2024, compared with $3,757.7 million in 2023.

•Net income attributable to Corpay increased 2% to $1,003.7 million in 2024, compared with $981.9 million in 2023.

•Net income per diluted share attributable to Corpay increased 6% to $13.97 in 2024, compared with $13.20 per diluted share in 2023.

•2024 net income and net income per diluted share attributable to Corpay include a gain on sale of business, goodwill impairment charge and a discrete non-cash tax provision that on a net basis reduced net income by approximately $37 million, or $0.52 of earnings per share.

•Adjusted EBITDA1 increased 7% to $2,129.0 million in 2024, compared with $1,994.2 million in 2023.

•Adjusted net income attributable to Corpay1 increased 8% to $1,364.1 million in 2024, compared with $1,258.6 million in 2023.

•Adjusted net income per diluted share attributable to Corpay1 increased 12% to $19.01 in 2024, compared with $16.92 in 2023.

“2024 was a very successful year for Corpay. We rebranded and simplified the Company, and grew sales/bookings over 20%, better positioning the Company for the mid-term,” said Ron Clarke. “We also deployed over $2.5 billion in capital, acquiring two Corporate Payments companies and repurchasing $1.3 billion of Corpay stock while maintaining a leverage ratio of 2.75x as of year end.”

“Our 2025 outlook is to deliver sales growth of approximately 20%, with revenue and adjusted earnings per diluted share growth of 10% to 12%. Our earnings growth outlook is adversely impacted due to a worsening foreign exchange rates, fuel price, and interest rate outlook since our November earnings call. Looking beyond the macro, leading the way is our Corporate Payments segment where we’re projecting organic revenue to grow in the high teens,” said Tom Panther. “Additionally, we expect to generate approximately $1.5 billion in free cash flow in 2025 that provides us meaningful fire power to execute our capital allocation plans.”

For fiscal year 2025, Corpay, Inc.'s updated financial guidance1 is as follows:

•Total revenues between $4,350 million and $4,450 million;

•Net income between $1,174 million and $1,224 million;

•Net income per diluted share between $16.50 and $17.00;

•Adjusted net income between $1,482 million and $1,532 million; and

•Adjusted net income per diluted share between $20.75 and $21.25.

Corpay’s guidance assumptions for the full year are as follows:

•Weighted average U.S. fuel prices equal to $3.24 per gallon;

•Fuel price spreads flat with the 2024 average;

•Foreign exchange rates equal to the January 2025 forward consensus;

•Interest expense between $350 million and $380 million;

•Approximately 72 million fully diluted shares outstanding;

•An effective tax rate of approximately 25.5% to 26.5%; and

•No impact related to material acquisitions not closed.

“First quarter organic revenue growth is expected to be 8% to 10% and adjusted EPS is expected to grow 9% to 11%. Our earnings growth outlook for the first quarter is adversely impacted approximately 7% compared to the prior year due to unfavorable movements in foreign exchange rates, fuel prices and tax rate. Revenue growth is expected to build over the remaining quarters as we execute our business plans and lap the higher foreign currency exchange rates from the first half of last year,” said Tom Panther.

The Company will host a conference call to discuss fourth quarter and full year 2024 financial results today at 5:00 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Tom Panther, chief financial officer and Jim Eglseder, investor relations. The conference call will be webcast live from the Company's investor relations website at http://investor.corpay.com. The conference call can also be accessed live over the phone by dialing (877)-423-9813 or (201)-689-8573; the Conference ID is 13751017. A replay will be available one hour after the call and can be accessed by dialing (844)-512-2921 or (412)-317-6671 for international callers; the replay conference ID is 13751017. The replay will be available through Wednesday, February 12, 2025.. Prior to the conference call, the Company will post supplemental financial information that will be discussed during the call and live webcast.

This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about Corpay’s beliefs, assumptions, expectations and future performance, are forward-looking statements. Forward-looking statements can be identified by the use of words such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project” or “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or other comparable terminology.

These forward-looking statements are not a guarantee of performance, and you should not place undue reliance on such statements. We have based these forward-looking statements largely on preliminary information, internal estimates and management assumptions, expectations and plans about future conditions, events and results. Forward-looking statements are subject to many uncertainties and other variable circumstances, such as our ability to successfully execute our strategic plan, manage our growth and achieve our performance targets; the impact of macroeconomic conditions, including any recession or economic downturn that has occurred or may occur in the future, and whether expected trends, including retail fuel prices, fuel price spreads, fuel transaction patterns, electric vehicle, retail lodging price, foreign exchange rates and interest rates trends develop as anticipated and we are able to develop successful strategies in light of these trends; our ability to attract new and retain existing partners, fuel merchants, and lodging providers, their promotion and support of our products, and their financial performance; our ability to successfully manage the derivative financial instruments that we use in our Cross-Border solution to reduce our exposure to various market risks, including changes in foreign exchange rates; the failure of management assumptions and estimates, as well as differences in, and changes to, economic, market, interest rate, interchange fees, foreign exchange rates, and credit conditions, including changes in borrowers’ credit risks and payment behaviors; the risk of higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to successfully manage our credit risks and the sufficiency of our allowance for expected credit losses; our ability to securitize our trade receivables; the occurrence of fraudulent activity, data breaches or failures of our information security controls or cybersecurity-related incidents that may compromise our systems or customers’ information; any disruptions in the operations of our computer systems and data centers; the international operational and political risks and compliance and regulatory risks and costs associated with international operations; the impact of international conflicts, including between Russia and Ukraine, as well as within the Middle East, on the global economy or our business and operations; our ability to develop and implement new technology, products, and services; any alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; the regulation, supervision, and examination of our business by foreign and domestic governmental authorities, as well as litigation and regulatory actions, including the lawsuit filed by the Federal Trade Commission (FTC); the impact of regulations and related requirements relating to privacy, information security and data protection; derivative and hedging activities; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering (AML) and anti-terrorism financing laws; changes in our senior management team and our ability to attract, motivate and retain qualified personnel consistent with our strategic plan; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; the risks of mergers, acquisitions and divestitures, including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; our ability to remediate material weaknesses and the ongoing effectiveness of internal control over financial reporting, as well as the other risks and uncertainties identified under the caption "Risk Factors" in the 2023 Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024 and subsequent filings with the SEC made by us. These factors could cause our actual results and experience to differ materially from any forward-looking statement made herein. The forward-looking statements included in this press release are made only as of the date hereof and we do not undertake, and specifically disclaim, any obligation to update any such statements as a result of new information, future events or developments, except as specifically stated or to the extent required by law. You may access Corpay’s SEC filings for free by visiting the SEC web site at www.sec.gov.

This press release includes non-GAAP financial measures, which are used by the Company as supplemental measures to evaluate its overall operating performance. The Company’s definitions of the non-GAAP financial measures used herein may differ from similarly titled measures used by others, including within our industry. By providing these non-GAAP financial measures, together with reconciliations to the most directly comparable GAAP financial measures, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives. See the appendix for additional information regarding these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure.

The Company refers to free cash flow, cash net income and adjusted net income attributable to Corpay interchangeably, a non-GAAP financial measure. Adjusted net income attributable to Corpay is calculated as net income attributable to Corpay, adjusted to eliminate (a) non-cash stock based compensation expense related to stock based compensation awards, (b) amortization of deferred financing costs, discounts, intangible assets, amortization of the premium recognized on the purchase of receivables, and amortization attributable to the Company's noncontrolling interest, (c) integration and deal related costs, and (d) other non-recurring items, including unusual credit losses, certain discrete tax items, the impact of business dispositions, impairment losses, asset write-offs, restructuring costs, loss on extinguishment of debt, taxes associated with stock-based compensation programs, losses and gains on foreign currency transactions and legal settlements and related legal fees. We adjust net income for the tax effect of adjustments using our effective income tax rate, exclusive of certain discrete tax items. We calculate adjusted net income attributable to Corpay and adjusted net income per diluted share attributable to Corpay to eliminate the effect of items that we do not consider indicative of our core operating performance.

Adjusted net income attributable to Corpay and adjusted net income per diluted share attributable to Corpay are supplemental measures of operating performance that do not represent and should not be considered as an alternative to net income, net income per diluted share or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP. We believe it is useful to exclude non-cash share based compensation expense from adjusted net income because non-cash equity grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time and share based compensation expense is not a key measure of our core operating performance. We also believe that amortization expense can vary substantially from company to company and from period to period depending upon their financing and accounting methods, the fair value and average expected life of their acquired intangible assets, their capital structures and the method by which their assets were acquired; therefore, we have excluded amortization expense from our adjusted net income. Integration and deal related costs represent business acquisition transaction costs, professional services fees, short-term retention bonuses and system migration costs, etc., that are not indicative of the performance of the underlying business. We also believe that certain expenses, discrete tax items, gains on business disposition, recoveries (e.g. legal settlements, write-off of customer receivable, etc.), gains and losses on investments, taxes related to stock-based compensation programs and impairment losses do not necessarily reflect how our investments and business are performing. We adjust net income for the tax effect of each of these adjustments items using the effective tax rate during the period, exclusive of discrete tax items.

Organic revenue growth is calculated as revenue growth in the current period adjusted for the impact of changes in the macroeconomic environment (to include fuel price, fuel price spreads and changes in foreign exchange rates) over revenue in the comparable prior period adjusted to include or remove the impact of acquisitions and/or divestitures and non-recurring items that have occurred subsequent to that period. We believe that organic revenue growth on a macro-neutral, one-time item, and consistent acquisition/divestiture/non-recurring item basis is useful to investors for understanding the performance of Corpay.

EBITDA is defined as earnings before interest, income taxes, interest expense, net, other expense (income), depreciation and amortization, loss on extinguishment of debt, goodwill impairment, investment loss/gain and other operating, net. Adjusted EBITDA is defined as EBITDA further adjusted for a one-time stock based compensation expense and a deal related termination expense. EBITDA and adjusted EBITDA margin are defined as EBITDA and adjusted EBITDA as a percentage of revenue.

Management uses adjusted net income attributable to Corpay, adjusted net income per diluted share attributable to Corpay, organic revenue growth, EBITDA and adjusted EBITDA:

•as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis;

•for planning purposes, including the preparation of our internal annual operating budget;

•to allocate resources to enhance the financial performance of our business; and

•to evaluate the performance and effectiveness of our operational strategies.

Corpay (NYSE: CPAY) is a global S&P 500 corporate payments company that helps businesses and consumers manage and pay expenses in a simple, controlled manner. Corpay’s suite of modern payment solutions help its customers better manage vehicle-related expenses (e.g. fueling and parking), travel expenses (e.g. hotel bookings) and accounts payable (e.g. paying vendors). This results in our customers saving time and ultimately spending less. Corpay – Payments made easy. For more information, please visit www.corpay.com.

Investor Relations

Jim Eglseder, 770-417-4697

Jim.Eglseder@corpay.com

__________________________________________________________________________________

1 Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1, 5 and 6 attached. Additional supplemental data is provided in Exhibits 2-4. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 7.

 

						Three Months Ended December 31,																		Year Ended December 31,
						2024						2023						% Change						2024						2023						% Change
Revenues, net						$	1,034,431					$	937,320					10		%				$	3,974,589					$	3,757,719					6		%
Expenses:
Processing						228,780						201,459						14		%				869,085						819,908						6		%
Selling						97,514						86,199						13		%				380,906						340,157						12		%
General and administrative						158,176						141,545						12		%				616,874						603,424						2		%
Depreciation and amortization						92,440						83,946						10		%				351,088						336,604						4		%
Goodwill impairment						90,000						—						NM						90,000						—						NM
Gain on disposition of business						(121,310)						—						NM						(121,310)						—						NM
Other operating, net						483						120						NM						789						753						NM
Total operating expense						546,083						513,269						6		%				2,187,432						2,100,846						4		%
Operating income						488,348						424,051						15		%				1,787,157						1,656,873						8		%
Other expenses:
Investment (gain) loss						(27)						26						NM						239						(116)						NM
Other expense (income), net						6,200						(1,513)						NM						13,722						(16,623)						NM
Interest expense, net						94,837						92,041						3		%				383,043						348,607						10		%
Loss on extinguishment of debt						—						—						NM						5,040						—						NM
Total other expense						101,010						90,554						12		%				402,044						331,868						21		%
Income before income taxes						387,338						333,497						16		%				1,385,113						1,325,005						5		%
Provision for income taxes						141,334						77,640						82		%				381,381						343,115						11		%
Net income						246,004						255,857						(4)		%				1,003,732						981,890						2		%
Less: Net income (loss) attributable to noncontrolling interest						49						—						NM						(14)						—						NM
Net income attributable to Corpay						$	245,955					$	255,857					(4)		%				$	1,003,746					$	981,890					2		%
Basic earnings per share						$	3.52					$	3.55					(1)		%				$	14.27					$	13.42					6		%
Diluted earnings per share						$	3.44					$	3.48					(1)		%				$	13.97					$	13.20					6		%
Weighted average shares outstanding:
Basic shares						69,946						72,065												70,331						73,155
Diluted shares						71,463						73,475												71,848						74,387
NM - Not Meaningful

 

						December 31, 2024						December 31, 2023
						(Unaudited)
Assets
Current assets:
Cash and cash equivalents						$	1,553,642					$	1,389,648
Restricted cash						2,902,703						1,751,887
Accounts and other receivables (less allowance)						2,085,306						2,161,586
Securitized accounts receivable — restricted for securitization investors						1,323,000						1,307,000
Prepaid expenses and other current assets						806,024						474,144
Total current assets						8,670,675						7,084,265
Property and equipment, net						377,705						343,154
Goodwill and other intangibles, net						8,395,109						7,730,621
Other assets						508,348						318,212
Total assets						$	17,951,837					$	15,476,252
Liabilities and Equity
Current liabilities:
Customer deposits						3,266,126						2,397,279
Accounts payable, accrued expenses and other current liabilities						2,657,541						2,301,725
Securitization facility						1,323,000						1,307,000
Current portion of notes payable and lines of credit						1,446,974						819,749
Total current liabilities						8,693,641						6,825,753
Notes payable and other obligations, less current portion						5,226,106						4,596,156
Deferred income taxes						448,223						470,232
Other noncurrent liabilities						437,878						301,752
Total noncurrent liabilities						6,112,207						5,368,140
Commitments and contingencies
Stockholders’ equity:
Common stock						131						129
Additional paid-in capital						3,811,131						3,266,185
Retained earnings						9,196,405						8,192,659
Accumulated other comprehensive loss						(1,713,996)						(1,289,099)
Treasury stock						(8,171,329)						(6,887,515)
Total Corpay stockholders’ equity						3,122,342						3,282,359
Noncontrolling interest						23,647						—
Total equity						3,145,989						3,282,359
Total liabilities and equity						$	17,951,837					$	15,476,252

The following table reconciles net income attributable to Corpay to adjusted net income attributable to Corpay and adjusted net income per diluted share attributable to Corpay.*

						Three Months Ended December 31,												Year Ended December 31,
						2024						2023						2024						2023
Net income attributable to Corpay						$	245,955					$	255,857					$	1,003,746					$	981,890
Stock-based compensation						36,131						26,169						116,724						116,086
Amortization1						63,354						57,823						238,976						233,870
Loss on extinguishment of debt						—						—						5,040						—
Integration and deal related costs						17,262						5,926						33,696						30,660
Restructuring and related costs2						874						2,173						9,318						4,625
Other2,3						11,425						(572)						19,071						1,950
Goodwill impairment						90,000						—						90,000						—
Gain on disposition of business						(121,310)						—						(121,310)						(13,712)
Total adjustments						97,736						91,519						391,515						373,479
Income tax impact of pre-tax adjustments at the effective tax rate4						(27,985)						(21,241)						(98,667)						(96,781)
Discrete tax items5						67,518						—						67,518						—
Adjusted net income attributable to Corpay						$	383,224					$	326,135					$	1,364,112					$	1,258,588
Adjusted net income per diluted share attributable to Corpay						$	5.36					$	4.44					$	19.01					$	16.92
Diluted shares						71.5						73.5						71.8						74.4

 

1 Includes consolidated amortization related to intangible assets, premium on receivables, deferred financing costs and debt discounts.

2 Certain prior period amounts have been reclassified to conform with current period presentation.

3 Includes losses and gains on foreign currency transactions, certain legal expenses, amortization expense attributable to the Company's noncontrolling interest and taxes associated with stock-based compensation programs.

4 Represents provision for income taxes of pre-tax adjustments, excluding the impact of our gain on disposition and discrete tax item referenced.

5 Represents discrete non-cash tax provision recognized in the fourth quarter of 2024 related to a prior tax planning strategy and taxes on net gain realized upon disposition of our merchant solutions business within US Vehicle Payments of $47.8 million.

* Columns may not calculate due to rounding.

*Columns may not calculate due to rounding. Disclosure has been conformed in all periods to align with current presentation.

*Columns may not calculate due to rounding.

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted EBITDA margin to net income from operations.*

The following table reconciles full year 2025 and first quarter 2025 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range.

						2025 GUIDANCE
						Low*						High*
Net income						$	1,174					$	1,224
Net income per diluted share						$	16.50					$	17.00
Stock based compensation						117						117
Amortization						249						249
Other						52						52
Total pre-tax adjustments						418						418
Income taxes						(110)						(110)
Adjusted net income						$	1,482					$	1,532
Adjusted net income per diluted share						$	20.75					$	21.25
Diluted shares						72						72
						Q1 2025 GUIDANCE
						Low*						High*
Net income						$	240					$	250
Net income per diluted share						$	3.38					$	3.48
Stock based compensation						25						25
Amortization						67						67
Other						14						14
Total pre-tax adjustments						106						106
Income taxes						(29)						(29)
Adjusted net income						$	317					$	327
Adjusted net income per diluted share						$	4.45					$	4.55
Diluted shares						72						72
* Columns may not calculate due to rounding.