Corpay, Inc.

Hello and welcome everyone joining today's CorePay Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star 1 on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Jim Egglesetter, Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us today for our earnings call to discuss the fourth quarter and full year 2025 results. With me today are Ron Clark, our Chairman and CEO, and Peter Walker, our CFO. Our earnings release and supplemental materials for the quarter are available on the investor relations section of our website. Please refer to these materials for an explanation of the non-GAAP financial measures discussed on this call, along with the reconciliation of those measures to the nearest applicable GAAP measures. Our remarks today will also include forward-looking statements about expected operating and financial results, strategic initiatives, acquisitions and synergies and divestitures, among other matters. Forward-looking statements may differ materially from actual results and are subject to a number of risks and uncertainties. Some of those risks are mentioned in today's press release and on Form 8K and can also be found in our annual report on Form 10K. These documents are available on our website and at sec.gov. So now I'll turn the call over to Ron Clark, our Chairman and CEO. Ron?

Okay, Jim. Thanks. Good afternoon, everyone, and thanks for joining today's call. Up front here, I'll plan to cover three subjects. First, provide my take on Q4, along with highlights for 2025. Second, I'll share our 2026 guidance. And then lastly, I'll outline our major priorities for 2026. Okay, let me begin with our Q4 results. We reported revenue of $1.248 billion, up 21%. and cash EPS of 6.04, up 13%. That would be up 20% at a constant tax rate. The results better than our expectations, mostly driven by cross-border and alpha overperformance. We did call the macro spot on, so neutral impact versus our guide. In the quarter, overall revenue growth, 11%. That's three consecutive quarters. Inside of that, our vehicle segment continued growth at 10%, and our corporate payment segment grew 16%. So our two biggest businesses doing quite well against pretty difficult comps. Importantly, our trends in the quarter are Also quite positive. New sales or bookings up 29% versus prior year. So super robust sales. Same store sales inched into the positive territory up 1%. And overall revenue retention stable at 92%. Cash EBITDA in Q4 surpassed $700 million in the quarter. So look, all of this produced a record cash EPS print of over $6 a share. So really a terrific quarter for us. Let me make the turn to highlights for full year 2025. So first, our financial performance for the year, quite good. Full year revenue of $4.5 billion. That's up 14%. Cash EPS of $21.38, up 12%, or again, up 17% at a constant tax rate. Organic revenue growth for the full year, 10%. So that makes four of the last five years, 10% organic revenue growth or higher. Full year sales growth also 29%. with improving productivity. So we're continuing to sell a lot. Additionally, in the year, we made a number of moves to better position the company for the midterm. We acquired Alpha, the second largest acquisition in the company's history, giving us access to an international bank account product, as well as the asset management market segment. MasterCard invested $300 million in our cross-border business at a $13 billion valuation, hopefully to unlock and serve the FI channel. We invested in Avid. That deepens our position in the middle market AP automation and payment space. And lastly, we acquired a second vehicle debts company in Brazil that will further help accelerate Brazil's non-toll revenue growth. So look, financial performance ahead of our initial 2025 guide, along with a further rotation of our portfolio towards corporate payments. So quite pleased. Okay, let me transition to our 2026 guidance. We are quite excited about it. So we're providing full year 2026 guidance at the midpoint of print revenue $5,265,000,000. That's up over $700,000,000 versus last year or up 16%. And we're riding cash EPS at the midpoint of $26 on the button. That's up 22%. Look, the drivers behind this 2026 guide, a few things. So first, fundamentals. Look, the business is working. We had a record Q4 finish and the corresponding exit rate, super good trends, positive sales, healthy client base, same store sales, stable retention trends, big sales year again in 2025. We get a lot of that benefit as it rolls into 2026. And we are expecting continued 10% organic revenue growth this year. A second driver are creative acquisitions. So our alpha acquisition expected to contribute about $300 million of incremental revenue. And alpha paired with AVID together should contribute approximately $1 of cash EPS to our 2026 outlook. That's based on kind of our final plans now. And the third macro, we are expecting the macro to be our friend, to be helpful here in 2026. Favorable FX rates, particularly so in the first half. Lower SOFR rates. And finally, a constant year-over-year tax rate expected. So look, lots of reasons for confidence in our 2026 guide. The guide, just for clarity, does not include the impact of expected divestitures, including the pay-by-phone, nor the impact of any material capital allocation actions beyond simply delevering. Okay, let me turn to our top five priorities for 2026, which really are pretty consistent with last year's priorities. So first up is our portfolio. The goal, again, to further simplify the company, resulting in fewer bigger businesses and accelerate our rotation of corporate payments. We've announced one vehicle payment divestiture. We have two additional divestitures that we're working. And as always, we're continuing to work the acquisition pipeline for new corporate payment acquisition opportunities. Second priority, USA Sales. We're continuing to work to improve USA Sales, particularly of our vehicle payments and lodging solutions. We've done a few things. We've hired a new CMO who recently started. We've developed some new Corpe brand creative ads to raise awareness of the company. We're growing our Zoom sales teams here in 2026. Concurrently, we're also really rethinking entirely new ways to sell our U.S. vehicle payment solutions online. as we deemphasize digital sales. A third priority in payables, a number of things. One, we're trying to add new enterprise accounts there, particularly after our success with our first elephant last year. We are selling payables now in the UK, seeing some initial traction. We are doubling down on the sales force in the UK. And lastly, lots of energy exploring new monetization options with our merchant base or our vendor base. Those things include instant payment options, debit card payments, and even e-checks to help accelerate revenue growth in the AP segment. A fourth priority is cross-border. Super focused on our multi-currency account and our international bank account capabilities, particularly given the Alpha deal. We're furthering our stablecoin capabilities and obviously working hard to implement synergies related to the Alpha acquisition. We are progressing the FI channel opportunity with MasterCard. We have logged our first joint sale, so kudos there, and building really a pretty meaningful pipeline, so excited about that. So fifth and last, AI. Yes, we have gotten religioned around AI. We're currently in pilot with conversational AI being added to a number of our client UIs. We're using AI agents to reduce live agent expense, particularly in our lodging business. And we're even using AI to speed our merchant matching process. against our internal merchant database to help drive new payable sales with prospects. So look, five key priorities here in 2026. Each is well-defined, each is being worked, the portfolio, USA Sales, payables expansion, cross-border capabilities, and AI implementation. So a busy year for sure. So look, in conclusion today, a strong finish, record earnings in Q4. On the high side of our guide, again, encouraging organic revenue, new sales, same-store sales, and retention trends. Our full year 2025 financial performance, again, finishing ahead of our initial guide. We logged another 10% full year organic revenue growth year that makes, again, four of the last five. 2025, again, a repositioning, active repositioning year, further simplification of the company in the addition of more corporate payment assets. In terms of 26, again, outlooking really a super strong 2026. EPS expected to be up over 20%, driven by the favorable fundamentals, the accretive acquisitions, and even a favorable macro. And lastly, we have laid out a clear set of priorities to better position the company to continue to compound over the midterm. So with that, let me turn the call back over to Peter to provide some additional detail on the quarter, the year, and our 26 outlook. Peter?