Corpay, Inc.

Hello and welcome everyone joining today's Corpe First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during a 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 Egglestetter, Investor Relations, please go ahead.

Good afternoon, and thank you for joining us today for our earnings call to discuss the first quarter 2026 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 Corpay.com. Please refer to these materials for an explanation of the non-GAAP financial measures discussed on this call, along with a reconciliation of those measures to the nearest applicable GAAP measures. Our remarks today will 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 on Form 8K and can also be found on 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 four subjects. First, provide my take on Q1 results. Second, I'll share our revised guidance for full year 2026. Third, I'll review progress against our top priorities. And then lastly, I'll share our thoughts on the midterm direction for the company and where we're headed. Okay, let me begin with our Q1 results, which were really outstanding. We reported revenue of $1.26 billion, up 25%, and cash EPS of $580, up 29%. Importantly, about two-thirds of our $50 million Q1 revenue beat versus guidance was really just Better performance across the board, not macro related. So for us, this Q1 was really a blowout quarter. Q1 overall organic revenue growth, 11%. That makes four consecutive quarters of 11%. Inside of that, corporate payments grew 16%. That's 18% excluding our flow compression and did reach 40% of our overall revenues in the quarter. Vehicle payments grew 10%, all three geographies, contributing the U.S., Europe, and Brazil. And lodging improved meaningfully, sequentially, landing flat to the quarter. So big improvement there. The Q1 operating trends, also quite good. Overall retention finished at 93.5%. I do want to note that this metric now includes our cross-border business. New sales or bookings up 24%. Happy with that. And same-store sales finishing flat for the quarter. So, look, we are clearly off to a terrific start here. All right, let me transition to our 2026 guidance. Given our Q1 performance and the current trends, the raise to full year guidance is really pretty straightforward. So we're raising full year 2026 revenue guidance today to $5,290,000,000 at the midpoint. And that's driven really by a few things. First, we'll flow through the $50,000,000 Q1 revenue beat. Second, we'll increase rest-of-year revenue guidance another $50 million as a result of higher fuel price expectations and ongoing or continued better fundamental performance. We'll also net out $75 million from rest-of-year revenue to reflect the divestiture paid by phone on March 31st. We do continue to expect 10% organic revenue growth for the year, which, again, is our most important measure of durability. On the earnings side, we are raising full-year 2026 cash EPS guidance to 2670 at the midpoint. So that's a result of flowing through our Q1 EPSB to 35 cents. It's adding a rest of year cash EPS raise of $0.35 also. That's coming from the expected $50 million in rest of year higher revenue. We do expect to have a lower share count from year-to-date share buybacks, which will basically offset the expected higher interest expense rest of year. You can see this bridge guidance map on page 11 of the earnings supplement. This higher full-year 2026 guidance implies for the full year 17% revenue growth and 25% cash EPS growth for the full year. So, look, all the ingredients for a very good 2026 year, financial performance are holding. First off here, the terrific start Q1 print. We've got very good sales and retention trends. We're continuing to enjoy a favorable macro environment and our two big acquisitions and investments, Alpha and Avid, both performing well. So we're in a good spot. Okay, let me make the turn now to our top five priorities laid out in February, which really are unchanged. So they are, one, our portfolio. Again, rotating our portfolio to corporate payments with the hope of having fewer bigger businesses. Two, USA sales, so increasing sales production in the middle market versus in the micro market. Payables. widening monetization there beyond virtual cards and launching a spend management business in Europe. Fourth, cross-border. Priority is to further develop our multi-currency account banking business, integrate the alpha acquisition, and now add real-time blockchain rails to our global settlement network. And lastly, AI, like others, we are incorporating AI into most of our products. And secondly, working internally to redesign processes and get expense savings. So what I'll do here is I'll just touch on progress just in a couple of areas, our portfolio and cross-border initiatives. So on the portfolio front, we really are making good progress. You know, our newest acquisitions and investments there are working. So Alpha grew organic revenue 17% in Q1. That's excluding the flow compression. And Avid grew EVDA 50% in the quarter. So really an outstanding performance and improvement there. So both off a really good start. We're in the late innings with a non-core vehicle payments divestiture and actually teeing up a couple more businesses potentially for sale. And on the other side, we're digging into a couple new corporate payment acquisition opportunities that do look quite interesting to us. So, look, these actions are evidence that we're committed to further rotating the portfolio to corporate payments. On the cross-border front, you know, lots happening there. We are extending the geographies of our multi-currency accounts and seeing some real momentum from that. On the alpha front, we've converted about 15% of alpha clients to our tech platform. A lot more to follow in June. We just signed JP Morgan and BBNK agreements. to speed the addition of blockchain rails to our global settlement network. And look, while working on all these initiatives, the core cross-border business rocking, continuing to perform exceptionally well. So just wanted everyone to know we are laser-focused on these top five priorities. Okay, so last up today, I do want to share our thoughts on our midterm direction and where we're heading with the company. We did just return from our annual offsite strategy session where each year we get away, we debate the purpose of the company, our portfolio, the objectives to decide if it makes sense to change course. And we always come back clearer than when we go into these sessions. Here are this year's conclusions. So purpose, so on the purpose front, we are staying put. We'll continue to have a single purpose here at Corpay, which is to help businesses, you know, better manage and control expenses. You know, the tagline, Corpay for every way your business moves money. You will see our new Corpe brand campaign, Hammer Home, this simple theme. And, in fact, I think one of our newest introductory ads is now on our website. On the portfolio front, again, we'll continue to rotate to corporate payments and to fewer bigger businesses. You will see us divest more non-core TAM constrained businesses and you will see us acquire more corporate payment assets. So we're heading towards building really three global businesses over time. So the first wrapper really is employee payments. So We've got a set of spend management solutions that control really all distributed employee spend, whether fuel or T&E or just one-off discretionary purchases. So those programs all about preventing the misuse of company monies. We'll have a big B2B payments business, AP and supplier solutions that automate the workflow really through the entire centralized procurement invoice and payment chain. The goal there is to de-risk V2V money movement. And then third big business, cross-border payments will have, you know, FX payments, risk management solutions, and foreign bank accounts. really for middle market companies all over the world. Our goal there is to make global commerce easier. So post this midterm period portfolio remix, we'll really end up in these three main global business categories, each of which have like massive TAMs. And again, all centered around the same common purpose of helping businesses better manage and control their spending on the objective front really our midterm objectives really remain intact most important is to grow revenue organically 10% and remain a top quartile grower our business model and operating leverage do enable us to grow earnings much faster you know think 15% plus and our goal is to double cash EPS and to $50 a share during the forecast period. We do expect to generate about $15 billion in cash during the forecast period. That's from a combo of annual free cash flow and increased borrowing capacity as our earnings grow. We may buy back more than half the company at this current valuation. So, look, net-net, we are very clear and super excited about the way forward and where the company is headed. We'll build a simpler, more attractive, more consistent, high-growth company that we believe will outperform most. Look, in conclusion, we're delighted with the start of the year. We are raising full year 26 revenue and earnings guidance, high confidence in that. We're working the same five priorities very hard, and we've reaffirmed the midterm purpose, portfolio, and objectives for the company, really leading us to a super exciting place. So with that, let me turn the call back over to Peter to provide some additional detail on the quarter and our 26 outlook.

Peter? Thanks, Ron, and good afternoon, everyone. The headline for the quarter is significant overperformance with 25% top line and 29% bottom line growth in our fourth consecutive quarter of 11% organic revenue growth. Let's turn to our segment performance and the underlying drivers of our organic revenue growth. Corporate payments delivered 16% organic growth for the quarter despite a 200 basis point drag from float revenue compression driven by lower interest rates. The organic revenue growth exceeded our expectations driven by strong performance in cross-border and payables. Overall, corporate payments performance was driven by growth in spend volumes, which increased organically 43% to $82 billion. Cross-border continued to deliver strong sales and revenue performance in Q1. Overall, currency volatility conditions were a helpful backdrop as it created the opportunity for our sales team to highlight the value of our offerings. Additionally, alpha integration efforts are progressing well. Approximately 15% of alpha corporate volume has already been migrated to our global tech platform with the next wave of migration planned for Q2. The payables business continued to perform well, driven by volume growth and especially strong sales performance in Q1. This sets us up well for the rest of the year. We're also pleased with the progress of AVID, our minority investment, which is reflected as an equity investment in our financials. Sales are up over 20% versus Q1 2025. Volumes and revenue are also up, and EBITDA grew 50% over Q1 2025. Vehicle payments organic growth was 10% driven by solid results across all three geographies. Higher fuel prices benefited this segment, driving a portion of the macro beat a quarter. Additionally, we closed the sale of pay by phone and have taken $75 million out of our rest of year guide as a result. As a reminder, the sale has no material impact on our adjusted EPS as we bought back shares with sale proceeds. Lodging came in better than we expected with sequential organic revenue growth improvement of 7% versus Q4 2025. We saw better performance in all areas of the business, raising our confidence in the 2026 lodging growth acceleration plan for the second half of the year. In summary, we delivered 11% organic growth in Q1, a 200 basis point beat to what we expected and at the high end of our midterm range. Our corporate payments and vehicle payments segments totaled 85% of our Q1 2026 revenue and delivered a combined organic growth rate of 12%. Sales growth of 24% and retention rates over 93% in Q1 remain impressive. As such, we are encouraged by our strong Q1 and it strengthens our conviction on achieving our increased four-year guidance. Now, looking further down the income statement, operating costs, excluding the impact of FX, M&A, and stock compensation, increased 10%. The increase was primarily due to higher transaction volumes and higher bad debt. Adjusted EBIT margin of 54.6% was slightly down over the prior year, primarily due to acquisitions. Our adjusted effective tax rate for the quarter was 26.8%. The year-over-year increase in the rate was due to the favorable impact of employee stock options on the tax rate last year. On to the balance sheet. We ended the quarter in excellent shape with a leverage ratio of 2.7 times and 1.4 billion of available borrowing capacity on our revolver. In the quarter, we spent 786 million repurchasing 2.4 million shares. This includes the use of $450 million of pay-by-phone sale proceeds as we essentially pre-purchase core pay shares in advance of receiving the proceeds. As of Q1, we have $1.8 billion authorized for share repurchases as the Board approved another $1 billion in the most recent Board meeting. We have just received commitments to refinance our revolver and term loan A. The commitments will upsize our credit facility by over a billion dollars versus existing levels. This refinancing will extend the maturity of the facility for five years and will reduce the interest rate by 10 basis points. We plan to use a billion dollars of proceeds from the new facility to pay down a portion of our term loan B expiring in April 2028. This will result in overall lower interest expense going forward. We have not reflected this in our guidance as the deal is expected to close and fund later this month. As always, we will continue to pursue M&A opportunities and to buy back shares, particularly at this valuation, while maintaining leverage within our target range. Next, let's cover our segment geography changes. We've made minor reporting segment geography changes to better align our reporting with how we run the business. You can find the adjusted historical information in the earnings supplement to help you update your models. Now let me share some additional information on our updated 2026 full year and Q2 outlook. Our updated 2026 revenue guidance is 5.29 billion at the midpoint, growing 17% year over year. This assumes 10% organic revenue growth at the midpoint. Our updated outlook flows through our Q1 beat of 50 million, increases the remaining year's revenue by 50 million, driven by a combination of macro favorability and business fundamentals, and is offset by 75 million from the sale of pay-by-phone. Our updated rest-of-year guidance for adjusted EPS is $26.70 per share at the midpoint, growing 25% year-over-year. Our Q2 revenue guidance is $1.295 billion at the midpoint, growing 18% year-over-year. We expect Q2 organic revenue growth in the range of 9% to 11%. We expect adjusted EPS of $6.55 at the midpoint, growing 28% year-over-year. The complete details regarding our revised full year and Q2 outlook can be found in our press release and earnings supplement. So, operator, please open up the line for questions.

Thank you. As a reminder at this time, if you would like to ask a question, it is the star and 1 on your telephone keypad. To leave the queue at any time, press star 2. Once again, that is the star and 1 to ask a question. We do ask that you limit yourself to one question and one follow-up. We'll take our first question from the line of Sanjay Safrani with KBW. Please go ahead.

Thank you. Really strong quarter here. I guess my first question is, it seems like the underlying trends are really strong, and then you've got sort of the macro help as well. And when we sort of impute everything, it would seem like the underlying trends would suggest even more upside as we move through the year, unless there's a giveback. Maybe, Peter, you could just talk a little bit about sort of the puts and takes factored in for the remainder of the year.

Hey, Sanjay. Thanks for the question. So when we look at Q1, we really got out of the box stronger than we expected and obviously delivered the 11% organic growth. And we were growing over 9%, so relatively easy calm growth. When we look out at the rest of the year, we're growing over 11% for all three quarters. So that's what lands us at the four-year 10% and gets us comfortable with that. In terms of the raise to the back half of the year, that is a combination of continued business performance and macro. And when we think about how that splits out, call it $25 million is in Q2 with the remaining $25 million in the back half.

Hey, Sanjay, it's Ron. Just one add to P.H. Remember, in our business, we take the absolute revenue up about $100 million from Q1 to Q4, so there's a climb already built into the guide to start.

Got it. Got it. All right. Very helpful. And then, Ron, just a question for you. You know, you talked about more divestiture opportunities and then also acquisition opportunities. So maybe... Maybe you could parse apart sort of sizing, timing, you know, and sort of the core businesses going forward. It seems like logic and gift weren't necessarily part of it. Are there opportunities there? Maybe you could just elaborate on that. Thank you.

Yes, I don't want to provide too many details and tip off too many people. I will say one that we're super late innings on a pretty meaningful transaction, a divestiture, and so That'll either happen or not happen, maybe it's signed or not in this court we're sitting in. That's number one. Number two, we have two or three additional non-core things that we're teasing out, trying to get a sense of whether to take them fully out to the market or not. Then on the other side, like always, we're digging into a couple new corporate payment assets. The message is more will happen, exactly when and stuff, you know, PPD. But by the time we get to Christmas, we will have likely sold additional assets beyond the one year in Q2 and likely be looking at buying some additional things. So, we are hard at work on this rotation.

Thank you. And we'll take our next question. From Ting Jin Hung with PHP Morgan. Please go ahead.

Hey, thanks a lot. Great results. Maybe ask some of what Sanjay asked without you giving away the trade secrets here, Ron. As you're rotating to corporate payments, and it's obviously doing really, really well, can you just, instead of the details, what capabilities or TAM characteristics are you looking to? and I'm guessing you're probably not alone in looking at these assets. So are valuations reasonable when you compare it to buying back your own stock, which you said yourself, you buy back more than half the company's valuation. So just trying to understand the balancing act there.

Yeah. Hey, good to hear from you. So I don't think we need much in terms of capabilities. You know, we have gone on a bit of a buying spree, including that foreign bank account. capability, right, we got from Alpha. So I'd say it's mostly some geographic things. There's an asset in the geography that we'd like to heavy up on. There's another asset that we'd like some of the verticals. So it's in a completely similar business, but has positions in some different verticals. And so we have mostly what we need. I'd say it's more now bulking up. And as you know, the closer... these acquisitions are to what we do, the bigger the synergies. So, we always look, as you know, at year one accretion. And so, if the thing is super in close to what we do, we can make the numbers work. So, I would say that, you know, you should look for us to buy additional assets this year.

In that way. Okay, yeah. So, top necrongios and verticals is an example. Okay. No, that's great. Proud to be here. We trust you on that. So, on the, my follow-up maybe staying with cross-border. You said demand there is really good. You gave us the update on the alpha migrations. You signed JPM and BBNK on the blockchain rails side. So what's next, I suppose? What should we be asking you or what are you trying to track to gauge success as you're putting those agreements to work again on JPM and the BBNK side and also on alpha? Is it more just migrations? Are those the milestones we should be watching for?

Yeah, well, first thing I'd say, hey, tune in to the cross-border deep dive. I think this, Jim, is next Wednesday, so we're going to try to spend an hour on the business and kind of peel it back and tell people why it's a pretty good thing. But I think the biggest headline for everybody is, yeah, we have these new things, these new initiatives, right, get Alpha across, which we're doing, get this bank account thing lifted up, get blockchain super functional and stuff. The key message I want people to take is the thing is trying to rock it. The base business is sales, I think we're 40% or something up in Q1. And so it is just, when I say way ahead of expectations, the thing like in every way for us is just working, right? The number, I don't think it's a billion five ballpark for that business in Q1. 2026 as additional assets, obviously, that we know of, that we're looking at early in the space. And so I think it's really just getting those things done, right? It's getting the bank account to accelerate. It's getting Alpha, you know, shuttering their platform. It's teasing out whether our clients really want to use blockchain. I mean, I think you guys, the JPM guys, personally are on to the right thing. The Ron Clark that is moving, tokenizing fiat currencies and moving it over blockchain outside of the banking hours. And so there's no, you know, off-boarding of the thing. I personally think that is a winner, that our clients are going to really love that rail. as an added rail versus the more difficult, hey, depositing money with no interest, getting stable coins, running it down the blockchain, and reconverting it again. And so the approach that your particular bank is taking, we think, for B2B is a super good fit. So we're really, I'm personally really excited about that idea.

Thank you. And we'll go next to Ramsey. LL Sales with Cantor Fitzgerald. Please go ahead.

Hi, guys. Another terrific quarter. I wanted to ask about the USA sales and focusing on the middle market. I was just curious, is that where you see the most opportunity right now? Is that the more beneficial market segment? And I guess, why is that the best place to hunt right now?

Hey, Ramsey, it's Ron. It's a good question. So I think the first answer to that is we disliked the micro market, right? I don't want to go back to that saga, but that was a super unpleasant pivot, right? A couple of years ago, we saw credit losses, we saw client losses and stuff. We saw very short lives in some of the new accounts that came in. And so the conclusion was, way investing in digital and bulking up in micro is not the best way to create a durable business. So we point at the middle market, which is juicy. You don't have to give as much money away. The accounts are bigger. They're more stable. They last longer. But the other thing which is important to us is it suddenly takes the fleet business and makes it more part of our corporate payments business. And what I mean by that is when we serve a little company, take like a 10-person plumbing company, all they need is a fleet car. They have no other spend. They really don't do anything else except send 10 guys out and about. When you go to a middle market company, let's say $300 million, $400 million in revenue, and it's got 50 fleet people, it's got other stuff. It's got a supply chain that might have manufacturing. It's got white-collar people. So all of a sudden, the products that we have that combine our fleet controls with our kind of commercial card spend management stuff, it's the same. And so we can take the same product that we bring to kind of non-fleet-intensive businesses to the fleet-intensive businesses. And so no longer do we have kind of like specialized products fleet products. There's just a spend category in our bigger platform. And so, I really like that, the idea of fleet just becoming a portion, really, of the overall commercial card business that we're in because we've moved up market, basically, from these super small accounts. So, the million-dollar question is, Is the new selling approach and partner approach we're taking going to add enough business? That's what we're working on. We've increased the investment there. We've got a lot of stuff in the pipeline. So we're pointing out to you guys the progress of new business in that segment is the key to growth going forward.

Super interesting. A quick follow-up. On lodging, obviously saw some pretty great re-acceleration in that business this quarter. Maybe just talk about the underlying drivers there, the underlying business momentum, if you're feeling like that trend is now headed in the right direction.

It is, and I'm going to get off characterizing it as a problem child because not only did it race ahead of what we thought or I thought it could do in Q1, I think in the second half the thing will be the right side of 5%, somewhere in the mid to high single-digit growth. And the reason, I guess, is pretty simple, though, again, A couple of years ago, kind of meltdown from the IT thing that took a big part of our base away and bled us over six to 12 months was a huge Ramsey pothole to fill with business. Well, that thing now is way stabilized. In fact, I'm looking at... at our Q1 same-store sales report, and it was plus six for lodging, plus six. That number was like negative 18%, you know, eight quarters ago. So that's the first giant thing is that the base is positive, so that anything we add obviously creates the growth rate of the business. So I would say that given there's a little bit of lead time to install business, implement business there, that there's been enough in the pipeline, we're pretty confident you'll see that thing on the positive side in the second half. So hallelujah to the logic. And that will help our overall growth rate, obviously, to those that could do math, from consolidating, you know, minus 6% to, let's say, consolidating in the second half plus 6% or 7%.

Thank you. And we'll go next to Darren Peller with Wolf Research. Please go ahead. Darren, your line is open.

Okay. Sorry about that, guys. I was muted. Excuse me. Maybe you could just touch on the rate of growth of the U.S. fleet business for a moment. And then is there anything that we – like what would we have to see for the fleet market to actually see same-store sales break out of the 0% to 1% type range we've been seeing. I'm not sure if there's anything macro-driven you'd expect, but I'm just kind of curious on same-store sales.

Yeah, hey, Darren, it's Ron. So a little positive news. So the U.S. fleet business was plus one in terms of same-store sales in the base, which is obviously, you know, it was minus two in Q1 of 25, so kind of that's a three-point swing helping it. I kind of answered the question earlier. The growth of that business now is just all turning on this new sales model, the middle market. If we sell a lot there, it will grow. If we don't, you know, it won't. I mean, frankly, which you as Mr. Corporate Payments Advocate, the thing is, 10% now of our company, ballpark in terms of revenue. And so our focus, as you know, I've been super clear on this, that we have moved, I have moved a bunch of sales and marketing money into the corporate payments space and try to still deliver what we deliver, 29% earnings growth in Q1. So we don't have unlimited money there to make profits. And so we have poured obviously way more incremental money, particularly in the cross-border business. And so if we see this middle market thing take, we'll put more dough into it and grow it more. And it's not, it's kind of a bit of a yawn now at 10%. It's not going to make the thing go. What you've been saying for three years, everybody needs to see how the corporate payment thing is going because that's going to be 50% of the company. That's fair enough.

All right. I guess on that note, maybe you could just explain a little more on the rate of growth we saw this past quarter between the AP spend management side and the cross-border sides of the corporate payments side. Obviously, the 18% was solid.

That's a really good call. It's about the same, which is really positive. So both businesses are growing. You know, in the quarter in the high jeans and, again, both are working. So we like that, right? We like the balance of the two different solutions. And also the geographies. I think you know this, but maybe others don't. We finally have taken the payables business, which up until maybe six months ago was 100% USA business. And now we've got a spend management business running in Europe. about $15 million in revenues is the current run rate of that, so obviously up from zero. And then in the cross-border business, about 75% of that business gets originated, you know, in other geographies, you know, Canada, the U.K., continental Europe, you know, Singapore, Australia, et cetera. And so that's what's so cool is that the businesses now are truly global. That tables thing has TAM now sitting – you know, certainly cross-border, but even now in the spend management thing, we've got those products there and working in other, right, geographies beyond the U.S. So the opportunity is way up because of that.

Thank you. And we'll go next to Michael Infante with Morgan Stanley. Please go ahead. Your line is open.

Thanks for taking my question. Ron, I'd love to hear how the MasterCard partnership is progressing. How are both organizations sort of devoting resources here? And is that one to two points of contribution across borders still the right place for 26? That's a good ask.

I think we're both pleased. I know MasterCard reported. I didn't hear what they commented. But I would say from our seat, we're really pleased with the thing. We're pleased with it. Massacar's engagement with us. We're pleased. We've made, I think, three or four sales contracts, 5 million-ish run rate on the contracts. The last report, I saw 50 accounts in some form of a pipeline working. The fascinating thing is we have a better fix now on which FIs, which kinds of banks like this thing and what they like. Fascinating. The most interesting product they're interested in is our foreign bank account or our multi-currency bank account product, even more so than our payment capabilities. So, look, it's a slower sales cycle, right, versus going to an end business. But I'd say the premise of MasterCard introducing us to their client base and our people explaining the expertise we have, the formula is working. And so ask me, you know, as we get into the summer and the fall, what that thing will be. But I'd say we're still pretty bullish on it.

That's helpful. And then maybe, Peter, just in terms of some of the tariff comp dynamics, you obviously had some Pull forward some uncertainty in North America. Alpha obviously grew robustly last year. Anything we should just be mindful of in terms of the Q2 cross-border comp? Thanks, guys.

I'd say nothing specific in the Q2 cross-border comp. I mean, obviously, my prepared remarks I shared that, you know, the volatility across the world, right, allowed us the opportunity to display our, you know, capabilities and continue to gain business. I think what will be really exciting for you guys to hear is to tune in to the cross-border teaching next week. And we're going to really describe to you a $160 trillion market, which we have, you

Thank you. We'll go next to Dave Cunning with Bear. Please go ahead.

Yeah. Hey, guys. Thank you. Nice job. And I guess my question, as we look forward, the corporate volumes, which have been huge because of alpha, et cetera, what should that start to grow at? And then similarly, what should the yield be? Like, does the yield stay around the 62 basis points? I would imagine if flow rates go up, that goes up a little bit, maybe pricing. But just the balance between how you're seeing volume and yield over the next couple of years?

Hey, Davis, Ron, that's also a good question. So I'd say generally both our payables business and our cross-border business are volume grower businesses. They're not really rating kinds of businesses. And most, again, because the clients are generally sizable, they're mid-market, you know, plus kind of clients. I'd say the only deviation from that is our cross-border business and, by the way, our payables business have had a little bit of success with some kind of crazy enterprise opportunities. So I think I did mention we had a payables enterprise account, gigantic, that we onboarded last spring that's kind of fully in now that says, you know, a quarter of kind of the line average, but it's a gigantic other convention that was half or more the size of the Paymerank business. And then the same in cross-border. We now are targeting some giant accounts where we might be doing some risk management work where they have big trades. And so we'll take those trades at very low, you know, sub-10 basis points because they're massive transaction sizes. So... It skews a little bit these averages. So what we do internally, which I'd be happy, Jim, for us to send around is we look at the same day and pull those out. So we run the distribution. We look for like the 10 giant trades in the period and then look at the non, you know, kind of rest of business without those. And not shockingly, it's kind of right spot on, you know, the yield we've been running at. So it's a long way of saying sans some big enterprise things. We don't see much movement in that yield. Yeah.

Thank you. And then just on the vehicle business, it looked like – I just looked at the Brazil revenue number. And on a constant currency basis, I kind of put it into the model. It looks like Brazil may be slow just a touch. Yeah. But, you know, you'd obviously know better. But that just looked like it. But maybe comment on that in the Europe business a little bit.

Yeah, I mean, to make the three, you know, be a 10%, obviously some set of people need to be double-digit. So I don't have it in front of me, but the Brazil businesses are still rocking. We've had a little weird thing recently. with Google some key word, and our vehicle desk business kind of nicked us for maybe a point or something, I think, in Q1. But the forecast, which I'm staring at, has that business in the high teens, rest of the year, Q2 and on, so we're pretty confident. And the gear vehicle business, I'd say steady as she goes. That thing's been right around. The 10% are, I don't know, probably 8, 10 quarters now running. And same thing, that thing is out looking kind of steady as she goes. So when you put the three geographies together, you get back to kind of, you know, 9% or 10%, and that's what we think the rest of the year will be.

Great.

Thanks, guys.

Once again, if you'd like to ask a question, it's the star and 1 on your touchtone telephone. We'll pause for any further questions or follow-ups to queue. At this time, it does look like we have no further questions. So, we'd like to thank everybody for participating in today's meeting. We appreciate your time and participation. You may now disconnect.