The company completed the acquisition of Gringo in February 2025 for $153.7 million, expanding its Vehicle Payments segment in Brazil. Acquisitions completed in 2024 and 2025 contributed approximately $36 million to Corporate Payments revenue and $9 million to Vehicle Payments revenue.

Corpay expanded its partnership with Mastercard, with Mastercard acquiring a 2.8% interest in Corpay's Cross-Border business for $300 million. This is expected to close in the second half of 2025.

Corpay and TPG formed a limited partnership to acquire AvidXchange for $1.9 billion. Corpay invested approximately $550 million for approximately 34% of the equity in the limited partnership. The transaction is expected to close in the fourth quarter of 2025.

Management identified a material weakness related to IT general controls in user access management. Remediation efforts are underway, including enhancing the IT compliance oversight function and developing a training program.

Management is focused on achieving operating leverage and integration synergies from recent acquisitions, as evidenced by the increase in Corporate Payments operating income and margin. However, expenses are expected to decrease as a percentage of revenues over the long term.

The effective tax rate increased from 24.7% to 25.5%, driven primarily by the mix of earnings. Management continues to monitor tax legislation and its potential impact.

The company notes that adverse global macroeconomic conditions, including recessions, inflation, and changing interest rates, could have a material adverse impact on its business. The company estimates that macroeconomic factors had a negative impact of approximately $51 million on consolidated revenues.

The FTC lawsuit alleging unfair and deceptive acts and practices remains unresolved. Any settlement or defense against the lawsuit could involve significant costs, including legal fees, redress, penalties, and remediation expenses.

Changes in foreign currency exchange rates significantly impact the company's results of operations. Unfavorable changes in foreign exchange rates had a negative impact on Vehicle Payments revenue of $36 million.

Vehicle Payments revenues decreased 1.4% YoY, indicating potential competitive pressure or market saturation in this segment. This decline was attributed to unfavorable FX, the disposition of a merchant solutions business, and unfavorable fuel price impacts.

Corporate Payments revenues increased 32.9% YoY, indicating a strong competitive position in this segment. This growth was driven by organic revenue growth, new sales, and acquisitions.

Lodging payments revenue decreased 1% YoY, indicating a stable but not growing competitive position in this segment. The decrease was primarily due to continued weakness in the airline solution, offset by room night volume increases in the workforce solution.

Processing expenses increased 7.0% YoY, primarily due to expenses related to acquisitions and higher variable expenses driven by increased transaction volumes. This indicates potential challenges in maintaining operational efficiency with growth.

Selling expenses increased 14.2% YoY, primarily due to increased commissions from higher sales volume and expenses related to acquisitions. This suggests a need to evaluate the efficiency of sales and marketing efforts.

General and administrative expenses increased 3.8% YoY, primarily due to expenses related to acquisitions. This indicates a relatively stable level of administrative overhead.

Capital expenditures increased 9% YoY, indicating continued investment in technology. This is consistent with management's stated intention to continue investing in technology to support revenue growth.

Depreciation and amortization expenses increased 8.8% YoY due to incremental investments in capital expenditures and expenses related to acquisitions. This indicates that the company is acquiring businesses with significant intangible assets.

A material weakness in IT general controls related to user access management was identified, indicating a need for improved technology governance and security. Remediation efforts are underway.

The company repurchased shares for an aggregate purchase price of $58.7 million during the quarter, leaving $1.2 billion of authorization remaining. This indicates a continued commitment to returning capital to shareholders.

The company made borrowings of $750 million on the Term Loans, indicating that debt is being used to fund acquisitions. This suggests a strategic focus on inorganic growth.

Mastercard is acquiring a 2.8% interest in Corpay's Cross-Border business for $300 million, indicating a strategic alignment and potential for future growth in this area.

The 10-Q filing does not contain any specific information about environmental, social, or governance initiatives. This could indicate a lack of focus on ESG or a decision not to disclose such information in this particular filing.

The company notes that adverse global macroeconomic conditions, including recessions, inflation, and changing interest rates, could have a material adverse impact on its business. The company estimates that macroeconomic factors had a negative impact of approximately $51 million on consolidated revenues.

The company's Vehicle Payments customers use its products and services primarily in connection with the purchase of fuel. Accordingly, the company's revenue is affected by fuel prices, which are subject to significant volatility.

Changes in foreign currency exchange rates significantly impact the company's results of operations. Unfavorable changes in foreign exchange rates had a negative impact on Vehicle Payments revenue of $36 million.