All right. Good afternoon, everybody. We're gonna go ahead and get started. My name is Madison Schurr. I'm the payments and fintech analyst here at Raymond James. I'm happy to be joined by Peter Walker, the CFO of Corpay. Today's format will be that Peter's gonna run through a presentation. With that, I'll kick it over to him.
Hey, good afternoon, everyone. Excited to be here with you this afternoon. It was two years ago today at the Raymond James conference that we announced that we were changing the name of the company from Fleetcor to Corpay. I thought it would only be fitting to kick off our presentation with a view of a brand awareness campaign on Corpay that we're kicking off this year. Give you guys a quick little video and get your reaction to it. If I can get it to work.
It all started with one purpose: to help businesses control fleet spending. We didn't stop there. We went from controlling fleet spending to controlling nearly all vendor spending. We introduced a comprehensive set of new digital payment programs for nearly every business expense category. We launched AP automation, a profound transformation, so businesses around the world can pay vendors simply, securely, and always on time. Today, Corpay serves over 800,000 business customers and moves more than $400 billion a year. We're here to control spending and make business payments simple and secure.
How you like me now?
Keep business moving. Corpay.
How you like me now?
How do you guys like us now? Is that good? Hopefully, it just gives you a view of kind of a quick snippet into the company's history and into the company's future. Just move that. I think it's picking me up. Let's just take a look back in terms of the evolution of Corpay. Company was started around 2000 really in the fleet card space, so really a niche provider within fleet card. Company went public in 2010 with the IPO, the company did its largest acquisition in 2014. In that acquisition is when we acquired a nascent corporate payments business and really started to grow out the corporate payments business.
From 2014 to today, we've really continued to organically grow the business and inorganically grow the business to become the corporate payments provider that we are today. I think the really standout statistic on this slide is that we are in a market, a TAM, of about $150 trillion.
This is a very large market that we operate in today. Banks dominate the majority of this market space, our overall belief is a lot of room for the company to grow given the size of the TAM and the products we offer. We've spoken a lot in earnings calls about our rotation into corporate payments, about our rotation into deeper, not wider, meaning deeper businesses. I thought this was a great visual.
If you look at the top part of the columns here on corporate payments, you can see corporate payments in 2021 represented about 21% of our revenue, growing to 36% of our revenue in 2025, projected to be 40% of our revenue in 2026. Again, just continued growth in corporate payments, large TAM, higher multiple business for us to be in. Pleased with what we've been able to achieve there. This represents a 30% CAGR over the 5-year period in terms of corporate payments growth from 2021 to 2025.
I think the other thing that's really important to note here is there's some other KPIs on the bottom of the slide that we've been able to achieve this growth while still delivering a margin, EBITDA margin, call it in the mid-fifties, still maintaining a CapEx-light business, CapEx is about 4% of revenue, and still having a really high free cash flow conversion.
Call that about 90% free cash flow conversion. That's kind of a setup on how we're performing. Why don't we jump now to what do we actually provide to businesses in a little bit more detail. When you think about a business income statement, everybody in the room can relate to that. There's really two types of expenses that are running through it. There's people expenses and there's non-people expenses.
Our focus is on that non-people expense side of the income statement and really helping businesses put in the effective controls around purchases and the global payments related to that side of their business. I'd say the additional value that we provide is the majority of our products actually result in revenue that we can return, and it's a profit-sharing model with our clients.
The solution is let me help you spend less money, let me help you control your expenses, oh, and by the way, you're gonna get hard dollars back from the programs that I put in place. What gives me the most passion about this business is the CFO or the office of the CFO, we are the purchasers of all of Corpay's products.
It's great to work in a business where I can really sit back and say, "Would I buy this product or not? What can we do to improve this product?" Et cetera. Hopefully that sets a good context of kind of what we're up to, where we focus. If we double-click on this a little bit further, it's really focused on two sides of controlling and managing expenses. First is enabling controls around what is purchased, right? All of you are probably sitting here with a corporate card in your pocket. Most likely, you guys have pretty good authorization. You can use that corporate card at most places. As you move down an organization, you can set up all kinds of controls to limit the amount of expenses.
You can't use it at a restaurant or grocery store, et cetera, or you can use it depending on your type of business. Those are the type of controls that we can put in place in the expense management space. In terms of products, we really have four offerings here: business cards, fleet cards, offering in tolls in Brazil, and then offering in lodging. If you go to the other side of the business, this is really about controlling what is actual paid. What are the vendor payments that are being made? Where we do that is in the U.S. we do that in spend management and AP automation. Then within our cross-border business, we do this with international payments, and we do this with global and multi-currency bank accounts.
Really a comprehensive offering for the office of the CFO in terms of controlling and managing expenses. This is our, you know, scorecard where we sit in terms of size, scale, and capabilities. I think pretty impressive and really critical to the growth of the business. If we look at 2025 as a snapshot, $4.5 billion in revenue. We delivered 10% organic revenue growth for the year. That number is projected to be $5.3 billion for 2026, also growing at 10% organic revenue. High organic revenue growth from the business. Next, we move to adjusted net income. We delivered about $1.5 billion of adjusted net income in 2025. Adjusted net income is a proxy for free cash flow for us.
This number is expected to grow to $1.8 billion in 2026. Think of that. Think of the arsenal we have. We wake up every year and say, "Oh, I've got a fresh $1.8 billion to spend in cash flow this year. How am I gonna deploy that? Am I gonna lower my debt? Am I gonna do more M&A? Am I gonna do buybacks?" We'll get further into capital allocation in the presentation, I think what I want you to walk away from is this is a high free cash flow generation business that gives us a lot of optionality, and we look at our revenue and midterm guidance algorithm, you'll kinda see the power of that come through. What delivers these results? We're in 150 countries today. 51% of our revenue is international.
You'll see our concentrations are the U.S. Brazil, and U.K., so highly diversified global company. We have over 800,000 business clients, and we have 4 million, over 4 million merchants and vendors. The other thing is really critical to point out is that we have over 30 proprietary networks. This is not a software business. Let me just say it one more time.
This is not a software business. We make very little of our revenue based on software. We make our revenue based on moving payments, and our key advantage there is the proprietary networks and our ability to move those funds at lower costs and our clients being able to take advantage of the fact that we're doing that. Next, I thought it would be helpful to just take a pause and say, "Hey, what are you guys working on in the near term?
What's exciting in terms of product innovation? What are you doing to drive this company forward? Really four key areas that we're focused on right now. One is bank accounts. This is a relatively new area for us within the cross-border business. We offer two types of bank accounts today. We just closed on an acquisition called Alpha, which is a cross-border business based in London on the London Stock Exchange. With Alpha, we bought what was called a global bank account alternative. This has about $3 billion in deposits, so by no means a small business. What's very interesting about this business is it is a targeted bank account product.
It is a companion bank account pitched at asset managers and private equity firms who are looking to do a deal in a currency where they don't typically have a bank account today. They're looking to us to open up that bank account for them so that they can transact in the asset and typically hold out those funds for about five years.
The key advantage here is that we can open up the bank account and call it 20 days versus if they were to work through a typical regional bank, that could take up to five months. Really exciting area of growth for us. The next area is our Multi-Currency Accounts. This is sold to our corporate clients within cross-border. The Multi-Currency Account is also a companion account.
What this allows, for example, is a U.S. business who begins to transact in Europe and in the continent, they can open up account where they can have euros and they can have pounds in that account along with U.S. dollars. This also allows us in both of these accounts to provide international payment services and provide risk management services.
Really important growth initiative for us going forward. The next place I thought I'd go is AP monetization. We've been with investors most of the morning. I think we've got a lot of questions in terms of, hey, there was a lot of enthusiasm, call it 2020, 2021 around AP monetization, Virtual Cards, kinda what's the next step in this journey of AP monetization. What we're focused on here is ending paper checks.
Believe it or not, Almost 50% of AP today is still done by paper checks. This is definitely a generational thing in terms of, you know, who is running AP departments. What we're focused on is digitizing this process and introducing new monetizable products, being it a debit card, instant payment, or e-checks as different alternatives.
The main goal here is really to reduce fraud, get people off of checks. Next area which we get asked a lot about is stablecoin. Kinda what do you guys think about stablecoin? How are you adopting it in your business? I'd say overall, we're excited about stablecoin. We're making some investments here, and I'll walk you guys through kinda what the use cases are. First and foremost was in the digital currency space.
Today, we're supporting major crypto providers as they look to convert off of their stablecoin into a fiat currency. We're actually providing now that FX conversion for those large institutions. The other thing that we're doing is as a first-mover advantage, we're adding digital wallets into our private capital markets accounts.
When I go back to the global bank account alternative that we bought for with Alpha, where we're providing that to private equity and alternative asset managers, we're introducing stablecoin companion digital wallet account. What's exciting here, these guys are in the business of doing deals, and one of their biggest obstacles in doing a deal is doing things outside of banking hours.
The use case of stablecoins that's pretty interesting here is that they can close a deal 24/7 via stablecoin versus waiting to be in banking hours. We've had initial conversations with clients. They're interested in that, this. Nobody's calling us today and saying, "Where is my stablecoin?" Our goal is to be a first mover here, set up these digital wallets and stablecoin, and create this capability. We also believe this can exist within our cross-border business, payments and our merchant network in the U.S. and international. It is another place with our large vendors that we're setting up digital wallets. Again, we're not seeing the volume yet today. Nobody's calling us up and asking us. There has been, you know, movement obviously into stablecoins recently.
A lot of that seems to be kind of a haven, a safe haven for crypto versus true corporate payments moving into stablecoin. I think my message to this audience is we're excited about stablecoin, and when the volumes come, we're ready. What would a presentation be if we didn't talk about AI, right? You know, huge disruptor. Obviously, there was an article in the last week about, you know, 2028 and the doomsday that we all could wake up to. Hopefully, that's not the case. What I would tell you is we see AI as an advantage amplifier for this business. We don't see this replacing the business, but we see AI as a way that we can enhance the current products that we offer today.
We have AI instances installed in the U.K. E.U., and Brazil, and where we think the best opportunity is with AI first is in product innovation directly with our clients. We are also using AI to reduce our expenses. We've not taken expense reductions. We're more getting productivity gains and engineering out of AI. We see a benefit not only at top line of our business, but also reinvesting in our business.
Hopefully that's helpful in terms of kind of hot topics that we get asked about around innovation in the business. All right, next, let's take a look at the actual businesses themselves. I'm gonna focus on corporate payments and vehicle payments, as that makes up over 80% of our revenue today and is really our key focus.
When we go to corporate payments, a lot of people kind of say, "Okay, well what do you mean corporate payments?" Pretty broad category. Corporate payments today, really think of this as four businesses that sit in corporate payments. First business is spend management or commercial cards. We kind of talked about that business.
You guys are, you know, all probably sitting with cards in your pocket that would fit into this part of our spend in our corporate payments business. The next piece is AP automation. This is where we're working with clients, and we actually take over their AP process, and we automate that process for them. The next piece of corporate payments is cross-border. This could be international payments and risk management services that we're providing to our clients. Lastly, the bank account business that I spoke about.
Hopefully that's a way to kinda demystify what sits in this, you know, large business that we see really as a future growth of Corpay. Corporate payments makes up about 36% of our revenue in 2025. That's gonna grow to over 40% in 2026. You can see there's over $250 billion of annual spend processed in this business, and we are the largest non-bank FX provider.
Our customers here, in terms of the industries that we work in, has stayed pretty consistent over the years, construction, transportation, logistics, and business services, also financial services and manufacturing. Lastly, just some kind of, you know, key interesting things to point out. Largest Virtual Card acceptance with over 1 million vendors. We are the largest Mastercard B2B issuer, and we settle FX in over 200 countries.
I think the other thing that's really important to point out about our cross-border business is over 90% of our volumes in cross-border are in G20 currencies. When we go back to stablecoin use cases, today a lot of the stablecoin use cases in cross-border is in ex-exotic currencies, which is not in places we're in today.
Our business within cross-border operates very efficiently under the current rails that we have. We have proprietary rails in the cross-border business, and we run them in about 60 countries. Taking a double click on cross-border, we've made several investments or partnerships in cross-border this year, so thought it would be important to kind of slow down a little bit and tell you guys where we're at on our cross-border journey. Today as we sit, we've got four segments that we sell into in cross-border.
We've got the corporates, which we've been in for several years since we began in the business. Financial institutions, this came to us mostly through the Mastercard partnership. We had a little bit of business there already, but we think the Mastercard partnership is a huge enabler of growing this business. Investment funds or private equity funds. This is the Alpha business that we purchased, so the ability to sell to this segment.
The last is digital currency, and I mentioned earlier when we were talking about stablecoins, we're active in terms of having partners in the crypto space and providing the on-ramp, off-ramp, foreign currency conversion for them. What we're super excited about is we went into this year really as corporates as our main business within cross-border.
We've now expanded substantially into these three other segments. We think this positions us really well as we go forward with the business and think about continued 10% organic growth for the overall organization. Next, vehicle payments. Another really large part of our business. It's actually interesting if you kinda reflect back, right? We say we're a corporate payments company. We've just talked about the corporate payments segment.
Vehicle payments is really just another flavor of corporate payments, right? It's a very specialty form in terms of very much focused on companies with large fleets, right? It is another form of vehicle payments or corporate payments. When you think about the vehicle payments business, in 2025, we operated in three geographies, about a $2.1 billion business.
The three geographies we operated in were the U.S. Europe and the rest of the world, and Brazil. Each of those were about similar size in 2025, so this is a very global business. The growth rate on this business, what we shared is that it'll grow about 9%, you know, high single digits in 2026. Still really encouraged about the overall performance of this business. Don't wanna leave off kinda like some key advantages that we have here. Proprietary fuel networks, over 80,000 sites, EV charging stations, 1 million charge points. Really important to note that while EV has fallen out of favor in the U.S., EV is still very much in favor on the continent and in the U.K.
When we go to market, why that Europe or rest of the world business continues to deliver a 9%-10% organic growth rate is that we pitch not only a fuel solution but an EV solution, which is really powerful for the markets that are interested in it. Lastly, in Brazil, Semparar is our go-to-market brand in Brazil. This is really a super app that we've built in a B2C business all around the car ownership experience of the customer.
This has continued to be a really strong performing business for us, delivering kinda mid-teens to high teens organic growth consistently. Hopefully a nice overview of the two businesses that we're in without going into too much detail. kinda stepping back of, okay, well, what does this mean in terms of your growth algorithm, et cetera?
What I would say to you is really strong growth algorithm in the business. The headline would be 10% organic growth every year, and we expect cash EPS to grow faster at +15%. Let's maybe pull each of those apart and talk a little bit about what that means. If we look at the performance drivers on organic growth, as we've said, a large TAM, we've got a very efficient selling system, revenue retention, 92% was the latest statistics. A high revenue retention and call it, you know, flat to slightly up same-store sales. What that results in is a 10% organic growth rate. Next, we move to EBITDA. We expect that revenue growth to flow through and to have operating leverage, so we expect EBITDA to grow, call it low double digits year-over-year.
In terms of capital deployment, as I shared with you, we have a significant amount of free cash flow, about $1.5 billion. We can use that to deploy against accretive M&A, buybacks, or to pay down debt. I've got a lot of things in my arsenal in order to make sure that I deliver that 15% cash EPS. That's what kind of, you know, leaves us here with 15% cash EPS. We've had a 10-year-plus history of delivering that. One important stat to take away is these growth rates put us in the top 10% of companies in the S&P 500. Really an elite space to be in terms of the returns. We would love to be in an elite space in terms of the multiple for this business.
Unfortunately, obviously, what's been happening in overall payments and disruption and worries in the marketplace, don't have us as high as we'd like to be, but just make sure investors know that we'd like to see that multiple pick up given the results of the business. Just a quick snapshot at organic revenue growth.
You can see for four out of the last five years, we've delivered 10% or greater organic revenue growth. In 2026, we're planning on delivering 10% as well, so that would be five out of six of the last year. Consistent track record here. We're really proud of our track record in terms of compounding revenue and compounding cash EPS. We did these charts from the time of the IPO.
On the revenue side, you can see we're about $400 million in revenue, predicted to be $5.3 billion in revenue for this year, 2026, that's compounding at 13%. Similar on cash EPS, $1.66 is now $26, compounding at 14%. I don't know how many other companies can put up this kind of a track record. The message to audience is we've had a great track record. We can, you know, believe we can continue to deliver on this going forward.
Wouldn't be an investor conference if we didn't hit on capital allocation really quickly. Let's take a look at our capital allocation philosophy. I'd say in general, our leverage ratio, 3x, is the highest that we wanna take our leverage ratio. We have communicated for a unicorn, as you know, they don't come around very often.
We would pierce 3x with a plan to march it back down pretty quickly because you see the cash flow generation of the business. The 3x is where we plan to stay or lower. How do we think about capital allocation? First and foremost, we're a growth business. We've gotta feed that growth. Feeding the organic growth at the efficient frontier, meaning we need to deliver 55% margins, you know, in that range, so that being the balance of feeding the organic revenue growth. Next, we've done over 120 accretive deals since the company was started in 2020.
Accretive M&A is very attractive to us, and I'll show you a slide coming up where you can see we've really been excellent allocators of our capital and been able to drive the growth of the business through it. Lastly, share repurchase is always an attractive tool for us when there's not interesting M&A to do and when the shares are so undervalued.
For example, in the fourth quarter, right, there was a pullback in the stock. We'd issued a leverage ratio for a full year. When I went on investor meetings in the fourth quarter, I asked investors, "Hey, if I go up to 3x for the quarter, are you guys okay with that if I buy back shares?" Like, I got high fives from everybody in the room.
When we're in those positions of really being depressed in the stock, we're definitely gonna buy back, because we believe in ourselves more than we would necessarily believe in an M&A transaction. This is a slide I was talking to you about in terms of capital allocations. Maybe the first thing that I'll draw your attention to is let's go all the way over to the right and look at the leverage ratio at the end of the year.
You can see it's varied between 2.4x and 2.8x, but we've always stayed, you know, at that 3x or below level. If we go over to the left, what you'll be able to see is we said, "Okay, this was our adjusted net income for the years." Let's go to the bottom.
Call it, you know, $10 million. $10 billion. Sorry. $10 billion. How did we deploy this, right? $15 billion, we deployed $7 billion in M&A and $8.5 billion in share repurchase. Just a track record over the last nine years of how we've been able to deploy this capital. I think what should be really exciting to investors in the room is if you look at the amount we've deployed in M&A in 2025, $3.2 billion, obviously a lot of money. What we're excited in that is we acquired Alpha and we also made the investment in AvidXchange. We own a third of AvidXchange, and we bought a business in Brazil to continue to grow the Brazil business.
Message here is we've been excellent at allocating capital and managing M&A with buybacks. Lastly, I've got 2 minutes left, so pretty good timing there, I think, is, you know, business opportunity. We really see, our ability to create value for our clients is very high in terms of controlling their payments and controlling their expenses, making their payments.
Very large TAM, call it $150 trillion in TAM. We do have market-leading products, and we specialize in sales, and we have the proprietary networks that I spoke to. What does this result in? This results in the medium-term guidance that I shared with you.
Organic growth of 10%, relatively fixed cost basis, so the ability to scale against that cost basis, for 2025, $1.5 billion of free cash flow, and strong overall operating metrics. Hopefully that was helpful. We're gonna have a breakout session following this. We got about a minute left if we've got any questions in the room. Otherwise, we'll cover it in the breakout session.