0001175454-26-000032
SEC filingCorpay delivered strong revenue and profit growth in Q1, driven by organic momentum and acquisitions, though cash flow turned negative due to working capital investments.
Net cash provided by operating activities was negative $56.6 million in the first quarter, compared to negative $74.2 million in the prior year. The negative cash flow reflects working capital investments to support revenue growth, including increases in accounts receivable and other assets. Capital expenditures were $51.1 million, up from $44.8 million, primarily due to incremental investments in technology and infrastructure. Free cash flow was negative $107.7 million. The company expects operating cash flow to improve as working capital normalizes over the course of the year.
Management expects expenses to decrease as a percentage of revenue over the long term, except for transaction-related costs. The company plans to continue investing in sales and marketing to support growth. Key risks include the FTC litigation, which remains ongoing after an Eleventh Circuit ruling, and macroeconomic headwinds from foreign exchange, fuel price volatility, and interest rate changes. The refinancing is expected to reduce future interest expense, providing a tailwind to net income.