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Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press 0, and a member of our team will be happy to help you. Hello, everyone, and welcome to today's CorPay Second Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. Peter, 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 the star and 1 on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. And it is now my pleasure to turn the meeting over to James Eglseder. Please go ahead.
Good afternoon, and thank you for joining us today for our earnings call to discuss the second quarter 26 results. With me today are Ronald F. Clarke, 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 most applicable GAAP measures. Our remarks today will include forward-looking statements about expected operating and financial results, strategic initiatives, acquisitions, 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 8-Ks and can also be found in our annual report on Form 10-Ks. These documents are all available on our website and at sec.gov. So now I will turn the call over to Ronald F. Clarke, our Chairman and CEO. Ronald?
Okay, Jim. Thanks. Hello, everyone, and thanks for joining today's call. Upfront here, I plan to cover three subjects. First, provide my take on Q2 results. Second, share our updated guidance for 2026. And then lastly, I will speak to our future and where we are headed. Okay. Let me begin with our Q2 results, which were very, very good. We reported revenue of $1.34 billion, that is up 21%, coming in $45 million above our expectations. Q2 macro was super favorable to us. It contributed about $30 million more than our expectations, meaning about $15 million of the beat was just underlying performance. We reported cash EPS of $7 on the button; that is up 36%, setting an all-time company earnings record. So, feels good. Our two biggest corporate payments deals, the Alpha acquisition and the Avid investment, contributed $0.39 of cash EPS accretion in the quarter, spot on our target. Our Q2 fundamentals were very solid. Overall organic revenue growth was 10%. That was led by our Corporate Payments segment at 16% and our Vehicle Payments segment at 8%. So taken together, our two biggest segments delivered 12% organic growth. Operating trends also are very good in the quarter: retention remaining steady at 93%, year-over-year sales or new bookings terrific, growing 30%, and same-store sales in the plus column, +1%. So these trends are super helpful and bode well for continued performance here in the second half. So all in all, really an outstanding quarter and an outstanding first half, really against both our expectations and, maybe more importantly, against the prior year. Alright. Let me make the turn to our 2026 outlook. We are raising full-year revenue guidance to $5.31 billion at the midpoint. The bridge is as follows. First, we will flow through our Q2 $45 million revenue beat. Second, we will increase our full-year revenue guidance another $15 million based on expected better macro and business fundamentals. And we will net out $40 million related to our expected EPICS divestiture, and we are assuming a September 1 close. We will continue to outlook 10% organic revenue growth in the second half, with our Corporate Payments segment expected to maintain a mid-teens-plus organic growth and our Lodging segment set to accelerate to mid-single digits. On the earnings side, we are raising full-year 2026 cash EPS to $27.35 at the midpoint; that is up materially from our $26 initial guide at the start of the year. The rest-of-year EPS bridge goes like this: we will flow through our Q2 cash EPS beat of $0.45. We will raise the rest-of-year cash EPS another $0.20, and we will hold the EPICS divestiture EPS impact neutral, as we plan to use the deal proceeds to repurchase CPay shares. Look, this higher full-year 2026 guidance implies good things: 17% full-year revenue growth, 28% full-year cash EPS growth. Cash EPS for 2026 is up about $6 from 2025, cash EPS exit rate in Q4 exiting over $29, a full-year cash EBITDA approximately $3 billion, and $1.8 billion of full-year free cash flow, which is approximately a 7% yield. The drivers of this 2026 performance are a combination of a few things: obviously, a very favorable macro environment for us, particularly in the first half; the two big accretive Corporate Payments deals; and mostly just strong underlying fundamental operating performance. So taken together, we have a lot of confidence in the outlook. Okay. So last up today, I do want to share our thoughts on the road ahead for the company. We did post an updated investor presentation today to our website. It lays out our direction along with our growth algorithm. I do want to say we have really never felt clearer about the way forward or even more excited about the prospects of the company. So we are really in a great spot. So let's start out with the portfolio. We have said repeatedly that our plan is to create a simpler company with fewer bigger businesses. You should expect to see us divest more subscale businesses like today's EPICS announcement and really double down in three primary areas. First, spend management, which is our card and AP businesses. We will do more there. We will head towards the procurement space more. We will expand wider geographically. We will make that a bigger business. In Vehicle, we will stay invested in our largest and most advantaged fleet businesses, and we will also embed fleet into our spend management platform so that our spend management platform can serve the unique needs of fleet-intensive companies and their drivers. There is actually a slide — I think it is the last slide in our supplement — that lays out our progress there where we are selling our spend platform to both fleet-intensive businesses and traditional businesses. So take a look. The last area to double down would be cross-border. Obviously, we plan to do more there. We are in the process of adding new real-time private block rails and also investing to build out our global banking and deposit offering. Both of these things we think are game changers for middle-market companies. So the portfolio repositioning gives us a $600 billion revenue TAM for a $5 billion company today. So it certainly gives us the potential to at least 10x this company over time. So the second direction for us is to 'go left,' which means we plan to help our clients with their indirect expense decision-making before they approve payments. So we will help support decisions like the selection of vendors, the pricing of vendors, the terms with vendors, and the renewal decisions they need to make with vendors. We will deliver a set of tools to be helpful there: benchmarking data, spend insights, and guidance for clients on how to negotiate renewals to a better outcome. We really do aspire to bring more value and go left — better helping our clients with the expense management assignment. Finally, let me turn to our midterm growth algorithm. It remains unchanged. As a reminder, we target 10%+ organic revenue growth, low-teens PBT growth, and over 20% cash EPS growth. The model works first because there is a large opportunity for us to sell into, we have proven retention and sales capabilities, and we generate a material amount of free cash flow yield. We do expect to have approximately $15 billion of available capital over the forecast period via a combination of our annual free cash flow plus higher debt capacity as our earnings grow. This capital is what creates EPS acceleration as we will either buy back half of CPay or alternatively buy the earnings of other Corporate Payments companies based on relative returns. So look, in conclusion today, we are obviously delighted with the Q2 performance. We are confident in our raised second-half guide — again expecting mid-twenties year-over-year cash EPS growth — and we are really excited about the future, the road ahead, and what CorPay can become. So with that, let me turn the call back over to Peter to provide some additional details on the quarter. Peter?
Thanks, Ronald, and good afternoon, everyone. We delivered another outstanding quarter with 21% revenue growth and 36% adjusted EPS growth year over year, marking our fourth consecutive quarter of outperforming expectations. Our first-half performance was exceptional, and we are proud of what the team accomplished. While we have certainly benefited from favorable macro conditions, the foundation of our performance continues to be consistent double-digit organic growth. That consistency is the engine behind our compounding model and we have now delivered double-digit organic revenue growth for five consecutive quarters and 10% organic growth in five of the last six years. Having been in the CFO seat for just over a year, I can tell you these outcomes do not simply happen. They are the result of constant focus, active management, and thousands of decisions made across the organization every day to drive returns. I would not underestimate just how important our operating model is to our long-term performance. Now let's turn to segment performance and the underlying drivers of our organic revenue growth in the quarter. Corporate Payments delivered 16% organic growth for the quarter, including a 180-basis-point drag from float revenue compression driven by lower interest rates year over year. The organic revenue growth was in line with our expectations. Strong performance in both cross-border and payables. Overall Corporate Payments continue to be driven by strong underlying customer activity, with organic spend increasing 43% to $95 billion. Cross-border continued to deliver strong sales and revenue performance in Q2. Alpha's integration continues to progress exceptionally well, with over 80% of Alpha's corporate volume now migrated to our global tech platform. The payables business continued to perform well, driven by sales and volume growth. We are also pleased with the strong performance of Avid, our minority investment, which is reflected as an equity investment in our financials. Avid continues to execute well under new ownership, with sales growing more than 30%, continued strength in volume and revenue, and EBITDA more than doubling year over year to a record level. Vehicle Payments organic growth was 8%, right in line with our high-single-digit expectations. Brazil and Europe remain quite strong. In the U.S., growth remains consistent with our strategy of reallocating sales investment toward the higher-return opportunities within Corporate Payments. Lodging was in line with our expectations, delivering sequential organic revenue growth improvement of 2% versus Q1 26. We have now lapped the more episodic events last year that created tough comps, and we continue to expect organic growth to perform in the second half of the year. In summary, we delivered 10% organic growth in Q2 driven by sales growth of 30% and retention rates of 93%. All quite robust. Corporate Payments and Vehicle Payments delivered a combined organic growth rate of 12%, consistent with Q1. Taken together, these results reinforce our confidence in the durability of our growth model and support our decision to increase full-year guidance. Now looking further down the income statement. Operating costs increased 9% excluding the impact of FX, stock compensation, amortization, and a settlement charge. The settlement charge of $100 million relates to the FTC matter and is subject to final commission approval. The 9% increase was primarily due to sales investments and modestly higher credit losses. Adjusted EBITDA margin of 57.3% was up approximately 100 basis points over the prior year, primarily due to operating leverage and flow-through of macro benefit. Our adjusted effective tax rate for the quarter was 25.3%. The year-over-year decrease in the tax rate was driven by our improved mix of earnings. Turning to the balance sheet, we ended the quarter in a very strong financial position. Our leverage ratio finished at 2.55x, and we had approximately $1.6 billion of available capacity under our revolving credit facility. During the quarter, we repurchased $321 million worth of stock, retiring approximately 1 million shares. As of quarter end, we still had roughly $1.4 billion remaining under our current share repurchase authorization. We also completed the refinancing of our revolving credit facility and Term Loan A, increasing the size of our revolver by approximately $1 billion to $3.7 billion while paying down our Term Loan B by $1 billion. Over the past nine months, we have successfully refinanced our entire debt stack, extending maturities, lowering borrowing costs, and further strengthening our balance sheet. More importantly, from a capital allocation perspective, we have increased our financial flexibility and are well positioned to continue executing our balanced strategy of both meaningful share repurchases and disciplined accretive M&A. Finally, I would like to touch on our interest rate profile. Following the Alpha acquisition, our restricted cash balance increased significantly, primarily reflecting the growth of the global bank account business. Our cash now creates a meaningful natural hedge against our floating-rate debt, with approximately 85% of our exposure naturally offset during the second quarter. Including our interest rate swaps, we were more than 120% hedged. Given the strength of that natural hedge, we do not expect to enter into additional interest rate swaps going forward. Now let me share some additional information on our updated 2026 full-year and Q3 outlook. As Ron mentioned, we signed a definitive agreement to sell EPICS, a noncore Vehicle Payments asset. We expect the transaction to close this fall, likely between September and October. For planning purposes, we have assumed a September 1 closing. The transaction is expected to reduce 2026 revenue by approximately $40 million, or roughly $10 million per month, but is not expected to have an impact on adjusted EPS because we intend to redeploy the proceeds into share repurchases. We are raising our 2026 revenue guidance to $5.31 billion at the midpoint, growing 17% year over year. Importantly, this guidance continues to assume approximately 10% organic revenue growth for the year. Our updated revenue outlook flows through our Q2 beat of $45 million, raises the rest of the year by $15 million driven by a combination of macro favorability and business momentum, partially offset by $40 million from the sale of EPICS. We are raising our full-year guidance for adjusted EPS to $27.35 per share at the midpoint, growing 28% year over year. This captures the $0.45 beat in Q2 and raises guidance by $0.20 from higher revenue and productivity improvements over the rest of the year. Our Q3 revenue guide is $1.35 billion at the midpoint, growing 16% year over year. We expect Q3 organic revenue growth in the range of 9% to 11%. We expect adjusted EPS of $7.15 at the midpoint, growing 26% year over year. Stepping back, our model is built to compound over time. We remain focused on consistently delivering double-digit organic growth, maintaining strong margins, and deploying capital where we believe it generates the highest long-term returns for shareholders. Additional details regarding our full-year guidance raise and Q3 outlook can be found in our earnings release and earnings supplement. So operator, please open the line for questions.
分析師問答
Thank you. As a reminder, at this time, if you would like to ask a question, please press star and 1. We do ask that you please limit yourself to one question and one follow-up. We will take our first question from Ramsey El-Assal with Cantor Fitzgerald. Please go ahead.
Hi. Thank you so much for taking my question and another great quarter. Freight prices remain healthy and fleet operators appear to be in a much better place than they were post-COVID. Do you see an opportunity to open up the credit a little bit more, maybe lean in harder to some slightly higher-risk parts of the market to drive incremental growth on the vehicle side of the business?
Hey, Ramsey. Thanks for the question. We do experience when fuel prices go up and there is stronger demand, that there is naturally a higher risk to credit losses, and we took a slight provision for that within the quarter. But what I would say is we are not going to weaken our underwriting standards to gain business here.
Fair enough. And then on a follow-up for me: you announced the EPICS divestiture, and you also talked about the intention to create a simpler company. Should we think about that as more trimming of these very small kinds of embedded business lines, or is there an appetite or demand out there for a larger simplification of something like a lodging segment or larger chunks of the business?
Hey, Ramsey. It is Ronald. It might be both. I would say we are on track. The first thing you said: we have identified another two, three, four businesses that are kind of subscale or not as related like the EPICS thing. And as I said on other things, we want better performance first. I want to have improved performance because then it gives us options. So you should look for more EPICS-like things over the next six to 12 months. And if performance improves, maybe something additional.
Thank you. And we will take our next question from Tien-Tsin Huang from JPMorgan. Please go ahead.
Now is this better? Sorry to waste your time. As always, nice to talk to you guys. Just thinking maybe for you, Ronald, has the bar changed at all for M&A and buybacks given pipeline valuations? I know you are focused on these divestitures; has the bar changed?
Yeah. I think it has changed. And like I said last time, if anything, we have seen some of the transactions get back into a more realistic range. So I think we are actually in a pretty good spot.
You know, glad to hear it. And then just on the bookings front, that was really strong. Maybe just double-clicking on that: how broad-based was it? Where were you outperforming? Can you replenish the pipeline as we go into the second half?
Yeah. It was pretty good. It was pretty broad-based. We did kind of high teens year over year in Vehicle, and close to 40% growth in Corporate Payments. So we are obviously selling a lot of that. We poured incremental investment into it, so there is more spend behind that, reflecting the increase. We target sales to grow about 20% to hit our overall rhythm, so this was a bit better than that. I would say our rest of year is probably targeting about that 20% again.
Thank you. And we will take our next question from Sanjay Sakhrani with KBW. Please go ahead.
Thank you. Ronald, the Corporate Payments division obviously did really well with the revenue growth up 16%. As we look ahead, it seems like the comparisons get easier. Can this growth rate sustain itself, if not accelerate from here?
I think it is a good question, Sanjay. It is a function again of investment. We were guiding basically to 16-plus here in the second half, which is attractive. We have super line of sight in that business on both retention and the base. That business has retention closer to 96% or 97%. Retention in the base is positive. So whenever you have that setup, it is math: the growth rate is sales. We sold 40% more in the quarter, so that is the toggle. Unlike startups, we balance making a buck with growing. We put incremental money into it and took a bit of money out of Vehicle. That is our plan for now. We are continuing to invest and will update if we decide to invest more next year. But we are pleased with the growth rate.
Okay. And then on divestitures: as we think about the divestitures that you will make or have identified, do those accelerate the revenue growth rate, or are they just too small to have an impact? And then maybe comment on what you are seeing in the M&A market in terms of acquisitions.
I would say it depends. We announced two divestitures this year; those would actually be slightly dilutive to us. The parking business was a high flyer through 20-25% growth and EPICS was a perennial 10-11% grower. Some of the other things we are looking at might be lower growth. We are trying to clean house with smaller things. We need to add billions of revenue to the company, and growing a $100 million business to $110 million is not getting us there. On the acquisition side, we did a couple of large transactions last year and have our sights on other significant things. We are in discussions with those companies and some of those transactions are meaningful and actionable. So always stay tuned on the acquisition front.
Thank you. And we will take our next question from Mihir Bhatia with Bank of America. Please go ahead.
Good afternoon. Thank you for taking my question. Ronald, I was wondering if you could give us an update on the Mastercard FI channel. I think previously you called out three wins. Where does the pipeline stand and are you still expecting a couple of points of cross-border acceleration from that? Trying to get an update on that Mastercard partnership and where things stand with the pipeline. Thank you.
It is better than expected again. The thesis we had that Mastercard and those bank folks know cross-border is proving to be true. The numbers are good. We are now at 10 FIs that have been closed; on the last report I saw, we have 100 active additional FIs in the pipeline. So it is positive. Mastercard is being super helpful in introductions. The selling cycle with FIs is longer than with corporates, but we are still bullish and their effort and energy so far has been excellent.
Great. And then if I could ask about the global banking: you have described it as a potential game changer. What is the monetization timeline there? What expectations should we have over the next year or two?
I think we should see a big step up next year. We are still building the product. At a high level, we open local foreign bank accounts for clients—if a company in Atlanta wants to do business in Europe, we can open a foreign bank account in days instead of months through a correspondent. The work we are finishing is linking multiple local accounts and balancing them back to the primary account, which is the enhanced product beyond a single local account. That is due out of the kitchen in Q4. We expect to sell a lot more of it because it is more attractive to clients to open multiple local accounts that are tied together. We will sell it to our existing client base in cross-border and payables and expect strong uptake next year.
Thank you. And we will take our next question from Darrin Peller with Wolfe Research. Please go ahead.
Hey, guys. Thanks. You have talked, Ronald, about the opportunity to cross-sell your fleet card and fleet management products into the spend management customer base. Maybe just talk us through how you are thinking about that cross-sell opportunity now and where it could go more broadly across other products — in AP and bill pay and cross-border — where are the opportunities to further expand with your existing base?
It has been a long articulation of that. If you open the earnings supplement, the last page shows what we are asking: we have a 'spend management platform' — cards plus software — and on that same platform a client can buy different things. Drivers can buy fleet products, travelers can buy T&E products, procurement people can buy purchasing products. We take that same platform and sell it to fleet-intensive businesses and to traditional companies. The platform is embedded with fleet networks, point-of-sale data capture, and mobile apps; when our teams go to companies they can ask whether the company is fleet-intensive or not, and propose the relevant mix. It makes it simpler for clients and gives us advantages because other card issuers don't have a 20-year-old network for fleet purchasing or our virtual card network. We collect more data and have better economics at those merchants than others. Attaching those networks to our card program is a competitive advantage.
Alright, that's really helpful. Thanks, Ronald. Just a quick follow-up if you can on margins: should we expect further expansion from here? How much more investment do you think is needed to sustain this type of 10%+ organic profile? You have achieved strong margins; curious about the path from here.
Hey, Darrin. For the quarter, we achieved a strong 57% EBITDA margin, and a lot of that was helped by flow-through of the favorable macro. For the back half we expect margins to be slightly below where we were last year. We feel we are invested at the right level to deliver on organic growth targets. We have already achieved very strong margins and do not look to increase those significantly; more of the story is an investment story.
Thank you. And we will take our next question from David Koning with Baird. Please go ahead.
Yes. Hey, guys. Great job. One thing I was wondering about: it looked like Brazil remains a little slower than normal and you still had a great quarter. I guess I am wondering how much better it would have been if Brazil was running normal — am I right about that? Also, how's the Google partnership or ad/search stuff going? Maybe reflect on all of that.
Hey, David. I would say, yes, it was just a smidge slower. We have some initiatives and new ideas, so you will see that kind of activity in the rest of the year. We expect a point or two improvement in Q3 and Q4. We have not planned in a full resolution of the Google issue in our forecast, but we have other tricks to keep that thing chugging. Also, free flow in Brazil is helping: a significant portion of toll transactions there are moving to electronic-only payments, which brings incremental travelers into the mix. Combined with sales efforts, that will support high-teens performance in the second half.
And just a follow-up: other revenue was up a lot sequentially in Q3 last year, about $20 million. Does that create a tough comp at all, or is that normal seasonality going forward?
Appreciate the question. Our gift business is in 'other' and it is the largest component, and there is quite a bit of variability between quarters in the gift business. Last year they also had a changeover that drove that up, so it does create a tougher comp in 'other' in the back half.
Thank you. And our next question comes from Nate Svensson with Deutsche Bank. Please go ahead.
Hey, guys. Nice results, and thanks for taking my question. Ronald, I thought your commentary on 'Go Left' was pretty interesting. Maybe some color on what your optionality there looks like in practice: what products and solutions do you plan to bring to market to help clients with vendor selection, pricing, etc.? Will this require a certain level of investment, organic or inorganic, or is it more reorganizing existing resources? How big could that opportunity be and what could it add to growth in the coming years?
Big Nate — good question. At a high level, AI models are changing the game in procurement, contract management, and price comparisons. From talking to clients, we hear: 'I have $800 million of indirect expense and you guys help manage and pay it, but should I have $750 million in expense? Should I have these vendors?' This is super adjacent to what we do; it's left of payment. We are vetting partners with capabilities here and looking to integrate those functions. We have a large existing client base that could benefit. I think it is a big deal both in terms of revenue acceleration in the spend business and potentially in sales, because procurement and finance executives want to reduce indirect expense and improve processes. We aim to appeal to the C-suite with these add-ons.
Interesting. And a follow-up: you were on the beat-and-raise and you called out some help from macro but underlying momentum as well. Could you put a finer point on that underlying momentum? Which segments were better than expected in Q2 and what do you expect to be better than expected for the rest of the year?
Appreciate the question. Our thought process here is this is a relatively immaterial raise: $15 million of revenue and $0.20 of EPS. But our message is confidence in achieving our back-half guidance. We set a significant climb for ourselves in the back half: absolute revenue is growing about $100 million from Q1 to Q4, and absolute EPS is growing over $1.50 from Q1 to Q4. So we are communicating confidence in achieving those amounts.
Hey, Nate. Mostly, do not miss that we are targeting about 25% cash EPS growth year over year in the second half — exiting at over $29 — and that is the main message. The numbers are significant versus the prior period and we are focused on delivering that absolute growth rate.
Thank you. And we will take our next question from Madison Sewer with Raymond James. Please go ahead.
Hey, guys. Good afternoon. You talked about some reallocation from U.S. Vehicles to Corporate Payments. The U.S. business is slower growth; how confident are you around sustaining high-single-digit organic Vehicle growth, especially as you reallocate some resources? It seems like it could be pretty high given your comments around high-teens Brazil growth, but would love to hear your thoughts.
Good question. First, these are good businesses: durable, profitable, advantaged networks and tech. Historically, Vehicle had lower retention and same-store sales, but the pivot we made a couple of years ago has landed us at line-average retention and improved same-store sales. We changed the mix to larger, international business and adjusted U.S. mix, which improved retention and stabilized the base. Now it's a straight sales game: if we spend on sales and make sales, we can keep growing high single digits. We are prioritizing higher-return Corporate Payments, so we lead a bit more there, but Vehicle remains stable and durable.
Okay, helpful. Follow-up on Corporate Payments: you expect to maintain mid-teens-plus organic growth in the second half. Any color on cross-border versus payables — any changes since the recent tech-in, or are things tracking with what you laid out?
Not much difference between the two sub-lines; they are both growing and selling. Two exciting potential upsides are the bank initiative we discussed and getting the payables and spend management product more widespread. Both are in flight and could help next year if they take hold.
Thank you. And our next question comes from Michael Infante with Morgan Stanley. Please go ahead.
Yeah. Hey, guys. Thanks for taking my question. You have previously spoken about the 40% of your flows within cross-border that are still on SWIFT. I think you previously mentioned trying to take that volume mix down closer to the mid-teens level by leveraging some of the private blockchain rails like Connexus. Ronald, you highlighted that in your prepared remarks too. I just wanted to ask on SWIFT directly, given their announcements about more real-time capabilities as well. How do you think about that volume mix shift and the differentiation between SWIFT real-time rails relative to something like Connexus and the decision tree there? Thanks, guys.
Good question. For us it is about speed and cost. Whether it's the JPM thing or other bank consortia that want to tokenize fiat, we like tokenized fiat. We have already done real transactions — tens of thousands on the JPM private blockchain — so it's real. I think we could get to half of our wires moved off SWIFT onto one of these rails. If SWIFT matches that speed and cost, great. But we like tokenized fiat, private rails, and the idea that banks can credit outside of banking hours — that is a big client benefit. Overall, the banks' moves increase the chance of the outcome we expect for where this market is headed.
And then just a quick follow-up on 25.50% over the prior year.
More importantly to me, I just had a review last week: their revenue growth is expected to tick up double digits as we get into the back half. Revenue growth has been the key indicator and they are bullish on it. The composition of that revenue is not changing much; software revenue has been pretty stable and we see no attrition on the software side. They are getting wider monetization beyond virtual cards, including debit and faster ACH-like products. They are adding AI features that clients like — small examples like automated invoice fetching — all of which adds client value. Both Avid and Alpha are performing well for us; combined they contributed about $0.39 of EPS accretion and are driving good outcomes.
And as a reminder, if you would like to ask a question, please press star and 1. It does not appear we have any further questions at this time. We would like to thank everybody for their participation in today's conference. This does bring us to the end of the meeting, and you may now disconnect.