Corpay, Inc. (CPAY) Q2 2026 Earnings Call Transcript

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 Q1-2026. We've 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. Our corporate payments and vehicle payment segment totaled 84% of our Q2 revenue and 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 four-year guidance. Now, looking further down the income statement, operating costs increased 9%, excluding the impact of FX, A, 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 2.55 times, 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've 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've 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'd 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 effectively more than 120% hedged. Given the strength of that natural hedge, we don't 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 non-core vehicle payments asset. We expect the transaction to close this fall, likely between September and October. For planning purposes, we've assumed a September 1st 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're 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-favibility and business momentum, partially offset by $40 million from the sale of Epyx. We're raising our four-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 $1.355 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 four-year guidance raise and Q3 outlook can be found in our earnings release and earnings supplement. So, operator, please open 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 one on your touchtone telephone. We do ask that you please limit yourself to one question and one follow-up. We'll take our first question from Ramsey Ellisella with Cantor Fitzgerald. Please go ahead.

Hi, thank you so much for taking my question and another great quarter. However, as freight prices remain healthy and fleet operators seem to be in a much better place than they were, God knows, post-COVID, do you see an opportunity to open up the credit box a little bit more, maybe lean in harder to, you know, some slightly higher risk parts of the market to drive on the vehicle side of the business, obviously, to drive incremental growth?

Hey, Ramsey, thanks for the question. So, you know, we do experience with fuel prices going up and the demand that there's naturally a higher risk to credit losses. So we've taken a provision for that within the quarter, a slight provision for it. But what I would say is we're not going to, you know, weaken our underwriting standards to gain business here.

Okay, fair enough. And then on a follow-up from 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, you know, trimming more of these very small kind of embedded business lines, or is there an appetite or demand out there for a larger, you know, simplification of something like a lodging segment or larger, you know, chunks of the business? hey ramsay it's ron it might be both i'd say we're on the track for the first thing you said we've id to another you know two three four businesses that are kind of subscale or not as related like the epics thing um and as i said on other things we want better performance first right i want to have improved performance um because then it gives us options I want to say you should look for more of the ethics-like things over the next 6 to 12 months, and if performance improves, maybe something additional.

Got it. Thank you.

Thank you, and we'll take our next question from Tianjin Huang from J.P. Morgan. Please go ahead.

Your line is open. Please make sure you check your mute switch.

Even we can't hear you, Tianjin.

Now is this better?

Yes, we can hear you now. Please go ahead.

Sorry to waste your time. It's always nice to talk to you guys. Just thinking maybe for you, Ron, has the bar changed at all for M&A and buybacks given pipeline, I know you're focused on these investors. You announced one that you just said. Has the bar changed?

Yeah, I don't think so, Gene. Like I said last time, if anything, you know, we've seen some of the transactions, some of the deals on the acquisition side get back into, you know, in a realistic range. So I think that we're actually in a pretty good spot.

I'm 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 are you outperforming? Can you replenish the pipeline as we go into the second half?

Yeah, it was pretty good. I'd say I'm looking at that report. It was pretty broad-based. We did kind of high teams year over year in the vehicle and crazy, circa close to 40% sales growth in the corporate payment segment. So we're obviously selling a lot of that. Now, again, we poured, you know, incremental investment into it. So, you know, there's more spend behind that reflecting the increase. But, no, it's good. We target, I think, you know, sales to grow 20% to kind of hit our world's algorithm, so this is a bit better than that. So I'd say, you know, our rest of the year is probably targeting about that 20% again. Good to talk to you, Kyle.

Thank you. And we'll take our next question from Sanjay Sakharani with KBW. Please go ahead.

Thank you. Ron, like the corporate payments division obviously did really well with the organic revenue growth up 16%. As we look ahead, it seems like the comparisons get easier. I mean, And can this growth rate sort of sustain itself, if not accelerate from here?

I think it's a good question, Tony. I think it's a function, again, of investment. You know, we were guiding basically to 16, you know, plus here in the second half, which is obviously attractive. And we've got, you know, a super line of sight in that business on both the retention and base, like I'm staring at it. it's better than our line average right our line average is 93 that business is you know closer to 96 or 97 um retention and the base is is positive it's in the plus column so whenever you have that setup it's it's not complicated for math people that the whole growth rate is sales right it's just it's just really the sales and i said the contingents question we sold 40 more in the quarter so so that's the toggle and again unlike you know the startups we always are trying to balance you know making a buck um with growing and so that that's that's the balancing act we we put incremental money into it we've taken a bit of money you know out of the vehicle thing and so i'd say that's our plan for now we're continuing to build spending that and we'll update if we decide to invest more you know as we look at the next year but we're obviously pleased with um with this growth rate okay and then second question is just on um the divestitures um as we think about the you know the divestitures you will make or that you've identified do those accelerate the revenue growth rate or are they just um sort of too small to have an impact and then maybe you could also just comment on what you're seeing in the m a market uh in terms of acquiring stuff thanks yeah i'd say the answer the first part is it depends we have um you know businesses so i guess we we've announced you guys two divestitures this year and the answer is those would actually be you know slightly growth diluted to us the the parking business was a high flyer right grew up in front of me you know 20 or 20 25 percent um and this epics thing was a kind of a perennial 10 11 percent grower some of the other things we're looking at assange might be uh lower gross if i said hey we have three or three or four things in the block my comment be it'd be a mix some of the stuff might be a little bit slower growing but it's really what you said we're just trying to clean house with kind of smaller things you know we need to add billions of revenue to the company and so growing you know a hundred million dollar business to 110 is not is not getting us there so so that's the emphasis and I said the same thing on the acquisition side obviously we did a couple of pretty large transactions last year you know we've got our gun sites on some other pretty significant things. And so, as I said to Tingeon, we're super clear on what we want to acquire, what would be helpful. We target or we're in discussions, obviously, with those companies, and some of those transactions are meaningful. And because of the way we can run the things, they're actionable. We can actually do them. So I'd say, like always, stay tuned on the acquisition front.

Thank you.

Thank you. And we'll take our next question from Mahir Bhatia with Bank of America. Please go ahead.

Good afternoon. Thank you for taking my question. Ron, I was wondering if you could give us an update on the MasterCard, the FI channel. I think previously you called out three wins. But where does the pipeline stand? And are you still expecting a couple of points of cross-border acceleration from that? Is that – just trying to get an update on that MasterCard partnership and where things stand with the pipeline.

It's another good question. So I think we said it last time, if I had Mark, the guy that runs it, or the MasterCard folks, it's a high level better than expected again. I think the thesis that we had that MasterCard knows bank folks and we know cross-border, and that that's a good combo, that that's proving to be true. The numbers are good. We're now at 10 FIs that have been closed. On the last report I saw, we've got 100 active additional FIs in the pipeline. So I would say it's positive the offer is resonating. MasterCard's being super helpful in introductions. You know, with FIs, the selling cycle is definitely longer, you know, than it is with corporates, but I would say we're still bullish on it, and, you know, I said to the NASCAR people when we did the deal, please don't make this a press release, and I got to applaud, you know, their effort and the energy so far, so I'd say so far, so good.

Great. And then if I could ask about the global, just the global banking, I think Ron, you've described it, you know, prepare the mouse as a game changer. I just want to think about the monetization timeline there. I think Peter called out some of the benefits of the hedging, but just from a revenue standpoint, what's like the monetization timeframe and like what kind of expectations should we have over the next year or two?

I think we should see a big step up next year. We still, frankly, are building the product. Let me give the baby 101 here. So what we do is we open local foreign bank accounts. So if there's a company in Atlanta that's trying to do business in Europe, boom, in less than a week or a few days, we can open a foreign bank account for that, which would take months, years, potentially, through a correspondent. it. The work that we're doing by year on the thing is effectively linking multiple local accounts. So let's say the client in Atlanta wants to open something in the UK, on the continent, and Australia, and we go open three local foreign accounts in those jurisdictions so that they can ride on the pipes there. What we're finishing up is tying those together and then balancing them back to that account's primary bank account let's say it's back here in Atlanta and so that kind of second part I'm going to call that the the enhanced the better product than just the one-off sell the local account which is where alpha you know kind of focus so that that is due to be out of the kitchen in Q4 and two things one is I think we'll sell a lot more of because it's way more attractive, right, to go to an account and tell them, I can add these in different places, but then tie them all together for you. And then second, we're going to sell the you-know-what out of it back to the client base. I mean, think of how many middle market clients we have in cross-border, in payables, even in fleet here and internationally. And so that's the second part of the idea is to tell all the existing clients we have, whether they're in cross-border or not, hey, we can be way helpful in this way. So I'd say it's going good. You know, Alpha's selling a lot of the kind of the single local thing, but the hopes are that this kind of premium offer will be a big deal next year.

Got it.

Thank you. And we'll take our next question from Darren Peller with Wolf Research. Please go ahead.

Hey, guys. Thanks. You know, I know you've talked, Ron, you talked about the opportunity to cross-sell your fleet management products into the spend management customer base.

Maybe just talk us through how you're thinking about that cross-sell opportunity now and where it stands, where could it go more broadly across other products in AP and bill pay also and cross-border, where are the opportunities to further expand with your existing base that you have now? it's a it's a good question darren it has been a long um you know articulation of that we did stick in you probably haven't seen it yet but if you guys on the call would open at some point the um what do we call jim the earning supplement so the last page in there there is an internal slide where we actually show what you're asking which is so we have a we call it internally a management platform, call it cards plus, you know, software. And basically, on that same platform, a client can buy different things. They could, you know, drivers could buy fleet stuff. Travelers could buy T&E stuff. You know, procurement or purchasing people could buy, you know, purchasing stuff. And so if you look at the thing which is interesting is we take that same platform and we sell it to fleet intensive businesses and if you see that slide not shockingly they buy a lot of fleet a lot of fuel and they do buy some other stuff like in the midsize ones almost half their spend is non fuel and then we sell the same exact thing to kind of traditional companies maybe the white collar that don't have the same kind of drivers and they buy a little bit of fuel but all the other spend categories so the the message to everybody is we're just embedding it. In other words, we're taking the fleet networks that we build and the point of sale data capture and the mobile apps for people and we're just sticking it in the same platform so that when our guys go to companies, they can actually ask them, hey, do you have a lot of drivers and fuel or don't you? And so to your point, it's not a dumb idea now to go back to all the big-sized fleet guys and say, hey, how about buying some other stuff on the same thing and going to the regular guys and asking, hey, do we miss the fact that you actually have some drivers? And so I think it's going to be simpler, hopefully, for people outside. It's not just a bunch of kludgy, you know, proprietary fleet things. It's literally now core, you know, to this spend offering that we're going to take out of the market. And I think advantage, Darren, because But other guys that make, you know, business cards or corporate cards don't have 20-year-old networks, you know, for fleet purchasing or even the virtual card network that we built. They have just vanilla MasterCard or Visa networks. And so I think us attaching those networks to kind of our card program is going to be a pretty big advantage. You know, we collect more data than they do. We have better economics at those merchants than they do. And so we're quite, if you take a peek at that thing, hopefully the slide in there will be, you know, explanatory.

All right. That's really helpful. Thanks, Ron. Just maybe a quick follow-up, if you can, on margins. Just, I continue to see them ticking up sequentially. Should we expect, when we're thinking about further expansion from here, just how much more investment do you think is needed to sustain this type of 10% plus organic profile? So, you know, clearly it's not a small – you're not at a low margin base for now, and so I'm curious what your thoughts are on that.

Hey, Darren. Thanks for the question. So what I would say is for the quarter, we obviously achieved a really strong 57% EBITDA margin. A lot of that was helped by flow through the favorable macro, right? For the back half, we kind of expect to be slightly below where we are last year, and we feel like we're really invested at the right level to deliver on the organic growth targets. So we already, you know, achieved really strong margins. The thought is that, you know, we won't look to increase it significantly.

Morbid investments going. That makes sense. Okay, guys. Thanks, Darren.

Thank you. And we'll take our next question from Dave Koning with Baird. Please go ahead.

Yeah. Hey, guys. Great job. But one thing I was just wondering about, it looked like Brazil remains a little slower than normal, and you still had a great quarter. I guess I'm wondering how much better maybe it would have even been if Brazil was running normal, and maybe, you know, am I right about that? How is the Google partnership or ad search stuff going? Maybe just reflect on all of that.

Yeah, Dave, hey, it's Ron. so yeah I'd say you know to your point you know splitting hairs it was a smidge slower yes we're still sitting in the same spot with the Google search but we have a couple of like always new ideas so you'll you'll see that thing kind of in our rest year we have that thing kicking back up again a point or two in Q3 and Q4 so despite and we haven't basically planned in that forecast so that Google issue to resolve, but we have some other kind of tricks up our sleeve there to keep that thing chugging. So the free flow thing is actually helping us some. I don't know if people want to call them on what that is, but, you know, still a third of 40% of all the toll transactions in Brazil are not electronic. And I think like 7% of the market is now moved to free flow, which means there's no other way to pay. You have to pay electronically. You can't pay, you know, cash or credit card. So it's bringing, you know, incremental travelers into the mix. And so things like that, along with some of the sales things we're doing. So that thing will be, again, you know, high teams performance here in the second half.

Great. Thank you. And just one follow-up. the other revenue stream was up a lot sequentially in Q3. It was up about $20 million sequentially last year in Q3. Does that create a tough comp at all, or is that kind of normal seasonality going forward?

Yeah, so I appreciate the question. As you know, our gift business is in there. In the other, that's really the largest component, and there's quite a bit of volatility between the quarters in the gift business. And last year, they also had the changeover in terms of the new parts, which really drove that up. So I'd say it does create a tougher comp in the back half of the year.

Gotcha. Thanks, guys. Great job. Thanks, Dave.

Thank you. And our next question comes from Nate Svensson with the Wichita Bank. Please go ahead.

Hey, guys. Nice results, and thanks for the question. Ron, I thought your commentary on GoLeft was pretty interesting, so I was maybe hoping for a little more color on what your optionality there looks like in practice. I guess what products and solutions do you plan to bring to market to help clients with vendor selection, pricing, et cetera? Is this going to require a certain level of investment, either organic or inorganic, or is it simply more kind of reorganizing your existing resources into something that will help clients? And then maybe lastly, how big do you think that opportunity could be and what could it add to growth in the coming years?

Yeah, super good question. Big, Nate, would be my comment. So at the high level, it's the AI models, right? Those things are changing the game in lots of places, and not shockingly, they're changing the game in and around, you know, corporate procurement and contract management and price comparisons and all that kind of stuff. And so this idea from Tonkador clients and being, have tons of clients and stuff is, hey, you know, I've got, in our case, you know, $800 million of indirect expense, and you guys are super helpful at helping us manage and control and pay all that. But, like, should I have it? Should I have $750 million in expense? And should I have these people I have? And so this idea is super adjacent, Nate, to what we do. It's left. It's earlier. It's before you approve the payment, you decide whether you should have the expense and stuff. And so we're vetting, you know, a set of partners that have done some things here and looking at kind of integrating some of those capabilities. And what's interesting is we've got gazillions of clients already that we're already, you know, they're telling us they approved the payment. We're making the payment with huge amounts of spend where we're not helping. on the decision support very much let alone telling new perspectives clients hey we can be even more helpful to you so i think it's a big big deal both in terms of revenue acceleration um in that spend business and potentially sales nate of getting people more interested because bosses want to spend less indirect expense, AP managers want it to work well, the process to work better, right, and not to have fraud, not to lose money and stuff. And so, we're really trying to appeal, you know, to that C-suite a bit more with these add-ons, if you will.

Yeah, interesting stuff.

And I guess just for a follow-up, sorry, sorry, a little bit of feedback, so I don't don't know if that was on my end.

But anyway, it was on the beaten raise, obviously some help from macro, but also you called out underlying momentum, I guess, both in 2Q and for the rest of the year. So I was hoping you could maybe put a finer point on that underlying momentum. Is there one or two segments you would maybe call out as being better than expected in 2Q? And then I guess for the rest of the year relative to your prior expectations, I know high level, you know, the relative growth rates sound like they're all in the same ballpark. So I guess just on the margin, what came in better than expected, and what do you expect to be better than expected for the rest of the year?

Hey, Nate. Appreciate the question. So, maybe starting with the rest of your guide question that you put forward. You know, our thought process here is it's a relatively immaterial raise at $15 million of revenue and $0.20 of EPS, but our message is our confidence in achieving our back half guidance. And just a reminder that we set a significant climb for ourselves in the back half of the year so absolute revenue is growing called a hundred million dollars q1 to q4 and absolute EPS is growing you know called over a dollar fifty from q1 q4 so you know quite impressive numbers by themselves and q4 so again just you know sharing with everybody our confidence in achieving those hey Nate it's right what most of it I want you to miss hey Ron hey how's your guide versus last time then make sure your lens is on it's 25 percent cash EPS growth in the second half over the prior year so that that's

what we're focused on is delivering an absolute growth rate and amount you know exiting the 29 bucks or something like that that's our main messages don't miss that the the numbers that were sticking out there were significant as prior period.

Main message well received. Thanks, guys.

Thank you. And we'll take our next question from Madison, sir, with Raymond James. Please go ahead.

Hey, guys. Good afternoon. Appreciate you taking the questions. You've talked about, you know, some reallocation of investment from U.S. vehicle to corporate payments. Obviously, the U.S. business is much slower growth, but I guess maybe touch on your confidence level around sustaining high single-digit organic vehicle growth, especially as you reallocate some of those resources? It seems like it would be pretty high, given your comments, you know, just now around high-teens Brazil growth, but we'd love to just hear your thoughts about the sustainability, especially in lieu of some of those reallocations of resources.

It's another good question. The first thing I'd say is they're really good businesses. You know, whether they're growing, you know, 8% or 10%, that they're durable as hell, they're hard to knock over, they're super profitable, they have advantageous stuff, networks, tech people and stuff. So the first headline to people is, you know, don't discount just the quality of the businesses. The second point I'd make is the pivot, the infamous pivot we made a couple years ago has landed us now at literally line average retention, particularly in the U.S. and international markets. And so historically, because they were smaller, the vehicle businesses had, you know, a worse loss rate, lower retention rate. And generally, they had a worse same-store sales. And so I'm happy to report today, problem solved. Because we changed the mix of business, it was always larger internationally, but because we've moved the mix here in the U.S. larger, we've now gotten the line average loss rates and same-store sales again around flat to plus one. So it's really just a straight sales game now is my message. The growth rate now that we have stable base, which we didn't have, and way improved retention because of the business mix, now it's literally just selling. It's just investment level and productivity. And so that's what we're still talking with. We've only got so much money, right, to try to make returns. And so we're trying to trade that off between the vehicle business and other people value our corporate payments business higher. So I'd say we lead a little bit more that way, but I'd say it's high. If we keep spending money on sales and we keep making sales, I referenced high teens, sales growth in Q2 over the prior year, so we're still selling stuff. So I'd say that's the answer. It's stable. If we spend money and make sales, we can keep growing at high single digits.

Okay, that's helpful. And just a follow-up on – sorry, there was some feedback. A follow-up on corporate payments here. Obviously, you guys mentioned that you expect to maintain this mid-teens plus organic growth in the second half. You gave some color on retention versus new sales. But I was hoping you could maybe also double-click on just what you're seeing on the cross-border versus payable sides and just any changes in expectation from the recent teach-in, or are things kind of tracking with what you laid out there?

Yeah, not much difference. between those two kind of sub lines I'd say they're both it's not like one is 10 and one is 23 or something they're both kind of you know paired up in terms of the growth rate they're both you know selling a lot and stuff and as I said I think you know the couple of exciting things there that could potentially make us do better is the bank thing that I mentioned earlier if we if we deliver that version 2.0 and take it back to the base and then second it's getting the payables and spend management product over the pond, which we've done, and grabbing that TAM, and we've got more sales and clients there. So those would be the two kind of upsides of kind of offering something or going somewhere that's not kind of in the current numbers. So both of those things are in flight. So if they take hold and do better, both of those things could be helpful to next year.

And as a reminder, if you'd like to ask a question, it is the star and one on your touchtone telephone. We'll go next to Michael Infante with Morgan Stanley. Please go ahead.

Yeah. Hey, guys. Thanks for taking my question. You've previously spoken about the 40% of your flows within cross-border that are still on SWIFT. I think you previously had mentioned trying to take that volume mix down closer to the mid-teens level by leveraging, you know, some of the private blockchain rails like Conexus. Ron, you obviously highlighted that in your prepared remarks, too. I just wanted to ask on Swift directly, just given, you know, their announcement about some more real-time capabilities as well. Like, how do you think about that volume mix shift and sort of the differentiation between that Swift real-time rail relative to something like a Conexus and the decision tree there? Thanks, guys.

Yeah, Michael, Ron, it's a good question. So, for us, because it's a rail, it's just speed and cost. to your point um whether it's the jpm uh thing or you know city announced a similar thing so to me having the banks um kind of rally you know a consortium that wants to do this this speedy blockchain thing forget the stupid stable coin but just tokenize real money but we love that and i think we said it before i think um 40 000 i think is the number i think we've done 40 000 transactions already over the JPM a private blockchain so it's not just on a paper it's real we're actually moving money the guy running thing tells me hey I think we could get to half by by the time we leave for Christmas I think we could get literally half of our wires you know from Swift on to you know on to one of these things so look at Swift somehow you know match the speed and and which they haven't today with their costs like between us i'm i'm we're kind of indifferent in a way right you know as long as the thing goes there fast and it's low cost and super reliable and we can follow the breadcrumbs you know we we don't feel strongly but the main message for me is we like the idea of tokenized fiat currency we love the idea of helping clients move money instantaneously to merchants 24-7, and some of the banks, Michael, have said they literally credit it, you know, outside of banking hours. And so, what do you need to get on and out of, in and out of frequent stablecoins for? You can just tokenize a euro and send it to somebody instantaneously, and it gets credited right away. So, for us, I've said this repeatedly, the bank's announcements and move, I think, way increase the chance of the outcome being what we said, where we think the ball's going to bounce here.

Yeah, it makes a ton of sense. And then just a quick follow-up on Avid to the extent that you can share. Anything interesting in terms of underlying split there between software and payments revenue at this point and sort of the willingness of suppliers to pay to that incremental software functionality over time with everything going on with AI? Thanks, guys.

Yeah, I mean, at the high level, Avid is doing super good. I think we said their earnings last quarter were about 50% over the prior year. But more importantly to me, I just had a review last week, their revenue growth is expected to pick up double digits as we get into the back half here. And so the revenue growth has been the key indicator for us, which they're bullish on. And so the composition of that revenue, to your point, has been not much change. I'd say that the software revenue has been pretty stable. I think it's kind of low single digits growing. So we've seen no attrition, no losses, you know, from clients in terms of paying the thing. And they're doing a very good job in getting wider monetization. They've gone beyond, you know, virtual cards. They've added debit now as another way, electronics. They've got a lot more volume on, you know, paid ACH, if you will, that goes a lot faster. So I'd say generally the thing is going well, and we don't see, you know, a lot of risk on the software side. They're also way, you know, AI-ing their software. They're putting in a lot of cool things that they couldn't do before that clients like, I don't know if you like this, but called Fetch Me, where, hey, normally I'm the little person that sends out 100 invoices. I don't see Ron Clark's invoice. The thing goes and fetches it, brings it back. Like, so I would say they're sexing up, they're making the software better for clients, which adds value, and so we're liking it. I'd say I'm, you know, more excited about that company. We didn't say it, but the combo of Avid and Alpha is going to come in above. I think I gave $1 and I gave $0.39, but that thing is going to be, you know, pretty above the dollar, which is one of the reasons we're up above $0.35. And so both of those big transactions might look performing for us.

That's great detail.

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