Corpay raises outlook, sells UK vehicle payments business to focus on core payments

Corpay lifted its 2026 revenue forecast to $5.29 billion to $5.33 billion and said it will sell PayByPhone, its UK mobile parking payments business, to Lightyear Capital, sharpening a portfolio built around corporate payments and related networks. The move came as Corpay reported second-quarter revenue of $1.34 billion, up 21.8% from a year earlier, giving management fresh evidence that its core business is still expanding fast enough to support higher expectations.

Corpay announced the PayByPhone deal on Feb. 4, saying the divestiture was a continuation of its rotation toward corporate payments. The company said the sale would be neutral to its 2026 Cash EPS outlook because it plans to use the proceeds for share repurchases. That structure matters: Corpay is not just shrinking for the sake of simplicity, it is swapping a non-core asset for capital that can be returned to shareholders while preserving earnings guidance.

PayByPhone sits inside Corpay’s vehicle payments business, a segment that has been growing but is not central to the company’s longer-term story. Another report put vehicle payments quarterly revenue at $580.2 million, up 13.3% year over year. Corpay’s core appeal lies in corporate expense management, fleet payments and cross-border financial services, where scale, technology and recurring customer relationships tend to support stronger margins and more durable growth.

The company’s full-year 2025 results, also released on Feb. 4, showed 21% revenue growth, 11% organic revenue growth and 13% adjusted EPS growth. Corpay said 2025 revenue reached $4.528 billion, and the company says it serves more than 800,000 business clients and generated $1.4 billion in adjusted net income in 2024. Against that backdrop, the higher 2026 forecast looks like a management team leaning into a core franchise it believes can keep compounding, while pruning a business that no longer fits the capital allocation plan.

The sale of the UK vehicle payments unit is expected to close in the fall of 2026. For investors, the message is less about retreat than about focus: Corpay is signaling that it wants its growth story told through the most scalable parts of the platform, not through assets that sit farther from the center of the business.