CPAY · 10-Q · 2026Q3 · Full report
Interest Expense Trends
CORPAY, INC. · 2026-11-05 · Importance 36 · Surprise 40 · Matches filing data
Third-quarter net interest expense increased 8.7% to $108.8 million, primarily because of additional borrowings used for acquisitions and share repurchases, partly offset by lower rates and increased interest income on higher cash balances. Nine-month net interest expense rose 14.7% to $333.6 million. Corpay reported a $3.1 million net benefit to quarterly interest expense from interest-rate swaps and net-investment hedges. As of September 30, 2026, the company had receive-variable, pay-fixed SOFR swaps with a cumulative notional value of $2.5 billion to reduce cash-flow variability on variable-rate debt.
Key facts
- Corpay's cash flow hedges reduced variability in interest payments associated with $2.5 billion of variable-rate debt exposed to SOFR changes. source
- As of September 30, 2026, Corpay had receive-variable SOFR, pay-fixed interest-rate swap contracts with a cumulative notional value of $2.5 billion to reduce cash-flow variability on previously unhedged variable-rate debt tied to SOFR. source
- Interest expense, net was $333.6 million for the nine months ended September 30, 2026, an increase of $42.8 million from the comparable prior period. source
- Corpay’s net interest expense was $333.6 million for the nine months ended September 30, 2026, up $42.8 million, or 14.7%, from the prior-year period. source
- Corpay’s net interest expense increased $8.7 million to $108.8 million in the third quarter of 2026, primarily due to increased borrowings for acquisitions and share repurchases, partly offset by lower rates and higher interest income. source
- Net investment hedge excluded components provided a $15.7 million benefit to interest expense, net, for the nine months ended September 30, 2026. source
- Corpay recorded a net benefit to interest expense of $3.1 million during the third quarter of 2026 from swap contracts and net-investment hedges. source
- Interest rate swaps and net investment hedges provided an $8.8 million benefit to interest expense, net, for the nine months ended September 30, 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -3.1% | Interest expense, net was $333.6 million for the nine months ended September 30, 2026, an increase of $42.8 million from the comparable… |