AI Takeaway
CPAY delivered a strong Q1 2026 with revenue surging 25.4% YoY to $1.26B and operating income jumping 48.9% to $636M, driven by significant margin expansion, though operating cash flow remained slightly negative and the current ratio dipped below 1.0x.
Revenue
$1.26B
++25.39% YoY
EPS (Basic)
$5.14
++48.55% YoY
Operating Income
$636.16M
++48.94% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue grew 25.4% year-over-year from $1.01B to $1.26B in Q1 2026, reflecting strong top-line momentum likely driven by organic growth and potentially acquisition-related contributions given the 43.8% surge in total assets.
Source: Source: 10-Q Income Statement
Operating margin expanded approximately 800 basis points from 42.5% to 50.4%, indicating strong operating leverage and disciplined cost management as revenue growth significantly outpaced expense growth.
Source: Source: 10-Q Income Statement / Key Ratios
Share repurchases surged 1,238.6% YoY to $786.0M in Q1 2026 versus $58.7M in Q1 2025, signaling strong management confidence in the company's intrinsic value and a significant return of capital to shareholders.
Source: Source: 10-Q Cash Flow Statement
2 more insights available
Upgrade to unlockThe current ratio stands at 0.977x, meaning current liabilities of $15.0B exceed current assets of $14.6B. This liquidity shortfall, partly driven by an 82% surge in current liabilities, could create near-term refinancing or operational funding pressure if not managed carefully.
Source: Source: 10-Q Balance Sheet / Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $5.80 versus the $5.58 analyst consensus — a +3.9% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.26B | $1.01B | +25.39% |
Operating Income | $636.16M | $427.12M | +48.94% |
Net Income | $350.07M | $243.23M | +43.92% |
EPS (Basic) | $5.14 | $3.46 | +48.55% |
EPS (Diluted) | $5.07 | $3.40 | +49.12% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $26.66B | $18.55B | +43.76% |
Current Assets | $14.64B | $9.08B | +61.24% |
Current Liabilities | $14.99B | $8.24B | +81.98% |
Stockholders' Equity | $3.51B | $3.45B | +1.63% |
Cash & Equivalents | $2.54B | $1.55B | +63.16% |
Long-Term Debt | $10.36B | $8.17B | +26.79% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-56.62M | $-74.15M | +23.64% |
Investing Cash Flow | $369.12M | $-183.92M | +300.70% |
Financing Cash Flow | $-416.17M | $142.3M | -392.47% |
Share Buybacks | $785.97M | $58.72M | +1238.55% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 50.4% | 42.5% | +7.98% |
Net Margin | 27.8% | — | — |
ROE | 10.0% | — | — |
ROA | 1.3% | — | — |
Current Ratio | $0.977 | — | — |
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CPAY delivered a strong Q1 2026, with revenue growing 25.4% YoY to $1.26B and net income surging 43.9% to $350.1M. Diluted EPS came in at $5.07, up 49.1% from $3.40 in Q1 2025, driven by significant operating margin expansion to 50.4%.
The standout themes were exceptional margin expansion (operating margin up ~800bps to 50.4%), aggressive share buybacks of $786M (up 1,239% YoY), and a major balance sheet expansion with total assets growing 43.8% to $26.7B suggesting a significant acquisition. The one concern is a current ratio slightly below 1.0x at 0.977x.
Yes, CPAY grew revenue by 25.4% year-over-year to $1.26B in Q1 2026, up from $1.01B in Q1 2025. This strong top-line growth, combined with operating leverage, drove operating income up an even faster 48.9% to $636.2M.
Key risks include a current ratio below 1.0x (0.977x) indicating near-term liquidity tightness, elevated long-term debt of $10.4B (up 26.8% YoY), and persistently negative operating cash flow of -$56.6M despite strong reported earnings. The tension between aggressive buybacks and high leverage is also worth monitoring.
CPAY's total assets surged 43.8% YoY to $26.7B, while long-term debt rose 26.8% to $10.4B and current liabilities jumped 82% to $15.0B, strongly suggesting the company completed a significant acquisition during or just before Q1 2026. Cash and equivalents also rose 63.2% to $2.54B, reflecting the scale of balance sheet activity.