Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Financial Data and Key Metrics Changes - Equifax reported revenue of $1.54 billion for Q3 2025, representing a 7% increase in constant currency and reported dollars, exceeding the midpoint of July guidance by $25 million [6][10] - Adjusted EPS was $2.04 per share, which was $0.12 above the midpoint of July guidance, reflecting stronger revenue growth and solid operating leverage [8][10] - Adjusted EBITDA margins improved to 32.7%, up 20 basis points sequentially [8][10] Business Line Data and Key Metrics Changes - USIS mortgage revenue increased by 26%, significantly outperforming expectations, while EWS mortgage revenue grew by only 2% against a market decline of 7% in hard inquiries [21][68] - EWS revenue grew by 5%, driven by strong performance in government and consumer lending, with government revenue growing in high single digits [9][12] - USIS non-mortgage revenue grew by 11%, exceeding the long-term framework of 6% to 8% [9][21] Market Data and Key Metrics Changes - Total U.S. mortgage revenue was up 13% in the quarter, with mortgage hard credit inquiries down about 7%, better than the expected decline of over 12% [6][7] - International revenue increased by 7% in constant currency, with Canada showing strong growth of 11% [29][30] Company Strategy and Development Direction - Equifax is focusing on leveraging its new cloud capabilities and EFX.AI™ to drive innovation and new product development [51][52] - The company is expanding its VantageScore 4.0 mortgage credit score offerings to provide competitive pricing and drive conversions from FICO scores [24][28] - The strategy includes enhancing government solutions in response to the OB3 legislation, which is expected to create significant growth opportunities in 2026 and beyond [16][21] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term recovery of mortgage activity as inflation stabilizes and rates decrease [7][10] - The company anticipates ongoing discussions with federal and state agencies regarding new solutions to comply with stricter income and work requirements, which could positively impact revenue [16][62] - Management highlighted the strong performance in Q3 and raised full-year revenue guidance by $40 million, reflecting confidence in continued momentum [10][50] Other Important Information - Equifax returned approximately $360 million to shareholders in Q3 through share repurchases and dividends, with plans to continue this in Q4 [10][51] - The company incurred a restructuring charge of about $44 million for cost reduction actions, expected to yield annual savings of about $30 million starting in late 2026 [4][10] Q&A Session Summary Question: Can you go into more detail on the mortgage pricing changes? - Management noted a groundswell of interest in VantageScore 4.0 due to FICO's price increase, with active conversations and some clients already in production [54][55] Question: Can you elaborate on the margin guidance and the reduction in USIS margin guidance? - Management explained that higher variable compensation due to better-than-expected performance is impacting margins, alongside a higher mix of mortgage revenue [56][58] Question: Do you expect the government discussions to ramp up after the fiscal year end? - Management indicated a mix of both immediate engagement and longer-term revenue opportunities, with an uptick in conversations post-OB3 signing [60][62] Question: What is driving the increase in general corporate expenses? - The increase is primarily due to higher variable compensation linked to stronger performance and revenue growth [65][67] Question: What are the different factors affecting USIS and EWS mortgage revenue growth? - Management clarified that USIS benefits from earlier mortgage activity due to its position in the pre-qualification stage, while EWS reflects pricing and product performance against a declining market [68][69]

Financial Data and Key Metrics Changes - Equifax reported revenue of $1.54 billion for Q3 2025, representing a 7% increase in constant currency and reported dollars, exceeding guidance by $25 million [6][10] - Adjusted EPS was $2.04, $0.12 above the midpoint of guidance, driven by stronger revenue growth and solid operating leverage [8][10] - Adjusted EBITDA margins improved to 32.7%, up 20 basis points sequentially [8][10] - Free cash flow guidance was raised to $950 million to $975 million, up from $900 million, with cash conversion exceeding 100% [10][11] Business Line Data and Key Metrics Changes - U.S. mortgage revenue increased by 13% in Q3, driven by stronger market volumes and lower mortgage rates [6][10] - EWS (Equifax Workforce Solutions) revenue grew by 5%, primarily due to government performance, with non-mortgage verifier growth at about 7% [11][12] - USIS (U.S. Information Solutions) revenue grew by 11%, with mortgage revenue up 26% and non-mortgage revenue up 5% [21][22] - International revenue increased by 7% in constant currency, with Canada up 11% and Latin America up 9% [29][30] Market Data and Key Metrics Changes - Mortgage hard credit inquiries were down about 7%, better than expectations of a decline of over 12% [6][10] - U.S. mortgage revenue constituted 21% of total Equifax revenue in the quarter [7] - Government revenue in EWS grew in the high single digits, exceeding expectations [12][13] Company Strategy and Development Direction - Equifax is focusing on leveraging its new cloud capabilities and EFX.AI to drive innovation and new product development [31][51] - The company is expanding its VantageScore 4.0 mortgage credit score offerings to provide competitive pricing and drive conversions from FICO [24][28] - There is a strong emphasis on addressing improper payments and compliance with new government regulations through innovative solutions [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term mortgage activity recovery as inflation stabilizes and rates decrease [7][10] - The company anticipates significant growth opportunities in the government sector due to new OB3 legislation [16][21] - Management highlighted the importance of maintaining strong cash flow and returning value to shareholders through share repurchases and dividends [10][51] Other Important Information - Equifax incurred a restructuring charge of about $44 million in Q3, expected to yield annual savings of about $30 million starting in late 2026 [4][10] - The vitality index reached a record 16%, leading to an increase in full-year guidance for new product introductions [30][31] Q&A Session Summary Question: Can you go into more detail on the mortgage pricing changes? - Management noted a groundswell of interest in VantageScore due to FICO's price increase, with active conversations and customer engagement around the transition [54][55] Question: Can you elaborate on the margin guidance and USIS margin reduction? - Management explained that variable compensation increases due to better-than-expected performance are impacting margins, alongside a higher mix of mortgage revenue [56][57] Question: Do you expect government discussions to ramp up after the fiscal year end? - Management indicated a mix of both immediate engagement and longer-term ramp-up, with states focusing on integrity to address error rates [60][63] Question: What is driving the increase in general corporate expenses? - The increase is primarily due to higher variable compensation linked to stronger performance and revenue [65][67] Question: Can you clarify the differences in mortgage growth between USIS and EWS? - Management explained that USIS benefits from earlier mortgage activity due to its position in the pre-qualification stage, while EWS reflects a more delayed response [69][70]

Financial Data and Key Metrics Changes - Equifax reported revenue of $1,540,000,000 for Q3 2025, an increase of over 7% in constant currency and reported dollars, exceeding the midpoint of July guidance by $25,000,000 [5][12] - Adjusted EPS was $2.4 per share, $0.12 above the midpoint of July guidance, reflecting stronger revenue growth and solid operating leverage [9][12] - Adjusted EBITDA margins were 32.7%, up 20 basis points sequentially [9] Business Line Data and Key Metrics Changes - USIS mortgage revenue increased by 26% in Q3, driven by stronger market volumes and lower mortgage rates [23][56] - EWS revenue grew by 5%, with government performance driving growth [10][13] - International revenue was up 7% in constant currency, with Canada showing strong growth of 11% [29] Market Data and Key Metrics Changes - Mortgage hard credit inquiries were down about 7%, better than expectations of a decline over 12% [6][12] - Total U.S. mortgage revenue accounted for 21% of Equifax's total revenue in the quarter [8] - The mortgage market decline, as measured by hard credit inquiries, was a nearly 150 basis point drag on revenue growth [44] Company Strategy and Development Direction - Equifax is focusing on leveraging its new cloud capabilities and efx.ai to drive innovation and new product development [32][57] - The company is expanding its VantageScore offerings in response to FICO's price increases, aiming to drive competition in the mortgage credit scoring market [25][28] - The strategy includes enhancing partnerships and developing new solutions to address government program integrity and improper payments [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term mortgage activity improvement as inflation stabilizes and rates decrease [7][12] - The company anticipates continued strong performance in the fourth quarter and is raising full-year guidance for revenue and adjusted EPS [12][56] - Management highlighted the positive momentum from government engagements post-OB3 legislation, expecting significant growth opportunities in 2026 and beyond [19][21] Other Important Information - Equifax incurred a restructuring charge of approximately $44,000,000 for cost reduction actions, expected to yield annual savings of about $30,000,000 starting in late 2026 [4] - The company returned about $360,000,000 to shareholders in Q3 through share repurchases and dividends [56] Q&A Session Summary Question: Can you go into more detail on the mortgage pricing changes? - Management noted a groundswell of attention regarding FICO's price increase and the competitive response from Equifax, indicating active conversations with customers about VantageScore [60][62] Question: Can you elaborate on the margin guidance? - Management explained that the reduction in margin guidance is primarily due to increased variable compensation linked to stronger performance and a higher mix of mortgage revenue impacting gross margins [63][66] Question: What is the expected ramp-up in government discussions post-OB3? - Management indicated a mix of both immediate engagement and longer-term revenue opportunities, with states likely to start using solutions ahead of the fiscal year-end [68][70] Question: What is driving the increase in general corporate expenses? - The increase is attributed to higher variable compensation resulting from stronger performance and revenue growth [72][74] Question: What factors explain the difference in mortgage growth between USIS and EWS? - The disparity is largely due to the timing of mortgage activity benefits, with USIS seeing earlier benefits from lower rates compared to EWS [77][78]

Financial Data and Key Metrics Changes - Equifax reported revenue of $1.54 billion for Q3 2025, representing a growth of over 7% in constant currency and reported dollars, exceeding the midpoint of July guidance by $25 million [5][39] - Adjusted EPS was $2.04 per share, which is $0.12 above the midpoint of July guidance, reflecting stronger revenue growth and solid operating leverage [8][39] - Adjusted EBITDA margins were 32.7%, up 20 basis points sequentially [8] Business Line Data and Key Metrics Changes - USIS revenue grew by 11%, driven primarily by a strong 26% increase in mortgage revenue, while EWS mortgage revenue was up 2% against a market decline of 7% in hard inquiries [20][12] - EWS revenue grew by 5%, with government performance driving high single-digit growth [9][11] - B2B non-mortgage revenue increased by about 150 basis points sequentially, indicating a focus on customer growth post-cloud transformation [9][20] Market Data and Key Metrics Changes - Total U.S. mortgage revenue was up 13% in the quarter, with mortgage hard credit inquiries down about 7%, better than expectations [5][6] - International revenue increased by 7% in constant currency, with Canada showing strong growth of 11% [27][28] - The mortgage market is expected to improve over the long term as inflation stabilizes and rates decrease [6][39] Company Strategy and Development Direction - The company is focusing on leveraging its new Equifax Cloud™ and EFX.AI™ capabilities to drive cost savings and operational efficiency [3][30] - A new pricing structure for VantageScore 4.0 aims to deliver significant savings to customers while enhancing profitability for Equifax [23][49] - The company is positioned to capitalize on government program integrity opportunities following the OB3 legislation, with expectations for growth in EWS government business [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term recovery of the mortgage market, projecting a return to levels seen between 2015 and 2019 as economic conditions improve [6][39] - The company anticipates ongoing discussions with federal and state agencies regarding new solutions to comply with stricter income verification requirements [16][60] - Management highlighted the importance of the new VantageScore pricing structure in driving customer conversions and enhancing profitability [23][46] Other Important Information - Equifax returned approximately $360 million to shareholders in Q3 2025 through share repurchases and dividends [10][48] - The company raised its full-year revenue guidance by $40 million and adjusted EPS by $0.12 per share based on strong Q3 performance [10][39] Q&A Session Summary Question: Can you go into more detail on the mortgage pricing changes? - Management noted a significant increase in interest around VantageScore 4.0 due to FICO's price increase, with many customers actively engaging in discussions about conversion opportunities [53] Question: Can you elaborate on the margin guidance and the reduction in USIS margin guidance? - Management explained that the increase in variable compensation due to stronger performance impacted margins, alongside a higher mix of mortgage revenue affecting gross margins [54][56] Question: Do you expect states to start using your solutions ahead of time after the OB3 signing? - Management indicated a mix of both immediate engagement and longer-term revenue growth expected from new solutions, with a positive uptick in conversations at the state level [58][60] Question: What is driving the increase in general corporate expenses? - The increase is primarily due to higher variable compensation linked to stronger revenue and operating income performance [63][64] Question: Can you clarify the differences in mortgage growth between USIS and EWS? - Management explained that USIS benefited from a significant FICO price increase and an uptick in mortgage activity, while EWS's growth was constrained by a declining mortgage market [67][68]

Core Insights - Equifax reported quarterly earnings of $2.04 per share, exceeding the Zacks Consensus Estimate of $1.93 per share, and up from $1.85 per share a year ago, representing an earnings surprise of +5.70% [1][2] - The company generated revenues of $1.54 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.53% and increasing from $1.44 billion year-over-year [2] - Equifax has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The earnings surprise of +5.70% indicates strong performance relative to expectations, following a previous surprise of +4.17% when actual earnings were $2 compared to an expected $1.92 [1][3] - The company has topped consensus revenue estimates three times in the last four quarters, indicating a positive trend in revenue performance [2] Market Position - Equifax shares have underperformed the market, losing about 9.3% since the beginning of the year, while the S&P 500 has gained 14.5% [3] - The current Zacks Rank for Equifax is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $2.09 on revenues of $1.51 billion, and for the current fiscal year, it is $7.55 on revenues of $6.02 billion [7] - The outlook for the consulting services industry, where Equifax operates, is currently in the bottom 33% of Zacks industries, which may impact stock performance [8]

Financial Performance & Guidance - Equifax's 3Q25 revenue increased by 7% [13] - Adjusted EPS for 3Q25 was $2.04 per share [13] - The company is raising its full-year 2025 revenue guidance by $40 million [13] - Full-year 2025 adjusted EPS guidance is raised by $0.12 per share [13] - Free cash flow guidance for 2025 is increased to a range of $950 million to $975 million [13] - The company returned approximately $360 million in cash to shareholders during 3Q25 [13, 14] Segment Performance - USIS revenue increased by 11% in 3Q25, with mortgage revenue up by 26% and non-mortgage revenue up by 5% [19] - International revenue grew by 7% in constant currency, driven by Canada and Latin America [28, 48] - EWS revenue increased by 5% in 3Q25, with non-mortgage verifier growth at 7% [15, 48] Strategic Initiatives - The introduction of the VantageScore 4.0 pricing framework presents a $100 million to $200 million margin opportunity for Equifax [13, 23, 26] - The company is raising its full-year 2025 Vitality Index guidance to 13% [13, 33, 48]

Core Insights - Equifax raised its full-year outlook following an increase in profit and revenue during the third quarter, driven by strong performance in its mortgage and workforce-solutions units [1] Financial Performance - The company reported higher profit and revenue in the third quarter, indicating robust financial health [1] - The growth in revenue was significantly supported by the mortgage and workforce-solutions segments, highlighting key areas of strength within the company's operations [1]

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[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) [Third Quarter 2025 Performance Overview](index=1&type=section&id=1.1%20Third%20Quarter%202025%20Performance%20Overview) Equifax exceeded its third-quarter guidance with strong revenue growth across segments, driven by U.S. Mortgage revenue, Workforce Solutions Government vertical, and New Product Innovation, despite headwinds in the U.S. Mortgage and Hiring markets - Equifax delivered strong third quarter revenue of **$1.545 billion**, up **7%** on both a reported and local currency basis, which was **$25 million** above the midpoint of its July Guidance[2](index=2&type=chunk)[4](index=4&type=chunk) - U.S. Mortgage revenue grew a strong **13%** despite a decline in the underlying Mortgage market[2](index=2&type=chunk)[4](index=4&type=chunk) - New Product Innovation achieved a Vitality Index of **16%** in the quarter, leading to a raised full year 2025 Vitality Index to **13%**, exceeding the **10%** long-term goal[2](index=2&type=chunk)[4](index=4&type=chunk) [Full Year 2025 Guidance Update](index=1&type=section&id=1.2%20Full%20Year%202025%20Guidance%20Update) Following strong third-quarter results, Equifax raised its full-year 2025 guidance for reported revenue, Adjusted EPS, and free cash flow, reflecting confidence in its operational performance and cash generation capabilities - Full year 2025 reported revenue Guidance midpoint raised by **$40 million**, with local currency growth of about **7%**[3](index=3&type=chunk)[4](index=4&type=chunk) - Full year Adjusted EPS Guidance increased by **$0.12 per share**[3](index=3&type=chunk)[4](index=4&type=chunk) - Increased 2025 free cash flow Guidance from **$900+ million** to between **$950 million** and **$975 million**, driven by strong operating cash flow and a cash conversion ratio of over **100%**[3](index=3&type=chunk)[4](index=4&type=chunk) [Strategic Initiatives and Shareholder Returns](index=1&type=section&id=1.3%20Strategic%20Initiatives%20and%20Shareholder%20Returns) Equifax is prioritizing growth, innovation, and new product development by leveraging its Cloud capabilities and EFX.AI, while also actively returning cash to shareholders through share repurchases and dividends, and introduced a new, more competitive mortgage score pricing structure - Approximately **$360 million** of cash was returned to shareholders in the third quarter, including repurchasing **1.2 million shares** for **$300 million**[3](index=3&type=chunk)[4](index=4&type=chunk) - The company is pivoting to leverage new Cloud capabilities to accelerate New Product Innovation, investing in new products, data, analytics, and EFX.AI capabilities to drive future growth[5](index=5&type=chunk)[7](index=7&type=chunk) - Equifax introduced a new Mortgage Score pricing structure, offering VantageScore® 4.0 at an over **50% reduction** to FICO mortgage scores in 2026, with free VantageScore 4.0 to drive conversion[4](index=4&type=chunk)[6](index=6&type=chunk) [Third Quarter 2025 Financial Performance](index=2&type=section&id=Third%20Quarter%202025%20Financial%20Performance) [Consolidated Financial Results](index=2&type=section&id=2.1%20Consolidated%20Financial%20Results) Equifax reported solid consolidated financial growth in Q3 2025, with revenue, net income attributable to Equifax, and diluted EPS all showing significant year-over-year increases | Metric | Q3 2025 (Millions) | Q3 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :----------------- | :----------------- | :---------------- | :------- | | Operating Revenue | $1,544.9 | $1,441.8 | $103.1 | 7% | | Net Income Attributable to Equifax | $160.2 | $141.3 | $18.9 | 13% | | Diluted EPS Attributable to Equifax (per share) | $1.29 | $1.13 | $0.16 | 14% | | Dividends per common share (per share) | $0.50 | $0.39 | $0.11 | 28.2% | [Segment Performance](index=2&type=section&id=2.2%20Segment%20Performance) All three operating segments—Workforce Solutions, U.S. Information Solutions (USIS), and International—demonstrated revenue growth in Q3 2025, with USIS leading in reported growth and International showing strong local currency performance | Segment | Q3 2025 Revenue (Millions) | YoY % Change (Reported) | YoY % Change (Local Currency) | | :---------------------- | :------------------------- | :---------------------- | :---------------------------- | | Workforce Solutions | $649.4 | 5% | 5% | | USIS | $530.2 | 11% | 11% | | International | $365.3 | 6% | 7% | [Workforce Solutions](index=2&type=section&id=2.2.1%20Workforce%20Solutions) Workforce Solutions achieved 5% revenue growth in Q3 2025, primarily driven by its Verification Services, while maintaining strong operating and adjusted EBITDA margins - Total revenue was **$649.4 million**, up **5%** compared to the third quarter of 2024[13](index=13&type=chunk)[29](index=29&type=chunk) - Verification Services revenue was **$553.6 million**, up **5%** compared to the third quarter of 2024[13](index=13&type=chunk)[29](index=29&type=chunk) - Operating margin for Workforce Solutions was **43.8%** in Q3 2025 (vs **43.2%** in Q3 2024), and Adjusted EBITDA margin was **51.2%** (vs **51.6%** in Q3 2024)[13](index=13&type=chunk) [U.S. Information Solutions (USIS)](index=2&type=section&id=2.2.2%20U.S.%20Information%20Solutions%20(USIS)) USIS delivered robust 11% revenue growth in Q3 2025, significantly exceeding its long-term financial framework, fueled by strong performance in both Online Information Solutions and Financial Marketing Services, particularly in mortgage-related activities - Total revenue was **$530.2 million**, up **11%** compared to the third quarter of 2024[13](index=13&type=chunk)[29](index=29&type=chunk) - Online Information Solutions revenue was **$467.5 million**, up **12%** compared to the third quarter of 2024[13](index=13&type=chunk)[29](index=29&type=chunk) - Operating margin for USIS was **23.2%** in Q3 2025 (vs **20.6%** in Q3 2024), and Adjusted EBITDA margin was **35.2%** (vs **33.9%** in Q3 2024)[13](index=13&type=chunk) [International](index=2&type=section&id=2.2.3%20International) The International segment reported 6% revenue growth (7% on a local currency basis) in Q3 2025, with strong contributions from Latin America and Canada, and improved operating and adjusted EBITDA margins - Total revenue was **$365.3 million**, up **6%** on a reported basis and up **7%** on a local currency basis compared to the third quarter of 2024[13](index=13&type=chunk)[29](index=29&type=chunk) - Operating margin for International was **15.8%** in Q3 2025 (vs **13.9%** in Q3 2024), and Adjusted EBITDA margin was **31.3%** (vs **27.7%** in Q3 2024)[13](index=13&type=chunk) International Regional Revenue Growth (Local Currency) | Region | Local Currency % Change (Q3 2025 vs Q3 2024) | | :------------- | :-------------------------------------------- | | Latin America | 9% | | Canada | 11% | | Europe | 4% | | Asia Pacific | 4% | [Financial Guidance](index=4&type=section&id=Financial%20Guidance) [Fourth Quarter and Full Year 2025 Outlook](index=4&type=section&id=3.1%20Fourth%20Quarter%20and%20Full%20Year%202025%20Outlook) Equifax provided updated guidance for the fourth quarter and full year 2025, projecting continued revenue growth and increased adjusted EPS, reflecting confidence in its strategic direction and operational execution Q4 and Full Year 2025 Guidance | Metric | Q4 2025 (Low-End) | Q4 2025 (High-End) | FY 2025 (Low-End) | FY 2025 (High-End) | | :-------------------------------------- | :------------------ | :------------------- | :------------------ | :------------------- | | Reported Revenue (Billions) | $1.506 | $1.536 | $6.030 | $6.060 | | Reported Revenue Growth | 6.1% | 8.2% | 6.1% | 6.7% | | Local Currency Growth | 5.5% | 7.6% | 6.5% | 7.1% | | Organic Local Currency Growth | 5.5% | 7.6% | 6.5% | 7.1% | | Adjusted Earnings Per Share (per share) | $1.98 | $2.08 | $7.55 | $7.65 | [U.S. Mortgage Market Outlook](index=9&type=section&id=3.2%20U.S.%20Mortgage%20Market%20Outlook) Equifax anticipates a continued decline in U.S. mortgage hard pull credit inquiry volume for the remainder of 2025, projecting a high single-digit decrease for both the fourth quarter and the full year - The change year over year in total U.S. mortgage hard pull credit inquiry volume received by Equifax in the third quarter of 2025 was a decline of **7%**[31](index=31&type=chunk) - Guidance for the fourth quarter of 2025 and for the full year 2025 assumes a year-over-year decline in total U.S. mortgage market credit inquiries to be down high single digits[31](index=31&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) [About Equifax](index=4&type=section&id=4.1%20About%20Equifax) Equifax is a global data, analytics, and technology company that plays an essential role in the global economy by providing critical insights to financial institutions, companies, employers, and government agencies across 24 countries worldwide - Equifax is a global data, analytics, and technology company that helps financial institutions, companies, employers, and government agencies make critical decisions with greater confidence[16](index=16&type=chunk) - The company leverages a unique blend of differentiated data, analytics, and cloud technology to drive insights[16](index=16&type=chunk) - Equifax operates or has investments in **24 countries** across North America, Central and South America, Europe, and the Asia Pacific region, supported by approximately **15,000 employees** worldwide[16](index=16&type=chunk) [Earnings Conference Call](index=4&type=section&id=4.2%20Earnings%20Conference%20Call) Equifax hosted a conference call and live audio webcast on October 21, 2025, to discuss its financial results, with replay and related presentation materials made available on its investor relations website - Equifax hosted a conference call on October 21, 2025, at 8:30 a.m. (ET) via a live audio webcast[17](index=17&type=chunk) - Access to the webcast and related presentation materials, as well as a replay of the discussion, is available in the Investor Relations section of www.equifax.com[17](index=17&type=chunk) [Forward-Looking Statements and Risk Factors](index=5&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) [Forward-Looking Statements and Risk Factors](index=5&type=section&id=5.1%20Forward-Looking%20Statements%20and%20Risk%20Factors) The report contains forward-looking statements based on various factors and assumptions, but actual results may differ materially due to a range of risks, including economic conditions, cybersecurity incidents, challenges in cloud transformation, regulatory changes, and competitive pressures - Forward-looking statements are based on factors and assumptions including foreign exchange rates, revenue growth, financial performance, strategic initiatives, the U.S. mortgage market, economic conditions, and effective tax rates[22](index=22&type=chunk) - Several factors could cause actual results to differ materially, including changes in the U.S. mortgage market, general U.S. and worldwide economic conditions (e.g., interest rates, inflation), and the failure to realize anticipated benefits of cloud technology transformation[23](index=23&type=chunk)[24](index=24&type=chunk) - Other significant risk factors include cybersecurity breaches, operational disruptions from cloud transition, ability to maintain data access, impact of competition, regulatory compliance, international risks, and risks associated with artificial intelligence and machine learning models[24](index=24&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=6&type=section&id=6.1%20Consolidated%20Statements%20of%20Income) The consolidated statements of income present Equifax's revenues, operating expenses, and net income for the three months ended September 30, 2025, compared to the same period in 2024, indicating growth in revenue and profitability Consolidated Statements of Income (Three Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :-------------------------------------- | :-------------- | :-------------- | | Operating revenue | $1,544.9 | $1,441.8 | | Total operating expenses | $1,280.6 | $1,194.7 | | Operating income | $264.3 | $247.1 | | Consolidated net income | $161.5 | $142.7 | | Net income attributable to Equifax | $160.2 | $141.3 | | Diluted earnings per common share (per share) | $1.29 | $1.13 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=6.2%20Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets present Equifax's financial position as of September 30, 2025, and December 31, 2024, showing an increase in total assets and shareholders' equity Condensed Consolidated Balance Sheets (Selected Items) | Metric | Sep 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :-------------------------------- | :---------------------- | :---------------------- | | Total assets | $11,831.8 | $11,759.4 | | Total liabilities | $6,756.0 | $6,839.8 | | Total Equifax shareholders' equity | $4,938.5 | $4,796.9 | [Consolidated Statements of Cash Flows](index=8&type=section&id=6.3%20Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows for the nine months ended September 30, 2025, indicate strong cash generation from operating activities, with significant cash used in financing activities, including treasury stock purchases and dividends Consolidated Statements of Cash Flows (Nine Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :---------------------------------- | :-------------- | :-------------- | | Cash provided by operating activities | $1,144.9 | $999.7 | | Cash used in investing activities | $(350.6) | $(392.6) | | Cash used in financing activities | $(783.5) | $(345.0) | | Increase in cash and cash equivalents | $19.1 | $251.4 | | Cash and cash equivalents, end of period | $189.0 | $468.2 | [Non-GAAP Financial Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Non-GAAP Definitions](index=4&type=section&id=7.1%20Non-GAAP%20Definitions) This section defines key non-GAAP financial measures used by Equifax, including adjusted EPS, adjusted EBITDA, local currency revenue change, organic local currency revenue growth, free cash flow, and cash conversion, explaining their calculation and purpose - Adjusted EPS attributable to Equifax is diluted EPS adjusted for acquisition-related amortization, legal/regulatory matters, foreign currency impact of intercompany loans, acquisition-related costs, income tax effect of stock awards, Argentina highly inflationary foreign currency adjustment, realignment costs, antitrust litigation costs, and aggregated tax impact[18](index=18&type=chunk)[33](index=33&type=chunk) - Adjusted EBITDA is defined as consolidated net income attributable to Equifax plus net interest expense, income taxes, depreciation and amortization, and also excludes certain one-time items[18](index=18&type=chunk)[50](index=50&type=chunk) - Local currency revenue change is calculated by conforming 2025 results using 2024 exchange rates, while organic local currency revenue growth further adjusts for prior year revenue from acquired companies for 12 months post-acquisition[18](index=18&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) [Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS](index=10&type=section&id=7.2%20Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) This reconciliation details the adjustments made to GAAP net income and diluted EPS to arrive at the non-GAAP adjusted figures, providing a clearer view of core operational performance by excluding specific non-recurring or non-cash items Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS (Three Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :---------------------------------------------------------------- | :-------------- | :-------------- | :------- | | Net income attributable to Equifax | $160.2 | $141.3 | 13% | | Acquisition-related amortization expense | 62.7 | 64.6 | (3)% | | Accrual for legal and regulatory matters related to the 2017 cybersecurity incident | 0.3 | 0.1 | nm | | Acquisition-related costs other than acquisition amortization | 8.9 | 15.9 | (44)% | | Realignment of resources and other costs | 43.9 | 41.6 | 6% | | Antitrust litigation costs | 4.3 | — | nm | | Adjusted net income attributable to Equifax | $252.9 | $231.8 | 9% | | Adjusted diluted EPS attributable to Equifax (per share) | $2.04 | $1.85 | 10% | [Reconciliation of Net Income to Adjusted EBITDA](index=12&type=section&id=7.3%20Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This reconciliation provides a breakdown of how GAAP net income is adjusted to calculate Adjusted EBITDA, a key metric for evaluating operational profitability before non-operating expenses Reconciliation of Net Income to Adjusted EBITDA (Three Months Ended September 30) | Metric | 2025 (Millions) | 2024 (Millions) | % Change | | :---------------------------------------------------------------- | :-------------- | :-------------- | :------- | | Net income attributable to Equifax | $160.2 | $141.3 | 13% | | Income taxes | 53.8 | 51.1 | 5% | | Interest expense, net | 49.5 | 52.4 | (6)% | | Depreciation and amortization | 183.3 | 169.1 | 8% | | Accrual for legal and regulatory matters related to 2017 cybersecurity incident | 0.3 | 0.1 | nm | | Acquisition-related amounts other than acquisition amortization | 8.9 | 15.9 | (44)% | | Realignment of resources and other costs | 43.9 | 41.6 | 6% | | Antitrust litigation costs | 4.3 | — | nm | | Adjusted EBITDA | $504.8 | $471.9 | 7% | | Adjusted EBITDA margin | 32.7% | 32.7% | 0% | [Reconciliation of Operating Income by Segment to Adjusted EBITDA](index=13&type=section&id=7.4%20Reconciliation%20of%20Operating%20Income%20by%20Segment%20to%20Adjusted%20EBITDA) This section reconciles operating income for each business segment (Workforce Solutions, U.S. Information Solutions, International) to their respective Adjusted EBITDA, providing insight into the operational profitability of each segment Segment Adjusted EBITDA and Margin (Q3 2025) | Metric | Workforce Solutions (Millions) | U.S. Information Solutions (Millions) | International (Millions) | | :---------------------- | :----------------------------- | :------------------------------------ | :----------------------- | | Revenue | $649.4 | $530.2 | $365.3 | | Operating income | $284.5 | $123.3 | $57.7 | | Adjusted EBITDA | $332.7 | $186.6 | $114.4 | | Operating margin | 43.8% | 23.2% | 15.8% | | Adjusted EBITDA margin | 51.2% | 35.2% | 31.3% | Segment Adjusted EBITDA and Margin (Q3 2024) | Metric | Workforce Solutions (Millions) | U.S. Information Solutions (Millions) | International (Millions) | | :---------------------- | :----------------------------- | :------------------------------------ | :----------------------- | | Revenue | $620.0 | $476.9 | $344.9 | | Operating income | $267.6 | $98.1 | $48.1 | | Adjusted EBITDA | $319.9 | $161.6 | $95.6 | | Operating margin | 43.2% | 20.6% | 13.9% | | Adjusted EBITDA margin | 51.6% | 33.9% | 27.7% | [Notes to Reconciliations](index=14&type=section&id=7.5%20Notes%20to%20Reconciliations) This section provides detailed explanations for each specific adjustment made in the non-GAAP reconciliations, clarifying the nature and rationale behind excluding these items from GAAP figures to present a more comparable view of performance - Acquisition-related amortization expense is excluded to allow investors to evaluate performance on a more comparable basis and to reflect material cash income tax savings[41](index=41&type=chunk) - Accrual for legal and regulatory matters related to the 2017 cybersecurity incident and acquisition-related costs (other than amortization) are excluded as non-comparable charges or integration costs, respectively, to provide meaningful supplemental information[42](index=42&type=chunk)[44](index=44&type=chunk) - Restructuring charges for the realignment of resources and other costs (e.g., headcount reduction, technology transformation) and antitrust litigation costs are excluded as they are not comparable across periods or are outside the normal course of business operations[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)