Quick Read TransUnion (TRU) beat Q4 estimates with $1.17B revenue and $1.07 EPS. Net income surged 53% year over year. The CEO credited “broad-based performance” despite some international headwinds. The company repurchased $300M in shares for 2025 and raised its quarterly dividend 9%. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. TransUnion (NYSE: TRU) delivered strong fourth-quarter results tha ...

Core Insights - TransUnion reported Q4 earnings that exceeded Wall Street expectations with revenue of $1.17 billion and adjusted EPS of $1.07, marking a 53% year-over-year increase in net income [1] Financial Performance - Revenue growth of 13% was driven by strong performance in U.S. Markets, with Financial Services revenue increasing by 19% to $423 million and Emerging Verticals growing by 16% to $350 million [1] - Trusted Call Solutions experienced exceptional growth of 30%, reaching $160 million [1] - Adjusted EBITDA was $417 million, resulting in a margin of 35.6% [1] Geographic Performance - Mixed results were observed geographically, with Canada and the UK showing gains of 13% and 10% respectively, while India revenue declined by 4% and Asia Pacific fell by 11% [1] Future Outlook - For 2026, TransUnion guided revenue growth of 8% to 9% and adjusted EPS growth of 8% to 10% [1] - First-quarter revenue is projected to be between $1.195 billion and $1.205 billion, with EPS expected to be between $1.08 and $1.10 [1] Capital Returns - The company repurchased $150 million in shares during Q4 and a total of $300 million for the full year [1] - The quarterly dividend was raised by approximately 9% to $0.125 per share, payable on March 13, 2026 [1] - TransUnion's leverage ratio improved to 2.6x from 3.0x a year earlier [1]

分组1 - TransUnion reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $1.03 per share, and showing an increase from $0.97 per share a year ago, representing an earnings surprise of +4.05% [1] - The company achieved revenues of $1.17 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.02%, and up from $1.04 billion year-over-year [2] - TransUnion has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed, losing about 16.3% since the beginning of the year, while the S&P 500 has gained 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $1.2 billion, and for the current fiscal year, it is $4.85 on revenues of $4.95 billion [7] - The Business - Information Services industry, to which TransUnion belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, which may impact stock performance [8]

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Core Insights - TransUnion reported strong financial results for Q4 and full-year 2025, exceeding financial guidance with a revenue growth of 13% for the quarter and 9% for the year [2][4][9]. Financial Performance - Q4 2025 total revenue was $1,171 million, a 13% increase compared to Q4 2024 [2]. - Full-year 2025 revenue reached $4,576 million, reflecting a 9% increase from 2024 [9]. - Adjusted EBITDA for Q4 2025 was $417 million, a 10% increase from the same quarter in 2024 [7]. - Net income attributable to TransUnion for Q4 2025 was $101 million, up from $66 million in Q4 2024, with diluted earnings per share increasing to $0.52 from $0.34 [7][29]. Segment Performance - U.S. Markets revenue totaled $918.9 million in Q4 2025, growing 16% year-over-year, driven by Financial Services (19% growth) and Emerging Verticals (16% growth) [5][8]. - International revenue was $255.9 million, a 4% increase, with notable growth in the United Kingdom (22%) and Canada (13%), while Latin America and India experienced declines [8]. Shareholder Returns and Capital Management - The company repurchased approximately $150 million of shares in Q4 2025, totaling $300 million for the year [6]. - TransUnion raised its quarterly dividend to $0.125 per share from $0.115, effective Q4 2025 [6][13]. 2026 Outlook - The company anticipates revenue growth of 8% to 9% and adjusted diluted EPS growth of 8% to 10% for 2026, supported by stable trends and innovation [4][15]. - Initial guidance for Q1 2026 includes revenue expectations between $1,195 million and $1,205 million, reflecting a growth rate of 9% to 10% [16].

Revenue Performance - Total revenue for Q4 2025 was $1,171 million, a 13% increase compared to Q4 2024[4] - Full-year 2025 revenue reached $4,576 million, a 9% increase compared to 2024[10] - Total revenue for the year ended December 31, 2025, was $4,576.3 million, an increase of 9.4% from $4,183.8 million in 2024[30] - Total gross revenue for the year 2025 reached $4,589.7 million, representing a 9.7% increase from $4,196.3 million in 2024[52] - U.S. Markets gross revenue increased to $918.9 million in Q4 2025, up 15.9% from $792.0 million in Q4 2024[52] Profitability Metrics - Adjusted EBITDA for Q4 2025 was $417 million, a 10% increase compared to Q4 2024, with an adjusted EBITDA margin of 35.6%[8] - Operating income for the year ended December 31, 2025, was $857.8 million, up 28.7% from $666.7 million in 2024[30] - Net income attributable to TransUnion for Q4 2025 was $101 million, compared to $66 million in Q4 2024, with diluted earnings per share of $0.52[8] - Net income attributable to TransUnion for the year ended December 31, 2025, was $455.4 million, representing a 60.1% increase from $284.4 million in 2024[30] - Adjusted net income for the year 2025 was $845.7 million, compared to $768.8 million in 2024, reflecting a 10% increase[56] Cash and Liquidity - Cash and cash equivalents were $854 million at the end of 2025, up from $679 million at the end of 2024[12] - Cash provided by operating activities for the year ended December 31, 2025, was $987.6 million, an increase from $832.5 million in 2024[32] - The company’s cash and cash equivalents increased to $853.6 million as of December 31, 2025, from $679.5 million in 2024[32] Debt and Capital Structure - The company repurchased approximately $150 million of shares in Q4 2025, totaling $300 million for the year[7] - Total debt as of December 31, 2025, was $5,103.8 million, slightly decreased from $5,147.2 million in 2024[62] - The company’s long-term debt as of December 31, 2025, was $4,906.9 million, a decrease from $5,076.6 million in 2024[28] - The Leverage Ratio improved to 2.6 in 2025 from 3.0 in 2024, indicating a stronger financial position[62] Future Guidance - For 2026, the company expects revenue growth of 8% to 9% and adjusted diluted EPS growth of 8% to 10%[6] - Net income attributable to TransUnion for 2026 is guided to be between $538 million and $553 million, with a margin of 10.9% to 11.1%[68] - Diluted earnings per share for 2026 is expected to be between $2.75 and $2.83, with adjusted diluted earnings per share projected at $4.63 to $4.71[68] Technology and Innovation - The company plans to share updates on technology modernization and product innovation at the Investor Day on March 10, 2026[6] - The accelerated technology investment, including Project Rise, is expected to enhance cloud-based technology and streamline product delivery platforms, with completion anticipated by 2024[40] - The company invested $19.1 million in accelerated technology initiatives in Q4 2025, down from $25.6 million in Q4 2024[53] Tax and Regulatory - Adjusted Provision for Income Taxes for the year 2025 was $(309.9) million, compared to $(247.6) million in 2024, reflecting an increase in tax adjustments[59] - The effective tax rate for 2025 was 26.9%, an increase from 24.6% in 2024[59] Other Financial Metrics - Basic earnings per share for the year ended December 31, 2025, was $2.34, compared to $1.46 in 2024, reflecting a 60.3% increase[30] - Total accelerated technology investment for 2025 is $84.5 million, slightly up from $84.2 million in 2024[64] - Total depreciation and amortization for 2025 reached $574.8 million, an increase from $537.8 million in 2024[66]

Core Insights - Regular insurance shopping has become a routine activity for consumers, driven by economic pressures and competitive insurer marketing [1][3] - In Q4 2025, auto insurance shopping increased by 11% and property insurance shopping rose by 5% compared to Q4 2024, indicating sustained elevated shopping levels [2] Consumer Behavior - The report highlights a shopping intensity index, revealing that while consumers are shopping more frequently, most exhibit low shopping intensity, with less than 25% considering three or more insurers [4] - 77% of consumers only shop with one or two insurers, often satisfied with finding a lower rate rather than the lowest possible rate [5] Demographic Insights - Generational and geographic factors influence shopping intensity, with Baby Boomers and Silent Generation scoring seven points lower than Gen Z, likely due to brand loyalty [8] - Consumers in the least populated 20% of zip codes show four points lower shopping intensity, attributed to limited local options [8] Retention Strategies - Insurers have an opportunity to enhance customer retention by engaging existing customers before they start shopping, offering potential discounts and additional coverage options [6] - Utilizing solutions like TransUnion's Branded Call Display can improve consumer trust and increase call answer rates [6]

Core Viewpoint - The market anticipates TransUnion (TRU) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - TransUnion is expected to post quarterly earnings of $1.03 per share, reflecting a year-over-year increase of +6.2% [3]. - Revenues are projected to reach $1.14 billion, marking a 9.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.47% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for TransUnion is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.61%, suggesting a bullish outlook from analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [9]. Historical Performance - TransUnion has consistently beaten consensus EPS estimates, achieving this in the last four quarters [13]. - In the last reported quarter, TransUnion exceeded expectations by delivering earnings of $1.10 per share against an expected $1.04, resulting in a surprise of +5.77% [12]. Conclusion - TransUnion is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors beyond earnings results when making investment decisions [16].

Core Insights - Affordability is a significant concern for both auto lenders and dealers, impacting consumer participation in the market [2] - 2026 vehicle sales are projected to decline due to higher prices and economic uncertainty [2] Vehicle Financing Trends - Average monthly payments for new-vehicle loans reached $785 in Q4 2025, marking a 3.7% increase from the previous year [3] - The average amount financed for new-vehicle loans was $44,650 in Q4 2025, up 5.3% year-over-year [4][6] - Average used-vehicle payments were $541 for loans originated in Q4 2025, reflecting a 3.6% increase from the prior year [5] Credit Market Conditions - Overall delinquencies in the auto loan market appear manageable by historical standards, with good access to credit for most new-vehicle shoppers [6] - Despite a low share of loans to subprime borrowers, losses and potential losses on subprime loans are increasing due to rising delinquencies [7]

Core Insights - Consumer intent to purchase vehicles remains strong for 2026, with 39% of U.S. adults planning to buy a car, indicating high priority for vehicle purchases [1][2][3] Consumer Intent and Trends - More than 80% of consumers intending to buy a vehicle expect to do so within the next 12 months, with 65% planning to trade in their current vehicle, supporting the used car market [2][3] - Among those planning a vehicle transaction, 87% intend to buy and 13% intend to lease, with younger generations showing a greater interest in leasing [3] Market Dynamics - Auto loan originations began to rise in 2025, driven by anticipation of tariffs and the end of the EV tax credit, with super prime and subprime segments leading this growth despite affordability challenges [4] - Affordability remains a significant obstacle, with 53% of consumers citing cost concerns and 44% citing economic uncertainty [5] Vehicle Preferences - Half of prospective buyers intend to purchase traditional gas-powered vehicles, while 33% prefer hybrids and 16% prefer electric vehicles (EVs), with Millennials showing a slight preference for hybrids [6] - Consumers interested in EVs cite lower fuel costs (72%), environmental benefits (66%), and new technology features (62%) as key reasons for their interest [7] Challenges to EV Adoption - Internal combustion powertrains dominate due to affordability and charging infrastructure challenges, with Millennials increasingly interested in hybrids and Gen Z leaning towards traditional gas vehicles [8]