Equifax(US:EFX)2026-02-04 11:32Revenue Performance - Fourth quarter 2025 revenue reached $1.551 billion, a 9% increase, exceeding guidance by $30 million[1] - U.S. Mortgage revenue grew by 20% in Q4 2025, despite a decline in the overall mortgage market[3] - Workforce Solutions revenue increased by 9%, with Verification Services up 10% and Diversified Markets up 11%[3] - USIS revenue rose by 12%, driven by a 33% increase in Mortgage revenue and 5% growth in Diversified Markets[3] - International revenue grew by 5% in local currency, led by Latin America[3] - Total operating revenue for 2025 reached $6,074.5 million, reflecting a 7% increase from $5,681.1 million in 2024[33] - Total U.S. Information Solutions revenue grew by 10% to $2,078.5 million in 2025, compared to $1,893.0 million in 2024[33] - The company reported a 10% organic local currency revenue growth in the U.S. Information Solutions segment for 2025[34] - Total international revenue increased by 4% to $1,413.7 million in 2025, compared to $1,354.3 million in 2024[33] Financial Metrics - Free cash flow for 2025 was $1.13 billion, a nearly 40% increase from the previous year[2] - Consolidated net income attributable to Equifax for Q4 2025 was $175.8 million, compared to $174.0 million in Q4 2024, a slight increase of 1.0%[27] - Basic earnings per share for Q4 2025 was $1.45, up from $1.40 in Q4 2024, representing a 3.6% increase[27] - Net income attributable to Equifax for the full year 2025 was $660.3 million, an increase of 9.3% from $604.1 million in 2024[28] - Basic earnings per share for the full year 2025 was $5.36, up from $4.88 in 2024, indicating a 9.8% increase[28] - Adjusted net income attributable to Equifax for 2025 was $949.2 million, a 4% increase from $910.1 million in 2024[36] - Operating income for the year ended December 31, 2025, was $1,095.2 million, compared to $1,095.2 million in 2024, indicating stable performance despite challenges[43] Expenses and Costs - Total operating expenses for Q4 2025 were $1,266.4 million, up from $1,131.3 million in Q4 2024, reflecting a 11.9% increase[27] - Total operating expenses for the full year 2025 were $4,979.3 million, compared to $4,639.0 million in 2024, marking a 7.3% increase[28] - The company recorded acquisition-related amortization expense of $250.2 million for the year ended December 31, 2025, compared to $261.1 million in 2024[37] - Restructuring charges for the year ended December 31, 2025, amounted to $49.9 million, primarily related to resource realignment[37] - The company incurred $35.0 million in acquisition-related costs other than amortization for the year ended December 31, 2025, down 49% from $68.4 million in 2024[40] - A legal settlement charge of $30.0 million was recorded in Q4 2025, a 100% increase from $15.0 million in Q4 2024[40] Shareholder Returns - The company returned $561 million to shareholders in Q4 2025, including $500 million for share repurchases[2] - The company paid dividends of $232.8 million to shareholders in 2025, an increase from $193.2 million in 2024[30] Future Outlook - Full-year 2026 revenue guidance is set at $6.72 billion, reflecting a 10.5% increase, with Adjusted EPS expected to be $8.50 per share[4] - The company is focusing on growth and innovation through new Cloud capabilities and EFX.AI to drive future revenue[5] Operational Efficiency - The Vitality Index reached a record 17% in Q4 2025, surpassing the long-term goal of 10%[3] - Adjusted EBITDA for the year ended December 31, 2025, was $1,935.3 million, reflecting a 5% increase from $1,836.1 million in 2024[40] - The adjusted EBITDA margin for the year ended December 31, 2025, was 31.9%, slightly down from 32.3% in 2024[40] - Adjusted EBITDA for Q4 2025 was $508.2 million, with an adjusted EBITDA margin of 32.8%, compared to $501.9 million and a margin of 35.4% in Q4 2024[43][44] - Adjusted EBITDA for the U.S. Information segment was $334.5 million in Q4 2025, with an adjusted EBITDA margin of 51.3%, reflecting strong operational efficiency[43] Asset and Liability Overview - Total assets as of December 31, 2025, were $11,864.2 million, compared to $11,759.4 million as of December 31, 2024, reflecting a 0.9% increase[29] - Total liabilities as of December 31, 2025, were $7,126.0 million, an increase from $6,839.8 million in 2024, representing a 4.2% rise[29] Legal and Regulatory Matters - Legal and regulatory accruals related to the 2017 cybersecurity incident were $1.0 million for the year ended December 31, 2025[47] - Antitrust litigation costs for Q4 2025 amounted to $1.2 million ($0.9 million, net of tax) and $5.4 million ($4.1 million, net of tax) for the full year 2025[58]