TransUnion Announces First Quarter 2025 Results

Core Insights - TransUnion reported strong financial results for Q1 2025, with total revenue reaching $1,096 million, marking a 7% increase compared to Q1 2024 [2][6] - The company exceeded its financial guidance across all key metrics, driven by growth in U.S. Financial Services and Emerging Verticals [4][6] - Net income attributable to TransUnion was $148 million, significantly up from $65 million in Q1 2024, primarily due to a reduction in a lawsuit accrual [7][28] Revenue Performance - Total revenue for Q1 2025 was $1,096 million, a 7% increase year-over-year, with an 8% increase on a constant currency basis [2][6] - U.S. Markets revenue grew by 9%, with Financial Services up 15% and Emerging Verticals up 6% [4][5] - International revenue increased by 6% on a constant currency basis, with high-single digit growth in most markets [4][8] Earnings and Profitability - Net income attributable to TransUnion was $148 million, with diluted earnings per share at $0.75, compared to $0.33 in Q1 2024 [7][28] - Adjusted EBITDA for the quarter was $397 million, an 11% increase from $358 million in Q1 2024, with an adjusted EBITDA margin of 36.2% [7][8] - The company maintained its organic constant currency revenue growth guidance for 2025 at 4.5% to 6% [4][6] Segment Results - U.S. Markets generated $857 million in revenue, a 9% increase, with adjusted EBITDA of $320 million, reflecting a 12% growth [8][51] - International revenue totaled $242 million, with a 6% increase, and adjusted EBITDA of $110 million, up 3% [8][51] - The Financial Services segment saw a revenue increase of 15%, while the Consumer Interactive segment experienced a slight decline of 1% [5][8] Liquidity and Capital Resources - Cash and cash equivalents were $610 million as of March 31, 2025, down from $679 million at the end of 2024 [9][10] - The company reported cash provided by operating activities of $53 million for Q1 2025, slightly down from $54 million in Q1 2024 [10][31] - Cash used in investing activities increased to $87 million, primarily due to higher capital expenditures [10][31] Outlook - The company is maintaining its revenue growth guidance for Q2 and the full year 2025, with expectations of 3% to 5% growth as reported [12][11] - TransUnion is well-positioned to navigate potential economic challenges, supported by a diversified portfolio [4][6] - The company plans to continue monitoring market conditions while prioritizing cost management and business transformation initiatives [4][6]