Equifax Delivers Results Above Third Quarter Guidance; Raising Full Year Guidance

Core Insights - Equifax reported strong third quarter revenue of $1.545 billion, reflecting a 7% increase year-over-year, driven by significant growth in U.S. Mortgage revenue and Workforce Solutions [2][5][7] - The company raised its full-year 2025 revenue guidance midpoint by $40 million and adjusted EPS guidance by $0.12 per share, indicating confidence in continued growth [3][7] - Equifax returned approximately $360 million to shareholders in the third quarter, including $300 million in share repurchases, highlighting its strong cash flow generation [3][7] Financial Performance - Total revenue for Q3 2025 was $1,544.9 million, up 7% compared to Q3 2024, with net income attributable to Equifax increasing by 13% to $160.2 million [5][26] - Diluted EPS for Q3 2025 was $1.29, a 14% increase from $1.13 in Q3 2024, while adjusted EPS rose to $2.04, up 10% year-over-year [5][27] - Workforce Solutions revenue grew by 5%, with Verification Services also up by 5%, driven by strong growth in Government and Consumer Lending sectors [8][21] Segment Performance - U.S. Information Solutions (USIS) revenue increased by 11%, led by a 26% growth in Mortgage revenue and 5% in Non-Mortgage revenue [7][8] - International revenue grew by 6% on a reported basis and 7% in local currency, with Latin America and Canada being key contributors [8][21] - The company achieved a Vitality Index of 16% in Q3, exceeding its long-term goal of 10%, indicating strong product innovation and market responsiveness [3][7] Strategic Initiatives - Equifax introduced a new Mortgage Score pricing structure aimed at reducing costs for homebuyers and enhancing competitiveness in the credit scoring market [3][7] - The company is focusing on leveraging its cloud capabilities to drive new product innovation and enhance data analytics, which is expected to support growth in 2025 and beyond [4][7] - The strategic pivot towards cloud technology and AI capabilities is anticipated to improve margins and free cash flow, reinforcing the company's commitment to shareholder returns [4][7]