Why Is Equifax (EFX) Down 10.6% Since Last Earnings Report?

Core Viewpoint - Equifax reported strong third-quarter 2025 results, with earnings and revenues exceeding expectations, despite a recent decline in share price [3][11]. Financial Performance - Adjusted earnings for Q3 2025 were $2.04 per share, surpassing the Zacks Consensus Estimate by 5.7% and increasing 10.3% year-over-year [3]. - Total revenues reached $1.5 billion, exceeding the consensus estimate by 1.5% and growing 7.2% year-over-year [3]. Segment Performance - Workforce Solutions segment revenues were $649.4 million, up 5% year-over-year, with Verification Services contributing $553.6 million, also a 5% increase [4]. - USIS segment revenues totaled $530.2 million, rising 11% year-over-year, driven by Online Information Solutions at $467.5 million, a 12% increase [5]. - International division revenues were $365.5 million, up 6% year-over-year, although slightly below projections [6]. Operating Results - Adjusted EBITDA for Q3 2025 was $504.8 million, reflecting a 7% year-over-year increase, with an adjusted EBITDA margin of 32.7% [8]. - The adjusted EBITDA margin for Workforce Solutions was 51.2%, while USIS improved to 35.2% [9]. Balance Sheet & Cash Flow - Equifax ended Q3 with cash and cash equivalents of $189 million and long-term debt of $4.1 billion [10]. - Operating cash flow was $559.9 million, with capital expenditures of $122 million and dividends of $61.5 million distributed [10]. Future Outlook - For Q4 2025, Equifax expects revenues between $1.506 billion and $1.536 billion, with adjusted EPS projected at $1.98 to $2.08 [11]. - The company raised its 2025 revenue guidance to $6.03 billion to $6.06 billion and adjusted EPS to $7.55 to $7.65 [11]. Market Sentiment - Recent estimates for Equifax have shown a downward trend, indicating a cautious outlook among investors [12][14]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the near term [14].