Equifax Q4 Earnings Beat Estimates, Revenues Jump 9% Y/Y

Core Insights - Equifax Inc. (EFX) reported strong fourth-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1] - The company posted an EPS of $2.09, beating estimates by 2.5%, although this represents a 1.4% decline from the previous year [1] - Total revenues reached $1.6 billion, surpassing the consensus estimate by 1.3% and increasing by 9.2% year-over-year [1] Financial Performance - The workforce solutions segment achieved 9% year-over-year revenue growth, totaling $652.2 million, exceeding the estimate of $628 million [3] - The USIS segment generated $526.9 million in revenues, a 12% increase year-over-year, surpassing the projection of $513.8 million [4] - International revenues rose by 7% year-over-year to $371.5 million, exceeding the estimated $367.1 million [5] Segment Analysis - Within the workforce solutions segment, verification services revenues were $557 million, up 10% year-over-year, while employer services revenues increased by 2% to $95.2 million [3] - Online Information Solutions in the USIS segment generated $447.9 million, a 13% year-over-year increase, while Financial Marketing Services revenues rose by 2% to $79 million [4] - Revenues from Europe grew by 9% year-over-year to $108.7 million, while Latin America revenues increased by 8% to $107.5 million [6] EBITDA and Margins - Adjusted EBITDA was $508.2 million, showing marginal year-over-year growth, but margins declined by 260 basis points [8] - The adjusted EBITDA margin for the workforce solutions segment was 51.3%, down 60 basis points from the previous year [8] - The USIS segment's adjusted EBITDA margin was 36.3%, a decline of 200 basis points year-over-year [8] Cash Position and Debt - Equifax ended the fourth quarter with cash and cash equivalents of $180.8 million, down from $189 million at the end of the third quarter [9] - The company maintained a long-term debt of $4.1 billion, unchanged from the previous quarter [9] Future Outlook - For Q1 2026, management expects revenues between $1.597 billion and $1.627 billion, below the Zacks Consensus Estimate of $1.57 billion [12] - EPS guidance for Q1 is set at $1.63 to $1.73, lower than the consensus estimate of $1.78 [12] - For the full year 2026, revenues are projected to be between $6.66 billion and $6.78 billion, above the consensus mark of $6.6 billion, while EPS guidance is $8.3 to $8.7, below the consensus estimate of $8.66 [13]