TransUnion Stock Gains 6% Post Reporting Q4 Earnings & Revenue Beat

Core Insights - TransUnion (TRU) reported strong fourth-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1] - The adjusted EPS of $1.07 surpassed the consensus by 3.9% and grew 10.3% year over year, while total revenues reached $1.2 billion, beating estimates by 3% and increasing 13% from the previous year [1] Revenue Performance - The U.S. Markets segment generated revenues of $918.9 million, a 16% increase year over year, although it fell short of the consensus estimate of $921 million [3] - Financial services within this segment saw revenues of $423.1 million, also up 16% year over year [3] - The international segment reported revenues of $255.9 million, a 4% increase year over year, but below the consensus estimate of $274.2 million [4] - Canada and Latin America contributed $43.5 million and $34.8 million in revenues, growing 13% and 3% year over year, respectively [4] - The U.K. revenues increased by 22% year over year to $72.2 million [4] - Africa and India recorded revenues of $19.6 million and $60.4 million, with Africa growing 7% year over year, while India saw a 9% decline [5] Operating Performance - Adjusted EBITDA was $417 million, reflecting a 10% year-over-year growth, with an adjusted EBITDA margin of 35.6%, down 90 basis points from the previous year [6] - Adjusted EBITDA for the U.S. market was $348.5 million, a 12% increase year over year, while the international market's adjusted EBITDA was $255.9 million, up 4% [7] Balance Sheet & Cash Flow - At the end of the quarter, TransUnion had $853.6 million in cash and cash equivalents, up from $749.9 million at the end of the previous quarter [8] - Long-term debt decreased to $4.9 billion from $5 billion in the preceding quarter [8] - Cash generated from operating activities was $319.5 million, with capital expenditure at $96.7 million [8] Guidance - For Q1 2026, TransUnion expects revenues between $1.195 billion and $1.205 billion, aligning with the current consensus estimate [10] - The company anticipates adjusted EPS between $1.08 and $1.10, which is lower than the Zacks Consensus Estimate of $1.14 [10] - For the full year 2026, revenues are projected to be between $4.946 billion and $4.981 billion, slightly below the consensus estimate of $4.97 billion [11] - Adjusted EPS guidance for 2026 is set at $4.63 to $4.71, also lower than the consensus estimate of $4.85 [11]