Financial Data and Key Metrics Changes - Equifax reported revenue of $1.54 billion for Q3 2025, representing a 7% increase in constant currency and reported dollars, exceeding guidance by $25 million [6][10] - Adjusted EPS was $2.04, $0.12 above the midpoint of guidance, driven by stronger revenue growth and solid operating leverage [8][10] - Adjusted EBITDA margins improved to 32.7%, up 20 basis points sequentially [8][10] - Free cash flow guidance was raised to $950 million to $975 million, up from $900 million, with cash conversion exceeding 100% [10][11] Business Line Data and Key Metrics Changes - U.S. mortgage revenue increased by 13% in Q3, driven by stronger market volumes and lower mortgage rates [6][10] - EWS (Equifax Workforce Solutions) revenue grew by 5%, primarily due to government performance, with non-mortgage verifier growth at about 7% [11][12] - USIS (U.S. Information Solutions) revenue grew by 11%, with mortgage revenue up 26% and non-mortgage revenue up 5% [21][22] - International revenue increased by 7% in constant currency, with Canada up 11% and Latin America up 9% [29][30] Market Data and Key Metrics Changes - Mortgage hard credit inquiries were down about 7%, better than expectations of a decline of over 12% [6][10] - U.S. mortgage revenue constituted 21% of total Equifax revenue in the quarter [7] - Government revenue in EWS grew in the high single digits, exceeding expectations [12][13] Company Strategy and Development Direction - Equifax is focusing on leveraging its new cloud capabilities and EFX.AI to drive innovation and new product development [31][51] - The company is expanding its VantageScore 4.0 mortgage credit score offerings to provide competitive pricing and drive conversions from FICO [24][28] - There is a strong emphasis on addressing improper payments and compliance with new government regulations through innovative solutions [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term mortgage activity recovery as inflation stabilizes and rates decrease [7][10] - The company anticipates significant growth opportunities in the government sector due to new OB3 legislation [16][21] - Management highlighted the importance of maintaining strong cash flow and returning value to shareholders through share repurchases and dividends [10][51] Other Important Information - Equifax incurred a restructuring charge of about $44 million in Q3, expected to yield annual savings of about $30 million starting in late 2026 [4][10] - The vitality index reached a record 16%, leading to an increase in full-year guidance for new product introductions [30][31] Q&A Session Summary Question: Can you go into more detail on the mortgage pricing changes? - Management noted a groundswell of interest in VantageScore due to FICO's price increase, with active conversations and customer engagement around the transition [54][55] Question: Can you elaborate on the margin guidance and USIS margin reduction? - Management explained that variable compensation increases due to better-than-expected performance are impacting margins, alongside a higher mix of mortgage revenue [56][57] Question: Do you expect government discussions to ramp up after the fiscal year end? - Management indicated a mix of both immediate engagement and longer-term ramp-up, with states focusing on integrity to address error rates [60][63] Question: What is driving the increase in general corporate expenses? - The increase is primarily due to higher variable compensation linked to stronger performance and revenue [65][67] Question: Can you clarify the differences in mortgage growth between USIS and EWS? - Management explained that USIS benefits from earlier mortgage activity due to its position in the pre-qualification stage, while EWS reflects a more delayed response [69][70]

Core Insights - The article emphasizes the evolving nature of fraud and the necessity for organizations to continuously update their security measures to counteract new threats [1][4][5]. Group 1: Key Trends in Fraud Prevention - Real-time payments and cross-border solutions are projected to increase payment transaction volumes to $250 trillion by 2027, necessitating a focus on risk reduction [1]. - In 2023, Business Email Compromise (BEC) was reported as the second most costly crime in the U.S., with losses reaching $2.9 billion [2]. - In the first half of 2023, fraudulent credit transfers in the EU and EEA amounted to $1.18 billion, primarily originating from transactions by Payment Service Providers (PSPs) [3]. Group 2: Comprehensive Fraud Prevention Strategies - Companies must adopt a multi-layered strategy that encompasses the entire lifecycle of customers and suppliers, integrating AI, big data, and continuous monitoring to effectively address emerging threats [4]. - A survey by LSEG in 2024 indicated that 62% of U.S. companies reported that fraud threats are becoming increasingly complex [4]. - Organizations need to implement layered strategies for risk management, including behavioral analysis and multi-factor authentication, to keep pace with AI-driven scams and global fraud activities [4]. Group 3: Key Risk Management Strategies - Real-time verification of bank accounts before processing transactions is crucial to ensure accurate matching of customer and supplier details [8]. - Employing a multi-layered authentication mechanism enhances the defense system against increasingly sophisticated fraud methods [8]. - Utilizing behavioral pattern analysis helps detect anomalies and prevent fraud by identifying legitimate customers and suppliers [8]. Group 4: LSEG Account Verification Solutions - LSEG offers a suite of solutions for real-time bank account verification, covering a wide range of U.S. consumer and business bank accounts [9][11]. - The dual-method bank account verification approach maximizes conversion rates and improves customer experience [16]. - The integration of bank account verification with comprehensive identity verification data ensures that entities engaged in business are legitimate [17].