Financial Data and Key Metrics Changes - In Q2 2025, TransUnion exceeded all key financial guidance metrics, achieving 9% organic revenue growth on a constant currency basis, surpassing the 3% to 5% guidance [6][39] - Adjusted EBITDA increased by 8%, with an adjusted EBITDA margin of 35.7%, ahead of the 34.8% to 35.3% guidance [40] - Adjusted diluted earnings per share was $1.08, a 9% increase and above the high end of guidance [40] Business Line Data and Key Metrics Changes - U.S. Market segment revenue grew by 10%, with Financial Services up 17% and 11% excluding mortgage [41] - Consumer lending growth accelerated to 18%, with auto growing by 19% and mortgage revenue increasing by 29% despite flat inquiry volumes [42][43] - Emerging verticals grew by 5%, with double-digit growth in insurance and mid-single-digit growth in tech, retail, and e-commerce [44] Market Data and Key Metrics Changes - The U.S. market segment delivered 10% growth, with robust activity from FinTech lenders and healthy consumer demand for debt consolidation products [7][9] - International revenue grew by 6% on an organic constant currency basis, with India’s growth accelerating to 8% [10][46] - Canada and Africa each grew double digits, while Asia Pacific declined by 8% due to lapping one-time consulting revenue [47][48] Company Strategy and Development Direction - The company is focused on executing its 2025 strategic priorities, particularly in the fast-growing Trusted Call Solutions business [5][60] - TransUnion aims to enhance its product offerings and customer experience through innovation and modernization of technology [19][23] - The strategy includes deeper penetration of core verticals, scaling existing solutions, and broadening the product portfolio [36] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. lending environment remains stable but muted, with consumer lending showing signs of recovery [14][88] - The company raised its full-year revenue and adjusted diluted earnings per share guidance based on strong first-half results and continued business momentum [13][50] - Management expressed confidence in the long-term growth opportunities in India, anticipating a return to high teens organic growth by Q4 [106] Other Important Information - The leverage ratio declined to 2.8 times, with plans to delever to 2.5 times before the anticipated Mexico acquisition [11][49] - The company has repurchased $47 million in shares year-to-date, aligning with its balanced approach to capital deployment [12][49] - One-time charges related to the transformation program totaled $29 million in Q2, with a total of $315 million incurred to date [41] Q&A Session Summary Question: What is driving the outperformance in lending types? - Management indicated that a combination of customer mix and new technology/product innovation is driving the outperformance, particularly in consumer lending and FinTech [66][67] Question: What is the momentum behind alternative data bureaus? - The momentum is attributed to re-platforming and innovation at Factor Trust, leading to increased business wins and a robust pipeline [72][74] Question: How is the Mexico acquisition performing? - The asset is performing well and is on plan, with the acquisition expected to close by year-end after clearing regulatory hurdles [75][77] Question: What are the initial learnings from the CI freemium rollout? - The rollout is progressing well, with expectations for mid-single-digit growth in the Consumer Interactive business as new offerings are optimized [81][82] Question: How is the consumer lending environment evolving? - The environment is stable but showing improvement, with consumer lending recovering and card activity becoming more optimistic [88][90] Question: What is the outlook for India? - India is expected to achieve a 10% growth rate for the full year, with high teens growth anticipated in Q4 due to improved lending conditions [106][108]

Financial Data and Key Metrics Changes - In Q4 2024, the company exceeded guidance on revenue and adjusted EBITDA for the fifth consecutive quarter, with revenue growing 9% on an organic constant currency basis, surpassing the 6% to 8% guidance [6][48] - Adjusted EBITDA increased 16% on a reported and constant currency basis, with an adjusted EBITDA margin of 36.5%, up 230 basis points [49] - Adjusted diluted earnings per share was $0.97, reflecting a 21% increase [49] Business Line Data and Key Metrics Changes - U.S. Markets revenue grew 8% year-over-year, with financial services revenue increasing by 21% [51] - Consumer Interactive revenue declined 11% due to a large breach win in the prior year, while excluding this impact, revenue still decreased due to the direct channel [55] - Emerging verticals grew 4%, led by double-digit growth in insurance [54] Market Data and Key Metrics Changes - International revenue grew 12% on a constant currency basis, with India growing 18% [57] - The U.S. credit market conditions remain subdued, with mortgage originations at low levels not seen since 1995 [18] - The Indian consumer credit market is expected to grow modestly in 2025, with a guidance of roughly 10% growth [60] Company Strategy and Development Direction - The company aims to deliver consistent results in a subdued market while focusing on transforming its operating model, modernizing technology, and accelerating innovation [12][13] - Strategic priorities for 2025 include strengthening the global operating model and completing technology transformations in the U.S. and India [13][14] - The company plans to expand its freemium credit management offering in collaboration with Credit Sesame, targeting the multibillion-dollar market [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook, assuming muted but stable lending activity in the U.S. and not anticipating significant improvements in credit volumes due to interest rate conditions [15][66] - The company expects to achieve 4.5% to 6% organic constant currency revenue growth in 2025, with potential upside when U.S. credit market conditions improve [83] - Management highlighted the importance of maintaining a conservative approach to guidance, reflecting the current market conditions [91] Other Important Information - The company prepaid $45 million in debt during Q4 2024, totaling $150 million for the year, and successfully refinanced over $2.3 billion of term loans [9][10] - A new $500 million share repurchase program was authorized, replacing all prior repurchase authorizations [79] Q&A Session Questions and Answers Question: How does the company reconcile its conservative guidance with current market conditions? - Management indicated that while market conditions are stable, they remain muted compared to longer-term origination patterns, hence the prudent approach to guidance [91] Question: What is the expected performance of Consumer Interactive revenues in 2025? - Management noted that the new freemium offering is expected to enhance growth in both direct and indirect channels, providing a strategic reset for the consumer business [96] Question: What visibility does the company have regarding growth in India? - Management acknowledged the slowdown in the Indian market due to regulatory actions but expressed optimism for a potential thawing in the consumer credit market throughout 2025 [100]