Core Insights - TransUnion reported strong financial performance in Q4, exceeding revenue, adjusted EBITDA, and adjusted diluted EPS expectations, marking a successful conclusion to its multi-year transformation program [3][5][13] Financial Performance - The company recorded $25 million in one-time transformation-related charges in Q4, with $6 million for operating model optimization and $19 million for technology transformation, marking the final quarter of such charges [1] - Adjusted EBITDA rose by 10%, achieving a margin of 35.6%, while adjusted diluted EPS increased to $1.07, up 10% year-over-year, exceeding the high end of the company's guidance by $0.05 [2] - Consolidated revenue increased by 13% on a reported basis and 12% organically in constant currency, with contributions from the Monevo acquisition and strong growth in the mortgage sector [3][5] Growth Drivers - U.S. Markets revenue grew 16% organically in constant currency, with Financial Services revenue rising by 19%, driven by double-digit growth in mortgage, consumer lending, and auto sectors [6][7] - Emerging Verticals accelerated to 16% growth in Q4, with significant contributions from insurance, tech, retail, and e-commerce sectors [7] - The lending environment remains positive, supported by sufficient lender capital and strong credit performance [7] Capital Deployment and Shareholder Returns - The company repurchased approximately $300 million of stock in 2025 and increased its dividend by 9%, with plans for continued buybacks while aiming to reduce leverage [4][14] - Management emphasized shareholder returns and views the current valuation as attractive, planning to remain active in repurchases during 2026 [14] M&A Activity - TransUnion completed the Monevo acquisition in 2025 and anticipates closing the purchase of majority ownership of TransUnion de México in the first half of 2026, with an expected purchase price of approximately $660 million [15] AI Strategy - Executives highlighted that AI is seen as an enabler rather than a threat, with plans to apply AI internally to enhance productivity through an analytics platform [16] 2026 Guidance - Management provided guidance for 2026, expecting 8% to 9% organic constant-currency revenue growth, 7% to 8% adjusted EBITDA growth, and 8% to 10% adjusted diluted EPS growth, while noting the impact of higher FICO mortgage royalties on reported metrics [17][19]

Core Insights - TransUnion (NYSE: TRU) reported strong fourth-quarter results, exceeding Wall Street expectations with revenue of $1.17 billion and adjusted diluted EPS of $1.07, surpassing estimates by 1.7% and 3.9% respectively [2][10] Financial Performance - The company achieved a 13% revenue growth driven by robust performance in U.S. Markets, with Financial Services revenue increasing by 19% to $423 million and Emerging Verticals growing by 16% to $350 million [3] - Trusted Call Solutions experienced exceptional growth of 30%, reaching $160 million [3] - Net income rose 53% year-over-year to $101 million, while adjusted EBITDA reached $417 million with a margin of 35.6% [4] Geographic Performance - Geographic results were mixed, with Canada and the UK showing gains of 13% and 10% respectively, while India saw a revenue decline of 4% due to unsecured lending resets, and Asia Pacific fell by 11% [5] Future Outlook and Capital Returns - For 2026, TransUnion guided revenue growth of 8% to 9% and adjusted EPS growth of 8% to 10%, with first-quarter revenue expected between $1.195 billion and $1.205 billion and EPS of $1.08 to $1.10 [6] - The company returned significant capital to shareholders, repurchasing $150 million in shares during Q4 and $300 million for the full year, and raised the quarterly dividend by about 9% to $0.125 per share [6][10] Leverage and Investor Engagement - TransUnion's leverage ratio improved to 2.6x from 3.0x a year earlier [7] - The company plans to host an Investor Day on March 10 to discuss its updated medium-term financial framework [7]

Core Insights - TransUnion reported Q4 earnings that exceeded Wall Street expectations with revenue of $1.17 billion and adjusted EPS of $1.07, marking a 53% year-over-year increase in net income [1] Financial Performance - Revenue growth of 13% was driven by strong performance in U.S. Markets, with Financial Services revenue increasing by 19% to $423 million and Emerging Verticals growing by 16% to $350 million [1] - Trusted Call Solutions experienced exceptional growth of 30%, reaching $160 million [1] - Adjusted EBITDA was $417 million, resulting in a margin of 35.6% [1] Geographic Performance - Mixed results were observed geographically, with Canada and the UK showing gains of 13% and 10% respectively, while India revenue declined by 4% and Asia Pacific fell by 11% [1] Future Outlook - For 2026, TransUnion guided revenue growth of 8% to 9% and adjusted EPS growth of 8% to 10% [1] - First-quarter revenue is projected to be between $1.195 billion and $1.205 billion, with EPS expected to be between $1.08 and $1.10 [1] Capital Returns - The company repurchased $150 million in shares during Q4 and a total of $300 million for the full year [1] - The quarterly dividend was raised by approximately 9% to $0.125 per share, payable on March 13, 2026 [1] - TransUnion's leverage ratio improved to 2.6x from 3.0x a year earlier [1]

Core Viewpoint - Equifax Inc. is identified as a strong investment opportunity despite regulatory pressures, with analysts maintaining positive ratings and price targets for the stock [1][2]. Company Overview - Equifax Inc. is a global data, analytics, and technology company that primarily provides credit reporting, identity management, and workforce verification services [4]. Analyst Ratings and Price Targets - Toni Kaplan from Morgan Stanley reiterated a Buy rating on Equifax with a price target of $269 [1]. - Ashish Sabadra from RBC Capital also reiterated a Buy rating with a price target of $250 [1]. Market Conditions and Growth Projections - Analyst Sabadra sees long-term buying opportunities for credit bureau stocks despite short-term pressures from regulatory concerns [2]. - The fundamentals of the sector are expected to remain strong through 2026, with Equifax projected to achieve 6% to 8% revenue growth and 8% to 11% adjusted EBITDA growth [3]. Regulatory Environment - The company faces short-term stock pressure due to regulatory changes, including the Federal Housing Finance Agency's shift to bi-merge credit reports and the Credit Card Competition Act [2]. - Despite these challenges, there are identified tailwinds such as OBBA, deregulation, lower rates, and modest mortgage recovery that could benefit the sector [3].

Group 1: Investment Performance - Vulcan Value Partners reported positive results across all strategies in Q4 2025, with the Large Cap Composite returning -1.5% in Q4 and 7.9% YTD, and the Small Cap Composite gaining 3.2% in Q4 and 9.5% YTD [1] - The Focus Composite and Focus Plus Composite both returned 0.1% in Q4, with YTD returns of 7.1% and 6.2% respectively, while the All-Cap Composite returned 1.3% in Q4 and 10.7% YTD [1] - The firm improved its price-to-value ratios despite overvalued markets, emphasizing safety and long-term gains over short-term performance [1] Group 2: TransUnion Overview - TransUnion (NYSE:TRU) is one of the three leading credit bureaus in the U.S., collecting consumer borrowing and payment data from over 95,000 financial institutions [3] - The company has diversified its offerings beyond credit reports and scores, providing tools for consumers to manage personal finances and shop for financial products [3] - TransUnion operates in an oligopoly with competitors like Experian and Equifax, and has historically grown organically in the high single digits with a 30% operating margin [3] Group 3: TransUnion Stock Performance - TransUnion's stock traded between $66.38 and $101.19 over the past 52 weeks, closing at $85.80 on January 22, 2026 [2] - The one-month return for TransUnion was -1.77%, while it gained 0.23% over the last three months [2] - The market capitalization of TransUnion is $16.714 billion [2]

Core Viewpoint - The investment strategies have shown positive returns for the year, with a focus on long-term performance over short-term results [2][5]. Performance Summary - Large Cap Composite (Gross) returned -1.4% QTD, 8.5% YTD, and 10.4% annualized since inception [3][22]. - Small Cap Composite (Gross) returned 3.4% QTD, 10.3% YTD, and 8.3% annualized since inception [3][31]. - Focus Composite (Gross) returned 0.2% QTD, 7.5% YTD, and 14.3% annualized since inception [3][36]. - All Cap Composite (Gross) returned 1.5% QTD, 11.5% YTD, and 11.1% annualized since inception [3][53]. Market Environment - The current market resembles the late 1990s, with concerns about overvaluation and a focus on AI-related stocks [5][6][7]. - AI is seen as a transformative technology, similar to the Internet, but caution is advised regarding valuations [7][9]. Investment Strategy - The company emphasizes buying only those companies with stable values, often waiting for them to become discounted enough for investment [10][12]. - The portfolio has shifted towards more healthcare and insurance-related businesses, with a focus on smaller companies outside the top 10 largest market capitalizations [11][12]. Notable Holdings - Medpace (MEDP) has shown significant growth, with a stock price increase of over 73% for the year, driven by strong free cash flow and share repurchases [13][14]. - Ryan Specialty Holdings Inc. is highlighted for its robust growth and stable margins, despite facing a short-term pricing cycle [24][25][38]. - TransUnion is recognized for its strong operating margins and successful diversification beyond credit reports [26][38]. Performance Contributors and Detractors - Alphabet Inc. and Salesforce Inc. were significant contributors to performance, while CoStar Group and Microsoft Corporation were notable detractors [37][46]. - Fiserv Inc. was a material detractor due to downward guidance and strategic shifts in its business model [30][46]. Market Trends - The small-cap sector has lagged behind large-cap returns, presenting potential opportunities for investment as it is often overlooked [15]. - The dominance of large-cap stocks in market returns continues, with the top 10 S&P 500 stocks accounting for over 50% of its return in 2025 [16].

Group 1 - The article discusses the importance of managing tax payments to avoid penalties, emphasizing that paying at least 90% of the current year's tax or 100% of the previous year's tax can help avoid penalties [1] - It highlights the necessity of reviewing credit reports for errors, advising individuals to contact credit bureaus to dispute inaccuracies [2][3] - The article suggests budgeting for "this year-only" expenses and maintaining an emergency savings account to cover unexpected life events [4][5] Group 2 - It outlines a timeline for financial planning throughout the year, including key dates for tax payments and retirement contributions [7][13][14] - The article emphasizes the importance of reviewing financial allocations and beneficiaries mid-year to ensure they align with current circumstances [20][22] - It encourages individuals to consider education savings plans and charitable contributions as part of their financial strategy [23][25]

Core Insights - Mar Vista Investment Partners reported a strong performance in U.S. equities for 2025, marking the second consecutive year of double-digit gains, with a notable recovery from a bear market dip in April [1] - The Mar Vista U.S. Quality strategy achieved a net-of-fees gain of +0.20% in Q4 2025, underperforming the Russell 1000® Index (+2.41%) and the S&P 500® Index (+2.65%) [1] - Stock selection in communication services, consumer discretionary, and financials sectors positively impacted performance, while information technology, materials, and healthcare sectors detracted from it [1] - The outlook for 2026 suggests a need for balance between strong fundamentals and increasing economic uncertainties [1] Company-Specific Insights - Equifax Inc. (NYSE:EFX) was highlighted in the investor letter, with a one-month return of 0.83% and a 52-week loss of 12.68% [2] - As of January 12, 2026, Equifax's stock closed at $221.63 per share, with a market capitalization of $27.248 billion [2] - Mar Vista divested its position in Equifax during Q4 2025 due to strategic shifts by FICO, which plans to sell credit scores directly to mortgage underwriters, increasing uncertainty in the credit-scoring value chain [3] - The decision to exit the position was influenced by a slower-than-expected recovery in the housing market and a weakened risk-reward profile for the investment [3]

Core Insights - Canadians' financial optimism is declining due to rising living costs, with 53% stating their household income is not keeping pace with inflation [1][5] - A significant portion of Canadians (31%) are pessimistic about their financial situation in the next year, despite 20% reporting an income increase in the last three months [1][5] - Economic uncertainty is prompting Canadians to adjust their spending habits, with 67% seeking sales and discounts more frequently [4][5] Financial Strain - 25% of Canadians are unable to pay at least one current bill or loan in full, with credit card payments (63%) and personal loans (55%) being the most affected [2][3] - Over half (51%) of Canadians have cut back on discretionary spending, while 19% plan to reduce contributions to retirement funds [4][5] Recession Sentiment - 27% of Canadians believe the country is currently in a recession, and 32% expect one within the next year, leading 84% to prepare for potential economic downturns [3][4] Spending Adjustments - Canadians are increasingly prioritizing essential goods, with 85% changing shopping habits in response to economic conditions [5] - Common adjustments include reducing spending (61%), building savings (38%), and shopping at more affordable retailers (44%) [6] Credit Access and Intentions - 82% of Canadians view access to credit as essential for achieving financial goals, but only 56% feel they have sufficient access [7][10] - 21% plan to apply for new credit or refinance existing credit, with younger generations (47% of Gen Z and 31% of Millennials) leading this trend [8][9] Fraud Concerns - Nearly half (46%) of Canadians reported being targeted by fraud in the past three months, with younger Canadians being the most vulnerable [12][13] - Despite the risks, 36% of Canadians took no action to address cybersecurity concerns, highlighting a need for better education on fraud prevention [13]

Summary of J.P. Morgan Information Services Conference Call Industry Overview - The Information Services sector underperformed the S&P 500 in 2025, with J.P. Morgan's Info Services Index down -7% compared to a +13% increase for the S&P 500 [2][9] - The sector is currently trading at a median P/E of 25.9x based on 2026E EPS estimates, which is close to a five-year low valuation premium of 21% over the S&P 500 [2][10] Key Insights on AI and Market Dynamics - Uncertainty regarding AI disruption has been a significant factor in the sector's underperformance in 2025 [3][19] - There is a growing correlation between clients' AI adoption and their foundational data consumption, suggesting that as AI adoption increases, so will demand for data services [3][22] - The narrative around AI is expected to shift positively, leading to a re-evaluation of the sector's growth potential and valuation multiples, which could return to historical premiums of 40-60% over the broader market [3][22] Revenue Growth Expectations - The sector is projected to achieve a median organic constant currency revenue growth of +8% year-over-year in 2026, surpassing the historical CAGR of ~6% [4][27] - Credit rating agencies are expected to benefit from macroeconomic and M&A tailwinds, with Moody's and S&P Global positioned for strong growth [4][40] Company-Specific Highlights - **TransUnion (TRU)**: - Trading at 20.4x 2026E EPS, with expected organic revenue growth of +8% in 2025 and +7% in 2026 [7] - The rollout of the OneTru platform is anticipated to drive innovation and revenue growth [7] - Free cash flow is expected to increase from $600 million in 2025E to $834 million in 2026E, aiding in acquisitions and buybacks [7] - **S&P Global (SPGI)**: - Expected to deliver high-single-digit organic revenue growth in 2026, with margin expansion and aggressive share buybacks [8] - The planned spin-off of the Mobility segment will impact revenue estimates, but the core divisions are well-positioned for growth [8] Buyback Activity - Info Services firms are expected to accelerate share buybacks in 2026, with S&P Global, MSCI, Moody's, and FICO being the most active [33] - The sector's buyback activity is at its highest since early 2022, which should support EPS growth in 2026 [33] M&A Activity - 2025 saw limited M&A activity, but notable transactions include TransUnion's acquisition of Trans Union de Mexico and S&P Global's acquisition of With Intelligence [36] - The success of these acquisitions will be crucial for future performance, particularly for S&P Global in the private markets [36] Risks and Challenges - The emergence of AI-native startups poses a competitive threat, potentially compressing product development cycles and increasing execution risks [64][67] - The market for credit reports and scores is expected to evolve dynamically, with potential price increases leading to industry discussions about shifting to a "bi-merge" report [59][63] Conclusion - The Information Services sector is entering 2026 with favorable growth prospects and attractive valuations, despite the challenges posed by AI disruption and competitive pressures. The anticipated recovery in mortgage activity and continued demand for data services are expected to drive revenue growth across key players in the sector.