Financial Data and Key Metrics Changes - Equifax reported revenue of $6.075 billion for 2025, reflecting a 7% increase on both reported and organic constant currency bases, aligning with the long-term growth framework of 7%-10% [7][8] - EPS for 2025 was $7.65 per share, with free cash flow reaching $1.13 billion, representing a 120% cash conversion rate, significantly above the long-term target of 95% [7][14] - The company incurred a $30 million charge related to a settlement, which is expected to be reimbursed by insurers [4][5] Business Line Data and Key Metrics Changes - The Workforce Solutions (EWS) segment achieved 6% revenue growth with EBITDA margins of 51.5%, while the US Information Solutions (USIS) segment saw a 10% revenue increase and expanded margins by 70 basis points to 35.2% [8][9] - Diversified markets revenue grew by 5%, marking the highest organic growth in the non-mortgage space since 2021, while mortgage revenue surged by 22% [9][10] - International revenue grew by 6% in constant dollars, with significant contributions from Brazil and Australia, despite challenges in Canada and the UK [9][10] Market Data and Key Metrics Changes - The US mortgage market declined by 7%, impacting Equifax's revenue growth by approximately 100 basis points [8] - USIS mortgage revenue represented about 20% of total revenue, with hard credit inquiries down by 1%, better than previous expectations [16] - Internationally, revenue growth was affected by weaker economic conditions in Canada and Europe, although Latin America showed strong performance [28] Company Strategy and Development Direction - Equifax is focusing on new product innovation, leveraging AI and cloud capabilities to enhance operational efficiencies and drive growth [10][12] - The company aims to maintain a strong return of capital to shareholders, with plans for significant share repurchases and dividends in 2026 [15][66] - The strategic priorities for 2028 emphasize accelerating AI usage to improve product offerings and operational efficiencies [64][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong finish to 2025, setting a positive tone for 2026, with expectations for continued revenue growth and margin expansion [7][63] - The company anticipates challenges in the mortgage market but expects to outperform through innovative products and strategic partnerships [41][42] - Management highlighted the potential for significant growth in the government vertical, driven by new social service eligibility requirements [25][66] Other Important Information - Equifax launched several new products in 2025, achieving a record 15% new product vitality for the year [10][37] - The company has over 400 AI patents, enhancing its competitive edge in the market [12][31] - The transition to VantageScore is expected to provide cost savings and growth opportunities, although current guidance assumes no immediate conversion [47][49] Q&A Session Summary Question: Can you elaborate on the outlook for the mortgage market? - Management indicated that the mortgage market is expected to decline in low single digits in 2026, but Equifax anticipates outperforming the market through innovative solutions and share gains [41][52] Question: What are the expectations for international growth? - International revenue growth is projected to be mid-single digits, with challenges in Canada and the UK, but strong performance in Latin America [54] Question: How does Equifax plan to leverage AI in its operations? - The company is integrating AI across its operations to enhance product development and operational efficiencies, with significant investments in AI technologies [12][33]

Financial Data and Key Metrics Changes - Equifax reported revenue of $6.075 billion for 2025, reflecting a 7% increase on both reported and organic constant currency bases, aligning with the long-term growth framework of 7%-10% [7][8] - EPS for 2025 was $7.65 per share, with free cash flow reaching $1.13 billion, representing a 120% cash conversion rate, significantly above the long-term target of 95% [7][14] - The company incurred a $30 million charge related to a settlement, which is expected to be reimbursed by insurers [4][5] Business Line Data and Key Metrics Changes - The Workforce Solutions (EWS) segment achieved 6% revenue growth with EBITDA margins of 51.5%, while the US Information Solutions (USIS) segment saw a 10% revenue increase and expanded margins by 70 basis points to 35.2% [8][9] - Diversified markets revenue grew by 5%, marking the highest organic growth in the non-mortgage space since 2021, while mortgage revenue surged by 22% [9][10] - International revenue grew by 6% in constant dollars, with significant contributions from Brazil and Australia, despite challenges in Canada and the UK [9][10] Market Data and Key Metrics Changes - The US mortgage market declined by 7%, impacting Equifax's revenue growth by approximately 100 basis points [8] - USIS mortgage revenue represented about 20% of total revenue, with hard credit inquiries down by 1%, better than previous expectations [16] - The company anticipates continued share gains in the mortgage sector, particularly with the adoption of new products like the Twin Indicator [26][44] Company Strategy and Development Direction - Equifax is focusing on driving new product innovation, leveraging AI capabilities, and enhancing cloud infrastructure to support long-term growth [10][12] - The company aims to maintain a strong return of capital to shareholders, with plans for significant share repurchases and dividends in 2026 [15][66] - The strategic priorities for 2028 emphasize the acceleration of AI usage to improve operational efficiencies and product offerings [64][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong finish to 2025, setting a positive tone for 2026, with expectations for continued revenue growth and margin expansion [7][63] - The company anticipates challenges in the mortgage market but expects to outperform the market through innovative product offerings and strategic partnerships [41][52] - Management highlighted the importance of proprietary data and AI in driving competitive advantages and enhancing customer solutions [29][30] Other Important Information - Equifax launched a new continuous evaluation solution for SNAP, aimed at reducing error rates in social service delivery, which is expected to drive future growth [24][25] - The company has secured over 400 AI patents, enhancing its capabilities in developing advanced analytical solutions [12][31] Q&A Session Summary Question: What are the expectations for the mortgage market in 2026? - Management expects the US mortgage market to decline by low single digits, but anticipates share gains through the introduction of new products like the Twin Indicator [41][44] Question: How is Equifax positioned in terms of AI and proprietary data? - Equifax is leveraging its proprietary data and AI capabilities to develop unique solutions that drive growth and mitigate risk, with 90% of revenue generated from proprietary datasets [29][30] Question: What is the outlook for free cash flow and shareholder returns? - The company expects to generate over $1 billion in free cash flow in 2026, with plans for substantial shareholder returns through dividends and share repurchases [55][66]

Financial Data and Key Metrics Changes - Equifax reported revenue of $6.075 billion for 2025, representing a 7% increase on both a reported and organic constant currency basis, aligning with the long-term growth framework of 7%-10% [5][12] - EPS for 2025 was $7.65 per share, with free cash flow reaching $1.13 billion and a cash conversion rate of 120%, significantly above the long-term target of 95% [5][12] - Fourth quarter revenue was $1.551 billion, up 9% and exceeding guidance by $30 million [14] Business Line Data and Key Metrics Changes - EWS (Workforce Solutions) achieved 6% revenue growth with EBITDA margins of 51.5%, while USIS (U.S. Information Solutions) delivered 10% revenue growth and expanded margins by 70 basis points to 35.2% [6][7] - Diversified markets revenue grew 5%, marking the highest organic growth in the non-mortgage space since 2021 [7] - International revenue grew by 6% in constant dollars, with EBITDA margins expanding nearly 100 basis points [8] Market Data and Key Metrics Changes - The U.S. mortgage market declined by 7%, negatively impacting Equifax's revenue growth by approximately 100 basis points [6] - Despite a weak hiring market, EWS saw strong performance in verification services, achieving over 10% growth in the fourth quarter [6][10] - International markets faced challenges, particularly in Canada and the UK, but Brazil showed strong growth with high single-digit increases [8][26] Company Strategy and Development Direction - Equifax is focusing on driving new product innovation, leveraging AI capabilities, and enhancing cloud infrastructure to support growth [9][30] - The company aims to maintain a strong return of capital to shareholders, with plans for significant share repurchases and dividends in 2026 [13][65] - The strategic priorities for 2028 emphasize the acceleration of AI usage to improve operational efficiencies and product offerings [63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the commercial momentum and strong exit from 2025, anticipating continued growth in 2026 [12][62] - The company expects the U.S. mortgage market to decline slightly in 2026, but anticipates share gains from new product offerings [39][52] - Management highlighted the potential for significant revenue growth from the adoption of VantageScore in the mortgage market, which could enhance margins and EPS [46][48] Other Important Information - Equifax incurred a $30 million charge related to a settlement, which is expected to be reimbursed by insurers [3][4] - The company launched 100% of new models and scores powered by EFX.AI in 2025, demonstrating a commitment to AI-driven solutions [10][34] - Equifax's proprietary data accounts for about 90% of its revenue, providing a competitive advantage in the market [27][28] Q&A Session Summary Question: Can you elaborate on the AI initiatives and their impact on product development? - Management highlighted the Agentic AI platform's role in leveraging data advantages in employment and income, enhancing product offerings and operational efficiencies [66]

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]