Core Insights - TransUnion reported strong second-quarter results for 2025, exceeding analyst expectations with adjusted EPS of $1.08 and revenue of $1.14 billion, reflecting year-over-year increases of 9.1% and 9.5% respectively [1][2][3] Financial Performance - Adjusted EPS for Q2 2025 was $1.08, surpassing the estimate of $0.99, and up from $0.99 in Q2 2024, marking a 9.1% increase [3] - Revenue reached $1.14 billion, compared to the projected $1.1 billion and $1.04 billion in Q2 2024, representing a 9.5% year-over-year growth [3] - Adjusted EBITDA rose to $407 million, an 8.1% increase from $376.6 million in the previous year, with an adjusted EBITDA margin of 35.7%, slightly down from 36.2% [3][9] - Net income increased by 29% to $109.6 million from $85 million in the prior year [3] Business Segments - The U.S. Financial Services segment led growth with revenue of $419.9 million, up 17.1% year-over-year [6] - Mortgage revenue grew by 27%, despite a 10% decline in inquiry volumes, driven by price improvements and product mix [6] - The Consumer Interactive segment saw a modest revenue increase of 3.3% [7] - International operations reported a revenue growth of 7.4%, with the UK leading at 19% growth [8] Strategic Initiatives - TransUnion is enhancing its data and analytics capabilities and expanding its technological infrastructure, including the migration of over 90 U.S. Credit customers to the OneTrue cloud platform [5][11] - The company is focusing on product development, launching the TrueIQ analytics suite and TruValidate for fraud detection [12] - Market expansion efforts include the integration of Monevo and plans to acquire TransUnion de Mexico to increase exposure in growth markets [13] Outlook and Guidance - The company raised its full-year 2025 guidance, targeting revenue between $4.432 billion and $4.472 billion, with adjusted EBITDA between $1.58 billion and $1.61 billion [15] - For Q3 2025, revenue is expected to be between $1.12 billion and $1.135 billion, with adjusted EPS around $1.08 [15] - Free cash flow conversion is projected to reach approximately 70% for FY2025, improving to over 90% in 2026 [15]

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 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 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 technology modernization [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 deleverage 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 for 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 company targeting to close the acquisition by year-end [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 - TransUnion exceeded all key financial guidance metrics for the sixth consecutive quarter, achieving high single-digit organic revenue growth of 9% on an organic constant currency basis, surpassing the 3% to 5% guidance [5][35] - Adjusted EBITDA increased by 8%, with an adjusted EBITDA margin of 35.7%, exceeding the guidance of 34.8% to 35.3% [36] - Adjusted diluted earnings per share rose to $1.08, a 9% increase and above the high end of guidance [36] Business Line Data and Key Metrics Changes - U.S. Market segment revenue grew by 10%, with Financial Services up 17% and 11% growth excluding mortgage [38] - Consumer lending and auto segments experienced double-digit growth, while card and banking grew in mid-single digits [6][38] - Emerging verticals grew by 5%, with insurance showing double-digit growth driven by recovery in marketing and consumer shopping activity [8][40] Market Data and Key Metrics Changes - The U.S. market segment delivered 10% growth, with robust activity from FinTech lenders and a 29% increase in mortgage revenue despite flat inquiries [6][39] - International revenue grew by 6% on an organic constant currency basis, with India showing an acceleration to 8% growth [8][42] - Canada and Africa also reported double-digit growth, while Asia Pacific declined by 8% due to lapping one-time consulting revenue [44] Company Strategy and Development Direction - The company is focused on execution and value creation, with an emphasis on product innovation and expanding its suite of solutions [57] - TransUnion aims to deepen penetration in core verticals, scale existing solutions, and broaden its product portfolio, particularly in Trusted Call Solutions [33][32] - The company is positioned to capitalize on significant growth opportunities in India, targeting over 20% annual growth in the medium term [15][109] 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 [12][82] - The company raised its full-year revenue and adjusted diluted earnings per share guidance, reflecting strong first-half results and continued business momentum [11][57] - Concerns about inflation and interest rates were acknowledged, but management remains optimistic about the resilience of consumers and lenders [12][13] Other Important Information - The leverage ratio declined to 2.8 times, with plans to deleverage to 2.5 times before the anticipated acquisition in Mexico [9][46] - The company has repurchased $47 million in shares year-to-date, aligning with its balanced approach to capital deployment [10][46] - One-time charges related to the transformation program totaled $29 million in the quarter, with a total of $315 million incurred to date [37] Q&A Session Summary Question: What is driving the outperformance across 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 [61][62] Question: What is the momentum for alternative data bureaus? - The momentum is attributed to re-platforming and innovation at Factor Trust, leading to increased business wins and a robust pipeline [67][70] Question: How is the Mexico acquisition performing? - The asset is performing well and is on plan, with the acquisition expected to close by the end of the year after clearing regulatory hurdles [72] 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 integrated [74][78] 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 [80][82] Question: What is the outlook for the mortgage market? - The mortgage market is at a bottom, with inquiries flat but revenue increasing due to pricing and pre-qualification traction [97][99] Question: What is the growth outlook for India? - India is expected to achieve a 10% growth rate for the full year, with potential for high teens growth in the fourth quarter as lending volumes recover [104][109]

Financial Performance & Guidance - Second quarter revenue reached $1.14 billion, a 10% increase[43] - Organic constant currency revenue grew by 9%, or approximately 6.5% excluding mortgage impacts[10, 44] - Adjusted EBITDA for the second quarter was $407 million, up 8%[43] - The company is raising full-year 2025 revenue guidance to $4.432 billion - $4.472 billion, representing a 6% to 7% increase[13, 62] - Full-year Adjusted EBITDA is guided to $1.580 billion - $1.610 billion, a 5% to 7% increase[67] - Adjusted Diluted EPS for the full year is expected to be $4.03 to $4.14, a 3% to 6% increase[67] Segment Performance - U S Markets revenue increased by 10% to $890 million, with Financial Services growing by 17%[10, 45] - International revenue grew by 6%, with India accelerating to 8% growth[10] Strategic Initiatives - Trusted Call Solutions (TCS) revenue is expected to scale from approximately $50 million in 2022 to an expected $150 million in 2025[27] - The company is targeting approximately $250 million in revenue for Trusted Call Solutions by 2028[42] - The company repurchased $47 million in shares year-to-date through mid-July[10, 57]

Financial Data and Key Metrics Changes - The company reported a strong first quarter performance with 9% organic growth in 2024, and volumes in the first quarter were consistent with this trend [6][9] - The company maintained a conservative posture for 2025, guiding for revenue growth conservatively and incorporating contingencies in financial forecasts [18][20] - The company achieved positive growth of 3% in both 2022 and 2023 despite challenging macroeconomic conditions [9][24] Business Line Data and Key Metrics Changes - The mortgage segment is facing challenges due to rising costs and concerns about credit report pricing, but the company has maintained stable pricing practices [30][32] - The auto segment experienced a pull forward in volumes due to demand ahead of potential tariff implementations, with expectations for continued higher demand [53][55] - NuStar has shown improved revenue performance due to successful integration of marketing and fraud solutions, with organic growth between 4% and 6% since acquisition [58][60] Market Data and Key Metrics Changes - Consumer credit markets are currently healthy but show signs of concern among consumers and lenders regarding future economic conditions [5][12] - In India, the company expects a return to high teen organic growth rates by the end of 2025, driven by improved lending conditions under the new RBI governor [86][90] Company Strategy and Development Direction - The company has diversified its portfolio significantly and integrated acquisitions to enhance its market position [9][24] - The focus on technology and workforce restructuring is expected to yield ongoing cost savings and maintain EBITDA and EPS performance [28][27] - The company is optimistic about expanding its services in emerging markets and enhancing its product offerings in response to market needs [66][70] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential economic downturns but emphasized the company's preparedness to weather such conditions [20][21] - The company is cautious about consumer credit origination growth for the remainder of 2025, citing mixed signals from leading indicators [11][12] - Management highlighted the importance of adapting to changing economic policies and consumer behaviors to maintain growth [16][40] Other Important Information - The company is focused on enhancing its freemium product offerings to compete effectively in the consumer market [74][76] - The company has seen significant growth in breach services, although it remains lumpy due to the unpredictability of large breach events [82][83] Q&A Session Summary Question: How is the company positioned in a potential stagflation environment? - Management indicated that the company is well-positioned to handle stagflation due to its diversified portfolio and previous performance during similar conditions [21][24] Question: What are the expectations for consumer credit origination growth in 2025? - Management acknowledged the healthy state of consumers but noted concerns about future lending volumes due to economic uncertainties [12][14] Question: How does the company view the competitive landscape in mortgage credit reporting? - Management discussed the challenges posed by rising costs and the need for a broader reflection on mortgage origination costs [30][36] Question: What is the outlook for the auto segment? - Management confirmed that auto volumes have been consistent with guidance and expressed optimism about demand due to tariff concerns [55][56] Question: What is driving the recent success in NuStar? - Management attributed NuStar's success to the integration of services and improved market positioning following the acquisition [58][60]