Financial Data and Key Metrics Changes - Total revenues increased by 12% organically, with the US market growing by 16%, marking one of the strongest performances since 2021 [9][30] - Adjusted diluted EPS grew by 10% in the quarter, or 14% when excluding the impact from the tax rate reset [9] - Adjusted EBITDA increased by 10%, with an adjusted EBITDA margin of 35.6% [30] Business Line Data and Key Metrics Changes - In the U.S., financial services revenue grew by 19%, or 11% excluding mortgage, with double-digit growth in mortgage, consumer lending, and auto [10][31] - Emerging verticals accelerated from 7% growth in Q3 to 16% in Q4, with strong performance across insurance, media, tenant and employment screening, tech, retail, and e-commerce [10][32] - Credit solutions grew by 13%, driven by U.S. non-mortgage volumes, while marketing solutions saw a growth acceleration from flat in 2024 to 7% in 2025 [15][16] Market Data and Key Metrics Changes - Internationally, revenue grew by 2% on an organic constant currency basis, with Canada and the U.K. both achieving double-digit growth [11][34] - India experienced a revenue decline of 4% in Q4, attributed to a reset year for unsecured lending and credit card originations [11][37] - The U.K. business grew by 10%, and Canada grew by 13%, reflecting strong performance from banking and fintech customers [34] Company Strategy and Development Direction - The company aims to build on its momentum and drive innovation-led growth, with a focus on launching new AI-powered solutions [20][21] - The strategic focus for 2026 includes enhancing product predictiveness and capturing more value within customer workflows [20] - The company completed its transformation investment program, which is expected to yield full target savings in 2026 [19][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit revenue growth and double-digit adjusted EPS growth for 2026, assuming stable business conditions [19][55] - The company anticipates a gradual recovery in international markets and modest U.S. lending growth [19][42] - Management highlighted the importance of AI in driving growth and improving operational efficiency, positioning the company advantageously in the market [22][28] Other Important Information - The company repurchased approximately $150 million in shares during the quarter, totaling $300 million for 2025, and raised its quarterly dividend by 9% to $0.125 per share [9][40] - The acquisition of Monevo and majority ownership of TransUnion de México were completed, expanding the company's global reach [14][40] Q&A Session Questions and Answers Question: U.S. emerging vertical guidance - Management acknowledged strong growth in emerging verticals and emphasized a prudent conservative approach to guidance, setting the stage for potential outperformance [60][62] Question: Differentiation in marketing and fraud - Management highlighted the unique identity data assets and resolution capabilities that set the company apart from competitors, emphasizing the proprietary nature of their data [71][73]

Financial Data and Key Metrics Changes - Total revenues increased by 12% organically, with the U.S. market growing by 16%, marking one of the strongest performances since 2021 [9][30] - Adjusted diluted EPS grew by 10% in the quarter, or 14% when excluding the impact from the tax rate reset [9] - Adjusted EBITDA increased by 10%, with an adjusted EBITDA margin of 35.6% [30] Business Line Data and Key Metrics Changes - U.S. Financial Services revenue grew by 19%, or 11% excluding mortgage, with double-digit growth in Consumer Lending and Auto [10][31] - Emerging Verticals accelerated growth from 7% in Q3 to 16% in Q4, with double-digit growth across Insurance, Media, Tenant and Employment Screening, Tech, Retail, and E-commerce [10] - Credit Solutions grew by 13%, driven by U.S. non-mortgage volumes, while Marketing Solutions saw a growth acceleration from flat in 2024 to 7% in 2025 [15][16] Market Data and Key Metrics Changes - International revenue grew by 2% on an organic constant currency basis, with Canada and the U.K. both achieving double-digit growth [11][34] - India experienced a revenue decline of 4% in Q4, attributed to a reset year for unsecured lending and credit card originations [11][37] - Latin America declined by 3% due to softer economic conditions, while Asia Pacific saw an 11% decline [36] Company Strategy and Development Direction - The company aims to build on its momentum and drive innovation-led growth, with a focus on launching new AI-powered solutions [20][21] - The strategic focus for 2026 includes enhancing product predictiveness and capturing more value within customer workflows [20] - The company plans to expand its offerings in India, leveraging favorable economic and demographic trends [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit revenue growth and double-digit adjusted EPS growth for 2026, assuming stable business conditions [19][54] - The company anticipates a gradual recovery in international markets and modest U.S. lending growth [19][54] - Management highlighted the importance of AI in driving growth and improving internal processes, positioning the company advantageously in the market [22][28] Other Important Information - The company repurchased approximately $150 million in shares during Q4, totaling $300 million for 2025, and raised its quarterly dividend by 9% to $0.125 per share [9][41] - The acquisition of Monevo and majority ownership of TransUnion de México were highlighted as strategic moves to enhance growth [14][41] - The transformation investment program was completed on schedule and budget, expected to deliver significant cost savings and operational efficiencies [42][43] Q&A Session Summary Question: U.S. emerging vertical guidance - Management acknowledged strong growth in emerging verticals and emphasized a conservative approach to guidance, aiming for beats and raises throughout the year [60][62] Question: Differentiation in Marketing and Fraud - Management highlighted the proprietary identity data assets and resolution capabilities as key differentiators, emphasizing the challenges competitors face in accessing similar data [70][72]

Financial Data and Key Metrics Changes - Total revenues increased by 12% organically, with the US market growing by 16%, marking one of the strongest performances since 2021 [5][26] - Adjusted diluted EPS grew by 10% in the quarter, or 14% when excluding the impact from the tax rate reset [5][27] - Adjusted EBITDA increased by 10%, with an adjusted EBITDA margin of 35.6% [26][27] Business Line Data and Key Metrics Changes - U.S. financial services revenue grew by 19%, or 11% excluding mortgage, with mortgage revenue increasing by 37% [6][29] - Emerging verticals accelerated to 16% growth, up from 7% in the third quarter, with double-digit growth across various sectors including insurance and e-commerce [6][30] - Credit solutions grew by 13%, driven by U.S. non-mortgage volumes, while marketing solutions saw a growth of 7% [11][12] Market Data and Key Metrics Changes - International revenue grew by 2% on an organic constant currency basis, with Canada and the U.K. both achieving double-digit growth [7][31] - India experienced a decline of 4% in the quarter, attributed to a reset year for unsecured lending and credit card originations [7][33] - The U.S. markets are expected to see high single-digit growth, while international markets are anticipated to grow mid-single-digit [42] Company Strategy and Development Direction - The company aims to build on its momentum and drive innovation-led growth, with a focus on launching new AI-powered solutions [17][18] - The strategic focus for 2026 includes enhancing product predictiveness and capturing more value within customer workflows [17][18] - The company completed its transformation investment program, which is expected to yield full target savings in 2026 [16][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit revenue growth and double-digit adjusted EPS growth for 2026 [16][50] - The company anticipates a gradual recovery in international markets and modest U.S. lending growth [16][34] - Management highlighted the importance of AI in driving growth and improving operational efficiency [19][24] Other Important Information - The company repurchased approximately $150 million of shares in the fourth quarter, totaling $300 million for 2025 [5][37] - A quarterly dividend was raised by 9% to $0.125 per share, reflecting a commitment to returning capital to shareholders [5][37] - The acquisition of a majority ownership of TransUnion de México is expected to close in the first half of 2026 [37][38] Q&A Session Questions and Answers Question: Insights on U.S. emerging vertical guidance - Management acknowledged strong growth in emerging verticals and emphasized a conservative approach to guidance, aiming for beats and raises throughout the year [54][55] Question: Differentiation in marketing and fraud solutions - Management highlighted the proprietary identity data assets and resolution capabilities as key differentiators, emphasizing the extensive data sources and integrations that competitors may lack [65][66]

Fourth Quarter 2025 Earnings February 12, 2026 Chris Cartwright, President and CEO Todd Cello, CFO This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion's management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Factors that could cause TransUnion's ac ...

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 - Regular insurance shopping has become a routine activity for consumers, driven by economic pressures and competitive insurer marketing [1][3] - In Q4 2025, auto insurance shopping increased by 11% and property insurance shopping rose by 5% compared to Q4 2024, indicating sustained elevated shopping levels [2] Consumer Behavior - The report highlights a shopping intensity index, revealing that while consumers are shopping more frequently, most exhibit low shopping intensity, with less than 25% considering three or more insurers [4] - 77% of consumers only shop with one or two insurers, often satisfied with finding a lower rate rather than the lowest possible rate [5] Demographic Insights - Generational and geographic factors influence shopping intensity, with Baby Boomers and Silent Generation scoring seven points lower than Gen Z, likely due to brand loyalty [8] - Consumers in the least populated 20% of zip codes show four points lower shopping intensity, attributed to limited local options [8] Retention Strategies - Insurers have an opportunity to enhance customer retention by engaging existing customers before they start shopping, offering potential discounts and additional coverage options [6] - Utilizing solutions like TransUnion's Branded Call Display can improve consumer trust and increase call answer rates [6]

Summary of TransUnion Conference Call Company Overview - **Company**: TransUnion - **Industry**: Consumer information and credit reporting - **Position**: One of the big three global credit bureaus Key Points and Arguments Growth Performance - TransUnion experienced a growth of **3%** in both **2022** and **2023**, which was below expectations due to high inflation and rising interest rates creating uncertainty in the lending market [2][3] - The company anticipates a return to **high single-digit to low double-digit growth** in **2024** and **2025**, driven by stability in the U.S. financial services sector and increased lending volumes [3][4] Market Dynamics - The lending environment is stabilizing, with notable growth in **consumer lending**, particularly with fintechs [3][4] - Emerging verticals such as technology, retail, e-commerce, and media are contributing to growth, with a **7.5%** increase reported in the third quarter [5][6] Consumer Health - The consumer market is characterized as relatively healthy, with consumers meeting financial obligations due to employment and real wage growth [8] - Delinquency rates have returned to normal levels, with **40%** of consumers classified as super prime and **14%** as subprime, indicating a bifurcation in consumer credit quality [9][10] Product Diversification - TransUnion is diversifying its product offerings beyond credit reporting, focusing on identity resolution, marketing, and fraud prevention [15][16] - The **Trusted Call Solutions** product is expected to generate **$150 million** in revenue by **2025**, up from **$50 million** three years ago [16] Pricing Strategy - Pricing growth in U.S. markets is driven by a **5%** increase, primarily in the mortgage sector due to FICO pricing changes [17][18] - TransUnion plans to pass on costs associated with FICO's pricing changes to customers, which may impact margins but protect revenue [22][23] Future Outlook - The company is undergoing a transformation program aimed at optimizing its organizational model and modernizing technology, with an expected **$35 million** in cost savings by the end of **2025** [30][31] - The acquisition of a larger stake in a Mexican credit bureau is pending regulatory approval, which will allow TransUnion to consolidate revenue and EBITDA [34] AI and Innovation - TransUnion views itself as an **AI winner**, leveraging machine learning for product innovation and operational efficiencies, particularly in fraud detection [35][36] Risk Management - The company emphasizes the uniqueness of its data assets, which are critical for creating comprehensive consumer profiles and differentiating from competitors [38] Additional Important Insights - The company is cautiously optimistic about the stability of the lending market and is closely monitoring consumer behavior and market dynamics [11][12] - The transition to VantageScore in the mortgage market is contingent on changes by GSEs and lenders, which are expected to occur by early **2026** [24][25] This summary encapsulates the key insights from the TransUnion conference call, highlighting the company's growth trajectory, market dynamics, consumer health, product diversification, pricing strategy, future outlook, and innovation efforts.

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]