Financial Data and Key Metrics Changes - Equifax reported revenue of $1,540,000,000 for Q3 2025, an increase of over 7% in constant currency and reported dollars, exceeding the midpoint of July guidance by $25,000,000 [5][12] - Adjusted EPS was $2.4 per share, $0.12 above the midpoint of July guidance, reflecting stronger revenue growth and solid operating leverage [9][12] - Adjusted EBITDA margins were 32.7%, up 20 basis points sequentially [9] Business Line Data and Key Metrics Changes - USIS mortgage revenue increased by 26% in Q3, driven by stronger market volumes and lower mortgage rates [23][56] - EWS revenue grew by 5%, with government performance driving growth [10][13] - International revenue was up 7% in constant currency, with Canada showing strong growth of 11% [29] Market Data and Key Metrics Changes - Mortgage hard credit inquiries were down about 7%, better than expectations of a decline over 12% [6][12] - Total U.S. mortgage revenue accounted for 21% of Equifax's total revenue in the quarter [8] - The mortgage market decline, as measured by hard credit inquiries, was a nearly 150 basis point drag on revenue growth [44] Company Strategy and Development Direction - Equifax is focusing on leveraging its new cloud capabilities and efx.ai to drive innovation and new product development [32][57] - The company is expanding its VantageScore offerings in response to FICO's price increases, aiming to drive competition in the mortgage credit scoring market [25][28] - The strategy includes enhancing partnerships and developing new solutions to address government program integrity and improper payments [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term mortgage activity improvement as inflation stabilizes and rates decrease [7][12] - The company anticipates continued strong performance in the fourth quarter and is raising full-year guidance for revenue and adjusted EPS [12][56] - Management highlighted the positive momentum from government engagements post-OB3 legislation, expecting significant growth opportunities in 2026 and beyond [19][21] Other Important Information - Equifax incurred a restructuring charge of approximately $44,000,000 for cost reduction actions, expected to yield annual savings of about $30,000,000 starting in late 2026 [4] - The company returned about $360,000,000 to shareholders in Q3 through share repurchases and dividends [56] Q&A Session Summary Question: Can you go into more detail on the mortgage pricing changes? - Management noted a groundswell of attention regarding FICO's price increase and the competitive response from Equifax, indicating active conversations with customers about VantageScore [60][62] Question: Can you elaborate on the margin guidance? - Management explained that the reduction in margin guidance is primarily due to increased variable compensation linked to stronger performance and a higher mix of mortgage revenue impacting gross margins [63][66] Question: What is the expected ramp-up in government discussions post-OB3? - Management indicated a mix of both immediate engagement and longer-term revenue opportunities, with states likely to start using solutions ahead of the fiscal year-end [68][70] Question: What is driving the increase in general corporate expenses? - The increase is attributed to higher variable compensation resulting from stronger performance and revenue growth [72][74] Question: What factors explain the difference in mortgage growth between USIS and EWS? - The disparity is largely due to the timing of mortgage activity benefits, with USIS seeing earlier benefits from lower rates compared to EWS [77][78]

Financial Data and Key Metrics Changes - Equifax reported revenue of $1.54 billion, an increase of 8% in constant currency and 7% reported, marking the highest quarterly revenue in the company's history [7] - Adjusted EPS was $2.00, exceeding the midpoint of guidance by $0.10, with an adjusted EBITDA margin of 32.5% [9][12] - Free cash flow for Q2 was $239 million, up over $100 million from the previous year, with expectations to generate over $900 million in free cash flow for 2025 [43] Business Line Data and Key Metrics Changes - Workforce Solutions revenue grew by 8%, driven by a 10% increase in verifier revenue and a 14% increase in government revenue [13] - USIS revenue increased by 9%, with mortgage revenue up 20% and non-mortgage revenue growth of over 4% [10][21] - International revenue grew by 6% in constant currency, with strong growth in Latin America and Europe [25] Market Data and Key Metrics Changes - Mortgage hard credit inquiries declined by 8.5%, with expectations for a further decline of over 13% in the second half of 2025 [29][32] - The U.S. hiring market remains weak, impacting overall revenue growth in talent solutions [14][33] - Economic uncertainty continues to affect hiring trends and mortgage volumes, with corporate expenses expected to rise due to litigation costs [36][37] Company Strategy and Development Direction - Equifax is focusing on leveraging cloud capabilities to drive innovation and new product development, with a vitality index of 14% indicating strong new product introductions [26][49] - The company is increasing its vitality outlook for 2025 from 11% to 12%, reflecting confidence in future growth [12] - A new capital allocation framework includes a $3 billion share repurchase program and a 28% increase in quarterly dividends [43] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding economic uncertainties, inflation, and interest rates, holding full-year guidance steady despite strong first-half performance [12][48] - The company anticipates continued challenges in the mortgage market but sees potential for growth in government services due to new federal requirements [19][72] - Management remains optimistic about long-term growth, projecting organic revenue growth of 7% to 10% and a focus on multi-data solutions [45][49] Other Important Information - The company repurchased $127 million in shares during the quarter as part of its share repurchase program [12] - Adjusted EBITDA margins are expected to be flat year-over-year, impacted by higher corporate costs and litigation expenses [37][84] Q&A Session Summary Question: Can you provide perspective on the Twin State agency headwinds? - Management indicated that challenges stem from changes in federal data reimbursement policies and state budget complexities, affecting near-term performance [51][54] Question: What are the new mortgage pre-qual products driving strength? - The Twin Indicator product is gaining traction, helping to win market share in pre-qualification and pre-approval stages [55][58] Question: What is mortgage revenue as a percentage of total revenues in Q2? - Mortgage revenue accounted for 22% of total revenues, remaining flat [63] Question: What visibility exists for the government business in the second half? - Management noted that visibility is challenging due to state budget constraints and the impact of prior federal policy changes, but remains optimistic for future growth [67][72] Question: Can you elaborate on the litigation costs? - Litigation costs are driven by both general legal expenses and an increase in small claims, which are expected to continue into 2026 [86]

Financial Data and Key Metrics Changes - Equifax reported revenue of $1.54 billion, an increase of 8% in constant currency and 7% reported, marking the highest quarterly revenue in the company's history [5][10] - Adjusted EPS was $2.00, exceeding the midpoint of April guidance by $0.10, with an adjusted EBITDA margin of 32.5% [7][10] - Free cash flow for Q2 was $239 million, up over $100 million from the previous year, with expectations to generate over $900 million in free cash flow for 2025 [43][44] Business Line Data and Key Metrics Changes - Workforce Solutions revenue increased by 8%, driven by a 10% growth in verifier revenue and a 14% increase in government revenue [11][12] - USIS revenue grew by 9%, with mortgage revenue up 20% and non-mortgage revenue up over 4% [8][19] - International revenue saw a 6% increase in constant currency, with strong growth in Latin America and Europe [22][24] Market Data and Key Metrics Changes - Mortgage hard credit inquiries declined by 8.5% year-over-year, impacting home purchase and refinance activity [28][29] - The U.S. hiring market remained weak, with overall BLS data showing only slight increases compared to last year [12][30] - International growth was led by Latin America, with an 11% increase, while Canada experienced only 1% growth due to economic conditions [22][24] Company Strategy and Development Direction - The company is focusing on leveraging cloud capabilities and multi-data solutions to drive innovation and growth [25][50] - Equifax is increasing its vitality outlook for 2025 from 11% to 12%, indicating strong performance in new product introductions [10][25] - The company is committed to expanding its government business in response to new federal programs and verification requirements [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding economic uncertainties, inflation, and hiring trends, holding full-year guidance steady despite strong first-half performance [10][30] - The company anticipates continued challenges in the mortgage market but sees potential for growth as interest rates decline [28][29] - Management remains optimistic about long-term growth, projecting a 7% to 10% organic growth framework [45][48] Other Important Information - The company repurchased $127 million in shares under a $3 billion share repurchase program [10][43] - Corporate expenses increased to $152 million, primarily due to higher litigation costs [35][90] - The company is investing in new solutions that combine traditional and alternative credit data to enhance its offerings [50][26] Q&A Session Summary Question: Can you provide perspective on the Twin State agency headwinds? - Management indicated that challenges stem from changes made by the Biden administration regarding data reimbursements, affecting state budgets and contract timing [52][53] Question: What are the new mortgage pre-qual products driving strength? - The Twin Indicator product has been positively received in the market, helping to gain share in pre-qualification stages [55][56] Question: What is mortgage revenue as a percentage of total revenues in Q2? - Mortgage revenue accounted for 22% of total revenues [63] Question: What is the visibility and assumptions for the government business in the second half? - Management noted that visibility is challenging due to state budget constraints and the impact of prior administration policies [66][70] Question: Can you elaborate on the trends in the talent segment? - The talent market has shown weakness, impacting revenue guidance, with specific challenges in criminal data services due to shifts in customer relationships [72][90]