Equifax Inc. Q4 FY2025 earnings call

• 2025 was a strong year with revenue of $6.075 billion, EPS of $7.65, and free cash flow of $1.025 billion, above guidance. • AI investment and new product innovation, like the Twin Indicator in mortgage, auto, and card markets. • Cloud transformation providing competitive advantages and driving operational efficiencies. • EWS acquired Vault Verify and returned significant cash to shareholders. • USIS saw strong mortgage revenue growth and margin expansion, while International made progress on cloud completion.

Workforce Solutions (EWS) had Q4 revenue up 9% and EBITDA margins of 51.3%. Diversified markets revenue growth was 11%. Mortgage revenue in EWS was up about 10% in Q4, with Twin active records up 11% to 209 million. USIS had Q4 revenue up 12%, EBITDA margins 30.3%, with mortgage revenue up 33%. International had constant currency revenue growth of 5% and EBITDA margins of 31.6%.

• 2026 total revenue midpoint expected to be up ~10.6% reported and 10% constant currency. • EPS midpoint $8.50, up 11%. • EBITDA midpoint ~$2.122 billion, up ~10%. • Free cash flow over $1 billion, cash conversion at least 100%. • 1Q 2026 revenue midpoint ~$1.612 billion, EPS $1.68. • Excluding FICO mortgage royalties, revenue growth mid-single digits, EBITDA margins expand 75 basis points.

• Uncertainty around FHFA acceptance of VantageScore for mortgage originations. • Economic weakness in key international markets like Canada and the UK. • Impact of FICO score pass-through on reported EBITDA margins.

Q: Jeff Meuler on AI applicability to employment and income business A: Mark Begor on data moat and AI use in workforce solutions, emphasizing proprietary data and AI deployment for productivity Q: Toni Kaplan on government vertical momentum A: Mark Begor on government opportunities with OB3, momentum from new solutions and state engagement Q: Andrew Steinerman on proprietary data use by sophisticated clients A: Mark Begor on clients consuming more proprietary data due to scale and uniqueness Q: Toni Kaplan on FICO and VantageScore adoption hurdles A: Mark Begor on FHFA approval uncertainty and industry interest in VantageScore Q: Jason Haas on talent business strength A: John Gamble on talent business driven by twin data, education, and incarceration products Q: Kelsey Xu on TriMerge resellers and FICO direct program A: Mark Begor on agnosticism to score calculation source and guidance assumptions