TransUnion Q1 FY2026 earnings call

Started the year very strong, exceeding first quarter guidance for revenue, adjusted EBITDA and adjusted diluted earnings per share. Ninth straight quarter of at least high single-digit organic constant currency revenue growth. Completed 2 acquisitions: TU to Mexico extends global playbook and RealNetworks Mobile division adds complementary messaging capabilities. AI is accelerating innovation, driving higher data usage among clients. Strong sales quarter, underscoring sustained demand and commercial momentum for credit marketing and fraud solutions. Anticipate strongest ever cohort of new product launches and major enhancements in 2026, with investments in global AI-enabled platforms for cost efficiency and operating leverage.

U.S. markets grew 14% on an organic constant currency basis. Financial Services led the way with 24% growth (14% excluding FICO mortgage royalties). Excluding FICO mortgage royalties, revenue grew 7%. U.S. nonmortgage lending remained healthy. Emerging verticals grew more than 6%, led by insurance and public sector. International revenue was flat organically as expected; Canada and the U.K. grew high single digits, Africa grew 10%, and India declined mid-single digit but expected to improve. Adjusted EBITDA increased 10%, with a margin of 35.2%, down 100 basis points year-over-year.

Maintaining full year organic constant currency guidance with revenue growth of 8% to 9%. Second quarter revenue guided to be between $1.271 billion to $1.283 billion, up 12% to 13%. Full year revenue expected to be between $5.1 billion and $5.135 billion, up 11% to 12%. Adjusted EBITDA for second quarter guided to $439 million to $445 million, up 8% to 9%, and for full year 2026 to $1.796 billion to $1.816 billion, up 9% to 10%. Adjusted diluted earnings per share guidance provided for second quarter and full year 2026.

Conflict in Iran added uncertainty about inflation, interest rates and potential impact on consumers. Potential market softening within guidance range could be absorbed, but geopolitical risk and market dynamics need monitoring. Impact of rising energy prices on international markets, particularly in some regions like the Philippines.

Q: Toni Kaplan asked about pricing in the credit bureau industry; A: Christopher Cartwright discussed Tri-Merge being the gold standard.

Q: Andrew Steinerman asked about India's revenue growth; A: Christopher Cartwright talked about India's stabilization and mid-single-digit growth expectation.

Q: Andrew Nicholas asked about AI adoption pace; A: Christopher Cartwright discussed early innings of AI adoption and productivity improvements.

Q: Jeff Mueler asked about VantageScore pricing guidelines; A: Christopher Cartwright provided insights on FHFA and LLPAs.

Q: Faiza Alwy asked about noncredit products contribution and market softening; A: Christopher Cartwright and Todd Cello discussed noncredit product performance and market softening absorption.

Q: Manav Patnaik asked about market softening parameters; A: Todd Cello talked about guidance and volume trend implications.

Q: Ashish Sabadra asked about Iran conflict impact on international markets; A: Christopher Cartwright discussed energy price impact on international markets.

Q: Kelsey Zhu asked about VantageScore pricing model; A: Christopher Cartwright talked about VantageScore pricing and transition.

Q: Jason Haas asked about mortgage strength drivers; A: Todd Cello discussed mortgage volume and interest rate impact.

Q: Scott Wurtzel asked about TCS growth and trusted messaging timeline; A: Christopher Cartwright and Todd Cello talked about TCS growth and trusted messaging productization timeline