Revenue Performance - Fourth quarter 2025 revenue reached $1.551 billion, a 9% increase, exceeding guidance by $30 million[1] - U.S. Mortgage revenue grew by 20% in Q4 2025, despite a decline in the overall mortgage market[3] - Workforce Solutions revenue increased by 9%, with Verification Services up 10% and Diversified Markets up 11%[3] - USIS revenue rose by 12%, driven by a 33% increase in Mortgage revenue and 5% growth in Diversified Markets[3] - International revenue grew by 5% in local currency, led by Latin America[3] - Total operating revenue for 2025 reached $6,074.5 million, reflecting a 7% increase from $5,681.1 million in 2024[33] - Total U.S. Information Solutions revenue grew by 10% to $2,078.5 million in 2025, compared to $1,893.0 million in 2024[33] - The company reported a 10% organic local currency revenue growth in the U.S. Information Solutions segment for 2025[34] - Total international revenue increased by 4% to $1,413.7 million in 2025, compared to $1,354.3 million in 2024[33] Financial Metrics - Free cash flow for 2025 was $1.13 billion, a nearly 40% increase from the previous year[2] - Consolidated net income attributable to Equifax for Q4 2025 was $175.8 million, compared to $174.0 million in Q4 2024, a slight increase of 1.0%[27] - Basic earnings per share for Q4 2025 was $1.45, up from $1.40 in Q4 2024, representing a 3.6% increase[27] - Net income attributable to Equifax for the full year 2025 was $660.3 million, an increase of 9.3% from $604.1 million in 2024[28] - Basic earnings per share for the full year 2025 was $5.36, up from $4.88 in 2024, indicating a 9.8% increase[28] - Adjusted net income attributable to Equifax for 2025 was $949.2 million, a 4% increase from $910.1 million in 2024[36] - Operating income for the year ended December 31, 2025, was $1,095.2 million, compared to $1,095.2 million in 2024, indicating stable performance despite challenges[43] Expenses and Costs - Total operating expenses for Q4 2025 were $1,266.4 million, up from $1,131.3 million in Q4 2024, reflecting a 11.9% increase[27] - Total operating expenses for the full year 2025 were $4,979.3 million, compared to $4,639.0 million in 2024, marking a 7.3% increase[28] - The company recorded acquisition-related amortization expense of $250.2 million for the year ended December 31, 2025, compared to $261.1 million in 2024[37] - Restructuring charges for the year ended December 31, 2025, amounted to $49.9 million, primarily related to resource realignment[37] - The company incurred $35.0 million in acquisition-related costs other than amortization for the year ended December 31, 2025, down 49% from $68.4 million in 2024[40] - A legal settlement charge of $30.0 million was recorded in Q4 2025, a 100% increase from $15.0 million in Q4 2024[40] Shareholder Returns - The company returned $561 million to shareholders in Q4 2025, including $500 million for share repurchases[2] - The company paid dividends of $232.8 million to shareholders in 2025, an increase from $193.2 million in 2024[30] Future Outlook - Full-year 2026 revenue guidance is set at $6.72 billion, reflecting a 10.5% increase, with Adjusted EPS expected to be $8.50 per share[4] - The company is focusing on growth and innovation through new Cloud capabilities and EFX.AI to drive future revenue[5] Operational Efficiency - The Vitality Index reached a record 17% in Q4 2025, surpassing the long-term goal of 10%[3] - Adjusted EBITDA for the year ended December 31, 2025, was $1,935.3 million, reflecting a 5% increase from $1,836.1 million in 2024[40] - The adjusted EBITDA margin for the year ended December 31, 2025, was 31.9%, slightly down from 32.3% in 2024[40] - Adjusted EBITDA for Q4 2025 was $508.2 million, with an adjusted EBITDA margin of 32.8%, compared to $501.9 million and a margin of 35.4% in Q4 2024[43][44] - Adjusted EBITDA for the U.S. Information segment was $334.5 million in Q4 2025, with an adjusted EBITDA margin of 51.3%, reflecting strong operational efficiency[43] Asset and Liability Overview - Total assets as of December 31, 2025, were $11,864.2 million, compared to $11,759.4 million as of December 31, 2024, reflecting a 0.9% increase[29] - Total liabilities as of December 31, 2025, were $7,126.0 million, an increase from $6,839.8 million in 2024, representing a 4.2% rise[29] Legal and Regulatory Matters - Legal and regulatory accruals related to the 2017 cybersecurity incident were $1.0 million for the year ended December 31, 2025[47] - Antitrust litigation costs for Q4 2025 amounted to $1.2 million ($0.9 million, net of tax) and $5.4 million ($4.1 million, net of tax) for the full year 2025[58]

Core Insights - Equifax reported strong financial results for Q4 2025, with revenue of $1.551 billion, reflecting a 9% increase year-over-year, driven by significant growth in U.S. Mortgage and Workforce Solutions segments [2][6][8] Financial Performance - Q4 2025 revenue was $1,550.6 million, a 9% increase compared to Q4 2024, with diluted EPS rising to $1.44 from $1.39 [6][7] - For the full year 2025, revenue reached $6,074.5 million, a 7% increase from 2024, with net income attributable to Equifax at $660.3 million, up 9% [8][27] - The company returned $561 million to shareholders in Q4 2025, including $500 million in share repurchases [3][5] Segment Performance - U.S. Mortgage revenue grew by 20% in Q4 2025, while Workforce Solutions revenue increased by 9%, driven by a 10% rise in Verification Services [2][5] - USIS (U.S. Information Solutions) reported a 12% revenue growth, with Mortgage revenue up 33% and Diversified Markets up 5% [5][10] - International revenue grew by 7% on a reported basis, with Latin America leading at 8% growth [5][10] Guidance and Future Outlook - The company issued guidance for full-year 2026, projecting revenue of $6.72 billion, a 10.5% increase, and Adjusted EPS of $8.50, up 11% from 2025 [4][14] - The guidance assumes a low single-digit decline in the U.S. Mortgage market and a shift to FICO scores for mortgage credit scoring [4][14] Strategic Initiatives - Equifax is focusing on leveraging cloud capabilities to drive new product innovation and growth, with a Vitality Index of 17% in Q4 2025, exceeding the long-term goal of 10% [5][6] - The company aims to enhance margins and free cash flow while continuing to invest in growth and return cash to shareholders [3][5]

Group 1 - Equifax Inc. is identified as one of the best 52-week low stocks to invest in, with a Buy rating from Morgan Stanley and a price target of $269, and a similar Buy rating from RBC Capital with a price target of $250 [1][2] - Analyst Ashish Sabadra from RBC Capital sees long-term buying opportunities for credit bureau stocks despite regulatory concerns, noting that the fundamentals of the sector remain strong through 2026 [2][3] - RBC Capital projects Equifax to achieve 6% to 8% revenue growth and 8% to 11% adjusted EBITDA growth in 2026, supported by strong mortgage inquiries and steady lending [3] Group 2 - Equifax Inc. operates as a global data, analytics, and technology company, primarily providing credit reporting, identity management, and workforce verification services [4]

Core Viewpoint - Equifax Inc. is identified as a strong investment opportunity despite regulatory pressures, with analysts maintaining positive ratings and price targets for the stock [1][2]. Company Overview - Equifax Inc. is a global data, analytics, and technology company that primarily provides credit reporting, identity management, and workforce verification services [4]. Analyst Ratings and Price Targets - Toni Kaplan from Morgan Stanley reiterated a Buy rating on Equifax with a price target of $269 [1]. - Ashish Sabadra from RBC Capital also reiterated a Buy rating with a price target of $250 [1]. Market Conditions and Growth Projections - Analyst Sabadra sees long-term buying opportunities for credit bureau stocks despite short-term pressures from regulatory concerns [2]. - The fundamentals of the sector are expected to remain strong through 2026, with Equifax projected to achieve 6% to 8% revenue growth and 8% to 11% adjusted EBITDA growth [3]. Regulatory Environment - The company faces short-term stock pressure due to regulatory changes, including the Federal Housing Finance Agency's shift to bi-merge credit reports and the Credit Card Competition Act [2]. - Despite these challenges, there are identified tailwinds such as OBBA, deregulation, lower rates, and modest mortgage recovery that could benefit the sector [3].

Core Insights - Equifax has launched Employment Insights solutions specifically for auto dealers, integrating employment and earnings data with consumer credit reports [1][2] Product Overview - The Employment Insights suite consists of two components: one for prequalification and another for the financing stage [2][4] - The prequalification component provides key metrics such as yearly income, job status, and employment length, aiding in accurate debt-to-income and payment-to-income calculations [3] - The financing component verifies income and employment details alongside identity checks, ensuring accurate information for loan applications [4][5] Benefits to Stakeholders - Dealers can customize vehicle recommendations and promotional offers based on a buyer's actual financial capacity, enhancing the sales experience [4] - The integration of verified data reduces discrepancies, leading to a more secure closing process and lower likelihood of loan buybacks [5][8] - Auto lenders gain confidence in applicant data, reducing exposure to fraud and errors, while consumers experience smoother transactions without repeated documentation requests [8] Industry Context - The launch reflects Equifax's commitment to leveraging data solutions to address challenges in credit and lending, particularly in the evolving auto industry [9][10] - As vehicle buyers become more cost-conscious, the urgency for efficient financing solutions increases, making tools like Employment Insights critical for maintaining competitive advantage [7][10]

Key Takeaways EFX is set to report 4Q25 results on Feb. 4, with revenues estimated at $1.5B, suggesting 7.8% y/y growth.EFX segments are expected to grow, aided by government revenues, OB3 momentum and a mortgage rebound.EFX EPS is expected at $2.05, implying a 3.3% y/y dip; adjusted EBITDA is likely to rise across key segments.Equifax (EFX) is scheduled to report fourth-quarter 2025 results on Feb. 4, before market open.EFX has a decent earnings surprise history. It has outperformed the Zacks Consensus Est ...

Core Insights - Equifax has launched a new predictive model called Credit Abuse Risk to help lenders combat the rising financial impact of first-party fraud [1] - The model identifies atypical patterns indicative of loan stacking and credit washing, allowing lenders to make informed lending decisions [1] Product Features - Actionable intelligence enables real-time, FCRA-compliant decisions on credit terms, including adverse action reason codes [1] - Comprehensive portfolio protection offers insights across all credit tiers, enhancing risk assessment [1] - Targeted decisioning addresses the lifecycle of fraud without compromising consumer protections [1] - Enhanced insights focus on behavioral indicators to reveal atypical credit activity [1] Strategic Importance - Credit Abuse Risk is part of Equifax's layered fraud defense strategy, complementing existing tools like Synthetic Identity Risk to provide a holistic view of identity legitimacy [1] - The model supports a more confident lending environment, helping to maintain credit availability for consumers [1]

Core Viewpoint - The article compares Hackett Group (HCKT) and Equifax (EFX) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Hackett Group has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Equifax, which has a Zacks Rank of 4 (Sell) [3] - HCKT has likely experienced a stronger improvement in its earnings outlook than EFX recently [3] Group 2: Valuation Metrics - HCKT has a forward P/E ratio of 10.83, significantly lower than EFX's forward P/E of 23.71 [5] - HCKT's PEG ratio is 0.98, while EFX's PEG ratio is 2.08, indicating HCKT is more favorably valued in terms of expected earnings growth [5] - HCKT has a P/B ratio of 5.04, slightly lower than EFX's P/B of 5.07, suggesting comparable valuation in terms of book value [6] Group 3: Value Grades - Based on various valuation metrics, HCKT holds a Value grade of A, while EFX has a Value grade of C, indicating HCKT is viewed as more undervalued [6] - HCKT's stronger estimate revision activity and more attractive valuation metrics suggest it is the superior option for value investors at this time [7]

Core Insights - Equifax has launched two new Employment Insights solutions aimed at enhancing the financial profile of buyers during the auto loan prequalification and financing processes [1][2] Group 1: Employment Insights Solutions - The Employment Insights solutions provide verified employment and income data from The Work Number, allowing auto dealers to make data-driven decisions rather than relying on self-reported information [2][3] - These solutions are designed to streamline the auto dealer workflow at two critical stages: prequalification and financing [2] Group 2: Benefits for Auto Dealers - The Employment Insights for Prequalification helps dealers assess a buyer's purchasing power before a full credit application, including total annual income and employment record [4] - The Employment Insights for Financing assists dealers in validating application information and reducing buyback risk by combining verified income and employment data with identity validation [4][6] Group 3: Market Context - The current market shows that car shoppers are increasingly price-sensitive, making timely access to reliable information crucial for closing sales [3] - The new solutions enable dealers to tailor sales experiences and customize offers based on verified consumer employment status and ability to pay [6]

Core Insights - Equifax has launched a new product called Income Confirm, which integrates employment and income data with credit reports to enhance lenders' decision-making during credit card origination [2][4]. Group 1: Product Offering - Income Confirm combines data from The Work Number database with Equifax Consumer Credit Reports, providing lenders with verified employment and income information [2]. - The product includes details such as employee name, Social Security Number, current or most recent employer, current employment status, and calculated annual income [3]. Group 2: Benefits for Lenders - The new offering aims to improve lenders' confidence in decision-making by allowing them to base decisions on factual data rather than estimates, optimizing initial credit lines according to the consumer's actual ability to pay [4]. - This product is expected to facilitate a smoother application process and enhance early engagement and spending from new cardholders [4]. Group 3: Strategic Developments - Equifax has enhanced The Work Number database by acquiring Vault Verify, which provides additional employment and income verification services, thereby improving the data available to verifiers [4]. - The company has also introduced Equifax Ignite AI Advisor, a generative AI solution that helps lenders analyze portfolio performance and identify growth opportunities through conversational data insights [5]. Group 4: Market Demand - The CEO of Equifax noted an increase in demand for verification services in consumer lending and the government sector, particularly as states implement stricter verification requirements [6].