Core Insights - TransUnion reported strong financial results for Q4 and full-year 2025, exceeding financial guidance with a revenue growth of 13% for the quarter and 9% for the year [2][4][9]. Financial Performance - Q4 2025 total revenue was $1,171 million, a 13% increase compared to Q4 2024 [2]. - Full-year 2025 revenue reached $4,576 million, reflecting a 9% increase from 2024 [9]. - Adjusted EBITDA for Q4 2025 was $417 million, a 10% increase from the same quarter in 2024 [7]. - Net income attributable to TransUnion for Q4 2025 was $101 million, up from $66 million in Q4 2024, with diluted earnings per share increasing to $0.52 from $0.34 [7][29]. Segment Performance - U.S. Markets revenue totaled $918.9 million in Q4 2025, growing 16% year-over-year, driven by Financial Services (19% growth) and Emerging Verticals (16% growth) [5][8]. - International revenue was $255.9 million, a 4% increase, with notable growth in the United Kingdom (22%) and Canada (13%), while Latin America and India experienced declines [8]. Shareholder Returns and Capital Management - The company repurchased approximately $150 million of shares in Q4 2025, totaling $300 million for the year [6]. - TransUnion raised its quarterly dividend to $0.125 per share from $0.115, effective Q4 2025 [6][13]. 2026 Outlook - The company anticipates revenue growth of 8% to 9% and adjusted diluted EPS growth of 8% to 10% for 2026, supported by stable trends and innovation [4][15]. - Initial guidance for Q1 2026 includes revenue expectations between $1,195 million and $1,205 million, reflecting a growth rate of 9% to 10% [16].

Revenue Performance - Total revenue for Q4 2025 was $1,171 million, a 13% increase compared to Q4 2024[4] - Full-year 2025 revenue reached $4,576 million, a 9% increase compared to 2024[10] - Total revenue for the year ended December 31, 2025, was $4,576.3 million, an increase of 9.4% from $4,183.8 million in 2024[30] - Total gross revenue for the year 2025 reached $4,589.7 million, representing a 9.7% increase from $4,196.3 million in 2024[52] - U.S. Markets gross revenue increased to $918.9 million in Q4 2025, up 15.9% from $792.0 million in Q4 2024[52] Profitability Metrics - Adjusted EBITDA for Q4 2025 was $417 million, a 10% increase compared to Q4 2024, with an adjusted EBITDA margin of 35.6%[8] - Operating income for the year ended December 31, 2025, was $857.8 million, up 28.7% from $666.7 million in 2024[30] - Net income attributable to TransUnion for Q4 2025 was $101 million, compared to $66 million in Q4 2024, with diluted earnings per share of $0.52[8] - Net income attributable to TransUnion for the year ended December 31, 2025, was $455.4 million, representing a 60.1% increase from $284.4 million in 2024[30] - Adjusted net income for the year 2025 was $845.7 million, compared to $768.8 million in 2024, reflecting a 10% increase[56] Cash and Liquidity - Cash and cash equivalents were $854 million at the end of 2025, up from $679 million at the end of 2024[12] - Cash provided by operating activities for the year ended December 31, 2025, was $987.6 million, an increase from $832.5 million in 2024[32] - The company’s cash and cash equivalents increased to $853.6 million as of December 31, 2025, from $679.5 million in 2024[32] Debt and Capital Structure - The company repurchased approximately $150 million of shares in Q4 2025, totaling $300 million for the year[7] - Total debt as of December 31, 2025, was $5,103.8 million, slightly decreased from $5,147.2 million in 2024[62] - The company’s long-term debt as of December 31, 2025, was $4,906.9 million, a decrease from $5,076.6 million in 2024[28] - The Leverage Ratio improved to 2.6 in 2025 from 3.0 in 2024, indicating a stronger financial position[62] Future Guidance - For 2026, the company expects revenue growth of 8% to 9% and adjusted diluted EPS growth of 8% to 10%[6] - Net income attributable to TransUnion for 2026 is guided to be between $538 million and $553 million, with a margin of 10.9% to 11.1%[68] - Diluted earnings per share for 2026 is expected to be between $2.75 and $2.83, with adjusted diluted earnings per share projected at $4.63 to $4.71[68] Technology and Innovation - The company plans to share updates on technology modernization and product innovation at the Investor Day on March 10, 2026[6] - The accelerated technology investment, including Project Rise, is expected to enhance cloud-based technology and streamline product delivery platforms, with completion anticipated by 2024[40] - The company invested $19.1 million in accelerated technology initiatives in Q4 2025, down from $25.6 million in Q4 2024[53] Tax and Regulatory - Adjusted Provision for Income Taxes for the year 2025 was $(309.9) million, compared to $(247.6) million in 2024, reflecting an increase in tax adjustments[59] - The effective tax rate for 2025 was 26.9%, an increase from 24.6% in 2024[59] Other Financial Metrics - Basic earnings per share for the year ended December 31, 2025, was $2.34, compared to $1.46 in 2024, reflecting a 60.3% increase[30] - Total accelerated technology investment for 2025 is $84.5 million, slightly up from $84.2 million in 2024[64] - Total depreciation and amortization for 2025 reached $574.8 million, an increase from $537.8 million in 2024[66]

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]

Core Viewpoint - The market anticipates TransUnion (TRU) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - TransUnion is expected to post quarterly earnings of $1.03 per share, reflecting a year-over-year increase of +6.2% [3]. - Revenues are projected to reach $1.14 billion, marking a 9.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.47% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for TransUnion is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.61%, suggesting a bullish outlook from analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [9]. Historical Performance - TransUnion has consistently beaten consensus EPS estimates, achieving this in the last four quarters [13]. - In the last reported quarter, TransUnion exceeded expectations by delivering earnings of $1.10 per share against an expected $1.04, resulting in a surprise of +5.77% [12]. Conclusion - TransUnion is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors beyond earnings results when making investment decisions [16].

Core Insights - Affordability is a significant concern for both auto lenders and dealers, impacting consumer participation in the market [2] - 2026 vehicle sales are projected to decline due to higher prices and economic uncertainty [2] Vehicle Financing Trends - Average monthly payments for new-vehicle loans reached $785 in Q4 2025, marking a 3.7% increase from the previous year [3] - The average amount financed for new-vehicle loans was $44,650 in Q4 2025, up 5.3% year-over-year [4][6] - Average used-vehicle payments were $541 for loans originated in Q4 2025, reflecting a 3.6% increase from the prior year [5] Credit Market Conditions - Overall delinquencies in the auto loan market appear manageable by historical standards, with good access to credit for most new-vehicle shoppers [6] - Despite a low share of loans to subprime borrowers, losses and potential losses on subprime loans are increasing due to rising delinquencies [7]

Core Insights - Consumer intent to purchase vehicles remains strong for 2026, with 39% of U.S. adults planning to buy a car, indicating high priority for vehicle purchases [1][2][3] Consumer Intent and Trends - More than 80% of consumers intending to buy a vehicle expect to do so within the next 12 months, with 65% planning to trade in their current vehicle, supporting the used car market [2][3] - Among those planning a vehicle transaction, 87% intend to buy and 13% intend to lease, with younger generations showing a greater interest in leasing [3] Market Dynamics - Auto loan originations began to rise in 2025, driven by anticipation of tariffs and the end of the EV tax credit, with super prime and subprime segments leading this growth despite affordability challenges [4] - Affordability remains a significant obstacle, with 53% of consumers citing cost concerns and 44% citing economic uncertainty [5] Vehicle Preferences - Half of prospective buyers intend to purchase traditional gas-powered vehicles, while 33% prefer hybrids and 16% prefer electric vehicles (EVs), with Millennials showing a slight preference for hybrids [6] - Consumers interested in EVs cite lower fuel costs (72%), environmental benefits (66%), and new technology features (62%) as key reasons for their interest [7] Challenges to EV Adoption - Internal combustion powertrains dominate due to affordability and charging infrastructure challenges, with Millennials increasingly interested in hybrids and Gen Z leaning towards traditional gas vehicles [8]

Core Viewpoint - TransUnion is set to enhance its communications solutions and fraud prevention capabilities through the acquisition of RealNetworks' mobile division, expected to close in the first half of the year, pending regulatory approvals [2][4]. Group 1: Acquisition Details - The acquisition will strengthen TransUnion's portfolio in communications solutions and expand its fraud prevention capabilities [2]. - TransUnion has signed a definitive agreement for the acquisition, which is anticipated to close in the first half of the year, subject to customary closing conditions and regulatory approvals [2]. - The mobile division of RealNetworks provides solutions for identifying fraudulent messages and calls, enabling secure branded calls, and detecting synthetic and cloned voices during calls [5]. Group 2: Technological Advancements - The acquisition will bring advanced artificial intelligence (AI) and machine learning (ML) technologies to TransUnion, along with real-time analytics of text, multimedia messages, and phone calls [4]. - TransUnion aims to revolutionize inbound and outbound communications, enhancing consumer experiences and reducing fraud risk through the integration of RealNetworks' platform [5]. Group 3: Strategic Growth Initiatives - TransUnion has previously expanded its operations beyond core credit services into marketing, fraud, risk, and advanced analytics through earlier acquisitions and technology investments [3]. - In January 2025, TransUnion announced plans to acquire Trans Union de Mexico to strengthen its presence in Mexico and enhance global consumer protection [6]. - Additionally, in January 2025, TransUnion planned to acquire Monevo, a British credit prequalification/distribution platform, to facilitate secure transactions for consumers and organizations [7].

Core Viewpoint - TransUnion has signed a definitive agreement to acquire the mobile division of RealNetworks, aiming to enhance mobile communications safety and reliability for businesses and consumers [1][2] Group 1: Acquisition Details - The acquisition is expected to augment TransUnion's capabilities with advanced AI and machine learning technologies, as well as real-time analytics of text, multimedia messages, and phone calls to reduce fraud [1][2] - The transaction is anticipated to close in the first half of 2026, pending customary closing conditions and regulatory approvals [5] Group 2: Fraud Prevention and Communication Solutions - Mobile phone fraud exceeds $80 billion annually worldwide, and TransUnion's solutions are designed to protect businesses and consumers while restoring trust in phone communications [2] - The integration of RealNetworks' technology is expected to enhance TransUnion's voice channel capabilities and extend its fraud prevention measures to messaging [2][3] - TransUnion's Trusted Call Solutions are designed to help businesses reach more customers by adding verified brand information and blocking fraudulent calls [3] Group 3: Strategic Benefits - The acquisition is expected to strengthen TransUnion's competitive position in the communications solutions market and open new revenue opportunities [4] - RealNetworks' mobile division is anticipated to bring strategic relationships and network integration experience with leading telecom service providers worldwide [2][4]

Economic Overview - The U.S. services sector continued its expansion in December 2025, with the Services PMI at 54.4%, marking the highest reading of the year and the 10th month of expansion [1] - Real GDP increased at an annual rate of 4.4% during July-September, up from 3.8% in the previous quarter, indicating economic resilience amid inflationary pressures and trade policy uncertainty [2] Services Sector Performance - The services sector's performance reflects the U.S. economy's adaptability, driven by sustained consumer demand across various industries, including transportation, retail, finance, and healthcare [3] - However, certain segments like construction and professional services showed relative weakness, indicating disparities within the sector [3][4] Earnings Outlook - Several service providers are expected to report earnings soon, with Gartner, Coherent, Exponent, and TransUnion identified as stocks likely to beat earnings estimates this season [4] - Gartner's revenue estimate is $1.74 billion, reflecting a 1.7% year-over-year growth, while earnings are expected at $3.50 per share, a decline of 35.8% from the previous year [9] - Coherent's revenue estimate is $1.63 billion, indicating a 13.9% year-over-year growth, with earnings expected at $1.22 per share, a 28.4% increase [10][11] - Exponent's revenue estimate is $128.3 million, showing a 3.6% growth, with earnings expected at 47 cents per share, a 2.1% increase [12][13] - TransUnion's revenue estimate is $1.1 billion, indicating a 9.6% increase, with earnings expected at $1.03 per share, a 6.2% rise [14][15]

Core Insights - TransUnion has been awarded the 2026 Future Digital Awards Gold Winner for Best Branded Call Solution in the Telco Innovation Awards Category, recognizing its innovative contributions to the telecom industry [1] - The award highlights the effectiveness of branded calling in enhancing business outreach and protecting consumers from fraud, as stated by TransUnion's senior vice president [2] Company Achievements - TransUnion's Branded Call Display has shown significant success, with a customer, Newzip, reporting a 25% increase in answer rates with pre-approved customers and a 137% increase with earlier funnel customers after implementation [3] - In addition to the recent award, TransUnion's Branded Call Display received multiple honors in 2025, showcasing its continued recognition in the industry [4] Industry Context - The growth of branded calling is indicative of its effectiveness in improving communication and trust between businesses and consumers, which is crucial in the current market landscape [2]