Equifax Q2 2025 Earnings Top Estimates with 7% Revenue Growth and 10% EPS Increase

Equifax reported Q2 2025 adjusted EPS of $2.00, surpassing estimates by 4.2%, and GAAP revenue of $1.537 billion, up 7.0% and beating expectations. All operating segments grew, with strong results in U.S. mortgage and verification services. Management maintained full-year 2025 guidance and raised the quarterly dividend by 28% to $0.50 per share.

Equifax Inc. (EFX) reported its second-quarter (Q2) 2025 earnings, with adjusted earnings per share (EPS) of $2.00, surpassing estimates by 4.2%, and GAAP revenue of $1.537 billion, up 7.0% year-over-year (YoY) and beating expectations. All operating segments demonstrated growth, with strong results in U.S. mortgage and verification services.

The company's revenue of $1.537 billion exceeded analysts' forecasts by 1.99%, driven by robust growth in its Workforce Solutions and International segments. Adjusted EPS of $2.00 was $0.10 above the midpoint of the April guidance range, reflecting strong revenue growth and solid cost management. The adjusted EBITDA margin stood at 32.5%.

Key highlights of the quarter include:
- Revenue growth of 8% in constant currency, the highest ever quarterly revenue in Equifax's history.
- Strong performance in U.S. Mortgage, led by preapproval product growth and a slight improvement in credit inquiries.
- Growth in non-mortgage segments, particularly government and consumer lending.
- International revenue growth of 6% in constant dollars, driven by strength in Europe and Latin America, despite overall economic weakness in Canada.

Management maintained its full-year 2025 constant currency guidance, expecting non-mortgage constant dollar revenue growth of approximately 6%. The company also raised its quarterly dividend by 28% to $0.50 per share.

Despite beating earnings expectations, Equifax's stock fell by 5.65% in pre-market trading, reflecting investor concerns over broader economic trends and potential impacts on the company's growth outlook. The stock remains within its 52-week range of $199.98 to $309.63, with current prices suggesting slight overvaluation according to InvestingPro's Fair Value model.

Equifax expects over $900 million in free cash flow for 2025 and anticipates generating $35,000,000 in additional revenue and adjusted EPS of $0.03 per share for the impact of FX.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-equifax-beats-q2-2025-earnings-expectations-shares-dip-93CH-4146438