Equifax 2025 Q2 Earnings Strong Net Income Growth of 16%

Equifax (EFX) reported its fiscal 2025 Q2 earnings on July 22, 2025. Equifax exceeded expectations in its second quarter, reporting a 16.6% increase in net income, reaching $192.60 million. The company raised its full-year 2025 revenue guidance, reflecting confidence in their business trajectory. Equifax maintained its full-year 2025 revenue guidance at approximately $6 billion, with adjusted EPS projected at $7.48. Anticipated revenue growth for Q3 2025 is over 5% year-over-year, with adjusted EPS estimated between $1.87 and $1.97.

Revenue

In the second quarter of 2025, Equifax witnessed a 7.4% increase in total revenue, amounting to $1.54 billion, compared to $1.43 billion in the same period in 2024. The Workforce Solutions segment contributed significantly, generating $662.10 million, while the U.S. Information Solutions segment added $521.50 million. The International segment also performed well, bringing in $353.40 million. Collectively, these segments drove the company's impressive revenue growth.

Earnings/Net Income

Equifax's EPS rose by 16.7% to $1.54 in 2025 Q2 from $1.32 in 2024 Q2, demonstrating robust earnings growth. The company's net income reached $192.60 million in 2025 Q2, reflecting a 16.6% increase from $165.20 million in the prior year. These results indicate strong financial performance.

Post-Earnings Price Action Review

The strategy of purchasing Equifax shares following positive earnings results and holding them for 30 days has yielded moderate returns. This approach achieved a 77.20% return, slightly surpassing the benchmark return of 75.20%. The strategy demonstrated a Sharpe ratio of 0.67, which suggests a reasonable risk-adjusted return. Notably, the maximum drawdown was 0.00%, indicating no risk of loss during the backtest period. This outcome highlights the effectiveness of this strategy in generating consistent returns, even amidst market fluctuations.

CEO Commentary

Mark W. Begor, CEO of Equifax, emphasized the strong second quarter performance, highlighting an 8% revenue increase in constant currency. He attributed the growth to robust performance in U.S. Mortgage, particularly from preapproval products. Despite challenges in the mortgage market and hiring trends, Begor expressed confidence in the company's strategy, focusing on investment in innovation and successful cloud transition. He noted optimism about leveraging new data solutions to enhance market positioning and drive future growth.

Guidance

Equifax maintains its full-year 2025 revenue guidance at approximately $6 billion, with adjusted EPS projected at $7.48. The company anticipates non-mortgage constant dollar revenue growth at about 6%, while mortgage revenue growth is expected to be around 10% in the second half. Adjusted EBITDA margins are anticipated to be flat compared to 2024, despite increased corporate expenses related to litigation. For Q3 2025, Equifax expects revenue growth of over 5% year-over-year, with adjusted EPS estimated between $1.87 and $1.97.

Additional News

Recently, Equifax unveiled a new share buyback initiative, repurchasing $127 million worth of shares as part of its $3 billion plan. Additionally, Equifax introduced its new myEquifax™ mobile app, enhancing consumer control over financial health monitoring. The app offers credit report viewing, credit freeze management, and access to the VantageScore 3.0 credit score. Furthermore, Equifax announced the launch of B2bConnect, a commercial marketing data solution, aimed at improving marketers' campaign efficiency through access to comprehensive U.S.-based business records. These initiatives underscore Equifax's focus on innovation and shareholder value.