Equifax's Q1 2025: Key Contradictions on Mortgage Market, TWIN Growth, and Recession Resilience

Mortgage market performance and impact, TWIN and government business expansion, recession framework and business positioning, EWS margin guidance and growth drivers, mortgage market recovery and expectations are the key contradictions discussed in Equifax's latest 2025Q1 earnings call.



Strong Financial Performance:
- Equifax reported revenue of $1.442 billion for the first quarter of 2025, up 4% reported and 5% in constant dollars, and adjusted EPS of $1.53 per share.
- This growth was driven by strong performance in non-mortgage verticals and favorable revenue trends in USIS, particularly in mortgage prequalification and pre-approval products, and B2B non-mortgage revenue.

Impact of Economic Uncertainty:
- Equifax maintained its full-year guidance despite economic uncertainty, expecting 6% constant currency revenue growth.
- The company's guidance accounts for potential volatility, reflecting concerns over interest rates and tariff actions that may affect consumer confidence and economic growth.

Strategic Initiatives and Product Innovations:
- Equifax's strategic focus on leveraging its new cloud capabilities for growth and innovation has led to strong performance.
- The introduction of a new Equifax solution combining TWIN and credit data for mortgage shopping has been well-received and is expected to drive further growth.

Mortgage Market Dynamics:
- The U.S. mortgage market showed signs of recovery, with mortgage rates declining, which led to improved mortgage hard inquiry performance.
- This recovery was observed despite Equifax's guidance for a full-year decline in USIS hard mortgage credit inquiries of 12%.