What were the key takeaways from Equifax's earnings call?

What does Equifax do and what are its main business segments?

What were the key takeaways from Equifax’s earnings call?

What factors drove the changes in Equifax's revenue and profit?

What guidance did Equifax's management provide for the next earnings period?

Did Equifax beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Equifax year over year?

What is Equifax's gross profit margin?

- **Revenue Beat**: $1.54B (+7% YoY), driven by 26% USIS mortgage and 20% EWS Gov growth. EPS $2.04 (+$0.12 vs. guidance).
- **VantageScore Disruption**: $4.50 pricing vs. FICO's $10, targeting $100-200M profit by 2026. Early adoption in mortgage and gov.
- **AI Innovation**: 150+ NPIs, 30% model performance improvement. Vitality Index 16% (vs. 12% prior guidance).
- **Free Cash Flow**: Guidance raised to $950-975M, up from $900M, with 100%+ cash conversion.
- **Gov Risk**: 16% states using TWN for SNAP, 40% states over 6% error rate threshold.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue of $1.54 billion, up 7% YoY, driven by USIS mortgage (26% growth) and EWS non-mortgage (high single-digit growth). Adjusted EPS of $2.04 exceeded guidance by $0.12.
- **VantageScore Strategy**: Announced VantageScore 4.0 pricing at $4.50, 50% below FICO's $10, targeting $100-200 million profit by 2026. Early adoption seen in mortgage and government sectors.
- **Government Growth**: EWS Government revenue up 20% YoY, driven by TWN adoption and OB3 compliance. 16% of states now use TWN for SNAP verification.
- **AI Innovation**: Launched 150+ NPIs, including TWN indicator and Ignite AI Advisor. Vitality Index at 16%, up from 12% prior guidance.

**【CFO Financial Commentary】**
- **Full Year Guidance**: Raised revenue by $40 million to $6.1-6.7% YoY, adjusted EPS by $0.12 to $2.04-2.12. Free cash flow guidance increased to $950-975 million.
- **Margins**: Adjusted EBITDA margin 32.7%, up 20bps YoY. USIS margin 35.2%, up 130bps YoY due to Cloud cost savings.
- **Mortgage Outlook**: Q4 mortgage hard inquiries expected down low single digits, but USIS mortgage revenue up 20% YoY.
- **Cost Management**: $44 million restructuring charges in Q3, with $30 million annual savings by 2026.

**【Q&A Key Highlights】**
- **VantageScore Adoption**: Momentum from FICO's 16x price increase (2025: $4.95 → 2026: $10). Customers in production for TWN indicator in mortgage and auto.
- **Government Risk**: Federal shutdown could delay verification activity, but guidance assumes no material impact.
- **AI Impact**: EFX.AI models outperform legacy by 30%, with 150+ NPIs launched in 2025. AI-driven cost savings in internal operations.
- **Mortgage Pricing**: Equifax to absorb $10 FICO cost, making VantageScore 50% cheaper. Long-term upside from VantageScore 4.0 adoption.
- **International Growth**: Canada and Latin America up 11% and 9% YoY, driven by Cloud transformation and new products.

Equifax Inc. (EFX) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

EFX

EFX fundamentals

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