Kelsey Zhu's questions to EQUIFAX (EFX) leadership • Q3 2025
Question
Kelsey Zhu asked about the VantageScore opportunity in non-mortgage verticals, including current penetration rates in card and auto, pricing differences with FICO, and projected adoption rates over the next three to five years. She also inquired about the evolution of SNAP contracts within the government vertical, specifically regarding the $38 million USDA contract from Q3 2023, its impact from 2024 funding changes, and the outlook for revenue generated from USDA/SNAP contracts.
Answer
Mark Begor, Chief Executive Officer, noted that FICO has been less aggressive on pricing in non-mortgage verticals, leading to less attention compared to mortgage. However, he believes there are still savings opportunities and performance comparable to FICO, which Equifax aims to capitalize on by offering free VantageScores with every paid FICO score in these verticals. Mark Begor declined to discuss specific customer contracts but highlighted broader opportunities from the OB3 bill and the focus on $160 billion in improper payments. He emphasized new OB3 requirements (e.g., 6-month redeterminations, work requirements, SNAP error rates) as catalysts for states to adopt Equifax solutions to avoid paying larger portions of benefits. John Gamble, Chief Financial Officer, added that the vast majority of SNAP revenue is directly with states.