Zach Lasich

Zach Lasich asked if the revenue guidance includes an assumption on the percentage of mortgage volumes that will shift to the FICO Direct model, and for color on how brokers are perceiving the direct model and performance pricing.

Answer

CEO Mark Begor reiterated that guidance assumes no FICO Direct model adoption and no Vantage conversion, as no activity has been seen in Q1 2026. He stressed Equifax's indifference to the FICO Direct model, as it has zero P&L impact (EBITDA, EPS, FCF) because Equifax sells the credit file at full price regardless and earns no margin on the FICO score. He noted uncertainty about reseller incentives and regulatory approvals for such a shift.

Zach Lasich asked if there's an assumption built into Equifax's revenue guidance regarding the percentage of mortgage volumes that will shift to the FICO Direct model, and for any insights into how brokers are perceiving the direct model and performance pricing.

Answer

Mark Begor, Chief Executive Officer, reiterated that guidance assumes no FICO Direct model adoption and no Vantage conversion, as no activity has been seen in Q1 and timing remains uncertain. He emphasized Equifax's agnostic stance, as there's no P&L impact (EBITDA, EPS, FCF) whether Equifax or a reseller calculates the FICO score, only revenue is affected (zero-calorie revenue). He noted questions about regulatory approvals and the potential benefit for resellers to invest in score calculation, given they would pay full price to both FICO and Equifax.