Executive Summary

Q1 2025 revenue was $1.442B (+4% reported, +5% LC), ~$37M above the midpoint of February guidance; Adjusted EPS was $1.53, with GAAP diluted EPS of $1.06 .
Results beat S&P Global consensus: revenue $1.442B vs $1.418B* and adjusted EPS $1.53 vs $1.40*; outperformance was driven by stronger USIS mortgage (prequal/pre-approval), non‑mortgage in Card/Auto, and solid EWS government/talent momentum .
Equifax maintained FY25 guidance (reported revenue $5.91–$6.03B; adjusted EPS $7.25–$7.65) despite the Q1 beat, citing uncertainty around tariffs, inflation, rates, and mortgage/hiring markets .
Capital return accelerated: Board authorized a $3B share repurchase (targeted over ~~4 years) and raised the quarterly dividend by 28% to $0.50 (from $0.39), reinforcing a durable FCF outlook (~~$900M in 2025) and balanced capital allocation .

What Went Well and What Went Wrong

What Went Well
- USIS delivered 7% revenue growth with 11% mortgage and 6% non‑mortgage growth; management highlighted stronger card/auto and post‑cloud commercial momentum .
- Workforce Solutions (EWS) Verification Services grew 5% (non‑mortgage +6%) with better‑than‑expected government growth; EWS adjusted EBITDA margin was 50.1% .
- Innovation and Cloud execution: Vitality Index reached 11% (above 10% LT goal) and >85% of revenue is now in EFX Cloud; CEO: “Our strong first quarter is a proof point to the power of the Equifax cloud…” .
What Went Wrong
- Employer Services declined 8% amid weaker hiring; management continues to expect a softer hiring backdrop near term .
- International operating margin compressed to 7.8% (from 9.9% YoY) on mix, despite 7% LC revenue growth; Canada and Europe were slightly weaker on macro .
- Guidance held despite the beat given tariff/inflation/rate uncertainty and recent mortgage softness; management cited mortgage inquiry declines over the last 10 days of the period .

Financial Results

Q1 2025 vs prior quarters and consensus

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($B)	$1.420	$1.419	$1.442
Adjusted EPS ($)	$1.85	$2.12	$1.53
GAAP Diluted EPS ($)	—	—	$1.06

Q1 2025 vs S&P Global consensus (actuals from company; estimates from S&P Global)

Metric	Consensus	Actual/Guide
Revenue ($B)	$1.418*	$1.442
Adjusted EPS ($)	$1.404*	$1.53

Values retrieved from S&P Global.*

Segment breakdown – Q1 2025

Segment/Region	Q1 2025 Revenue ($M)	YoY	Notes
Workforce Solutions (EWS)	618.6	+3%	Operating margin 42.7%; Adjusted EBITDA margin 50.1%
• Verification Services	502.2	+5%	Mortgage +3%; Non‑mortgage +6%
• Employer Services	116.4	-8%	Weaker hiring markets
U.S. Information Solutions (USIS)	499.9	+7%	Operating margin 21.1%; Adjusted EBITDA margin 34.1%
• Online Information Solutions	448.1	+7%	Card/Auto strength
• Financial Marketing Services	51.8	+10%	Insights/archives; cloud delivery
International	323.5	+1% (reported), +7% (LC)	Operating margin 7.8%; Adjusted EBITDA margin 24.1%
• Latin America	94.2	+3% (reported), +16% (LC)	Led by Brazil/Argentina
• Europe	86.6	~Flat (reported), +1% (LC)	Softer U.K. economy
• Asia Pacific	79.7	+2% (reported), +7% (LC)
• Canada	63.0	-4% (reported), +2% (LC)

KPIs and operating progress

KPI	Q3 2024	Q4 2024	Q1 2025
TWIN active records (M)	182	188	191
TWIN total records (M)	>700	734	751
Vitality Index (New Product)	13%	12%	11%
Revenue in EFX Cloud	~80%	~85%	>85%
Mortgage revenue (% of total)	20%	17.7%	21%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Reported Revenue ($B)	FY 2025	~$5.95B midpoint	$5.91–$6.03B	Maintained; FX benefit update (+$20M)
Adjusted EPS ($)	FY 2025	$7.45 midpoint	$7.25–$7.65	Maintained midpoint
Reported Revenue ($B)	Q2 2025	—	$1.495–$1.525	New intra‑year guide
Adjusted EPS ($)	Q2 2025	—	$1.85–$1.95	New intra‑year guide
Dividend per share ($)	Q2 2025	$0.39 prior dividend	$0.50 (28% increase)	Raised
Share repurchase	Multi‑year	—	$3B over ~4 years	New authorization

Management reaffirmed constant‑currency FY25 revenue growth of ~6% and adjusted EPS midpoint $7.45, but held the range due to macro uncertainty (tariffs/inflation/rates), while updating FX (+$20M revenue) .

Earnings Call Themes & Trends

Topic	Q3 2024 (Oct)	Q4 2024 (Feb)	Q1 2025 (Apr)	Trend
AI / Cloud leverage	Cloud migrations enabled Vitality 13%; 100% of new models using EFX.AI	Cost saves from decommissioning; 2025 D&A up; continued AI/product focus	“Power of the Equifax cloud” enabled above‑guide results; pivot fully to growth/innovation	Strengthening
Mortgage market	Slight rate dip lifted activity late Q3; USIS mortgage +36%	Assumed 2025 USIS hard inquiries -12%	Q1 US mortgage revenue +7%; maintaining FY assumption -12%; noted 10‑day late‑period softness	Cautious
Government / SSA	SSA extension (~$500M/5yr) signed Q3	Government growth expected to re‑accelerate 2H25; CMS funding shifts near-term headwind	New SSA amendment (~$50M annual) ramping; intensified D.C./state focus on $160B improper payments	Positive
USIS non‑mortgage	+5% in Q3; payments wins; D2C strength	2025 guide: USIS +>5%; non‑mortgage ~4%	Strong Q1 +6% non‑mortgage; momentum post‑cloud	Improving
International	Strong Q3 LC +18% (org +12%)	FY25 LC +7% outlook; U.K./Canada softer	Q1 LC +7%; operating margin down on mix	Stable growth, margin mix
Capital returns	Set stage for 2025 returns	Intent to raise dividend and initiate buyback in 2025	Announced $3B buyback; 28% dividend increase	Executing

Management Commentary

“Equifax is off to a very strong start in 2025… $37 million above the midpoint of our February guidance… proof point to the power of the Equifax cloud as our team can now fully focus on growth, innovation and customers.” — CEO Mark Begor .
“We are maintaining our full-year 2025 Guidance… due to the significant uncertainty in the global macroeconomic environment and direction of U.S. inflation and interest rates.” — CEO Mark Begor .
“This week, the Equifax Board… approved a 28% increase in our quarterly dividend to $0.50 per share and authorized a new $3 billion 4-year share repurchase program.” — CEO Mark Begor .
“EWS… completed an amended agreement with the SSA for annual revenue of about $50 million… begin ramping the use of a TWIN solution…” — CEO Mark Begor .

Q&A Highlights

Government momentum: Management emphasized a favorable D.C. tone on program integrity; SSA amendment (~$50M annual) is a proof point; large state-level TAM remains underpenetrated .
Mortgage/hiring outlook: FY25 hard inquiries held at -12%; noted late‑period mortgage softness in early April; hiring expected to remain weaker, pressuring Employer Services .
TWIN indicator strategy: Early positive reception in mortgage shopping; planned expansion to auto and personal loans; careful balance to preserve full verification pull economics .
Free cash flow seasonality: Q1 FCF conversion appears low due to larger variable comp payouts YoY; normalized growth would be >20% vs Q1’24; 2025 ~ $900M FCF unchanged .
Capital allocation: Dividend growth generally to track EPS growth (5–15% range) and consistent repurchases during windows, flexing with M&A pipeline .

Estimates Context

Q1 2025: Revenue $1.442B vs S&P Global consensus $1.418B*; Adjusted EPS $1.53 vs $1.40* (beat on both revenue and EPS) .
Q2 2025 guide vs consensus: Revenue guide $1.495–$1.525B (mid ~$1.510B) vs $1.516B*; Adjusted EPS guide $1.85–$1.95 (mid $1.90) vs $1.921* — broadly in line to slightly below at midpoints; execution and mortgage trajectory are swing factors .