Equifax Q3 Revenue Jumps 7% on Strong Demand, EPS Up 13%

Ticker: EFX · Form: 10-Q · Filed: 2025-10-21T00:00:00.000Z

Sentiment: bullish

Topics: Financial Services, Data Analytics, Credit Reporting, Q3 Earnings, Revenue Growth, EPS Growth, Share Repurchase

Related Tickers: EFX, EXPGF, TRU

TL;DR

**EFX is crushing it with double-digit profit growth, buy the dip if you get one.**

AI Summary

EQUIFAX INC. (EFX) reported a strong financial performance for the three and nine months ended September 30, 2025. For the three-month period, operating revenue increased by 7.15% to $1,544.9 million from $1,441.8 million in the prior year. Net income attributable to Equifax shareholders rose by 13.38% to $160.2 million, up from $141.3 million. Diluted earnings per common share also saw a significant increase, reaching $1.29 compared to $1.13 in the same period of 2024. For the nine-month period, operating revenue grew by 6.15% to $4,523.9 million from $4,261.7 million. Net income attributable to Equifax shareholders increased by 12.65% to $484.5 million, up from $430.1 million, with diluted EPS at $3.89 versus $3.44. The company's cash provided by operating activities for the nine months ended September 30, 2025, was $1,144.9 million, a substantial increase from $999.7 million in the prior year. Strategic outlook includes continued investment in cloud technology transformation and acquisitions, while risks include changes in U.S. and worldwide economic conditions impacting consumer spending and demand for services.

Why It Matters

This strong performance from Equifax signals robust demand for its data and analytics services, particularly in a dynamic economic environment. For investors, the 13.38% increase in net income and 14.16% rise in diluted EPS for the quarter demonstrate effective operational management and potential for continued growth, making EFX an attractive prospect. Employees benefit from a stable and growing company, while customers can expect continued innovation in data solutions. In the competitive landscape, Equifax's ability to increase revenue and profitability suggests it is effectively navigating market challenges and potentially gaining market share against rivals like Experian and TransUnion.

Risk Assessment

Risk Level: medium — While EFX shows strong growth, the filing highlights risks from 'changes in U.S. and worldwide economic conditions, such as changes in interest rates and inflation, that materially impact consumer spending, home prices, investment values, consumer debt, unemployment rates and the demand for Equifax's products and services.' This broad exposure to macroeconomic shifts, coupled with the inherent data security risks in its business model, warrants a medium risk level despite solid financial performance.

Analyst Insight

Investors should consider EFX's consistent revenue and net income growth as a positive indicator for long-term holdings. The company's strong cash flow from operations, at $1,144.9 million for the nine months, provides flexibility for strategic investments and shareholder returns. Monitor global economic indicators and competitive developments, but the current trajectory suggests continued strength.

Financial Highlights

revenue
$1,544.9M
operating Margin
17.1%
net Income
$160.2M
eps
$1.29
revenue Growth
+7.15%

Revenue Breakdown

SegmentRevenueGrowth
Total Operating Revenue$1,544.9M+7.15%
Total Operating Revenue (YTD)$4,523.9M+6.15%

Key Numbers

Key Players & Entities

FAQ

What were Equifax's key financial results for the third quarter of 2025?

For the three months ended September 30, 2025, Equifax reported operating revenue of $1,544.9 million, a 7.15% increase from $1,441.8 million in Q3 2024. Net income attributable to Equifax was $160.2 million, up 13.38% from $141.3 million, and diluted earnings per common share reached $1.29, compared to $1.13 in the prior year.

How did Equifax's year-to-date performance compare to the previous year?

For the nine months ended September 30, 2025, Equifax's operating revenue was $4,523.9 million, a 6.15% increase from $4,261.7 million in the same period of 2024. Net income attributable to Equifax grew by 12.65% to $484.5 million from $430.1 million, with diluted EPS at $3.89, up from $3.44.

What is Equifax's cash flow from operating activities?

For the nine months ended September 30, 2025, Equifax generated $1,144.9 million in cash from operating activities. This represents a significant increase from $999.7 million reported for the same period in 2024, indicating strong operational efficiency.

What are the primary risks highlighted in Equifax's 10-Q filing?

The filing identifies risks related to 'changes in U.S. and worldwide economic conditions, such as changes in interest rates and inflation, that materially impact consumer spending, home prices, investment values, consumer debt, unemployment rates and the demand for Equifax's products and services.' These macroeconomic factors could affect the company's future performance.

What is Equifax's strategy regarding share repurchases?

As of September 30, 2025, Equifax had approximately $2.6 billion available for future purchases of common stock under its share repurchase authorization. The company purchased $427.4 million in treasury stock during the nine months ended September 30, 2025.

How has Equifax's dividend per common share changed?

Equifax's dividends per common share for the three months ended September 30, 2025, were $0.50, an increase from $0.39 in the same period of 2024. For the nine months ended September 30, 2025, dividends per common share were $1.39, up from $1.17 in the prior year.

What is Equifax's current number of outstanding common shares?

On October 10, 2025, there were 122,394,037 shares of Equifax's common stock outstanding. The weighted-average shares used in computing diluted EPS for the three months ended September 30, 2025, was 124.1 million.

What is the impact of foreign currency translation on Equifax's comprehensive income?

For the nine months ended September 30, 2025, the foreign currency translation adjustment contributed $188.8 million to comprehensive income. This is a significant positive shift compared to a negative $49.3 million adjustment in the same period of 2024.

What are Equifax's primary business operations?

Equifax collects, organizes, and manages financial, demographic, employment, criminal justice, and marketing information. It provides products and services to businesses for credit and service decisions, risk management, payroll-related processes, and marketing strategies, and also offers products directly to consumers to manage financial health.

Where does Equifax operate globally?

As of September 30, 2025, Equifax operated in numerous countries including Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the United Kingdom, Uruguay, and the United States. It also has joint ventures in Brazil, Cambodia, Malaysia, and Singapore.

Risk Factors

Industry Context

Equifax operates in the credit information and data analytics sector, a critical component of the financial services ecosystem. The industry is characterized by significant data aggregation, processing, and the provision of insights for decision-making. Key trends include digital transformation, increasing demand for data analytics, and evolving regulatory landscapes concerning data privacy and security.

Regulatory Implications

Equifax faces significant regulatory scrutiny due to its handling of sensitive consumer data. Compliance with global data privacy laws (e.g., GDPR, CCPA) is paramount. Changes in credit reporting regulations or data security standards could necessitate substantial operational adjustments and investments, impacting costs and business practices.

What Investors Should Do

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Glossary

Operating revenue
The total revenue generated from the company's core business operations before deducting any expenses. (Key indicator of top-line growth and business activity, showing a 7.15% increase for Q3 2025.)
Net income attributable to Equifax
The portion of the company's net income that belongs to its shareholders after accounting for noncontrolling interests. (Represents the bottom-line profitability available to Equifax shareholders, which increased by 13.38% for Q3 2025.)
Diluted earnings per common share (EPS)
A measure of a company's profit allocated to each outstanding share of common stock, assuming all convertible securities and stock options were exercised. (A crucial metric for investors to assess profitability on a per-share basis, showing a 14.16% increase for Q3 2025.)
Cash provided by operating activities
The net amount of cash generated from a company's normal business operations over a period. (Indicates the company's ability to generate cash from its core business, which saw a substantial increase of 14.52% year-to-date.)
Noncontrolling interests
The portion of equity in a subsidiary that is not attributable to the parent company. (Reflects ownership stakes in consolidated subsidiaries that do not belong to Equifax shareholders, impacting the net income attributable to Equifax.)

Year-Over-Year Comparison

Compared to the prior year, Equifax has demonstrated robust top-line growth, with operating revenue increasing by 7.15% for the third quarter and 6.15% year-to-date. Profitability has also improved, with net income attributable to Equifax shareholders rising by 13.38% and 12.65% for the respective periods, leading to higher diluted EPS. Cash flow from operations has seen a notable increase of 14.52% year-to-date, signaling strong operational cash generation. While specific new risks were not detailed in the provided excerpt, the company continues to operate within a landscape of evolving economic conditions and regulatory environments.

Filing Stats: 4,639 words · 19 min read · ~15 pages · Grade level 8 · Accepted 2025-10-21 16:19:01

Key Financial Figures

Filing Documents

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Consolidated Statements of Income—Three Months Ended September 30, 2025 and 2024 4 Consolidated Statements of Income— Nine Months Ended September 30, 2025 and 2024 5 Consolidated Statements of Comprehensive Income (Loss)—Three and Nine Months Ended September 30, 2025 and 2024 6 Consolidated Balance Sheets— September 30, 2025 and December 31, 2024 7 Consolidated Statements of Cash Flows— Nine Months Ended September 30, 2025 and 2024 8 Consolidated Statements of Shareholders' Equity and Accumulated Other Comprehensive Loss—Three Months Ended September 30, 2025 and 2024 9 Consolidated Statements of Shareholders' Equity and Accumulated Other Comprehensive Loss— Nine Months Ended September 30, 2025 and 2024 10

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 12 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36 PART II. Other Information 37 Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 5 Other Information 39 Item 6. Exhibits 40

Signatures

Signatures 41 2

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains information that may constitute "forward-looking statements." Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," "may" and similar expressions identify forward-looking statements that are not historical in nature. All statements that address future operating performance and events or developments that we expect or anticipate will occur in the future, including statements relating to future operating results, improvements in our information technology and data security infrastructure, including as a part of our cloud technology transformation, our strategy, the expected financial and operational benefits, synergies and growth from our acquisitions, changes in U.S. and worldwide economic conditions, such as changes in interest rates and inflation, that materially impact consumer spending, home prices, investment values, consumer debt, unemployment rates and the demand for Equifax's products and services, our culture, our ability to innovate, the market acceptance of new products and services and similar statements about our business plans are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and our present expectations or projections, including without limitation our expectations regarding the Company's outlook, long-term organic and inorganic growth, and customer acceptance of our business solutions referenced below under "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Business Overview." These risks and uncertainties include, but are not limited to, those described in Part II, "Item 1A. Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 20

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) EQUIFAX INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended September 30, 2025 2024 (In millions, except per share amounts) Operating revenue $ 1,544.9 $ 1,441.8 Operating expenses: Cost of services (exclusive of depreciation and amortization below) 663.2 645.2 Selling, general and administrative expenses 434.1 380.4 Depreciation and amortization 183.3 169.1 Total operating expenses 1,280.6 1,194.7 Operating income 264.3 247.1 Interest expense ( 52.2 ) ( 56.3 ) Other income, net 3.2 3.0 Consolidated income before income taxes 215.3 193.8 Provision for income taxes ( 53.8 ) ( 51.1 ) Consolidated net income 161.5 142.7 Less: Net income attributable to noncontrolling interests including redeemable noncontrolling interests ( 1.3 ) ( 1.4 ) Net income attributable to Equifax $ 160.2 $ 141.3 Basic earnings per common share: Net income attributable to Equifax $ 1.30 $ 1.14 Weighted-average shares used in computing basic earnings per share 123.1 123.9 Diluted earnings per common share: Net income attributable to Equifax $ 1.29 $ 1.13 Weighted-average shares used in computing diluted earnings per share 124.1 125.2 Dividends per common share $ 0.50 $ 0.39 See Notes to Consolidated Financial Statements. 4 EQUIFAX INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Nine Months Ended September 30, 2025 2024 (In millions, except per share amounts) Operating revenue $ 4,523.9 $ 4,261.7 Operating expenses: Cost of services (exclusive of depreciation and amortization below) 1,984.4 1,903.7 Selling, general and administrative expenses 1,193.2 1,105.7 Depreciation and amortization 535.3 498.3 Total operating expenses 3,712.9 3,507.7 Operating income 811.0 754.0 Interest expense ( 158.2 ) ( 173.4 ) Other income, net 9.2 4.3 Consolidated income before income taxes 662.0 584.9 Provision for income taxes ( 174.1 ) ( 151.0 ) Consolidated net income 487.9 433.9 Less: Net

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) September 30, 2025 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As used herein, the terms Equifax, the Company, we, our and us refer to Equifax Inc., a Georgia corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Equifax Inc. Nature of Operations. We collect, organize and manage various types of financial, demographic, employment, criminal justice data and marketing information. Our products and services enable businesses to make credit and service decisions, manage their portfolio risk, automate or outsource certain payroll-related, tax and human resources business processes and develop marketing strategies concerning consumers and commercial enterprises. We serve customers across a wide range of industries, including the financial services, mortgage, retail, telecommunications, utilities, automotive, brokerage, healthcare and insurance industries, as well as government agencies. We also enable consumers to manage and protect their financial health through a portfolio of products offered directly to consumers. As of September 30, 2025, we operated in the following countries: Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the United Kingdom ("U.K."), Uruguay and the United States of America ("U.S."). We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore. We develop, maintain and enhance secured proprietary information databases through the compilation of consumer specific data, including credit, income, employment, criminal justice, asset, liquidity, net worth and spending activity, and business data, including credit and business demographics, that we obtain from a variety of sources, such as credit granting in

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