In This Article:
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Revenue: $1.442 billion, up 4% reported and 5% in constant dollars.
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Adjusted EPS: $1.53 per share, $0.15 above the midpoint of February guidance.
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Debt Leverage: Ended March with debt leverage of 2.5 turns.
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Free Cash Flow: Expected to generate about $900 million this year with a cash conversion approaching 95%.
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Adjusted EBITDA Margins: 29.3%, up 20 basis points from last year.
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EWS EBITDA Margins: Over 50%.
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USIS Revenue Growth: 7%, with non-mortgage growth at about 6%.
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International Revenue Growth: Almost 7% constant currency.
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Dividend Increase: 28% increase to $0.50 per share.
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Share Repurchase Program: New $3 billion four-year share repurchase program.
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Workforce Solutions Revenue: Up 3%, with Verifier revenue growth of 5%.
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Government Revenue Growth: Expected about 10% in the second half of the year.
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USIS Mortgage Revenue: Up 11% in the first quarter.
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International Adjusted EBITDA Margins: 24.1%, down 20 basis points versus last year.
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Equifax Inc (NYSE:EFX) reported a strong start to 2025 with revenue of $1.442 billion, up 4% reported and 5% in constant dollars, exceeding the midpoint of their February guidance by $37 million.
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The company achieved an adjusted EPS of $1.53 per share, which was $0.15 above the midpoint of their February guidance, driven by higher revenue growth and improved margins.
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Equifax Inc (NYSE:EFX) launched its first-ever only Equifax solution in the mortgage sector, providing key employment and income information, which has seen strong customer demand.
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The EWS team delivered EBITDA margins of over 50%, surpassing expectations, and continued to expand its use cases in the federal government.
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Equifax Inc (NYSE:EFX) announced a 28% increase in their quarterly dividend to $0.50 per share and authorized a new $3 billion four-year share repurchase program, reflecting confidence in their business model.
Negative Points
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Despite strong Q1 performance, Equifax Inc (NYSE:EFX) maintained its 2025 guidance due to significant economic and market uncertainty, particularly around tariffs and their impact on US inflation and interest rates.
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The company noted a decline in mortgage activity due to higher interest rates and expects continued impacts on mortgage activity until there is stability in Washington.
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Employer Services revenue was down 8% in the quarter, impacted by a weaker hiring market.
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Equifax Inc (NYSE:EFX) faces challenges in penetrating the large $5 billion government TAM, with growth expected to accelerate only in the second half of the year.
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The company is cautious about the potential impacts of a recession, maintaining a conservative outlook despite strong Q1 results.