Equifax Exceeds Q1 Guidance, Launches $3 Billion Share Buyback and Hikes Dividend by 28%

Equifax (NYSE: EFX) reported first quarter 2025 revenue of $1.442 billion, up 4% year-over-year and $37 million above the midpoint of its guidance. Revenue rose 5% on a local currency basis, driven by robust U.S. mortgage demand, strong innovation, and continued expansion of the company’s cloud platform.

The company saw 7% growth in U.S. mortgage revenue despite continued softness in the overall mortgage market. The U.S. Information Solutions (USIS) segment posted 7% revenue growth, supported by an 11% rise in mortgage-related activity and 6% growth in non-mortgage sectors such as credit cards and auto. Workforce Solutions grew 3% year-over-year, with Verification Services increasing 5%.

International revenue rose 7% in local currencies but only 1% on a reported basis. Latin America was the strongest contributor to international performance.

Equifax highlighted continued investment in cloud-based infrastructure, with over 85% of its revenue now derived from the EFX Cloud. The company also noted an 11% Vitality Index, which measures revenue from new products launched in the past three years—exceeding its long-term goal of 10%.

Despite headwinds and economic uncertainty, Equifax reaffirmed its full-year 2025 outlook, projecting 6% local currency revenue growth and adjusted EPS of $7.45.

In a major move for shareholders, Equifax’s board approved a new $3 billion share repurchase program to be executed over four years and announced a 28% increase in its quarterly dividend to $0.50 per share beginning in Q2.

CEO Mark Begor stated that with the cloud migration nearly complete, the company will now focus on driving innovation and growth. He expects free cash flow to reach nearly $900 million in 2025 with a cash conversion ratio approaching 95%.

Begor added, “We are energized about the New Equifax that is expected to deliver higher growth, margins, and accelerating free cash flow, and returning cash to shareholders in the future.”

Equifax Releases 2024 Global Consumer Credit Trends Report Highlighting Shifts in Inflation, Credit Demand, and Lending Patterns

Equifax has published its 2024 Global Consumer Credit Trends report, covering insights from 10 countries, including Australia, Brazil, Canada, India, Spain, and the U.S. Powered by the Equifax Cloud™, the report highlights how lenders can better understand evolving consumer behaviors, inflation trends, and credit demand. Key findings include rising non-mortgage debt in India, mortgage recovery in Canada, and economic resilience in Spain. Despite global inflation pressures, credit demand has remained steady, with a shift toward unsecured credit. The report also underscores Equifax’s $1.5 billion investment in cloud technology to enhance data accessibility and compliance.

Equifax® (NYSE: EFX) will announce its financial results for the first quarter ended March 31, 2025, in a release to be issued on Tuesday, April 22, at 6:30 a.m. Eastern Time (ET).

Equifax reported strong financial results for the fourth quarter and full year ended December 31, 2024, despite challenges in the U.S. hiring and mortgage markets.

Key highlights include:

- Fourth Quarter Performance: Revenue for the fourth quarter was $1.419 billion, reflecting a 7% increase on a reported basis and 9% growth in local currency. This growth was led by a strong 29% increase in U.S. Mortgage revenue.
- Workforce Solutions: Revenue grew 7%, driven by a 10% increase in Verification Services, although Employer Services revenue declined by 9% due to weaker U.S. hiring.
- USIS: This segment saw over 10% revenue growth, primarily due to a 47% increase in Mortgage revenue.
- International Growth: Revenue from international markets grew 11% in local currency, with Latin America being a key driver.
- Cloud Migration: Equifax is nearing completion of its EFX Cloud migration, with close to 85% of its revenue now in the Cloud.
- Free Cash Flow: Free cash flow for the year was $813 million, an increase of 58% from 2023, positioning Equifax for further growth and shareholder returns through dividends and share repurchases in 2025.

For full-year 2024, Equifax reported:
- Revenue: $5.681 billion, an 8% increase compared to 2023.
- Diluted EPS: $4.84 per share, up from $4.40 in 2023.
- Net Income: $604.1 million, reflecting an 11% increase from the previous year.

2025 Guidance:
- Revenue: Expected to reach $5.95 billion, up 4.7%, with a constant currency organic growth of about 6%.
- Adjusted EPS: The midpoint expectation is $7.45 per share, a 2% increase from 2024, despite a predicted 12% decline in U.S. mortgage hard credit inquiries.

Equifax remains focused on its EFX2027 Strategic Priorities, leveraging its new Cloud capabilities and differentiated data assets to drive future growth.