Equifax (NYSE:EFX) reported a fourth-quarter finish that management said exceeded its prior guidance and set up “strong momentum” entering 2026, even as U.S. mortgage and hiring markets remained uneven. On the call, executives also focused heavily on how rising FICO mortgage score royalty pass-through revenue is affecting reported margins, and why the company plans to provide more transparency by discussing results both with and without those pass-throughs.
Full-year 2025 results and cash return to shareholders
CEO Mark Begor said Equifax delivered 2025 results “well above” the company’s February and October guidance, with revenue of $6.075 billion, EPS of $7.65 per share, and free cash flow of $1.13 billion. Revenue was up 7% on a reported and organic constant-currency basis, which Begor characterized as within the company’s long-term 7% to 10% organic revenue growth framework.
With that cash generation, the company both invested and returned capital:
- Repurchased over 4 million shares in 2025, returning $927 million to shareholders (including $500 million of repurchases in the fourth quarter).
- Paid $233 million in dividends, bringing total cash return to shareholders to $1.2 billion for 2025.
- Completed the acquisition of Vault Verify in the fourth quarter, which management described as a bolt-on deal within Workforce Solutions.
Fourth-quarter performance: revenue beat, margin impacted by incentive comp
For the fourth quarter, Equifax reported revenue of $1.551 billion, up 9% and above the top end of October guidance. Begor said the outperformance was most significant in Workforce Solutions, helped by strength in mortgage and government, and in U.S. Information Solutions (USIS), where strength was “principally in mortgage.” The company said USIS mortgage hard credit inquiries were down about 1% in the quarter, better than its prior expectation of a high-single-digit decline.
Adjusted EBITDA was $508 million with a margin of 32.8%, which management said was slightly below October guidance due to higher incentive compensation that flowed through corporate expenses. Begor said incentive compensation is expected to normalize to target levels in the first quarter as new-year targets are set.
Adjusted EPS was $2.09 per share, six cents above the midpoint of October guidance. Equifax said it returned $561 million to shareholders in the quarter, including repurchasing 2.3 million shares for $500 million.
Business unit trends: Workforce Solutions, USIS, and International
Workforce Solutions revenue rose 9% in the quarter. Begor said verifier diversified markets revenue growth was up 11%, government revenue was up low double digits, and Talent Solutions revenue grew high single digits despite continued weaker hiring volumes. Consumer lending within Workforce Solutions was described as “very strong,” with revenue up mid-double digits, supported by double-digit growth in personal loans, auto, and card. Employer services revenue was up 2%, as weakness in I-9 and onboarding persisted amid the softer hiring market. Workforce Solutions EBITDA margin was 51.3%, driven by operating leverage.
The company also emphasized The Work Number (TWN) database growth, noting over 200 million active records at year-end 2025 and continued record additions. Management pointed to a “long runway” to expand current records versus the broader income-producing U.S. population. Begor also said Workforce Solutions signed five new partner agreements in the fourth quarter, bringing total new agreements in 2025 to 16.
USIS revenue increased 12% in the quarter. Diversified markets (non-mortgage) revenue grew 5%, in line with guidance, with management citing high double-digit auto growth driven by pricing and pre-approval volumes, and low single-digit growth in financial institutions (FI). Mortgage revenue rose 33% in the quarter, and management attributed the outperformance to FICO pricing and growth in mortgage pre-approval products that incorporate the new TWN Indicator.
USIS consumer solutions (B2C) revenue grew high single digits, which management tied to strong customer acquisition trends in the consumer direct channel and partner growth. Begor said Equifax expanded its relationship with Gen Digital and plans to leverage “Engine by Gen” later in 2026 to provide myEquifax U.S. consumers access to more personalized financial solutions. USIS EBITDA margin was 36.3%, above the top end of guidance, reflecting stronger revenue and operating leverage.
International revenue grew 5% in constant currency, below the company’s expectations due to weakness in Canada and European debt management, though management cited “very good performance” in Brazil and Australia. International EBITDA margin was 31.6%, slightly above the October framework.
AI, new product momentum, and proprietary data emphasis
Executives repeatedly argued the company’s competitive position is anchored by proprietary datasets. Begor said about 90% of Equifax revenue is generated through the direct sale or derivative products based on “only Equifax” proprietary data. He and other executives also framed AI as both a product driver and an operational efficiency lever.
Begor said 2025 marked a pivot from “building to leveraging” the cloud, with 90% of revenue in the new Equifax Cloud. He highlighted a record 2025 Equifax Vitality Index of 15% (and 17% in the fourth quarter), above the company’s long-term goal of 10%, which he said equated to roughly $900 million of new product revenue during the year.
On operations, management said nearly 90% of employees are using Google Gemini AI in day-to-day roles, and about 1,900 software engineers have generated more than one million lines of code using AI coding tools. Equifax also said it expects to drive toward $75 million of annual cost savings over the next three years from its EFX.AI operations initiative, including early 2026 efforts to improve call centers with AI-assisted processes.
2026 outlook: guidance, FICO pass-through, and VantageScore scenarios
Equifax’s 2026 guidance assumes U.S. GDP growth of 2% to 3% and a U.S. mortgage market down low single digits versus 2025. At the midpoint, management guided to total revenue of about $6.7 billion, up roughly 10.6% reported (10% constant currency), and adjusted EPS of $8.50, up 11% year over year. The company also guided to over $1 billion of free cash flow and cash conversion of at least 100%.
A key theme was the impact of higher FICO mortgage score royalties that are passed through at zero margin. Begor said FICO mortgage royalties were about 3% of total 2025 revenue and are expected to rise to about 6% in 2026, reducing reported EBITDA margin rates. Excluding FICO mortgage royalties, management said revenue growth at the midpoint would be about 7%, and EBITDA margins would expand 75 basis points in 2026 (compared with a reported margin decline of roughly 30 basis points at the midpoint when including FICO pass-through revenue).
Management also discussed uncertainty around FHFA’s formal acceptance timeline for VantageScore in agency mortgage originations, noting that 2026 guidance assumes no conversion. Begor said Equifax has over 200 mortgage lenders testing or in production with VantageScore, including over 40 non-GSE lenders using only VantageScore in production. The company provided scenario analysis: a full conversion in mortgage to VantageScore in 2026 would reduce revenue by about $270 million at the midpoint, but increase EBITDA by about $160 million and lift EPS by about $1 per share, according to the company’s slide framework.
For the first quarter of 2026, Equifax guided to revenue of $1.597 billion to $1.627 billion and EPS of $1.63 to $1.73 per share. Management said first-quarter profitability is typically lower due to the structure of long-term incentive and equity plan expenses, which weigh disproportionately on the first quarter.
Finally, executives reiterated that 2026 guidance assumes no adoption of “FICO direct” score calculation by resellers and said they have not seen any such activity in January, while stressing that Equifax’s EBITDA and EPS are unaffected whether it sells the FICO score or resellers calculate it, because the score is passed through at cost.
About Equifax (NYSE:EFX)
Equifax Inc (NYSE: EFX) is a global data, analytics and technology company that specializes in consumer and commercial credit reporting, decisioning tools and identity solutions. Headquartered in Atlanta, Georgia, Equifax is one of the three major consumer credit reporting agencies in the United States and provides credit information and related services to lenders, employers, governments and consumers worldwide.
The company’s offerings include consumer credit reports and scores, credit monitoring and identity protection services, and a range of business-oriented products for risk management, fraud detection and compliance.
