On April 22, 2025, Equifax Inc (EFX, Financial) released its 8-K filing detailing its financial performance for the first quarter of 2025. As one of the leading credit bureaus in the United States, alongside Experian and TransUnion, Equifax plays a crucial role in providing credit histories and verification services, with significant revenue generated from workforce solutions and international markets.
Performance Overview
Equifax Inc (EFX, Financial) reported a revenue of $1.442 billion for the first quarter of 2025, marking a 4% increase on a reported basis and a 5% increase in local currency terms compared to the same period in 2024. This revenue figure exceeded the analyst estimate of $1.41667 billion. The company's net income attributable to Equifax rose to $133.1 million, a 7% increase from $124.9 million in the first quarter of 2024.
Key Financial Achievements
The company's diluted earnings per share (EPS) was $1.06, surpassing the analyst estimate of $1.02 and reflecting a 6% increase from the previous year's $1.00. Equifax's adjusted EPS was $1.53, a 2% rise from the prior year. These achievements underscore the company's ability to deliver strong financial results despite challenges in the U.S. hiring and mortgage markets.
Segment Performance
Equifax's Workforce Solutions segment reported a revenue of $618.6 million, up 3% from the previous year, with a notable 5% growth in Verification Services revenue. The U.S. Information Solutions (USIS) segment saw a 7% revenue increase to $499.9 million, driven by an 11% growth in mortgage revenue. International revenue grew by 7% in local currency terms, although only 1% on a reported basis.
Strategic Initiatives and Shareholder Returns
Equifax announced a new $3 billion share repurchase program and a 28% increase in its quarterly dividend to $0.50 per share, reflecting its strong free cash flow and balance sheet. The company is nearing completion of its EFX Cloud transformation, with over 85% of its revenue now cloud-based, which is expected to drive future growth and innovation.
Financial Statements Summary
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Operating Revenue | $1,442.0 million | $1,389.4 million |
| Net Income Attributable to Equifax | $133.1 million | $124.9 million |
| Diluted EPS | $1.06 | $1.00 |
Analysis and Outlook
Equifax's strong performance in the first quarter of 2025 highlights its resilience and strategic focus on innovation and cloud transformation. The company's ability to exceed revenue and EPS estimates, coupled with its commitment to returning value to shareholders through dividends and share repurchases, positions it well for future growth. However, the ongoing challenges in the macroeconomic environment, particularly in the U.S. mortgage market, may pose risks to sustained growth.
We are maintaining our full-year 2025 Guidance midpoint expectation for local currency revenue growth of 6% and adjusted EPS of $7.45 per share," stated Mark W. Begor, Equifax Chief Executive Officer.
Equifax's strategic initiatives, including its focus on new product innovation and leveraging cloud capabilities, are expected to drive higher growth and margins in the coming years, making it a company to watch for value investors.
Explore the complete 8-K earnings release (here) from Equifax Inc for further details.
