Equifax (EFX 0.17%), a leading provider of consumer credit reporting and data analytics, posted its Q2 2025 earnings on July 22, 2025, covering the period ending June 30. The company reported adjusted EPS (non-GAAP) of $2.00, exceeding the analyst estimate of $1.92, and GAAP revenue of $1.537 billion, topping the $1.51 billion consensus. This performance marked notable growth over last year, as revenue increased 7% and adjusted EPS (non-GAAP) climbed 10%. Overall, the quarter reflected strong operational execution despite continued weakness in U.S. mortgage and hiring markets. However, Equifax kept its full-year 2025 guidance unchanged, highlighting a careful response to economic uncertainty and ongoing macro risks in key end-markets.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Adjusted, Non-GAAP) | $2.00 | $1.92 | $1.82 | 9.9% |
| Revenue | $1.54 billion | $1.51 billion | $1.43 billion | 7.4% |
| Net Income attributable to Equifax | $191.3 million | $163.9 million | 16.7% | |
| Adjusted EBITDA Margin | 32.5% | 32.0% | 0.5 pp |
Source: Equifax. Note: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Success Factors
Equifax operates as a major player in the credit reporting, workforce data, and analytics sector. It aggregates and analyzes vast databases of credit, employment, income, and demographic data. This information supports decision-making across industries, helping clients with lending, hiring, insurance underwriting, and identity verification. Its operations span the U.S. and key international markets.
Recently, the company has placed great emphasis on scaling its data and analytics platforms, transitioning its infrastructure to a proprietary Equifax Cloud, and launching artificial intelligence-powered solutions (EFX.AI). The company’s strategy highlights five core areas: expanding data assets and analytics, accelerating cloud transformation, ensuring regulatory and data security compliance, driving international expansion, and pursuing targeted acquisitions. The most critical elements for Equifax’s success include maintaining the integrity and scale of its proprietary databases, innovating differentiated new products, and sustaining compliance under complex global regulations.
Q2 Performance: Segment Dynamics and Developments
Equifax achieved solid growth across all its main business units. Revenue from Workforce Solutions, which includes The Work Number (TWIN) income and employment verification service, rose 8%. This was driven by 10% growth in verification services—supporting government and lending solutions. For example, a new $50 million amendment with the U.S. Social Security Administration is expected to support additional revenue in the second half of the year.
Employer Services, a subset of Workforce Solutions that helps employers with onboarding, I-9 compliance, and unemployment claims, saw revenue fall 2%. Management attributed this dip to continued softness in U.S. hiring activity, which is expected to persist. Despite the hiring drag, margins in Workforce Solutions expanded, with an operating margin of 46.4% and an adjusted EBITDA margin of 53.3%.
U.S. Information Solutions, which houses Equifax’s core credit bureau and analytics offerings, produced 9% revenue growth, surpassing its longer-term growth range. Mortgage-related revenue within this segment climbed 20%. This robust performance came despite a decline in U.S. mortgage market inquiry volumes, with management citing increased customer adoption of new “twin-powered” credit and employment/income solutions. Non-mortgage lending, including auto loans, also performed well.
International operations generated $353.4 million in GAAP revenue, up 4% (6% in local currency). Latin America and Europe delivered especially strong local currency growth, offsetting weaker performances in Canada. There were margin pressures in the international segment—adjusted EBITDA margin rose modestly to 26.4%, while operating margin slid 1.0 percentage point to 10.9%.
Product Innovation, Platform Progress, and One-Time Items
Equifax advanced its multi-year cloud transformation by leveraging new cloud capabilities to accelerate product innovation. This transition to the Equifax Cloud infrastructure, coupled with innovation from EFX.AI, is enabling new product launches at a faster pace, such as credit files integrated with TWIN employment indicators. The Vitality Index—a metric that measures the proportion of revenue derived from new products—hit 14% company-wide (10% within U.S. credit solutions), surpassing its long-term goal of 10%.
Within its government segment, the $50 million amendment to the Social Security Administration contract is set to increase recurring public sector revenue beginning this quarter. No large acquisitions occurred in the quarter, but management reiterated that “bolt-on” deals remain a priority, particularly for enhancing data assets and supporting international growth. The performance of Boa Vista, a Brazilian credit bureau acquired in 2024, continues to meet expectations and contribute to Latin America revenue.
No material adverse legal or regulatory actions were disclosed for the period. Legal accruals tied to legacy cybersecurity incidents were minor, at $0.4 million, and data security and regulatory compliance remain a top operational focus for management.
The quarterly dividend was raised by 28% to $0.50 per share. In addition, Equifax repurchased $127 million in shares as part of a new $3 billion share repurchase program. Total cash returned to shareholders was $190 million. These steps reflect the company’s shift to a more mature capital allocation approach as large-scale cloud investments steadily wind down.
Financial Outlook and Points to Watch
Looking forward, Equifax provided guidance for the next quarter and full fiscal year. For Q3 2025, management projects reported revenue between $1.505 billion and $1.535 billion, with adjusted EPS expected to range from $1.87 to $1.97 per share. For FY2025, guidance calls for revenue between $5.97 billion and $6.04 billion, and adjusted EPS of $7.33 to $7.63 per share. Local currency revenue growth is forecast at 6.0% at the midpoint. Management did not raise full-year guidance despite strong first-half results, citing uncertainty over U.S. mortgage volumes—expected to decline more than 11% for the full year
Investors should note specific signals for the coming quarters: trends in mortgage and employment market volumes, segment margin performance (especially internationally), and progress on cloud-related efficiency gains. The board plans to grow the dividend in line with earnings over the coming years, maintaining a payout ratio of roughly 25% of adjusted net income. Strategic investments in data, analytics, and select acquisitions will likely continue as key growth drivers. Any future changes in regulatory or compliance status, as well as signs of stabilization or recovery in mortgage or hiring, will shape the outlook for future results.
Note: Revenue and net income are presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
