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Equifax Inc (EFX)

Description

Equifax Inc is a global data analytics and technology company that collects, organizes, and manages various credit, financial, employment, and demographic data to provide information solutions and human-resource outsourcing services to businesses, government agencies, and consumers worldwide.

Historical Reports

Financial Information

Report Date
2025-04-30
Report Period
Q1 2025
Debt
$49.9 billion
Debt History
Debt decreased by 0.95% from December 2024
Debt Trend
Decreasing

Profit Information

Profit
$1.331 billion
Profit History
Profit increased by 6.58% year-over-year
Profit Trend
Increasing

Detailed Report

Equifax Inc Q1 2025 Financial Report

Report Date: 2025-04-30
Period Covered: Three months ended March 31, 2025
Form Type: 10-Q

Executive Summary

  • Total Revenue: $14.420 billion, up 3.8% from $13.894 billion in Q1 2024.
  • Net Income (Equifax share): $1.331 billion, up 6.6% from $1.249 billion.
  • Operating Income: $2.358 billion, up 5.0% from $2.247 billion.
  • Total Debt: $49.897 billion (down 0.95% vs. $50.377 billion at December 2024).
  • EPS (diluted): $1.06 vs. $1.00 in Q1 2024.

Profit & Loss Analysis

  • Revenue Growth Drivers:
    • Workforce Solutions (+2.6%) driven by verification services growth in mortgage and non-mortgage verticals.
    • U.S. Information Solutions (+7.4%) led by mortgage product pricing and strength in financial marketing services.
    • International (+0.7% reported; +6.7% local-currency) with robust growth in Latin America and Asia Pacific.
  • Expense Trends:
    • Cost of services rose $0.29 billion, primarily higher royalty and data-access costs.
    • SG&A increased modestly due to higher personnel costs.
    • Depreciation & amortization up $0.10 billion, reflecting technology transformation spend.
  • Interest & Taxes:
    • Net interest expense fell by $68 million, on lower average debt balances.
    • Effective tax rate rose to 27.8% (from 24.3%), driven by fewer discrete benefits.

Debt & Liquidity

  • Debt Profile: Total debt of ~$49.9 billion with long-term maturity profile through 2037. Revolver availability of $13 billion and $1.952 billion cash on hand provide strong liquidity.
  • Cash Flow: Operating cash flow of $2.239 billion; capex of $1.072 billion; free cash generation supports dividends and buybacks.

Pros & Cons

Pros:

  • Diversified global revenue streams limiting market concentration risk.
  • Strong free cash flow generation enabling shareholder returns and strategic M&A.
  • Leading market share in credit reporting and fraud prevention services.

Cons:

  • Geographic revenue exposed to FX headwinds (–$0.2 billion impact).
  • Ongoing technology transformation raises capital spending and amortization.
  • Regulatory & litigation risk (CFPB inquiry and legacy data-processing matters).

Prepared by Financial Analyst Team

Statistics Breakdown

Segment Revenue Breakdown (Q1 2025 vs. Q1 2024):

• Workforce Solutions: $6.186 B (+2.6%) • U.S. Information Solutions: $4.999 B (+7.4%) • International: $3.235 B (+0.7% reported, +6.7% local currencies)

Total: $14.420 B (+3.8%)

Company Direction Insights

Equifax’s first-quarter performance demonstrates resilient growth across its three core segments and disciplined expense management. With debt levels slightly reduced and robust free cash flow, the company is well-positioned to invest in technology transformation and pursue targeted acquisitions. However, macro-economic uncertainties—particularly FX volatility and interest-rate impacts on consumer credit demand—pose near-term challenges. Key opportunities lie in expanding cloud-based analytics, strengthening identity-theft solutions for consumers, and deepening partnerships in high-growth emerging markets. Continued focus on cost control, regulatory compliance, and innovation will be critical to sustaining the firm’s growth trajectory and maintaining strong returns for shareholders.