Equifax Q2 2026 Earnings Call Transcript

Equifax (NYSE: EFX ) held its second-quarter earnings conference call on Tuesday. Below is the complete transcript from the call. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

7 billion, an 11% increase, and adjusted EPS growth of 13%, beating April guidance. The company signed $300 million in state government contracts, indicating strong commercial momentum and a long runway for growth in government services. Equifax plans to acquire Circulo de Credito in Mexico for $750 million, expected to be accretive in the first year and align with their strategic focus on international expansion. Equifax's AI initiatives are expected to double cost savings from $75 million to $150 million by 2028, enhancing operational efficiency and margin expansion.

Management reaffirmed 2026 guidance, expecting over $1 billion in free cash flow and continued shareholder returns through buybacks and dividends. Full Transcript OPERATOR Greetings and welcome to the Equifax second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I'd now like to turn the call over to your host, Mr. Trevor Burns, Senior Vice President, Investor Relations.

Thank you, sir. Please go ahead. Trevor Burns, Senior Vice President, Investor Relations Thanks and good morning. Welcome to today's conference call.

I'm Trevor Burns. With me today are Mark Begor, Chief Executive Officer, and John Gamble, Chief Financial Officer. Today's call is being recorded. An archive of the recording will be available later today in the IR Calendar section of the News and Events tab at our Investor Relations website.

During the call we will make reference to certain materials that can be found in the Presentation section of the News and Events tab at our IR website. These materials are labeled 2Q 2026 Earnings Conference Call. Also, we'll be making certain forward-looking statements including third quarter and full year 2026 guidance to help you understand Equifax and its business environment. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from our expectations.

Certain risk factors that may impact our business are set forth in our filings with the SEC, including our 2025 Form 10-K and subsequent filings. During this call we will be making certain non-GAAP financial measures including adjusted EPS, adjusted EBITDA, adjusted EBITDA margins and cash conversion which are adjusted for certain items that affect the comparability of our underlying operational performance. All references to EPS, EBITDA, EBITDA margins and cash conversion are references to non-GAAP measures.

During the second quarter we recorded a $40 million charge, net of insurance proceeds, for a legal settlement associated with a resolution of claims related to a previously disclosed coding issue. These non-GAAP measures are detailed in reconciliation tables which are included with our earnings release and can be found in the Financial Results section of the Financial Info tab at our IR website. Now I'd like to turn it over to Mark. Mark Begor, Chief Executive Officer Thanks, Trevor, and good morning.

Turning to slide 4. 7 billion, up 11% on a reported basis and 10% in constant currency, which was $5 million above the April guidance. Excluding FICO mortgage royalties, reported revenue was up about 7%. We also delivered very strong margin performance, driving strong EPS growth of 13%.

5% in the quarter and better than our expectations, principally in Workforce Solutions, benefiting from strong execution in Talent Solutions and consumer lending. EWS government revenue declined slightly in the quarter as expected due to a tough 2025 comp. We were very pleased with the commercial execution in government during the first half, signing principally state government contracts that bring the total in the last four months to about $300 million — about $100 million of the new business that will principally benefit 2027 and $200 million of contract renewals.

This is a strong indicator of the unique benefit our proprietary TWN data provides to government customers and the long runway for government against their $5 billion TAM. USIS diversified markets revenue was slightly better than we expected, accelerating over 300 basis points sequentially, and International revenue was slightly lower than we expected at up 4%, principally reflecting market weaknesses in Canada and the UK. US mortgage revenue was up 25% in the quarter and up 7% ex-FICO. This was stronger than our expectations against a weaker than expected US mortgage market from higher interest rates.

3% when we gave guidance in April. As a result, we saw overall industry transaction volumes run below our expectations that were offset with new products and some share gains. US macroeconomic conditions remain relatively consistent with the environment we saw in April. The ongoing Middle East conflict has resulted in continued higher levels of inflation that has disproportionately pressured the lower income or subprime consumer demographic.

Despite these inflationary pressures, low unemployment continues to support overall consumer health. Continued high employment levels have acted to limit