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Equifax Q2 Earnings & Revenues Surpass Estimates, Increase Y/Y

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Key Takeaways

  • EFX's Q2 adjusted EPS rose 9.9% y/y to $2, topping estimates by 4.2% on $1.5B in revenues, up 7.4%.
  • Workforce Solutions revenues grew 8% to $662.1M and USIS climbed 9% to $521.5M, both beating estimates.
  • EFX lifted Q3 and 2025 revenue and EPS guidance, with 2025 EPS mid-point still below the consensus estimate.

Equifax Inc. (EFX - Free Report) has reported impressive second-quarter 2025 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate.

EFX’s adjusted earnings were $2 per share, surpassing the Zacks Consensus Estimate by 4.2% and increasing 9.9% from the year-ago quarter. Total revenues of $1.5 billion beat the consensus estimate by 1.5% and increased 7.4% on a year-over-year basis.

Equifax shares gained 1.8% in the year-to-date period compared with the 9.7% drop of the industry and  6.5% growth of the Zacks S&P 500 composite.

Equifax, Inc. Price, Consensus and EPS Surprise

 

Equifax, Inc. Price, Consensus and EPS Surprise

Equifax, Inc. price-consensus-eps-surprise-chart | Equifax, Inc. Quote

Segmental Information for EFX

Revenues in the Workforce Solutions segment totaled $662.1 million, rising 8% from the year-ago quarter. The metric surpassed our estimation of $652.8 million. Within the segment, Verification Services’ revenues of $567.1 million increased 10% from the year-ago quarter. Employer Services’ revenues of $95 million dropped 2% on a year-over-year basis.

The USIS segment’s revenues were $521.5 million, up 9% from the year-ago quarter and beat our estimated figure of $509.2 million. Within the segment, Online Information Solutions’ revenues of $457.8 million rose 9% year over year. Financial Marketing Services’ revenues were $63.7 million, increasing 6% from the year-ago quarter.

Revenues in the International division amounted to $353.4 million, up 4% and 6% year over year on a reported and local-currency basis, respectively. The metric missed our estimation of $361.3 million.

Latin America’s revenues of $99.6 million increased 2% from the year-ago quarter on a reported basis and 11% on a local-currency basis. Revenues from Europe amounted to $99.2 million, up 12% on a reported basis and 6% on a local-currency basis. Revenues from the Asia Pacific were $85.3 million, increasing 1% from the year-ago quarter on a reported basis and 4% on a local-currency basis. Canada’s revenues of $69.3 million were flat with the year-ago quarter on a reported basis and gained 1% on a local-currency basis.

Equifax’s Operating Results

Adjusted EBITDA in the second quarter of 2025 amounted to $499.3 million, indicating 9.1% growth on a year-over-year basis. The adjusted EBITDA margin was 32.5%, up 50 basis points from the year-ago quarter.

Workforce Solutions’ adjusted EBITDA margin was 53.3% compared with 52.8% in a year-ago quarter. The adjusted EBITDA margin for the USIS division was 35% compared with 33.2% in the second quarter of 2024. The adjusted EBITDA margin for the international segment was 26.4% in comparison with 25.6% in the year-ago quarter.

EFX’s Balance Sheet & Cash Flow

Equifax exited the second quarter with cash and cash equivalents of $189 million compared with $195.2 million at the end of the first quarter of 2025. The company has a long-term debt of $4.1 billion compared with $4.3 billion in the preceding quarter.

Cash generated by operating activities amounted to $361.1 million, whereas capital expenditure totaled $122.2 million. The company distributed $62 million as dividends in the quarter.

Equifax’s Q3 & 2025 Outlook

For the third quarter of 2025, the company raised its revenue expectation to $1.505-$1.535 billion from the preceding quarter’s view of $1.495-$1.525 billion. The mid-point ($1.52 billion) of the guided range is higher than the Zacks Consensus Estimate of $1.51 billion. EFX hiked the adjusted EPS outlook to $1.87-$1.97 from the preceding quarter’s view of $1.85-$1.95. The mid-point ($1.92) of the guided range is in line with the Zacks Consensus Estimate.

For 2025, Equifax has raised its revenue guidance to $5.97-$6.04 billion from the preceding quarter’s view of $5.91-$6.03 billion. The mid-point ($6.01 billion) of the guided range meets the Zacks Consensus Estimate. The company raised adjusted EPS to $7.33-$7.67 from $7.25-$7.65 provided in the preceding quarter. The mid-point ($7.5) of the guided range is lower than the Zacks Consensus Estimate for earnings of $7.62 per share.

Equifax carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Ranked (Strong Buy) stocks here.

Earnings Snapshot

FactSet (FDS - Free Report) reported the results for the third quarter of fiscal 2025.

FDS’s earnings per share of $4.27 missed the consensus mark by a slight margin and decreased 2.3% from the year-ago quarter. Revenues of $585.5 million beat the Zacks Consensus Estimate by a slight margin and gained 5.9% from the year-ago quarter.

Paychex, Inc. (PAYX - Free Report) posted impressive fourth-quarter fiscal 2025 results.

PAYX’s fiscal fourth-quarter earnings of $1.19 per share beat the Zacks Consensus Estimate by a slight margin and increased 6.3% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by a slight margin and gained 10% from the year-ago quarter.


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