EQUIFAX INC

Equifax Inc. is a global data, analytics and technology company that provides information solutions for businesses, governments and consumers, as well as human resources business process automation and outsourcing services for employers. The company operates in four global regions: North America (U.S. and Canada), Latin America (Argentina, Brazil, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru and Uruguay), Europe (the United Kingdom, Spain and Portugal) and Asia Pacific (Australia, New Zealand and India). Equifax maintains support operations in Chile, Costa Rica, India and Ireland and also has investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore. The company's services are based on comprehensive databases of consumer and business information derived from numerous sources including credit, financial assets, telecommunications and utility payments, employment, income, educational history, criminal justice, healthcare professional licensure and sanctions, demographic and marketing data.

The market for Equifax's products and services is highly competitive and subject to constant change. Competitors vary widely in size and in the nature of the products and services they offer. In Verification Services, competition is highly competitive with low barriers to entry and includes employers who manage verifications in-house, lenders who obtain verifications directly from employers, and numerous online and offline firms that provide verification services. Competition for credit information solutions and direct-to-consumer solutions generally includes global consumer credit reporting companies that offer a product suite similar to Equifax's credit information solutions, providers of personal identity theft protection services and providers offering free credit scores. The company's revenue streams are highly diversified with its largest client providing approximately 3% of total revenue. Equifax assesses principal competitive factors to include the ability to protect information and systems; product attributes such as quality, depth, coverage, adaptability, scalability, interoperability, functionality and ease of use; product price; technical performance including system response time and availability; access to unique proprietary data tools; quickness of response, flexibility and client services and support; effectiveness of sales and marketing efforts; existing market penetration; proprietary technology; and new product innovation.

Equifax generates revenue through three operating segments: Workforce Solutions, U.S. Information Solutions (USIS), and International. The Workforce Solutions segment provides services enabling customers to verify income, employment, educational history, criminal justice data, healthcare professional licensure and sanctions of people in the U.S. (Verification Services), as well as providing employer customers with services which include unemployment claims management, I-9 and onboarding services, Affordable Care Act compliance management, tax credits and incentives and other complementary employment-based transaction services (Employer Services). The USIS segment provides consumer and commercial information solutions to businesses in the U.S. including online information, decisioning technology solutions, identity management services, analytical services, e-commerce fraud and charge back protection services, portfolio management services, mortgage information and marketing services. The International segment provides products and services similar to those available in the USIS operating segment but with variations by geographic region, and also provides information, technology and services to support debt collections and recovery management. Revenue streams are diversified with fees generally charged on a per transaction basis for many services, while subscription-based contracts also contribute to revenue.

The Workforce Solutions segment operates in the U.S. through two business units: Verification Services and Employer Services. Verification Services include employment, income, educational history, criminal justice data, healthcare professional licensure and sanctions verification services, with The Work Number being the key employment and income data platform. The Work Number held about 209 million active and 813 million total (active and historic) employment records at December 31, 2025 ¹. Equifax relies on payroll data received from over 4 million organizations to provide up-to-date verifications ². Employer Services include assisting with employment tax matters, comprehensive services for employment-related tax credits, tax form management services, I-9 management services, immigration case management services, onboarding services, and identity theft protection services. For the twelve months ended December 31, 2025, Workforce Solutions total operating revenue was $2,582.3 million ³, with Verification Services contributing $2,179.8 million ⁴ and Employer Services contributing $402.5 million ⁵. The USIS segment provides consumer and commercial information solutions through Online Information Solutions and Financial Marketing Services. Online Information Solutions products are derived from multiple large and comprehensive databases of consumer and commercial information, including credit history, current credit status, payment history, address and other identity information. This segment also includes mortgage solutions products, including specialized credit reports that combine information from the three major consumer reporting agencies into a single tri-merge report, and consumer solutions product suites. Financial Marketing Services products utilize consumer and commercial financial information enabling clients to manage marketing efforts, including targeting and segmentation, and support digital identity verification and fraud detection. For the twelve months ended December 31, 2025, USIS total operating revenue was $2,078.5 million ⁶, with Online Information Solutions contributing $1,821.4 million ⁷ and Financial Marketing Services contributing $257.1 million ⁸. The International segment includes Latin America, Europe, Asia Pacific and Canada business units, offering products similar to USIS with variations by geographic region. For the twelve months ended December 31, 2025, International total operating revenue was $1,413.7 million ⁹, with Latin America contributing $403.4 million ¹⁰, Europe contributing $396.7 million ¹¹, Asia Pacific contributing $342.3 million ¹², and Canada contributing $271.3 million ¹³.

During the twelve months ended December 31, 2025, Equifax acquired a company within the Workforce Solutions operating segment to expand its product offerings. On April 21, 2025, the Board of Directors terminated the existing share repurchase authorization and approved an authorization to repurchase up to $3 billion of shares of common stock ¹⁴. During the twelve months ended December 31, 2025, Equifax repurchased 4,006,173 shares of its common stock on the open market for $927.4 million, excluding brokerage commissions and excise taxes of $8.4 million ¹⁵. At December 31, 2025, approximately $2.1 billion was available for future purchases of common stock under the share repurchase authorization ¹⁶. On April 21, 2025, the Board of Directors approved an increase in the quarterly cash dividend to $0.50 per share beginning in the second quarter of 2025 ¹⁷. Equifax paid out $232.8 million, or $1.89 per share, in dividends to shareholders during 2025 ¹⁸. In the fourth quarter of 2025, Equifax repaid its $400.0 million 2.60% Senior Notes due December 2025 with commercial paper borrowings ¹⁹. In August 2024, Equifax issued $650 million in aggregate principal amount of 4.8% five-year Senior Notes due 2029 ²⁰. In May 2023, Equifax issued $700 million aggregate principal amount of 5.1% five-year Senior Notes due 2028 ²¹. On August 7, 2023, Equifax acquired the remaining interest of its investment in Boa Vista Serviços S.A., a consumer and commercial credit information company in Brazil, for total consideration of approximately $870 million consisting of approximately $510 million in cash, 2,171,615 shares of Equifax do Brasil with a fair value of approximately $176 million, and 479,725 shares of Equifax Inc. common stock with a fair value of approximately $95 million ²². Additionally, Equifax previously owned a 10% investment in BVS with a fair value of approximately $89 million ²³. During the first quarter of 2025, Equifax paid $15.0 million for a settlement associated with the resolution of a matter with the Consumer Financial Protection Bureau ²⁴. Equifax accrued an estimate of $30.0 million related to the resolution of four related class action lawsuits in the fourth quarter of 2025 ²⁵.

For the twelve months ended December 31, 2025, consolidated operating revenue was $6,074.5 million ²⁶, an increase of 7% compared to $5,681.1 million ²⁷ in 2024 and $5,265.2 million ²⁸ in 2023. Consolidated operating income was $1,095.2 million ²⁹ in 2025, compared to $1,042.1 million ³⁰ in 2024 and $933.6 million ³¹ in 2023. Consolidated operating margin was 18.0% ³² in 2025, compared to 18.3% ³³ in 2024 and 17.7% ³⁴ in 2023. Net income attributable to Equifax was $660.3 million ³⁵ in 2025, compared to $604.1 million ³⁶ in 2024 and $545.3 million ³⁷ in 2023. Diluted earnings per share was $5.32 ³⁸ in 2025, compared to $4.84 ³⁹ in 2024 and $4.40 ⁴⁰ in 2023. Cash provided by operating activities was $1,615.7 million ⁴¹ in 2025, compared to $1,324.5 million ⁴² in 2024 and $1,116.8 million ⁴³ in 2023. Capital expenditures were $480.2 million ⁴⁴ in 2025, compared to $495.9 million ⁴⁵ in 2024 and $585.8 million ⁴⁶ in 2023.

Equifax's current planning for 2026 assumes that U.S. economic activity, as measured by GDP, will grow at a rate consistent with 2025, and that economic activity in the international markets in which it operates will grow at levels below those experienced in 2025. The company expects U.S. mortgage credit activity in 2026 to be slightly below the levels of activity seen in 2025. The U.S. mortgage market, particularly the mortgage refinance portion, can be significantly impacted by U.S. interest rates which impact mortgage rates available to consumers. In the international markets in which Equifax operates, planning also assumes that economic activity, as measured by GDP, will generally grow in 2026 at rates below those experienced in 2025.

Equifax's growth strategy includes leveraging its Equifax Cloud capabilities to accelerate innovation, new products and growth. The company's cloud data and technology transformation has changed nearly every facet of its global technology infrastructure, including a migration to a public cloud environment that employs virtual private cloud deployment techniques. Central to the move to cloud-native technology is the custom single data fabric, a cloud native platform that enables Equifax to build, manage and deploy data products, as well as implementation of best-in-class cloud-based tools and capabilities. The cloud infrastructure also allows Equifax to rapidly deploy and integrate artificial intelligence, machine learning and agentic based capabilities to improve products and solutions, as well as internal processes. The growth strategy includes leveraging the cloud data and technology transformation to accelerate innovation and new product development, deliver market-leading capabilities to customers, facilitate customer and partner implementation and integration, improve ease of consumer access to and interaction with Equifax, and strengthen system resiliency and uptime. Equifax also aims to leverage and expand its differentiated portfolio of data assets, using proprietary advanced analytical platforms including capabilities in machine learning, artificial intelligence and advanced visualization tools to develop leading analytical insights that enhance the precision of customers' decisioning activities.

Equifax's strategy includes executing strategic acquisitions that expand its data portfolio and capabilities and drive revenue growth. The company's acquisition priorities are focused on re-investing in acquisitions that expand its unique differentiated data assets and solutions to strengthen and grow its core businesses. Equifax continues to invest, including through acquisitions and partnerships, to expand its addressable markets and the data and capabilities it offers to solve customer challenges across the services it provides and to expand its access to differentiated data including across identity authentication, fraud mitigation and risk management. The company believes there are opportunities to continue to expand in the U.S. and internationally, across the existing financial, mortgage, telecommunications, automotive, insurance, talent management, human resource services, government and other markets that it serves, as well as in new and emerging market segments.

Equifax's operating margin decreased by 0.3 percentage points in 2025 versus 2024, primarily due to higher royalty, revenue share and purchased data and information costs, as well as increased amortization of capitalized internal-use software costs resulting from technology transformation capital spending incurred previously. The increase in operating expenses was partially offset by higher reported revenue. The company expects spending related to capital expenditures for the next twelve months to be down from current levels. General corporate expense increased $107.2 million in 2025 compared to 2024, primarily due to higher people costs which was primarily due to higher incentive plan costs, as well as higher litigation expense, an accrual for a settlement associated with the resolution of four related class action lawsuits and increased depreciation and amortization of capitalized internal-use software costs.

Equifax expects to continue investing in sales, marketing, new product development, security and its technology, as well as continue to make strategic acquisitions that align with its business strategy. Additions to property and equipment will continue in order to support growth in new product development and the completion of its technology transformation, although spending related to capital expenditures for the next twelve months is expected to be down from current levels. The company anticipates continuing the payment of quarterly cash dividends, though the actual amount of such dividends is subject to declaration by the Board of Directors and will depend upon future earnings, results of operations, capital requirements, financial condition and other relevant factors. At December 31, 2025, approximately $2.1 billion was available for future purchases of common stock under the share repurchase authorization ⁴⁷.

Equifax remains in a period of economic uncertainty in the U.S. and its global markets, including uncertainty regarding expectations for inflation and interest rates. The direction of global economies, inflation and interest rates will have an impact on demand for its services. Any weakening in the U.S. mortgage market resulting in a significant reduction in mortgage originations could have a corresponding negative impact on revenue and operating profit for the business, primarily within the Workforce Solutions and USIS operating segments. To the extent inflation results in higher interest rates and has other adverse effects upon the securities markets and upon the value of financial instruments, it may adversely affect the company's financial position and profitability. Increases in U.S. interest rates may also negatively impact the U.S. mortgage market, which may adversely affect the company's revenue, financial position and profitability. The company's current planning for 2026 assumes that U.S. economic activity, as measured by GDP, will grow at a rate consistent with 2025, and that economic activity in the international markets in which it operates will grow at levels below those experienced in 2025.

Equifax faces various risks related to health epidemics, pandemics and similar outbreaks, which may adversely impact the global economy and lead to reduced consumer spending and lending activities. The company's customers, and therefore its business and revenues, are sensitive to negative changes in general economic conditions that may result from a pandemic or similar event. Additionally, the company's reputation and/or business could be negatively impacted by stakeholder responses to its responsible business priorities and commitments and its reporting of such matters. Equifax has announced commitments to reduce its greenhouse gas emissions, the achievement of which relies, in large part, on the accuracy of its estimates and assumptions around the availability and cost of renewable energy sources and technologies, the availability of suppliers that can meet its sustainability and other standards, and other factors.

Equifax faces significant technology and data security risks, as it is routinely the target of attempted cyber and other security threats by outside third parties, including technically sophisticated and well-resourced bad actors. The company experienced a material cybersecurity incident in 2017 that resulted in damage to its reputation and customer relationships, and if it experiences additional breaches, sensitive data may be accessed, stolen, disclosed or lost, which could subject it to significant litigation, regulatory fines or penalties. The company's use of cloud-based technologies exposes it to additional cyber threats, as most of its data has migrated from legacy systems to cloud-based solutions hosted by third parties. Equifax also faces risks related to the failure to realize the anticipated benefits of its technology transformation, which has been a major undertaking involving the replacement of most of its previous operating systems with cloud-based systems. The company's markets are highly competitive, and new products, pricing strategies and business models introduced by competitors, as well as regulatory changes, could decrease sales and market share. Equifax is subject to extensive U.S. federal, state, local and foreign laws and regulations relating to consumer financial protection, data protection, data privacy, artificial intelligence and cybersecurity, and compliance with these laws may cause it to incur significant expenses and change its business practices. The CFPB has supervisory authority over Equifax's U.S. business and may initiate enforcement actions, and the company has previously been subject to CFPB enforcement actions resulting in monetary penalties. The FCRA contains an attorney fee shifting provision that provides an incentive for consumers to bring individual and class action lawsuits, and the number of consumer lawsuits against Equifax alleging FCRA violations has increased substantially over the past several years.

Management's message emphasizes Equifax's vision to be a trusted global leader in data, analytics and technology that creates innovative solutions and insights for customers. The business strategy is driven by several key imperatives: leveraging Equifax Cloud capabilities to accelerate innovation, new products and growth; leveraging and expanding the differentiated portfolio of data assets; fostering a culture of putting customers and consumers first; executing strategic acquisitions that expand the data portfolio and capabilities and drive revenue growth; continuing leadership in data security; and building a world-class Equifax team by investing in talent. Management's current planning for 2026 assumes that U.S. economic activity, as measured by GDP, will grow at a rate consistent with 2025, and that economic activity in the international markets in which the company operates will grow at levels below those experienced in 2025. The company expects U.S. mortgage credit activity in 2026 to be slightly below the levels of activity seen in 2025. Management focuses on a variety of key indicators to monitor operating and financial performance, including operating revenue, change in operating revenue, operating income, operating margin, net income, diluted earnings per share, cash provided by operating activities and capital expenditures. For the twelve months ended December 31, 2025, key performance indicators included operating revenue of $6,074.5 million ⁴⁸, operating income of $1,095.2 million ⁴⁹, operating margin of 18.0% ⁵⁰, net income attributable to Equifax of $660.3 million ⁵¹, diluted earnings per share of $5.32 ⁵², cash provided by operating activities of $1,615.7 million ⁵³, and capital expenditures of $480.2 million ⁵⁴.