Q1 2025 Equifax Inc Earnings Call

April 22, 2025

Operator: Greetings and welcome to the Equifax Inc. Q1 2025 earnings conference call. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press 0 on your telephone keypad. A question and answer session will follow the formal presentation. You may be placed into the question queue at any time by pressing star 1 on your telephone keypad, and we ask you, please, limit yourselves to one question and one follow-up, and return to the queue. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Trevor Burns, Senior Vice President, Head of Corporate Investor Relations. Trevor, please go ahead.

Speaker Change: Greetings and welcome to the Equifax Inc Q1 2025 Earnings Conference call!

Speaker Change: At this time, more participants are listening only mode. If anyone should require operator assistance, please press star zero on your telephone keypad.

A question, answer session, we'll follow the formal presentation.

Speaker Change: You may be placed into question, queued any time by pressing star one on your telephone keypad, and we ask you please let me yourself to one question and one follow-up then return to the queue. As a reminder this conference is being recorded.

Speaker Change: It's not my pleasure to throw the Cove into your host, Trevor Burns, Senior Vice President, Head of Corporate Investor Relations. Trevor, please go ahead.

Trevor Burns: 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 IR website. During the call we'll be making 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 Q1 2025 Earnings Conference Call. Also, we'll be making certain forward looking statements including Q2 and full year 2025 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.

Speaker Change: Thanks, and good morning. Welcome to today's conference hall, I'm Trevor Burns, with me today or Mark Begor, Chief Executive, Officer, John Gamble, Chief, Officer.

Speaker Change: Today's call is being reported, and our account of the reporting will be available later today, the IR calendar section of the news and events tab at our IR website.

Speaker Change: During the call, we're making reverence to certain materials that can be found in the presentation section of the music events tab at our IR website. These materials are labeled 1-Q-25-5 Rajin's Hawkins call.

Speaker Change: Also, we're making certain poor looking statements, including second quarter and bull year 2020-25 guidance. They'll be understandable facts and its business environment.

Speaker Change: These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from our expectations.

Trevor Burns: Certain risk factors that may impact our business are set forth in filings with the SEC, including 2024 Form 10-K and subsequent filings. We will also be referring to certain non-GAAP financial measures including adjusted EPS, adjusted EBITDA through cash conversion, which will be adjusted for certain items that affect the comparability of our underlying operational performance. 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.

Certain risk factors that may impact our business are set forth in filings with the SEC, including 2024 Form 10-K and subsequent filings. We will also be referring to certain non-GAAP financial measures including adjusted EPS, adjusted EBITDA through cash conversion, which will be adjusted for certain items that affect the comparability of our underlying operational performance. 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.

Speaker Change: Certain respectors that may and vector business are self-worth [inaudible]

Speaker Change: to the filings of the SEC, including to my 23rd form 10K and subsequent filings.

Speaker Change: He will also be replaced by three non-gathential measures, including adjusted EPS and adjusted EBITDA.

Lucas Conversion,

Speaker Change: which will be suggested from certain items that affect the comparability.

Speaker Change: Peace Non-Gam, Ezra's Retail Direct Insiliation Tables, which are included with our orange release and can be found in the financial results section.

Philip, the Financial Info Tatum, and our IR website. Thank you.

Mark Begor: Thanks, Trevor. Turning to Slide 4, Equifax is off.

Speaker Change: Now it's time to turn it over to Mark. Thanks Trevor. Parrington Slide 4, Equifax is off to a very strong start in 2025 with revenue of 1.442 billion, a 4% reported, and 5% in constant dollars, and 37 million dollars above the midpoint of our February guidance. Now it's time to turn it over to Mark. It's time to turn it over to Mark. It's time to turn it over.

Mark Begor: To a very strong start in 2025.

To a very strong start in 2025.

Mark Begor: With revenue of $1.442 billion, 4% reported, and 5% in constant dollars, and $37 million above the midpoint of our February guidance. The revenue strength was broad-based with about 2/3 in non-mortgage verticals led by USIS. Mortgage was also stronger than our expectations in the quarter, particularly in USIS with over half of this strength from improved penetration and performance of our mortgage pre-qual and pre-approval products and a market that was about 400 basis points above our February framework. Adjusted EPS of $1.53 per share was $0.15 above the midpoint of our February guidance from the higher revenue growth and improved margins, and we ended March with debt leverage of two and a half turns, which is our long-term goal. Team also continued to execute very well.

With revenue of $1.442 billion, 4% reported, and 5% in constant dollars, and $37 million above the midpoint of our February guidance. The revenue strength was broad-based with about 2/3 in non-mortgage verticals led by USIS. Mortgage was also stronger than our expectations in the quarter, particularly in USIS with over half of this strength from improved penetration and performance of our mortgage pre-qual and pre-approval products and a market that was about 400 basis points above our February framework. Adjusted EPS of $1.53 per share was $0.15 above the midpoint of our February guidance from the higher revenue growth and improved margins, and we ended March with debt leverage of two and a half turns, which is our long-term goal. Team also continued to execute very well.

Speaker Change: The revenue strength was broad based with about two-thirds in non-mortgage verticals led by USIS.

Speaker Change: Mortgage was also stronger than our expectations in the quarter, particularly in USIS, with over half of this strength for improved penetration and performance of our mortgage pre-qual and pre-approval products, and a market that was about 400 basis points above our February framework.

Speaker Change: Adjusted EPS of $1.53 per share was 15 cents above the midpoint of February guidance from the higher revenue growth and improved margins.

Speaker Change: and we ended March with debt leverage of two and a half turns which is our long-term goal.

Mark Begor: Against our EFX 2027 strategic priorities as.

Against our EFX 2027 strategic priorities as.

Speaker Change: Team also continue to execute very well against our EFX 2027 Strategic Priorities as we pivot from building the Equifax Cloud to leveraging our new Cloud capabilities to drive innovation, new products and growth. [inaudible]

Mark Begor: We pivot from building the Equifax Cloud to leveraging our new Cloud capabilities to drive innovation, new products, and growth. Our strong first quarter is a proof point to the power of the Equifax Cloud as our team can now fully focus on growth, innovation, and customers. We launched our first ever OnlyEquifax solution in mortgage that provides key employment and income information powered by the scale of The Work Number along with the USIS mortgage credit file. A first-to-market mortgage solution that allows lenders to instantly obtain information about both the mortgage and applicant's creditworthiness and the application's employment and income status. With a single data request from Equifax, we are seeing strong customer demand for this unique solution.

We pivot from building the Equifax Cloud to leveraging our new Cloud capabilities to drive innovation, new products, and growth. Our strong first quarter is a proof point to the power of the Equifax Cloud as our team can now fully focus on growth, innovation, and customers. We launched our first ever OnlyEquifax solution in mortgage that provides key employment and income information powered by the scale of The Work Number along with the USIS mortgage credit file. A first-to-market mortgage solution that allows lenders to instantly obtain information about both the mortgage and applicant's creditworthiness and the application's employment and income status. With a single data request from Equifax, we are seeing strong customer demand for this unique solution.

Speaker Change: Our strong first quarter is a proof point to the power of the Equifax Cloud as our team can now fully focus on growth, innovation, and customers .

Speaker Change: We launched our first ever Only Equifax Solution in Mortgage that provides key employment and income information powered by the scale of the work number along with the USIS Mortgage Credit File.

Speaker Change: A first two-market mortgage solution that allows lenders to instantly obtain information about both the mortgage applicants' credit worthiness and the application's employment and income status with a single data request from Equifax. We are seeing strong customer demand for this unique solution.

Mark Begor: We plan to launch TWN-powered solutions for the auto and P loan verticals later this year, where both credit and income verifications are integral to the credit underwriting. EWS Q1 revenue was better than our expectations, driven by talent and government. The EWS team also delivered EBITDA margins of over 50%, also better than our expectations. There's a clear change in Washington around social service and tax integrity, waste and abuse, which we view as a positive macro for workforce solutions in the quarter. EWS continued the expansion of its use cases in the federal government as they completed an amended agreement with the SSA for annual revenue of about $50 million. The amendment allows SSA to begin ramping the use of a TWN solution that delivers monthly income and employment information for individuals applying for or currently receiving disability benefits from SSA.

We plan to launch TWN-powered solutions for the auto and P loan verticals later this year, where both credit and income verifications are integral to the credit underwriting. EWS Q1 revenue was better than our expectations, driven by talent and government. The EWS team also delivered EBITDA margins of over 50%, also better than our expectations. There's a clear change in Washington around social service and tax integrity, waste and abuse, which we view as a positive macro for workforce solutions in the quarter. EWS continued the expansion of its use cases in the federal government as they completed an amended agreement with the SSA for annual revenue of about $50 million. The amendment allows SSA to begin ramping the use of a TWN solution that delivers monthly income and employment information for individuals applying for or currently receiving disability benefits from SSA.

Speaker Change: We plan to launch twin-powered solutions for the auto and p-loan verticals later this year, where both credit and income verifications are integral to the credit underwriting.

Speaker Change: EWS first quarter revenue was better than our expectations driven by talented government.

Speaker Change: The EWS team also delivered EBITDA margins of over 50% also better than our expectations .

Speaker Change: And there's a clear change in Washington around social service and tax integrity, waste and abuse, which we view as a positive macro for workforce solutions.

Speaker Change: In the quarter, EWS continued the expansion of its use cases in the federal government as they completed an amended agreement with the SSA for annual revenue of about $50 million dollars.

Speaker Change: The amendment allows SSA to begin ramping the use of a twin solution that delivers monthly income and employment information for individuals applying for, or currently receiving, disability benefits from SSA.

Mark Begor: We are ramping up our engagement in Washington as the new administration gets in place. The EWS team also continued its strong momentum of TWN records penetration, adding 3 million active records to the TWN database and ending the quarter with 191 million active records, up 11%, and 751 million total records, up 12%. This is a very strong performance given the normal attrition in the first quarter from seasonal fourth quarter hiring. In the first quarter EWS signed agreements with three new partners, which adds to the 15 signed last year and over 50 since the beginning of 2021. We expect these new partnerships to drive TWN record growth and EWS revenue growth in 2025. We have a long runway of records growth against the 225 million income producing Americans versus the 138 million unique records we have today.

We are ramping up our engagement in Washington as the new administration gets in place. The EWS team also continued its strong momentum of TWN records penetration, adding 3 million active records to the TWN database and ending the quarter with 191 million active records, up 11%, and 751 million total records, up 12%. This is a very strong performance given the normal attrition in the first quarter from seasonal fourth quarter hiring. In the first quarter EWS signed agreements with three new partners, which adds to the 15 signed last year and over 50 since the beginning of 2021. We expect these new partnerships to drive TWN record growth and EWS revenue growth in 2025. We have a long runway of records growth against the 225 million income producing Americans versus the 138 million unique records we have today.

Speaker Change: We are ramping up our engagement in Washington as the new administration gets in place.

Speaker Change: The U.S. Team also continued its strong momentum of twin records penetration, adding 3 million active records to the twin database, ending the quarter with 191 million active records, up 11% and 751 million total records of 12%

Speaker Change: This is a very strong performance given the normal attrition in the first quarter from seasonal fourth quarter hiring.

Speaker Change: In the first quarter, EWS signed agreements with three new partners which adds to the 15 signed last year and over 50 since the beginning of 2021

Speaker Change: We expect these new partnerships to drive twin record growth and EWS revenue growth in 2025. We have a long runway of records growth against the 225 million income producing Americans versus the 138 million unique records we have today.

Mark Begor: USIS had a very strong quarter with total revenue growth of 7%, well within their 6% to 8% long-term revenue growth framework and above our expectations. Non-mortgage growth was also strong at about 6%. The USIS team has pivoted from building the cloud in 2024 to being fully focused on customers, innovation, new products, and growth. They have strong momentum and are winning in the marketplace. In International, the team delivered almost 7% constant currency revenue growth and completed transformation activities in Spain, and we made very good progress in new product introductions in the quarter with a Vitality Index of 11%, which was 100 basis points above our long-term framework. We expect some acceleration in Vitality during the balance of 2025, and EFX AI is powering our new solutions, leveraging our scale and unique data in our Single Data Fabric.

USIS had a very strong quarter with total revenue growth of 7%, well within their 6% to 8% long-term revenue growth framework and above our expectations. Non-mortgage growth was also strong at about 6%. The USIS team has pivoted from building the cloud in 2024 to being fully focused on customers, innovation, new products, and growth. They have strong momentum and are winning in the marketplace. In International, the team delivered almost 7% constant currency revenue growth and completed transformation activities in Spain, and we made very good progress in new product introductions in the quarter with a Vitality Index of 11%, which was 100 basis points above our long-term framework. We expect some acceleration in Vitality during the balance of 2025, and EFX AI is powering our new solutions, leveraging our scale and unique data in our Single Data Fabric.

Speaker Change: USIS had a very strong quarter with total revenue growth of 7% well within their 6 to 8% long-term revenue growth framework and above our expectations

Non-mortgage growth was also strong at about 6% .

Speaker Change: The USIS team is pivoted from building the cloud in 2024 to being fully focused on customers, innovation, new products, and growth. They have strong momentum and are winning in the marketplace .

Speaker Change: In international, the team delivered almost 7% Concentre Currency Revenue Growth and completed transformation activities in Spain

Speaker Change: and we made very good progress in new product introductions in the quarter with a vitality index of 11%, which was a hundred basis points above our long term framework. [inaudible]

Speaker Change: We expect some acceleration in vitality during the balance of 2025, and dfx.ai is powering our new solutions, leveraging our scale and unique data in our single data fabric

Mark Begor: Q1 was also a very strong start to 2025 across all bus, particularly in non-mortgage and with our USIS mortgage pre-approval and pre-qual products the team is executing very well. We are clearly in a period of significant economic and market volatility, principally from uncertainty around tariffs and their impact on US inflation and interest rates. Given the strength in the Q1 and our current run rates in key verticals, we would normally be increasing our 2025 revenue and Adjusted EPS guidance. But given the significant uncertainty in the economy and with consumer and corporate confidence, we are maintaining our 2025 guidance at the levels we provided to you in February. We remain very confident in the Equifax long-term growth model to drive consistent revenue growth, margin expansion, and strong free cash flow with consistent return of cash to shareholders.

Q1 was also a very strong start to 2025 across all bus, particularly in non-mortgage and with our USIS mortgage pre-approval and pre-qual products the team is executing very well. We are clearly in a period of significant economic and market volatility, principally from uncertainty around tariffs and their impact on US inflation and interest rates. Given the strength in the Q1 and our current run rates in key verticals, we would normally be increasing our 2025 revenue and Adjusted EPS guidance. But given the significant uncertainty in the economy and with consumer and corporate confidence, we are maintaining our 2025 guidance at the levels we provided to you in February. We remain very confident in the Equifax long-term growth model to drive consistent revenue growth, margin expansion, and strong free cash flow with consistent return of cash to shareholders.

Speaker Change: First quarter was also a very strong start to 2025 across all be used, particularly in non-mortgage and with our USIS mortgage pre-approval and pre-qual products. The team is executing very well.

Speaker Change: We are clearly a period of significant economic and market volatility, principally from uncertainty around tariffs and their impact on US inflation and interest rates.

Speaker Change: Given the strength in the first quarter in our current run rates and key verticals, we would normally be increasing our 2025 revenue and adjusted EPS guidance.

Speaker Change: But given the significant uncertainty in the economy and with consumer and corporate confidence, we are maintaining our 2025 guidance at the levels we provided to you in February .

Speaker Change: We remain very confident in the Equifax long-term growth model to drive consistent revenue growth, margin expansion, and strong free cash flow with consistent return of cash to shareholders and holders.

Mark Begor: We expect our business model to be resilient during periods of economic weakness, and our confidence was reinforced by our very strong performance in the quarter both financially and in the strong execution against our EFX 2027 strategic priorities. Turning to Slide 5, as we complete the EFX cloud, we are driving top line, expanding margins, and accelerating free cash flow while lowering the capital intensity of our business. We expect to generate about $900 million of free cash flow this year with a cash conversion approaching 95%, which aligns with our long term framework. Our new long term capital allocation framework is aligned with our EFX 2027 long term growth strategy to number one, maintain a strong investment grade balance sheet and credit ratings to weather economic events in the future.

We expect our business model to be resilient during periods of economic weakness, and our confidence was reinforced by our very strong performance in the quarter both financially and in the strong execution against our EFX 2027 strategic priorities. Turning to Slide 5, as we complete the EFX cloud, we are driving top line, expanding margins, and accelerating free cash flow while lowering the capital intensity of our business. We expect to generate about $900 million of free cash flow this year with a cash conversion approaching 95%, which aligns with our long term framework. Our new long term capital allocation framework is aligned with our EFX 2027 long term growth strategy to number one, maintain a strong investment grade balance sheet and credit ratings to weather economic events in the future.

Speaker Change: We expect our business model to be resilient during periods of economic weakness and our confidence with reinforced by our very strong performance in the quarter, both financially and in a strong execution against our EFX 2027 strategic priorities.

Speaker Change: Turning to slide five, as we complete the EFX Cloud, we are driving top line, expanding margins, and accelerating free cash flow, while lowering the capital intensity of our business.

Speaker Change: We expect to generate about $900 million of free cash flow this year with a cash conversion approaching 95% which aligns with our long-term framework.

Speaker Change: Our new long-term capital allocation framework is aligned with our EFX 2027 long-term growth strategy to number one, maintaining a strong investment grade balance sheet and credit ratings to weather economic events in the future.

Mark Begor: Second, to continue to invest in Equifax growth, prioritizing high-return capital investments to support new product innovation and to continue to accelerate EFX Cloud completion. We expect CapEx at about 6% to 7% of revenue as our new cloud-native infrastructure is much less capital intensive. Third, to continue to execute our bolt-on M&A strategy at one to two points of revenue growth focused on bolt-on acquisitions, aligned with our strategic priorities around unique data assets, strengthening workforce solutions, identity and fraud, and new international platforms like Boa Vista. Last, our new capital allocation plan delivers consistent returns of capital to shareholders while maintaining our strong balance sheet. We plan to grow our dividend in line with earnings and return excess cash through our share repurchase program to reduce shares outstanding.

Second, to continue to invest in Equifax growth, prioritizing high-return capital investments to support new product innovation and to continue to accelerate EFX Cloud completion. We expect CapEx at about 6% to 7% of revenue as our new cloud-native infrastructure is much less capital intensive. Third, to continue to execute our bolt-on M&A strategy at one to two points of revenue growth focused on bolt-on acquisitions, aligned with our strategic priorities around unique data assets, strengthening workforce solutions, identity and fraud, and new international platforms like Boa Vista. Last, our new capital allocation plan delivers consistent returns of capital to shareholders while maintaining our strong balance sheet. We plan to grow our dividend in line with earnings and return excess cash through our share repurchase program to reduce shares outstanding.

Speaker Change: Second, to continue to invest in Equifax Growth, prioritizing high-return capital investments to support new product innovation and to continue to accelerate EFX Cloud Completion

Speaker Change: We expect CAPAX at about six to seven percent of revenue as our new cloud native infrastructure is much less capital intensive [inaudible]

Speaker Change: Third, to continue to execute our both-on M&A strategy at one to two points of revenue growth focused on both-on acquisitions aligned with our strategic priorities around unique data assets, strengthening workforce solutions, identity and fraud, and new international platforms like Boavista.

Speaker Change: In last, our new capital allocation plan delivers consistent returns of capital to shareholders while maintaining our strong balance sheet. We plan to grow our dividend in line with earnings and return excess cash to our reportious program to reduce shares outstanding.

Mark Begor: This week the Equifax Board of Directors approved a 28% increase in our quarterly dividend to $0.50 per share and authorized a new $3 billion four-year share repurchase program. This new capital allocation framework is a big milestone for Equifax after our big investments in the Equifax Cloud over the past five years. The 28% increase in our dividend reflects our confidence in the new Equifax business model and moves our payout ratio to about 25% of 2025 Adjusted net income. Going forward, we plan to increase dividends annually in line with earnings, generally in the first quarter of each year, and about in line with the expected growth in Adjusted EPS with a range of 5 to 15%.

This week the Equifax Board of Directors approved a 28% increase in our quarterly dividend to $0.50 per share and authorized a new $3 billion four-year share repurchase program. This new capital allocation framework is a big milestone for Equifax after our big investments in the Equifax Cloud over the past five years. The 28% increase in our dividend reflects our confidence in the new Equifax business model and moves our payout ratio to about 25% of 2025 Adjusted net income. Going forward, we plan to increase dividends annually in line with earnings, generally in the first quarter of each year, and about in line with the expected growth in Adjusted EPS with a range of 5 to 15%.

Speaker Change: This week, the Equifax Board of Directors approved a 28% increase in our quarterly dividend to $0.50 per share and authorize a new $3 billion $4-year share repurchase program.

Speaker Change: This new capital allocation framework is a big milestone for Equifax after our big investments in the Equifax cloud over the past five years.

Speaker Change: The 28% increase in our dividend reflects our confidence in the new Equifax business model and moves our payout ratio to about 25% of 2025 adjusted net income.

Speaker Change: Going forward, we plan to increase dividends annually in line with earnings, generally in the first quarter of each year, and about in line with the expected growth and adjusted EPS, with a range of 5-15%

Mark Begor: Our new $3 billion share repurchase program announced today reflects repurchases we expect to make under normal market conditions to be completed over the next four years while continuing to maintain a strong balance sheet, continue to invest in Equifax through CapEx and bolt-on acquisitions, and consistently grow our dividend in the future. We intend to be in the market consistently during EFX trading windows and will flex up share repurchases during periods of stock dislocations and flex repurchase levels up or down based on bolt-on M&A activity, and as free cash flow accelerates in the future from operating leverage and lower CapEx spending and as the mortgage market recovers, we expect to increase the level of cash we return to shareholders versus our share repurchase program.

Our new $3 billion share repurchase program announced today reflects repurchases we expect to make under normal market conditions to be completed over the next four years while continuing to maintain a strong balance sheet, continue to invest in Equifax through CapEx and bolt-on acquisitions, and consistently grow our dividend in the future. We intend to be in the market consistently during EFX trading windows and will flex up share repurchases during periods of stock dislocations and flex repurchase levels up or down based on bolt-on M&A activity, and as free cash flow accelerates in the future from operating leverage and lower CapEx spending and as the mortgage market recovers, we expect to increase the level of cash we return to shareholders versus our share repurchase program.

Speaker Change: Our new $3 billion share of a purchase program announced today reflects our purchases we expect to make under normal market conditions to be completed over the next four years. While continuing to maintain a strong balance sheet, continue to invest in Equifax through CAPEX and both on acquisitions.

and consistently grow our dividend in the future.

Speaker Change: We intend to be in the market consistently during EFX trading windows, and we'll flex up share of purchases during periods of stock dislocations, and flex repurchase levels up or down based on bolt-on M&A activity.

Speaker Change: and as free cash flow accelerates in the future from operating leverage and lower cap expending and as the mortgage market recovers we expect to increase the level of cash we return to shareholders versus our share repurchase program. .

Mark Begor: Between both the increased dividend and the $3 billion share repurchase program, we expect to return about $1 billion a year in cash to shareholders annually over the next four years. With the return to shareholders growing as we grow our business in the future, we are energized to be entering this new phase of Equifax with higher free cash generation and lower capital intensity and with significant excess free cash flow and leverage to return cash to our shareholders. Turning to Slide 6, our first quarter results were much better than our expectations with revenue and Adjusted EPS well above the top end of our February guidance range. Adjusted EBITDA margins of 29.3% were up 20 basis points from last year and about 80 basis points better than expected with EWS margins above 50%. Relative to our February framework, non-mortgage drove about 2/3 of the revenue outperformance.

Between both the increased dividend and the $3 billion share repurchase program, we expect to return about $1 billion a year in cash to shareholders annually over the next four years. With the return to shareholders growing as we grow our business in the future, we are energized to be entering this new phase of Equifax with higher free cash generation and lower capital intensity and with significant excess free cash flow and leverage to return cash to our shareholders. Turning to Slide 6, our first quarter results were much better than our expectations with revenue and Adjusted EPS well above the top end of our February guidance range. Adjusted EBITDA margins of 29.3% were up 20 basis points from last year and about 80 basis points better than expected with EWS margins above 50%. Relative to our February framework, non-mortgage drove about 2/3 of the revenue outperformance.

Speaker Change: Between both the increased dividend and a $3 billion share repurchase program, we expect to return about $1 billion a year in cash to shareholders annually over the next four years with the return to shareholders growing as we grow our business in the future.

Speaker Change: We are energized to be entering this new phase of Equifax with higher free cash generation and lower capital intensity and with significant excess free cash flow and leverage to return cash to our shareholders.

Speaker Change: Turning to slide six, our first quarter results were much better than our expectations with revenue and adjusted DPS well above the top end of our February guidance range.

Speaker Change: Adjusted EBITDA margins of 29.3% were up 20 basis points from last year and about 80 basis points better than expected, with EWS margins above 50%.

Speaker Change: Relative to our February framework, non-mortgage drove about two-thirds of the revenue outperformance.

Mark Begor: Our global non-mortgage businesses grew about 5% in constant currency from stronger than expected growth in USIS from strength in card and auto, as well as in EWS in both talent and consumer lending. Mortgage revenue was up 7% in the quarter and drove about 1/3 of the outperformance in total Equifax revenue versus our February framework. This outperformance versus guidance was predominantly in USIS as we saw both stronger performance in our mortgage pre-qual and pre-qualification products, as well as an improvement of about 400 basis points in the mortgage market that was down 9% versus our -13% framework. For the first quarter, mortgage rates declined about 30 basis points in late February and March to about 6.7%, and that delivered some improved mortgage hard inquiry performance during that period, which reflects the mortgage market's sensitivity to interest rates.

Our global non-mortgage businesses grew about 5% in constant currency from stronger than expected growth in USIS from strength in card and auto, as well as in EWS in both talent and consumer lending. Mortgage revenue was up 7% in the quarter and drove about 1/3 of the outperformance in total Equifax revenue versus our February framework. This outperformance versus guidance was predominantly in USIS as we saw both stronger performance in our mortgage pre-qual and pre-qualification products, as well as an improvement of about 400 basis points in the mortgage market that was down 9% versus our -13% framework. For the first quarter, mortgage rates declined about 30 basis points in late February and March to about 6.7%, and that delivered some improved mortgage hard inquiry performance during that period, which reflects the mortgage market's sensitivity to interest rates.

Speaker Change: Our global non-borgot business has grew about 5% in constant currency from stronger than expected growth in U.S.I.S., from Strength and Cardinato, as well as in EWS in both talent and consumer lending.

Speaker Change: Mortgage Revenue was up 7% in the quarter and drove about a third of the outperformance in total Equifax revenue versus our February framework.

Speaker Change: This outperformance versus guidance was predominantly in USIS as we saw both stronger performance in our mortgage pre-qual and pre-qual qualification products, as well as an improvement of about 400 basis points in the mortgage market, it was down 9% versus our minus 13% framework for the first quarter. [inaudible]

Speaker Change: Mortgage rates declined about 30 basis points in late February and March to about 6.7% that delivered some improved mortgage hard inquiry performance during that period, which reflects the mortgage market sensitivity to interest rates.

Mark Begor: We believe this improvement was likely led by higher mortgage refi activity off the lower mortgage rates. US mortgage revenue was about 20% of Equifax revenue in the quarter. In the first quarter, USIS mortgage revenue was up a strong 11% and outperformed underlying USIS hard credit inquiries by 20%, again driven by pricing pass through as well as the stronger performance in our mortgage pre-qual and pre-approval solutions. EWS mortgage revenue was up over 3%, marginally stronger than our expectations from stronger volumes in a down market. Over the last several weeks we've seen declines in mortgage activity from higher interest rates. We expect to see continued impacts on mortgage activity until there is some stability in Washington. Based on current trends and the overall current economic and market uncertainty, we're maintaining our 2025 US.

We believe this improvement was likely led by higher mortgage refi activity off the lower mortgage rates. US mortgage revenue was about 20% of Equifax revenue in the quarter. In the first quarter, USIS mortgage revenue was up a strong 11% and outperformed underlying USIS hard credit inquiries by 20%, again driven by pricing pass through as well as the stronger performance in our mortgage pre-qual and pre-approval solutions. EWS mortgage revenue was up over 3%, marginally stronger than our expectations from stronger volumes in a down market. Over the last several weeks we've seen declines in mortgage activity from higher interest rates. We expect to see continued impacts on mortgage activity until there is some stability in Washington. Based on current trends and the overall current economic and market uncertainty, we're maintaining our 2025 US.

Speaker Change: US Mortgage Revenue was about 20% of Equifax revenue in the quarter.

Speaker Change: In the first quarter, USIS Mortgage Revenue was up a strong 11% and outperformed underlying USIS hard credit inquiries by 20% again driven by pricing pass-through as well as the stronger performance in our mortgage pre-qual and pre-approval solutions. [inaudible]

Speaker Change: Over the last several weeks we've seen declines in mortgage activity from higher interest rates. We expect to see continued impacts on mortgage activity until there is some stability in Washington.

Speaker Change: based on current trends in the overall current economic and market uncertainty, we're maintaining our 2025 US mortgage market assumption of down 12% for the balance of 2025, which is the same framework we provided to you in February .

Mark Begor: Mortgage market assumption of down 12% for the balance of 2025, which is the same framework we provided to you in February. Turning to slide 7, Workforce Solutions revenue was up 3%. Verifier revenue growth of 5% was stronger than expected due to stronger Verifier non-mortgage revenue that was up 6%. We saw stronger than expected revenue in government, Talent Solutions, and consumer lending. Talent Solutions revenue was up 12% in the quarter, benefiting from better hiring volumes in February and March as well as easier comps versus first quarter last year.

Mortgage market assumption of down 12% for the balance of 2025, which is the same framework we provided to you in February. Turning to slide 7, Workforce Solutions revenue was up 3%. Verifier revenue growth of 5% was stronger than expected due to stronger Verifier non-mortgage revenue that was up 6%. We saw stronger than expected revenue in government, Talent Solutions, and consumer lending. Talent Solutions revenue was up 12% in the quarter, benefiting from better hiring volumes in February and March as well as easier comps versus first quarter last year.

Speaker Change: Verifier Revenue Growth of 5% was stronger than expected due to stronger verifier non-mortgage revenue that was up 6%

Speaker Change: We saw stronger than expected revenue in government, talent solutions, and consumer lending.

Speaker Change: Tellet Solutions revenue was up 12% in the quarter, benefiting from better hiring volumes in February and March, as well as easier comps versus first quarter last year.

Mark Begor: Talent Solutions continues to outperform the underlying markets from new records, new products penetration, and pricing as well as new solutions from their Total Verified Data Hub. Government grew 2% in the quarter given the headwinds related to changes in CMS federal funding practices at the state level we discussed in February as well as difficult comps from CMS redetermination volumes in the Q1 last year. We expect government revenue growth to continue to strengthen as we move through 2025 and expect to deliver about 10% government growth in the second half of the year. Our government business will be benefiting from a new $50 million SSA amendment that went online a few weeks ago as well as continuing to benefit from growing state agency penetration and growth in Twin records.

Talent Solutions continues to outperform the underlying markets from new records, new products penetration, and pricing as well as new solutions from their Total Verified Data Hub. Government grew 2% in the quarter given the headwinds related to changes in CMS federal funding practices at the state level we discussed in February as well as difficult comps from CMS redetermination volumes in the Q1 last year. We expect government revenue growth to continue to strengthen as we move through 2025 and expect to deliver about 10% government growth in the second half of the year. Our government business will be benefiting from a new $50 million SSA amendment that went online a few weeks ago as well as continuing to benefit from growing state agency penetration and growth in Twin records.

Speaker Change: Talent Solutions continues to outperform the underlying markets from new records, new products, penetration and pricing, as well as new solutions from their total verified data hub.

Speaker Change: Government grew 2% in the quarter, given the headwinds related to changes in CMS federal funding practices at the state level we discussed in February , as well as difficult comps from CMS re-determination volumes in the first quarter last year. [inaudible]

Speaker Change: We expect government revenue growth to continue to strengthen as we move through 2025 and expect to deliver about 10% government growth in the second half of the year.

Speaker Change: Our government business will be benefiting from a new $50 million SSA amendment that went online a few weeks ago, as well as continuing to benefit from growing state agency penetration and growth in twin reference

Mark Begor: Consumer lending revenue was up 11% in the quarter from strong sales execution across card, auto P loans, and debt management as well as continued growth in new records and new products. Employer services revenue was down 8% in the quarter as our I-9 and onboarding revenues have been negatively impacted by the weaker hiring market. Workforce Solutions adjusted EBITDA margins of 50.1% was over 100 basis points better than our February framework driven by higher than expected revenue growth and good cost execution. Workforce Solutions had a very strong quarter in record growth with 4.4 million companies contributing to twin and 191 million active records with 138 million unique individuals. The continued strong pace of partner and record additions further strengthens the multisided twin exchange with a big runway for future growth.

Consumer lending revenue was up 11% in the quarter from strong sales execution across card, auto P loans, and debt management as well as continued growth in new records and new products. Employer services revenue was down 8% in the quarter as our I-9 and onboarding revenues have been negatively impacted by the weaker hiring market. Workforce Solutions adjusted EBITDA margins of 50.1% was over 100 basis points better than our February framework driven by higher than expected revenue growth and good cost execution. Workforce Solutions had a very strong quarter in record growth with 4.4 million companies contributing to twin and 191 million active records with 138 million unique individuals. The continued strong pace of partner and record additions further strengthens the multisided twin exchange with a big runway for future growth.

Speaker Change: Consumer lending revenue was up 11% in the quarter from strong sales execution across card, auto, p-loans and debt management, as well as continued growth in new records and new products

Speaker Change: Employer Services Revenue was down 8% in the quarter as our I-9 and onboarding revenues have been negatively impacted by the weaker hiring market . .

Speaker Change: Workforce Solutions, Justin EBITDA margins of 50.1% was over a hundred basis points better than our February framework, driven by higher than expected revenue growth and good cost execution. Thank you very much for your attention.

Speaker Change: Workforce Solutions had a very strong quarter in record growth with 4.4 million companies contributing to twin and 191 million active records with 138 million unique individuals.

Speaker Change: The continued strong pace of partner and record additions for their strengths and the multi-sided twin exchange with a big runway for future growth.

Mark Begor: Turning to Slide 8, a significant focus of our EWS strategy is penetrating the large $5 billion government TAM at the federal, state, and local level. In 2025, we expect EWS government revenue of about $800 million with growth accelerating this second half to about 10%. Clearly, there is heightened focus with the new administration in Washington on program integrity and reducing the estimated $160 billion of improper payments within social service and tax programs. EWS has made significant progress penetrating agencies such as CMS, SSA, SNAP, and TANF given the strong value proposition in increasing program integrity with big opportunities for broader utilization of our verified and instant income verification for federally sponsored social services. Given this new focus in Washington, we also have a big runway to expand TWN utilization at the state and local agency level where social services are delivered.

Turning to Slide 8, a significant focus of our EWS strategy is penetrating the large $5 billion government TAM at the federal, state, and local level. In 2025, we expect EWS government revenue of about $800 million with growth accelerating this second half to about 10%. Clearly, there is heightened focus with the new administration in Washington on program integrity and reducing the estimated $160 billion of improper payments within social service and tax programs. EWS has made significant progress penetrating agencies such as CMS, SSA, SNAP, and TANF given the strong value proposition in increasing program integrity with big opportunities for broader utilization of our verified and instant income verification for federally sponsored social services. Given this new focus in Washington, we also have a big runway to expand TWN utilization at the state and local agency level where social services are delivered.

Speaker Change: Turning to slide 8, the significant focus of our EWS strategy is penetrating the large $5 billion dollar government tim at the federal, state and local level.

Speaker Change: In 2025, we expect the AWS government revenue of about $800 million, with growth accelerating in the second half to about 10%.

Speaker Change: Clearly, there is heightened focus with the new administration in Washington on program integrity and reducing the estimated $160 billion of improper payments within social service and tax programs

Speaker Change: EWS has made significant progress penetrating agencies such as CMS, SSA and SNAP-10F, given the strong value of proposition.

Speaker Change: in Increasing Program Integrity, with big opportunities for broader utilization of our verified and instant income verification for federally-sponsored social services, given this new focus in Washington.

Speaker Change: We also have a big runway to expand twin utilization at the state and state agency level, where social services are delivered

Mark Begor: We are expanding our presence in Washington and adding state resources to drive state utilization and penetration, full utilization of TWIN on all social service programs, new federal use cases such as Do Not Pay and the IRS Earned Income Tax Credit, and strengthened program income verification requirements and more frequent redeterminations. Our $50 million SSA amendment during the quarter is a great proof point of the value Equifax can bring to the $160 billion of improper payments across government programs. We are on offense in Washington and across the states to take advantage of this new focus and have significant opportunities for future growth supporting the government's goal of program integrity and efficient delivery of social service benefits. Turning to Slide 9, USIS had a very strong quarter with revenue up 7% and much better than our expectations.

We are expanding our presence in Washington and adding state resources to drive state utilization and penetration, full utilization of TWIN on all social service programs, new federal use cases such as Do Not Pay and the IRS Earned Income Tax Credit, and strengthened program income verification requirements and more frequent redeterminations. Our $50 million SSA amendment during the quarter is a great proof point of the value Equifax can bring to the $160 billion of improper payments across government programs. We are on offense in Washington and across the states to take advantage of this new focus and have significant opportunities for future growth supporting the government's goal of program integrity and efficient delivery of social service benefits. Turning to Slide 9, USIS had a very strong quarter with revenue up 7% and much better than our expectations.

Speaker Change: Full utilization of twin and all social service programs, new federal use cases such as do not pay and the IRS earned income tax credit, and strengthen program income verification requirements and more frequent re-determination

Speaker Change: Our $50 million SSA amendment during the quarter is a great proof point of the value Equifax can bring to the $160 billion in improper payments across government programs.

Speaker Change: We are on offense in Washington and across the states to take advantage of this new focus and have significant opportunities for future growth supporting the government's goal of program integrity and efficient delivery of social service benefits.

Speaker Change: Turning to slide 9, USIS had a very strong quarter with revenue up 7% and much better than our expectations.

Mark Begor: USIS non-mortgage revenue grew 6% in the quarter, well within their 6 to 8% long-term revenue growth framework and their strongest organic non-mortgage growth in over two years. Non-mortgage B2B revenue growth of 5% was stronger than we expected in both online and offline. Within B2B online, we continue to see a stable and only slightly muted lending environment. We saw mid-single-digit revenue growth in FI and high-single-digit revenue growth in auto. All other online B2B verticals in aggregate were up slightly. Financial marketing services, our B2B offline business, was up a very strong 10% in the quarter, driven principally by new business growth within insights and archives at large FIs.

USIS non-mortgage revenue grew 6% in the quarter, well within their 6 to 8% long-term revenue growth framework and their strongest organic non-mortgage growth in over two years. Non-mortgage B2B revenue growth of 5% was stronger than we expected in both online and offline. Within B2B online, we continue to see a stable and only slightly muted lending environment. We saw mid-single-digit revenue growth in FI and high-single-digit revenue growth in auto. All other online B2B verticals in aggregate were up slightly. Financial marketing services, our B2B offline business, was up a very strong 10% in the quarter, driven principally by new business growth within insights and archives at large FIs.

Speaker Change: USIS Non-Mortgage Revenue grew 6% in the quarter, well within their 6-8% long-term revenue growth framework, and their strongest organic non-mortgage growth in over two years.

Speaker Change: Non-mortgage B2B revenue growth of 5% was stronger than we expected in both online and offline. Within B2B online, we continue to see a stable and only slightly muted lending environment.

Speaker Change: We saw mid-single digit revenue growth in FI and high-single digit revenue growth in Otto. All other online B2B verticals and aggregate were up slightly.

Speaker Change: Financial Marketing Services, our B2B Offline business, was up a very strong 10% in the quarter, driven principally by new business growth within insights and archives at large FIs, as we modernized our new data delivery services using the new Equifax Cloud.

Mark Begor: As we've modernized our new data delivery services using the new Equifax Cloud, we've not seen an increase in portfolio review spending that would be indicative of increased risk management activity in a weaker economic environment. Consumer Solutions revenue remained very strong at up 8% and USIS adjusted EBITDA margins at 34.1% in the quarter was up about almost 150 basis points compared to last year. The USIS team is on offense with 100% of their post-cloud focus on customers share gains, innovation, new products, and growth. Turning to slide 10, international revenue was up 7% in constant currency with broad-based revenue growth across all regions. Strong Latin American revenue growth was led by very strong double-digit growth in Brazil and Argentina.

As we've modernized our new data delivery services using the new Equifax Cloud, we've not seen an increase in portfolio review spending that would be indicative of increased risk management activity in a weaker economic environment. Consumer Solutions revenue remained very strong at up 8% and USIS adjusted EBITDA margins at 34.1% in the quarter was up about almost 150 basis points compared to last year. The USIS team is on offense with 100% of their post-cloud focus on customers share gains, innovation, new products, and growth. Turning to slide 10, international revenue was up 7% in constant currency with broad-based revenue growth across all regions. Strong Latin American revenue growth was led by very strong double-digit growth in Brazil and Argentina.

Speaker Change: We've not seen an increase in portfolio review spending that would be indicative of increased risk management activity in a weaker economic environment.

Speaker Change: Consumer Solutions were not revenue remained very strong, it up 8 percent.

Speaker Change: and USIS adjusted EBITDA margins at 34.1% in the quarter was up about almost 150 basis points compared to last year. The USIS team is on offense with 100% of their post-cloud focus on customers, share gains, innovation, new products, and growth. [inaudible]

Speaker Change: Turning to slide 10, international revenue was up 7% in constant currency with blood-based revenue growth across all regions

Speaker Change: Strong Latin American Revenue Growth was led by very strong double digit growth in Brazil in Argentina.

Mark Begor: The Boa Vista business is performing very well as we bring new Equifax platforms like Ignite in our global products to the business and drive their cloud completion. Asia Pacific performed very well at 7% growth. Canada and Europe growth were slightly weaker than we expected, reflecting the overall weaker economic conditions in both markets, and international Adjusted EBITDA margins of 24.1% were down 20 basis points versus last year. Turning to slide 11, the first quarter marked a huge milestone for Equifax, launching our first-ever OnlyEquifax solution combining TWIN and credit data for mortgage shopping. Equifax is entering a new phase of innovation, leveraging our unique TWIN income and employment and credit data to build solutions that only Equifax can deliver. Enabled by the Equifax Cloud and EFX.AI, we expect to launch additional TWIN-powered credit solutions later this year in auto and personal loans.

The Boa Vista business is performing very well as we bring new Equifax platforms like Ignite in our global products to the business and drive their cloud completion. Asia Pacific performed very well at 7% growth. Canada and Europe growth were slightly weaker than we expected, reflecting the overall weaker economic conditions in both markets, and international Adjusted EBITDA margins of 24.1% were down 20 basis points versus last year. Turning to slide 11, the first quarter marked a huge milestone for Equifax, launching our first-ever OnlyEquifax solution combining TWIN and credit data for mortgage shopping. Equifax is entering a new phase of innovation, leveraging our unique TWIN income and employment and credit data to build solutions that only Equifax can deliver. Enabled by the Equifax Cloud and EFX.AI, we expect to launch additional TWIN-powered credit solutions later this year in auto and personal loans.

Speaker Change: The both of us, the business is performing very well as we bring new Equifax platforms like at night in our global products of the business and drive their cloud completion.

Speaker Change: Asia-Pacific performed very well at 7% growth. Canada and Europe growth were slightly weaker than we expected, reflecting the overall economic, weaker economic conditions in both markets. An international just at EBITDA margins of 24.1% were down 20 basis points versus last year.

Speaker Change: Turning to slide 11, the first quarter marked a huge milestone for Equifax, launching our first ever only Equifax solution combining twin and credit data for mortgage shopping.

Speaker Change: Equifax is entering a new phase of innovation, leveraging our unique twin-income employment and credit data to build solutions that only Equifax can deliver, enabled by the Equifax Cloud and EFX.ai. We expect to launch additional twin-powered credit solutions later this year in auto and personal loans. [inaudible]

Mark Begor: In the first quarter, we delivered a Vitality Index of 11% from double-digit performances in EWS and International, which was 100 basis points above our long-term framework. We are seeing post-Cloud increases in innovation and new products from USIS that we expect to continue through the balance of the year and increase further in 2026. We expect Equifax to deliver a strong 11% Vitality Index in 2025 above our 10% long-term goal, leveraging our EFX Cloud capabilities to drive new product rollouts using our differentiated data and EFX AI capabilities. Turning to Slide 12, we are clearly in a period of significant economic and market volatility and uncertainty from the tariff actions in Washington. Economic experts are raising concerns of weaker economic growth going forward as well as concerns of higher inflation, and the direction of interest rates.

In the first quarter, we delivered a Vitality Index of 11% from double-digit performances in EWS and International, which was 100 basis points above our long-term framework. We are seeing post-Cloud increases in innovation and new products from USIS that we expect to continue through the balance of the year and increase further in 2026. We expect Equifax to deliver a strong 11% Vitality Index in 2025 above our 10% long-term goal, leveraging our EFX Cloud capabilities to drive new product rollouts using our differentiated data and EFX AI capabilities. Turning to Slide 12, we are clearly in a period of significant economic and market volatility and uncertainty from the tariff actions in Washington. Economic experts are raising concerns of weaker economic growth going forward as well as concerns of higher inflation, and the direction of interest rates.

Speaker Change: In the first quarter, we delivered a vitality index of 11% from double digit performances in EWS and international, which was 100 basis points above our long-term framework.

Speaker Change: We are seeing post-cloud increases in innovation in new products from USIS that we expect to continue through the balance of the year and increase and increase further in 2026 and increase in innovation in new products.

Speaker Change: We expect Equifax to deliver a strong 11% vitality index in 2025 above our 10% long-term goal, leveraging our EFX cloud capabilities to drive new product rollouts using our differentiated data and EFX.ai capabilities.

Speaker Change: 20th Slide 12, we are clearly in a period of significant economic and market volatility and uncertainty from the tower factions in Washington.

Speaker Change: Economic experts are raising concerns of weaker economic growth going forward, as well as concerns of higher inflation and the direction of interest rates.

Mark Begor: While we've not seen impacts on our businesses to date, this uncertainty has led us to hold our 2025 guidance at the levels we shared in February. Despite our very strong performance in the quarter, Equifax is better positioned for an economic event than ever in our history given the mix of our businesses, growing mix of subscription revenue, and the upside from a mortgage market recovery. We have the majority of our cloud technology and data transformation behind us and are beginning to see the benefits of our new cloud capabilities driving always-on stability and innovation powered by our Equifax.

While we've not seen impacts on our businesses to date, this uncertainty has led us to hold our 2025 guidance at the levels we shared in February. Despite our very strong performance in the quarter, Equifax is better positioned for an economic event than ever in our history given the mix of our businesses, growing mix of subscription revenue, and the upside from a mortgage market recovery. We have the majority of our cloud technology and data transformation behind us and are beginning to see the benefits of our new cloud capabilities driving always-on stability and innovation powered by our Equifax.

Well, we've not seen impacts on our businesses to date.

Speaker Change: This uncertainty has led us to hold our 2025 guidance at the levels we shared in February despite our very strong performance in the quarter [inaudible]

Speaker Change: Equifax is better positioned for an economic event than ever in our history, giving the mix of our businesses, growing mix of subscription revenue and the upside from mortgage market recovery. . . .

Speaker Change: We have the majority of our cloud technology and data transformation behind us and are beginning to see the benefits of our new cloud capabilities driving always-on stability and innovation powered by our Equifax data assets and EFX.ai that are delivering growth and share gains.

Mark Begor: Data assets and EFX.AI that is.

Data assets and EFX.AI that is.

Mark Begor: Delivering growth and share gains. We're also improving the overall cost structure of our business, which is independent of any economic event. Our AWS government business has big growth potential in their $5 billion TAM. In an attractive Washington during a downturn, more consumers will apply for or increase social service benefits, including in our unemployment claims management business that was up double digits during the COVID recession. Workforce Solutions will continue to grow the TWIN database in every economic scenario, which increases our fulfillment rate and revenue during periods of economic uncertainty. We've historically seen areas of increased TWIN usage in financing markets as borrower unemployment and income status becomes even more critical to lenders during periods of increased unemployment, and our balance sheet and cash flow are strong with strong cash conversion as our capital spending declines with the completion of our cloud investments.

Delivering growth and share gains. We're also improving the overall cost structure of our business, which is independent of any economic event. Our AWS government business has big growth potential in their $5 billion TAM. In an attractive Washington during a downturn, more consumers will apply for or increase social service benefits, including in our unemployment claims management business that was up double digits during the COVID recession. Workforce Solutions will continue to grow the TWIN database in every economic scenario, which increases our fulfillment rate and revenue during periods of economic uncertainty. We've historically seen areas of increased TWIN usage in financing markets as borrower unemployment and income status becomes even more critical to lenders during periods of increased unemployment, and our balance sheet and cash flow are strong with strong cash conversion as our capital spending declines with the completion of our cloud investments.

Speaker Change: We're also improving your overall cost structure of our business which is independent of any economic event.

Speaker Change: Our EWS government business has big growth potential in their $5 billion tam in an attractive Washington environment.

Speaker Change: During a downturn, more consumers will apply for or increase social service benefits, including in our unemployment claims management business that was up double digits during the COVID recession.

Speaker Change: Workforce Solutions will continue to grow between database in every economic scenario, which increases our fulfillment rate and revenue.

Speaker Change: During periods of economic uncertainty, we've historically seen periods of increased twin usage in financing markets as buyer of unemployment and income status becomes even more critical to lenders during periods of increased unemployment. Thank you very much.

Speaker Change: And our balance sheet and cash floor strong was strong cash conversion as our capital spending declines with the completion of our cloud investments

Mark Begor: As shown on the left side of slide 12, the mix of Equifax businesses that are recession resilient or countercyclical, and we expect to grow in an economic event, is very strong at about 67% of our revenue, which is up from 54% in 2022 and up significantly from 37% in 2008. We are a different business today and much more resilient. Our government identity fraud, debt management, mortgage, and credit portfolio review businesses, as well as the significant portions of our employer services, commercial credit, and consumer direct businesses that are subscription based, are recession resilient and in most cases countercyclical, and we expect them to grow in an economic event.

As shown on the left side of slide 12, the mix of Equifax businesses that are recession resilient or countercyclical, and we expect to grow in an economic event, is very strong at about 67% of our revenue, which is up from 54% in 2022 and up significantly from 37% in 2008. We are a different business today and much more resilient. Our government identity fraud, debt management, mortgage, and credit portfolio review businesses, as well as the significant portions of our employer services, commercial credit, and consumer direct businesses that are subscription based, are recession resilient and in most cases countercyclical, and we expect them to grow in an economic event.

Speaker Change: As shown on the left side of slide 12, the mix of Equifax businesses that are recession-resilient or counter-sickical and we expect to grow in an economic event is very strong at about 67%

of our revenue. .

and up significantly from 37% in 2008.

Speaker Change: as well as the significant portions of our employer services, commercial credit, and consumer direct businesses that are subscription based, our recession resilient, and in most cases counter cyclical. And we expect them to grow in an economic event.

Mark Begor: For perspective, we included a view of how our businesses may perform in a hypothetical recession in which US GDP declines about 300 basis points and is negative, and long-term interest rates decline over 150 basis points in the back half of an economic event. To boost activities in this scenario, we believe Equifax could still grow total revenue 5% to 10% on average over this recession cycle. Our non-mortgage businesses we believe would grow low single-digit percentage as the growth in recession-resistant and countercyclical businesses is only partially offset by declines in our recession-impacted businesses. As shown on the right side of slide 12, we are at historic lows in US mortgage market activity with $1.2 billion in revenue opportunity for Equifax with the market still 50% below what we characterize as normal 2015 to 2019 pre-pandemic average mortgage volume activities.

For perspective, we included a view of how our businesses may perform in a hypothetical recession in which US GDP declines about 300 basis points and is negative, and long-term interest rates decline over 150 basis points in the back half of an economic event. To boost activities in this scenario, we believe Equifax could still grow total revenue 5% to 10% on average over this recession cycle. Our non-mortgage businesses we believe would grow low single-digit percentage as the growth in recession-resistant and countercyclical businesses is only partially offset by declines in our recession-impacted businesses. As shown on the right side of slide 12, we are at historic lows in US mortgage market activity with $1.2 billion in revenue opportunity for Equifax with the market still 50% below what we characterize as normal 2015 to 2019 pre-pandemic average mortgage volume activities.

Speaker Change: For perspective, we included a view of how our businesses may perform in a hypothetical recession in which US GDP declines about 300 basis points and is negative and long-term interest rates decline over 150 basis points in the back half of an economic event to boost activities. [inaudible]

Speaker Change: In this scenario, we believe Equifax could still grow total revenue 5-10% on average over this recession cycle.

Speaker Change: Our non mortgage businesses we believe would grow low single digit percentage as the growth in recession resistant and counter cyclical businesses is only partially offset by declines in our recession impacted businesses.

Speaker Change: And shown on the right side of Slide 12, we are at historic lows in U.S. Morgan's market activity. We are at historic lows in U.S. Morgan's market activity.

Speaker Change: with 1.2 billion in revenue opportunity for Equifax with the market still 50% below what we characterize as normal 2015 to 2019 pre-pandemic average mortgage volume activities.

Mark Begor: Looking at Equifax data on mortgage issuance since early 2022, there are over 13 million mortgages that were issued with an interest rate over 5%, including about 11 million with rates over 6%, and almost 8 million mortgages with rates over 6.5%, with an interest rate decline in a recession. This creates a large pool of loans available for refinancing, which would drive substantial growth for Equifax from the current depressed mortgage refinance levels. Purchase mortgages could also see strong growth from current levels. For perspective, the last time mortgage rates were about 6%, purchase mortgage volumes were more than 25% higher than the levels we're seeing in 2025. Mortgage revenue could see growth rates of 20% or significantly more against the 50% decline from normal levels today in a reduced rate environment.

Looking at Equifax data on mortgage issuance since early 2022, there are over 13 million mortgages that were issued with an interest rate over 5%, including about 11 million with rates over 6%, and almost 8 million mortgages with rates over 6.5%, with an interest rate decline in a recession. This creates a large pool of loans available for refinancing, which would drive substantial growth for Equifax from the current depressed mortgage refinance levels. Purchase mortgages could also see strong growth from current levels. For perspective, the last time mortgage rates were about 6%, purchase mortgage volumes were more than 25% higher than the levels we're seeing in 2025. Mortgage revenue could see growth rates of 20% or significantly more against the 50% decline from normal levels today in a reduced rate environment.

Speaker Change: Looking at Equifax data on mortgage issuance since early 2022, there are over 13 million mortgages that were issued with an interest rate over 5%, including about 11 million with rates over 6%, and almost 8 million mortgages with rates over 6.5% [inaudible]

Speaker Change: With an interest rate decline in a recession, this creates a large pool of loans available for refinancing, which would drive substantial growth for Equifax from the current depressed mortgage refinance levels.

Speaker Change: Purchase mortgages could also see strong growth from current levels. For perspective, the last time mortgage rates were about 6% Purchase mortgage volumes were more than 25% higher than the levels we're seeing in 2025.

Speaker Change: Mortgage revenue could see growth rates of 20% or significantly more against the 50% decline from normal levels today in a reduced rate environment.

Mark Begor: Given these factors and as shown on slide 12, Equifax could grow revenue in the range of 5% to 10% in a typical recession with significant potential upside. If mortgage rates decline even further and mortgage volumes move back towards historical levels, we feel we're well positioned in an economic event. Given the unique position of our businesses like TWN, our growing subscription revenue, and the upside from a mortgage market recovery.

Given these factors and as shown on slide 12, Equifax could grow revenue in the range of 5% to 10% in a typical recession with significant potential upside. If mortgage rates decline even further and mortgage volumes move back towards historical levels, we feel we're well positioned in an economic event. Given the unique position of our businesses like TWN, our growing subscription revenue, and the upside from a mortgage market recovery.

Speaker Change: Given these factors, and as shown on slide 12, Equifax could grow revenue in the range of 5% to 10% in a typical recession with significant potential upside if mortgage rates decline even further and mortgage volumes move back towards historical levels.

Speaker Change: We feel we're well positioned in an economic event given the unique position of our businesses like Twin, our growing subscription revenue, and the upside from mortgage market recovery. . .

Mark Begor: We expect to continue to deliver strong free cash flow during a typical recession, allowing us to continue and invest in Equifax CapEx for growth and bolt-on M&A while still delivering on our new capital allocation plan that will grow our dividend and return excess free cash flow with our buyback program while maintaining a strong balance sheet and credit ratings. Now I'd like to turn it over to John to provide more detail on our 2025 guidance and also provide our second quarter framework.

We expect to continue to deliver strong free cash flow during a typical recession, allowing us to continue and invest in Equifax CapEx for growth and bolt-on M&A while still delivering on our new capital allocation plan that will grow our dividend and return excess free cash flow with our buyback program while maintaining a strong balance sheet and credit ratings. Now I'd like to turn it over to John to provide more detail on our 2025 guidance and also provide our second quarter framework.

Speaker Change: We expect to continue to deliver strong free cash flow during a typical recession, allowing us to continue to invest in Equifax CapEx for growth in bolt-onema M&A

Speaker Change: while still delivering on our new capital allocation plan that will grow our dividend and return excess free cash flow with our buyback program while maintaining a strong balance sheet and credit ratings.

Speaker Change: And now I'd like to turn it over to John to provide more detail on our 2025 guidance and also provide our second quarter framework .

Trevor Burns: Thanks, Mark. Turning to Slide 13, as Mark indicated, given the current economic and market uncertainty, our current full-year 2025 guidance for USIS mortgage hard inquiries down 12% is unchanged from what we shared in February. USIS hard mortgage credit inquiries run rates declined through last week, consistent with market activity and with the significant uncertainty that exists in the market. Based on these factors, our guidance for second quarter USIS hard mortgage credit inquiries is expected to be down about 11% and is consistent with the full year down 12%. As Mark indicated, we are holding our full-year 2025 guidance on a constant currency basis to be unchanged from our February guidance. We updated revenue by about $20 million, reflecting the benefit from the weaker dollar using FX rates on 10 April. The EPS benefit of the FX movement is very small.

John Gamble: Thanks, Mark. Turning to Slide 13, as Mark indicated, given the current economic and market uncertainty, our current full-year 2025 guidance for USIS mortgage hard inquiries down 12% is unchanged from what we shared in February. USIS hard mortgage credit inquiries run rates declined through last week, consistent with market activity and with the significant uncertainty that exists in the market. Based on these factors, our guidance for second quarter USIS hard mortgage credit inquiries is expected to be down about 11% and is consistent with the full year down 12%. As Mark indicated, we are holding our full-year 2025 guidance on a constant currency basis to be unchanged from our February guidance. We updated revenue by about $20 million, reflecting the benefit from the weaker dollar using FX rates on 10 April. The EPS benefit of the FX movement is very small.

John Gamble: Thanks Mark, turning to slide 13 as Mark indicated, given the current economic and market uncertainty, our current full year 2025 guidance for USIS mortgage hard inquiries at down 12% is unchanged from what we shared in February

John Gamble: Based on these factors, our guidance for second quarter USIS hard mortgage credit inquiries is expected to be down about 11% and is consistent with the full year at down 12%.

John Gamble: As Mark indicated, we are holding our full year 2025 guidance on a constant currency basis to be unchanged from our February guidance

John Gamble: We updated revenue by about 20 million dollars, reflecting the benefits from the weaker dollar using FX rates on April 10th.

DTS benefit of the FX movement is very small.

Trevor Burns: Slide 14 provides our full year 2025 guidance, reflecting only the change in FX. Organic constant currency revenue growth is unchanged at 6%. BU level details are also consistent with our February guidance. Going forward, each quarter we will disclose the actual level of our share repurchases and the impact on shares outstanding. Slide 15 provides the details of our Q2 2025 guidance. In Q2 2025 we expect total Equifax revenue to be up just over 5.5% on a reported basis, year to year, at the midpoint, with constant dollar revenue growth up just over 6.5% at the midpoint. Adjusted EPS in Q2 2025 is expected to be $1.85 to $1.95 per share, up over 4.5% versus Q2 2024 at the midpoint. The increase in adjusted EPS is principally driven by revenue growth, and lower interest expense partially offset by higher depreciation and amortization.

Slide 14 provides our full year 2025 guidance, reflecting only the change in FX. Organic constant currency revenue growth is unchanged at 6%. BU level details are also consistent with our February guidance. Going forward, each quarter we will disclose the actual level of our share repurchases and the impact on shares outstanding. Slide 15 provides the details of our Q2 2025 guidance. In Q2 2025 we expect total Equifax revenue to be up just over 5.5% on a reported basis, year to year, at the midpoint, with constant dollar revenue growth up just over 6.5% at the midpoint. Adjusted EPS in Q2 2025 is expected to be $1.85 to $1.95 per share, up over 4.5% versus Q2 2024 at the midpoint. The increase in adjusted EPS is principally driven by revenue growth, and lower interest expense partially offset by higher depreciation and amortization.

John Gamble: Slide 14 provides our full year 2025 guidance, reflecting only the change in FX. Organic constant currency revenue growth is unchanged at 6%.

John Gamble: The EU level details are also consistent with our February guidance. Going forward, each quarter, we will disclose the actual level of our Sherry purchases and the impact on shares outstanding.

Spline 15 provides the details of our 2 Q2 5 guidance.

John Gamble: In 2Q25, we expect total Equifax revenue to be up just over 5.5% on a reported basis year to year at the midpoint with constant dollar revenue growth up just over 6.5% at the midpoint and we expect total Equifax revenue to be up just over 6.5% at the midpoint with constant dollar revenue growth

John Gamble: Adjustment EPS and 2Q25 is expected to be $1.85 to $1.95 per share, but over 4.5% versus 2Q24 at the midpoint.

John Gamble: The increase in adjusted EPS is principally driven by revenue growth and lower interest expense partially offset by higher depreciation and amortization

Trevor Burns: Equifax Q2 2025 Adjusted EBITDA margins are expected to be over 32.5% at the midpoint of our guidance, up about 50 basis points year to year. The increase in Adjusted EBITDA margins principally reflects revenue growth and higher margins at both USIS and International Business Unit. Performance in the second quarter is expected to be as follows. Workforce Solutions revenue growth is expected to be up over 6.5% year to year. Verification Services revenue is expected to be over 8%. Mortgage revenue is expected to be up about 6% with the growth in records and pricing offset by the expected continued mortgage market decline. Verifier non-mortgage revenue is expected to be up about 9%. Government revenue is expected to be up low double digits and improve sequentially from higher SSA revenue, state penetration, and records.

Equifax Q2 2025 Adjusted EBITDA margins are expected to be over 32.5% at the midpoint of our guidance, up about 50 basis points year to year. The increase in Adjusted EBITDA margins principally reflects revenue growth and higher margins at both USIS and International Business Unit. Performance in the second quarter is expected to be as follows. Workforce Solutions revenue growth is expected to be up over 6.5% year to year. Verification Services revenue is expected to be over 8%. Mortgage revenue is expected to be up about 6% with the growth in records and pricing offset by the expected continued mortgage market decline. Verifier non-mortgage revenue is expected to be up about 9%. Government revenue is expected to be up low double digits and improve sequentially from higher SSA revenue, state penetration, and records.

John Gamble: Equifax 2Q25, adjusted EBITDA margins are expected to be over 32 and a half percent at the midpoint of our guidance, up about 50 basis points here to year.

John Gamble: The increase in adjusted EBITDA margins, principally reflects revenue growth and higher margins at both USIS and international .

John Gamble: Business Unit Performance in the second quarter is expected to be as follows.

John Gamble: Workforce Solutions revenue growth is expected to be up over 6.5% year-to-year. Verification Services revenue is expected to be over 8% Mortgage revenue is expected to be up about 6% with the growth in records and pricing offset by the expected continued mortgage market decline.

Barefire non-mortgage revenue is expected to be up about 9%

John Gamble: Government Revenue is expected to be up low double digits and improves sequentially from higher SSA revenue, state penetration, and records as marked indicated.

Trevor Burns: As Mark indicated, Talent revenue should be up low single digits as growth remains negatively impacted by expected declines in US hiring and with more difficult comps than the first quarter. Employer revenue is expected to be down slightly. EWS Adjusted EBITDA margins are expected to be about 52%, down about 80 basis points year to year but up about 200 basis points sequentially. USIS revenue is expected to be up about 6.5% year to year. Mortgage revenue is expected to be up about 11% and non-mortgage revenue is expected to be up about 4%. Mortgage revenue is still being impacted by significant declines in USIS hard inquiries which are being more than offset principally by third-party vendor pricing actions as well as strengthening revenue in pre-approval and pre-qualification products.

As Mark indicated, Talent revenue should be up low single digits as growth remains negatively impacted by expected declines in US hiring and with more difficult comps than the first quarter. Employer revenue is expected to be down slightly. EWS Adjusted EBITDA margins are expected to be about 52%, down about 80 basis points year to year but up about 200 basis points sequentially. USIS revenue is expected to be up about 6.5% year to year. Mortgage revenue is expected to be up about 11% and non-mortgage revenue is expected to be up about 4%. Mortgage revenue is still being impacted by significant declines in USIS hard inquiries which are being more than offset principally by third-party vendor pricing actions as well as strengthening revenue in pre-approval and pre-qualification products.

John Gamble: Talent revenue should be up low single digits as growth remains negatively impacted by expected declines in US hiring and with more difficult cops than the first quarter. Employer revenue is expected to be down slightly.

USIS Revenue is expected to be up. [inaudible]

John Gamble: About 6.5% here to you. Mortgage revenue is expected to be up about 11% and non mortgage revenue is expected to be up about 4%.

John Gamble: Mortgage Revenue is still being impacted by significant declines in USIS Heart Inquiries, which are being more than offset principally by third party vendor pricing actions, as well as strengthening revenue in pre-approval and pre-qualification products.

Trevor Burns: Adjusted EBITDA margins are expected to be up about 200 basis points at over 35%, again reflecting the benefits from USIS decommissioned legacy systems and revenue growth. International revenue is expected to be up about 6.5% in constant currency. Adjusted EBITDA margins are expected to be up about 75 basis points at over 26% in Q2 2025. Our guidance assumes economic and market conditions do not deteriorate meaningfully from current levels, and US interest rates at levels also about consistent with current levels. Delivering second quarter and full year guidance at the midpoint requires continued strong execution by the team against our Equifax 2027 strategic priorities. Now I'd like to turn it back over to Mark.

Adjusted EBITDA margins are expected to be up about 200 basis points at over 35%, again reflecting the benefits from USIS decommissioned legacy systems and revenue growth. International revenue is expected to be up about 6.5% in constant currency. Adjusted EBITDA margins are expected to be up about 75 basis points at over 26% in Q2 2025. Our guidance assumes economic and market conditions do not deteriorate meaningfully from current levels, and US interest rates at levels also about consistent with current levels. Delivering second quarter and full year guidance at the midpoint requires continued strong execution by the team against our Equifax 2027 strategic priorities. Now I'd like to turn it back over to Mark.

John Gamble: Adjusted EBITDA margins are expected to be up about 200 basis points at over 35%. Again, reflecting the benefits from USIS, decommissioned legacy systems and revenue growth.

John Gamble: International Revenue is expected to be up about 6.5% in constant currency. Adjusted EBITDA margins are expected to be up about 75 basis points at over 26% in June 2025.

John Gamble: Our guidance assumes economic and market conditions do not deteriorate meaningfully from current levels and US interest rates at levels also about consistent with current levels [inaudible]

John Gamble: Delivering second quarter and full-year guidance at the midpoint requires continued strong execution by the team against our Equifax 2027 strategic priorities

Mark Begor: Thanks, John, turning to slide 16. In 2025, despite our very strong performance in the quarter, we are expecting challenging markets in both US mortgage and hiring to continue, with the uncertainty in Washington resulting in our expectation of 6% constant currency revenue growth for the year. We continue to be confident in our long term growth framework that delivers 8% to 12% growth including bolt-on M&A, 7% to 10% organic growth, strong operating leverage, delivering 50 basis points of margin expansion, expansion annually, and strong free cash flow for investment in Equifax and returning cash to shareholders. We have a strong and resilient business model, wrapping up on slide 17. We're off to a great start in 2025 with first quarter revenue and adjusted EPS well above our February framework in a challenging macro environment.

Now, I'd like to turn it back over to Mark.

Mark Begor: Thanks, John . Turning to slide 16, in 2025, despite our very strong performance in the quarter, we are expecting challenging markets in both US mortgage and hiring to continue with the uncertainty in Washington, resulting in our expectation of 6% constant currency revenue growth for the year.

Mark Begor: We continue to be confident in our long-term growth framework that delivers 8-12% growth, including bolt-on M&A, 7-10% organic growth We continue to be confident in our long-term growth framework that delivers 8-12% growth, including bolt-on M&A,

Mark Begor: Strong operating leverage, delivering 50 basis points of margin expansion annually, and strong free cash flow for investment in Equifax and returning cash to shareholders. We have a strong and resilient business model.

Mark Begor: Rapping up on slide 17, we're off to a great start in 2025 with first quarter revenue and adjusted EPS well above our February framework and a challenging macro environment.

Mark Begor: As I said earlier, under normal economic and market conditions we would be increasing our full-year 2025 guidance. However, due to the significant current economic and market uncertainty in Washington, we felt it was prudent to maintain our 2025 full-year guidance for Equifax, and as well as our view on a weaker mortgage, and hiring markets for the balance of the year. Our strong free cash flow generation and the strength of our balance sheet positions us well to return cash to shareholders. Our new long-term Capital Allocation Plan is a big step forward for Equifax. We are energized to be increasing our quarterly dividend by 28% this quarter to $0.50 per share and launching our new $3 billion share repurchase program that we expect to complete over approximately the next four years.

As I said earlier, under normal economic and market conditions we would be increasing our full-year 2025 guidance. However, due to the significant current economic and market uncertainty in Washington, we felt it was prudent to maintain our 2025 full-year guidance for Equifax, and as well as our view on a weaker mortgage, and hiring markets for the balance of the year. Our strong free cash flow generation and the strength of our balance sheet positions us well to return cash to shareholders. Our new long-term Capital Allocation Plan is a big step forward for Equifax. We are energized to be increasing our quarterly dividend by 28% this quarter to $0.50 per share and launching our new $3 billion share repurchase program that we expect to complete over approximately the next four years.

Mark Begor: As I said earlier, under normal economic and market conditions, we would be increasing our full year 2025 guidance.

Mark Begor: However due to the significant current economic and market uncertainty in Washington, we felt it was prudent to maintain our 2025 failure guidance for Equifax, as well as our view on a weaker mortgage and hiring markets for the balance of the year [inaudible]

Mark Begor: Our strong free cash flow generation and the strength of our balance sheet positions us well to return cash to shareholders to shareholders.

Mark Begor: Our new long-term capital allocation plan is a big step forward for Equifax

Mark Begor: We are energized to be increasing our quarterly given by 28% this quarter to 50 cents per share and launching our new $3 billion share repurchase program that we expect to complete over approximately the next four years.

Mark Begor: Our Capital Allocation Plan continues high-return investments across Equifax, CapEx, and bolt-on M&A while returning cash to shareholders and maintaining a strong balance sheet. Equifax is better positioned than ever in its history to weather an economic event while delivering growth, margin expansion, free cash flow generation, and returning cash to shareholders. We are entering the next chapter of the new Equifax with our cloud transformation substantially behind us as we pivot our entire team from building the cloud to leveraging the new Equifax Cloud for innovation, new products, and growth. We're using our new cloud capabilities, Single Data Fabric, EFX AI, and Ignite, our analytics platform, to develop new credit solutions leveraging our scale and unique data assets.

Our Capital Allocation Plan continues high-return investments across Equifax, CapEx, and bolt-on M&A while returning cash to shareholders and maintaining a strong balance sheet. Equifax is better positioned than ever in its history to weather an economic event while delivering growth, margin expansion, free cash flow generation, and returning cash to shareholders. We are entering the next chapter of the new Equifax with our cloud transformation substantially behind us as we pivot our entire team from building the cloud to leveraging the new Equifax Cloud for innovation, new products, and growth. We're using our new cloud capabilities, Single Data Fabric, EFX AI, and Ignite, our analytics platform, to develop new credit solutions leveraging our scale and unique data assets.

Mark Begor: Our Capital Allocation Plan continues high return investments across Equifax and CapEx and both on M&A, while returning cash to their shareholders in maintaining a strong balance sheet.

Mark Begor: Equifax is better positioned than ever in its history to weather an economic event while delivering growth, margin expansion, free cash flow generation, and returning cash to shareholders.

Mark Begor: We are entering the next chapter of the new Equifax with our cloud transformation substantially behind us as we pivot our entire team from building the cloud to leveraging the new Equifax cloud for innovation, new products and growth [inaudible]

Mark Begor: We're using our new cloud capabilities, single data fabric, fx.ai, and ignite our analytics platform to develop new credit solutions leveraging our skill and unique data assets.

Mark Begor: We're accelerating multi-data asset solutions including those that combine traditional credit, alternative credit assets from DataX and Teletrack, and TWN income and employment indicators in verticals like mortgage and auto that only Equifax can deliver that will drive share gains and growth for Equifax in the future. I'm energized about our strong start to 2025, but even more energized about the next chapter of the new Equifax. With our new capital allocation plan in place, this is a big milestone for Equifax and an exciting time to be at the new Equifax. One final note, we're planning an Investor Day the morning of 17 June 2025 in New York City where you'll hear from the Equifax leadership team on our long-term growth plans that are aligned with our EFX 2027 growth framework.

We're accelerating multi-data asset solutions including those that combine traditional credit, alternative credit assets from DataX and Teletrack, and TWN income and employment indicators in verticals like mortgage and auto that only Equifax can deliver that will drive share gains and growth for Equifax in the future. I'm energized about our strong start to 2025, but even more energized about the next chapter of the new Equifax. With our new capital allocation plan in place, this is a big milestone for Equifax and an exciting time to be at the new Equifax. One final note, we're planning an Investor Day the morning of 17 June 2025 in New York City where you'll hear from the Equifax leadership team on our long-term growth plans that are aligned with our EFX 2027 growth framework.

Mark Begor: and we're accelerating multi-data asset solutions, including those that combine traditional credit. .

Mark Begor: Alternative Credit Assets from Data X IntelliTrack and Twin Income and Employment Indigators in verticals like mortgage and auto that only Equifax can deliver that will drive share gains and growth for Equifax in the future .

Mark Begor: I'm energized about our strong start to 2025, but even more energized about the next chapter of the new Equifax with our new Capital Allocation Plan in place.

Mark Begor: This is a big milestone for Equifax and an exciting time to be at the new Equifax.

Mark Begor: One final note. We're planning an investor day the morning of June 17th in New York City, where you're here from the Equifax leadership team on our long-term growth plans that are aligned with our EFX 2027 growth framework. . . .

Mark Begor: The event will be held in person.

The event will be held in person.

Mark Begor: As well as webcast live. Please mark your calendars and look for more information to come soon from Trevor and Molly on our Investor Day. And with that, operator, let me open it up for questions.

As well as webcast live. Please mark your calendars and look for more information to come soon from Trevor and Molly on our Investor Day. And with that, operator, let me open it up for questions.

Mark Begor: The event will be held in person, as well as webcast live. Please mark your calendars and look for more information to come soon from Trevor and Molly on our investor day.

Operator: Certainly. We'll now be conducting a question and answer session. If you'd like to be placed into question queue, please press star 1 on your telephone keypad. As a reminder, we ask you please ask one question and one follow up, then return to the queue. You may press star 2 to remove yourself from the queue. One moment please, while we poll for questions. Our first question is coming from Jeff Mueller from Baird. Your line is now live.

Speaker Change: Certainly, when I'll be conducting a question and answer session, if you'd like to be placed into question two, please press star one on your telephone keypad. As a reminder, we ask you please ask one question and one follow up then return to the queue.

Speaker Change: You may press star Q to remove yourself from the queue. One moment please while we poll for questions.

Speaker Change: Our first question is coming from Jeff Meuler, from Bear Your Line, is that live? [inaudible]

Jeff Mueller: Thank you.

Jeffrey Meuler: Thank you.

Mark Begor: Good morning. So great to see the amended SSA contract just now that DOGE is further into its work.

Good morning. So great to see the amended SSA contract just now that DOGE is further into its work.

Jeff Mueller: Thank you, good morning, so great to see the amended SSA contract, just now that dojos is further into its work.

Jeff Mueller: Can you just try to give us?

Can you just try to give us?

Mark Begor: Any more color on, I guess, the twin federal government discussions or opportunities as well as any risk that you're hearing that could arise from that? Yeah, thanks, Jeff. You know, we feel it's a real tailwind for us in the current administration with their focus on improper payments. As you know, it's a huge number. This is not our number. It's from the government of $160 billion a year of improper payments either from.

Any more color on, I guess, the twin federal government discussions or opportunities as well as any risk that you're hearing that could arise from that?

Speaker Change: to just try to give us any more color on, I guess, the twin federal government discussions or opportunities, as well as any risk that you're hearing that could arise from that.

Mark Begor: Yeah, thanks, Jeff. You know, we feel it's a real tailwind for us in the current administration with their focus on improper payments. As you know, it's a huge number. This is not our number. It's from the government of $160 billion a year of improper payments either from.

Speaker Change: Yeah, thanks, Jeff. We feel it's a real tailwind for us in the current administration with their focus on improper payments. As you know, it's a huge number. This is not our number. It's from the government of $160 billion a year.

Mark Begor: Social services or tax support that go to consumers.

Social services or tax support that go to consumers.

of Improper Payments.

Mark Begor: TWIN is really the answer. As I said in my comments earlier, we're ramping up our presence in Washington. I was up there a couple weeks ago. Chad Borton, who leads EWS, I think is there next week. I'm going to be there again in a couple of weeks. The discussions are very constructive around their desire to really tackle this challenge for the federal government and really drive. They all want to have individuals that deserve social services get them quickly. But those that no longer qualify, they really want to take those benefits back. TWIN is really the answer. So we're spending a lot of time with the new agency heads. You know, we see opportunities in existing programs for increasing requirements around authentication of income at the state level. Perhaps, you know, doing more frequent redeterminations, which are currently every 12 months.

TWIN is really the answer. As I said in my comments earlier, we're ramping up our presence in Washington. I was up there a couple weeks ago. Chad Borton, who leads EWS, I think is there next week. I'm going to be there again in a couple of weeks. The discussions are very constructive around their desire to really tackle this challenge for the federal government and really drive. They all want to have individuals that deserve social services get them quickly. But those that no longer qualify, they really want to take those benefits back. TWIN is really the answer. So we're spending a lot of time with the new agency heads. You know, we see opportunities in existing programs for increasing requirements around authentication of income at the state level. Perhaps, you know, doing more frequent redeterminations, which are currently every 12 months.

Speaker Change: either from social services or tax support that go to consumers and twin is really the answer.

Speaker Change: As I said in my comments earlier, we're ramping up our presence in Washington, I was up there a couple weeks ago, Chad Borton, who we did in the US, I think is there.

Speaker Change: This challenge for the federal government and really drive, they all want to have individuals that deserve social services get them quickly.

Speaker Change: but those that no longer qualify, they really want to take those benefits back and twin is really the answer. So we're spending a lot of time with the new agency heads. We see opportunities and existing programs for increasing requirements around authentication of income at the state level, perhaps doing more frequent re-determinations, which are currently every 12 months and [inaudible]

Mark Begor: And this demographic, their income profile changes more rapidly, so doing that more often. And then there's some very significant programs that we've been working on for four, five, six years. One is the Do Not Pay system, which we're not in today. We were making momentum in the last couple of years in the last administration. We think that'll accelerate, and that's kind of a stopgap for all social service programs. Would check that database before making social service payments. Another big one for us that we've been working on the last couple three years is with the IRS around the Earned Income Tax Credit, which they frame as being something like 16 billion of improper payments. So the tone in Washington is super positive. We think around this.

And this demographic, their income profile changes more rapidly, so doing that more often. And then there's some very significant programs that we've been working on for four, five, six years. One is the Do Not Pay system, which we're not in today. We were making momentum in the last couple of years in the last administration. We think that'll accelerate, and that's kind of a stopgap for all social service programs. Would check that database before making social service payments. Another big one for us that we've been working on the last couple three years is with the IRS around the Earned Income Tax Credit, which they frame as being something like 16 billion of improper payments. So the tone in Washington is super positive. We think around this.

Speaker Change: This demographic, their income profile changes more rapidly, you know, so doing that more often and then there's some very significant programs that we've been working on on.

for four or five six years. [inaudible]

Speaker Change: You know, one is the do not pay system, which we're not in today, we were making momentum in the last couple of years in the last administration We think that'll accelerate and that's kind of a stopgap for all social service programs would check that you

Speaker Change: Database, you know, before making social service payments. Another big one for us that we've been working on the last couple three years is with the IRS.

Speaker Change: around the earned income tax credit, which they frame as being something like $16 billion of improper payments. So, the tone in Washington is super positive, we think.

Mark Begor: As you point out, the amendment that we got with the SSA contract a couple of weeks ago, I think is a great proof point that even in this administration, which there's a lot of change going on in Washington, D.C., the value of TWIN is clear. I'd also point out that as you know, most of the TAM, you know, for that $5 billion TAM versus our roughly $800 million run rate of our business, that $4-plus billion is really at the states. There's a lot of states that don't use our data today. There's a lot of agencies that don't use our data. So as you know, that's a big part of the penetration opportunity. As I said earlier in my comments, we're adding more state resources to really help drive that at the state level.

As you point out, the amendment that we got with the SSA contract a couple of weeks ago, I think is a great proof point that even in this administration, which there's a lot of change going on in Washington, D.C., the value of TWIN is clear. I'd also point out that as you know, most of the TAM, you know, for that $5 billion TAM versus our roughly $800 million run rate of our business, that $4-plus billion is really at the states. There's a lot of states that don't use our data today. There's a lot of agencies that don't use our data. So as you know, that's a big part of the penetration opportunity. As I said earlier in my comments, we're adding more state resources to really help drive that at the state level.

Speaker Change: You know around this and as you point out the amendment that we got to the SSA contract a couple of weeks ago I think is a great proof point that even in this administration which there's a lot of change going on in Washington. Thank you.

You know, the value of twin is clear.

is really at the stage. [inaudible]

Mark Begor: I would also tell you that many states are adopting, if you want to use the term, the DOGE mentality. But the focus on integrity, you know, at the state level, and we play into that too. So we're really enthused around the momentum in the current administration around integrity of social service and tax refund payments like earned income tax credit. And you know, we're really spending a lot of time in DC, but spending a lot of time in the states to really drive growth there. Got it. And then I appreciate the resilience of the business and you providing a recession framework. The recession impacted businesses being down only 3% to 5%. I think that might be better than some investors would expect.

I would also tell you that many states are adopting, if you want to use the term, the DOGE mentality. But the focus on integrity, you know, at the state level, and we play into that too. So we're really enthused around the momentum in the current administration around integrity of social service and tax refund payments like earned income tax credit. And you know, we're really spending a lot of time in DC, but spending a lot of time in the states to really drive growth there.

Speaker Change: If you want to use the term, the Doge mentality, but the focus on integrity [inaudible]

Speaker Change: You know at the state level and we play into that too so we're really enthused around the momentum in the current administration around integrity of social service and tax refund payments like earned income tax credit. [inaudible]

Jeffrey Meuler: Got it. And then I appreciate the resilience of the business and you providing a recession framework. The recession impacted businesses being down only 3% to 5%. I think that might be better than some investors would expect.

Speaker Change: Got it and then I appreciate the resilience of the business and you providing a recession framework.

Speaker Change: The recession impacted businesses being down only three to five percent. I think that might be better than some investors would expect. So how did you come up with that estimate and what are kind of the offsets relative to potential, I guess, end market origination volume declines?

Mark Begor: So how did you come up with that estimate and what are kind of the offsets relative to potential, I guess, end market origination volume declines? Yeah, we've been trying to be pretty consistent on that. Last time we did it was around going into COVID. As you know, we look back to 08-09 which was the last economic event. We looked at how our different business lines performed during that timeframe. You know, which businesses were impacted, which businesses kind of grew through that time frame, and then kind of rolled that forward to the current mix of the business. The other thing we factored in is even since 2021 there's been a meaningful increase in our subscription-based revenue that is not going to be recession impacted or economic impacted.

Speaker Change: Yeah, we've been trying to be pretty consistent on that. Last time we did it was around going into COVID as you know. We looked back to 0809, which was the last economic event.

Speaker Change: We looked at how our different business lines performed during that time frame, which businesses were impacted, which businesses kind of grew through that time frame and then kind of rolled that forward to the current mix of the business. [inaudible]

Mark Begor: Meaning we're locking into like 12-month contracts with volumes in government space and some of our fi space. The other thing, as you know, is that there is an element of countercyclicality that we really carry forward, the same trends we saw in 0809 and in 2021 as we went into the COVID pandemic. You know, where there, when there is an economic event, you may see credit activity slow from a marketing standpoint; it doesn't go to zero obviously, but then there's a real pickup in management of existing books. So more data is used in managing existing portfolios to drive collections and line management. The other thing that I think is also changing along with the subscription revenue is that the value of more data is really a positive for Equifax and a positive for our customers.

Meaning we're locking into like 12-month contracts with volumes in government space and some of our fi space. The other thing, as you know, is that there is an element of countercyclicality that we really carry forward, the same trends we saw in 0809 and in 2021 as we went into the COVID pandemic. You know, where there, when there is an economic event, you may see credit activity slow from a marketing standpoint; it doesn't go to zero obviously, but then there's a real pickup in management of existing books. So more data is used in managing existing portfolios to drive collections and line management. The other thing that I think is also changing along with the subscription revenue is that the value of more data is really a positive for Equifax and a positive for our customers.

in government space and some of our FBI space. [inaudible]

Speaker Change: The other thing is you know is that there is an element of countercyclicality that we really carried forward the same trends we saw in 0809 .

You know, where there when there is an economic event, you may see. [inaudible]

Speaker Change: in management of existing books. So, more data is used in managing existing portfolios to drive collections in line management. .

Speaker Change: The other thing that I think is also changing along with the subscription revenue is that the value of more data.

Speaker Change: is really a positive for Equifax and a positive for our customers, meaning in an economic event, more data will be used in originations because it helps identify those consumers that can really handle that next credit card or that next auto loan or mortgage.

Mark Begor: Meaning, in an economic event, more data will be used in originations because it helps identify those consumers that can really handle that next crash credit card, or that next auto loan, or mortgage. So that power of more data is also a positive for us. Anything John, you'd add?

Meaning, in an economic event, more data will be used in originations because it helps identify those consumers that can really handle that next crash credit card, or that next auto loan, or mortgage. So that power of more data is also a positive for us. Anything John, you'd add?

Speaker Change: so that the power of more data is also a positive for us. [inaudible]

John Gamble: Yeah, just also, just to make sure everyone's clear, right. This is really directional, right. Because what a typical recession is very hard to define. We did everything relative to our long-term framework. So when you see 3% to 5% decline, that's relative to our long-term framework for non-mortgage of 7% to 10%. Right. So what we're talking about is just a very substantial reduction in the level of growth that we would see and an actual decline in those businesses that in our long-term framework would have been growing 7% to 10%. So we think that's quite material. As Mark said, that is somewhat consistent with what we saw back in the last two recessions that we're able to track.

Anything John , you dad? Yeah [inaudible]

John Gamble: Just also just to make sure everyone's clear, right? This is really directional, right? Because what a typical recession is very hard to define.

and we did everything relative to our long-term framework.

John Gamble: So when you see three to five percent decline, that's relative to our long-term framework for non-mortgage of seven to ten Right so what we're talking about is just a very substantial reduction in the level of growth that we would see and an actual decline in those businesses that in our long-term framework would have been growing seven to ten percent so we think that's quite material as Mark said that that is somewhat consistent with what we saw back in the day.

Mark Begor: Jeff, leaving mortgage aside, and I think we all understand the mortgage impact that happens in a recession when typically rates are cut in the back half of a recession. In order to boost economic activity. You know, you've got businesses like government today that are huge for us. And notwithstanding the macro in Washington and around the states around penetrating into the TAM in an economic event, you've got more consumers that are unemployed typically.

John Gamble: in the last two recessions that were able to track. And just leaving mortgages aside, and I think we all understand the mortgage impact that happens in a recession when typically rates are cut in the back half of a recession in order to boost economic activity. You know, you've got businesses like government today that are huge for us. [inaudible]

John Gamble: and notwithstanding the macro in Washington and around the states, around penetrating into the TAM .

John Gamble: In an economic event, you've got more consumers that are unemployed, typically, right? Unemployment goes up, we get a benefit from our unemployment claims business which you saw during the COVID pandemic [inaudible]

Mark Begor: Right.

Right.

Mark Begor: Unemployment goes up, we get a benefit from our unemployment claims business, which you saw during the COVID pandemic, you know, was a significant, I think $75 million or so uptick over a couple of quarters as there was very sharp layoffs during that time frame. But then also with government social services, you'll see more individuals go into government social services, meaning take advantage of it. That drives our business also. So there's just a massive change in our business that's happening quite rapidly over even the 2021 to 2025 time frame around the mix of our businesses, you know, where they are from a recession resiliency basis, you know, those that are recession impacted are still there, but they're a smaller portion of Equifax revenue.

Unemployment goes up, we get a benefit from our unemployment claims business, which you saw during the COVID pandemic, you know, was a significant, I think $75 million or so uptick over a couple of quarters as there was very sharp layoffs during that time frame. But then also with government social services, you'll see more individuals go into government social services, meaning take advantage of it. That drives our business also. So there's just a massive change in our business that's happening quite rapidly over even the 2021 to 2025 time frame around the mix of our businesses, you know, where they are from a recession resiliency basis, you know, those that are recession impacted are still there, but they're a smaller portion of Equifax revenue.

John Gamble: You know, was a significant, I think $75 million or so, off-tick over a couple of quarters as there was very sharp layoffs during that time frame. But then also with government social services you'll see more individuals. You'll see more individuals.

Massive change in our business that's happening quite rapidly.

John Gamble: over even the 21 to 25 time frame around the mix of our businesses, where they are from a recession resiliency basis, those that are recession impacted are still there, but they're a smaller portion of Equifax revenue. And then I would also point you to the increase really across all of our businesses around subscription revenue. Thank you.

Mark Begor: Then I would also point you to the increase really across all of our businesses around subscription revenue, you know, versus transaction revenue. That's a change that's been happening over the last five years, three years, two years. Number one, based on the types of businesses that are growing faster. But also number two, based on how we're going to market, you know, on the kind of way we're positioning our products from a, you know, contractual basis.

Then I would also point you to the increase really across all of our businesses around subscription revenue, you know, versus transaction revenue. That's a change that's been happening over the last five years, three years, two years. Number one, based on the types of businesses that are growing faster. But also number two, based on how we're going to market, you know, on the kind of way we're positioning our products from a, you know, contractual basis.

John Gamble: You know, versus transaction revenue. That's a change that's been happening over the last five years, three years, two years. Number one based on the types of businesses that are growing faster. But also number two based on how we're going to market, you know, on the kind of way we're positioning our products from a, you know, contractual basis. [inaudible]

John Gamble: As Mark stressed in his comments. Right. I think importantly, in non-mortgage, what we think is we'll grow during a typical recession. We think that's really the most important outcome of the substantial change that we have in the percentage of our revenue that's recession-resilient. The amount any individual segment that we showed you could grow, obviously that could be right or wrong and move around. But the fact of the matter is we feel like we're going to grow our non-mortgage business in a typical recession and we think that's very substantial.

Mark Begor: Yeah, and it's Mark Screston in his comments, right? I think importantly a non-mortgage

Mark Begor: What we think is we'll grow during a typical recession. And we think that's really the most important outcome of the substantial change that we have in the percentage of our revenue that's recession resilient. The amount any individual segment that we showed you could grow, obviously that could be right or wrong and move around, but the fact of the matter is we feel like we're going to grow our non-mortgage business in a typical recession, and we think that's very substantial.

Operator: Thank you. Next question is coming from Andrew Steinerman from JP Morgan. Your line is now live. Hi John, just two questions.

Speaker Change: Thank you. Your next question is coming from Andrew Steinerman from JP Morgan. Your line is now live

Mark Begor: One is, could you just give us?

Andrew Steinerman: One is, could you just give us?

Speaker Change: Hi John , just two questions. One is, could you just give us in the quarter, just reported the percentage of US mortgage revenues. And then the second question has to do with free cash flow. Obviously this is that great inflection year where free foot cash flow for the year is guided to be strong in terms of conversion of free cash flow. But when I look at the first quarter. I'm going to give you a little bit of information. I'm going to give you a little bit of information. I'm going to give you a little bit of information.

Operator: In the quarter just reported, the percentage of US mortgage revenues. And then the second question has to.

In the quarter just reported, the percentage of US mortgage revenues. And then the second question has to.

Mark Begor: Do with free cash flow. Obviously this is that great inflection year.

Do with free cash flow. Obviously this is that great inflection year.

Operator: Where free cash flow for the year is guided to be strong in terms.

Where free cash flow for the year is guided to be strong in terms.

Mark Begor: Of conversion of free cash flow.

Of conversion of free cash flow.

Operator: But when I look at the first quarter, it doesn't have that high conversion rate. I surely know it's been a while since we've seen seasonality. So just help us bridge the free.

But when I look at the first quarter, it doesn't have that high conversion rate. I surely know it's been a while since we've seen seasonality. So just help us bridge the free.

Mark Begor: Cash flow that we just saw in.

Cash flow that we just saw in.

Operator: The Q1 with the strong free.

The Q1 with the strong free.

Mark Begor: Cash flow conversion that you're guiding for.

Cash flow conversion that you're guiding for.

Operator: The rest of the year. Then I assume that's sort of.

The rest of the year. Then I assume that's sort of.

Mark Begor: Like the conversion we can expect going forward. Yes.

Like the conversion we can expect going forward. Yes.

John Gamble: So, to your first question, it's 21%. Right. To your second question, free cash flow.

Yes, so to your first questions, 21% right? [inaudible]

Mark Begor: For Equifax, 21% is a percent of mortgage revenue.

For Equifax, 21% is a percent of mortgage revenue.

to your second question. [inaudible]

John Gamble: It's a percent of mortgage revenue. That was your first question. Right. 21% is your percent of mortgage revenue. In terms of free cash flow, Q1 for Equifax, free cash flow is always much lower. Right. Which would mean our conversion would be lower, principally because it's the period in which we pay out our variable compensation.

It's a percent of mortgage revenue. That was your first question.

Speaker Change: Free Cash Flow for Echo, 21% is a percent of mortgage revenue. That was your first question, 21% is your percent of mortgage revenue.

Mark Begor: Right. 21% is your percent of mortgage revenue.

John Gamble: In terms of free cash flow, Q1 for Equifax, free cash flow is always much lower. Right. Which would mean our conversion would be lower, principally because it's the period in which we pay out our variable compensation.

Speaker Change: In terms of free cash flow, the first quarter for Equifax free cash flow is always much lower, which would be in our conversion would be lower, principally because it's the period in which we pay out our variable compensation. Thank you.

Mark Begor: From the prior year.

John Gamble: From the prior year. So it's a very large payment that occurs in the first quarter. The reason why the growth in free cash flow doesn't look as strong in Q1 2025 relative to 2024 is that the payments made in the first quarter of 2025 were substantially larger than the payments made in the first quarter of 2024. Because as you'll remember, 2023 was a more difficult year for us. So our variable comp payments were much lower. If you were to normalize the variable comp payments and free cash flow, our growth rate would be over 20% in Q1 2025 versus Q1 2024. So we feel good about the way free cash flow came in and it's actually very consistent with the $900 million number that we talked about when we gave guidance both in February and in April.

Speaker Change: is that the payments made in the first quarter of 2025 were substantially larger than the payments made in the first quarter of 2024 because as you'll remember 2023 was a more difficult year for us.

Speaker Change: So our variable comp payments were much lower. If you were to normalize the variable comp payments in free cash flow, our growth rate would be over 20% in first quarter, 25 versus first quarter, 24. So we feel good about the way free cash flow came in, and it's actually very consistent. Thank you.

Speaker Change: with the 900 million number that we talked about when we gave guidance both in February and in April .

Operator: Thank you. Next question is coming from Manal Patnaik from Barclays. Your line is now live.

Speaker Change: Taking next question is coming from Manav Patnaik, from Barclays, your line is our line from Manav Patnaik,

Mark Begor: Hey, this is Brendan for Manal.

Manav Patnaik: Hey, this is Brendan for Manal.

Jeff Mueller: I just want to ask on just.

I just want to ask on just.

Mark Begor: The level of visibility you have for Q2 and kind of the.

The level of visibility you have for Q2 and kind of the.

Speaker Change: Hey, this is Brendan on from Manav. I just want to ask on just the level of visibility you have for the second quarter and kind of the trends you saw the

Mark Begor: Trends you saw the first couple weeks.

Trends you saw the first couple weeks.

Mark Begor: Of April, and not just mortgage, but also kind of your non-mortgage, your.

Of April, and not just mortgage, but also kind of your non-mortgage, your.

Speaker Change: First couple weeks of April , and not just March as well, so kind of your non-mortgage, your consumer and card and other categories like that.

Mark Begor: Consumer, card, and other categories like that.

Consumer, card, and other categories like that.

Mark Begor: Yeah, you know we kind of talked about that in our prepared comments around the second quarter. I think, you know, we have quite a bit of visibility in the second quarter, you know, in most of our business lines. Actually the vast majority, you know, outside of what happens with rates, you know, on mortgage, everything else, I think we have clear visibility. You know we talked about that auto has been a little bit stronger, perhaps some pre-tariff buying, you know, in lending happening. But all the other businesses, you know, we've really seen no negative impact. If anything, it's been extremely muted, you know, in any kind of our activity. So, you know, we've got a good visibility. You know, where rates are going to go with what's happening in Washington is hard to read.

Speaker Change: Yeah, we kind of talked about that in our prepared comments around the second quarter. I think we have quite a bit of visibility in the second quarter.

Speaker Change: You know, in most of our business lines actually the vast majority you know outside of what happens with rates you know on mortgage everything else I think we have clear [inaudible]

Mark Gamble, Mark Begor, Trevor Burns

Um, you know, any kind of our uh, [inaudible]

Mark Begor: I think you saw the variability we had in the first quarter, you know, versus our, you know, minus 13 framework ending up at minus 9 because there was some, you know, lower rates for a number of weeks that really boosted mortgage activity. The guide that we put together for second quarter in the year we think reflects what we're seeing over the last couple weeks on mortgage.

I think you saw the variability we had in the first quarter, you know, versus our, you know, minus 13 framework ending up at minus 9 because there was some, you know, lower rates for a number of weeks that really boosted mortgage activity. The guide that we put together for second quarter in the year we think reflects what we're seeing over the last couple weeks on mortgage.

Speaker Change: You know, lower rates for a number of weeks that really boosted mortgage activity. The guide that we put together for second quarter in the year, we think is reflects what we're seeing over the last couple of weeks on mortgage.

Operator: Thank you. Next question is coming from Tony Kaplan from Morgan Stanley. Your line is now live.

Speaker Change: Thank you. Next question is coming from Toni Kaplan from Morgan Stanley , your line is not live to live.

Tony Kaplan: Thanks so much. I wanted to ask a follow up on government just to confirm. I wanted to make sure the low double digit in government is for Q2 that you're expecting. And does that have with the SSA amendment that you just signed, like is there a disproportionate amount in Q2 or is that sort of recognized straight line through the next.

Toni Kaplan: Thanks so much. I wanted to ask a follow up on government just to confirm. I wanted to make sure the low double digit in government is for Q2 that you're expecting. And does that have with the SSA amendment that you just signed, like is there a disproportionate amount in Q2 or is that sort of recognized straight line through the next.

Tony Kaplan: Thanks so much. I wanted to ask a follow-up on government, just to confirm I wanted to make sure the low double digit in government is for 2Q that you're expecting and

Mark Begor: No, that spreads through the quarters in a normal fashion. There's some level of ramping but you know, not disproportionate.

John Gamble: The low double-digit does reflect is in the second quarter as well.

Mark Begor: Yep.

Tony Kaplan: and the low double digit does reflect is in the second quarter as well, yes. [inaudible]

Tony Kaplan: Okay, fantastic. And then, you know, I think that's, that's better than expected. And then also if I look at talent, talent was better than expected in Q1, I guess maybe just shifting to talent. What, what were the main sort of drivers that got you to that better spot? And how should we think about talent as we sort of go through towards the back half of the year as well? Thanks.

Toni Kaplan: Okay, fantastic. And then, you know, I think that's, that's better than expected. And then also if I look at talent, talent was better than expected in Q1, I guess maybe just shifting to talent. What, what were the main sort of drivers that got you to that better spot? And how should we think about talent as we sort of go through towards the back half of the year as well? Thanks.

Okay, fantastic. And then, you know, I think...

Tony Kaplan: I guess maybe he's just shifting to talent. What were the main sort of drivers that got you to that better spot and how should we think about talent as we...

Mark Begor: Yeah. So really in Q1, you know, we exited the year with, you know, kind of some tight hiring markets that we heard from our customers and we saw in our numbers. So the market ended up being a little bit better as we went into February and March than, you know, what we saw in January. And kind of the framework we put together, that was a portion of the, what I would call strong performance from talent. But there was also a significant portion of just, you know, kind of execution with new products, you know, expanding our penetration into the background screening TAM, you know, new solutions that we're bringing to customers. You know, that's really helping us outgrow the underlying market, you know, in a positive way.

Tony Kaplan: sort of go through towards the back half of the year as well, thanks.

Tony Kaplan: Yeah, so really in first quarter, we exited the year with some tight hiring markets that we heard from our customers and we saw on our numbers.

Tony Kaplan: So the market ended up being a little bit better as we went into February and March than what we saw in January and kind of the framework we put together together.

Tony Kaplan: That was a portion of what I would call strong performance from talent, but there was also significant portion of just kind of execution with new products.

Tony Kaplan: You know, expanding our penetration into the background screening tam, you know, new solutions that were bringing to customers, you know, that's really helping us outgrow the underlying market, you know, in a positive way and of course record additions.

Mark Begor: Of course record additions, you know, drives, you know, just more records across all of the Workforce Solutions business, including talent.

Of course record additions, you know, drives, you know, just more records across all of the Workforce Solutions business, including talent.

Tony Kaplan: You know, drives, you know, just more records across all of the workforce solutions business including a talent. [inaudible]

John Gamble: Yeah. Look, low single digits also just reflects that the year-ago period. Q1 2024 was just weaker than Q1 2020, second than Q2 2024. So we just have a greater difference. Also, we're assuming that we're going to see hiring weaken a bit as we go through the year. Right. So we didn't change our full year guide. Our full year guide had weaker hiring for the year when we, when we provided the guide back in February. We've assumed that's going to continue and start to occur as we go through Q2 and then be in place in Q3 and Q4.

Yeah, and look, low single digits also is this reflex set?

Tony Kaplan: The year ago, period, first quarter of 24 was just weaker than first quarter, second quarter of 24. So we just have a grover difference.

Tony Kaplan: And also, we're assuming that we're going to see hiring weaken a bit as we go through the year, right? So we didn't change our full-year guide. Our full-year guide had weaker hiring for the year when we when we provided the guide back in February and we've assumed that's going to continue and and and start to occur as we go through the second quarter and then be in place in the third and fourth

Operator: Thank you. Our next question is coming from Kyle Peterson from Needham & Company. Your line is now live.

Speaker Change: Thank you. Our next question is from Kyle Peterson from Neiman Company. Your line is now live.

Kyle Peterson: Great. Good morning guys, and thanks for taking the questions. Just want to clarify on some of the moving pieces within the guide. I know it sounds like at least you have the Q1 upside, and then you're at least reflecting that mortgage kind of compressed a bit in the last few weeks, but I guess the first few weeks since, you know, tariffs and some of this stuff has driven a lot of things into a more volatile state here. Does the guide reflect what you guys have seen in the last few weeks across the board, or is some of the decision making and everything been a little too volatile to extrapolate based on the last two weeks that you guys held the guide?

Kyle Peterson: Great, good morning guys, and thanks for taking the questions. Just wanted to clarify some of the moving pieces within the guide. I know it sounds like at least the one queue upside and then you're at least reflecting the mortgage kind of compressed the bed in the last few weeks.

Kyle Peterson: But I guess the first few weeks since, you know, tariffs and some of this stuff has driven a lot of things into more volatile state here. Does the guy reflect what you guys have seen in the last few weeks across the board or is? [inaudible] I don't know what you guys are doing.

Kyle Peterson: is some of the decision making and everything's been a little too volatile to extrapolate based on the last two weeks so you guys held the guide.

Mark Begor: We certainly factored into our guide of holding the full year guidance even with a Q1 beat, as we said you would expect. We would typically be raising the year based on that. But there's just so much uncertainty in our eyes around where the economy is going likely in H2, meaning that there's enough visibility through Q2. Given that we're approaching the tail end of April, we thought it was prudent to be balanced or conservative, whatever term you want to use, and just hold the full year guidance until we, you know, see more around, you know, what kind of economic event we're going to have.

Kyle Peterson: We certainly factored into our guide of holding the full year guidance even with a first quarter beat as we said you know you would expect and we would typically be raising the year based on that but there's just so much uncertainty. [inaudible]

Kyle Peterson: in our eyes around where the economy's going likely in the second half, meaning that there's enough visibility through the second quarter, given that we're approaching the tail end of April . We thought it was prudent to be balanced or conservative, whatever term you want to use and just hold the full your guidance until we...

Kyle Peterson: You know, see more around, you know, what kind of economic event we're gonna have, as you know there's been a...

Mark Begor: As you know, there's been a, you know, kind of a CNBC and, you know, Wall Street Journal call for, you know, recession in the second half, you know, by the expert economists, you know, if that's going to happen. That's tough to factor into a guide. When you have strong first quarter performance and, you know, we think, you know, decent second quarter performance, it's hard to handicap what that means in the second half. So we felt it was balanced, you know, to put together a guide that just holds the full year. Full year numbers.

As you know, there's been a, you know, kind of a CNBC and, you know, Wall Street Journal call for, you know, recession in the second half, you know, by the expert economists, you know, if that's going to happen. That's tough to factor into a guide. When you have strong first quarter performance and, you know, we think, you know, decent second quarter performance, it's hard to handicap what that means in the second half. So we felt it was balanced, you know, to put together a guide that just holds the full year. Full year numbers.

Kyle Peterson: Kind of a CNBC and a Wall Street Journal call for a recession in the second half by the expert economist, if that's going to happen, that's tough to factor into it.

Kyle Peterson: into a guide when you have strong first quarter performance and you know we think that you know decent second quarter performance is hard to handicap what that means in the second half so we felt it was balanced. [inaudible]

Jeff Mueller: Yeah.

John Gamble: Yeah.

Kyle Peterson: you know, to put together a guide that just holds the full year numbers. Yeah, and mortgage, as we said, the trend's actually weakened over the past 10 days.

John Gamble: Mortgage that, as we said, the trends actually weakened over the past 10 days and the trends that we're seeing.

Mortgage that, as we said, the trends actually weakened over the past 10 days and the trends that we're seeing.

Mark Begor: Along with the tenure, along with the.

John Gamble: Turn in mortgage rates are fairly consistent, right? With the guidance we gave for the year, right? So yes, we saw a better first quarter, but we saw much weakening in the first two weeks in mortgage as mortgage rates went up. So our quarter and our year reflect those run rates, and we didn't really see weakening in any other line of business over the last couple of weeks, right? So I guess to your question, yes, it reflects the run rates we're seeing currently.

Kyle Peterson: So our quarter and our year reflect those run rates, and we didn't really see weakening in any other line of business over the last couple of weeks, right? So I guess for your question, yes, it reflects the run rates we're seeing currently. Thank you very much.

Kyle Peterson: Okay, okay, that is very helpful. Then maybe just a follow-up, I guess in aggregate, you know, it seems like the non-mortgage business is holding up pretty well. Is there anything you guys are seeing either in the data or conversations with customers, whether you're getting any sort of tightening in areas, whether it be, you know, subprime versus higher-end consumers, or has it really been broad-based, not just in aggregate but at a more kind of micro level as well?

Okay, that is very helpful and then...

Speaker Change: You know, maybe just a follow-up, I guess, an aggregate, you know, it seems like the non mortgage businesses is holding up pretty well.

Speaker Change: Is there anything you guys are seeing either in the data or conversations with...

Speaker Change: with customers, whether you're getting any types of tightening in areas, whether it be, you know, subprime versus high-run consumers, or has it really been broad based, not just in aggregate, but at a more micro level as well. Now, let's go.

Mark Begor: I think the conversations are much like this conversation. You know, their businesses are performing well, the consumer's still working, meaning unemployment still low. But they're also watching, you know, what's happening in Washington, and all reflecting on is there going to be a second half event. We haven't seen a change, you know, in how they're operating. We haven't seen a change in buying behavior. We've seen a little bit of impact in Canada and in the UK, which perhaps are more tariff impacted. You know, with some of the conversations in March were quite aggressive, you know, pointed north at Canada. There was, you know, consumer confidence went down in Canada, and there may have been, you know, some pullback principally in consumer activity. It's very de minimis.

Speaker Change: I think conversations are much like this conversation, their businesses are performing well, the consumers still working, meaning unemployment is still low

Speaker Change: But they're also watching what's happening in Washington and all reflecting on, is there going to be a second half of that? We haven't seen a change in how they're operating. We haven't seen a change in buying behavior. We've seen a little bit of impact in Canada.

and in the UK.

Speaker Change: which perhaps are more terror impacted, you know, with some of the conversations in March were quite aggressive, you know, pointed north of Canada. There was...

Speaker Change: You know, consumer confidence went down in Canada and there may have been, you know, some pullback principally in consumer activity. It's very diminimous, but you know, that's the only place that we've seen anything that I would characterize as, you know, kind of an economic, you know. [inaudible]

Mark Begor: But you know, that's the only place that we've seen anything that I would characterize as kind of an economic, you know. I wouldn't even use the term slowdown. But you know, any kind of change, you know, outside of that, I think everyone's, you know, watching to see, you know, what's going to happen. And you know, to us one of the big indicators I always watch is what's happening with employment if people are still working. And as you know, we had a good number a couple weeks ago. If people are still working, that's good for our customers and it's good for Equifax, you know, and will that change? We'll have to see. But it's clearly a super uncertain environment which is why we wanted to be balanced around our guide for the rest of the year and the trends in.

But you know, that's the only place that we've seen anything that I would characterize as kind of an economic, you know. I wouldn't even use the term slowdown. But you know, any kind of change, you know, outside of that, I think everyone's, you know, watching to see, you know, what's going to happen. And you know, to us one of the big indicators I always watch is what's happening with employment if people are still working. And as you know, we had a good number a couple weeks ago. If people are still working, that's good for our customers and it's good for Equifax, you know, and will that change? We'll have to see. But it's clearly a super uncertain environment which is why we wanted to be balanced around our guide for the rest of the year and the trends in.

Speaker Change: I wouldn't even use the term slowdown, but any kind of change. Outside of that, I think everyone's watching to see what's going to happen. And to us, one of the big indicators I always watch is. [inaudible]

Speaker Change: What's happening with employment? If people are still working and as you know we had a good number a couple weeks ago, if people are still working that's good for our customers and it's good for Equifax, you know and will that change we'll have to see but it's clearly a super uncertain environment which is why we wanted to be balanced around our guide for the rest of the year. We'll have a good number a couple weeks ago. We'll have a good number a couple weeks ago. We'll have a good number a couple weeks ago.

John Gamble: Terms of the health of the consumer are consistent with what they've been for the last 18 months. Right. You're seeing some weakening in subprime. You're seeing delinquencies go up slightly in card and auto. But this has been the same story that we've talked about every quarter for probably a year and a half and we really haven't seen it move above subprime.

Speaker Change: and the trends in terms of the health of the consumer are consistent with what they've been for the last 18 months, right? You're seeing some weakening in subprime or seeing delinquencies go up slightly in card and auto, but this has been the same story that we talked about every quarter for probably a year and a half, and we really haven't seen it move above subprime. [inaudible]

Operator: Thank you. Next question is coming from Shlomo Rosenbaum from Stifel. Your line is now live.

Speaker Change: Bacon, next question is coming from Shlomo Rosenbaum from Steve for your line is now live [inaudible]

Mark Begor: Hi. Yeah, thank you very much.

Shlomo Rosenbaum: Hi. Yeah, thank you very much.

John Gamble: I just want to ask a little bit about like a follow up on the last question with your banking and financial customers.

I just want to ask a little bit about like a follow up on the last question with your banking and financial customers.

Shlomo Rosenbaum: Hi, yeah, thank you very much. I just want to ask a little bit about like a call up on the last question.

Mark Begor: Are they doing anything now or is it wait and see?

Are they doing anything now or is it wait and see?

Shlomo Rosenbaum: With your banking and financial customers, are they doing anything now, or is it wait and see, is it a deer in the headlights? And also, you know, mark your whole career, I think was in financial services, work on card.

John Gamble: Is it a deer in the headlights?

Is it a deer in the headlights?

Mark Begor: Also, you know, Mark, your whole.

Also, you know, Mark, your whole.

John Gamble: Career, I think, was in financial services, worked on card.

Career, I think, was in financial services, worked on card.

Mark Begor: Are they usually ahead of the curve?

Are they usually ahead of the curve?

John Gamble: Concurrent or lagging when something changes over there?

Concurrent or lagging when something changes over there?

Shlomo Rosenbaum: Are they usually ahead of the curve concurrent or lagging when something changes over there? Like how should we think about that? [inaudible]

Mark Begor: Like, how should we think about that?

Like, how should we think about that?

Mark Begor: I think increasingly just with the sophistication of data and the sophistication of CROs across all the financial services companies, they're quite responsive. What they're looking at is that obviously they've been managing, as John pointed out, some subprime delinquencies. But you know, the core consumer where most of the financial activity is, is still employed, still operating. Well, inflation is down from where it was. So no, we haven't seen it. We would see, I think I used in my comments, we haven't seen any uptick in kind of special projects to rescore portfolios when they're worried about risk that will happen. We'll see an uptick in revenue there when they're starting to see stress with the consumer or unemployment go up. That hasn't happened yet.

Shlomo Rosenbaum: I think they're increasingly just with the sophistication of data and sophistication of CROs across all the financial services companies. They're quite responsive.

Shlomo Rosenbaum: What they're looking at is that obviously they've been managing as John pointed out some subprime delinquencies, but

Shlomo Rosenbaum: The core consumer where most of the financial activity is still employed, still operating well, inflation is down from where it was.

Shlomo Rosenbaum: So, no, we haven't seen it. We would see, I think I used in my comments, you know, we haven't seen any uptick in, you know, kind of special projects to, you know, rescore portfolios when they're worried about the, you know, risk that will happen.

Shlomo Rosenbaum: You know, we'll see an uptick in revenue there, you know, when they're starting to see stress with a consumer or unemployment go up, that hasn't happened yet [inaudible]

Mark Begor: But we're getting ready, you know. We're going to see likely some impact, you know, in late second quarter and into the second half with the student lending, you know, collection starting again. You know, we all saw that announcement yesterday from the head of the Department of Education. You know, that's going to be an impact in the second half. You know, that'll be one that, you know, will be helping our customers manage through that with more data around who's going to be impacted and why, and what that means for their other financial services lines and exposure they have out there. But no, you know, I think everyone's watching to see, you know, when there's going to be those early signals of a change in economic activity. You know, everyone's, I think, watching consumer and corporate confidence, which is going in the wrong direction. That's a problem.

But we're getting ready, you know. We're going to see likely some impact, you know, in late second quarter and into the second half with the student lending, you know, collection starting again. You know, we all saw that announcement yesterday from the head of the Department of Education. You know, that's going to be an impact in the second half. You know, that'll be one that, you know, will be helping our customers manage through that with more data around who's going to be impacted and why, and what that means for their other financial services lines and exposure they have out there. But no, you know, I think everyone's watching to see, you know, when there's going to be those early signals of a change in economic activity. You know, everyone's, I think, watching consumer and corporate confidence, which is going in the wrong direction. That's a problem.

but we're getting ready.

Shlomo Rosenbaum: We're going to see likely some impact in late second quarter and into the second half with the student lending.

Shlomo Rosenbaum: Collection Starting Again. We saw that announcement yesterday from the head of the Department of Education. That's going to be an impact in the second half. That will be one that will be helping our customers manage through that with more data around who's going to be impacted and why, what that means for their other. First.

Shlomo Rosenbaum: Financial Services Lines, and exposure they have out there. But no, I think everyone's watching.

Shlomo Rosenbaum: to see when there's going to be those early signals of a change in economic.

Activity,

Shlomo Rosenbaum: You know everyone's I think watching consumer and corporate confidence which is going in the wrong direction that's a problem [inaudible]

Mark Begor: But people are still working. And once that changes, I think we'll start to see some changes in activity. You may see, you know, a customer start to tighten up, credit lines change, score cutoffs, but they're still going to keep originating, but just be more prudent on the marketing side. And then we would expect to see them start to do some more portfolio management work, which would benefit Equifax. That's part of the countercyclical element of a company like ours. In a downturn, we offset part of that marketing decline. It just hasn't happened yet, and we don't see any signs of it yet.

But people are still working. And once that changes, I think we'll start to see some changes in activity. You may see, you know, a customer start to tighten up, credit lines change, score cutoffs, but they're still going to keep originating, but just be more prudent on the marketing side. And then we would expect to see them start to do some more portfolio management work, which would benefit Equifax. That's part of the countercyclical element of a company like ours. In a downturn, we offset part of that marketing decline. It just hasn't happened yet, and we don't see any signs of it yet.

Shlomo Rosenbaum: But people are still working and once that changes, I think we'll start to see some. [inaudible]

Shlomo Rosenbaum: Credit lines, change, score cutoffs, but they're still going to keep originating but just be more prudent on the marketing side.

Shlomo Rosenbaum: and then we would expect to see them start to do some more portfolio management. Thank you very much.

Speaker Change: Work, which would benefit Equifax. That's part of the counter-sickical element of a company like ours in a downturn. We all set part of that marketing decline. It just hasn't happened yet, and we don't see any signs of it yet. We saw really good revenue performance in our offline business, which was very good. So they are doing projects, right? They're doing archives. We saw nice growth in payments. We even saw some growth in pre-screen, right? So, pre-screen projects. So...

John Gamble: And we saw really good revenue performance in our offline business, which was very good. So they are doing projects. Right. They're doing archives. We saw nice growth in payments. We even saw some growth in prescreen. Right. So prescreen projects. I think what we're seeing is with Data Fabric now and with Ignite now, we're finding that our ability to deliver is very strong analytics and also our ability to deliver real time. So I think we feel very, very good about the position of that business, and we did see strength there. So our customers are investing.

Speaker Change: and I think what we're seeing is with data fabric now and with ignite now we're finding that our ability to deliver is very strong analytics and also our ability to deliver real time. So I think we feel very, very good about the position of that business and we did see strength there. So our customers are investing. [inaudible]

Mark Begor: Okay, great. I want to pivot to something completely.

Shlomo Rosenbaum: Okay, great. I want to pivot to something completely.

John Gamble: Outside of what's been talked about.

Outside of what's been talked about.

Speaker Change: OK, great, I want to pivot to something completely outside of what's been talked about.

Mark Begor: One of the smaller competitors to The Work Number, True Work, is being sold to Checkr.

One of the smaller competitors to The Work Number, True Work, is being sold to Checkr.

John Gamble: I just wanted to ask you what you made of that transaction and how?

I just wanted to ask you what you made of that transaction and how?

Mark Begor: You think about it in terms of, you know, the talent business, in terms.

You think about it in terms of, you know, the talent business, in terms.

Mark Begor: You know, what it says about the industry. Just want to get some.

You know, what it says about the industry. Just want to get some.

Speaker Change: The talent business in terms of what it says about the industry just want to get some of your thoughts.

Mark Begor: Some of your thoughts. Yeah, to be honest, I don't think we spent a bunch of time on it. You know, we saw the announcement. We're not. I'm not really sure what their Checkr strategy is in buying the business. We know it's super small. I think their revenue is, you know, something around $20 to $25 million of revenue. So it's quite small. We talked many times that we don't really feel an impact from them in the marketplace, given the scale of our data assets. I believe they do a lot of what I would characterize as manual verifications, which would typically happen when we don't have the records. But, no, I don't know a lot about what Checkr's strategy is. Checkr's a customer, and we interact with them and have a lot of respect for them.

Speaker Change: Yeah, to be honest, I don't think we spent a bunch of time on it. You know, we saw the announcement. We're not, I'm not really sure what their checker strategy is in buying. [inaudible]

Speaker Change: The business, we know it's super small. I think their revenue is something around 20, 25 million dollars of revenue, so it's quite small. We talk many times that we don't really feel an impact from them in the marketplace. It's a great place.

Speaker Change: You know, given the scale of our data assets, I believe they do a lot of what I would characterize as manual verifications, which would typically happen when we don't have the records. [inaudible]

Mark Begor: I'm sure we'll engage with them after they complete the acquisition and just understand how we can either work together or how we'll certainly compete against them.

I'm sure we'll engage with them after they complete the acquisition and just understand how we can either work together or how we'll certainly compete against them.

Operator: Thank you. Next question is coming from Andrew Nicholas, from William Blair. Your line is now live.

Mark Begor: Hi, good morning. Thanks for taking my question. I wanted to go back to the recession scenario that you outlined and maybe ask about the puts and takes on margins in your framework. I would imagine incremental margins on mortgage are pretty helpful there, but curious about.

Andrew Nicholas: Hi, good morning. Thanks for taking my question. I wanted to go back to the recession scenario that you outlined and maybe ask about the puts and takes on margins in your framework. I would imagine incremental margins on mortgage are pretty helpful there, but curious about.

Speaker Change: But curious about maybe the offsetting impact in the other pieces or is that 50 basis point kind of annual margin expansion target from your long term framework would still apply and that that sort of scenario as well.

Mark Begor: Maybe the offsetting impacts and the other pieces, or if that 50 basis points.

Maybe the offsetting impacts and the other pieces, or if that 50 basis points.

Mark Begor: Kind of annual margin expansion target from.

Kind of annual margin expansion target from.

Mark Begor: Your long term framework would still apply.

Your long term framework would still apply.

Mark Begor: In that sort of scenario as well. Yeah, first off, margins, incremental margins on all Equifax growth is very attractive. They're very high incremental margins, whether it's mortgage or non mortgage really across Equifax. So you know, when you think about, you know, a business, our business growing in the 5% to 10% range, there's a lot of operating leverage there. I would remind you. Second is that, you know, we didn't really put this into our model, but we have the ability to tighten our belt cost-wise, you know, if dependent upon what kind of economic event is there. But that's something that we would certainly be thoughtful about. We typically in other economic events like during the COVID pandemic, we kept investing because of our view of the future and the high incremental margins we have.

In that sort of scenario as well.

Mark Begor: Yeah, first off, margins, incremental margins on all Equifax growth is very attractive. They're very high incremental margins, whether it's mortgage or non mortgage really across Equifax. So you know, when you think about, you know, a business, our business growing in the 5% to 10% range, there's a lot of operating leverage there. I would remind you. Second is that, you know, we didn't really put this into our model, but we have the ability to tighten our belt cost-wise, you know, if dependent upon what kind of economic event is there. But that's something that we would certainly be thoughtful about. We typically in other economic events like during the COVID pandemic, we kept investing because of our view of the future and the high incremental margins we have.

Speaker Change: Yeah.

Speaker Change: First off margins incremental margins on all Equifax growth is very attractive there are very high incremental margins, whether it's mortgage or non mortgage now really across equifax. So when you think about you know our business our business growing in the 5% to 10% range, there's a lot of operating leverage there.

Speaker Change: I'd remind you second is that we didn't really put this into our model, but we have the ability to tighten our belt cost wise.

Speaker Change: Dependent upon what kind of economic event is there, but that's something that we would certainly be thoughtful about we typically in other economic events like during the Covid pandemic, we kept investing because of the.

Speaker Change: Our view of the future in the high incremental margins. We have so we would expect to you know.

Mark Begor: So we would expect to grow our income and grow our margins in an economic event where we're growing 5% to 10% that has very high incremental margins. And so it's going to result in our ability to continue to grow both the top and the bottom line.

So we would expect to grow our income and grow our margins in an economic event where we're growing 5% to 10% that has very high incremental margins. And so it's going to result in our ability to continue to grow both the top and the bottom line.

Speaker Change: Grow our income and grow our margins in a in an economic event, where we're growing 5% to 10% you know that that has very high incremental margins and so it's going to result in.

Speaker Change: Our ability to continue to grow the both the top and bottom line.

John Gamble: Just as a reminder, if you model it yourself, 7% to 10% is our long-term growth framework, organic. It's that growth rate in which we indicated we could grow 50 basis points. So if however you're modeling recession, you're below that. Well, probably that would impact margin growth. And then also as Mark said, our margins are very strong in mortgage and non-mortgage. But as we've talked about in the past, non-mortgage margins are higher than mortgage margins. Right. So and it's principally because of the pass-through the payments to our partner. Right. So to our vendor. So that our margins are lower in mortgage. They're still very healthy, but they're not as high as they are in non-mortgage.

Speaker Change: Just as a reminder, if you model it yourself right, 7% to 10% is our long term growth framework organic and it's that growth rate in which we we indicated we could grow 50 basis points. So if however, your modeling recession, you're below that while that's probably that would impact margin growth.

Speaker Change: Then also as Mark said, our margins are very strong in mortgage and non mortgage but as we've talked about in the past non mortgage margins are higher than mortgage margins right so be it.

Speaker Change: Principally because of the pass through payments to our partner right. So they get them to our vendor. So the so that our margins are lower than mortgage they are still very healthy, but they're not as high as they are in non mortgage.

Mark Begor: Very helpful, thank you.

Andrew Steinerman: Very helpful, thank you.

Speaker Change: Very helpful. Thank you and then switched.

Mark Begor: And then switching gears a little bit for my follow up and maybe a hard question to answer, but I'm going.

And then switching gears a little bit for my follow up and maybe a hard question to answer, but I'm going.

Speaker Change: Switching gears, a little bit for my follow up and maybe a hard question to answer, but I'm going to ask it anyway.

Mark Begor: To ask it anyway.

To ask it anyway.

Mark Begor: In a choppier macro with The Work Number, does that competitively get prioritized relative to manual options or maybe do-it-yourself verifications from like a direct-to-consumer lens just based on how quickly conditions are changing, or I just wanted to see like from like a relative performance perspective? Yeah.

In a choppier macro with The Work Number, does that competitively get prioritized relative to manual options or maybe do-it-yourself verifications from like a direct-to-consumer lens just based on how quickly conditions are changing, or I just wanted to see like from like a relative performance perspective?

Speaker Change: And a choppy or macro.

Speaker Change:

Speaker Change: With the work number does that competitively get prioritized relative to manual options or maybe do it yourself verifications from like a direct to consumer lens just based on how quickly conditions are changing or.

Speaker Change: I just wanted to see like from like a relative performance perspective.

Mark Begor: Yeah.

Trevor Burns: Expect that to do better.

Andrew Steinerman: Expect that to do better.

Speaker Change: That to do better.

Mark Begor: We think there's a positive trend for the income and employment data in every economic event. If you look at, like, card, you know, it's used in some places but most don't. In an economic event, understanding someone's credit score and if they're working allows that card originator to originate more cards because they have more confidence in that consumer's ability to pay. So you know, in an economic event I would say broadly more data is going to be used and one of the most powerful data assets we have is if someone's working. I would also add to it, you know, our alternative data, whether it's NC DataX, Teletrack, and our new OneScore solution that really drives a lift, you know, in off the straight credit file. That's another example of data that's going to be very valuable, you know, in an economic event.

Speaker Change: We think there's a positive trend for the income and employment data in every economic event.

Speaker Change: If you look at like card, it's used in some places, but most don't in an economic event understanding someone's credit score and if they're working allows that card originator to originate more cards, because they have more confidence that consumers' ability to pay so in.

Speaker Change: An economic event I would say broadly more data is going to be used in one of the most powerful data assets. We have is if someone's working I would also add to it you know our alternative data whether it's a.

Speaker Change: N C plus data ex pellet track and our new one score solution that really drives a lift you know in our office straight credit file. That's another example of data that's going to be very valuable in an economic event. So you know as we move post cloud as we now have all our data in a single data fabric and as we have the ability.

Mark Begor: So you know, as we move post cloud, as we now have all our data in a single data fabric and as we have the ability to really effectively combine data elements using our EFX AI to really drive higher performing solutions, those become more valuable in every economic event. But as you point out, in a downturn it allows our customers to better identify those consumers that can handle the loan typically that they're trying to give to that consumer. So I think we're well positioned to go into an economic event with our differentiated data assets. The fact that we're substantially cloud complete, and as you know, now we're ramping our product and innovation focus because we have the bandwidth to do it with cloud behind us. So we're able to bring those solutions together.

So you know, as we move post cloud, as we now have all our data in a single data fabric and as we have the ability to really effectively combine data elements using our EFX AI to really drive higher performing solutions, those become more valuable in every economic event. But as you point out, in a downturn it allows our customers to better identify those consumers that can handle the loan typically that they're trying to give to that consumer. So I think we're well positioned to go into an economic event with our differentiated data assets. The fact that we're substantially cloud complete, and as you know, now we're ramping our product and innovation focus because we have the bandwidth to do it with cloud behind us. So we're able to bring those solutions together.

Speaker Change: To really effectively combined data elements using our E. FX AI to really drive higher performing solutions those become more valuable in every economic event, but as you point out.

Speaker Change: Downturn it allows our customers to better identify those consumers that can handle the loan typically that they're trying to give to that consumer so.

Speaker Change: I think we're well positioned to go into an economic event with our differentiated data assets. The fact that we're substantially cloud complete and as you know now we're ramping our product and innovation focused because we have the bandwidth to do it with cloud behind us. So we're able to bring those solutions together and I think that the one with.

Mark Begor: I think that, you know, the one that we talked about during the call earlier is the TWIN indicator on mortgage, which is something I've wanted to do since I joined Equifax. You know, we now have in market. It's something we couldn't do before, and only Equifax can do it. We're going to do the same thing in auto, where income is verified on, you know, lots of auto loans, and the same thing in P loans. So, you know, we think we're well positioned with our differentiated data assets to bring, you know, more value to our customers around decisioning, you know, in any economic event, including a downturn.

I think that, you know, the one that we talked about during the call earlier is the TWIN indicator on mortgage, which is something I've wanted to do since I joined Equifax. You know, we now have in market. It's something we couldn't do before, and only Equifax can do it. We're going to do the same thing in auto, where income is verified on, you know, lots of auto loans, and the same thing in P loans. So, you know, we think we're well positioned with our differentiated data assets to bring, you know, more value to our customers around decisioning, you know, in any economic event, including a downturn.

Speaker Change: We talked about during the call earlier. This earlier is the twin indicator on mortgage which is something I wanted to do since I joined Equifax. We now have in market. Its something we couldn't do before and only equifax can do it and we're going to do the same thing in auto where income is verified on lots of auto loans and the same thing in P loans. So we.

Speaker Change: We're well positioned with our differentiated data assets to bring you know.

Speaker Change: More value to our customers around decisioning.

Speaker Change: In any economic event, including a downturn.

Speaker Change: Yeah.

Operator: Thank you. Next question today is coming from Jason Haas from Wells Fargo. Your line is now live.

Speaker Change: Thank you. Your next question today is coming from Jason Haas from Wells Fargo. Your line is now live.

Mark Begor: Hey, good morning, and thanks for taking my question.

Jason Haas: Hey, good morning, and thanks for taking my question.

Jason Haas: Hey, good morning, and thanks for taking my question actually I wanted to follow up on that twin indicator that you. Just mentioned I was curious if you could talk about what the reception has been like.

John Gamble: Actually, I wanted to follow up on.

Actually, I wanted to follow up on.

Mark Begor: That TWIN indicator that you just mentioned. I was curious if you could talk about what the reception's been like. How long does it take mortgage lenders to start to utilize that? We think about it is, you know, it takes several quarters for them to make that switch or what's the time frame? Yeah, it's early days. Yeah, okay. Yeah, it's early days. You know, we've only been in market for, you know, I don't know, 60 days. The reception is super positive. I was one of our, with one of our partners last night and you know, they're helping us bring that to market. Super energized about it.

That TWIN indicator that you just mentioned. I was curious if you could talk about what the reception's been like. How long does it take mortgage lenders to start to utilize that? We think about it is, you know, it takes several quarters for them to make that switch or what's the time frame?

Speaker Change: How long does it take mortgage lenders.

Speaker Change: To start to utilize that should we think about it you know it takes several quarters to make that switch or what's the timeframe and then yeah. It's early days yes.

Yeah, it's early days.

Jason Haas: Yeah, okay.

Mark Begor: Yeah, it's early days. You know, we've only been in market for, you know, I don't know, 60 days. The reception is super positive. I was one of our, with one of our partners last night and you know, they're helping us bring that to market. Super energized about it.

Speaker Change: Yes. It is early days, we bet, we've only been in market for you know I don't know 60 days. The reception is Super positive I was one of our with one of our partners last night and you know, they're helping us bring that to market Super energized about it feedback from the mortgage space is very very positive.

Mark Begor: Feedback from the mortgage space is very, very positive around that shopping window with a consumer, which up until today, the only visibility that a mortgage originator would have or a mortgage broker would have in that window is what their credit score is. We're able now to add an indicator that says they're working. We can add an indicator that says here's their employer. We have an indicator that, here's their last 12 months income, not their current income, but what their average income was. It just gives them confidence on which consumer to work, on which consumers they can move to an application, and which consumers they have confidence they can close. And remember, mortgage originator is spending $5,000 from the start of that shopping process through to a closed loan.

Feedback from the mortgage space is very, very positive around that shopping window with a consumer, which up until today, the only visibility that a mortgage originator would have or a mortgage broker would have in that window is what their credit score is. We're able now to add an indicator that says they're working. We can add an indicator that says here's their employer. We have an indicator that, here's their last 12 months income, not their current income, but what their average income was. It just gives them confidence on which consumer to work, on which consumers they can move to an application, and which consumers they have confidence they can close. And remember, mortgage originator is spending $5,000 from the start of that shopping process through to a closed loan.

Speaker Change: Around that shopping.

Speaker Change: A window with a consumer which up until today. The only visibility that are a mortgage originator would have or a mortgage broker would have in that window. As you know what their credit score is we're able now to add an indicator that says they're working we can add and indicators that says here's their employer, we have an indicator that he was there last week.

Speaker Change: 12 months income not their current income, but you know what there.

Speaker Change: What their average income was it just gives them confidence on which consumer to work on which consumers. They can move to an application in which consumers. They have confidence that can close and remember mortgage originators spending five grand from the start of that shopping process.

Speaker Change: Through to a closed loan so if they can optimize that and close more loans. It makes our our credit file with the Queen indicators Super valuable. So we're really energized around that differentiation. We can now bring to market in mortgage and as I said, we're going to do the same thing in other verticals like auto and card.

Mark Begor: So if they can optimize that and close more loans, it makes our credit file with the Quinn indicator super valuable. So, you know, we're really energized around that differentiation.

So if they can optimize that and close more loans, it makes our credit file with the Quinn indicator super valuable. So, you know, we're really energized around that differentiation.

Mark Begor: We can now bring to market in mortgage.

We can now bring to market in mortgage.

Mark Begor: And as I said, we're going to do the same thing in other verticals like auto and card, I'm sorry, auto and P loans, where these are big ticket transactions, where income and employment, you know, provides real visibility around someone's capacity to repay, you know, along with their propensity to repay from their credit score. Is there any risk? Are you seeing any evidence? I know it's early days that there's been any cannibalization of. Yeah, it's obviously something we're super thoughtful about. No, because you know, the indicators we're using provide we believe enough value to enhance that shopping process. But still, you know, the lender is still required to do a current income validation, you know, for a mortgage that's well defined in an auto typically defined by the lender and then the securitization market and same with P loans.

And as I said, we're going to do the same thing in other verticals like auto and card, I'm sorry, auto and P loans, where these are big ticket transactions, where income and employment, you know, provides real visibility around someone's capacity to repay, you know, along with their propensity to repay from their credit score.

Speaker Change: Sorry, auto and a P loans, where these are big ticket transactions, where income and employment you know provides.

Speaker Change: Provides real visibility around someone's a capacity to repay along with their propensity to repay from their credit score.

Jason Haas: Is there any risk? Are you seeing any evidence? I know it's early days that there's been any cannibalization of.

Speaker Change: Is there any risk or you're seeing any evidence I know, it's early days that theres been any cannibalization of <unk>.

Mark Begor: Yeah, it's obviously something we're super thoughtful about. No, because you know, the indicators we're using provide we believe enough value to enhance that shopping process. But still, you know, the lender is still required to do a current income validation, you know, for a mortgage that's well defined in an auto typically defined by the lender and then the securitization market and same with P loans.

Speaker Change: Yeah, It's obviously something we're super thoughtful about no because you know the indicators were using provide we believe enough value to enhance their shopping process, but still.

Speaker Change: You know that the lender is still required to do a current income validation.

Speaker Change: For a mortgage that's well defined and in auto is typically defined by the lender and then the securitization market and same with P. Loans. So we're obviously trying to balance how much information you've given that shopping process to make sure it's enough to benefit that marketing our shopping window.

Mark Begor: So we're obviously trying to balance how much information you give in that shopping process to make sure it's enough to benefit that marketing or shopping window. But then, as you point out, you know, protect the full TWIN pulls later on. So it's something we'll continue to watch, but we think we have the right balance. And the other thing we expect it'll actually promote in some regards is the use of TWIN. As you know, we don't have full penetration of TWIN in any of those verticals. There's still, you know, a handful of mortgage originators that are fully manual. So by having the TWIN indicator on the shopping file, it helps them know that we have an income and employment report for that consumer, you know, and as you know, we don't have full penetration yet.

So we're obviously trying to balance how much information you give in that shopping process to make sure it's enough to benefit that marketing or shopping window. But then, as you point out, you know, protect the full TWIN pulls later on. So it's something we'll continue to watch, but we think we have the right balance. And the other thing we expect it'll actually promote in some regards is the use of TWIN. As you know, we don't have full penetration of TWIN in any of those verticals. There's still, you know, a handful of mortgage originators that are fully manual. So by having the TWIN indicator on the shopping file, it helps them know that we have an income and employment report for that consumer, you know, and as you know, we don't have full penetration yet.

Speaker Change: But then as you point out protect our full twin pulls later on so it's something we'll continue to watch where we think we have the right balance.

Speaker Change: And the other thing we expect it will actually promote in some regards.

Speaker Change: Is the use of twin as you know we don't have full penetration of twin in any of those verticals. There's still a handful of mortgage originators that are fully manual so by having the twin indicator on the shopping file. It helps them know that we have a income and employment report for that consumer.

Speaker Change: And as you know, we don't have full penetration yet it's going to take a long time to get to the full population, but it also provide that visibility. So there's a lot of benefits that are we're energized about and we're still in the early days as you point out to us.

Mark Begor: It's going to take a long time to get to the full population. But it also provides that visibility. So there's a lot of benefits that we're energized about. And you know, we're still in the early days, as you point out, to, you know, as far as rolling it out in penetration. And that's going to accelerate as we go through second quarter and through the balance of the year. And then of course, we'll add those other verticals later in the year. That's great. And if I could ask a follow up on the EWS margin outlook, it's good to see that the margins came in better in Q1, still down year over year. And it looks like the guidance now implies that the year over year declines will worsen through the year.

It's going to take a long time to get to the full population. But it also provides that visibility. So there's a lot of benefits that we're energized about. And you know, we're still in the early days, as you point out, to, you know, as far as rolling it out in penetration. And that's going to accelerate as we go through second quarter and through the balance of the year. And then of course, we'll add those other verticals later in the year.

Speaker Change: As far as rolling it out in penetration in which we can accelerate as we go through second quarter and through the balance of the year and then of course, we'll add those other verticals are later in the year.

Jason Haas: That's great. And if I could ask a follow up on the EWS margin outlook, it's good to see that the margins came in better in Q1, still down year over year. And it looks like the guidance now implies that the year over year declines will worsen through the year.

Speaker Change: That's great and if I could ask a follow up on the UWS margin outlook, it's good to see.

Speaker Change: The margin came in better than <unk>.

Speaker Change: So still down year over year and it looks like the guidance now implies that the year over year declines will worsen through the year. So I was curious if you could talk about the puts and takes there and what's driving.

Mark Begor: I was curious if you could talk about the puts and takes there and what's driving the margin decline and why it could potentially worsen year over year as we go through the year. Thanks. Yeah.

I was curious if you could talk about the puts and takes there and what's driving the margin decline and why it could potentially worsen year over year as we go through the year. Thanks. Yeah.

Speaker Change: The margin decline.

Speaker Change: Why could potentially worse year over year as we go through the year.

Speaker Change: Yeah again, AWS margins, we think are going to be above 50% right and they are actually strengthening sequentially.

John Gamble: Again, EWS margins we think are going to be above 50%.

Mark Begor: Right.

Right.

John Gamble: They're actually strengthening sequentially. So, you know, I mean, we have said consistently that we expect EWS margins to run in the range we're talking about, and we continue to believe that's the case. Right. So we feel very good about the level of EWS margins. Obviously they're being impacted by the fact that the mortgage market is down. Right. So that's impacting their revenue growth, and they have very high variable profits. So that with obviously a more normalized mortgage market, their margins would certainly be higher. But given the level of the mortgage market, we're very happy with the way their margins are trending.

They're actually strengthening sequentially. So, you know, I mean, we have said consistently that we expect EWS margins to run in the range we're talking about, and we continue to believe that's the case. Right. So we feel very good about the level of EWS margins. Obviously they're being impacted by the fact that the mortgage market is down. Right. So that's impacting their revenue growth, and they have very high variable profits. So that with obviously a more normalized mortgage market, their margins would certainly be higher. But given the level of the mortgage market, we're very happy with the way their margins are trending.

Speaker Change: We have said consistently that we expect dws margins to run in the range, we're talking about and we continue to believe that's the case right. So we feel very good about about the level of AWS margins, obviously, they're being impacted by the fact that the mortgage market is down right. So that's impacting their revenue growth and they have very high variable.

Speaker Change: So that with obviously, a more normalized mortgage market their margins would certainly be higher but given the level of the mortgage market, we're very happy with the way their margins are trending.

Operator: Thank you. Next question today is coming from Joshua Denerlein from Bank of America. Your line is now live.

Speaker Change: Thank you. Your next question today is coming from Joshua General line from Bank of America. Your line is now live.

Jeff Mueller: Hi, good morning.

[Company Representative]: Hi, good morning.

Mohit: Hi, Good morning, it's Mohit <unk> on for Josh.

Mark Begor: It's Wahid Aminan for Josh. Want to touch base on the question earlier about the smaller player that was acquired?

It's Wahid Aminan for Josh. Want to touch base on the question earlier about the smaller player that was acquired?

Mohit: To touch base on the question earlier about these smaller there that was acquired I guess, how do you think about that when it comes to the M&A synergies.

Operator: I guess, how do you think about?

I guess, how do you think about?

Mark Begor: That when it comes to your M&A strategy? Are you focused more on growing TWN records organically through partnerships or do you see a pathway to grow that through the M&A game? Or, on a broader note, how do you view the M&A pipeline currently given your free cash flow growth over the next year? Yeah, so as I said in my comments, I've been saying for, you know, five plus years, bolt-on M&A is integral to our strategy. You know, we have in our long-term framework to grow 8% to 12% with 1 to 2 points of that 8% to 12% from bolt-on M&A, you know, over kind of a long term, but kind of on an annual basis. So that's integral to our strategy. We use the bolt-on term deliberately.

That when it comes to your M&A strategy? Are you focused more on growing TWN records organically through partnerships or do you see a pathway to grow that through the M&A game? Or, on a broader note, how do you view the M&A pipeline currently given your free cash flow growth over the next year?

Mohit: Focus more on growing twin records organically through partnerships or do you see a pathway to grow with that.

Mohit: It would be in the M&A game or.

Mohit: On a broader note how do you view the M&A pipeline currently given your free cash flow growth.

Mark Begor: Yeah, so as I said in my comments, I've been saying for, you know, five plus years, bolt-on M&A is integral to our strategy.

Mohit: Next year.

Mohit: Yeah. So as I said in my comments I've been saying for five plus years, a bolt on M&A as integral to our strategy. We have in our long term framework to grow a eight to 12 with one to two points of that eight to 12 from a bolt on M&A over kind of a long long long term, but kind of on an annual basis.

You know, we have in our long-term framework to grow 8% to 12% with 1 to 2 points of that 8% to 12% from bolt-on M&A, you know, over kind of a long term, but kind of on an annual basis. So that's integral to our strategy. We use the bolt-on term deliberately.

Mohit: <unk>.

Mohit: So that's integral to our strategy we use the bolt on term deliberately we're not looking for large acquisitions or transformational acquisitions, that's not a part of our strategy. We want to strengthen the core of Equifax, We've got really four strategic priorities around bolt on M&A and workforce solutions is one of those strengthening workforce solutions around capabilities.

Mark Begor: We're not looking for large acquisitions or transformational acquisitions. That's not a part of our strategy. We want to strengthen the core of Equifax. We've got really four strategic priorities around bolt-on M&A. And Workforce Solutions is one of those, strengthening Workforce Solutions around capabilities and records, you know. Second is differentiated data, which really checks the same box, identity and fraud, like our Account Mitigator acquisitions, and then international platforms like Boa Vista. With regards to Workforce Solutions, you know, in the last five years we've probably done, you know, eight acquisitions to strengthen Workforce, including, you know, businesses that brought new capabilities around I-9 and other employer solutions that also give us access to employers and records. So really a real clear strategy there.

We're not looking for large acquisitions or transformational acquisitions. That's not a part of our strategy. We want to strengthen the core of Equifax. We've got really four strategic priorities around bolt-on M&A. And Workforce Solutions is one of those, strengthening Workforce Solutions around capabilities and records, you know. Second is differentiated data, which really checks the same box, identity and fraud, like our Account Mitigator acquisitions, and then international platforms like Boa Vista. With regards to Workforce Solutions, you know, in the last five years we've probably done, you know, eight acquisitions to strengthen Workforce, including, you know, businesses that brought new capabilities around I-9 and other employer solutions that also give us access to employers and records. So really a real clear strategy there.

Mohit: And records.

Mohit: Second is differentiated data, which really checks the same box.

Mohit: Indian fraud, like our count mitigate or acquisitions, and then international platforms like Boa Vista.

Mohit: With regards to work force solutions in the last five years, we've probably done.

Mohit: Eight acquisitions to strengthen workforce, including businesses that brought new capabilities around our I nine and other employer solutions that also give us access to employers and records. So really a real clear strategy there with regards to the checker acquisition.

Mark Begor: With regard to the Checkr acquisition, you know, we didn't look at that, we didn't see it as being, you know, a capability that would strengthen the core of Equifax. So it was not in our gun sights. We know the company, we know the leader of it, but it was not something that would fit our strategy for M&A. But you know, to be crystal clear, bolt-on M&A, as I said in my capital allocation discussion, is clearly one of our priorities going forward. And we think we have ample and growing free cash flow and leverage capacity going forward to keep investing in CapEx at very high levels and very high returns, principally around new products to do bolt-on M&A inside of that one to two points a year.

With regard to the Checkr acquisition, you know, we didn't look at that, we didn't see it as being, you know, a capability that would strengthen the core of Equifax. So it was not in our gun sights. We know the company, we know the leader of it, but it was not something that would fit our strategy for M&A. But you know, to be crystal clear, bolt-on M&A, as I said in my capital allocation discussion, is clearly one of our priorities going forward. And we think we have ample and growing free cash flow and leverage capacity going forward to keep investing in CapEx at very high levels and very high returns, principally around new products to do bolt-on M&A inside of that one to two points a year.

Mohit: We didn't look at that we didn't see it as being.

Mohit: A capability that would strengthen the core of equifax. So it was not in our our gun sites that we know the company.

Mohit: No the leader of it but it was not something that would fit our strategy for M&A, but to be crystal clear bolt on M&A as I said in my capital allocation discussion you know is clearly one of our priorities going forward and we think we have a ample.

Mohit: Ample.

Mohit: And growing free cash flow and leverage capacity going forward to keep investing in capex at very high levels and very high returns principally around our new products.

Mohit: To do bolt on M&A inside of that one to two points a year of Rev growth framework and then now we're super energized to have our capital allocation plan to return cash to shareholders through the dividend and the buyback program.

Mark Begor: Of rev growth framework.

Of rev growth framework.

Mark Begor: And then now we're super energized to have our capital allocation plan to return cash to shareholders through the dividend and buyback program.

And then now we're super energized to have our capital allocation plan to return cash to shareholders through the dividend and buyback program.

Operator: Thank you. Next question is coming from Ashish Sabatra from RBC Capital Markets. Your line is now live.

Mohit: Thank you. Your next question is coming from Ashish <unk> from RBC capital markets. Your line is now live.

Trevor Burns: Hi, good morning. This is David Pajon for Ashish. I just had a clarifying question on the amended SSA agreement. I think you mentioned an additional $50 million of annual revenue. Is that just $50 or is it total $100 million?

Ashish Sabadra: Hi, good morning. This is David Pajon for Ashish. I just had a clarifying question on the amended SSA agreement. I think you mentioned an additional $50 million of annual revenue. Is that just $50 or is it total $100 million?

David Page: Hi, Good morning. This is David page on for Ashish I, just had a clarifying question on the.

David Page: SSA agreement I think you mentioned, an additional $50 million.

Speaker Change: Annual revenue is that.

David Page: Is that just 50 or is that.

Speaker Change: Total of $100 million.

Mark Begor: No, it's around 50 and it's part of a contract extension that we did over a year ago. But for us it was important to see SSA, what I would call while it's still in transition in this new administration, see the value of TWIN and move forward to get that program online and operating, which it was a couple weeks ago. And we expect that to grow. So that was a positive for us and it'll roll into our revenue in second, third, and fourth quarter and then continue in the future. We expect it to be a long-term program for Equifax given the value we deliver around those disability income benefits, verifications, validations, and redeterminations.

Speaker Change: No. It's it's it's it's a it's around 50 and it's part of a contract extension that we did over a year ago, but you know for US. It was important to see SSA, what I would call. While it is still in transition in this new administration C.

Speaker Change: See the value of twin and move forward to get that program online and operating which it was a couple of weeks ago, and we expect that to grow so that was a positive for us and Oh, we don't roll into our revenue you know in our second third and fourth quarter and then continue in the future. We expect it to be a long term program for <unk>.

Speaker Change: Equifax, given the value we deliver around those disability income benefits.

Speaker Change: Verifications and invalidation of Redetermination.

Trevor Burns: Great, thanks very much. Appreciate it.

Ashish Sabadra: Great, thanks very much. Appreciate it.

Speaker Change: Great. Thanks, very much appreciate it.

Operator: Thank you. Next question is coming from Kevin McVeigh from UBS. Your line is now live.

Speaker Change: Thank you. Your next question is coming from Kevin Mcveigh from UBS. Your line is now live.

Mark Begor: Great, thanks so much. Hey, just given the uncertainty, it's really terrific to see the results, but what gave you confidence to initiate the capital returns? Obviously is a terrific outcome, but was there any particular trigger that said now is the quarter to do it because again, it's a terrific outcome, but just what gave you the confidence to do it this quarter, particularly given the macro uncertainty? Yeah, as you know, Kevin, this is something that we've had in our plans for a long time. I don't know if it's true, but I suspect it is. I probably, John and I, have talked about it in every earnings call for the last three or four years that we're moving to it. I think the big milestone for us obviously was completing the cloud. Now we're not fully complete yet, but you know, we're north of 85%.

Kevin McVeigh: Great, thanks so much. Hey, just given the uncertainty, it's really terrific to see the results, but what gave you confidence to initiate the capital returns? Obviously is a terrific outcome, but was there any particular trigger that said now is the quarter to do it because again, it's a terrific outcome, but just what gave you the confidence to do it this quarter, particularly given the macro uncertainty?

Kevin Mcveigh: Great. Thanks, so much hey, just.

Speaker Change: Given the uncertainty.

Speaker Change: Really terrific to see the results, but what gives you the confidence to initiate our capital return, which obviously is a terrific outcome, but was there any particular trigger that said now is the quarter to do it because again, it's a terrific outcome, but just what gave you the company should do it this quarter or is it particularly given that the macro uncertainty.

Mark Begor: Yeah, as you know, Kevin, this is something that we've had in our plans for a long time. I don't know if it's true, but I suspect it is. I probably, John and I, have talked about it in every earnings call for the last three or four years that we're moving to it. I think the big milestone for us obviously was completing the cloud. Now we're not fully complete yet, but you know, we're north of 85%.

Speaker Change: Yes.

John Gamble: You know Kevin this is something that we've had in our plans for a long time I don't know if it's true, but I suspect. It is I've, probably John and I have talked about it in every earnings call for the last three or four years that we're moving to it and I think the big milestone for US obviously was completing the cloud now we're not fully complete but we're north of 85.

John Gamble: 5%, we've got some small markets outside the U S. Complete you know that was a big deal for us to get that behind US as you have that brings our capex down.

Mark Begor: You know, we've got some small markets outside the US complete. You know, that was a big deal for us to get that behind us. As you know, that brings our CapEx down. We invested significant excess free cash flow, you know, over the last number of years. We've also had, you know, I'd say a number of quarters, you know, under our belt to see how Equifax is operating post cloud, if I want to use that term. You know, USIS, EWS, you know, our ability to innovate, our ability to roll out new products, you know, so this was a matter of not if, but when. You know, you know, we were prepared to do it. We thought about doing it in Q1. We felt, you know, that was probably a good time to do it, but we decided to defer it to today.

You know, we've got some small markets outside the US complete. You know, that was a big deal for us to get that behind us. As you know, that brings our CapEx down. We invested significant excess free cash flow, you know, over the last number of years. We've also had, you know, I'd say a number of quarters, you know, under our belt to see how Equifax is operating post cloud, if I want to use that term. You know, USIS, EWS, you know, our ability to innovate, our ability to roll out new products, you know, so this was a matter of not if, but when. You know, you know, we were prepared to do it. We thought about doing it in Q1. We felt, you know, that was probably a good time to do it, but we decided to defer it to today.

John Gamble: We invested significant excess free cash flow over the last number of years. We've also had.

John Gamble: Say a number of quarters.

John Gamble: Under our belt to see how Equifax is operating post cloud if I want to use that term U S. I S. UWS.

John Gamble: Our ability to innovate our ability to rollout new products. So this was a matter of.

John Gamble: Not if but when you know what.

John Gamble: We were prepared to do it we thought about doing it in the first quarter you felt that was probably a good time to do it but we decided to defer it to today and you know our board was Super supportive and you know as you can tell from our <unk>.

Mark Begor: You know, our board was super supportive. You know, as you can tell from our, you know, analysis of how we think about how we'll perform in a potential recession, you know, we have a lot of confidence in our ability to grow and generate free cash flow through that period, you know, and our businesses are performing, you know, really well. You know, first quarter, I think, is another proof point, you know, kind of broadly the beat that we had.

You know, our board was super supportive. You know, as you can tell from our, you know, analysis of how we think about how we'll perform in a potential recession, you know, we have a lot of confidence in our ability to grow and generate free cash flow through that period, you know, and our businesses are performing, you know, really well. You know, first quarter, I think, is another proof point, you know, kind of broadly the beat that we had.

Analysis of how we think about how we'll perform in a potential recession.

John Gamble: A lot of confidence in our ability to grow and generate free cash flow through that period.

When our businesses are performing.

John Gamble: Really well you know first quarter I think is another proof point kind of broadly the beat that we had and then you look at the performance of U S. I S. International AWS you look at the government potential you know, we think we can rather whether an economic event.

Mark Begor: And then, you know, you look at the performance of USIS, International, EWS, you look at the government potential, you know, you know, we think we can weather an economic event and, you know, deliver consistently that dividend and dividend growth while still investing in Equifax and then have substantial excess free cash flow that we would expect to grow that will return to shareholders through our buyback program.

And then, you know, you look at the performance of USIS, International, EWS, you look at the government potential, you know, you know, we think we can weather an economic event and, you know, deliver consistently that dividend and dividend growth while still investing in Equifax and then have substantial excess free cash flow that we would expect to grow that will return to shareholders through our buyback program.

John Gamble: You know deliver consistently that dividend and dividend growth, while still investing in equifax and then have a substantial excess free cash flow that we would expect to grow that we will have returned to shareholders through our buyback program is.

John Gamble: Also, balance sheet is now at 2.5x. That was a goal. So now the balance of the balance sheets where we said, and CapEx this quarter was at a run rate, which is at the levels that we've talked about getting it down to this year. Right. So substantial reduction in CapEx that we delivered in the first quarter. So those things actually strengthen your comfort with free cash flow going forward.

John Gamble: It's now two and a half times, yes that was a goal. So now you have to.

John Gamble: Our balance sheet, where we said and capital this quarter was at a run rate, which is at the levels that we've talked about getting it down to this year right. So substantial reduction in capital that we delivered in the first quarter. So those things actually strengthen your comfort with free cash flow going forward.

Speaker Change: Got it terrific outcome and then just if I can real quick is there any way to think about how much some of the pricing dynamics.

Mark Begor: Terrific outcome. And then, just if I can real quick, is there any way to think about how much some of the pricing dynamics was, that already in the guidance or.

Kevin McVeigh: Terrific outcome. And then, just if I can real quick, is there any way to think about how much some of the pricing dynamics was, that already in the guidance or.

Speaker Change: Was that already in the guidance or was that maybe an incremental benefit that obviously I think it was really smart to kind of reaffirm but the pricing dynamics with it was already in the 25 guidance or are you talking about are you talking about from our our partner, where we pass through the price and mortgage yes, yes, yes, Oh, yes that was in our guide.

Trevor Burns: Was that maybe an incremental benefit that?

Was that maybe an incremental benefit that?

Mark Begor: Obviously, I think it was really smart to kind of reaffirm. But the pricing dynamics, were those already in the 2025 guidance, or are you talking about from our partner, where we pass through the price and mortgage? Yes, yes. Yeah. Oh, yeah. That was in our guide in February. That's locked in. It doesn't change, obviously, the number of transactions changes. But no, that pricing was in there. And broadly, at Equifax, you know, we do our pricing, you know, principally on 1:1. So that was all in our February guide, and there's no change there. And, you know, we have a lot of visibility on that. You know, there is some, you know, obviously there's some, you know, government contracts that we have that have pricing escalators that happen during the year, not on 1:1 because they're multi-year contracts.

Obviously, I think it was really smart to kind of reaffirm. But the pricing dynamics, were those already in the 2025 guidance, or.

Mark Begor: Are you talking about from our partner, where we pass through the price and mortgage?

Kevin McVeigh: Yes, yes.

Mark Begor: Yeah. Oh, yeah. That was in our guide in February. That's locked in. It doesn't change, obviously, the number of transactions changes. But no, that pricing was in there. And broadly, at Equifax, you know, we do our pricing, you know, principally on 1:1. So that was all in our February guide, and there's no change there. And, you know, we have a lot of visibility on that. You know, there is some, you know, obviously there's some, you know, government contracts that we have that have pricing escalators that happen during the year, not on 1:1 because they're multi-year contracts.

Speaker Change: In February that's locked in it doesn't change obviously the number of transactions changes, but I know that pricing was in there and broadly at Equifax, we do our pricing principally on one one so that was all in our February guide and there's no change there and we have a lot of visibility on that there is some.

Speaker Change: You know obviously, there's some government contracts that we have that have a pricing escalators that happened during the year not on one one because they're multi year contracts and then when we get a new contract obviously, that's new revenue.

Mark Begor: Then when we get a new contract, obviously that's new revenue, you know, and I think I talked about in the recession conversation our increasing percentage of our revenue that subscription based is also, you know, a positive going forward.

Then when we get a new contract, obviously that's new revenue, you know, and I think I talked about in the recession conversation our increasing percentage of our revenue that subscription based is also, you know, a positive going forward.

Speaker Change: And I think I talked about in the recession conversation are increasing.

Speaker Change: The percentage of our revenue that is subscription based is also a positive going forward.

Operator: Thank you. Next question is coming from Kelsey Hsu from Autonomous Research. Your line is now live.

Speaker Change: Thank you. Your next question is coming from Telsey shoe from Autonomous Research. Your line is now live.

Tony Kaplan: Hi, good morning. Thanks for taking my question. I found the recession scenario analysis super helpful, and I was wondering if you can talk through your expectations for growth outlook for each of these components under a stagflation scenario.

Kelsey Hsu: Hi, good morning. Thanks for taking my question. I found the recession scenario analysis super helpful, and I was wondering if you can talk through your expectations for growth outlook for each of these components under a stagflation scenario.

Speaker Change: Hi, Good morning, Thanks for taking my question I found a recession scenario analysis Super helpful. And I was wondering if you can talk through your expectations for growth outlook for each of these components Andreas vaccination scenario.

Mark Begor: Sorry, finish the back half of your question.

Speaker Change: I'm sorry finished the back half of your question.

Tony Kaplan: I was wondering how you expect each of these components to grow under a stagflation environment, meaning muted growth and no rate cuts.

Kelsey Hsu: I was wondering how you expect each of these components to grow under a stagflation environment, meaning muted growth and no rate cuts.

Speaker Change: I was wondering how you expect each of these components to grow under a stagflation environment.

Speaker Change: Core hours and no way pets, yeah, we didn't do that analysis.

Mark Begor: Yeah, we didn't do that analysis. It's one that we can certainly work on. We picked a typical recession. I think it'd be a different analysis and one that we haven't done around a stagflation environment. We need high inflation, you know, low growth, and I guess your assumption would be higher interest rates. There's probably, you know, dozens of recession scenarios you could put together. We opted for us and for you to share what we would characterize as a typical recession.

Speaker Change: It's one that we can certainly work on you know.

Speaker Change: We we we take we picked a typical recession.

No I think it would be a different analysis and one that we haven't done around a stagflation environment, we need high inflation low.

Speaker Change: Low growth and I guess your assumption would be higher interest rates theres probably.

Speaker Change: Dozens of recession scenarios, you could put together, we opted to for us and for you to share what we would characterize as a typical recession, but to be fair I think it's your point there is no typical recession, but I think that's our best view of how we would perform and what we would characterize as a typical recession.

Mark Begor: But to be fair, I think it's your point.

Mark Begor: There's no typical recession. But I think that's our best view of how we would perform and what we would characterize as a typical recession.

There's no typical recession. But I think that's our best view of how we would perform and what we would characterize as a typical recession.

Tony Kaplan: Got it. And then my second question is on the government vertical. So last quarter you've talked about the funding practice changes at the CMS and USDA. I was wondering, you know, what level of impact have you seen from those two contracts and how much of the low double-digit growth in government in Q2 and 10% growth in the second half is really driven by the SSA contracts.

Kelsey Hsu: Got it. And then my second question is on the government vertical. So last quarter you've talked about the funding practice changes at the CMS and USDA. I was wondering, you know, what level of impact have you seen from those two contracts and how much of the low double-digit growth in government in Q2 and 10% growth in the second half is really driven by the SSA contracts.

Speaker Change: Got it and then my second question is on the copper line protocol. So last quarter, you talked about the funding practice changes at the U.

Speaker Change: I was wondering you know what level of impact from those two contracts.

Speaker Change: How much of the low double digit growth in government and.

Speaker Change: 10% growth in the second half is really driven by the ethane contracts.

Mark Begor: Yeah. So on the, you're referring to the CMS and USDA changes the prior administration put in place to have in essence a cost sharing with the states to use that data. It used to be 100% reimbursed. First I would say that, you know, we are hopeful that the current administration is going to go back to where, you know, it used to be. Meaning the federal government reimbursed the states for utilization of this data in order to promote the use of verified data for social service delivery, to cut down on that $160 billion of improper payments. So that's obviously one strategy that we have going forward. We put in our guide for the year what we expect the impact to be on existing contracts. So I think that was already in our guide.

Speaker Change: Yeah, so on the on that.

Speaker Change: You're referring to the CMS and USDA changes the prior administration put in place to have a.

Speaker Change: In essence, a cost sharing with the states to use that data as it used to be 100% reimbursed first I would say that there's a.

Speaker Change: We are hopeful that the current administration is going to go back to where it used to be meaning to government federal government reimbursed the states for utilization of this data in order to promote the use of verified data for social service delivery to cut down on that 160 billion of improper payments. So that's obviously one strategy that we have.

Speaker Change: Going forward, we put in our guide for the year, what we expect the impact to that would be on existing contracts. So I think that was already in our guide.

Mark Begor: We also put in our guidance for the year for EWS and Equifax, new relationships we expect to get, and add to that the SSA, you know, startup that we talked about earlier, you know, the biggest impact that we have going forward, if you look at, you know, 2025, 2026, 2027, 2028, you know, is going to be state penetration. Those states that are still fully manual.

We also put in our guidance for the year for EWS and Equifax, new relationships we expect to get, and add to that the SSA, you know, startup that we talked about earlier, you know, the biggest impact that we have going forward, if you look at, you know, 2025, 2026, 2027, 2028, you know, is going to be state penetration. Those states that are still fully manual.

We also put in our guide for the year for AWS Equifax, new relationships, we expect to get you know an add to that the SSA you know startup that we talked about earlier.

Speaker Change: Biggest impact that we have going forward. If you look at 'twenty five 'twenty six 'twenty 728, it was gonna be state penetration those states that are still fully manual or arent using our solution getting them to use it which we expect to continue to be a positive for us and then as I said, there's just a different.

Mark Begor: Or aren't using our solution, you know.

Or aren't using our solution, you know.

Mark Begor: Getting them to use it, which we expect, you know, to continue to be a positive for us. Then as I said, there's a different macro in Washington. You know, there's a real focus now, which I would say, you know, maybe in the last administration wasn't as strong, you know, around the improper payments. It's a huge number, you know, and there's a big focus on, you know, those kind of activities which we think is a positive for us. I'm not sure it's going to move the needle, you know, in 2025, but you know, over the long term, think 2026, 2027 under this administration, they're clearly focused on tackling, you know, that 160.

Getting them to use it, which we expect, you know, to continue to be a positive for us. Then as I said, there's a different macro in Washington. You know, there's a real focus now, which I would say, you know, maybe in the last administration wasn't as strong, you know, around the improper payments. It's a huge number, you know, and there's a big focus on, you know, those kind of activities which we think is a positive for us. I'm not sure it's going to move the needle, you know, in 2025, but you know, over the long term, think 2026, 2027 under this administration, they're clearly focused on tackling, you know, that 160.

Speaker Change: It's a different macro in Washington, you know, there's a real focus now, which I would say you know maybe in the last administration wasn't as strong.

Speaker Change: Around the improper payments Thats, a huge number when theres a big focus on.

Speaker Change: Those kind of activities, which we think is a positive for us I'm not sure it's going to move the needle in 'twenty five but you know over the long term think 'twenty six 'twenty seven under this administration, they're clearly focused on tackling.

Speaker Change: That 260 billion of improper payments.

Mark Begor: Billion of improper payments. And you know, we are a great solution to help do that.

Billion of improper payments. And you know, we are a great solution to help do that.

Speaker Change: We are a great solution to help do that and so we're spending a bunch of more time in Washington to help.

Mark Begor: So, you know, we're spending a bunch more time in Washington to help the different agencies understand how our solution can be used to help, you know, address the improper payments. Then also, as I said, we're adding more resources at the states to drive state penetration.

So, you know, we're spending a bunch more time in Washington to help the different agencies understand how our solution can be used to help, you know, address the improper payments. Then also, as I said, we're adding more resources at the states to drive state penetration.

Speaker Change: The different agencies understand how are our solution can be used to help.

Speaker Change: Address the improper payments and then also as I said, we're adding more resources at the stage to drive state penetration.

John Gamble: And I know, you know, but it's, we announced it was a $50 million contract or about $50 million contract in the context of an $800 million business. So obviously we're seeing nice growth in other areas.

Speaker Change: And I know you know, but it's we announced it was a $50 million contract or about $50 million contract. It's in the context of an $800 million business. So obviously, we're seeing nice growth in other areas.

Tony Kaplan: Got it. Thanks.

Kelsey Hsu: Got it. Thanks.

Speaker Change: Got it thanks.

Operator: Thank you. Next question today is coming from Simon Clinch from Redbird Atlantic. Your line is now live.

Speaker Change: Thank you. Your next question today is coming from Simon <unk> from Redburn. Your line is now live.

Jeff Mueller: Hi everyone. Thanks for taking my question. Can I just start with a bit of a housekeeping one, please? In terms of the EWS, the Verifier mortgage revenue growth, and the talent growth, could you give us the figures for the revenue outgrowth for both segments this quarter versus underlying volumes, and then how to think about what you're implying for in your guidance for that revenue outgrowth through the year?

Simon Clinch: Hi everyone. Thanks for taking my question. Can I just start with a bit of a housekeeping one, please? In terms of the EWS, the Verifier mortgage revenue growth, and the talent growth, could you give us the figures for the revenue outgrowth for both segments this quarter versus underlying volumes, and then how to think about what you're implying for in your guidance for that revenue outgrowth through the year?

Speaker Change: Hi, everyone. Thanks for taking my question.

Speaker Change: Just start with a bit of a housekeeping one please.

Speaker Change: In terms of the AWS to verify mortgage revenue growth in the talent growth could you.

Speaker Change: Give us the figures for the revenue outgrowth for both segments this quarter versus underlying volumes and then how to think about how you're what you're implying for in your guidance for that revenue out through the year.

John Gamble: Yes. So what we're talking about now going forward, right? We talked about this a little bit when we did our fourth quarter results in February, is going forward. We're going to give a view on revenue for mortgage out of EWS, but we're not going to give all the components. Right. So I think what we said last year is we expected to continue to outperform the underlying markets nicely as we went forward. We said, you know, low single digit to low double digit. Low double, sorry, high single digit to low double digit. But in terms of kind of go forward guidance and reporting, that's not a statistic we're going to share anymore.

Speaker Change: Yeah. So.

Speaker Change: What we're talking about now going forward, we've talked about this a little bit when we did our fourth quarter results. In February is going forward, we're going to give a view on revenue for mortgage out of AWS, but we're not going to give all the components right. So I think what we'd said last year as we expect it to continue to outperform the underlying markets nicely. As we went forward. We said you know what.

Speaker Change: Low single digit to low double digit low double I'm, sorry high single digit to low double digit, but and in terms of kind of go forward guidance and reporting that's not a statistic we're going to share anymore.

Jeff Mueller: Okay. Yeah, sorry for asking the question. Maybe I could turn to something slightly longer term. I was just wondering if you could give us an update please around the international records you have built in EWS, and how we should think about your strategy for that business, longer-term monetization of those records, and so when that might be something we start to talk about a bit more prominently.

Simon Clinch: Okay. Yeah, sorry for asking the question. Maybe I could turn to something slightly longer term. I was just wondering if you could give us an update please around the international records you have built in EWS, and how we should think about your strategy for that business, longer-term monetization of those records, and so when that might be something we start to talk about a bit more prominently.

Speaker Change: Okay Yeah.

Speaker Change: Are you for asking the question.

Speaker Change: Maybe I could turn onto something a slightly longer term I was just wondering if you could give us an update please around the international Records you have building and in AWS and when we know how to think about your strategy for that business longer term monetization of those records.

Speaker Change: And sort of when that might be something we start to talk about it more prominently.

Mark Begor: Yeah, we're clearly investing really in three principal markets and a fourth, Australia, Canada, in the UK, and then also in India. We're making positive traction in all those markets. We're in market, you know, with products in all three of those markets that look like the EWS solutions. We don't have the same penetration yet in those markets. So we're continuing to focus on growing records. To your question around when's it going to move the needle in Equifax? It's going to be quite some time, but you would expect us to and we are, you know, investing in that to grow in markets, you know, that I outlined to, you know, have the.

Speaker Change: Yeah. It's it's a it's clearly are investing you know really in three principal markets in our fourth the Australia, Canada and the U K and then also in India, We're making positive traction in all those markets were in market with products in all three of those markets that look like the AWS.

Speaker Change: <unk> and we don't have the same penetration yet in those markets. So we're continuing to focus on growing records to your question around when is it going to move the needle in Equifax, it's gonna be quite some time, but you would expect us to and we are investing in that to grow in markets that I outlined to you know have the twin.

Mark Begor: TWN solution or the EWS solution, you.

TWN solution or the EWS solution, you.

Speaker Change: The solution or the AWS solution in those markets.

Mark Begor: No, in those markets.

No, in those markets.

Speaker Change: Okay. That's great. Thank you very much.

Jeff Mueller: That's great. Thank you very much.

Simon Clinch: That's great. Thank you very much.

Mark Begor: Thank you.

Speaker Change: Thank you. Your next question today is coming from Scott <unk> from Wolfe Research. Your line is now live.

Operator: Next question today is coming from Scott Wurtzel from Wolfe Research. Her line is now live.

Mark Begor: Hey, good morning guys. Thank you for taking my question. Just wanted to go to the outlook on employer and US hiring. I think I know, you know, last quarter you guys were guiding to hiring being down 8% for the year. Has that changed at all?

Scott Wurtzel: Hey, good morning guys. Thank you for taking my question. Just wanted to go to the outlook on employer and US hiring. I think I know, you know, last quarter you guys were guiding to hiring being down 8% for the year. Has that changed at all?

Speaker Change: Hey, good morning, guys. Thank you for taking my question just wanted to go to the outlook on employer in U S. Hiring I think I know you know last quarter, you guys were guiding to hiring being down 8% for the year has that changed at all.

John Gamble: We did not change our guidance for the full year for hiring.

We did not change our guidance for the full year for for hiring.

Mark Begor: Got it, got it. That's helpful. And then just going back to the inquiries outlook as well. I mean, in the context of the outperformance that you had in the first quarter and keeping the guidance for 2025 inquiries pretty steady. I mean, was it kind of taking a more kind of conservative approach to Q2, the whole year, or more so in the second half relative to? I think John pointed out in his comments that we set the guide for -13% in the first quarter and -12% for the year in USIS inquiries back in February. When we got into late February and March, there was a downtick in the 10-year and a downtick in mortgage rates, and we saw some increased activity, likely refi, that was part of our stronger performance in the first quarter.

Scott Wurtzel: Got it, got it. That's helpful. And then just going back to the inquiries outlook as well. I mean, in the context of the outperformance that you had in the first quarter and keeping the guidance for 2025 inquiries pretty steady. I mean, was it kind of taking a more kind of conservative approach to Q2, the whole year, or more so in the second half relative to?

Speaker Change: Got it got it that's helpful. And then just going back to the the inquiries outlook as well.

Speaker Change: In the context of the outperformance that you had in the first quarter and you know keeping the guidance for 2025 inquiries pretty steady I mean was it you know kind of taking a more conservative approach to <unk>, the whole year or more so in the second half relative to I think that John pointed out in his comments that we set the guide.

Mark Begor: I think John pointed out in his comments that we set the guide for -13% in the first quarter and -12% for the year in USIS inquiries back in February. When we got into late February and March, there was a downtick in the 10-year and a downtick in mortgage rates, and we saw some increased activity, likely refi, that was part of our stronger performance in the first quarter.

Speaker Change: You know from minus 13 in the first quarter and minus 12 for the year in U S. I S inquiries back in February.

Speaker Change: When we got into late February and March there was a downtick in the 10 year and a downtick in mortgage rates and we saw some increased activity likely refi that.

Speaker Change: Part of our stronger performance in the first quarter most of it was non mortgage but that mortgage activity as well as you know a better execution for us and some of the pre qual products that we're selling into the marketplace. But then as we got a really into late March and into April. The last couple of weeks 10 years come up again with somebody.

Mark Begor: Most of it was non-mortgage but.

Most of it was non-mortgage but.

Mark Begor: That mortgage activity as well as, you know, better execution for us and some of the pre-qual products that we're selling into the marketplace. But then, as we got really into late March and into April, the last couple of weeks, the 10-year come up again, you know, with some of the activities in Washington around tariffs and the broader concerns around the economy, and, you know, we've seen activity tail down. So, we really used over the last 7 to 14 days, which is fairly typical for us, you know, as our kind of guide for the rest of the year, which is why we went back to the minus 12, and that's kind of what we're seeing over the last couple weeks. Thank you.

That mortgage activity as well as, you know, better execution for us and some of the pre-qual products that we're selling into the marketplace. But then, as we got really into late March and into April, the last couple of weeks, the 10-year come up again, you know, with some of the activities in Washington around tariffs and the broader concerns around the economy, and, you know, we've seen activity tail down. So, we really used over the last 7 to 14 days, which is fairly typical for us, you know, as our kind of guide for the rest of the year, which is why we went back to the minus 12, and that's kind of what we're seeing over the last couple weeks. Thank you.

Speaker Change: Activities in Washington around tariffs and the broader concerns around the economy and we've seen activity tailed down. So we really used over the last seven to 14 days, which is fairly typical for us.

Speaker Change: As our kind of guide for the rest of the year, which is why we went back to the minus 12, and that's kind of what we're seeing over the last couple of weeks.

Speaker Change: Thank you.

Operator: Thank you. Next question is coming from Matt O'Neill from FT Partners. Your line is now live.

Thank you next question is coming from Matt O'neill from Ft Partners. Your line is ally.

Kyle Peterson: Yeah, thanks for taking my question. Most have been asked and answered here, I guess, quickly. Just following up on the employer service question just now. Any indication, I guess, that in the important sort of white-collar hiring environment there's been more of a sit on the hands approach from large employers in the last couple of weeks here? And I guess just as a follow-up around now having the share repurchase at your disposal. Any thoughts on, you know, how to balance being aggressive there versus the tuck-in acquisitions or just continue to be opportunistic? Thank you.

Matt O'Neill: Yeah, thanks for taking my question. Most have been asked and answered here, I guess, quickly. Just following up on the employer service question just now. Any indication, I guess, that in the important sort of white-collar hiring environment there's been more of a sit on the hands approach from large employers in the last couple of weeks here? And I guess just as a follow-up around now having the share repurchase at your disposal. Any thoughts on, you know, how to balance being aggressive there versus the tuck-in acquisitions or just continue to be opportunistic? Thank you.

Yeah. Thanks for taking my question most have been asked and answered here I guess quickly just following up on the employer service question just now.

Speaker Change: Any indication I guess that in the important sort of white collar hiring environment. There has been more of a sit on our hands approach from large employers in the last couple of weeks here.

Speaker Change: And I guess, just as a follow up around now having the share repurchase at your disposal any thoughts on how to balance being aggressive there versus the tuck in acquisitions or just continue to be opportunistic. Thank you.

Mark Begor: Yeah, and the first one, I think you said employer services. I think you meant talent as far as hiring. And we haven't seen a real change in the last couple weeks, although we're certainly watching it with regards to the capital allocation plan. It is going to be balanced. CapEx is something that is a real priority for us obviously at lower levels but still quite substantial because of the high returns it generates organically inside of Equifax from principally new products. So that's going to be a steady and we think very positive shareholder return focus to invest inside of Equifax both on M&A. We're going to be disciplined about both the areas that we look in as.

Speaker Change: The first one I think you said employer services I think you meant talent as far as the hiring and we haven't seen a real change in the last couple of weeks, although we're certainly watching it with regards to the capital allocation plan you know it is going to be balanced.

Speaker Change: You know Capex is something that is a real priority for us obviously at lower levels, but still quite substantial because of the high returns that generates organically inside of equifax from principally new products. So that's going to be a stead.

Speaker Change: Steady and we think very positive shareholder return focus to <unk>.

Speaker Change: Inside of Equifax bolt on M&A, we're gonna be disciplined about.

Speaker Change: Both the areas that we look in as well as the financial returns. We're looking for businesses that are accretive to our growth rate and accretive to our margins. After integration that's a high bar, but as you know we've been pretty effective over the last five plus years.

Mark Begor: Well, as the financial returns.

Well, as the financial returns.

Mark Begor: We're looking for businesses that are accretive to our growth rate and accretive to our margins after integration. That's a high bar. But as you know, we've been pretty effective over the last five plus years completing something like 20 acquisitions. Again, bolt-on acquisitions like Appriss Insights, the incarceration data that's been a great.

We're looking for businesses that are accretive to our growth rate and accretive to our margins after integration. That's a high bar. But as you know, we've been pretty effective over the last five plus years completing something like 20 acquisitions. Again, bolt-on acquisitions like Appriss Insights, the incarceration data that's been a great.

Speaker Change: Completing something like 20 acquisitions again bolt on acquisitions like adverse insights the incarceration data that's been it.

Mark Begor: Addition to Workforce Solutions.

Addition to Workforce Solutions.

Speaker Change: Great addition to workforce solutions counting mitigate or in a you know some of the other.

Mark Begor: Kount and Account Mitigator and some of the other bolt-ons and tuck-ins we've done in workforce as well as in USIS. And of course Boa Vista that we acquired, you know, almost 18 months ago, that has been, is doing really well. We're really pleased with the Boa Vista acquisition.

Kount and Account Mitigator and some of the other bolt-ons and tuck-ins we've done in workforce as well as in USIS. And of course Boa Vista that we acquired, you know, almost 18 months ago, that has been, is doing really well. We're really pleased with the Boa Vista acquisition.

Speaker Change: Bolt ons and tuck ins, we've done in workforce as well as in the U S. I S and of course Boa Vista that we acquired are you know almost 18 months ago that has been is doing really well, we're really pleased with the Boa Vista acquisition. So bolt on M&A, we'll continue.

Mark Begor: So bolt-on M&A will continue.

So bolt-on M&A will continue.

Mark Begor: Then obviously the dividend, when you make a commitment on a dividend, you know, to grow it in line with earnings and, you know, in that 5% to 15% range, it's something that, you.

Then obviously the dividend, when you make a commitment on a dividend, you know, to grow it in line with earnings and, you know, in that 5% to 15% range, it's something that, you.

Speaker Change: And then obviously the dividend when you make a commitment on a dividend.

Speaker Change: To grow it in line with earnings and you know in that 5% to 15% range, it's something that becomes an important commitment from the company. So we view that as something that.

Mark Begor: Now, becomes an important commitment from the company.

Now, becomes an important commitment from the company.

Mark Begor: We view that as something that, you know, will be consistent over the.

We view that as something that, you know, will be consistent over the.

Speaker Change: Consistent over the long term way to return cash to our shareholders and then the 3 billion dollar a four year buyback program, we announced on that is aligned with our ability we believe to generate growth in earnings and free cash flow over the next four plus years and our long term framework are in.

Mark Begor: Long term, you know, way to return cash to our shareholders.

Long term, you know, way to return cash to our shareholders.

Mark Begor: Then the $3 billion four-year buyback program we announced, that is aligned with our ability, we believe, to generate growth, earnings, and free cash flow over the next four-plus years. In our long-term framework, we'll be consistently in the market during the open trading windows. We'll look for opportunistic purchases when there's market dislocations, you know, or we don't see M&A. That makes sense for Equifax, you know, and you know, and if we have excess free cash flow because we're not doing M&A, you know, we're going to return that to shareholders, and that's all while maintaining our strong investment-grade balance sheet, you know, so we are positioned for any economic event.

Then the $3 billion four-year buyback program we announced, that is aligned with our ability, we believe, to generate growth, earnings, and free cash flow over the next four-plus years. In our long-term framework, we'll be consistently in the market during the open trading windows. We'll look for opportunistic purchases when there's market dislocations, you know, or we don't see M&A. That makes sense for Equifax, you know, and you know, and if we have excess free cash flow because we're not doing M&A, you know, we're going to return that to shareholders, and that's all while maintaining our strong investment-grade balance sheet, you know, so we are positioned for any economic event.

Speaker Change: We will be consistently.

Speaker Change: Consistently in the market during the open trading windows.

Speaker Change: We'll.

Speaker Change: Look for opportunistic purchases.

Speaker Change: When theres market dislocations, or we don't see M&A that makes sense for equifax.

Speaker Change: And if we have excess free cash flow because we're not doing M&A, we're going to return that to shareholders and that's all while maintaining our strong investment grade balance sheet.

Speaker Change: So we are positioned for any economic event.

Kyle Peterson: Appreciate the rundown and yes, I'm in town. Thank you.

Matt O'Neill: Appreciate the rundown and yes, I'm in town. Thank you.

Speaker Change: I appreciate the rundown and yes, I meant talent. Thank you.

Operator: Thank you. Next question is coming from Arthur Kruselov from Citi. Your line is now live.

Thank you. The next question is coming from Ultra cruise left from Citi. Your line is now live.

Jeff Mueller: Good afternoon everybody. A couple of questions for me if I may. First one please. If you think about what you did in your USIS non-mortgage business, clearly it's accelerated meaningfully in Q1 of the year from where it was in Q4 of last year, and in particular within the B2B non-mortgage. How much of that acceleration related to better market conditions of lending in particular, and how much relates to what you've done in terms of getting back to market following your cloud transformation? Second question, on a similar vein around the cloud, are you able to just confirm that Q1 fully benefited from the cloud transformation in USIS? Are you able to say year over year how much the cloud transformation benefited the cost side in that division, please? Thank you.

Arthur Krivtsov: Good afternoon everybody. A couple of questions for me if I may. First one please. If you think about what you did in your USIS non-mortgage business, clearly it's accelerated meaningfully in Q1 of the year from where it was in Q4 of last year, and in particular within the B2B non-mortgage. How much of that acceleration related to better market conditions of lending in particular, and how much relates to what you've done in terms of getting back to market following your cloud transformation? Second question, on a similar vein around the cloud, are you able to just confirm that Q1 fully benefited from the cloud transformation in USIS? Are you able to say year over year how much the cloud transformation benefited the cost side in that division, please? Thank you.

Speaker Change: Good afternoon everybody.

Speaker Change: A couple of questions from me if I may.

Speaker Change: So that's one place.

Speaker Change: If you think about what you did in your U S national mortgage business clearly it's accelerated meaningfully.

Speaker Change: Meaningfully.

Speaker Change: In the first quarter of the year from what it was in the fourth quarter of last year.

Speaker Change: And in particular within the B to B non mortgage.

Speaker Change: How much of that acceleration related to better market conditions.

Speaker Change: On lending in particular and how much relates to.

Speaker Change: What you've done in terms of you know.

Speaker Change: Getting back to market following your cloud transformation.

Speaker Change: Question on a similar vein around the cloud.

Speaker Change: Are you able to just confirm that first course are fully benefited from the cloud transformation and U S. I S.

Speaker Change: Are you able to say year over year how much.

Speaker Change: The cloud transformation benefits at the cost side.

Speaker Change: In that division. Please thank you.

Mark Begor: Yeah, so there's no question that we've seen a real change in USIS momentum in the marketplace post cloud. And we attribute the vast majority. First off, there's no change in the market from fourth quarter to first quarter. There's no change in the market. So it's really our ability to execute and be in the marketplace. We've talked for years about what we knew was a challenge for all our businesses and most recently USIS to build the cloud, to migrate our customers, and grow the business. And that dampened our ability to be commercially present, if you will, with our customers because the customer meetings got absorbed with migration discussions. You know, that changed last summer. And so we've seen, you know, real momentum by all of the verticals in USIS and their ability to just engage with our customers around our new products.

Speaker Change: Yeah. So there's no question that we've seen a real change in U S. I S momentum in the marketplace post cloud and we attribute the <unk>.

Speaker Change: Vast majority first off there's no change in the market from fourth quarter to first quarter. There is no change in the market. So it's really our ability to execute and be in the marketplace. We've talked for years about what we knew was a challenge for all our businesses and most recently U S. I S too.

Speaker Change: Build the cloud to migrate our customers and grow the business and that dampened our ability to be commercially present, if you will with our customers because the customer meetings got absorbed with migration discussions that change last summer and so we've seen real momentum.

Speaker Change: Momentum by all of the verticals in the U S. I S and their ability to just engage with our customers around our new products, our new solutions second and we talked about it in our prepared comments, we've seen a an acceleration in their focus on innovation, which we expect it. So these are all things we expected to happen we've talked to.

Mark Begor: Our new solutions.

Our new solutions.

Mark Begor: Second, and we talked about it in our prepared comments, you know, we've seen an acceleration in their focus on innovation which we expected, you know, so these are all things we expected to happen. We've talked, you know, for a couple of years about our expectation that we'd also see share gains from USIS because of our cloud native capabilities around being always on, our latency or speed of data transmission. You know, we're hearing very positive feedback from our customers around what it's like to interact with Equifax now that we're cloud native, you know, so that's a real positive. So I would definitely attribute, you know, the outperformance which frankly surprised us.

Second, and we talked about it in our prepared comments, you know, we've seen an acceleration in their focus on innovation which we expected, you know, so these are all things we expected to happen. We've talked, you know, for a couple of years about our expectation that we'd also see share gains from USIS because of our cloud native capabilities around being always on, our latency or speed of data transmission. You know, we're hearing very positive feedback from our customers around what it's like to interact with Equifax now that we're cloud native, you know, so that's a real positive. So I would definitely attribute, you know, the outperformance which frankly surprised us.

Speaker Change: For a couple of years about our expectation that we'd also see share gains from.

Speaker Change: From a U S I S.

Speaker Change: Because of our cloud native capabilities around being always on.

Speaker Change: Our latency or speed of data transmission, we're hearing very positive feedback from our customers around what it's like to interact with Equifax now that we're cloud native so that's a real positive so I would definitely attribute.

Speaker Change: The outperformance, which you know frankly surprised us obviously that wasn't our framework that we had in February.

Mark Begor: Obviously that wasn't our framework that we had in February to this business really operating in a post-Cloud mode where the entire team now can really focus on customers, focus on innovation, focus on new products, and focus on growth. You know, we would expect that to continue going forward. You know, kind of the last piece is you're starting; it's probably very minimal in Q1, but you're starting to see the benefits that are coming from that multi-data solutions like the mortgage TWIN indicator that we have on the USIS credit file. You know, that's going to show up in share gains for USIS in mortgage because of the, you know, additional data that we'll have that will differentiate us from our competitors on that mortgage shopping credit file.

Obviously that wasn't our framework that we had in February to this business really operating in a post-Cloud mode where the entire team now can really focus on customers, focus on innovation, focus on new products, and focus on growth. You know, we would expect that to continue going forward. You know, kind of the last piece is you're starting; it's probably very minimal in Q1, but you're starting to see the benefits that are coming from that multi-data solutions like the mortgage TWIN indicator that we have on the USIS credit file. You know, that's going to show up in share gains for USIS in mortgage because of the, you know, additional data that we'll have that will differentiate us from our competitors on that mortgage shopping credit file.

Speaker Change: To this business are really operating in a post cloud mode, where the entire team now can really focus on customers focused on innovation focus on new products and focus on growth.

Speaker Change: We would expect that to continue going forward and kind of the last pieces, you're starting it was probably very minimal in the first quarter, but you're starting to see the benefits that are coming from that multi data solutions like the mortgage twin indicator that we have in the U S. I S credit file that's going to show up in share gains.

Speaker Change: For U S I S in in mortgage.

Speaker Change: Because of the additional data that we'll have the gift that will differentiate us from our competitors on net mortgage shopping credit file.

John Gamble: To your question on cost in terms of the migration of the consumer databases to the cloud. Yes, that was completed and the current run costs are fully on the cloud and the prior infrastructure is decommissioned. You're seeing it in the margins. We're not going to quantify the dollar amount, but you're seeing it in the margin growth and the very nice margin performance at almost 150 basis points in the first quarter year to year and then obviously almost 200 basis points in the second quarter.

Speaker Change: And to your question on cost yet in terms of the migration of the consumer databases to the cloud, yes that was completed.

Speaker Change: The current run costs are fully on the cloud and the prior infrastructures decommission youre seeing it in the margins, we're not going to quantify the dollar amount, but youre seeing it in the margin growth and the very nice margin performance up almost 150 basis points in the first quarter year to year and then obviously in almost 200 basis points in the second quarter.

Jeff Mueller: Thank you very much.

Arthur Krivtsov: Thank you very much.

Speaker Change: Thank you very much.

Operator: Thank you. Our final question today is coming from George Tong from Goldman Sachs. Your line is now live.

Speaker Change: Thank you. Our final question today is coming from George Tong from Goldman Sachs. Your line is now live.

Mark Begor: Hi, thanks.

George Tong: Hi, thanks.

Speaker Change: Hi, Thanks, good morning.

Mark Begor: Good morning.

Good morning.

Mark Begor: You talked about the performance of cards.

You talked about the performance of cards.

Speaker Change: You talked about the performance of cards P loans and auto volumes in one queue can you talk about how it trends in each of these categories performed exiting the quarter and in the first three weeks of April.

Mark Begor: personal loans and auto volumes in Q1.

personal loans and auto volumes in Q1.

Mark Begor: Can you talk about how trends in?

Can you talk about how trends in?

Mark Begor: Each of these categories performed exiting the quarter and in the first three weeks of April?

Each of these categories performed exiting the quarter and in the first three weeks of April?

Mark Begor: I think we already commented. I don't know if you were on the call for that period, George, but we haven't seen any change in the last couple weeks, and we don't expect them to change in the second quarter for sure from what we saw in the first quarter and those first number of weeks in April. Okay, got it. Thanks for clarifying that. And then, in your long-term growth framework that you provided, are you assuming.

Speaker Change: I think we already commented I dunno, if you were on the calls for that period George but.

Speaker Change: We haven't seen any change in the last couple of weeks and we don't expect them to change you know in the second quarter for sure from what we saw in the first quarter and you know this first a number of weeks in April.

George Tong: Okay, got it. Thanks for clarifying that. And then, in your long-term growth framework that you provided, are you assuming.

Speaker Change: Okay got it thanks for clarifying that and then in your long term growth framework that you provided are you assuming a return of mortgage volumes to historical levels pre COVID-19.

Mark Begor: A return of mortgage volumes to historical levels pre-COVID?

A return of mortgage volumes to historical levels pre-COVID?

Speaker Change: Okay.

Mark Begor: So our long-term growth framework, which I think you know assumes a normal economy, you know, so think about in that 8 to 12, you know, and this is long-term, right? So it's through cycles and call this recession, you know, higher interest rates and the impact on mortgage as being, you know, kind of an economic event. But no, over the long term we expect to grow 8 to 12 or 7 to 10 organic and there's a couple points, call it 200 basis points.

Speaker Change: No our long term growth framework, which I think you know assumes a normal economy.

Speaker Change: So think about in that eight to 12, you know and this is long term right. So it's through cycles and call. This recession.

Speaker Change: Higher interest rates and the impact on our on.

Speaker Change: On mortgage as being kind of an economic event, but no over the over the long term, we expect euro eight to 12 or seven to 10 organic and there's a couple of points call. It 200 basis points of GDP.

Mark Begor: Of GDP in that long term growth model.

Of GDP in that long term growth model.

Speaker Change: GDP in that long term growth model. So you know when you think about where the mortgage market is today.

Mark Begor: So when you think about where the mortgage market is today, 50% below what we would characterize as normal, and you think about that returning to normal, that's going to drive that 8 to 12, you know, for sure because you know, that's not how we expect mortgage to grow, you know, over the long term. You know, the other, you know, big macro in mortgage is the impact of the pricing pass-through we have from our partner, you know, over the long term, you know, is we don't know what they're going to do on pricing next year or the year after, the year after that. But as you know, it's been quite substantial the last couple of years. So that's another element that, you know, is it will have an impact on.

So when you think about where the mortgage market is today, 50% below what we would characterize as normal, and you think about that returning to normal, that's going to drive that 8 to 12, you know, for sure because you know, that's not how we expect mortgage to grow, you know, over the long term. You know, the other, you know, big macro in mortgage is the impact of the pricing pass-through we have from our partner, you know, over the long term, you know, is we don't know what they're going to do on pricing next year or the year after, the year after that. But as you know, it's been quite substantial the last couple of years. So that's another element that, you know, is it will have an impact on.

Speaker Change: 50% below what we would characterize as normal.

Speaker Change: And you think about that returning to normal you know that's going to drive that eight to 12.

Speaker Change: You know for sure because you know.

Speaker Change: That's not how we expect mortgage to grow over the long term.

Speaker Change: Other big macro in mortgage is the impact of the pricing pass through we have from our partner.

Speaker Change: The long term.

Speaker Change: We don't know what theyre going to do on pricing next year or the year. After the year after that but as you know it's been quite substantial the last couple of years. So that's another element that.

Speaker Change: It will have an impact on our long term framework.

Mark Begor: Our long-term framework.

Our long-term framework.

Operator: Thank you. We reached the end of our question and answer session. I'd like to turn the floor back over to Trevor for any further closing comments.

Speaker Change: Thank you we reached end of our question and answer session I'd like to turn the floor back over to Trevor for any further or closing comments.

Trevor Burns: Just wanted to say thank you, everybody, for joining the call. If you have any follow-up questions, reach out to Molly or myself. Thank you.

Speaker Change: I just wanted to say thank you everybody for joining the call.

Speaker Change: If you have any follow up questions reach out to all their myself. Thank you.

Operator: Thank you. That does conclude today's teleconference webcast. You may disconnect your line at this time. Have a wonderful day. We thank you for your participation today.

Speaker Change: Thank you that does conclude today's teleconference and webcast you may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation today.

Speaker Change: Okay.

Speaker Change: Yeah.

Q1 2025 Equifax Inc Earnings Call

Request a DemoDemo

EFX

Equifax

Earnings