Q2 2025 TransUnion Earnings Call

Conference specialist by pressing the star key followed by zero.

After todays presentation, there will be an opportunity to ask questions. You asked the question you May Press Star then one on your Touchtone phone to withdraw it. Please press Star then two please note. This event is being recorded I would like now to turn the conference over to Mr. Greg Pardy, Vice President of Investor Relations. Please go ahead.

Speaker Change: And thank you for attending today joining me on the call are Chris Cartwright, President and Chief Executive Officer, and Todd Cello Executive Vice President and Chief Financial Officer, We've posted our earnings release and slides to accompany this call on the Transunion Investor Relations website. This morning, and they can also be found in the current report on form 8-K that we filed this morning, our earnings release.

Chris Cartwright: The RBI has reduced interest rates by 100 basis points thus far in 2025 and is balancing lending safety with economic growth. We anticipate our growth in India will accelerate later this year as lending volumes continue to recover, resulting in nearly 10% organic constant currency revenue growth for the full year and with fourth quarter growth in the high teens.

Speaker Change: In the accompanying slides include various schedules, which contain more detailed information about revenue operating expenses and other items as well as certain non-GAAP disclosures and financial measures along with their corresponding reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures.

Chris Cartwright: We also continue to transform the company by modernizing our technology, enhancing our global operating model, and accelerating innovation across our product suite. I'll detail our recent progress. In the quarter we accelerated U.S. credit customer migrations and further enhanced the core capabilities of One True, our global configurable cloud-native platform. Our customer migrations are focused on minimizing conversion disruptions while delivering our targeted savings within the committed investment. To achieve this, we strengthen OneTrue's functionality to manage our most complex and customized batch and online workloads. We are achieving notable performance and innovation improvements on the new platform, including over 50% faster processing, robust cybersecurity and compliance controls, and rapid development of new scores, attributes, and models.

Speaker Change: Today's call will be recorded at a replay will be available on our website.

Speaker Change: We will also be making statements. During this call that are forward. Looking these statements are based on current expectations and assumptions and are subject to risks and uncertainties actual results could differ materially from those described in the forward looking statements because of factors discussed in today's earnings release and the comments made during this conference call and in our most recent Form 10-K forms 10.

Speaker Change: Q and other reports and filings with SEC.

Chris Cartwright: Any duty to update any forward looking statement with that let me turn it over to Chris.

Chris Cartwright: Thanks, Craig Let me add my welcome ensure our agenda for the call. This morning first I'll provide the highlights of our second quarter 2025 results and an overview of market conditions.

Chris Cartwright: Second I will discuss progress towards our 2025 strategic priorities, including a spotlight on our fast growing trusted call solutions business.

Chris Cartwright: We also migrated several key consumer indirect customers to our new global consumer technology platform. The scalable platform enables faster product releases, seamless multi-region deployment, and reduced operational complexity. To further enhance OneTruth's capabilities, we have augmented its underlying identity graph with our comprehensive public records database. This integration enhances data fidelity and introduces more robust attributes related to addresses, phone numbers, and email. Our Identity Graph now encompasses a wide array of to-use proprietary data assets, including traditional credit header information, public records, communication and device identifiers, streaming data, and other unique data sources. Together, these elements enable industry-leading consumer identity resolution, improved data onboarding, more targeted marketing, and optimized fraud prevention and risk management.

Chris Cartwright: Finally, Todd will detail, our second quarter results and updated 2025 guidance.

Todd Cello: In the second quarter Transunion exceeded all key financial guidance metrics for a sixth straight quarter, we delivered high single digit organic revenue growth.

Todd Cello: Highlighting our strong execution and a stable, but still subdued market and the benefits of our accelerating pace of innovation.

Todd Cello: Revenue grew 9% on an organic constant currency basis, well above our 3% to 5% guidance.

Todd Cello: Excluding mortgage our growth of six 5% also exceeded expectations.

Todd Cello: U S market segment delivered 10% growth in the quarter.

Todd Cello: Financial services grew 17% and growth excluding mortgage accelerated to 11%.

Todd Cello: Across all lending types, we continued to outperform overall market growth by driving new business wins across our solution suites.

Todd Cello: Consumer lending and auto grew double digits in card and banking grew mid single digits.

Chris Cartwright: During the quarter, we successfully transitioned over 20,000 specialized risk clients to the Enhanced One True Identity Graph, resulting in significant performance gains for these customers. We also expanded adoption of our AI driven developer tool, One True Assist, which employs advanced language models to automate repetitive coding tasks, facilitate code translations, and detect and address security vulnerabilities. One True Assist supports the entire One True software development lifecycle and has contributed to 20 to 50% productivity increases for developers.

Todd Cello: <unk> robust activity from Fintech lenders supported by healthy funding and heightened consumer demand for debt consolidation products.

Todd Cello: Mortgage was up 29% compared to flat inquiries, both modestly above expectations.

Todd Cello: Earlier this month.

Todd Cello: The FHFA announced it would allow lenders to use vantage for full photo for conforming mortgages and that's the primary credit report requirement will remain in effect.

In the second quarter Transunion exceeded all key financial guidance metrics for a sixth straight quarter, we delivered high single digit organic revenue growth.

Todd Cello: We believe these policies will provide choice for lenders and enhanced safety uncertainty within mortgage markets benefiting homebuyers lenders and taxpayers over the long term.

Highlighting our strong execution and a stable, but still subdued market and the benefits of our accelerating pace of innovation.

Chris Cartwright: Additionally, We recently launched One True AI Studio, which provides low-code and no-code AI workflow solutions for broader non-engineering use cases. We're improving our global operating model as well by strengthening product development practices and our leadership.

Todd Cello: Emerging verticals grew 5% insurance grew double digits, driven by a gradual recovery in marketing and healthy consumer shopping activity.

Revenue grew 9% on an organic constant currency basis, well above our 3% to 5% guidance.

Excluding mortgage our growth of 6.5% also exceeded expectations.

Todd Cello: In addition to new wins across our solutions.

U S market segment delivered 10% growth in the quarter.

Todd Cello: We also grew across our diversified verticals led by communications and Tech retail and E Commerce.

Chris Cartwright: In Q2, Brian Silver joined us as Head of Marketing Solutions under Mohammad Abulsadeq, bringing significant digital marketing experience. We continue to refine our approach to product management to better align resources, streamline decision-making, and accelerate new product iteration. These changes will improve commercial outcomes by integrating our geographic and vertical lead go-to-market strength with enhanced product development expertise. Our technology stack and operating model are contributing to faster innovation and growth across our six global solutions families. We've increased the pace of new product introductions while also completing foundational technology modernization. Factor Trust customers can now use One True with its improved processing times, expanded scores and attributes, and more rapid model development.

Financial services grew 17% and growth excluding mortgage accelerated to 11%.

Todd Cello: Consumer interactive grew 2% organically driven by the successful launch of our freemium solution, marking a key step in our turnaround strategy.

Across all lending types, we continued to outperform overall market growth by driving new business wins across our solutions suite.

Todd Cello: International grew 6% on an organic constant currency basis.

Todd Cello: India's growth accelerated to 8% as anticipated we.

Consumer lending and auto grew double digits in card and banking grew mid single digits, we experienced robust activity from fintech lenders supported by healthy funding and heightened consumer demand for debt consolidation products.

Todd Cello: We experienced a modest pickup in consumer lending and delivered strong growth in our non consumer businesses.

Todd Cello: Within the remainder of the international portfolio, Canada, and Africa were standouts, each growing double digits.

Mortgage was up 29% compared to flat inquiries, both modestly above expectations.

Todd Cello: Supported by our strong financial results, our leverage ratio declined to two eight times we.

Earlier this month.

Todd Cello: We believe we're positioned to delever to two five times before funding our planned Mexico acquisition, which we expect to close by the end of this year. We also opportunistically accelerated our share repurchases in the quarter.

The FHFA announced it would allow lenders to use vantage war.

Oh for conforming mortgages and the <unk> credit report requirement will remain in effect.

Chris Cartwright: Factor Trust growth rates have reached double digits due to competitive wins and with a strong pipeline of new opportunities. In Fraud, we launched new models using our materially enriched identity graph and our analytics and machine learning capabilities. Additionally, we developed a solution to identify consumers who dispute credit trade lines by falsely claiming to be fraud victims. Early demand for this solution is strong, representing a cross-sell opportunity into credit customers. Marketing Solutions reported stronger retention and increasing sales momentum, particularly within audience and identity products.

Todd Cello: Through mid July we have repurchased $47 million in shares.

We believe these policies will provide choice for lenders and enhance safety uncertainty within mortgage markets benefiting homebuyers lenders and taxpayers over the long term.

Todd Cello: We expect that our financial results will further support disciplined capital deployment throughout the year.

Emerging verticals grew 5% insurance grew double digits, driven by a gradual recovery in marketing and healthy consumer shopping activity.

Todd Cello: Our second quarter results reflect a strong performance in stable, but still muted market conditions.

Todd Cello: U S credit volumes in the second quarter were slightly above expectations, particularly in consumer lending.

In addition to new wins across our solutions.

Todd Cello: Activity in cards remained steady while auto and mortgage activity is below historical trends.

We also grew across our diversified verticals led by communications and Tech retail and E Commerce.

Todd Cello: Based on our over performance in the first half of the year, we're increasing our 2025 full year revenue and adjusted diluted earnings per share guidance.

Consumer interactive grew 2% organically driven by the successful launch of our freemium solution, marking a key step in our turnaround strategy.

Chris Cartwright: Within U.S. Consumer Solutions, we rolled out a new freemium offering with updated web and app experiences, resulting in strong growth in the number of new free users.

Todd Cello: Even with this increase we believe our updated guidance remains prudently conservative to accommodate ongoing macro uncertainties as we will detail later in the call.

International grew 6% on an organic constant currency basis.

India's growth accelerated to 8% as anticipated.

Chris Cartwright: We plan to further expand these capabilities and our offer inventory. With Monevo, we integrated lenders' underwriting criteria to personalize pre-qualified offers through online publishers and improve consumer experience and ad conversion. We will continue to build this marketplace by adding new publishers and top-tier lenders to the platform.

We experienced a modest pickup in consumer lending and delivered strong growth in our non consumer businesses.

Todd Cello: In the U S consumers and lenders remains sound and resilient supporting stable lending activity consumers are benefiting from low unemployment modest, but positive real wage growth and manageable inflation.

Within the remainder of the international portfolio, Canada, and Africa were standouts, each growing double digits.

Supported by our strong financial results, our leverage ratio declined to 2.8 times we.

Todd Cello: Consumer sentiment in June improved from low levels earlier in the year.

We believe we're positioned to delever to two five times before funding or a play in Mexico acquisition, which we expect to close by the end of this year. We also opportunistically accelerated our share repurchases in the quarter.

Todd Cello: Reflecting a better outlook for the economy inflation and personal finances made.

Chris Cartwright: Now, I'll conclude my remarks with a deeper dive into the innovation and growth of our communication. particularly Trusted Call Solutions or TCS. We entered the communications solutions market through our New Star Act. which leveraged its relationships with telco companies to build a suite of data-driven authentication Our communication solutions help make trust possible in the phone experience by authenticating and clarifying the purpose of phone calls. Our customers report better answer rates and higher consumer satisfaction when using this service. The use cases typically combine fraud mitigation and brand identification to improve consumer engagement. Now, communications solutions overall has grown 10% plus per annum since 2022, and should achieve 320 million in revenue in 2025.

Todd Cello: The major lenders reported solid second quarter earnings with strong profitability adequate capital and good credit performance.

Through mid July we have repurchased $47 million in shares.

Todd Cello: Now in April we noted that trade in physical policy proposals added uncertainty to employment levels inflation interest rates and economic growth.

We expect that our financial results will further support disciplined capital deployment throughout the year.

Todd Cello: The U S has reached agreements with several countries since then and more expected soon.

Our second quarter results reflect a strong performance in stable, but still muted market conditions.

Todd Cello: However, the recently passed U S fiscal package.

U S credit volumes in the second quarter were slightly above expectations, particularly in consumer lending.

Todd Cello: <unk> for 2017 rate cuts increases the deficit and raises the debt limit.

Activity in cards remained steady while auto and mortgage activity is below historical trends.

Todd Cello: This has raised concerns about higher inflation and interest rates, which could negatively impact economic and lending conditions.

Based on our over performance in the first half of the year, we're increasing our 2025 full year revenue and adjusted diluted earnings per share guidance.

Todd Cello: The 10 year U S treasury rate remains elevated although below its mid January peak.

Todd Cello: And we will continue to monitor the impact of these policy changes on rates consumers and our customers.

Even with this increase we believe our updated guidance remains prudently conservative to accommodate ongoing macro uncertainties as we will detail later in the call.

Chris Cartwright: Trusted call solutions has grown from 50 million in revenue in 22 to an expected 150 million this year. Financial Services accounts for almost 30% of TCS revenues, with the remaining 70% spread across our emerging verticals. The remainder of Communications Solutions includes legacy products such as Landline Caller ID and Listings Manager. These products embed us with telco companies and provide the data necessary for new products such as TCS and are very profitable, although their revenue growth is flat to declining slightly.

Todd Cello: In July I attended the Transunion symbol annual credit conference in India, celebrating civils 25th anniversary.

In the U S consumers and lenders remain sound and resilient supporting stable lending activity consumers are benefiting from low unemployment modest, but positive real wage growth and manageable inflation.

Todd Cello: The event drew over 2500 clients, including more than 100 Ceos from major Indian lenders and key reserve bank of India regulators.

Todd Cello: We discuss future innovations to increase financial inclusion and introduce new solutions and market insights.

Consumer sentiment in June improved from low levels earlier in the year.

Todd Cello: This event reinforced civil strong reputation and the positive impact it has on the Indian economy.

Reflecting a better outlook for the economy inflation and personal finances.

Major lenders reported solid second quarter earnings with strong profitability adequate capital and good credit performance.

Todd Cello: Our India strategy reflects our vision to Foster trust in global Commerce between consumers and businesses.

Now in April we noted that trade in physical policy proposals added uncertainty to employment levels inflation interest rates and economic growth.

Todd Cello: We recognized significant opportunities in India supported by our scale, well known brand high quality data innovative products and strong relationships with bankers and regulators alike.

Chris Cartwright: In sum, we believe communication solutions can deliver at least high single-digit growth driven by the sizable market for trusted calls.

The U S has reached agreements with several countries since then and more expected soon.

Chris Cartwright: I'll detail how TCS works, why we're the market leader, and how we will build on our momentum. Trusted Call Solutions enhances the phone channel, closing the user experience gap with digital channels. As most businesses rely on phone calls for important communications, and consumers prefer them for urgent matters. Unanswered calls and robocalls remain major issues. Over 80% of outbound calls go unanswered, and consumers receive 55 billion robocalls annually, leading to 12 billion in fraud. Our solutions adds caller name, logo, and call context to outbound calls. It authenticates inbound calls to block fraudsters and leads to better engagement, brand protection, and financial results.

Todd Cello: Our future innovation aims to expand credit access for underserved markets, such as small and medium sized businesses new to credit consumers and micro finance all identified by India's government as vital economic drivers.

However, the recently passed U S fiscal package extend into 2017 rate cuts increases the deficit and raises the debt limit.

This has raised concerns about higher inflation and interest rates, which could negatively impact economic and lending conditions.

Todd Cello: After the event I'm, even more confident that India represents an enormous long term growth opportunity for transunion with the potential to grow over 20% annually over the medium term.

The 10 year U S treasury rate remains elevated although below its mid January peak.

And we will continue to monitor the impact of these policy changes on rates consumers and our customers.

Todd Cello: In the near term consumer lending in India is experiencing a gradual volume recovery due to manageable delinquency levels lower interest rates and the return to market of nonbank lenders, who were sidelined by the reserve bank last year.

In July I attended the Transunion simple annual credit conference in India, celebrating civils 25th anniversary.

The event drew over 2500 clients, including more than 100 Ceos from major Indian lenders and key reserve bank of India regulators.

Todd Cello: RBI has reduced interest rates by 100 basis points, thus far in 2025 and is balancing lending safety with economic growth.

We discuss future innovations to increase the mutual inclusion and introduce new solutions and market insights.

Chris Cartwright: Customers across industries report improved contact and conversion rates.

Todd Cello: We anticipate our growth in India will accelerate later this year as lending volumes continue to recover resulting in nearly 10% organic constant currency revenue growth for the full year.

This event reinforced civil strong reputation.

Chris Cartwright: Now, TCS integrates TransUnion into the mobile call ecosystem, establishing an essential framework that benefits telecommunications carriers, enterprises, and end-users. Enterprises serve as our primary clients. We authenticate and onboard their phone numbers and enriched call data into our comprehensive data management platform. Telecommunications carriers are our strategic partners. When a call is initiated via a mobile network, the carriers access verified rich call data such as name, logo, and contextual information from TransUnion to present on the recipient's device. Enterprises compensate TransUnion for displaying authenticated information and we in turn provide royalties to the carrier. Consumers benefit from an enhanced and trustworthy calling experience, enabling them to make informed decisions when responding to calls.

And the positive impact it has on the Indian economy.

Our India strategy reflects our vision to foster crossed in global commerce between consumers and businesses.

Todd Cello: And with fourth quarter growth in the high teens.

We recognized significant opportunities in India supported by our scale, well known Blaine brand high quality data innovative products and strong relationships with bankers and regulators alike.

Todd Cello: We also continue to transform the company by modernizing our technology enhancing our global operating model and accelerating innovation across our product suites.

Todd Cello: I'll detail our recent progress.

Our future innovation aims to expand credit access for underserved markets, such as small and medium sized businesses new to credit consumers and micro finance all identified by India's government as vital economic drivers.

Todd Cello: In the quarter, we accelerated U S credit customer migrations and further enhance the core capabilities of one true our global Configurable cloud native platform.

Todd Cello: Our customer migrations are focused on minimizing conversion disruptions, while delivering our targeted savings within the committed investment levels.

After the event I'm, even more confident that India represents an enormous long term growth opportunity for transunion with the potential to grow over 20% annually over the medium term.

Todd Cello: To achieve this we strengthened <unk> functionality to manage our most complex and customized batch and online workloads.

In the near term consumer lending in India is experiencing a gradual volume recovery due to manageable delinquency levels lower interest rates and the return to market of nonbank lenders, who were sidelined by the reserve bank last year.

Chris Cartwright: Now, TCS is positioned at the forefront of the industry, addressing an estimated opportunity exceeding $1 billion in the U.S. alone.

Todd Cello: We're achieving notable performance in innovation improvements on the new platform, including over 50% faster processing robust cyber security and compliance controls.

Chris Cartwright: We've identified several sustainable competitive advantages that underpin our success in this market. First, TCS covers 94% of U.S. wireless consumers through our exclusive relationship with AT&T and strategic partnerships with First Orion and TNS. This collaboration enabled the delivery of five billion authenticated branded calls across the top three carriers in 2024. Leveraging our broad phone coverage and scale, we partnered with AT&T this year to introduce branded call displays featuring call reasons and providing context to phone calls and improving consumer engagement.

Todd Cello: And rapid development of new scores attributes and models.

The RBI has reduced interest rates by 100 basis points, thus far in 2025 and is balancing lending safety with economic growth.

Todd Cello: We also migrated several key consumer indirect customers to our new global consumer technology platform.

We anticipate our growth in India will accelerate later this year as lending volumes continue to recover resulting in nearly 10% organic constant currency revenue growth for the full year and with fourth quarter growth in the high teens.

Todd Cello: The scalable platform enables faster product releases seamless multi region deployment and reduced operational complexity.

Todd Cello: To further enhance <unk> capabilities, we have augmented its underlying identity graph with our comprehensive public records database.

Speaker Change: We also continued to transform the company by modernizing our technology enhancing our global operating model and accelerating innovation across our product suites I'll detail our recent progress.

Todd Cello: This integration enhances data fidelity and introduces more robust attributes related to addresses phone numbers and E mails.

Chris Cartwright: Our innovation roadmap includes upcoming releases such as omni-channel capabilities and advanced fraud detection signals. Second, we steward expansive and authoritative datasets to rigorously verify enterprises and telephone details, which enable us to authenticate and enrich calls. Our robust industry relationships and integration with over 800 carriers enabled us to develop TCS.

Todd Cello: Identity graph now encompasses a wide array of to use proprietary data assets, including traditional credit header information public records communication and device identifiers streaming data and other unique data sources.

Speaker Change: In the quarter, we accelerated U S credit customer migrations and further enhance the core capabilities of one true our global Configurable cloud native platform.

Speaker Change: Our customer migrations are focused on minimizing conversion disruptions, while delivering our targeted savings within the can be committed investment levels.

Todd Cello: Together these elements enable industry, leading consumer identity resolution improved data onboarding more targeted marketing and optimized fraud prevention and risk management.

Speaker Change: To achieve this we strengthened <unk> functionality to manage our most complex and customized batch and online workloads.

Chris Cartwright: Third, we possess extensive distribution channels through TransUnion that allow us to deploy TCS in numerous vertical markets. We see significant interest and strong sales across all sectors we cover, including financial services, insurance, health care, and the public sector.

Todd Cello: During the quarter, we successfully transitioned over 20000 specialized risk clients to the enhanced one true identity graph, resulting in significant performance gains for these customers.

Speaker Change: We're achieving notable performance in innovation improvements on the new platform, including over 50% faster processing robust cyber security and compliance controls.

Todd Cello: We also expanded adoption of our AI driven developer tool one true assist which employs advanced language models to automate repetitive coding tasks facilitate code translations and detect and address security vulnerabilities.

Speaker Change: And rapid development of new scores attributes and models.

Chris Cartwright: And finally, TCS integrates seamlessly with our market-leading fraud solutions to safeguard against data breaches, account takeover attempts, phishing, and other impersonation-related threats. Collectively, TCS enhances TU's long term growth prospects, providing a pathway toward near $250 million in revenue by 2028. As the market leader, we maintain robust integration with telecom companies and businesses, positioning us to capitalize on a large market opportunity in the U.S. Our strategy includes deeper penetration of our core verticals, scaling existing solutions, and broadening the product portfolio.

Speaker Change: We also migrated several key consumer indirect customers to our new global consumer technology platform.

Speaker Change: The scalable platform enables faster product releases seamless multi region deployment and reduced operational complexity.

Todd Cello: One true assist supports the entire one true software development lifecycle and has contributed to 20% to 50% productivity increases for developers.

Speaker Change: To further enhance <unk> capabilities, we have augmented its underlying identity graph with our comprehensive public records database.

Todd Cello: Additionally.

Todd Cello: We recently launched one true AI studio, which provides low code and no code AI workflow solutions for broader non engineering use cases.

Speaker Change: This integration enhances data fidelity and introduces more robust attributes related to addresses phone numbers and E mails.

Todd Cello: Yeah.

Speaker Change: Our identity graph now encompasses a wide array of to use proprietary data assets, including traditional credit header information public records communication and device identifiers streaming data and other unique data sources.

Todd Cello: We're improving our global operating model as well by strengthening product development practices and our leadership.

Speaker Change: In Q2, Brian Silver joined US as head of marketing solutions under Muhammad <unk>, bringing significant digital marketing experience.

Chris Cartwright: Furthermore, we believe that we can take this solution to many of our markets globally in the coming year. Recently, we launched a branded call display in Canada, developed in collaboration with TELUS, a leading Canadian telecommunications provider. And we have introduced initial solutions in Brazil and France and are evaluating additional opportunities in markets such as India. We will continue to provide updates on our progress as we scale TCS in the coming quarter.

Speaker Change: Together these elements enable industry, leading consumer identity resolution improved data onboarding more targeted marketing and optimized fraud prevention and risk management.

Speaker Change: We continue to refine our approach to product management to better align resources streamline decision, making and accelerate new product iterations. These.

Speaker Change: These changes will improve commercial outcomes by integrating our geographic and vertical led go to market strength with enhanced product development expertise.

Speaker Change: During the quarter, we successfully transitioned over 20000 specialized risk clients to the enhanced one true identity graph, resulting in significant performance gains for these customers.

Speaker Change: Our technology stack and operating model are contributing to faster innovation and growth across our six global solutions families. We've increased the pace of new product introductions, while also completing foundational technology modernization.

Todd Cello: And with that, I'll hand it over to Todd. Thanks, Chris. And let me add my welcome to everyone. As Chris mentioned, in the second quarter, we exceeded our guidance across all key financial metrics, driven by broad based outperformance in our US market segment, led by financial services. Second Quarter Consolidated Revenue increased 10% on a reported and 9% on an organic constant currency basis. The Monevo acquisition contributed half a percent to growth. Most of Enevo's revenue is recognized in the U.K., with the remaining U.S. revenue recognized in Consumer Interactive. The impact from foreign currency was immaterial.

Speaker Change: We also expanded adoption of our AI driven developer tool one true assist which employs advanced language of bottles to automate repetitive coding tasks facilitate coke translations and detect and address security vulnerabilities.

Speaker Change: Factor Trust customers can I use one true with its improved processing times expanded scores and attributes and more rapid model development fab.

Speaker Change: One true assist supports the entire one true software development lifecycle and has contributed to 20% to 50% productivity increases for developers.

Speaker Change: Factor across growth rates have reached double digits due to competitive wins and with a strong pipeline of new opportunities.

Speaker Change: Additionally.

Speaker Change: We recently launched one true AI studio, which provides low code and no code AI workflow solutions for broader non engineering use case.

Speaker Change: And fraud, we launched new models, using our materially enriched identity graph and our analytics and machine learning capabilities.

Speaker Change: Additionally, we developed a solution to identify consumers, who dispute credit trade lines by falsely claiming to be fraud victims.

Todd Cello: Our business grew 6.5% on an organic constant currency basis, excluding mortgage from both the second quarter of 2024 and 2025. Adjusted EBITDA increased 8%. Our adjusted EBITDA margin was 35.7% ahead of our 34.8% to 35.3% guidance due to flow through stronger revenue growth. Adjusted Diluted Earnings Per Share was $1.08, $0.09 ahead of the high end of our guidance and an increase of 9%.

Speaker Change: Yeah.

Speaker Change: We're improving our global operating model as well by strengthening product Belmont practices and our leadership.

Speaker Change: Early demand for this solution is strong representing a cross sell opportunity into credit customers.

Speaker Change: In Q2, Brian Silver joined US as head of marketing solutions under Mohammad <unk>, bringing significant digital marketing experience.

Speaker Change: Marketing solutions reported stronger retention and increasing sales momentum, particularly within audience and identity products.

Speaker Change: We continue to refine our approach to product management to better align resources streamline decision, making and accelerate new product iterations. These.

Speaker Change: Within the U S consumer solutions, we rolled out a new freemium offering with updated web and app experiences, resulting in strong growth in the number of new free users. We plan to further expand these capabilities and offer and our offer inventory.

Speaker Change: These changes will improve commercial outcomes by integrating our geographic and vertical led go to market strength with enhanced product development expertise.

Todd Cello: Finally, in the second quarter, we took $29 million of one-time charges related to our transformation program. $5 million for operating model optimization, and $23 million for technology transformation. To date, we have incurred $315 million of planned one-time transformation expenses over the course of the program and remain on track for $355 to $375 million in one-time expenses by the end of 2025.

Speaker Change: And many and with Minerva, we integrated lenders underwriting criteria to personalized prequalified offers through online publishers and improve consumer experience and AD conversion.

Speaker Change: Our technology stack and operating model are contributing to faster innovation and growth across our six global solutions families. We've increased the pace of new product introductions, while also completing foundational technology modernization.

Speaker Change: We will continue to build this marketplace by adding new publishers and top tier lenders to the platform.

Speaker Change: Factor cross customers can now use one true with its improved processing times expanded scores and attributes and more rapid model development.

Speaker Change: Now I'll conclude my remarks, with a deeper dive into the innovation and growth of our communication solutions, particularly trusted call solutions or Tcs.

Speaker Change: Cost growth rates have reached double digits due to competitive wins and with a strong pipeline of new opportunities.

Speaker Change: We entered the communication solutions market through our new store acquisition, which leveraged its relationships with telco companies to build a suite of data driven authentication solutions, our communication solutions help make trust possible in the phone experienced by authenticating and clarifying the purpose of phone calls.

Todd Cello: Looking at segment financial performance for the second quarter, U.S. markets revenue was up 10% compared to the year ago quarter. adjusted EBITDA margin was 37.9% down 110 basis points. Due to the timing shift of investments from the first quarter to the second quarter, as we discussed in April. Financial services revenue grew 17% or 11% excluding mortgage. Credit Card and Banking was up 5% against flattish online volumes. We saw good growth from alternative data sales and trusted call solutions, as well as healthy batch activity. Consumer lending growth accelerated to 18%. We experienced further strengthening in marketing and online volumes from FinTech and point-of-sale lenders.

Speaker Change: And fraud, we launched new models, using our materially enriched identity graph and our analytics and machine learning capabilities.

Speaker Change: Additionally, we developed a solution to identify consumers, who dispute credit frayed lines by falsely claiming to be fraud victims.

Speaker Change: Our customers report better answer rates and higher consumer satisfaction when using the service.

Speaker Change: Early demand for this solution is strong representing a cross sell opportunity into credit customers.

Speaker Change: They use cases, typically combined fraud mitigation and brand identification to improve consumer engagement.

Speaker Change: Marketing solutions reported stronger retention and increasing sales momentum, particularly within audience and identity products.

Speaker Change: Now communication solutions overall has grown 10% plus per annum since 2022.

Speaker Change: Within the U S consumer solutions, we rolled out a new freemium offering with updated web and app experiences, resulting in strong growth in the number of new free users. We plan to further expand these capabilities and offer it or offer inventory.

Speaker Change: And should achieve $320 million in revenue in 2025.

Speaker Change: Trusted call solutions has grown from $50 million in revenue in 'twenty, two to an expected $150 million this year.

Speaker Change: And many and with many though we integrated lenders underwriting criteria to personalize prequalified offers through online publishers and improve consumer experience and AD conversion. We will continue to build this marketplace by adding new publishers and top tier lenders to the platform.

Todd Cello: We also delivered strong factor trust growth. Quattro grew 19% driven by pricing of our data and third party scores, as well as good growth in our communications and marketing solutions. Volumes remained elevated in April, likely due to a pull forward of demand ahead of tariffs, but normalized in May and June towards levels seen early in the year. For mortgage, revenue grew 29% despite flat inquiry volumes, benefiting from third-party score pricing and non-tribural revenue. Mortgage accounts for about 12% of TransUnion's trailing 12-month revenue. Emerging verticals grew 5%, led again by double-digit growth in insurance. Tech, Retail, and E-Commerce, Telco, and Tenant Employment all grew mid-single digits.

Speaker Change: Financial services accounts for almost 30% of Tcs revenues with the remaining 70% spread across our emerging verticals.

Speaker Change: The remainder of communication solutions includes legacy products, such as landline caller, I D and listings management.

Speaker Change: These products embed us with telco companies and provide the data necessary for new products, such as Tcs and are very profitable, although the revenue growth is flat to declining slightly.

Speaker Change: Now I'll conclude my remarks, with a deeper dive into the innovation and growth of our communication solutions, particularly trusted call solutions or Tcs.

Speaker Change: We entered the communication solutions market through our new store acquisition, which leveraged its relationships with telco companies to build a suite of data driven authentication solutions, our communication solutions help make trust possible in the phone experienced by authenticating and clarifying the purpose of phone calls.

Speaker Change: In sum, we believe communication solutions can deliver at least high single digit growth driven by the sizable market for trusted coals.

Speaker Change: Now.

Speaker Change: I'll detail, how Tcs works why we're the market leader and how we will build on our momentum.

Speaker Change: Trustee call solutions enhances the phone channel closing the user experience gap with digital channels.

Speaker Change: Our customers report better answer rates and higher consumer satisfaction when using the service.

Speaker Change: They use cases, typically combined fraud mitigation and brand identification to improve consumer engagement.

Speaker Change: As most businesses rely on phone calls for important communications and consumers prefer them for urgent matters.

Todd Cello: Media was flat and public sector and services declined.

Speaker Change: Now communication solutions overall has grown 10% plus per annum since 2022.

Todd Cello: We expect media growth to improve in the second half as marketing wins convert to revenue and public sector to return to growth later in the year. In insurance, we delivered another strong quarter supported by stable market conditions. Marketing activity continues to recover as insurers benefit from improved rate adequacy, especially in personal lines auto. Consumer Shopping also remained active. We delivered broad-based new business wins, including in core credit and driving history, as well as trusted call solutions and our modern marketing products. Turning to consumer interactive, revenue grew 2% on an organic constant currency basis. Both our direct and indirect channels grew in the quarter.

Speaker Change: Unanswered calls it a robo calls remain major issues over 80% of outbound calls go and answer and consumers receive 55 billion of Robo calls annually, leading to $12 billion in fraud.

Speaker Change: And should achieve $320 million in revenue in 2025.

Speaker Change: Across the call solutions has grown from $50 million in revenue in 'twenty, two to an expected $150 million this year.

Speaker Change: Our solutions adds color name logo and call context to outbound calls.

Speaker Change: Financial services accounts for almost 30% of Tcs revenues with the remaining 70% spread across our emerging verticals.

Speaker Change: It Authenticates inbound calls to block fraudsters.

Speaker Change: And leads to better engagement brand protection and financial results.

Speaker Change: Customers across industries report improved contact and conversion rates.

Speaker Change: The remainder of communication solutions includes legacy products, such as landline caller, I D and listings management.

Speaker Change: Now Tcs integrates transunion into the mobile call ecosystem, establishing an essential framework that benefits telecommunications carriers enterprises Indian users.

Speaker Change: These products and embed us with telecom companies and provide the data necessary for new products, such as Tcs and are very profitable, although the revenue growth is flat to declining slightly.

Speaker Change: Enterprises serve as our primary clients, we authenticated and onboard their phone numbers and enriched call data into our comprehensive data management platform.

Todd Cello: Excluding the impact from lapping a large breach remediation win in the third quarter 2024, we expect growth in the direct and indirect channels in the second half of the year.

Speaker Change: In sum, we believe communication solutions can deliver at least high single digit growth driven by the sizable market for trusted coals.

Speaker Change: Telecommunication telecommunications carriers are our strategic partners.

Speaker Change: Now.

Todd Cello: For my comments about international, all revenue growth comparisons will be in organic constant currency terms. For the total segment, revenue grew 6%. Adjusted EBITDA margin was 42.7%. Looking at the specifics for each region, India growth accelerated to 8%, as anticipated, and up from the 1% growth in the first quarter. Commercial Credit, Direct-to-Consumer and new products like our API Marketplace, Drove Growth, offsetting still muted consumer credit volumes. Our UK Business Group 5%. Batch and online activity remain healthy for our largest banking customers, and we continue to ramp new business wins across our vertical. In Canada, we grew 10% in a muted market.

Speaker Change: I'll detail, how Tcs works why we're the market leader and how we will build on our momentum.

Speaker Change: The call is initiated a mobile network the carriers access verified rich call data such as name logo and contextual information from Transunion to present on the recipients device.

Speaker Change: Trustee call solutions enhances the phone channel closing the user experience gap with digital channels.

Speaker Change: Most businesses rely on phone calls for important communications and consumers prefer them for for urgent matters.

Speaker Change: Enterprises compensate transunion for displaying authenticated information and we in turn provide royalties to the carriers.

Speaker Change: Unanswered calls it a robo calls remain major issues over 80% of outbound calls go and answer and consumers receive 55 billion of Robo calls annually, leading to $12 billion in fraud.

Speaker Change: Consumers benefit from an enhanced and trustworthy, calling experience, enabling them to make informed decisions when responding to calls.

Speaker Change: Tcs is positioned at the forefront of the industry addressing an estimated opportunity exceeding $1 billion in the U S alone.

Speaker Change: Our solutions adds color name logo and call context to outbound call. It authenticates inbound calls to block fraudsters and leads to better engagement brand protection and financial results.

Speaker Change: We've identified several sustainable competitive advantages that underpin our success in this market.

Speaker Change: First Tcf covers 94% of U S wireless consumers through our exclusive relationship with AT&T and strategic partnerships with first Orion and TNF.

Speaker Change: Customers across industries report improved contact and conversion rates.

Todd Cello: We drove growth through sales of our innovative fraud, identity, and consumer indirect solution. share gains across financial services, auto, and insurance. and increased portfolio review batch activity. We also benefited from some one-time revenues in the quarter. In Latin America, revenue grew 4%, with modest growth in Colombia and Brazil, and high single-digit growth in our other Latin American countries. In Asia-Pacific, we declined 8% as we lapped one-time consulting revenue in the prior year. Philippines' growth remains strong, while Hong Kong faces a softer economic backdrop. We expect Asia-Pacific to return to growth in the second half of the year.

Speaker Change: Now Tcs integrates transunion into the mobile call ecosystem, establishing an essential framework that benefits telecommunications carriers enterprises and end users.

Speaker Change: This collaboration enabled the delivery of 5 billion authenticated branded calls across the top three carriers in 2024.

Speaker Change: Leveraging our broad phone coverage and scale, we partnered with AT&T. This year to introduce branded called displays featuring call reasons, and providing context to phone calls and improving consumer engagement.

Speaker Change: Enterprises serve as our primary clients, we authenticate and onboard their phone numbers and enriched call data into a comprehensive data management platform.

Speaker Change: Telecommunication telecommunications carriers are our strategic partners.

Speaker Change: Our innovation roadmap includes upcoming releases, such as Omnichannel capabilities and advanced fraud detection signals.

Speaker Change: When a call is initiated via a mobile network the carriers access verified rich call data such as name logo and contextual information from Transunion to present on the recipients device.

Speaker Change: Second, we steward expensive and authoritative datasets to rigorously verify enterprises, and telephone details, which enable us to authenticated and rich calls.

Speaker Change: Enterprises compensate transunion for displaying authenticated information and we in turn provide royalties to the carriers.

Speaker Change: Our robust industry relationships and integration with over 800 carriers enabled us to develop tcs.

Todd Cello: Finally, Africa increased 14% with broad-based growth across financial services, retail, and insurance.

Speaker Change: Consumers benefit from an enhanced and trustworthy, calling experience, enabling them to make informed decisions when responding to calls.

Speaker Change: Third we possess extensive distribution channels through transunion.

Todd Cello: Turning to the balance sheet, we ended the quarter with $5.1 billion of debt and $688 million of cash. Our leverage ratio at quarter end was 2.8 times. We have repurchased $47 million in shares year-to-date through mid-July in line with our balanced approach to capital deployment.

Speaker Change: Tcs is positioned at the forefront of the industry addressing an estimated opportunity exceeding 1 billion in the U S alone.

Speaker Change: How us to deploy Tcs in numerous vertical markets we.

Speaker Change: We see significant interest and strong sales across all sectors, we cover including financial services insurance healthcare and the public sector.

Speaker Change: We've identified several sustainable competitive advantages that underpin our success in this market.

Speaker Change: And finally, Tcs integrates seamlessly with our market, leading fraud solutions to safeguard against data breaches account takeover attempts fishing and other impersonation related threats.

Speaker Change: First Tcs covers 94% of U S wireless consumers through our exclusive relationship with AT&T and strategic partnerships with first Orion and TNF.

Todd Cello: We remain focused on delevering to under 2.5 times leverage ratio. Throughout the remainder of the year, we plan to balance debt prepayment and share repurchases based on market conditions.

Speaker Change: This collaboration enabled the delivery of 5 billion authenticated Brandon calls across the top three carriers in 2024.

Speaker Change: Collectively Tcs enhances T use long term growth prospects, providing a pathway towards near $250 million in revenue by 2028.

Todd Cello: We also plan to preserve capital ahead of our TransUnion de Mexico acquisition, which we expect will close by year-end.

Speaker Change: Leveraging our broad phone coverage and scale, we partnered with AT&T. This year to introduce branded called displays featuring call reasons, and providing context to phone calls and improving consumer engagement.

Speaker Change: As the market leader, we maintained robust integration with telecom companies and businesses positioning us to capitalize on our large market opportunity in the U S.

Todd Cello: Turning to guidance. As Chris mentioned, we are raising our guidance for the full year primarily to account for strong first half results, as well as continued business momentum.

Speaker Change: Our innovation roadmap includes upcoming releases, such as omni channel capabilities and advanced fraud detection signals.

Our strategy includes deeper penetration of our core verticals scaling existing solutions and broadening the product portfolio.

Todd Cello: Even with the guidance raised, we maintained a prudently conservative posture for the remainder of the year to account for ongoing market uncertainty. We believe we can manage some level of U.S. lending activity softening within our guidance range. Should current conditions persist, we would expect to deliver results at or above the high end of our guidance range.

Speaker Change: Furthermore, we believe that we can take this solution to many of our markets globally in the coming years Reese.

Speaker Change: Second, we steward expensive and authoritative datasets to rigorously verify enterprises and telephone details, which enable us to authenticated enrich coal.

Speaker Change: Recently, we launched branded called display and Canada developed in collaboration with tell us a leading Canadian telecommunications provider.

Speaker Change: Our robust industry relationships and integration with over 800 carriers enabled us to develop tcs.

Speaker Change: And we have introduced new initial solutions in Brazil, and France and are evaluating additional opportunities in markets such as India.

Speaker Change: Third.

Speaker Change: We possess extensive distribution channels through transunion that allow us to deploy tcs in numerous vertical markets.

Speaker Change: We will continue to provide updates on our progress as we scale tcs in the coming quarters.

Todd Cello: That brings us to our outlook for the third quarter. We expect FX to be less than half a percent headwind to revenue and adjusted EBITDA. We expect Monevo Acquisition to add a percent to revenue. Expect revenue to be between $1.115 and $1.135 billion, or up 2% to 4% on an organic, constant currency basis. These growth rates include a 4% headwind from lapping the large breach remediation win in last year's third quarter. Excluding the breach comparison, our organic constant currency growth guidance would be 6 to 8 percent. Our revenue guidance includes approximately two points of tailwind from mortgage.

Speaker Change: We see significant interest and strong sales across all sectors, we cover including financial services insurance healthcare and the public sector.

Todd Cello: I'll hand, it over to Todd.

Todd Cello: Thanks, Chris and let me add my welcome to everyone as Chris mentioned in the second quarter, we exceeded our guidance across all key financial metrics driven by broad based outperformance in our U S market segment led by financial services.

Speaker Change: And finally, Tcs integrates seamlessly with our market, leading fraud solutions to safeguard against data breaches account takeover attempts fishing and other impersonation related threats.

Todd Cello: Quarter consolidated revenue increased 10% on a reported and 9% on an organic constant currency basis.

Speaker Change: Collectively Tcs enhances T use long term growth prospects, providing a pathway towards near $250 million in revenue by 2028.

Todd Cello: The <unk> acquisition contributed half a percent to growth.

Todd Cello: Most of <unk> revenue is recognized in the UK with the remaining U S revenue recognized in consumer interactive.

Speaker Change: As the market leader, we maintained robust integration with telecom companies and businesses positioning us to capitalize on our large market opportunity in the U S.

Todd Cello: The impact from foreign currency was immaterial.

Todd Cello: Business grew six 5% on an organic constant currency basis, excluding mortgage from both the second quarter of 2024 and 2025.

Speaker Change: Our strategy includes deeper penetration of our core verticals scaling existing solutions and broadening the product portfolio.

Todd Cello: And in the third quarter, we expect mortgage inquiries to decline modestly. We expect adjusted EBITDA to be between $397 and $411 million, up 1% to 4%. We expect adjusted EBITDA margin of 35.6 to 36.2% down 10 to 70 basis points. Our margin expectation for the third quarter is consistent with our results in the first half of the year, as well as our expectation for the full year. We expect our adjusted diluted earnings per share to be between 99 cents and $1.04. down 5% to flat.

Speaker Change: Furthermore, we believe that we can take this solution to many of our markets globally in the coming years Reese.

Todd Cello: Adjusted EBITDA increased 8%.

Todd Cello: Our adjusted EBITDA margin was 35, 7% ahead of our 34, 8% to 35, 3% guidance due to flow through a stronger revenue growth.

Recently, we launched branded called display and Canada developed in collaboration with tell us a leading Canadian telecommunications provider.

Speaker Change: And we have introduced a new initial solutions in Brazil, and France and are evaluating additional opportunities in markets such as India.

Todd Cello: Adjusted diluted earnings per share was $1.08 <unk> <unk> ahead of the high end of our guidance and an increase of 9%.

Speaker Change: We will continue to provide updates on our progress as we scale tcs in the coming quarters.

Todd Cello: Finally in the second quarter, we took $29 million of one time charges related to our transformation program.

Speaker Change: I'll hand, it over to Todd.

Todd Cello: $5 million for operating model optimization in $23 million for technology transformation.

Todd: Thanks, Chris and let me add my welcome to everyone as Chris mentioned in the second quarter, we exceeded our guidance across all key financial metrics driven by broad based outperformance in our U S market segment led by financial services.

Todd Cello: Turning to the full year, we anticipate FX to be less than a half a percent headwind to revenue and adjusted EBITDA, and the Monevo acquisition to contribute half a percent to We expect revenue of between $4.432 and $4.472 billion. We expect organic constant currency revenue growth of 6 to 7 percent, an increase from our prior guidance of 4.5 to 6 percent. including mortgage, we expect organic constant currency growth of four to 5%. These growth rates include a 1% headwind from lapping the large breach wind from last year's third quarter. Specific to our segment Organic Custom Currency Assumptions, we expect U.S.

Todd Cello: We have incurred $315 million of planned onetime transformation expenses over the course of the program.

Todd: Quarter consolidated revenue increased 10% on a reported and 9% on an organic constant currency basis.

Todd Cello: And remain on track for $355 million to $375 million in one time expenses by the end of 2025.

The Moon Evo acquisition contributed half a percent to growth.

Todd Cello: Looking at segment financial performance for the second quarter U S markets revenue was up 10% compared to the year ago quarter.

Todd: Most of <unk> revenue is recognized in the U K with the remaining U S revenue recognized in consumer interactive.

Todd Cello: Adjusted EBITDA margin was 37, 9% down 110 basis points due to the timing shift of investments from the first quarter to the second quarter as we discussed in April.

Todd: The impact from foreign currency was immaterial.

Todd: Business grew six 5% on an organic constant currency basis, excluding mortgage from both the second quarter of 2024 and 2025.

Todd Cello: Financial services revenue grew 17% or 11% excluding mortgage.

Todd: Adjusted EBITDA increased 8%.

Todd Cello: markets to grow mid-single digit, both including and excluding mortgage. We anticipate financial services to be up low double-digits or high single-digit, excluding mortgage. We expect mortgage revenue to increase by over 20% against modest declines in mortgage inquiries. We expect emerging verticals to be up mid-single digit. We anticipate Consumer Interactive decreasing low single digit but increasing low single digit when excluding the impact of last year's large breach win. growing high single-digit.

Todd: Our adjusted EBITDA margin was 35, 7% ahead of our 34.8% to 35, 3% guidance due to flow through a stronger revenue growth.

Todd Cello: Credit card and banking was up 5% against flattish online volumes.

Todd Cello: Good growth from alternative data sales and trusted call solutions as well as healthy batch activity.

Todd: Adjusted diluted earnings per share was $1.08 nine cents ahead of the high end of our guidance and an increase of 9%.

Todd Cello: Consumer lending growth accelerated to 18%.

Todd Cello: Experienced further strengthening in marketing and online volumes from Fintech and point of sale lenders. We also delivered strong factor trust growth.

Todd: Finally in the second quarter, we took $29 million of one time charges related to our transformation program.

Todd Cello: Auto grew 19% driven by pricing of our data and third party scores as well as good growth in our communications and marketing solutions.

$5 million for operating model optimization in $23 million for technology transformation.

Todd: To date, we have incurred $315 million of planned onetime transformation expenses over the course of the program Andrew.

Todd Cello: Volumes remained elevated in April likely due to a pull forward of demand ahead of tariffs, but normalized in may in June towards levels seen early in the year.

Todd Cello: Turning back to the total company outlook, we expect adjusted EBITDA to be between $1.58 and $1.61 billion, up 5% to 7%, an increase from our prior guidance of 3% to 6%. That would result in an adjusted EBITDA margin of 35.7% to 36.0%, down 30 basis points to flat. We anticipate adjusted diluted earnings per share to be $4.03 to $4.14, up 3-6%, also an increase from prior guidance of flat to 4% growth. Our expected adjusted diluted earnings per share growth reflects strong underlying performance and is inclusive of a 400 basis point headwind from foreign exchange and a higher tax rate in 2025.

Todd: And remain on track for $355 million to $375 million in one time expenses by the end of 2025.

Todd Cello: For mortgage.

Todd Cello: Revenue grew 29%, 29% despite flat inquiry volumes benefiting from third party score if pricing.

Todd: Looking at segment financial performance for the second quarter U S markets revenue was up 10% compared to the year ago quarter.

Todd Cello: Non Tri Bureau revenue.

Todd Cello: Mortgage accounts for about 12% of trans unions trailing 12 month revenue.

Todd: Adjusted EBITDA margin was 37, 9% down 110 basis points due to the timing shift of investments from the first quarter to the second quarter as we discussed in April.

Todd Cello: Emerging verticals grew 5% led again by double digit growth in insurance.

Todd Cello: Retail and ecommerce telco and tenant and employment all grew mid single digits.

Todd: Financial services revenue grew 17% or 11% excluding mortgage.

Todd Cello: Media was flat and public sector and services declined.

Todd: Card and banking was up 5% against flattish online volumes, we saw good growth from alternative data sales and trusted call solutions as well as healthy batch activity.

Todd Cello: We expect media growth to improve in the second half as marketing wins convert to revenue and public sector to return to growth later in the year.

Todd Cello: In insurance, we delivered another strong quarter supported by stable market conditions.

Todd: Consumer lending growth accelerated to 18%.

Todd Cello: We expect depreciation and amortization to be approximately $570 million. We expect the portion excluding step-up amortization from our 2012 change in control and subsequent acquisitions to be about $285 million as technology modernization initiatives go into production and start to depreciate. We now anticipate net interest expense will be about $200 million for the full year. We expect our adjusted tax rate to be approximately 26.5%. Capital expenditures are expected to be about 8% of revenue.

Todd: We experienced further strengthening in marketing and online volumes from Fintech and point of sale lenders.

Todd Cello: Marketing activity continues to recover as insurers benefit from improved rate adequacy, especially in personal lines auto.

Todd: We also delivered strong factor trust growth.

Todd: Auto grew 19% driven by pricing of our data and third party scores as well as good growth in our communications and marketing solutions volumes.

Todd Cello: Consumer shopping also remains active we delivered broad based new business wins, including in core credit and driving history.

Todd Cello: As well as trusted call solutions, and our modern marketing products.

Todd: Volumes remained elevated in April likely due to a pull forward of demand ahead of tariffs, but normalized in may and June towards levels seen early in the year.

Todd Cello: Turning to consumer interactive revenue grew 2% on an organic constant currency basis, both our direct and indirect channels grew in the quarter excluding.

Todd: For mortgage revenue grew 29, 29% despite flat inquiry volumes benefiting from third party score of pricing.

Todd Cello: The impact from lapping a large breach remediation win in the third quarter 2024, we expect growth in the direct and indirect channels in the second half of the year.

Todd Cello: We continue to expect to incur 100 to $120 million in one time charges in 2025 related to the last year of our transformation program. Given those investments, we expect our free cash flow conversion as a percentage of adjusted net income to be 70% in 2025 before improving to 90% plus in 2026.

Todd: Non Tri Bureau revenue.

Todd: Mortgage accounts for about 12% of trains unions trailing 12 month revenue.

Todd Cello: For my comments about international all revenue growth comparisons will be an organic constant currency terms for.

Todd: Emerging verticals grew 5% led again by double digit growth in insurance.

Todd Cello: For the total segment revenue grew 6%.

Todd: Retail and ecommerce telco and tenant employment all grew mid single digits.

Todd Cello: Adjusted EBITDA margin was 42, 7%.

Todd Cello: In closing, we delivered strong results and are quickly approaching a period in 2026 and beyond that we believe will see stronger free cash flow generation and a leverage ratio within our target range. This will enable disciplined and shareholder-friendly deployment of capital, similar to our approach throughout the first half of the year.

Todd Cello: Looking at the specifics for each region, India growth accelerated to 8% as anticipated and up from the 1% growth in the first quarter.

Todd: Media was flat and public sector and services declined we expect media growth to improve in the second half as marketing wins convert to revenue and public sector to return to growth later in the year.

Todd Cello: Commercial credit direct to consumer and new products like our API marketplace drove growth.

Todd: In insurance, we delivered another strong quarter supported by stable market conditions marketing activity continues to recover as insurers benefit from improved rate adequacy, especially in personal lines auto.

Todd Cello: Offsetting still muted consumer credit volumes.

Todd Cello: Our U K business grew 5%.

Chris Cartwright: I will now turn the call back to Chris for final comments. Thanks, Todd. In summary, we delivered a robust second quarter, surpassing our guidance across all key financial metrics and marking our sixth consecutive quarter of high single-digit organic revenue growth. Based on our strong performance in the first half of the year and sustained business momentum, we're raising our 2025 guidance, now anticipating 67% organic constant currency revenue growth. And we continue to make substantial progress toward our strategic priority. Following several years of investment, our current focus is on execution and value creation. Our growth playbook, which has historically emphasized differentiated vertical market engagement and geographic expansion, has driven our industry-leading growth over the past decade.

Todd Cello: Batch and online activity remain healthy for our largest banking customers and we continue to ramp new business wins across our verticals.

Todd: Consumer shopping also remains active we delivered broad based new business wins, including in core credit and driving history.

Todd Cello: In Canada, we grew 10% and a muted market, we drove growth through sales of our innovative fraud identity and consumer indirect solutions share gains across financial services auto and insurance.

Todd: As well as trusted call solutions, and our modern marketing products.

Todd: Turning to consumer interactive revenue grew 2% on an organic constant currency basis, both our direct and indirect channels grew in the quarter excluding.

Todd Cello: And increased portfolio review batch activity.

Todd Cello: We also benefited from some one time revenues in the quarter.

Todd: Excluding the impact from lapping a large breach remediation win in the third quarter 2024, we expect growth in the direct and indirect channels in the second half of the year.

Todd Cello: In Latin America revenue grew 4%.

Todd Cello: With modest growth in Colombia, and Brazil, and high single digit growth in our other Latin American countries.

Todd: For my comments about international all revenue growth comparisons will be an organic constant currency terms.

Todd Cello: In Asia Pacific, We declined 8% as we lapped onetime consulting revenue in the prior year.

Chris Cartwright: As a result of our transformation, we are equipped with an expanded suite of solutions for our customers. Product innovation is an increasingly essential component of our growth playbook, complementing our established vertical and geographic strategy. We are confident that our strategic investments and our disciplined execution will further enhance our product offerings and customer experience, positioning us for another phase of industry-leading growth.

Todd: The total segment revenue grew 6% adjusted.

Todd Cello: Philippines growth remains strong while Hong Kong faces a softer economic backdrop we.

Todd: Adjusted EBITDA margin was 42, 7%.

We expect Asia Pacific to return to growth in the second half of the year.

Todd: Looking at the specifics for each region, India growth accelerated to 8% as anticipated and up from the 1% growth in the first quarter.

Todd Cello: Finally Africa increased 14% with broad based growth across financial services retail and insurance.

Todd: Commercial credit.

Todd: The consumer and new products like our API marketplace drove growth offsetting still muted consumer credit volumes.

Todd Cello: Turning to the balance sheet, we ended the quarter with $5 $1 billion of debt.

Greg Bardi: And with that, let me turn over the time to Greg.

Todd: Our U K business grew 5%.

Todd Cello: And $688 million of cash.

Greg Bardi: That concludes our prepared remarks.

Todd: Batch and online activity remained healthy for our largest banking customers and we continue to ramp new business wins across our verticals.

Operator: For the Q&A, we ask that you each ask only one question so that we can include more participants. Operator, we can begin the Q&A.

Todd Cello: Our leverage ratio at quarter end was two eight times.

Todd Cello: We have repurchased $47 million in shares year to date through mid July.

Operator: We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Todd: In Canada, we grew 10% and a muted market, we drove growth through sales of our innovative fraud identity and consumer indirect solutions share gains across financial services auto and insurance.

Todd Cello: In line with our balanced approach to capital deployment.

Todd Cello: We remain focused on delevering to under two five times leverage ratio.

Operator: If at any time your question has been addressed and you would like to withdraw it, please press star then two.

Todd Cello: Throughout the remainder of the year, we plan to balance debt prepayment and share repurchases based on market conditions.

Operator: At this time, we will pause momentarily to assemble our roster. And as a final reminder, we ask that you keep your questions to one at a time.

Todd: And increased portfolio review batch activity.

Todd: We also benefited from some one time revenues in the quarter.

Todd Cello: We also plan to preserve capital ahead of our Transunion to Mexico acquisition, which we expect will close by year end.

Todd: In Latin America revenue grew 4%.

Faiza Alwy: Our first question. comes from Faiza Alwy from Deutsche Bank. Hi, thank you. Good morning. Chris, you mentioned in your prepared remarks that, you know, across all lending types, you're outperforming the overall market driven by new business wins. And I'm curious, sort of, is this more customer mix, or is it related to some of the, you know, new technology and product innovation? Or, you know, something else you're doing, just would love a little bit more color. Yes, sure, Faiza. Well, I would say it's a combination. On the customer mix side, you know, consumer lenders have come back strong in recent quarters as we expected.

Todd: With modest growth in Colombia, and Brazil, and high single digit growth in our other Latin American countries.

Todd Cello: Turning to guidance as Chris mentioned, we are raising our guidance for the full year, primarily to account for a strong first half results as well as continued business momentum.

Todd: In Asia Pacific, We declined 8% as we lapped onetime consulting revenue in the prior year.

Todd Cello: Even with the guidance raise we maintained a prudently conservative posture for the remainder of the year to account for ongoing market uncertainty.

Todd: Philippines growth remained strong while Hong Kong faces a softer economic backdrop.

Todd: We expect Asia Pacific to return to growth in the second half of the year.

Todd Cello: We believe we can manage some level of U S lending activity softening.

Todd: Finally Africa increased 14% with broad based growth across financial services retail and insurance.

Todd Cello: Within our guidance range.

Todd Cello: Should current conditions persist, we would expect to deliver results at or above the high end of our guidance range.

Todd: Turning to the balance sheet, we ended the quarter with $5 $1 billion of debt and $688 million of cash.

Todd Cello: That brings us to our outlook for the third quarter.

Todd Cello: We expect FX to be less than half a percent headwind to revenue and adjusted EBITDA.

Todd: Our leverage ratio at quarter end was two eight times.

Chris Cartwright: Funding is flowing again to the space, and they're addressing an attractive market opportunity to consolidate revolving card balances at lower rates. It's what they're really good at. And as we know, consumer lending, Fintech in particular, was really bruised during the market slowdown in 22 and 23. But now they're back, and they're back in force. And it's going to benefit us disproportionately because we have very large share there. We are comfortably above two-thirds of the market in terms of market share. And they have a standout quarter, and they've got good momentum. I would say we're also selling into these financial services subcomponents, whether it's mortgage, consumer lending, card, auto, a broad array of products.

Todd: We have repurchased $47 million in shares year to date through mid July.

Todd Cello: Spectrum in Evo acquisition to add a percent to revenue.

Todd: In line with our balanced approach to capital deployment.

Todd Cello: We expect revenue to be between 1115, and $1.135 billion or up 2% to 4% on an organic constant currency basis.

Todd: We remain focused on delevering to under two five times leverage ratio.

Todd: Throughout the remainder of the year, we plan to balance debt prepayment and share repurchases based on market conditions.

Todd Cello: These growth rates include a 4% headwind from lapping the large breach remediation win in last year's third quarter.

Todd: We also plan to preserve capital ahead of our Transunion de Mexico acquisition, which we expect will close by year end.

Todd Cello: Excluding the breach comparison, our organic constant currency growth guidance would be 6% to 8%.

Todd: Turning to guidance as Chris mentioned, we are raising our guidance for the full year, primarily to account for a strong first half results as well as continued business momentum.

Todd Cello: Our revenue guidance includes approximately two points of tailwind from mortgage.

Todd Cello: In the third quarter, we expect mortgage inquiries to decline modestly.

Todd: Even with the guidance raise we maintained a prudently conservative posture for the remainder of the year to account for ongoing market uncertainty.

Todd Cello: We expect adjusted EBITDA to be between 397 and $411 million up 124%.

Chris Cartwright: Remember, these are market segments for us. They're not products. So, yes, we're selling credit and credit analytics, but we're also selling trusted call solutions. We're selling marketing solutions. In particular, you know, in the auto vertical, we posted really great growth in the second quarter. Less than half of that was the price benefit from the score price increases, and it was just a little bit from volume. The rest of it is coming from the performance of our product suite in the auto segment. So, I think it's an important thing to mention there.

Todd Cello: We expect adjusted EBITDA margin of 35, six to 36, 2% down 10% to 70 basis points.

Todd: We believe we can manage some level of U S lending activity softening.

Todd: Within our guidance range.

Todd: Should current conditions persist, we would expect to deliver results at or above the high end of our guidance range.

Todd Cello: Our margin expectation for the third quarter is consistent with our results in the first half of the year as well as our expectation for the full year.

Todd: That brings us to our outlook for the third quarter.

Todd Cello: We expect our adjusted diluted earnings per share to be between 99 and $1 four.

Todd: We expect FX to be less than halfway percent headwind to revenue and adjusted EBITDA.

Todd Cello: Down 5%.

Todd Cello: Flat.

Todd: We expect from an Evo acquisition to add a percent to revenue.

Todd Cello: Turning to the full year, we anticipate FX to be less than a half 8% headwind to revenue and adjusted EBITDA and the <unk> acquisition to contribute half a percent to revenue.

Todd: We expect revenue to be between 1115, and $1.135 billion or up 2% to 4% on an organic constant currency basis.

Chris Cartwright: But look, we've got good momentum in financial services, as you can see from Q2 and the whole first half, and that's allowed us to raise the guide materially for the year while still maintaining a very conservative posture.

Todd Cello: We expect revenue of between $4 432.

Todd: These growth rates include a 4% headwind from lapping the large breach remediation win in last year's third quarter.

Todd Cello: And for $4 $72 billion, we expect organic constant currency revenue growth of 6% to 7% an increase from our prior guidance of four 5% to 6%.

Andrew Steinerman: The next question comes from Andrew Steinerman of J.P. Morgan. Please go ahead. Hi. Just two quick questions. One, you know, I definitely noted the momentum at Factor Trust and other, you know, kind of alternative bureaus in the marketplace. Could you just, you know, give us a comment of why there's good momentum right now to the alternative, you know, data bureaus? And is that tied to stronger P-loan growth?

Todd: Excluding the breach comparison, our organic constant currency growth guidance would be 6% to 8%.

Todd Cello: Including mortgage we expect organic constant currency growth of 4% to 5%.

Todd: Our revenue guidance includes approximately two points of tailwind from mortgage.

Todd Cello: These growth rates include a 1% headwind from lapping the large breach win from last year's third quarter.

Todd: In the third quarter, we expect mortgage inquiries to decline modestly.

Todd Cello: Specific to our segment organic constant currency assumptions, we expect U S markets to grow mid single digit both including and excluding mortgage.

Todd: We expect adjusted EBITDA to be between 397 and $411 million up 124%.

Chris Cartwright: And then let me just give you my second question. About the Mexico acquisition, you know, how is that asset performing now? And just remind us why it takes kind of a longer period of time to close. meaning longer than a traditional U.S. act. Yeah, for sure, Andrew. Okay, so regarding alternative credit data, of which FactorTrust is a market leader, you know, for us, it's really a story of replatforming and innovation, and then relaunching FactorTrust. You know, we acquired FactorTrust some years ago, it's a great data set with good coverage, but it was on an antiquated technology platform.

Todd: We expect adjusted EBITDA margin of $35 six to 36, 2% down 10% to 70 basis points.

Todd Cello: We anticipate financial services to be up low double digits or high single digit excluding mortgage.

Todd Cello: We expect mortgage revenue to increase by over 20% against modest declines in mortgage inquiries.

Todd: Our margin expectation for the third quarter is consistent with our results in the first half of the year as well as our expectation for the full year.

Todd Cello: We expect emerging verticals to be up mid single digits.

Todd: We expect our adjusted diluted earnings per share to be between 99 cents and a dollar for.

Todd Cello: We anticipate consumer interactive decreasing low single digit, but increasing low single digit when excluding the impact of last year's large breach win.

Todd: Down 5% to.

Todd: Flat.

Todd: Turning to the full year, we anticipate FX to be less than a half 8% headwind to revenue and adjusted EBITDA and then when evil acquisition to contribute half a percent to revenue.

Todd Cello: We anticipate international growing high single digit.

Chris Cartwright: And so we prioritized moving it to One True. In the process of replatforming it on One True, you know, one, of course, we did prove out that we could handle, you know, credit at volume with real-time reporting and the various complexities on the One True platform. But we also considerably innovated on the analytics side. We implemented a better identity spine underpinning the data, we added a lot of data attributes, we enabled our TrueIQ analytics solution for more rapid modeling, and as a result, we're just winning more business with FactorTrust than we did previously. And we have a very robust pipeline.

Todd Cello: Turning back to the total company outlook.

Todd Cello: We expect adjusted EBITDA to be between 1.58, and $1 six $1 billion up 5% to 7% an increase from our prior guidance of 3% to 6% that.

Todd: We expect revenue of between $4 432.

Todd: And for $4 $72 billion, we expect organic constant currency revenue growth of 6% to 7% an increase from our prior guidance of 4.5% to 6%.

Todd Cello: That would result in an adjusted EBITDA margin of 35, seven to 36, 8% down 30 basis points to flat.

Todd: Including mortgage we expect organic constant currency growth of 4% to 5%.

Todd Cello: We anticipate adjusted diluted earnings per share to be $4 <unk> to $4 14.

Todd: These growth rates include a 1% headwind from lapping the large breach win from last year's third quarter.

Todd Cello: Up 3% to 6%.

Todd Cello: Also an increase from prior guidance of flat to 4% growth.

Todd: Specific to our segment organic constant currency assumptions, we expect U S markets to grow mid single digit both including and excluding mortgage.

Todd Cello: Our expected adjusted diluted earnings per share growth reflects strong underlying performance.

Chris Cartwright: So I think the momentum at FactorTrust is going to continue. Perhaps we're getting some benefit, you know, selling it as an add-on into some of these other segments. Consumer lenders are, you know, The fintech guys do like this alternative data. Anybody with a subprime focus is also interested in the subprime data. And we posted some nice sales factor trust in the auto vertical as well.

Todd: We anticipate financial services to be up low double digits or high single digit excluding mortgage.

Todd Cello: <unk> is inclusive of a 400 basis point headwind.

Todd Cello: Foreign exchange and a higher tax rate in 2025.

Todd: We expect mortgage revenue to increase by over 20% against modest declines in mortgage inquiries.

Todd Cello: We expect depreciation and amortization to be approximately $570 million, we expect the portion excluding step up amortization from our 2012 change in control and subsequent acquisitions to be about $285 million as technology modernization initiatives go into production and <unk>.

Todd: We expect emerging verticals to be up mid single digits.

Todd: We anticipate consumer interactive decreasing low single digit, but increasing low single digit when excluding the impact of last year's large breach win.

Chris Cartwright: Now, in terms of the time for Mexico, or just the performance, the asset continues to perform well, it's on plan, and we're still on plan in terms of clearing, you know, the government review and regulatory hurdles to closing the acquisition. We are targeting and hoping to close the deal before the end of the year. And look, you know, some of this just takes a bit of time. But, you know, the fact that it takes time shouldn't raise any concerns. That's just the operating standard in Mexico. But we're getting a great asset at a really fair price.

Todd: We anticipate international growing high single digit.

Todd Cello: Our to depreciate.

Todd Cello: We now anticipate net interest expense will be about $200 million for the full year.

Todd: Turning back to the total company outlook.

Todd Cello: We expect our adjusted tax rate to be approximately 26, 5% cap.

Todd: We expect adjusted EBITDA to be between 1.58, and $1 six $1 billion up 5% to 7% an increase from our prior guidance of 3% to 6% that.

Todd Cello: Capital expenditures are expected to be about 8% of revenue.

Todd Cello: We continue to expect to incur $100 million to $120 million in one time charges in 2025 related to the last year of our transformation program given.

Todd: That would result in an adjusted EBITDA margin of $35 seven to 36, 8% down 30 basis points to flat.

Todd Cello: Given those investments, we expect our free cash flow conversion as a percentage of adjusted net income to be 70% in 2025 before improving to 90% plus in 2026.

Chris Cartwright: And we're gonna bring a ton of innovation to the Mexican market that I think is gonna, you know, increase the growth rate for many years to come.

Todd: We anticipate adjusted diluted earnings per share to be $4 <unk> to $4 14 up 3% to 6%.

Todd: Also an increase from prior guidance of flat to 4% growth.

Jeff Mueller: Our next question comes from Jeff Mueller of Baird. Please go ahead. Yeah, thank you.

Todd Cello: In closing we delivered strong results and are quickly approaching a period in 2026 and beyond that we believe we will see stronger free cash flow generation and a leverage ratio within our target range. This will enable disciplined and shareholder friendly deployment of capital similar to our.

Todd: Our expected adjusted diluted earnings per share growth reflects strong underlying performance.

Chris Cartwright: So on the CI freemium and marketplace rollout, it sounds like it's a little bit staggered, or there's kind of like a beta period. So what are the most important initial learnings? And then what's the timeline to more fully integrate capabilities and build out marketplace? And then I guess, finally, are you willing to share anything on what you now expect intermediate term for growth out of the consumer interactive business? Thank you. Yeah, yeah, for sure.

Todd: <unk> is inclusive of a 400 basis point headwind.

Todd: Foreign exchange and a higher tax rate in 2025.

Todd: We expect depreciation and amortization to be approximately $570 million, we expect the portion excluding step up amortization from our 2012 change in control and subsequent acquisitions to be about $285 million as technology modernization initiatives go into production and <unk>.

Todd Cello: Throughout the first half of the year.

Chris Cartwright: I will now turn the call back to Chris for final comments.

Chris Cartwright: Thanks, Todd and.

Speaker Change: In summary, we delivered a robust second quarter, surpassing our guidance across all key financial metrics and marking our sixth consecutive quarter of high single digit organic revenue growth.

Chris Cartwright: So look, it was a solid quarter for the consumer segment overall. The direct business and the indirect business both grew low single digits. As you know, and everybody on the call knows, we've been investing heavily in this space for several years now, to add the capabilities that you need to, you know, to grow in this current environment. We've launched our new freemium solution. That means new user interface. integrating subscription offerings, and integrating a full complement of consumer loan offers, as well as identity protection and breach remediation. You know, we exited the beta period in the first quarter.

Speaker Change: Based on our strong performance in the first half of the year and sustained business momentum, we're raising our 2025 guidance now anticipating 6% to 7% organic constant currency revenue growth.

Todd: Our to depreciate.

Todd: We now anticipate net interest expense will be about $200 million for the full year.

Todd: We expect our adjusted tax rate to be approximately 26, 5% cap.

Speaker Change: And we continue to make substantial progress toward our strategic priorities.

Todd: Capital expenditures are expected to be about 8% of revenue.

Speaker Change: Following several years of investment our current focus is on execution and value creation.

Todd: We continue to expect to incur $100 million to $120 million in one time charges in 2025 related to the last year of our transformation program given.

Speaker Change: Our growth playbook, which has historically emphasize differentiated vertical market engagement and geographic expansion has driven our industry leading growth over the past decade.

Todd: Given those investments, we expect our free cash flow conversion as a percentage of adjusted net income to be 70% in 2025 before improving to 90% plus in 2026.

Speaker Change: As a result of our transformation we are equipped with an expanded suite of solutions for our customers.

Chris Cartwright: In the second quarter, we've been converting our core customer base, and we're probably plus 75% at this point, and we're converting over the offer inventory to the new platform, and that's probably at 75% or 80% too. But you know, right away, you can see that it's going to have a positive impact on the growth rates of the business, particularly on the direct side where, you know, we've been working hard to mitigate the decline. I think, you know, we've got that behind us now, and our goal is to kind of stabilize this low single-digit growth in the coming quarters.

Speaker Change: Innovation is an increasingly central component of our growth playbook, complementing our established vertical and geographic strategies.

Todd: In closing we delivered strong results and are quickly approaching a period in 2026 and beyond that we believe we will see stronger free cash flow generation and a leverage ratio within our target range. This will enable disciplined and shareholder friendly deployment of capital similar to our.

Speaker Change: We are confident that our strategic investments and our disciplined execution will further enhance our product offerings and customer experience positioning us for another phase of industry leading growth.

Todd: Throughout the first half of the year.

Speaker Change: And with that let me turn over the time to correct.

Chris: I will now turn the call back to Chris for final comments.

Speaker Change: That concludes our prepared remarks for the Q&A, we ask that you each ask only one question. So that we can include more participants operator, we can begin the Q&A.

Chris: Thanks, Todd and.

Chris: In summary, we delivered a robust second quarter, surpassing our guidance across all key financial metrics and marking our sixth consecutive quarter of high single digit organic revenue growth.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys. If at any time. Your question has been addressed and you would like to withdraw. It. Please press Star then two at this time, we will pause momentarily to assemble our roster and has a five.

Chris Cartwright: As we start to optimize these different elements that we've got now, offers, freemium, an integrated offering of subscription, freemium, breach, all of these things coming together, you know, the interplay, we're going to be optimizing our marketing, optimizing our customer flows and conversion, if you will, the pricing, all of this stuff. And then look, over time, we're going to bring more and more lenders. and AuthorTypes. onto the platform. It won't be so card focused. There'll be a lot of different opportunities for consumers to engage with TransUnion in a freemium way and get the full range of consumer lending and insurance offers and other opportunities there.

Chris: Based on our strong performance in the first half of the year and sustained business momentum, we're raising our 2025 guidance now anticipating 6% to 7% organic constant currency revenue growth.

Chris: And we continue to make substantial progress toward our strategic priorities.

Speaker Change: Anil reminder, we ask that you can.

Speaker Change: Keep your questions to one at a time.

Chris: Following several years of investment our current focus is on execution and value creation.

Speaker Change: Our first question.

Speaker Change: Comes from Faiza <unk> from Deutsche Bank.

Chris: Our growth playbook, which has historically emphasize differentiated vertical market engagement and geographic expansion has driven our industry leading growth over the past decade.

Speaker Change: Please go ahead.

Speaker Change: Hi, Thank you good morning.

Speaker Change: Chris You mentioned in your prepared remarks that you know across all lending type C are outperforming the overall market driven by new business wins and I'm curious sort of is this more customer mix or is it related to some of the new technology and product.

Chris: As a result of our transformation. We are equipped with an expanded suite of solutions for our customers product innovation is an increasingly central component of our growth playbook complementing our established vertical and geographic strategies.

Chris Cartwright: And in terms of the guide, look, right now, you know, we're just executing on a whole bunch of goodness, bringing it together and returning this, you know, $600 million chunk of business to consistent growth. In the intermediate term, mid-single-digit growth, and I think once we're firing on all cylinders, we would expect to push even beyond mid-single-digit. So hopefully that clarifies.

Chris: We are confident that our strategic investments in our disciplined execution will further enhance our product offerings and customer experience positioning us for another phase of industry leading growth.

Speaker Change: Innovation.

Speaker Change: Or something else Youre doing just a little bit more color there.

Speaker Change: Yes, sure Faiza, well I would say, it's a combination of some of those elements.

Greg: And with that let me turn over the time to Greg.

Speaker Change: On the customer mix side.

Greg: That concludes our prepared remarks for the Q&A, we ask that you each ask only one question. So that we can include more participants operator, we can begin the Q&A.

Speaker Change: Consumer lenders have come back strong in recent quarters as we expected.

Toni Kaplan: The next question comes from Toni Kaplan of Morgan Stanley. I was hoping to talk about the consumer lending environment. I think late last year and early this year you had talked about it being a stable but muted environment. Now it seems like you're saying it's a little bit better than expected and better than that. And when I look at U.S. financial services, you grew double-digit, ex-mortgage. So just, it sounds like you're still being a little bit cautious on how the environment plays out just with potential for deficits and inflation and that potentially impacting lending. But maybe just talk through, you know, where you, like, how much better is it now?

Speaker Change: The funding is flowing again to the space and they are addressing an attractive market opportunity to consolidate revolving card balances at lower rates.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys. If at any time. Your question has been addressed and you would like to withdraw. It. Please press Star then two at this time, we will pause momentarily to assemble our roster and as a final rule.

Speaker Change: They're really good at and as we know consumer lending Fintech in particular was a really bruised during the market slowdown in 'twenty, two and 23, but now they are back and they're back in force.

Speaker Change: Wonder we ask that you keep your questions to one at a time.

Speaker Change: Benefit us disproportionately because we have very large share there.

Speaker Change: We are comfortably above two thirds of the market in terms of market share.

Speaker Change: Our first question.

Faiza: Comes from Faiza <unk> from Deutsche Bank.

Speaker Change: And they had a standout quarter and they've got good momentum.

Faiza: Please go ahead hi, Thank you good morning.

Speaker Change: I would say.

Faiza: Chris You mentioned in your prepared remarks that you know across all lending type C are outperforming the overall market driven by new business wins.

Speaker Change: We're also selling into these financial services sub components, whether it's mortgage consumer lending card auto.

Chris Cartwright: Where do you think for the remainder of the year we sort of are in terms of market strength and into next year? And just the puts and takes around all of that.

Speaker Change: A broad array of products remember these are market segments for us they're not products. So, yes, we're selling credit and credit analytics.

Faiza: I'm curious sort of is this more customer mix or is it related to some of the new technology and product innovation.

Speaker Change: But we're also selling trusted call solutions, we're selling marketing solutions in particular.

Chris Cartwright: Thanks. Yeah, well, we'll give you some flavor there around financial services. So, you know, yes, it's stable but muted. I think that's a fair assessment, although perhaps a little bit less so than it has been in recent quarters. I mean, as you can see, consumer lending is coming back, and I've already talked about that opportunity. CARD is still a more tempered environment, kind of flattish online volumes. We are selling in, you know, alternative data and trusted call solutions into CARD. You know, the big banks all reported over the past couple of weeks, and their commentary on CARD was a bit more optimistic, I think, than we've seen, and we're starting to see some nice positive batch activity in CARD, which means CARD lenders are moving more toward, you know, the front foot, if you will, which is good.

Faiza: Or something else Youre doing just went up a little bit more color there.

Speaker Change: The auto vertical.

Faiza: Yeah, sure Faiza, well I would say, it's a combination of some of those elements on the customer mix side.

Speaker Change: We posted really great growth in the second quarter less than half of that was the price benefit.

Speaker Change: From the score price increases.

Faiza: Consumer lenders have come back strong in recent quarters as we expected.

Speaker Change: And it was just a little bit from volume the rest of it is coming from the performance of our product suite in the auto segment.

Faiza: Funding is flowing again to the space and they're addressing an attractive market opportunity to consolidate revolving card balances at lower rates.

Speaker Change: I think it's an important thing to mention there, but look we've got good momentum in financial services as you can see from Q2 and the whole first half.

Faiza: They're really good at and as we know consumer lending Fintech in particular was a really bruised during the market slowdown in 'twenty, two and 23, but now they are back and they're back in force.

Speaker Change: And that's allowed us to raise the guide materially for the year.

Speaker Change: While still maintaining a very conservative posture.

Speaker Change: The next question comes from Andrew Steinman of Jpmorgan. Please go ahead.

Faiza: It's going to benefit us disproportionately because we have very large share there.

Faiza: We are comfortably above two thirds of the market in terms of market share.

Speaker Change: Hi, just two quick questions one.

Chris Cartwright: But, you know, it's far short of saying, you know, happy days are here again. You know, auto I talked about. The volumes are still net positive a bit. A lot of that is the pull forward because of tariff fears, but we're selling a lot of products into the auto vertical, which is great and driving our revenue growth. And look, mortgage is bouncing along what I think is a bottom. You know, this is kind of like, you know, industry existential volume levels. The tenure rates, you know, remain elevated. And they're still I don't know, kind of neutral in terms of whether they're going to go up or they're going to go down.

Speaker Change: Definitely noted.

Speaker Change: The momentum at factor track, another kind of alternative bureaus in the market right.

Faiza: And they had a standout quarter and they've got good momentum.

Faiza: I would say.

Speaker Change: Give us a comment of why Theres good momentum right now to the alternative data bureaus and does that tie to stronger loan.

Faiza: We're also selling into these financial services sub components, whether it's mortgage consumer lending card auto a broad array of products.

Speaker Change: Loan growth and then let me just give you my second question.

Speaker Change: About.

Faiza: These are market segments for us, they're not products. So, yes, we're selling credit and credit analytics.

Speaker Change: Mexico acquisition, how is that asset performing now and just remind us why it takes kind of a longer period of time to close.

Faiza: But we're also selling trusted call solutions for selling marketing solutions in particular.

Speaker Change: I mean longer than a traditional U S acquisition.

Faiza: In the auto vertical.

Andrew Steinman: Yeah for sure Andrew.

Faiza: We posted really great growth in the second quarter less than half of that was the price benefit.

Andrew Steinman: So regarding alternative credit data of which factor trust as a market leader.

Chris Cartwright: We're going to have to see how that plays out. And so I don't expect a big refinance boom to happen anytime soon. And asset affordability is still a challenge because of the supply side of the housing equation. But what this really shows is, one, as an industry, we're trading on rather tempered volume levels because of all of the rate increases that happen in the 22, early 23 time period, as we've said. And so if you get just a little perk up in volume activity, you get nice growth rates. It also speaks to the portfolio diversification that we have achieved.

Andrew Steinman: For us it's really.

Faiza: From the score price increases.

Andrew Steinman: A story of re platforming and innovation and then Relaunching factor Trust.

Faiza: And it was just a little bit from volume the rest of it is coming from the performance of our product suite in the auto segment.

Andrew Steinman: Acquired factor Trust some years ago, it's a great dataset with good coverage, but it was on an antiquated technology platform.

Faiza: So I think it's an important thing to mention there, but look we've got good momentum in financial services as you can see from Q2 and the whole first half.

Andrew Steinman: We prioritize moving it to one true in the process of re platforming it on one true.

Andrew Steinman: One of course, we did prove out that we could handle.

Faiza: That's allowed us to raise the guide materially for the year.

Andrew Steinman: Credit add volume with real time reporting and the various complexities on the one true platform, but we also considerably innovated on the analytics side.

Faiza: While still maintaining a very conservative posture.

Speaker Change: The next question comes from Andrew Steinman of J P. Morgan. Please go ahead.

Andrew Steinman: We.

Andrew Steinman: <unk>.

Andrew Steinman: <unk>.

Andrew Steinman: Hi, just two quick questions one I definitely noted.

Chris Cartwright: Again, when we talk about consumer lending or car or auto, these are market segments. We're not just selling credit products. We're selling analytics. We're selling alternative data, marketing fraud. phone solutions, et cetera, right? And the breadth of the offering is appealing and we're putting good points on the board.

Andrew Steinman: A better identity spine underpinning the data we added a lot of data attributes.

Andrew Steinman: Momentum at factor track and other kind of alternative bureaus in the market right could you just give us a comment of why theres. Good momentum right now to the alternative data bureaus and does that tie to stronger loan.

Andrew Steinman: We enabled our true IQ.

Andrew Steinman: Analytics solution for more rapid modeling and as a result, we're just winning more business with factor trust than we did previously and we have a very robust pipeline. So I think the momentum factor trust is going to continue.

Andrew Steinman: Loan growth and then let me just give you my second question.

Andrew Steinman: About.

Andrew Steinman: Mexico acquisition, how is that asset performing now and just remind us why it takes kind about longer period of time to close.

Manav Patnaik: The next question comes from Manav Patnaik of Barclays. Please go ahead. Thank you.

Andrew Steinman: Perhaps we're getting some benefit selling it as an add on into some of these other segments consumer lenders are.

Chris Cartwright: Yeah, I was just hoping for maybe a quick update on your FinTech, you know, exposure, how that's performing, you know, some of this positive business momentum they're talking about, you know, how much of that is from that customer category. Sure. You know, so, Manav, I've touched a couple of times on consumer lending. And while the categories are broader than just FinTech, FinTechs are an important part of that. And as you can see from, you know, the results of the larger players, they're doing much better. In fact, they've recovered, you know, the stability that we see in the market environment, even at an elevated interest rate, allows funding to flow back into the market.

Andrew Steinman: Longer than a traditional U S acquisition.

Andrew Steinman: Yeah for sure Andrew Okay. So regarding alternative credit data of which factor trust as a market leader.

Andrew Steinman: <unk>.

Andrew Steinman: No.

Andrew Steinman: The Fintech guys do like this alternative data.

Andrew Steinman: With the subprime focus is also interested in the subprime data and we've posted some nice sales of <unk>.

Andrew Steinman: For us, it's really a story of re platforming and innovation and then Relaunching factor Trust.

Andrew Steinman: Factor Trust in the auto vertical as well now in terms of the time for Mexico or just the performance of the asset continues to perform well. It's on plan and we're still on plan in terms of clearing the government review and regulatory hurdles to closing the acquisition.

Andrew Steinman: Acquired factor Trust some years ago, it's a great dataset with good coverage, but it was on an antiquated technology platform.

Andrew Steinman: We prioritize moving it to one true in the process of re platforming it on one true.

Andrew Steinman: One of course, we did prove out that we could handle.

Andrew Steinman: We are targeting and hoping to close the deal before the end of the year and look some of this just takes a bit of time.

Andrew Steinman: Credit add volume with real time reporting and the various complexities on the one true platform, but we also considerably innovated on the analytics side.

Chris Cartwright: And that takes care of the supply side of things. The demand side is good, because, you know, during the COVID era, when credit scores, you know, artificially were inflated, a lot of cards were issued to a lot of consumers that might not have qualified for them previously. And they took advantage of that. And they levered up in the revolving those balances. And that creates a great demand side opportunity for loan consolidation. So, we're definitely seeing, you know, a pickup in fintech within consumer lending.

Andrew Steinman: But the fact that it takes time shouldnt raise any concerns that's just the operating standard in Mexico, but we're getting a great asset.

Andrew Steinman: We we implemented.

Andrew Steinman: A better identity spine underpinning the data we added a lot of data attributes.

Andrew Steinman: A really fair price.

Andrew Steinman: And we're going to bring a ton of innovation to the Mexican market that I think is going to.

Andrew Steinman: We enabled our true IQ analytics solution for more rapid modeling and as a result, we're just winning more business with factor trust than we did previously and we have a very robust pipeline. So I think the momentum in fact your trust is going to continue.

Andrew Steinman: Sustain and increase the growth rate for many years to come.

Jeff Mueller: Our next question comes from Jeff Mueller of Baird. Please go ahead.

Jeff Mueller: Yes. Thank you so on the Ci freemium and market place rollout it sounds like it's a little bit staggered or there is kind of like a beta period.

Chris Cartwright: But look, I just want to emphasize, it's more than just consumer lending. The growth is great. We expect it to continue, but we're really doing... Solid performance across all of the financial services subcategories.

Andrew Steinman: Perhaps we're getting some benefit selling it as an add on into some of these other segments consumer lenders are.

Jeff Mueller: So what are the most important initial learnings and then what's the timeline to more fully integrated capabilities and build out marketplace.

Andrew Steinman: Sure.

Andrew Steinman: The Fintech guys do like this alternative data anybody with the subprime focus is also interested in the subprime data and we've posted some nice sales of factor trust in the auto vertical as well now in terms of the time for Mexico or just the performance of the asset continues to perform.

Jeff Mueller: And then I guess finally are you willing to share anything on what you now expect intermediate term for growth out of the consumer interactive business. Thank you.

Ashish Sabadra: Our next question comes from Ashish Sabadra of RBC Capital Markets. Please go ahead.

Jeff Mueller: Yes, yes for sure.

Jeff Mueller: So look it was a solid quarter for the consumer.

Operator: Apologies Ashish, I seem to have lost your line.

Well, it's on plan and we're still on plan in terms of clearing the government review and regulatory hurdles to closing the acquisition. We are we are targeting and hoping to close the deal before the end of the year and and look you know some of this just takes a bit of time, but.

Jeff Mueller: <unk> segment overall.

Scott Wurtzel: We will be going with the next question answerer, Scott Wurtzel from Wolf Research. Please go ahead. Hey, good morning, guys. Thank you for taking my question. I just wanted to touch on the mortgage side and specifically on the prequal environment and just wondering if you could speak to what you're seeing in the market from general shopping activity to also the competitive dynamics in that space. Thanks.

Jeff Mueller: The direct business and the indirect business both grew low single digits.

As you know and everybody on the call knows we've been investing heavily in this space for several years now to add the capabilities that you need to do to.

Jeff Mueller: To grow.

Jeff Mueller: In this current environment.

Andrew Steinman: The fact that it takes time shouldnt raise any concerns that's just the operating standard in Mexico, but we're getting a great asset.

Jeff Mueller: We've launched our new freemium solution that means new user interface.

Jeff Mueller: Integrating subscription offerings.

Todd Cello: Hey Scott, good morning. Thanks, thanks for the question. I'll jump in here with that. As far as, you know, mortgage is concerned, I think, you know, what we've been pleased with the performance that we've seen, you know, to date, you know, in general, through the first half inquiries have been in line. And as a reminder, when we, you know, talk about our inquiries, we're talking about pre-qualification as well as tri-merge. So, in the second quarter, in particular, we were roughly flat. And this goes to what Chris just said in a previous response to there's, we believe we're at a bottom here and that there should be, you know, upside in the space.

Jeff Mueller: And integrating a full complement of alone of consumer loan offers as well as identity protection and breach remediation.

Andrew Steinman: At a really fair price.

Andrew Steinman: And we're going to bring a ton of innovation to the Mexican market that I think is going to.

Andrew Steinman: Sustain and increase the growth rate for many years to come.

Jeff Mueller: We exited the beta period in the first quarter in the second quarter, we've been converting our core customer base, and we're probably plus 75%.

Jeff Mueller: Our next question comes from Jeff Mueller of Baird. Please go ahead.

Yes. Thank you so on the Ci freemium and market place rollout it sounds like it's a little bit staggered or there's kind of like a beta period.

Jeff Mueller: At this point.

Jeff Mueller: And we're converting over the offer inventory to the new platform and Thats, probably at 75% or 80% too.

Jeff Mueller: So what are the most important initial learnings and then what's the timeline to more fully integrated capabilities and build out marketplace.

Jeff Mueller: But right away you can see that it's going to have a positive impact on the growth rates of the business.

Jeff Mueller: Particularly on the direct side, where we've been working hard to mitigate the decline.

Jeff Mueller: Then I guess finally are you willing to share anything on what you now expect intermediate term for growth out of the consumer interactive business. Thank you.

Jeff Mueller: I think we've got that behind us now.

Todd Cello: The revenue that we saw did outperform specifically to your question due to pre-qualification. We have seen, you know, good traction with our customers, you know, in that space, especially after the change last year with the early access program. So, we've been able to maintain our position if not even gain, you know, on what we have there. But in mortgage, we've, you know, outside of just the pricing that we all know about, you know, and what drives the majority of the 29% revenue increase that we saw, we've also had some success selling other parts of our product portfolios, such as batch marketing, as well as trusted call solutions, which we obviously covered, you know, in depth, you know, on the call here today.

Jeff Mueller: Yes, yes for sure.

Jeff Mueller: And our goal is to kind of stabilize this low single digit growth in the coming quarters.

Jeff Mueller: So look it was a solid quarter for.

Jeff Mueller: As we start to optimize these different elements that we've got now offers freemium.

Jeff Mueller: The consumer segment overall.

Jeff Mueller: The direct business and the indirect business both grew low single digits.

Jeff Mueller: A integrated offering a subscription freemium breach all of these things coming together the interplay.

Jeff Mueller: As you know and everybody on the call knows we've been investing heavily in this space for several years now to add the capabilities that you need to do to grow.

Jeff Mueller: Be optimizing our marketing optimizing our customer flows and conversion if you will the pricing all of this stuff and then look over time, we're going to bring more and more lenders.

Jeff Mueller: In this current environment.

Jeff Mueller: We've launched our new freemium solution that means new user interface.

Jeff Mueller: And offer types.

Jeff Mueller: <unk> subscription offerings.

Jeff Mueller: Onto the platform it won't be so card focused there'll be a lot of different opportunities for consumers to.

Jeff Mueller: And integrating a full complement of <unk>.

Jeff Mueller: Loan of consumer loan offers as well as identity protection and breach remediation.

Jeff Mueller: <unk> engaged with Transunion, and our freemium way and get the full range of consumer lending and insurance offers and other opportunities there.

Jeff Mueller: We exited the beta period in the first quarter in the second quarter, we've been converting our core customer base, and we're probably plus 75%.

Jeff Mueller: And in terms of the guide look right now.

Jeff Mueller: We're just.

Todd Cello: So, as we, you know, move into the second half of the year, I mean, for all intents and purposes, you know, we're pretty much holding, you know, to the guidance that, you know, we've been providing thus far. So, that will call for the second half for inquiries to be down modestly and then for the full year also, you know, be down modestly as well, too.

Jeff Mueller: Executing on a whole bunch of goodness, bringing it together and returning this.

Jeff Mueller: At this point.

Jeff Mueller: And we're converting over the offer inventory to the new platform and that's probably at 75 or 80% too.

Jeff Mueller: $600 million chunk of business to consistent growth.

Jeff Mueller: In the intermediate term mid single digit growth and I think once we're firing on all cylinders.

Jeff Mueller: But you know right away you can see that it's going to have a positive impact on the growth rates of the business.

Jeff Mueller: We would expect to push even beyond mid single digits, so hopefully that clarifies.

Jeff Mueller: Particularly on the direct side, where you know we've been working hard to mitigate the decline.

Speaker Change: The next question comes from Toni Kaplan of Morgan Stanley.

Jeff Mueller: I think we've got that behind US now and our goal is to kind of stabilize this low single digit growth in the coming quarters as we start to optimize these different elements that we've got now offers freemium.

Speaker Change: Please go ahead.

Speaker Change: Yeah.

Ashish Sabadra: All right. Once again, I will introduce Ashish Sabadra of RBC Capital Markets as our next question asker. Please, go ahead. Thanks for taking my question. I just wanted to go back to India. Obviously, we saw some pretty material acceleration in India from 1Q to 2Q. You've talked about 20% plus growth over the midterm. I was just wondering if you could provide some color about the second half of the year. How should we think about the I just got back from a week in India. It was very exciting, invigorating, in fact. First, it's great to see the business pick up materially as it did, increasing from 1% to 8% organic.

Speaker Change: I was hoping to talk about the consumer lending environment.

Speaker Change: Last year and early this year, you talked about it being a stable, but muted environment now it seems like you're saying, it's a little bit better.

Jeff Mueller: Integrated offering of subscription freemium breach all of these things coming together the interplay.

Speaker Change: Expected and better than that and when I look at U S financial services grew double digit ex mortgage.

Jeff Mueller: We're gonna be optimizing our marketing optimizing our customer flows and conversion. If you will the pricing all of this stuff and then look over time, we're going to bring more and more lenders and.

Speaker Change: So just.

Speaker Change: Sounds like Youre still being a little bit cautious on how the environment plays out with.

Jeff Mueller: And offered types.

Jeff Mueller: Onto the platform it won't be so card focused there'll be a lot of different opportunities for consumers to engage.

Speaker Change: With potential for deficits and inflation and that potentially impacting lending, but maybe just talk through where you like how much better is it now where do you think further remainder of the year. When you sort of are in terms of market strength.

Jeff Mueller: <unk> with Transunion, and a freemium way and get the full range of consumer lending and insurance offers and and other opportunities there.

Chris Cartwright: I feel like consumer lending momentum is returning in that market as we expected. Now that the posture of the reserve bank is pivoted to balancing growth as well as safety and soundness. The team there is still confident that for the full year, we can hit a 10% growth rate. And that means by the fourth quarter, you know, we should be back to high teens organic growth. And then that sets us up to a return to, you know, probably low 20% kind of compounding and potentially better.

Jeff Mueller: And in terms of the guide look right now.

Jeff Mueller: We're just <unk>.

Jeff Mueller: Executing on a whole bunch of goodness, bringing it together and returning this.

Speaker Change: And into next year, and just the puts and takes around all of that.

Jeff Mueller: $600 million chunk of business to consistent growth.

Speaker Change: Yeah, well, we'll give you some flavor there around financial services, so, yes, it's stable but muted.

Jeff Mueller: In the intermediate term mid single digit growth and I think once we're firing on all cylinders.

Speaker Change: I think Thats a fair assessment.

Speaker Change: Although perhaps a little bit less so than it has been in recent quarters. I mean as you can see consumer lending is coming back and I've already talked about that opportunity.

Jeff Mueller: We would expect to push even beyond mid single digits, so hopefully that clarifies.

Speaker Change: The next question comes from Toni Kaplan of Morgan Stanley.

Speaker Change: Card is still a more tempered environment.

Speaker Change: Please go ahead.

Speaker Change: Kind of flattish online volumes and we are selling in alternative data and trusted call solutions in.

Toni Kaplan: I was hoping to talk about the consumer lending environment.

Chris Cartwright: You know, as I mentioned, I was over there because we were celebrating the 25th anniversary of our bureau over there. It's called Cibil. So, we're very excited about that. and I interacted with just a ton of CEOs and a ton of senior regulators. And they confirmed that because the actions of the RBI, they expect consumer lending to return, you know, full force over the next four quarters. And so that's in addition to this improvement in volume that translated into 8% growth for us in the second quarter. And look, the reasons are the RBI has cut rates by 100 biths already, very focused on stimulating economic growth.

Toni Kaplan: Late last year and early this year, you had talked about it being a stable, but muted environment now it seems like you're saying, it's a little bit better than that.

Speaker Change: New cards.

Speaker Change: The the big banks, all reported over the past couple of weeks and their commentary on card was a bit more optimistic I think than we've seen and we're starting to see some nice positive batch activity in card, which means card lenders are moving more toward the front foot. If you will which is good.

Toni Kaplan: Expected and better than that and when I look at U S financial services grew double digit ex mortgage.

Toni Kaplan: So just.

Speaker Change: But it's far short of saying happy days are here again.

Toni Kaplan: It sounds like yourself being a little bit cautious on how the environment plays out just.

Speaker Change: Auto I talked about.

Toni Kaplan: With potential for deficits and inflation.

Speaker Change: The volumes.

Speaker Change: Still.

Speaker Change: Net positive a bit a lot of that is the pull forward because of tariff fears, but we're selling a lot of products into the auto vertical which is great and driving our revenue growth.

Toni Kaplan: Potentially impacting lending, but maybe just talk through where you like how much better is it now where do you think for the remainder of the year, we sort of are in terms of market strength.

Chris Cartwright: Inflation is lower in India than it has been in quite a number of years. That's encouraging too. So that's part of the pro-growth stance. The RBI has also indicated that they're comfortable with the loan-to-deposit ratio in consumer lending currently and with the lending practices of certain, you know, key non-bank financial players who were sidelined over much of the past six quarters but have now come back into the market and are beginning to resume lending. And look, delinquencies overall are holding up nicely. They're manageable. They're within historical standards. So we're really setting up for the recovery in consumer lending in India that we expected.

Speaker Change: Look mortgages bouncing along what I think is a bottom.

Toni Kaplan: And into next year, and just the puts and takes around all of that.

Speaker Change: This is kind of like industry existential volume levels.

Speaker Change: Yeah, well, we'll give you some flavor there around financial services, so, yes, it's stable but muted.

Speaker Change: The 10 year rates remain elevated.

Speaker Change: There is still.

Speaker Change: You know I don't know what kind of neutral in terms of whether theyre going to go up or that theyre going to go down we're going to have to see how that plays out.

Speaker Change: I think thats, a fair assessment, although perhaps a little bit less so than it has been in recent quarters. I mean as you can see consumer lending is coming back and I've already talked about that opportunity.

Speaker Change: <unk>.

Speaker Change: And so I don't expect a big refinance boom to happen anytime soon in asset affordability is still a challenge because of the supply side of the housing equation.

Speaker Change: Card is still a more tempered environment.

Speaker Change: Kind of flattish online volume.

Chris Cartwright: It took about six quarters for India to slow down to, you know, to the bottom in Q1. It'll probably take about six quarters until they are fully back, rolling along, and we're two quarters in. But look, India represents an enormous long-term opportunity. What's exciting about being over there is regulators and lenders, they really appreciate the value of credit reporting agencies and having a foundation of objective and quantitative data to base their lending practices on. They've only had a functioning score in that market for about 20 years. And you know, these CEOs can tell you what it was like lending to consumers previously, which is they were very conservative.

Speaker Change: But what it really shows is one as an industry we're trading on <unk>.

Speaker Change: Our selling and alternative data and trusted call solutions.

Speaker Change: In the cards.

Speaker Change: Rather tempered volume levels.

Speaker Change: The the big banks, all reported over the past couple of weeks and their commentary on card was a bit more optimistic I think than we've seen and we're starting to see some nice positive batch activity in card, which means card lenders are moving more toward.

Speaker Change: Because of all of the rate increases that happen in the 'twenty two early 'twenty three time period, as we've said and so if you get just a little perk up and volume activity you get nice growth rates. It also speaks to the portfolio diversification that we've achieved again, when we talk about consumer lending.

Speaker Change: The front foot, if you will which is good.

Speaker Change: But it's far short of thing you know happy days are here again.

Speaker Change: Your card or auto these are market segments, we're not just selling credit products, we're selling analytics, we're selling alternative data marketing fraud.

Speaker Change: Auto I talked about.

Speaker Change: The volumes.

Speaker Change: Or still.

Speaker Change: Phone solutions et cetera, right and.

Speaker Change: Net positive a bit a lot of that is the pull forward because of tariff fears, but we're selling you know a lot of products into the auto vertical.

Speaker Change: The breadth of the offering is appealing and we're putting good points on the board.

Chris Cartwright: And they recognize that, you know, in working with us over this period, they've been able to bring, you know, literally hundreds of millions of Indian consumers into mainstream consumer finance. So financial inclusion has been great. That's helped drive their economic growth. And in addition to all the secular tailwinds of great demographics, further financial penetration potential, the continuing digitalization of, you know, commerce there and urbanization trends . There's a ton of growth opportunity. And we're maintaining our market share in the low 70s, which is great. We have a data quality advantage. And I think it sets us up for at least 20% compounding over the longer term.

Speaker Change: The next question comes from Manav Patnaik of Barclays. Please go ahead.

Speaker Change: Central volume levels.

Speaker Change: Yes.

Speaker Change: Yes, I was just hoping for maybe a quick update on your syntax.

Speaker Change: The 10 year rates remain elevated.

Speaker Change: And there's still.

Speaker Change: Exposure, how that's performing somewhat this positive business momentum that you're talking about.

Speaker Change: Don't know what kind of neutral in terms of whether theyre going to go up or they're going to go down we're going to have to see how that plays out.

Speaker Change: How much of that is from that customer category.

Speaker Change: And so I don't expect a big refinance boom to happen anytime soon in asset affordability is still a challenge because of the.

Speaker Change: Sure.

Speaker Change: So manav as I've touched a couple of times on consumer lending and while the category is broader than just fintech fintech are an important part of that.

Speaker Change: The supply side of the housing equation.

Speaker Change: But what it really shows is one as an industry we're trading on.

Speaker Change: As you can see from the results of the larger players they're doing much better in fact they've recovered.

Speaker Change: Rather tempered volume levels.

Speaker Change: Because of all of the rate increases that happened in the 'twenty two early 'twenty three time period, as we've said and so if you get just a little perk up and volume activity you get nice growth rates. It also speaks to the portfolio diversification that we've achieved again, when we talk about consumer Lin.

Speaker Change: Ability that we've seen in the market environment, even at an elevated interest rate.

Chris Cartwright: It's also a diversified portfolio with all this growth potential in consumer. Consumer is 60% of our revenues today. And there's a lot of opportunity for innovation there in microfinance, agri-lending, lending to small and medium businesses. Plus we're setting up to bring marketing and fraud solutions to India on One True. And we just launched the TrueIQ analytics platform there and completed our first innovation lab. And there's an enormous appetite for more analytics in the Indian market. You know, we partnered with this customer, we earned several hundred thousand dollars worth of consulting fees. Now we've got their data business, you know, for the long term, and there's great potential.

Speaker Change: Allows funding to flow back into the market and that takes care of the supply side of things the demand side is good because <unk>.

Speaker Change: During the Covid era when.

Speaker Change: When credit scores artificially inflated.

Speaker Change: And your card or auto these are market segments, we're not just selling credit products, we're selling analytics, we're selling alternative data marketing fraud.

Speaker Change: A lot of cards were issued through a lot of consumers that might not have qualified for them previously and they took advantage of that and they levered up and their revolving those balances and that creates a great demand side opportunity for loan consolidation.

Speaker Change: Phone solutions et cetera, right and.

Speaker Change: The breadth of the offering is appealing and we're putting good points on the board.

Speaker Change: So we're definitely seeing a pickup it fintech within consumer lending, but look I just want to emphasize it's more than just consumer lending. The growth is great. We expect it to continue but we're really doing.

Speaker Change: The next question comes from Manav Patnaik of Barclays. Please go ahead.

Manav Patnaik: Thank you Yeah I was just hoping for maybe a quick update on your syntax.

Chris Cartwright: And I guess the last thing I would say is, look, I had the privilege of meeting with the governor of the Reserve Bank of India while I was there, my team and I, and really their focus is all about how they can bring more of the Indian population into the mainstream lending economy. While they're pleased that there are now hundreds of millions of folks participating in that, there are still hundreds of millions of people, particularly in rural areas, that want access to capital on more favorable terms. And they want to understand how they can leverage all of this alternative data that they've created with their federal registry for, you know, for wealth, for real estate, for the data that's flowing through their universal payment interface, and we're positioned to help them think through the opportunity and partner on the execution.

Speaker Change: Solid performance across all of the financial services sub categories.

Manav Patnaik: <unk>, how that's performing somewhat this positive business momentum that you're talking about.

Manav Patnaik: How much of that is from that customer category.

Speaker Change: Our next question comes from Ashish <unk> of RBC capital markets.

Manav Patnaik: Sure.

Manav Patnaik: So manav as I've touched a couple of times on consumer lending.

Speaker Change: Please go ahead.

Manav Patnaik: While the category is broader than just Fintech fintech are an important part of that and as you can see from the results of the larger players they're doing much better in fact they've recovered.

Speaker Change: Apologies Ashish and it seemed to have lost your line.

Speaker Change: We'll be going with the next question Hanson or Scott Wurtzel from Wolfe Research. Please go ahead.

Manav Patnaik: Stability that we've seen in the market environment, even at an elevated interest rate.

Scott Wurtzel: Hey, good morning, guys. Thank you for taking my question I, just wanted to touch on the mortgage side and specifically on the pre qual environment I'm. Just wondering if you could speak to what youre seeing in the market from general shopping activity to also the competitive dynamics in that space.

Manav Patnaik: Allows funding to flow back into the market and that takes care of the supply side of things. The demand side is good because you know.

Manav Patnaik: During the Covid era when.

Manav Patnaik: When credit scores artificially inflated.

Chris Cartwright: So India is indeed a very bright growth opportunity for us, and we're fortunate to have it.

Manav Patnaik: A lot of cards were issued through a lot of consumers that might not have qualified for them previously and they took advantage of that and they levered up and their revolving those balances and that creates a great demand side opportunity for loan consolidation.

Scott Wurtzel: Hey, Scott Good morning. Thanks. Thanks for the question I will jump in here with that as far as mortgage is concerned.

Kelsey Zhu: The next question comes from Kelsey Zhu of Autonomous. Please go ahead. Hi, good morning, thanks for taking my question.

Scott Wurtzel: We've been pleased with the performance that we've seen.

Manav Patnaik: So we're definitely seeing a pickup it fintech within consumer lending.

Chris Cartwright: With the recent announcement from the FHFA in terms of validating the usage of Vantage 4.0 in mortgage underwriting, I was just wondering how you really think about the strategy to gain share for Vantage Score, not just in mortgage, but also in non-mortgage verticals. Thanks a lot. Yeah, fair enough, Kelsey. So, look, first, I would just say that, you know, we appreciate and we support the clarification around policy that the FHFA has made recently with their pronouncements around the mortgage-fry-merge and score competition. We think they're the right decisions for consumers, for the GSEs, and for just the safety and soundness of the mortgage economy overall.

Scott Wurtzel: To date.

Scott Wurtzel: In general.

Scott Wurtzel: Through the first half inquiries.

Manav Patnaik: I just want to emphasize it's more than just consumer lending the growth is great. We expect it to continue but we're really doing.

Scott Wurtzel: <unk> been in line and as a reminder, when.

Scott Wurtzel: When we talk about our inquiries, we're talking about a prequalification as well as try emerge.

Manav Patnaik: Solid performance across all of the financial services subcategories.

Speaker Change: So in the second quarter in particular, we were roughly flat and this goes to what Chris just said in a previous response.

Speaker Change: Our next question comes from Ashish <unk> of RBC capital markets.

Scott Wurtzel: We believe we're at a bottom here and that there should be.

Speaker Change: Please go ahead.

Scott Wurtzel: Upside in this space the revenue that we saw did outperform specifically to your question due to Prequalification we.

Speaker Change: Apologies are ashish and seem to have lost your line.

Speaker Change: We'll be going with the next question Jensen or Scott Wurtzel from Wolfe Research. Please go ahead.

Scott Wurtzel: We have seen.

Scott Wurtzel: Good.

Scott Wurtzel: Traction with our customers.

Scott Wurtzel: Hey, good morning, guys. Thank you for taking my question I, just wanted to touch on the mortgage side and specifically on the pre qual environment I'm. Just wondering if you could speak to what you're seeing in the market from general shopping activity to also the competitive dynamics in that space.

Scott Wurtzel: That space, especially after that change last year.

Chris Cartwright: And basically, they're just founded on the principle that more data, particularly when the data is accurate, curated, and predictive, will result in better outcomes across the board. And look, that was our positioning all along on the mortgage tri-merge. Right? You know, the bureaus have differences in their data. And a mortgage decision is enormously important for the typical American consumer. It's not only a quality of life issue, it's one of the best wealth-building opportunities. And we should bring to bear all of the accurate, curated data that's available to make the best possible decision for behalf of that consumer as a borrower, but also on the behalf of all those consumers who are also taxpayers and ultimately bear the risk of the GSE.

Scott Wurtzel: With the early access program.

Scott Wurtzel: So we've been able to maintain our position if not even dean.

Scott Wurtzel: What we have there but in mortgage we've outside of just the pricing.

Speaker Change: Sure.

Speaker Change: Hey, Scott Good morning. Thanks, Thanks for the question I'll jump in here with that as far as you know mortgage is concerned.

Scott Wurtzel: We all know about and what drives the majority of that 29% revenue increase that we saw we've also had some had some success selling of other parts of our product portfolios such as batch marketing.

Speaker Change: I think what we've been pleased with the performance that we've seen.

Scott Wurtzel: As well as trusted call solutions, which we've obviously covered.

Speaker Change: To date in general are through the first half inquiries.

Scott Wurtzel: In depth.

Scott Wurtzel: On the call here today.

Speaker Change: Has been in line and as a reminder, when we talk about our inquiries we're talking about.

Scott Wurtzel: So as we look to go forward into the into the second half of the year I mean for all intents and purposes.

Speaker Change: Qualification as well as try emerge.

Scott Wurtzel: Pretty much holding.

Scott Wurtzel: The guidance that we've been provided providing thus far so that will call for the second half for inquiries to be down modestly.

Speaker Change: In the second quarter in particular, we were roughly flat and this goes to what Chris just said in a previous response.

Chris Cartwright: So, maintaining the tri-merge makes a ton of sense.

Chris Cartwright: Regarding, you know, scores and score competition. Clearly, we think it's time to modernize scoring. The current score that has been in effect since 2004 can be improved, and it also relies on point-in-time credit data, right? And for over a decade now, the entirety of the consumer lending industry has been pivoting to trended credit data. Now, we led that with the introduction of our credit vision, trended credit data in the U.S. in 2012, but all of the bureaus have trended credit data, all of the clients across all lending categories are using trended credit data, and it's so much more predictive and effective that all the clients pay a material price premium to use it.

Speaker Change: We believe we're at a bottom here and that there should be.

Scott Wurtzel: And then for the full year.

Speaker Change: Upside in this space the revenue that we saw did outperform specifically to your question due to pre qualification are we have seen.

Scott Wurtzel: <unk> B.

Scott Wurtzel: Be down modestly as well too.

Speaker Change: Alright, once again I will introduce Ashish <unk> of RBC capital markets has our next question Asker. Please go ahead.

Speaker Change: Good traction with our customers.

Speaker Change: You know in that space, especially after that the change last year.

Speaker Change: Thanks for taking my question just wanted to go back to India, Obviously, we saw some pretty material acceleration in India.

Speaker Change: With the early access program.

Speaker Change: So we've been able to maintain our position it's not even dean.

Speaker Change: From <unk> to <unk>, you've talked about 20% plus growth over the midterm I was just wondering if you could provide some color about the second half of the year, how should we think about the puts and takes there. Thank you.

Speaker Change: What we have there but in mortgage we've you know outside of just the pricing.

Speaker Change: We all know about and what drives the majority of that 29% revenue increase that we saw we've also had some had some success selling other parts of our product portfolios such as batch marketing.

Speaker Change: Yes, I just got back from a week in India.

Speaker Change: It was very exciting invigorating in fact.

Speaker Change: First it's great to see the business pick up materially as it dig increasing from one 1% to 8% organic.

Chris Cartwright: So for the purpose of evaluating whether a mortgage application qualifies as conforming or not for the GSEs. You know, by all means, let's pivot to credit scores that are based on trended data, and let's encourage competition. The competition leads to innovation, it leads to sharpening the pencil on price, and so we're very supportive of the policy decisions.

Speaker Change: As well as trusted call solutions, which we've obviously covered.

Speaker Change: In depth on that.

Speaker Change: I feel like consumer lending momentum is returning in that market as we expected.

Speaker Change: On the call here today.

Speaker Change: So as we look to go forward into the into the second half of the year I mean for all intents and purposes.

Speaker Change: Now that the posture of the reserve bank is pivoted to balancing growth as well as safety and soundness.

Speaker Change: Pretty much holding.

Speaker Change: The guidance that we've been providing providing thus far so that will call for the second half for inquiries to be down modestly.

Speaker Change: The team there is still confident that for the full year, we can hit a 10% growth rate.

Chris Cartwright: Now, look, with any major policy pivot like this, it's going to take some time until all of the operational nuances are ironed out. You know, the regulators are working hard on that now, and look, we're standing at the ready, along with Vantage, to complete whatever analytics or comparisons that they want between the various score that are out there in the market, and look, we hope that the GSEs will pursue that. We know that they're interested, and we know that we're willing. And we'll just have to see how this plays out, because it is a complex industry and a complex situation, but I'm confident that the right policies are in place for the right reasons, and that ultimately it's going to benefit the overall mortgage economy.

Speaker Change: And that means by the fourth quarter.

Speaker Change: And then for the full year also.

Speaker Change: Should be back to high teens organic growth.

Speaker Change: Be down modestly as well too.

Speaker Change: And then that sets us up to a return to proper.

Speaker Change: Yeah.

Speaker Change: Low 20% kind of compounding.

Speaker Change: Alright, once again I will introduce Ashish <unk> of RBC capital markets has our next question Asker. Please go ahead.

Speaker Change: And potentially better.

Speaker Change: As I mentioned I was over there because we were celebrating the 25th anniversary of our Bureau over there it's called Sybille.

Speaker Change: Thanks for taking my question I just wanted to go back to India, Obviously, we saw some pretty material acceleration in India.

Speaker Change:

Speaker Change: And interacted with is just a ton of Ceos in a ton of senior regulators.

Speaker Change: From <unk> to <unk>, you've talked about 20% plus growth.

Speaker Change: And they confirmed that.

Speaker Change: Because of the actions of the RBI, they expect consumer lending to return full.

Speaker Change: I was just wondering if you could provide some color about the <unk>.

Speaker Change: Half of the year, how should we think about the puts and takes there. Thank you.

Speaker Change: Force over the next four quarters and so that's in addition to this improvement in volume that translated into 8% growth for us in the second quarter.

Speaker Change: Yes, I just got back from a week in India.

Jason Haas: Our final question this morning comes from Jason Haas of Wells Fargo. Please go ahead. Hey, good morning, and thanks for taking my question. I wanted to follow up on some of the figures that you've given around the investment you expected that benefits from the cost savings program. So you've called out $100 to $120 million of investments this year. Can I confirm that next year the expectation is that that goes to zero? And then alongside that, the expected benefit is $120 to $140 million of OPEX savings. Are you able to give me a sense for how much will be incremental for next year?

Speaker Change: It was a very exciting invigorating in fact.

Speaker Change: Look the reasons are the Rbis cut rates by 100 bps already.

Speaker Change: You know first it's great to see the business pick up materially as it dig increasing from 1% to 8% organic.

Speaker Change: Very focused on stimulating economic growth infill.

Speaker Change: Inflation is lower in India than it has been in quite a number of years, that's encouraging too. So that's part of the pro growth stance. The RBI has also indicated that they are comfortable with the loan to deposit ratio in consumer lending currently and with the lending practices of certain key non bank financial players who.

Speaker Change: I feel like consumer lending momentum is returning in that market as we expected.

Speaker Change: Now that the posture of the reserve bank is pivoted to balancing growth as well as you know safety and soundness.

Speaker Change: The team there is still confident that for the full year, we can hit a 10% growth rate.

Speaker Change: Were sidelined over much of the past six quarters, but have now come back into the market and are beginning to resume lending and look delinquencies overall are holding up nicely. There are manageable they are within historical standards.

Speaker Change: And that means by the fourth quarter, we should be back to high teens organic growth.

Todd Cello: So how much versus this year? And then, yeah, that'll be it. Thank you.

Speaker Change: And then that sets us up to a return to you know probably low 20% kind of compounding and.

Todd Cello: Hey, Jason, this is Todd. I'll take that question. So the answer to the first part of your question as it pertains to the investment, you're referring to the As a reminder, on the operating expense savings from the program, we achieved a significant portion of that in 2024. It was about $85 million. The remainder of those cost saves are going to largely come in 2026 because in 2025, we always planned to complete our tech transformation work. Last component of this is capital expenditures. We are running at about 8% of our revenue, which has been historically where TransUnion has ran at.

Speaker Change: So we're really setting up for the recovery in consumer lending in India.

Speaker Change: And potentially better.

Speaker Change: We expected it took about six quarters for India to slow down.

Speaker Change: As I mentioned I was over there because we were celebrating the 25th anniversary of our Bureau over there it's called Sybille.

Speaker Change: To the to the bottom in Q1, it will probably take about six quarters until they are fully back rolling along.

Speaker Change:

Speaker Change: And interacted with it just a ton of Ceos in a ton of senior regulators.

Speaker Change: And they confirmed that.

Speaker Change: And we are two quarters in but look India represents an enormous long term opportunity what's exciting about being over there is.

Speaker Change: Because of the actions of the RBI, they expect consumer lending to return.

Speaker Change: Force over the next four quarters and so that's in addition to this improvement in volume that translated into 8% growth for us in the second quarter and look the reasons are the Rbis cut rates by 100 bps already.

Speaker Change: Our regulators and lenders they really appreciate the value of credit reporting agencies, and having the foundation of objective and quantitative data to base their lending practices on <unk>.

Speaker Change: They've only had a functioning score in that market for about 20 years.

Speaker Change: Very focused on stimulating economic growth.

Speaker Change: Inflation is lower in India than it has been in quite a number of years, that's encouraging too. So that's part of the pro growth stance. The RBI has also indicated that they are comfortable with the loan to deposit ratio in consumer lending currently and with the lending practices of certain key non bank financial players.

Speaker Change: And the Ceos can tell you what it was like lending to consumers previously which is they were very conservative they were very cautious.

Speaker Change: And they recognize that and working with us over this period, they've been able to bring.

Speaker Change: There are literally hundreds of millions of Indian consumers in the mainstream consumer finance so financial inclusion has been great Thats helped drive their economic growth.

Speaker Change: Who were sidelined over much of the past six quarters, but have now come back into the market and are beginning to resume lending and look delinquencies overall are holding up nicely there are manageable, they're within historical standards. So.

Speaker Change: And in addition to all the secular tailwind of great demographics further financial penetration potential the continuing digitalization of commerce, there and urbanization trends.

Speaker Change: So we're really setting up for the recovery in consumer lending in India.

Speaker Change: There is a ton of growth opportunity and we're maintaining our market share in the low seventies, which is great. We have a data quality advantage and I think it sets us up.

Speaker Change: We expected it took about six quarters for India to slow down.

Speaker Change: To the to the bottom in Q1, it will probably take about six quarters until they are fully back rolling along.

Speaker Change: For at least 20% compounding over the longer term. It is also a diversified portfolio with all of this growth potential in consumer consumers, 60% of our revenues today.

Speaker Change: We're two quarters in but look India represents an enormous long term opportunity what's exciting about being over there is regulators and lenders. They really appreciate the value of credit reporting agencies and having the foundation of objective and quantitative data to base their lending practices on.

Todd Cello: The commitment for 2026 and beyond is that capital expenditures will drop down to 6% of our revenues. And a lot of that just pertains to moving our computing environment to a cloud, where the cloud-based environment, where the expense shows up in the P&L as opposed to being capitalized. So the net net of all of this is the free cash flow conversion. This year, we anticipate to make significant progress in improving the free cash flow conversion to 70%. And what's most important with those free cash flow savings that I already talked about, in 2026, we are committing to 90% plus on the free cash flow conversion.

Speaker Change: And there's a lot of opportunity for innovation there in <unk>.

Speaker Change: Micro finance, Agra lending lending to small and medium businesses.

Speaker Change: Plus we're setting up to bring.

Speaker Change: Marketing and fraud solutions to India on one true and we just launched the true IQ analytics platform, there and completed our first innovation lab.

Speaker Change: They've only had a functioning score in that market for about 20 years.

Speaker Change: And <unk>.

Speaker Change: <unk> can tell you what it was like lending to consumers previously which is they were very conservative they were very cautious.

Speaker Change: And there is an enormous appetite for more analytics in the Indian market. We partnered with this customer we entered several hundred thousand dollars worth of consulting fees now we've got there.

Speaker Change: And they recognize that and working with us over this period, they've been able to bring literally hundreds of millions of Indian consumers in the mainstream consumer finance. So financial inclusion has been great Thats helped drive their economic growth.

Speaker Change: Our data business for the long term.

Speaker Change: And there is great potential and I guess, the last thing I would say is look.

Speaker Change: I had the privilege of meeting with the.

Speaker Change: The governor of the reserve Bank of India.

Speaker Change: And in addition to all the secular tailwind of great demographics further financial penetration potential the continuing did utilization of commerce, there and urbanization trends.

Todd Cello: Yeah, and so look, the net of it is, the program is on track. We are very confident that we're going to deliver the savings that we articulated, and that we're not going to spend more than the investment that we articulated, and it's going to happen within the timeframe that we targeted. And so that's great, and that's all the kind of financial savings aspect of it.

Speaker Change: While I was there my team and I and really their focus is all about how they can bring more of the Indian population into the mainstream lending economy.

Speaker Change: They're pleased that there are now hundreds of millions of folks participating in that there are still hundreds of millions of people, particularly in rural areas that want access to capital on more favorable terms.

Speaker Change: There's a ton of growth opportunity and we're maintaining our market share in the low seventies, which is great. We have a data quality advantage and I think it sets us up.

Todd Cello: But again, this modernization is also leading to a real acceleration in our innovation. And that's why in my comments I talked about the retooling at Factor Trust, and how we're getting great commercial value out of that. The launch of our true IQ analytics in multiple markets around the world, including data enrichment, innovation and fraud, innovation in our identity graph. This is all being enabled by this one true platform that we're creating, and we're going to get tremendous leverage about it.

Speaker Change: And they want to understand how they can leverage all of this alternative data that they've created with their federal registry for.

Speaker Change: For at least 20% compounding over the longer term. It's also a diversified portfolio with all of this growth potential in consumer consumers, 60% of our revenues today and Ah Theres a lot of opportunity for innovation there in.

Speaker Change: For wealth for real estate for the data that's flowing through their universal payment interface.

Speaker Change: And we're positioned to help them think through the opportunity and partner on the execution. So India is indeed, a very bright growth opportunity for us and we're fortunate to have it.

Speaker Change: Micro finance, Agra lending lending to small and medium businesses.

Speaker Change: Plus we're setting up to bring.

Speaker Change: Marketing and fraud solutions to India on one true and we just launched the true IQ analytics platform, there and completed our first innovation lab.

Todd Cello: And look, I'd be remiss if we ended the call if we didn't just reinforce that, you know, we have put forth improved guidance for 2025, and we firmly believe that it is conservative guidance. We grew 8 and 9 percent. organically in the first two quarters, and if you do the math, which I'm sure all of you smart analysts have, our guide still assumes that we are decelerating in the third quarter and particularly in the fourth quarter. And the reason we're doing that is because we're being prudently conservative. We want to have guidance that, while elevated, would still allow us to support and offset a slowdown in lending that may or may not arise.

Speaker Change: The next question comes from Kelsey to autonomous.

Speaker Change: And there is an enormous appetite for more analytics in the Indian market. We partnered with this customer we entered several hundred thousand dollars worth of consulting fees now we've got there their data business for the long term.

Speaker Change: Please go ahead.

Kelsey: Hi, good morning, Thanks for taking my question.

Kelsey: With the recent announcements from the FHFA in terms of validating that uses authentic falling out and mortgage underwriting I was just wondering you know how you really think about the strategy to gain share from vantage score not just in mortgage but also in my mortgage protocols. Thanks a lot.

Speaker Change: And there is great potential and I guess, the last thing I would say is look I.

Speaker Change: I had the privilege of meeting with the.

Speaker Change: The governor of the reserve Bank of India.

Speaker Change: While I was there my team and I and really their focus is all about how they can bring more of the Indian population into the mainstream lending economy.

Speaker Change: Yeah fair enough Kelcey, So look first I would just say that.

Speaker Change: We appreciate and we support.

Speaker Change: The clarification around policy that the FHFA has made recently with their pronouncements around the mortgage tri merge.

Speaker Change: While we're pleased that you know there are now hundreds of millions of folks participating in that there are still hundreds of millions of people, particularly in rural areas that want access to capital on more favorable terms.

Todd Cello: What I do want to be clear is that This slowdown is not reflected in our current business momentum, right? We're almost done with July. July is a continuation of the strength that we saw in the second quarter. And unless there's a slowdown in lending or a slowdown in the economy generally, we would expect to exceed the high end of the guidance that we've provided today. And that's true not only on revenue, but EBITDA and all the different financial metrics. So I just want to be clear on that before we end the call.

Speaker Change: And and score competition.

Speaker Change: And they want to understand how they can leverage all of this alternative data that they've created with their federal registry for.

Speaker Change: We think they're the right decisions for for consumers for the GSE is in for just the safety and soundness of the.

Speaker Change: The mortgage economy overall, and basically Theyre just founded on the principle that more data, particularly when the data is accurate curated and predictive will result in better outcomes across the board.

Speaker Change: For wealth for real estate for the data that's flowing through their universal payment interface.

Speaker Change: And we're positioned to help them think through the opportunity and partner on the execution. So India is indeed, a very bright growth opportunity for us and we're fortunate to have it.

Speaker Change: And look that was our positioning all along on the mortgage Tri merge right.

Speaker Change: The bureaus have differences in their data.

Speaker Change: The next question comes from Kelsey to autonomous.

Speaker Change: And our mortgage decision is enormously important for the typical American consumer it's not only a quality of life issue. It's one of the best wealth building opportunities and we should bring to bear all of the Acura curated data that's available to make the best possible decision for behalf of that consumer as a borrower.

Todd Cello: Perfect.

Operator: That's a good place to end. Thanks for all your questions today, and have a great rest of the day.

Speaker Change: Please go ahead.

Speaker Change: Hi, good morning, Thanks for taking my question.

Speaker Change: With the recent announcements from the FHFA in terms of validating for instance, authentic falling out in mortgage underwriting I was just wondering you know how you really think about the strategy to gain share from vantage score not just in mortgage but also in non mortgage verticals. Thanks Paul.

Operator: The conference is now concluded. Thank you for attending today's presentation and you may now all disconnect your lines.

Speaker Change: But also for the behalf of all of those consumers are also taxpayers and ultimately bear the risk of the GSE.

Speaker Change: Yeah fair enough Kelcey, So look first I would just say that you know.

Speaker Change: So maintaining the tri merge makes a ton of sense.

Speaker Change: Regarding.

Speaker Change: We appreciate and we support.

Speaker Change: Scores and score competition.

Speaker Change: The clarification around policy that the FHFA has made recently with their pronouncements around the mortgage tri merge.

Speaker Change: Clearly, we think it's time to modernize.

Speaker Change: Scoring.

Speaker Change: The current score that has been in effect since 2004.

Speaker Change: And and score competition.

Speaker Change: You know can be improved and it also relies on point in time credit data right.

Speaker Change: We think they're the right decisions for for consumers for the GSE is in for just the safety and soundness of.

Speaker Change: For over a decade now the entirety of the consumer lending industry has been pivoting to trended credit data now we led that with the introduction of of our credit vision trended credit data in the U S. In 2012.

Speaker Change: The mortgage economy overall, and basically Theyre just founded on the principle that more data, particularly when the data is accurate curated and predictive will result in better outcomes across the board.

Speaker Change: But all of the bureaus have trended credit data all of the clients across all lending categories are using trended credit data and it's so much more predictive and effective that all the clients play a material price premium to use it.

Speaker Change: And look that was our positioning all along on the mortgage Tri merge right.

Speaker Change: The bureaus have differences in their data and a mortgage decision is enormously important for the typical American consumer it's not only a quality of life issue. It's one of the best wealth building opportunities and we should bring to bear all of the accurate curated data that's available to make the best path.

Speaker Change: So for the purpose of evaluating whether or.

Speaker Change: Our mortgage application qualifies as a conforming or not for the GSE.

Speaker Change: No by all means let's pivot the credit scores that are based on trended data and let's encourage competition. The competition leads to innovation it leads to sharpening the pencil on price.

Speaker Change: <unk> decision for behalf of that consumer as a borrower, but also for the behalf of all of those consumers are also taxpayers and ultimately bear the risk of the GSE. So maintaining the tri merge makes a ton of sense.

Speaker Change: And so we're very supportive of the policy decisions now look with any major policy pivot like this it's going to take some time until all of the operational nuances are ironed out.

Speaker Change: Regarding you know scores and score competition.

Speaker Change: You know clearly we think it's time to modernize.

Speaker Change: The regulators are working hard on that now.

Speaker Change: And look we are we're standing at the ready along with vantage to complete whatever analytics for comparisons that they want between the various score that are out there in the market.

Speaker Change: Scoring.

Speaker Change: The current score that has been in effect since 2004.

Speaker Change: You know can be improved and it also relies on point in time credit data right.

Speaker Change: And look we hope that the Gse's, we'll we'll we'll pursue that we know that they are interested and we know that we're willing and we'll just have to see how this plays out because it is a complex industry in a complex situation, but I am confident that the right policies are in place for the right reasons and that ultimately it's going to benefit the overall mortgage economy.

Speaker Change: For over a decade now the entirety of the consumer lending industry has been pivoting to trended credit data now we led that with the introduction of our credit vision trended credit data in the U S. In 2012.

Speaker Change: But all of the bureaus have trended credit data all of the clients across all lending categories are using trended credit data and it's so much more predictive and effective that all the clients play a material price premium to use it.

Speaker Change: Yeah.

Speaker Change: Our final question. This morning comes from Jason <unk> of Wells Fargo. Please go ahead.

Speaker Change: Hey, good morning, and thanks for taking my question I wanted to follow up on some of the figures that you've given around the investment expected net benefit from the cost savings program.

Speaker Change: So for the purpose of evaluating whether.

Speaker Change: Our mortgage application qualifies as a conforming or not for the <unk>.

Speaker Change: No by all means let's pivot to credit scores that are based on trended data.

Speaker Change: So you've called out a $100 million to $120 million on those investments.

Speaker Change: Let's encourage competition the competition leads to innovation it leads to sharpening the pencil on price.

Speaker Change: This year can I confirm that next year, the expectation that that goes to zero and then alongside that the expected benefit of $120 million to $140 million of Opex savings are you able to give me a sense for how much it will be incremental for next year. So.

Speaker Change: And so we're very supportive of the policy decisions now look with any major policy pivot like this it's going to take some time until all of the operational nuances are ironed out.

Speaker Change: You know the regulators are working hard on that now.

Speaker Change: Yes, how much versus this year.

Speaker Change: And look we are we're standing at the ready along with vantage to complete whatever analytics for comparisons that they want between the various score that.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Hey, Jason This is Todd I'll take that question. So the answer to the first part of your question as it pertains to the investment you're referring to the one time cost.

Speaker Change: There are out there in the market.

Speaker Change: And look we hope that the Gse's, we'll we'll we'll pursue that we know that they are interested and we know that we're willing and we'll just have to see how this plays out because it is a complex industry in a complex situation, but I'm confident that the right policies are in place for the right reasons and that ultimately it's going to benefit the overall mortgage economy.

Speaker Change: For both the optimization of our Org model as well as our technology transformation.

Speaker Change: <unk> committed to a spend of up to $375 million, we are on track to.

Speaker Change: To achieve hit that number and probably not even exceed it will be right around it and the expectation is is that it's going to stop at the end of 2025 as we committed to.

Speaker Change: Okay.

Speaker Change: Our final question. This morning comes from Jason <unk> of Wells Fargo. Please go ahead.

Speaker Change: <unk>.

Speaker Change: The benefits from that program as we shift into 2026.

Jason: Hey, good morning, and thanks for taking my question I wanted to follow up on some of the figures that you've given around the investment and expected net benefit from the cost savings program.

Speaker Change: What we're focused on is the free cash flow benefit.

Speaker Change: And if you remember when we announced the transformation program in November of 2023, we committed to a $200 million of free cash flow benefit going forward in 2026, and we have really good line of sight to that as a reminder, on the operating expense.

Jason: So you've called out $100 million to $120 million of investments. This year can I confirm that next year. The expectation is that that goes to zero and then alongside that the expected benefit of $120 million to $140 million of Opex savings are you able to give me a sense for how much it will be <unk>.

Speaker Change: Savings from the program, we achieved a significant portion of that.

Jason: <unk> for next year so.

Speaker Change: In.

Speaker Change: In two.

Jason: Yes, so how much versus this year.

Speaker Change: 2024, it was about $85 million the remainder of those cost saves are going to largely come in 2026 because in 2025.

Jason: And then yes. Thank you.

Jason: Hey, Jason This is Todd I'll take that question. So the answer to the first part of your question as it pertains to the investment you're referring to the one time cost.

Speaker Change: Always planned to complete our train our tech transformation work and that's what we're in the midst of doing right now.

Jason: For both the optimization of our Org model as well as our technology transformation we.

Speaker Change: The last component of this is capital expenditures.

Jason: We committed to a spend of up to $375 million, we are on track.

Speaker Change: Are running at about 8% of our revenue, which has been historically, where transunion has ran at the commitment for 2026 and beyond is that capital expenditures will drop down to 6% of our revenues and a lot of that just pertains to moving our computing environment.

Jason: To hit that number and being.

Jason: Probably not even exceed it will be right around it.

Jason: And the expectation is is that it's going to stop at the end of 2025 as we committed.

Jason: To the.

Speaker Change: Two of cloud, where the cloud based environment.

Jason: The benefits from that program as we shift into 2026.

Speaker Change: The expense shows up in the P&L as opposed to being capitalized. So the net net of all of this is the free cash flow conversion.

Jason: What we're focused on is the free cash flow benefit.

Jason: And if you remember when we announced the transformation program in November of 2023, we committed to a 200 million dollar of free cash flow benefit going forward in 2026, and we have really good line of sight to that now as a reminder, on the operating expense.

Speaker Change: This year, we anticipate to make significant progress in improving the free cash flow conversion to 70%.

Speaker Change: And what's most important with those free cash flow savings that I already talked about in.

Speaker Change: In 2026, we are committing to 90% plus on the free cash flow conversion.

Jason: Savings from the program, we achieved a significant portion of that.

Speaker Change: Yes, so look the net of it is.

Jason: And in.

Speaker Change: The program is on track.

Jason: 2024, it was about $85 million the remainder of those cost saves are going to largely come in 2026 because in 2025.

Speaker Change: We are very confident that we're going to deliver the savings that we articulated and that we're not going to spend more than the investment that we articulated and it's going to happen within the timeframe that we targeted.

Jason: We always planned to complete our train our tech transformation work and that's what we're in the midst of doing right now.

Speaker Change: And so thats, great and Thats, all the kind of financial savings aspect of it but again. This modernization is also leading to a real acceleration in our innovation and that's why in my comments I talked about the retooling It factor Trust and how we're getting great commercial value out of that the launch of our true IQ analytics in multiple <unk>.

Jason: Alaska last component of this is our capital expenditures, we are running at about 8% of our revenue, which has been historically, where transunion has ran at the commitment for 2026 and beyond is that capital expenditures will drop down to 6%.

Speaker Change: Markets around the world, including data enrichment innovation and fraud innovation our identity graph. This is all being enabled by this one fruit platform that we're creating and we're going to get tremendous leverage about it.

Jason: Of our revenues and a lot of that just pertains to moving our computing environment.

Jason: Two of cloud, where the cloud based environment.

Jason: The expense shows up in the P&L as opposed to being capitalized.

Speaker Change: And look I'd be remiss, if we ended the call. If you didn't just reinforce.

Speaker Change: That.

Jason: So the net net of all of this is the free cash flow conversion.

Speaker Change: We have put forth.

Speaker Change: Improved guidance for 2025.

Jason: This year, we anticipate to make a significant progress in improving the free cash flow conversion to 70%.

Speaker Change: We firmly believe that it is conservative guidance.

Speaker Change: Grew eight 9%.

Speaker Change: <unk> in the first two quarters.

Jason: And what's most important with those free cash flow savings that I already talked about in in 2026, we are committing to 90% plus on the free cash flow conversion.

Speaker Change: And.

Speaker Change: If you do the math, which I'm sure all of you smart analyst half.

Speaker Change: Our guidance still assumes that we are decelerating in the third quarter and particularly in the fourth quarter and the reason we're doing that is because we're being prudently conservative we want to have guidance that while elevated.

Jason: Yes, so look the net of it is the program is on track. We are very confident that we're going to deliver the savings that we articulated and that we're not going to spend more than the investment that we articulated and it's going to happen within the timeframe that we targeted.

Speaker Change: It would still allow us to to support an offset a slowdown in lending that may or may not arise what I do want to be clear is that.

Jason: So thats, great and Thats, all the kind of financial savings aspect of it but again. This modernization is also leading to a real acceleration in our innovation and that's why in my comments I talked about the retooling It factor Trust and how we're getting great commercial value out of that the launch of our true IQ analytics in multiple market.

Speaker Change: This slowdown is not.

Speaker Change: Reflected in our current business momentum right.

Speaker Change: We're almost done with July July is a continuation of the strength that we saw in the second quarter.

Speaker Change: And unless there is a slowdown in lending or a slowdown in the economy generally we would expect to exceed the high end of the guidance that we've provided today.

Jason: It's around the world, including data enrichment innovation and fraud innovation our identity graph. This is all being enabled by this one true platform that we're creating and we're going to get tremendous leverage about it and look I'd be remiss. If we ended the call. If you didn't just reinforced that.

Speaker Change: And that's true not only on revenue, but EBITDA and all of the different financial metrics. So I just wanted to be clear on that before we end the call.

Jason: We have put forth.

Speaker Change: Perfect. That's a good place to end thanks for all your questions today and have a great rest of the day.

Jason: Our improved guidance for 2025.

Jason: And we firmly believe that it is conservative guidance.

Jason: We grew eight 9%.

Jason: Organically in the first two quarters.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation and you may now all disconnect your lines.

Hum.

Jason: If you do the math, which I'm sure all of you smart analysts have.

Jason: Our guidance still assumes that we are decelerating in the third quarter and particularly in the fourth quarter and the reason we're doing that is because we're being prudently conservative we want to have guidance that while elevated.

Jason: It would still allow us to.

Jason: To support and offset a slowdown in lending that may or may not arise what I do want to be clear is that.

Jason: This slowdown is not.

Jason: Reflected in our current business momentum right.

Jason: We're almost done with July July is a continuation of the strength that we saw in the second quarter.

Jason: And unless there's a slowdown in lending or a slowdown in the economy generally we would expect to exceed the high end of the guidance that we've provided today.

Jason: And that's true not only on revenue, but EBITDA and all of the different financial metrics. So I just wanted to be clear on that before we end the call.

Jason: Perfect. That's a good place to end thanks for all your questions today and have a great rest of the day.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation and you may now all disconnect your lines.

Speaker Change: [music].

Speaker Change: Yeah.

Speaker Change: [music].