Q1 2026 Equifax Inc Earnings Call

April 21, 2026

Speaker #1: Concerning a listing-only mode. A question-and-answer session will follow the formal presentation. You may be placed into questioning queue at any time by pressing star 1 on your telephone keypad.

Speaker #1: We ask that you please limit yourselves to one question and one follow-up, then return to the queue. As a reminder, this conference is being recorded.

Speaker #1: If anyone should require operator assistance, please press star 0. It's not my pleasure to turn the call over to Trevor Burns, Senior Vice President, Investor Relations.

Speaker #1: Trevor, please go ahead.

Speaker #2: Thanks, and good morning. Welcome to today's conference call. I'm Trevor Burns. With me today are Mark Begor, Chief Executive Officer, and John Gamble, Chief Financial Officer.

Speaker #2: Today's call is being recorded. An archive of the recording will be available later today. In the IR calendar section, the news and events tab at our investor relations website.

Operator: Greetings, and welcome to the Equifax Q1 2026 Earnings Conference Call webcast. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. You may be placed into the question queue at any time by pressing star one on your telephone keypad. We ask that you please limit yourselves to one question and one follow-up, then return to the queue. As a reminder, this conference is being recorded. If anyone should require operator assistance, please press star zero. It's now my pleasure to turn the call over to Trevor Burns, Senior Vice President, Investor Relations. Trevor, please go ahead.

Speaker #2: During the call, we will be making preferences certain materials that can be found in the presentation section of the news and events tab at our IR website.

Speaker #2: You may be placed into question queue at any time by pressing star one on your telephone keypad. We ask that you please limit yourselves to one question and one follow-up, then return to the queue.

Speaker #2: These materials are labeled 1Q2026 earnings conference call. Also, we'll be making certain forward-looking statements including second quarter and full year 2026 guidance to help you understand EQUIFAX and its business environment.

Speaker #2: As a reminder, this conference is being recorded. If anyone wants to require operator assistance, please press star zero. It's not my pleasure to turn the call over to Trevor Burns, Senior Vice President, Investor Relations.

Speaker #2: These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations. Certain risk factors that may impact our business are set forth in filings with the SEC, including our 2025 Form 10-K and subsequent filings.

Speaker #2: Trevor, please go ahead. Thanks. And good morning. Welcome to today's conference call. I'm Trevor Burns. With me today are Mark Begor, Chief Executive Officer, and John Gamble, Chief Financial Officer.

Trevor Burns: Thanks, and good morning. Welcome to today's conference call. I'm Trevor Burns. With me today are Mark Begor, Chief Executive Officer, and John Gamble, Chief Financial Officer. Today's call is being recorded. An archive of the recording will be available later today in the IR Calendar section of the News and Events tab at our investor relations website. During the call, we will be making reference to certain materials that can be found in the Presentations section of the News and Events tab at our IR website. These materials are labeled Q1 2026 Earnings Conference Call. Also, we'll be making certain forward-looking statements, including Q2 and full year 2026 guidance to help you understand Equifax and its business environment. These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations.

Speaker #2: Today's call is being recorded. An archive of the recording will be available later today. And the IR calendar section of the news and events tab at our investor relations website.

Speaker #2: During this call, we'll be referencing certain non-GAAP financial measures including adjusted EPS, adjusted EBITDA, adjusted EBITDA margins, and cash conversion, which are adjusted for certain items that affect the comparability of our underlying operational performance.

Speaker #2: During the call, we will be making reference to certain materials that can be found in the Presentation section of the News and Events tab on our IR website.

Speaker #2: All references to EPS, EBITDA, EBITDA margins, and cash conversion are references to non-GAAP measures. These non-GAAP measures are detailed in reconciliation tables which are included with our earnings release and can be found in the financial results section of the financial info tab at our IR website.

Speaker #2: Now I'd like to turn it over to Mark.

Speaker #3: Thanks, Trevor. Turning to slide 4, EQUIFAX delivered very strong first quarter results with reported revenue of $1.649 billion up 14%, which was 37 million dollars above the midpoint of our February guidance.

Trevor Burns: Certain risk factors that may impact our business are set forth in filings with the SEC, including our 2025 Form 10-K and subsequent filings. During this call, we'll be referencing certain non-GAAP financial measures, including adjusted EPS, adjusted EBITDA, adjusted EBITDA margins, and cash conversion, which are adjusted for certain items that affect the comparability of our underlying operational performance. All references to EPS, EBITDA margins, and cash conversion are references to non-GAAP measures. These non-GAAP measures are detailed in reconciliation tables, which are included with our earnings release and can be found in the Financial Results section of the Financial Info tab at our IR website. Now I'd like to turn it over to Mark.

Speaker #3: On an organic constant currency basis, revenue growth of 13%, which was over $200 basis points above the midpoint of our February framework. XFICO revenue growth was up about 10%, and at the top end of our 7 to 10% long-term growth framework.

Speaker #2: During this call, we'll be referencing certain non-GAAP financial measures, including adjusted EPS, adjusted EBITDA, adjusted EBITDA margins, and cash conversion, which are adjusted for certain items that affect the comparability of our underlying operational performance.

Speaker #3: The revenue outperformance was principally in US mortgage, which was up 38%, and better than our February guide from stronger mortgage activity in the middle of the quarter before rates increased due to the Iran conflict.

Speaker #3: USIS mortgage also benefited from stronger revenue growth related to its new wins in pre-approval products driven by our twin indicator solution. These mortgage customer wins are a good proof point that our differentiated twin indicator solutions are resonating with mortgage customers.

Speaker #2: Now, I'd like to turn it over to Mark.

Speaker #3: Thanks, Trevor. Turning to slide four, Equifax delivered very strong first quarter results with reported revenue of $1.649 billion, up 14%, which was $37 million above the midpoint of our February guidance.

Mark Begor: Thanks, Trevor. Turning to slide four, Equifax delivered very strong Q1 results with reported revenue of $1.649 billion, up 14%, which was $37 million above the midpoint of our February guidance. On an organic constant currency basis, revenue growth of 13%, which was over 200 basis points above the midpoint of our February framework. Ex FICO, revenue growth was up about 10% and at the top end of our 7% to 10% long-term growth framework. The revenue outperformance was principally in U.S. mortgage, which was up 38% and better than our February guide from stronger mortgage activity in the middle of the quarter before rates increased due to the Iran conflict. USIS mortgage also benefited from stronger revenue growth related to its new wins in pre-approval products driven by our twin indicator solution.

Speaker #3: We also expect customer share gains this year in card, auto, and P loan as we drive twin indicator deployment more broadly. As a reminder, we are offering the twin indicator as well as our cell phone utility and pay TV attributes at no cost in mortgage to drive share gains.

Speaker #3: On an organic constant currency basis, revenue growth was 13%, which was over 200 basis points above the midpoint of our February framework. Ex-FICO, revenue growth was up about 10%, and at the top end of our 7 to 10 percent long-term growth framework.

Speaker #3: Organic diversified markets constant revenue dollar growth grew almost 6% in the quarter consistent with our guidance. This was principally driven by strong broad-based execution and workforce solutions.

Speaker #3: Importantly, first quarter EBITDA of $477 million was up 13% with an EBITDA margin excluding FICO of 31.2%, up a strong 80 basis points and a very strong 110 basis points above the midpoint of our February framework.

Speaker #3: USIS mortgage also benefited from stronger revenue growth related to its new wins in pre-approval products, driven by our Twin Indicator solution. These mortgage customer wins are a good proof point that our differentiated Twin Indicator solutions are resonating with mortgage customers.

Speaker #3: The 80 basis point expansion versus last year in EBITDA margin was both above our 75 basis point target for the year and 30 basis points above our long-term 50 basis point framework.

Mark Begor: These mortgage customer wins are a good proof point that our differentiated twin indicator solutions are resonating with mortgage customers. We also expect customer share gains this year in card, auto, and P-loan as we drive twin indicator deployment more broadly. As a reminder, we are offering the twin indicator as well as our cell phone, utility, and pay TV attributes at no cost in mortgage to drive share gains. Organic diversified markets constant revenue dollar growth grew almost 6% in the quarter, consistent with our guidance. This was principally driven by strong broad-based execution in Workforce Solutions. Importantly, Q1 EBITDA of $477 million was up 13% with an EBITDA margin excluding FICO of 31.2%, up a strong 80 basis points and a very strong 110 basis points above the midpoint of our February framework.

Speaker #3: We also expect customer share gains this year in card, auto, and personal loan as we drive twin indicator deployment more broadly. As a reminder, we are offering the twin indicator, as well as our cell phone utility and pay TV attributes, at no cost in mortgage to drive share gains.

Speaker #3: The strong EBITDA margins were driven by strong operating leverage, mortgage flow-through, and AI-driven cost productivity. EQUIFAX reported EBITDA margins were 29% in the quarter.

Speaker #3: EPS at $1.86 per share was also up a very strong 22% and 18 cents above the midpoint of our February guide. As a reminder, first quarter EBITDA margins and EPS are lower than the remainder of the year, primarily due to a large percentage of our employees' employee equity plan expenses being recognized in the quarter.

Speaker #3: We returned $327 million to shareholders in the quarter, including repurchasing $1.3 million shares or about 1% of shares outstanding for $260 million to take advantage of a weaker EQUIFAX stock price.

Speaker #3: The 80 basis point expansion versus last year in EBITDA margin was both above our 75 basis point target for the year, and 30 basis points above our long-term 50 basis point framework.

Mark Begor: The 80 basis point expansion versus last year in EBITDA margin was both above our 75 basis point target for the year and 30 basis points above our long-term 50 basis point framework. The strong EBITDA margins were driven by strong operating leverage, mortgage flow-through, and AI-driven cost productivity. Equifax reported EBITDA margins were 29% in the quarter. EPS at $1.86 per share was also up a very strong 22% and $0.18 above the midpoint of our February guide. As a reminder, Q1 EBITDA margins and EPS are lower than the remainder of the year, primarily due to a large percentage of our employee equity plan expenses being recognized in the quarter.

Speaker #3: And last month, we increased our quarterly dividend by 12% to $56 cents per share. EQUIFAX paid $67 million of dividends in the quarter. We continue to expect strong free cash flow of over $1 billion in 2026, with a cash conversion over 100%, which will deliver capacity of approximately $1.5 billion for bolt-on M&A and return of cash to shareholders while maintaining strong leverage levels.

Speaker #3: The strong EBITDA margins were driven by strong operating leverage, mortgage flow-through, and AI-driven cost productivity. Equifax reported EBITDA margins were 29% in the quarter.

Speaker #3: EPS at $1.86 per share was also up a very strong 22%, and 18 cents above the midpoint of our February guide. As a reminder, first quarter EBITDA margins and EPS are lower than the remainder of the year, primarily due to a large percentage of our employees’ employee equity plan expenses being recognized in the quarter.

Speaker #3: The team also continued to execute very well against our EFX 2028 strategic priorities in the quarter by leveraging EFX.AI-based solutions built on our cloud-native infrastructure to drive innovation, new products, and growth.

Speaker #3: We returned $327 million to shareholders in the quarter, including repurchasing 1.3 million shares, or about 1% of shares outstanding, for $260 million to take advantage of a weaker Equifax stock price.

Speaker #3: In the first quarter, our vitality index of 17% was at record levels and reflects the focused execution of our teams in driving customer-focused growth through accelerated innovation based on advanced EFX.AI, leveraging our proprietary data assets.

Mark Begor: We returned $327 million to shareholders in the quarter, including repurchasing 1.3 million shares or about 1% of shares outstanding for $260 million to take advantage of a weaker Equifax stock price. Last month, we increased our quarterly dividend by 12% to $0.56 per share. Equifax paid $67 million of dividends in the quarter. We continue to expect strong free cash flow of over $1 billion in 2026 with a cash conversion over 100%, which will deliver capacity of approximately $1.5 billion for both on M&A and return of cash to shareholders while maintaining strong leverage levels. The team also continued to execute very well against our EFX 2028 strategic priorities in the quarter by leveraging EFX.AI-based solutions built on our cloud-native infrastructure to drive innovation, new products, and growth.

Speaker #3: And last month, we increased our quarterly dividend by 12% to $0.56 per share. Equifax paid $67 million of dividends in the quarter. We continue to expect strong free cash flow of over $1 billion in 2026, with a cash conversion over 100%, which will deliver capacity of approximately $1.5 billion for bolt-on M&A and return of cash to shareholders while maintaining strong leverage levels.

Speaker #3: As a reminder, we added over 40 EFX.AI-based patents in 2025 and 10 more AI-based patents in the first quarter for a total of 400 pending or granted AI-based patents as we continue to invest in differentiated, explainable AI capabilities at EQUIFAX.

Speaker #3: In the middle of the first quarter, we saw strength in diversified markets US credit and mortgage activity as overall economic activity remained robust, inflation expectations moderated, and interest rates declined.

Speaker #3: In March, the Iran conflict, drove market uncertainty and higher interest rates, and we saw weaker overall US transactional activity from higher interest rates impacting mortgage and, to a lesser degree, auto and banking.

Mark Begor: In Q1, our Vitality Index of 17% was at record levels and reflects the focused execution of our teams in driving customer-focused growth through accelerated innovation based on advanced EFX.AI, leveraging our proprietary data assets. As a reminder, we added over 40 EFX.AI-based patents in 2025 and 10 more AI-based patents in Q1 for a total of 400 pending or granted AI-based patents as we continue to invest in differentiated explainable AI capabilities at Equifax. In the middle of Q1, we saw strength in diversified markets, US credit, and mortgage activity as overall economic activity remained robust, inflation expectations moderated, and interest rates declined. In March, the Iran conflict drove market uncertainty and higher interest rates, and we saw weaker overall US transactional activity from higher interest rates impacting mortgage and, to a lesser degree, auto and banking.

Speaker #3: Broadly, the US consumers is resilient, even in these uncertain times. We've seen mortgage activity decline in the last six weeks from elevated levels in February from the higher interest rates and we expect these lower levels of inquiries to continue until the Iran conflict is resolved and interest rates moderate.

Speaker #3: Current mortgage run rates are slightly below the levels reflected in the 2026 framework we shared in February. Despite our very strong first quarter results and given the significant uncertainty related to the current Iran conflict, we felt it was prudent to maintain our 2026 guidance we put in place in February until it is more clarity on the direction of the economy and, importantly, inflation and interest rates.

Speaker #3: In the middle of the first quarter, we saw strength in diversified markets, US credit, and mortgage activity, as overall economic activity remained robust, inflation expectations moderated, and interest rates declined.

Speaker #3: Absent the uncertainty and economic conditions related to the Iran conflict, we would have raised our full-year guidance based on our strong first quarter results.

Speaker #3: In March, the Iran conflict drove market uncertainty and higher interest rates, and we saw weaker overall U.S. transactional activity from higher interest rates impacting mortgage and, to a lesser degree, auto and banking.

Speaker #3: We are maintaining our 2026 guidance for mortgage revenue growth of over 20%, consistent with the framework we provided in February, as a stronger-than-expected first quarter mortgage revenue growth is offset by our expectation of current trends of slightly slower growth over the remainder of the year versus our February guide.

Speaker #3: Broadly, the US consumer is resilient even in these uncertain times. We've seen mortgage activity decline in the last six weeks from elevated levels in February due to higher interest rates, and we expect these lower levels of inquiries to continue until the Iran conflict is resolved and interest rates moderate.

Mark Begor: Broadly, the US consumer is resilient, even in these uncertain times. We've seen mortgage activity decline in the last six weeks from elevated levels in February from the higher interest rates, and we expect these lower levels of inquiries to continue until the Iran conflict is resolved and interest rates moderate. Current mortgage run rates are slightly below the levels reflected in the 2026 framework we shared in February. Despite our very strong Q1 results and given the significant uncertainty related to the current Iran conflict, we felt it was prudent to maintain our 2026 guidance we put in place in February until there's more clarity on the direction of the economy and importantly, inflation and interest rates. Absent the uncertainty in economic conditions related to the Iran conflict, we would have raised our full year guidance based on our strong Q1 results.

Speaker #3: For the full year, we continue to expect our diversified markets revenue to be up high single digits, consistent with the guidance we provided in February.

Speaker #3: Current mortgage run rates are slightly below the levels reflected in the 2026 framework we shared in February. Despite our very strong first quarter results, and given the significant uncertainty related to the current Iran conflict, we felt it was prudent to maintain our 2026 guidance we put in place in February until there's more clarity on the direction of the economy and, importantly, inflation and interest rates.

Speaker #3: We expect strong execution from EFX.AI-driven new products and customer share gains to allow us to deliver at the levels consistent with our February framework.

Speaker #3: We also expect to deliver strong full-year margin expansion excluding FICO of 75 basis points from operating leverage off strong topline growth, higher margin new products, and AI-driven productivity.

Speaker #3: Absent the uncertainty and economic conditions related to the Iran conflict, we would have raised our full-year guidance based on our strong first quarter results.

Speaker #3: The 75 basis points is 25 basis points above our 50 basis point long-term margin framework. Turning to slide five, workforce solutions revenue was up over 10% and better than our expectations.

Mark Begor: We are maintaining our 2026 guidance for mortgage revenue growth of over 20%, consistent with the framework we provided in February, as a stronger than expected Q1 mortgage revenue growth is offset by our expectation of current trends of slightly slower growth over the remainder of the year versus our February guide. For the full year, we continue to expect our diversified markets revenue to be up high single digits, consistent with the guidance we provided in February. We expect strong execution from EFX.AI-driven new products and customer share gains to allow us to deliver at the levels consistent with our February framework. We also expect to deliver strong full year margin expansion excluding FICO of 75 basis points from operating leverage off strong top line growth, higher margin new products, and AI-driven productivity.

Speaker #3: Verifier revenue was up a strong 14% with diversified markets revenue growth of 14%, which is a great start to the year. Within diversified markets, government had a very strong quarter building off their fourth quarter performance with revenue up mid-double digits from continued strong state-level penetration.

Speaker #3: For the full year, we continue to expect our diversified markets revenue to be up high single digits, consistent with the guidance we provided in February.

Speaker #3: We expect government revenue in the second quarter to be about flat sequentially against a very tough comp from the SSA contract win last year and timing of state contract activations.

Speaker #3: We expect strong execution from EFX. AI-driven new products and customer share gains to allow us to deliver at the levels consistent with our February framework.

Speaker #3: We continue to see strong momentum in government from OB3 and the big $5 billion TAM that they operate in. Talent solutions revenue was up almost 10% in the quarter, this is the second consecutive quarter of high single-digit revenue growth and a challenging white-collar hiring market.

Speaker #3: We also expect to deliver strong full-year margin expansion excluding FICO of 75 basis points from operating leverage off strong top-line growth, higher margin new products, and AI-driven productivity.

Speaker #3: The 75 basis points is 25 basis points above our 50 basis point long-term margin framework. Turning to slide five, Workforce Solutions revenue was up over 10% and better than our expectations.

Mark Begor: The 75 basis points is 25 basis points above our 50 basis point long-term margin framework. Turning to slide 5, Workforce Solutions revenue was up over 10% and better than our expectations. Verification revenue was up a strong 14% with diversified markets revenue growth of 14%, which is a great start to the year. Within diversified markets, government had a very strong quarter building off their Q4 performance with revenue up mid-double digits from continued strong state-level penetration. We expect government revenue in Q2 to be about flat sequentially against a very tough comp from the SSA contract win last year and timing of state contract activations. We continue to see strong momentum in government from OB3 in the big $5 billion TAM that they operate in. Talent Solutions revenue was up almost 10% in the quarter.

Speaker #3: In February, we discussed weaker hiring volumes in January that had begun to improve later in the quarter. Despite the overall weaker hiring macro in the first quarter, talent solutions continue to outperform their underlying markets driven by client penetration, higher hit rates from record editions, pricing, and product penetration including data incarceration and education solutions.

Speaker #3: Verifier revenue was up a strong 14%, with Diversified Markets revenue growth of 14%, which is a great start to the year. Within Diversified Markets, Government had a very strong quarter, building off their fourth quarter performance, with revenue up mid–double digits from continued strong state-level penetration.

Speaker #3: The team is doing a great job delivering new solutions to the market, enabling employers to make the right hires with speed and confidence. EWS mortgage revenue was up a strong 14% in the quarter from better-than-expected volumes, new products including twin income qualify for mortgage, record growth, and pricing.

Speaker #3: We expect government revenue in the second quarter to be about flat sequentially, against a very tough comp from the SSA contract win last year and timing of state contract activations.

Speaker #3: We continue to see strong momentum in Government from OB3 and the big $5 billion TAM that they operate in. Talent Solutions revenue was up almost 10% in the quarter.

Speaker #3: Consumer lending continues to perform very well with revenue up strong mid-double digits from double-digit revenue growth in P loans and auto. This is the seventh consecutive quarter of double-digit revenue growth in these verticals.

Speaker #3: This is the second consecutive quarter of high single-digit revenue growth in a challenging white-collar hiring market. In February, we discussed weaker hiring volumes in January that had begun to improve later in the quarter.

Mark Begor: This is the second consecutive quarter of high single-digit revenue growth in a challenging white-collar hiring market. In February, we discussed weaker hiring volumes in January that had begun to improve later in the quarter. Despite the overall weaker hiring macro in Q1, Talent Solutions continued to outperform their underlying markets driven by client penetration, higher hit rates from record additions, pricing, and product penetration, including data incarceration and education solutions. The team is doing a great job delivering new solutions to the market, enabling employers to make the right hires with speed and confidence. EWS mortgage revenue was up a strong 14% in the quarter from better than expected volumes, new products including twin income qualify for mortgage, record growth, and pricing. Consumer lending continues to perform very well, with revenue up strong mid-double digits from double-digit revenue growth in personal loans and auto.

Speaker #3: Consumer lending is increasingly becoming a larger portion of Verifier revenue. Workforce solutions EBITDA margins of 52.3% were very strong and up 200 basis points versus last year from operating leverage from higher revenue growth and AI-driven productivity, while continuing to invest in new products, government, and record editions.

Speaker #3: Despite the overall weaker hiring macro in the first quarter, Talent Solutions continue to outperform their underlying markets, driven by client penetration, higher hit rates from record editions, pricing, and product penetration, including data verification and education solutions.

Speaker #3: Twin record editions continue to be very strong again in the first quarter with $211 million active records up 11% and $120 million total current records up 9%, which represents 105 million unique SSNs.

Speaker #3: The team is doing a great job delivering new solutions to the market, enabling employers to make the right hires with speed and confidence. EWS mortgage revenue was up a strong 14% in the quarter from better-than-expected volumes, new products including twin-income qualify for mortgage, record growth, and pricing.

Speaker #3: The record growth drives higher hit rates and revenue growth and outperformance against underlying markets across our EWS, Verifier verticals. In addition to payroll provider partnerships, EWS continues to expand relationships outside of the traditional payroll processing space including HR software companies, to obtain additional sources of income and employment data.

Speaker #3: Consumer lending continues to perform very well, with revenue up strong mid-double digits from double-digit revenue growth in P loans and auto. This is the seventh consecutive quarter of double-digit revenue growth in these verticals.

Mark Begor: This is the seventh consecutive quarter of double-digit revenue growth in these verticals. Consumer lending is increasingly becoming a larger portion of Verifier revenue. Workforce Solutions' EBITDA margins of 52.3% were very strong and up 200 basis points versus last year from operating leverage from higher revenue growth and AI-driven productivity while continuing to invest in new products, government, and record additions. New record additions continued to be very strong again in Q1, with 211 million active records up 11% and 120 million total current records up 9%, which represents 105 million unique SSNs. The record growth drives higher hit rates and revenue growth and outperformance against underlying markets across our EWS Verifier verticals. In addition to payroll provider partnerships, EWS continues to expand relationships outside of the traditional payroll processing space, including HR software companies, to obtain additional sources of income and employment data.

Speaker #3: Consumer lending is increasingly becoming a larger portion of Verifier revenue. Workforce Solutions EBITDA margins of 52.3% were very strong and up 200 basis points versus last year from operating leverage from higher revenue growth and AI-driven productivity, while continuing to invest in new products, government, and record editions.

Speaker #3: We have a long runway for record growth against 250 million income-producing Americans. Turning to slide six, we remain energized about the mid and long-term growth opportunities for EWS government at both the federal and the state level in meeting new federal requirements regarding accuracy of income validation and Medicaid and SNAP, as well as work, education, and community engagement requirements in Medicaid benefits.

Speaker #3: Twin record editions continue to be very strong again in the first quarter with 211 million active records up 11% and 120 million total current records up 9%, which represents 105 million unique SSNs.

Speaker #3: We are seeing strong interest with our pipelines for new and existing expanded government services up over 2X versus last year. As is typical in government, we are seeing some timing issues in new deal closures and activations as state-managed technology implementations and challenging budget frameworks.

Speaker #3: The record growth drives higher hit rates and revenue growth and outperformance against underlying markets across our EWS Verifier verticals. In addition to payroll provider partnerships, EWS continues to expand relationships outside of the traditional payroll processing space including HR software companies to obtain additional sources of income and employment data.

Speaker #3: We continue to expect to see the benefit of the new OB3 opportunities later in '26 and in '27 and beyond. As state agencies implement required validations of expanded work requirements and increase redeterminations for certain Medicaid populations, and take actions to reduce SNAP error rates, EQUIFAX is serving as a key advisor leveraging our differentiated income and employment data to drive speed, accuracy, and productivity.

Speaker #3: We have a long runway for record growth against 250 million income-producing Americans. Turning to slide six, we remain energized about the mid- and long-term growth opportunities for EWS government at both the federal and state levels in meeting new federal requirements regarding accuracy of income validation in Medicaid and SNAP, as well as work, education, and community engagement requirements in Medicaid benefits.

Mark Begor: We have a long runway for record growth against 250 million income-producing Americans. Turning to slide 6, we remain energized about the mid- and long-term growth opportunities for EWS Government at both the federal and the state level in meeting new federal requirements regarding accuracy of income validation in Medicaid and SNAP, as well as work, education, and community engagement requirements in Medicaid benefits. We are seeing strong interest with our pipelines for new and existing expanded government services up over 2x versus last year. As is typical in government, we are seeing some timing issues in new deal closures and activations as states manage technology implementations and challenging budget frameworks.

Speaker #3: Our new products such as continuous evaluations for SNAP, built using EFX.AI that we launched in the first quarter, have already delivered strong results for a few states by identifying errors within their beneficiary populations.

Speaker #3: We also see expanding opportunities with multiple federal agencies in support of their focus on reducing improper payments. Given our strong value proposition from Twin on speed of social service delivery, caseworker productivity, and accuracy of income verifications, we are uniquely positioned with our differentiated Twin data assets and new solutions to help state agencies increase efficiency and strengthen program integrity particularly with SNAP and CMS.

Speaker #3: We continue to expect to see the benefit of the new OB3 opportunities later in '26 and in '27 and beyond. As state agencies implement required validations of expanded work requirements and increase redeterminations for certain Medicaid populations, and take actions to reduce SNAP error rates, Equifax is serving as a key advisor, leveraging our differentiated income and employment data to drive speed, accuracy, and productivity.

Mark Begor: We continue to expect to see the benefit of the new OB3 opportunities later in 2026 and in 2027 and beyond. As state agencies implement required validations of expanded work requirements and increase redeterminations for certain Medicaid populations and take actions to reduce SNAP error rates, Equifax is serving as a key advisor, leveraging our differentiated income and employment data to drive speed, accuracy, and productivity. Our new products, such as Continuous Evaluation for SNAP, built using EFX.AI that we launched in Q1, have already delivered strong results for a few states by identifying errors within their beneficiary population. We also see expanding opportunities with multiple federal agencies in support of their focus on reducing improper payments.

Speaker #3: EWS has significant opportunities for long-term revenue growth supporting government programs and their big $5 billion TAM. Turning to slide seven before discussing USIS results, I'd like to welcome David Smith, our new USIS president, to the team.

Speaker #3: Our new products, such as continuous evaluations for SNAP built using EFX.AI that we launched in the first quarter, have already delivered strong results for a few states by identifying errors within their beneficiary population.

Speaker #3: David's broad consumer finance experience, proven executive leadership, customer focus, innovation capabilities, and regulatory depth will be a big asset for USIS as they drive innovation and revenue growth for their customers.

Speaker #3: We also see expanding opportunities with multiple federal agencies in support of their focus on reducing improper payments. Given our strong value proposition from Twin on speed of social service delivery, caseworker productivity, and accuracy of income verifications, we are uniquely positioned with our differentiated Twin data assets and new solutions to help state agencies increase efficiency, and strengthen program integrity particularly with SNAP and CMS.

Speaker #3: It's great to have David on the EQUIFAX team. In the first quarter, USIS revenue was up a very strong 21% and 8% excluding FICO driven by significant mortgage outperformance.

Mark Begor: Given our strong value proposition from Twin on speed of social service delivery, caseworker productivity, and accuracy of income verifications, we are uniquely positioned with our differentiated Twin data assets and new solutions to help state agencies increase efficiency and strengthen program integrity, particularly with SNAP and CMS. EWS has significant opportunities for long-term revenue growth, supporting government programs and their big $5 billion TAM. Turning to slide 7, before discussing USIS results, I'd like to welcome David Smith, our new USIS president, to the team. David's broad consumer finance experience, proven executive leadership, customer focus, innovation capabilities, and regulatory depth will be a big asset for USIS as they drive innovation and revenue growth for their customers. It's great to have David on the Equifax team. In Q1, USIS revenue was up a very strong 21% and 8% excluding FICO, driven by significant mortgage outperformance.

Speaker #3: The 8% growth is strong and at the high end of our 6 to 8 percent long-term framework for USIS. USIS mortgage revenue was up 60% and up a strong 24% excluding FICO and better than our expectations.

Speaker #3: USIS saw meaningful share gains in mortgage pre-approval, soft pull products with our new Twin indicator contributing to mortgage revenue outperformance in the quarter. And as mentioned previously, USIS saw increased mortgage activity in the middle of the quarter before rate increases from the Iran conflict reduced activity over the past six weeks.

Speaker #3: USIS diversified markets revenue grew 3% in the quarter and we're slightly below our expectations with B2B up 2% and B2C up a strong 9%.

Speaker #3: It's great to have David on the Equifax team. In the first quarter, USIS revenue was up a very strong 21%, and 8% excluding FICO, driven by significant mortgage outperformance.

Speaker #3: While B2B delivered low single-digit growth rates, core online auto and FI transaction revenue delivered solid mid-single-digit growth. Offline batch was about flat, principally related to a tough comp due to the strength in offline batch jobs last year.

Speaker #3: The 8% growth is strong and at the high end of our 6% to 8% long-term framework for USIS. USIS mortgage revenue was up 60%, and up a strong 24% excluding FICO—and better than our expectations.

Mark Begor: The 8% growth is strong and at the high end of our 6% to 8% long-term framework for USIS. USIS mortgage revenue was up 60% and up a strong 24% excluding FICO and better than our expectations. USIS saw meaningful share gains in mortgage pre-approval soft pull products with our new Twin indicator contributing to mortgage revenue outperformance in the quarter. As mentioned previously, USIS saw increased mortgage activity in the middle of the quarter before rate increases from the Iran conflict reduced activity over the past six weeks. USIS diversified markets revenue grew 3% in the quarter and were slightly below our expectations, with B2B up 2% and B2C up a strong 9%. While B2B delivered low single-digit growth rates, core online auto and FI transaction revenue delivered solid mid-single digit growth.

Speaker #3: We did not see changes in customer marketing or risk management behavior in the quarter. We expect USIS diversified markets revenue growth to be up mid-single digits in the second quarter.

Speaker #3: USIS saw meaningful share gains in mortgage pre-approval and soft pull products, with our new Twin Indicator contributing to mortgage revenue outperformance in the quarter. And as mentioned previously, USIS saw increased mortgage activity in the middle of the quarter before rate increases from the Iran conflict reduced activity over the past six weeks.

Speaker #3: USIS EBITDA margins were 30.3% in the quarter excluding FICO, US EBITDA margins were 37.9% and down slightly compared to last year. Absence of one-time costs incurred in the quarter, margins would have grown at levels consistent with our expectations.

Speaker #3: USIS Diversified Markets revenue grew 3% in the quarter and was slightly below our expectations, with B2B up 2% and B2C up a strong 9%.

Speaker #3: We continue to expect USIS EBITDA margins ex FICO to be almost 40% in the year up over 75 basis points versus 2025. Turning to slide eight, as a reminder, we make no margin on the sale of FICO scores.

Speaker #3: FICO mortgage scores revenue is about 50% of the USIS mortgage revenue and 6% of total EQUIFAX revenue. Delivering zero margin. To be conservative, our 2026 framework continues to assume EQUIFAX will calculate and sell only FICO scores this year and there will be no vantage conversion in 2026.

Mark Begor: Offline batch was about flat, principally related to a tough comp due to the strength in offline batch jobs last year. We did not see changes in customer marketing or risk management behavior in the quarter. We expect USIS diversified markets revenue growth to be up mid-single digits in Q2. USIS EBITDA margins were 30.3% in the quarter. Excluding FICO, USIS EBITDA margins were 37.9% and down slightly compared to last year. In the absence of one-time costs incurred in the quarter, margins would have grown at levels consistent with our expectations. We continue to expect USIS EBITDA margins ex FICO to be almost 40% in the year, up over 75 basis points versus 2025. Turning to slide 8. As a reminder, we make no margin on the sale of FICO scores.

Speaker #3: We did not see changes in customer marketing or risk management behavior in the quarter. And we expect USIS diversified markets revenue growth to be up mid-single digits in the second quarter.

Speaker #3: USIS EBITDA margins were 30.3% in the quarter excluding FICO. US EBITDA margins were 37.9% and down slightly compared to last year. Absent the one-time costs incurred in the quarter, margins would have grown at levels consistent with our expectations.

Speaker #3: However, we are seeing strong momentum for mortgage originators on using Vantage. We expect conversions to Vantage score to accelerate once FHFA activates Vantage score and indications are that we're getting closer to FHFA formally activating Vantage score for agency mortgage originations.

Speaker #3: We continue to expect USIS EBITDA margins ex-FICO to be almost 40% in the year, up over 75 basis points versus 2025. Turning to slide eight, as a reminder, we make no margin on the sale of FICO scores.

Speaker #3: A few weeks ago, we lowered our Vantage mortgage pricing from 450 to $1 to further incent conversion by the industry. We believe this pricing change will further accelerate mortgage originator conversions to Vantage given the substantial $1 billion of annual savings opportunity for originators and consumers by using Vantage.

Speaker #3: FICO mortgage scores revenue is about 50% of the USIS mortgage revenue and 6% of total Equifax revenue, delivering zero margin. To be conservative, our 2026 framework continues to assume Equifax will calculate and sell only FICO scores this year, and there will be no Vantage conversion in 2026.

Mark Begor: FICO mortgage scores revenue is about 50% of the USIS mortgage revenue and 6% of total Equifax revenue, delivering zero margin. To be conservative, our 2026 framework continues to assume Equifax will calculate and sell only FICO scores this year, and there will be no VantageScore conversion in 2026. However, we are seeing strong momentum for mortgage originators on using VantageScore. We expect conversions to VantageScore to accelerate once FHFA activates VantageScore, and indications are that we're getting closer to FHFA formally activating VantageScore for agency mortgage originations. A few weeks ago, we lowered our VantageScore mortgage pricing from $4.50 to $1 to further incent conversion by the industry. We believe this pricing change will further accelerate mortgage originator conversions to VantageScore, given the substantial $1 billion of annual savings opportunity for originators and consumers by using VantageScore.

Speaker #3: The FHFA's decision last July to allow mortgage score choice between Vantage and FICO is a win for consumers and for the industry. We currently have over 240 mortgage originators ingesting our free Vantage score with a paid FICO score offering.

Speaker #3: And we have over 50 principally non-GSE mortgage lenders using Vantage for their mortgage originations. For perspective and to provide data for your analysis, we have included a chart in the appendix of our earnings deck that provides details on the annual 35 million margin upside from full conversion of Vantage score at current mortgage run rates.

Speaker #3: However, we are seeing strong momentum for mortgage originators on using Vantage. We expect conversions to VantageScore to accelerate once FHFA activates VantageScore, and indications are that we're getting closer to FHFA formally activating VantageScore for agency mortgage originations.

Speaker #3: A few weeks ago, we lowered our Vantage mortgage pricing from $450 to $1 to further incent conversion by the industry. We believe this pricing change will further accelerate mortgage originator conversions to Vantage, given the substantial $1 billion of annual savings opportunity for originators and consumers by using Vantage.

Speaker #3: As we move through 2026 and there is more clarity on Vantage conversion timing, or the FICO direct license program, we will update our guidance to reflect this shift and the opportunity for mortgage industry, consumers, and EQUIFAX.

Speaker #3: Turning to slide nine, international revenue is up 4% in constant currency and consistent with our expectations of mid-single-digit growth. International saw strong high single-digit revenue growth in Canada and ANZ and LATAM and the UK and Spain CRE businesses delivering mid-single-digit revenue growth in the quarter.

Speaker #3: The FHFA's decision last July to allow mortgage score choice between vantage and FICO is a win for consumers and for the industry. We currently have over 240 mortgage originators ingesting our free vantage score with a paid FICO score offering.

Mark Begor: The FHFA's decision last July to allow mortgage score choice between Vantage and FICO is a win for consumers and for the industry. We currently have over 240 mortgage originators ingesting our free Vantage score with a paid FICO score offering, and we have over 50 principally non-GSE mortgage lenders using Vantage for their mortgage originations. For perspective and to provide data for your analysis, we have included a chart in the appendix of our earnings deck that provides details on the annual $35 million margin upside from full conversion to Vantage score at current mortgage run rates. As we move through 2026 and there is more clarity on Vantage conversion timing or the FICO direct license program, we will update our guidance to reflect this shift and the opportunity for mortgage industry, consumers, and Equifax. Turning to slide nine.

Speaker #3: And we have over 50 principally non-GSE mortgage lenders using Vantage for their mortgage originations. For perspective, and to provide data for your analysis, we have included a chart in the appendix of our earnings deck that provides details on the annual $35 million margin upside from full conversion to VantageScore at current mortgage run rates.

Speaker #3: International EBITDA margins were 25% in the quarter up a very strong 80 basis points versus last year. Turning to slide 10, as we discussed in February, there's a strong AI moat around EQUIFAX's unique and proprietary data.

Speaker #3: 90% of EQUIFAX revenue is generated from proprietary data sources including our income and employment exchangees in the US, UK, Canada, Australia, our US and international

Speaker #1: Consumer and commercial credit exchanges , and our alternative data sets , including our NC telco and utility exchange in the US . This proprietary data is contributed to Equifax and its use is managed by Equifax and is subject to significant regulatory and privacy controls .

Speaker #3: Turning to slide nine, international revenue is up 4% in constant currency and consistent with our expectations of mid-single-digit growth. International saw strong high single-digit revenue growth in Canada and ANZ, and LATAM and the UK and Spain CRE businesses delivered mid-single-digit revenue growth in the quarter.

Mark Begor: International revenue was up 4% in constant currency and consistent with our expectations of mid-single digit growth. International saw strong high single-digit revenue growth in Canada, EMEA, LATAM, the UK, and Spain CRA businesses delivering mid-single digit revenue growth in the quarter. International EBITDA margins were 25% in the quarter, up a very strong 80 basis points versus last year. Turning to slide 10, as we discussed in February, there's a strong AI moat around Equifax's unique and proprietary data. 90% of Equifax revenue is generated from proprietary data sources, including our income and employment exchanges in the US, UK, Canada, and Australia, our US and international consumer and commercial credit exchanges, and our alternative data sets, including our NCTUE telco and utility exchange in the US.

Speaker #1: To be clear , the data is not available on the web and only Equifax can access this data Equifax is scale and proprietary data , along with our cloud native global technology platforms that include implementation of leading AI and ML capabilities , is at the center of our momentum on new product innovation .

Speaker #1: That is delivered , accelerating NPIs and driven our NPI Vitality Index to almost 14% over the past three years . The application of advanced Fxi based and traditional .

Speaker #3: Ninety percent of Equifax revenue is generated from proprietary data sources, including our income and employment exchanges in the US, UK, Canada, and Australia; our US and international consumer and commercial credit exchanges; and our alternative data sets—including our NCTUE telco and utility exchange in the US.

Speaker #1: IT based analytical techniques allows us , in our customers to rapidly develop new solutions that are built off our only Equifax proprietary data Turning to slide 11 .

Speaker #1: Our cloud native technology and Fxi capabilities have accelerated our innovation cycle over the past five years since we moved to the cloud last year .

Speaker #3: This proprietary data is contributed to Equifax and its use is managed by Equifax and is subject to significant regulatory and privacy controls. To be clear, the data is not available on the web and only Equifax can access this data.

Mark Begor: This proprietary data is contributed to Equifax and its use is managed by Equifax and is subject to significant regulatory and privacy controls. To be clear, the data is not available on the web, and only Equifax can access this data. Equifax's scale and proprietary data, along with our cloud-native global technology platforms that include implementation of leading AI and ML capabilities, is at the center of our momentum on new product innovation that has delivered accelerating NPIs and driven our NPI Vitality Index to almost 14% over the past three years. The application of advanced EFX.AI-based and traditional IT-based analytical techniques allows us and our customers to rapidly develop new solutions that are built off our only Equifax proprietary data. Turning to slide 11, our cloud-native technology and EFX.AI capabilities have accelerated our innovation cycle over the past five years since we moved to the cloud.

Speaker #1: Over 90% of our products were built on our new global cloud based platforms , with more efficient , with more efficient , cloud native technology , leveraging global platforms and fxi , we have quadrupled the number of products in our innovation funnel and reduced product development life cycles by half , resulting in a record level of new products .

Speaker #3: Equifax's scale and proprietary data, along with our cloud-native global technology platforms that include implementation of leading AI and ML capabilities, is at the center of our momentum on new product innovation. That is delivering accelerating NPIs and has driven our NPI vitality index to almost 14% over the past three years.

Speaker #1: Launched in 2025 , which was up two x over historic levels , 100% of our new models and scores in 2025 were built using Fxi .

Speaker #3: The application of advanced EFX.AI-based and traditional IT-based analytical techniques allows us and our customers to rapidly develop new solutions that are built off our only Equifax proprietary data.

Speaker #1: We're building more complex products , generating higher performance for our customers with about 50% of our new products now powered by multiple FX data assets .

Speaker #1: And last , we're seeing higher performing products with year three NPI revenue up about 70% in 2025 over historical levels We are just getting started leveraging the power of our proprietary data .

Speaker #3: Turning to slide 11, our cloud-native technology and EFX.AI capabilities have accelerated our innovation cycle over the past five years since we moved to the cloud.

Speaker #3: Last year, over 90% of our products were built on our new global cloud-based platforms. With more efficient cloud-native technology leveraging global platforms and EFX.AI, we have quadrupled the number of products in our innovation funnel and reduced product development lifecycles by half, resulting in a record level of new products launched in 2025, which is up 2x over historic levels.

Mark Begor: Last year, over 90% of our products were built on our new global cloud-based platforms. With more efficient cloud-native technology leveraging global platforms and EFX.AI, we have quadrupled the number of products in our innovation funnel and reduced product development life cycles by half, resulting in a record level of new products launched in 2025, which was up 2x over historic levels. 100% of our new models and scores in 2025 were built using EFX.AI. We're building more complex products, generating higher performance for our customers with about 50% of our new products now powered by multiple EFX data assets. Last, we're seeing higher performing products with year three NPI revenue up about 70% in 2025 over historical levels.

Speaker #1: The new Equifax Cloud and Fxi to deliver higher performing products , models and scores to help our customers grow and deliver higher growth and free cash flow to Equifax Recently , we launched ignite AI advisor for auto and AI platform that provides lenders with instant , plain English analytics , benchmarking and automated insights alongside conversational agents for deeper exploration by our customers .

Speaker #1: We expect to launch similar solutions in cards and personal loan portfolios this year , while integrating advanced synthetic and credit abuse fraud detection as f AI advances will leverage our new global cloud infrastructure combined with our angelic AI and Google Vertex AI capabilities and proprietary data to deliver higher performing analytical solutions at an accelerating pace Positioning these advanced in solutions for more customers Equifax is on offense with AI .

Speaker #3: 100% of our new models and scores in 2025 were built using EFX.AI. We're building more complex products, generating higher performance for our customers, with about 50% of our new products now powered by multiple EFX data assets.

Speaker #3: And last, we're seeing higher performing products, with year three NPI revenue up about 70% in '25 over historical levels. We are just getting started leveraging the power of our proprietary data, the new Equifax Cloud, and EFX.AI to deliver higher performing products, models, and scores to help our customers grow and deliver higher growth and free cash flow to Equifax.

Mark Begor: We are just getting started leveraging the power of our proprietary data, the new Equifax Cloud, and EFX.AI to deliver higher performing products, models, and scores to help our customers grow and deliver higher growth and free cash flow to Equifax. Recently, we launched Ignite AI Advisor for Auto, an AI platform that provides lenders with instant plain English analytics, benchmarking, and automated insights alongside conversational agents for deeper exploration by our customers. We expect to launch similar solutions in cards and personal loan portfolios this year while integrating advanced synthetic and credit abuse fraud detection. As EFX.AI advances, we'll leverage our new global cloud infrastructure combined with our Agentic AI and Google Vertex AI capabilities and proprietary data to deliver higher performing analytical solutions at an accelerating pace, positioning these advanced analytical solutions for more customers. Equifax is on offense with AI.

Speaker #1: Turning to slide 12 . As I previously mentioned , USCIS is gaining traction with their twin indicator solutions and mortgage that supported our strong mortgage revenue growth in the quarter In April , we were energized to launch the work number record indicator , or twin indicator for auto lenders and personal loan originators , which are additive to our suite of twin indicator solutions for mortgage , auto dealers and card .

Speaker #3: Recently, we launched Ignite AI Advisor for Auto, an AI platform that provides lenders with instant, plain English analytics, benchmarking, and automated insights, alongside conversational agents for deeper exploration by our customers.

Speaker #3: We expect to launch similar solutions in cards and personal loan portfolios this year, while integrating advanced synthetic and credit abuse fraud detection. As EFX.AI advances, we'll leverage our new global cloud infrastructure, combined with our energetic AI and Google Vertex AI capabilities and proprietary data, to deliver higher-performing analytical solutions at an accelerating pace, positioning these advanced analytical solutions for more customers.

Speaker #1: These solutions deliver income and employment insights from the work number , alongside the Equifax Consumer Credit Report at the Pre-qual or marketing stage of the auto or personal loan application process .

Speaker #1: The twin indicator returns a response indicating whether a verification of income or employment is available for an applicant from the U.S. . Work number .

Speaker #1: This immediate visibility gives lenders the ability to instantly segment their workflows , fast tracking appropriate borrowers through an automated , paperless path while proactively identifying those who may require manual documentation .

Speaker #3: Equifax is on offense with AI. Turning to slide 12, as I previously mentioned, USIS is gaining traction with their twin indicator solutions in mortgage that supported our strong mortgage revenue growth in the quarter.

Mark Begor: Turning to slide 12, as I previously mentioned, USIS is gaining traction with their twin indicator solutions for mortgage that supported our strong mortgage revenue growth in the quarter. In April, we were energized to launch The Work Number Record Indicator, or twin indicator, for auto lenders and personal loan originators, which are additive to our suite of twin indicator solutions for mortgage, auto dealers, and card. These solutions deliver income and employment insights from The Work Number alongside the Equifax Consumer Credit Report at the pre-qual or marketing stage of the auto or personal loan application process. The twin indicator returns a response indicating whether a verification of income or employment is available for an applicant from the EWS Work Number.

Speaker #1: By reducing guesswork from the start of the application process , lenders can offer appropriate loans . While borrowers can benefit from a faster approval process We expect continued share gains from our twin indicator suite as we move through 2026 .

Speaker #3: In April, we were energized to launch the Work Number record indicator, or twin indicator, for auto lenders and personal loan originators, which are additive to our suite of twin indicator solutions for mortgage, auto dealers, and card.

Speaker #1: And as a reminder , Equifax is delivering twin incumbent employment attributes at no cost to our customers to drive credit file share gains in twin V , O , Y and veo growth in the future .

Speaker #3: These solutions deliver income and employment insights from The Work Number alongside the Equifax consumer credit report at the pre-qual or marketing stage of the auto or personal loan application process.

Speaker #1: Now I'd like to turn it over to John to provide our second quarter and full year framework Thanks , Mark

Speaker #3: The Twin Indicator returns a response indicating whether a verification of income or employment is available for an applicant from the EWS Work Number. This immediate visibility gives lenders the ability to instantly segment their workflows, fast-tracking appropriate borrowers through an automated, paperless path while proactively identifying those who may require manual documentation.

Speaker #2: Slide 13 provides the specifics of our 2026 full year guidance . As Mark indicated , we are holding our full year 2026 revenue guidance on a constant currency basis to be unchanged from our February guidance .

Mark Begor: This immediate visibility gives lenders the ability to instantly segment their workflows, fast-tracking appropriate borrowers through an automated paperless path while proactively identifying those who may require manual documentation. By reducing guesswork from the start of the application process, lenders can offer appropriate loans while borrowers can benefit from a faster approval process. We expect continued share gains from our twin indicator suite as we move through 2026. As a reminder, Equifax is delivering twin income and employment attributes at no cost to our customers to drive credit file share gains in twin VOI and VOE growth in the future. Now I'd like to turn it over to John to provide our Q2 and full year framework.

Speaker #2: Even with our strong first quarter performance , there continues to be a heightened level of economic uncertainty as well as uncertainty in the direction of interest rates and therefore mortgage volumes .

Speaker #3: By reducing guesswork from the start of the application process, lenders can offer appropriate loans while borrowers can benefit from a faster approval process. We expect continued share gains from our Twin Indicator Suite as we move through 2026.

Speaker #2: We increased our guidance to reflect the impact of FX changes since February , increasing the midpoint of our reported revenue guidance by $25 million to $6.745 billion and adjusted EPS by $0.04 per share to 8.54 per share FX is about 90 basis points favorable to revenue growth for the year .

Speaker #3: And as a reminder, Equifax is delivering twin income and employment attributes at no cost to our customers to drive credit file share gains in twin VOI and VOE growth in the future.

Speaker #2: Diversified markets revenue growth at the midpoint is expected to be up high single digits , and US mortgage revenue to be up over 20% , with mortgage market originations down low , single digits for your perspective .

Speaker #3: Now I'd like to turn it over to John to provide our second quarter and full-year framework.

Speaker #2: Thanks, Mark. Slide 13 provides the specifics of our 2026 full year guidance. As Mark indicated, we are holding our full year 2026 revenue guidance on a constant currency basis to be unchanged from our February guidance.

John Gamble: Thanks, Mark. Slide 13 provides the specifics of our 2026 full year guidance. As Mark indicated, we are holding our full year 2026 revenue guidance on a constant currency basis to be unchanged from our February guidance. Even with our strong Q1 performance, there continues to be a heightened level of economic uncertainty as well as uncertainty in the direction of interest rates, and therefore mortgage volumes. We increased our guidance to reflect the impact of FX changes since February, increasing the midpoint of our reported revenue guidance by $25 million to $6.745 billion, and adjusted EPS by 4 cents per share to $8.54 per share. FX is about 90 basis points favorable to revenue growth for the year.

Speaker #2: As you determine your view of the 2026 US mortgage market based on a review of Equifax data on mortgage , home purchase issuances .

Speaker #2: Since early 2022 . We estimate that there are over 15 million mortgages that were issued with an interest rate over 5% , including about 13.5 million , with rates over 6% and over 9.5 million , with rates over 6.5% .

Speaker #2: Even with our strong first quarter performance, there continues to be a heightened level of economic uncertainty, as well as uncertainty in the direction of interest rates and, therefore, mortgage volumes.

Speaker #2: We increased our guidance to reflect the impact of FX changes since February, increasing the midpoint of our reported revenue guidance by $25 million to $6.745 billion, and adjusted EPS by 4 cents per share to $8.54 per share.

Speaker #2: This provides a perspective on the pool of mortgages , potentially available to refinance as mortgage rates change Expectations for overall performance in 2026 are unchanged from the levels we discussed in February , with AWS expected to deliver revenue growth of high single digits and EBITDA margins at 51.2% to 51.7% , about flat at the midpoint , with 2025 .

Speaker #2: FX is about 90 basis points favorable to revenue growth for the year. Diversified markets revenue growth at the midpoint is expected to be up high single digits, and U.S. mortgage revenue to be up over 20%.

John Gamble: Diversified markets revenue growth at the midpoint is expected to be up high single digits, and US mortgage revenue to be up over 20%, with mortgage market originations down low single digits. For your perspective, as you determine your view of the 2026 US mortgage market, based on a review of Equifax data on mortgage home purchase issuances since early 2022, we estimate that there are over 15 million mortgages that were issued with an interest rate over 5%, including about 13.5 million with rates over 6%, and over 9.5 million with rates over 6.5%. This provides a perspective on the pool of mortgages potentially available to refinance as mortgage rates change.

Speaker #2: We continue to expect verification services revenue to be up high single digits to low double digits in employer services , revenue is now expected to decline slightly in 2026 , as work Opportunity Tax Credit legislation has not been extended by the federal government Historically , when the renewal occurs , it has been retroactive and we would expect to recover the revenue .

Speaker #2: With mortgage market originations down low single digits, from our perspective, as you determine your view of the 2026 US mortgage market, based on a review of Equifax data on mortgage home purchase issuances since early 2022, we estimate that there are over 15 million mortgages that were issued with an interest rate over 5%, including about 13.5 million with rates over 6%, and over 9.5 million with rates over 6.5%.

Speaker #2: USCIS and international Business Unit revenue growth and EBITDA margin guidance . Expectations are unchanged from February . The slide also includes additional detail on revenue growth rates and EBITDA margins , excluding Fico mortgage score , royalty pass through revenue and expected view revenue and EBITDA margins .

Speaker #2: This provides a perspective on the pool of mortgages potentially available to refinance as mortgage rates change. Expectations for EWS overall performance in 2026 are unchanged from the levels we discussed in February, with EWS expected to deliver revenue growth of high single digits and EBITDA margins at 51.2% to 51.7%, about flat at the midpoint with 2025.

John Gamble: Expectations for EWS overall performance in 2026 are unchanged from the levels we discussed in February, with EWS expected to deliver revenue growth of high single digits and EBITDA margins at 51.2% to 51.7%, about flat at the midpoint with 2025. We continue to expect Verification Services revenue to be up high single digits to low double digits. In employer services, revenue is now expected to decline slightly in 2026, as Work Opportunity Tax Credit legislation has not been extended by the federal government. Historically, when the renewal occurs, it has been retroactive, and we would expect to recover the revenue. USIS and International Business Unit revenue growth and EBITDA margin guidance expectations are unchanged from February. The slide also includes additional detail on revenue growth rates and EBITDA margins, excluding FICO mortgage score royalty pass-through revenue and expected VU revenue and EBITDA margins.

Speaker #2: We expect to deliver growth of 7 to 9% , excluding the impact of Fico mortgage royalties in 2026 . Within our long term financial framework , and we expect to grow EBITDA margins excluding the impact of Fico mortgage royalties , by a strong 75 basis points , which is 25 basis points above our long term framework in 2026 , we expect to deliver over 1 billion of free cash flow and a cash flow conversion of at least 100% .

Speaker #2: We continue to expect Verification Services revenue to be up high single digits to low double digits. In Employer Services, revenue is now expected to decline slightly in 2026, as Work Opportunity Tax Credit legislation has not been extended by the federal government.

Speaker #2: Historically, when the renewal occurs, it has been retroactive, and we would expect to recover the revenue. USIS and International business unit revenue growth and EBITDA margin guidance expectations are unchanged from February.

Speaker #2: As we discussed in February with EBITDA increasing to about $2.1 billion at the midpoint . We are also generating an additional $400 million in debt capacity at our current debt leverage .

Speaker #2: This creates $1.5 billion in capital available in 2026 for M&A and return of cash to shareholders . We continue to look for attractive bolt on M&A to strengthen workforce solutions .

Speaker #2: The slide also includes additional detail on revenue growth rates and EBITDA margins, excluding FICO mortgage score royalty pass-through revenue, and expected BU revenue and EBITDA margins.

Speaker #2: Our differentiated proprietary data assets , as well as international platforms . And we have substantial capacity for share repurchases , continuing from the $260 million we repurchased in the first quarter .

Speaker #2: We expect to deliver growth of 7 to 9 percent, excluding the impact of FICO mortgage royalties, in 2026 within our long-term financial framework. And we expect to grow EBITDA margins, excluding the impact of FICO mortgage royalties, by a strong 75 basis points, which is 25 basis points above our long-term framework.

John Gamble: We expect to deliver growth of 7% to 9%, excluding the impact of FICO mortgage royalties in 2026 within our long-term financial framework. We expect to grow EBITDA margins, excluding the impact of FICO mortgage royalties by a strong 75 basis points, which is 25 basis points above our long-term framework. In 2026, we expect to deliver over $1 billion of free cash flow and a cash flow conversion of at least 100%. As we discussed in February, with EBITDA increasing to about $2.1 billion at the midpoint, we are also generating an additional $400 million in debt capacity at our current debt leverage. This creates $1.5 billion in capital available in 2026 for M&A and return of cash to shareholders. We continue to look for attractive bolt-on M&A to strengthen Workforce Solutions, our differentiated proprietary data assets, as well as international platforms.

Speaker #2: Slide 14 provides the details of our two Q 26 guidance in two Q 26 . We expect total Equifax revenue to be between 1.680 and $1.710 billion , up 10.3% on a reported basis year to year .

Speaker #2: In 2026, we expect to deliver over $1 billion of free cash flow and a cash flow conversion of at least 100%. As we discussed in February, with EBITDA increasing to about $2.1 billion at the midpoint, we are also generating an additional $400 million in debt capacity at our current debt leverage.

Speaker #2: At the midpoint , constant dollar revenue growth at the midpoint is up 9.4% , excluding the impact of Fico mortgage scores , two Q 26 reported revenues expected to be up about 6.5% at the midpoint .

Speaker #2: This creates $1.5 billion in capital available in 2026 for M&A and return of cash to shareholders. We continue to look for attractive bolt-on M&A to strengthen workforce solutions.

Speaker #2: Diversified markets revenue is expected to be up mid-single digits on a constant currency basis and down sequentially from first quarter . Given the more difficult AWS government comparison that mark discussed .

Speaker #2: Our differentiated proprietary data assets, as well as international platforms. And we have substantial capacity for share repurchases, continuing from the $260 million we repurchased in the first quarter.

Speaker #2: US mortgage revenue is expected to be up over 20% and high single digits , excluding Fico royalties . EPS in two 26 is expected to be 215 to 225 per share , up about 10% versus two Q 25 at the midpoint Equifax two Q 26 EBITDA dollars are expected to be 537 to $554 million , up just over 9% at the midpoint .

John Gamble: We have substantial capacity for share repurchases continuing from the $260 million we repurchased in Q1. Slide 14 provides the details of our Q2 2026 guidance. In Q2 2026, we expect total Equifax revenue to be between $1.680 and $1.710 billion, up 10.3% on a reported basis year to year at the midpoint. Constant dollar revenue growth at the midpoint is up 9.4%. Excluding the impact of FICO mortgage scores, Q2 2026 reported revenue is expected to be up about 6.5% at the midpoint. Diversified markets revenue is expected to be up mid-single digits on a constant currency basis and down sequentially from Q1, given the more difficult EWS government comparison that Mark discussed. US mortgage revenue is expected to be up over 20% and high single digits excluding FICO royalties.

Speaker #2: Slide 14 provides the details of our Q2, 2026 guidance. In Q2, 2026, we expect total EQUIFAX revenue to be between 1.680 and 1.710 billion dollars, up 10.3% on a reported basis year to year at the midpoint.

Speaker #2: EBITDA margins are expected to be about 32.2% at the midpoint of our guidance , and excluding the impact of Fico mortgage royalties , EBITDA margins in two Q 26 would be 34.3 to 34.7% , up over 80 basis points at the midpoint from two Q 25 on the same basis .

Speaker #2: Constant dollar revenue growth at the midpoint is up 9.4%. Excluding the impact of FICO mortgage scores, Q2 2026 reported revenue is expected to be up about 6.5% at the midpoint.

Speaker #2: Diversified markets revenue is expected to be up mid-single digits on a constant currency basis and down sequentially from first quarter given the more difficult EWS government comparison that Mark discussed.

Speaker #2: We believe that our full year and two Q 26 guidance are centered at the midpoint of both our revenue and EPS guidance ranges in the supplemental information to this presentation , which will be shared after this call .

Speaker #2: US mortgage revenue is expected to be up over 20%, and high single digits excluding FICO royalties. EPS in Q2 2026 is expected to be $2.15 to $2.25 per share, up about 10% versus Q2 2025 at the midpoint.

Speaker #2: We have added a slide that provides a five year view of US mortgage originations by quarter . The data is determined based on submissions to Equifax's .

John Gamble: EPS in Q2 2026 is expected to be $2.15 to $2.25 per share, up about 10% versus Q2 2025 at the midpoint. Equifax Q2 2026 EBITDA dollars are expected to be $537 to $554 million, up just over 9% at the midpoint. EBITDA margins are expected to be about 32.2% at the midpoint of our guidance. Excluding the impact of FICO mortgage royalties, EBITDA margins in Q2 2026 would be 34.3% to 34.7%, up over 80 basis points at the midpoint from Q2 2025 on the same basis. We believe that our full year and Q2 2026 guidance are centered at the midpoint of both our revenue, and EPS guidance ranges. In the supplemental information to this presentation, which will be shared after this call, we have added a slide that provides a five-year view of US mortgage originations by quarter. The data is determined based on submissions to Equifax's US consumer credit file.

Speaker #2: US Consumer Credit File . Going forward , we will update this slide to provide originations data 90 days in arrears . So today we are providing data through December 2025 as full contributor mortgage origination data can take up to 150 days .

Speaker #2: Equifax Q2 2026 EBITDA dollars are expected to be $537 to $554 million, up just over 9% at the midpoint. EBITDA margins are expected to be about 32.2% at the midpoint of our guidance.

Speaker #2: We will update this slide each quarter based on any updated data we receive , as we did in February . Going forward , our guidance will include our expectations for US mortgage originations for the current calendar year .

Speaker #2: And excluding the impact of FICO mortgage royalties, EBITDA margins in Q2 2026 would be 34.3% to 34.7%, up over 80 basis points at the midpoint from Q2 2025 on the same basis.

Speaker #2: As a reminder , this mortgage detail and more analytical detail based on the Equifax US credit files are published monthly in our credit trends reports and can be found on our website under Business Trends and Insights Historically , Equifax has provided USCIS hard mortgage credit inquiries as a measure of U.S.

Speaker #2: We believe that our full-year and Q2 2026 guidance are centered at the midpoint of both our revenue and EPS guidance ranges. In the supplemental information to this presentation, which will be shared after this call, we have added a slide that provides a five-year view of U.S. mortgage originations by quarter.

Speaker #2: mortgage market activity . Given changes that have occurred over the last several years and how mortgage originators use hard and soft mortgage inquiries during the loan origination process , hard inquiry volumes have become less correlated to changes in the US mortgage market .

Speaker #2: The data is determined based on submissions to Equifax's U.S. consumer credit file. Going forward, we will update this slide to provide originations data 90 days in arrears, so today we are providing data through December 2025.

John Gamble: The data is determined based on submissions to Equifax's US consumer credit file.

John Gamble: Going forward, we will update this slide to provide originations data 90 days in arrears. Today, we are providing data through December 2025. As full contributor mortgage origination data can take up to 150 days, we will update this slide each quarter based on any updated data we receive. As we did in February, going forward, our guidance will include our expectations for US mortgage originations for the current calendar year. As a reminder, this mortgage detail and more analytical detail based on the Equifax US credit files are published monthly in our Credit Trends reports and can be found on our website under Business Trends and Insights. Historically, Equifax has provided USIS hard mortgage credit inquiries as a measure of US mortgage market activity.

Speaker #2: Originations . As such , we will stop disclosing USCIS mortgage hard credit inquiries beginning in 2027 . Now , I'd like to turn it back over to Mark

Speaker #2: As full contributor mortgage origination data can take up to 150 days, we will update this slide each quarter based on any updated data we receive.

Speaker #1: Thanks , John . Wrapping up on slide 15 , Equifax is off to a strong start in 2026 . Executing very well against our FX 2028 strategic priorities in a challenging economic environment .

Speaker #2: As we did in February, going forward our guidance will include our expectations for U.S. mortgage originations for the current calendar year. As a reminder, this mortgage detail, and more analytical detail based on the Equifax U.S. credit files, are published monthly in our credit trends reports and can be found on our website under Business Trends and Insights.

Speaker #1: The new Equifax is leveraging the Equifax Cloud Fxi and proprietary data assets to accelerate innovation and help our customers grow with the FX cloud transformation substantially complete .

Speaker #2: Historically, EQUIFAX has provided USIS hard mortgage credit inquiries as a measure of US mortgage market activity. Given changes that have occurred over the last several years in how mortgage originators use hard and soft mortgage inquiries during the loan origination process, hard inquiry volumes have become less correlated to changes in the US mortgage market originations.

Speaker #1: We are focused on leveraging the new cloud capabilities and focusing our team on Fxi and NPI initiatives to deliver innovation to our customers , resulting in record levels 17% Vitality Index in the quarter and driving operational efficiencies inside of Equifax We are using our single data fabric Fxi and ignite our analytics platform to develop new credit solutions powered by twin indicators in verticals like mortgage , auto card and loan that only Equifax can provide , which is leading to share gains and incremental growth Our first quarter financial results are a strong proof point on the broad based Equifax operating model , including the strong 80 basis points of EBITDA margin expansion in the quarter .

John Gamble: Given changes that have occurred over the last several years in how mortgage originators use hard and soft mortgage inquiries during the loan origination process, hard inquiry volumes have become less correlated to changes in the US mortgage market originations. As such, we will stop disclosing USIS mortgage hard credit inquiries beginning in 2027. Now I'd like to turn it back over to Mark.

Speaker #2: As such, we will stop disclosing USIS mortgage hard credit inquiries beginning in 2027. Now, I'd like to turn it back over to Mark.

Speaker #1: Thanks, John. Wrapping up on slide 15, EQUIFAX is off to a strong start in 2026 executing very well against our EFX 2028 strategic priorities in a challenging economic environment.

Mark Begor: Thanks, John. Wrapping up on slide 15, Equifax is off to a strong start in 2026, executing very well against our EFX 2028 strategic priorities in a challenging economic environment. The new Equifax is leveraging the Equifax Cloud, EFX.AI, and proprietary data assets to accelerate innovation and help our customers grow. With the EFX Cloud transformation substantially complete, we are focused on leveraging the new cloud capabilities and focusing our team on EFX.AI and NPI initiatives to deliver innovation to our customers, resulting in record-level 17% Vitality Index in the quarter, and driving operational efficiencies inside of Equifax. We are using our single data fabric, EFX.AI, and Ignite, our analytics platform, to develop new credit solutions powered by trended indicators in verticals like mortgage, auto, card, and P-loan that only Equifax can provide, which is leading to share gains and incremental growth.

Speaker #1: The new Equifax is leveraging the Equifax Cloud, EFX.AI, and proprietary data assets to accelerate innovation and help our customers grow. With the EFX Cloud transformation substantially complete, we are focused on leveraging the new cloud capabilities and focusing our team on EFX.AI and NPI initiatives to deliver innovation to our customers, resulting in a record-level 17% vitality index in the quarter and driving operational efficiencies inside of Equifax.

Speaker #1: Given our strong free cash flow generation with cash conversion over 100% in 2026 . We're also delivering on our commitment to return substantial excess free cash flow to our shareholders .

Speaker #1: In the first quarter , we returned 327 million to shareholders , and in 2026 , we expect to have $1.5 billion available to invest in both bolt on M&A and return cash to shareholders through share repurchases and dividends I'm energized about our strong start to 2026 , but even more energized about the future of the new Equifax .

Speaker #1: We are using our single data fabric EFX.AI and Ignite our analytics platform to develop new credit solutions powered by twin indicators and verticals like mortgage, auto, card, and P loan that only EQUIFAX can provide which is leading to share gains and incremental growth.

Speaker #1: And with that , operator , let me open it up for questions

Speaker #3: Thank you . We'll now be conducting a question and answer session . If you'd like to be placed into question , queue , please press star one on your telephone keypad .

Speaker #1: Our first quarter financial results are a strong proof point on the broad-based EQUIFAX operating model including the strong 80 basis point of EBITDA margin expansion in the quarter.

Mark Begor: Our Q1 financial results are a strong proof point on the broad-based Equifax operating model, including the strong 80 basis points of EBITDA margin expansion in the quarter. Given our strong free cash flow generation with cash conversion over 100% in 2026, we're also delivering on our commitment to return substantial excess free cash flow to our shareholders. In Q1, we returned $327 million to shareholders, and in 2026, we expect to have $1.5 billion available to invest in both bolt-on M&A and return cash to shareholders through share repurchases and dividends. I'm energized about our strong start to 2026, but even more energized about the future of the new Equifax. With that, operator, let me open it up for questions.

Speaker #3: As a reminder , we ask that you please ask one question and one follow up , then return to the queue . If you'd like to remove yourself from the queue .

Speaker #1: Given our strong free cash flow generation with cash conversion over 100% in 2026, we're also delivering on our commitment to return substantial excess free cash flow to our shareholders.

Speaker #3: Please press star two . Once again , that's star one and your confirmation tone to indicate your line is in the question queue .

Speaker #3: And please limit yourself to one question and one follow up and return to the queue Our first question today is coming from Jeffrey Mueller from Baird .

Speaker #1: In the first quarter, we returned $327 million to shareholders, and in 2026, we expect to have $1.5 billion available to invest in both bolt-on M&A and return cash to shareholders through share repurchases and dividends.

Speaker #3: Your line is now live .

Speaker #4: Yeah . Thank you . How are you thinking about the timing of the revenue from the expanded government opportunity ? I get the tough Q2 comp , but Q1 was really good .

Speaker #1: I'm energized about our strong start to 2026, but even more energized about the future of the new Equifax. And with that, operator, let me open it up for questions.

Speaker #4: So to what extent did the expanded opportunities drive that strength ? And then just help us understand what you're trying to signal when you're talking about timing factors related to system integration and budget challenges

Speaker #2: Thank you. We'll now be conducting a question and answer session. If you'd like to be placed in the question queue, please press star one on your telephone keypad.

Operator: Thank you. We'll now be conducting a question and answer session. If you'd like to be placed into the question queue, please press star one on your telephone keypad. As a reminder, we ask you please ask one question and one follow-up, then return to the queue. If you'd like to remove yourself from the queue, please press star two. Once again, that's star one and you'll hear a confirmation tone to indicate your line is in the question queue. Please limit yourselves to one question and one follow-up, then return to the queue. Our first question today is coming from Jeffrey Meuler from Baird. Your line is now live.

Speaker #2: As a reminder, we ask you to please ask one question and one follow-up, then return to the queue. If you'd like to remove yourself from the queue, please press star two.

Speaker #1: Yeah . Jeff , you know , we remain very bullish about our government vertical , given the big Tam and also OB three , we've talked about that a bunch .

Speaker #1: We've been clear since really last July when OB three was passed that we expect the substantial portions of that to be later in the year .

Speaker #2: Once again, that's star one and you'll hear a confirmation tone to indicate your line is in the question queue and please limit yourselves to one question and one follow-up, then return to the queue.

Speaker #1: But really principally in 2027 when that takes effect , you know , whether it's the Medicaid or the Snap benefits or the , you know , more frequent six month redeterminations , we said on prepared comments that our pipelines for government are very robust up two X over where they were a year ago .

Speaker #2: Our first question today is coming from Jeff Mueller from Barrier. Your line is now live.

Speaker #3: Yeah, thank you. How are you thinking about the timing of the revenue from the expanded government opportunity? I get the tough Q2 comp, but Q1 was really good, so to what extent did the expanded opportunity drive that strength?

Jeffrey Meuler: Yeah, thank you. How are you thinking about the timing of the revenue from the expanded government opportunity? I get the tough Q2 comp, but Q1 was really good. To what extent did the expanded opportunity drive that strength? And then just help us understand what you're trying to signal when you're talking about timing factors related to system integration and budget challenges.

Speaker #1: So , you know , we feel good about the pipelines , but , you know , government can be bumpy . You know , both on , you know , when deals not only close and sign , but also when they activate .

Speaker #3: And then just help us understand what you're trying to signal when you're talking about timing factors related to system integration and budget challenges.

Speaker #1: And then there's always budget pressures that the government level . And as you point out , we had a big win with SSA a year ago in in April .

Speaker #2: Yeah, Jeff, we were made very bullish about our government vertical given the big TAM, and also OB3. We've talked about that a bunch. We've been clear since really last July, when OB3 was passed, that we expect the substantial portions of that to be later in the year, but really, principally in 2027 when that takes effect—whether it's the Medicaid or the SNAP benefits, or the more frequent six-month redeterminations.

Mark Begor: Yeah. Jeff, we remain very bullish about our government vertical given the big TAM and also OB3. We've talked about that a bunch. We've been clear since really last July when OB2 was passed, that we expect the substantial portions of that to be later in the year, but really principally in 2027 when that takes effect. Whether it's the Medicaid or the SNAP benefits or the more frequent six-month redeterminations. We said on our prepared comments that our pipelines for government are very robust, up 2x over where they were a year ago. We feel good about the pipelines, but government can be bumpy both on when deals not only close and sign, but also when they activate. Then there's always budget pressures at the government level. As you point out, we had a big win with SSA a year ago in April.

Speaker #1: So that's a comp that's , you know , challenging , you know , in the in the second quarter . And we just wanted to highlight that .

Speaker #4: Okay . And then for Yousef diversified markets , what dragged it down in Q1 , because I think the online growth was slower overall than card and auto was .

Speaker #4: So what dragged it down in Q1 and then maybe it's because of whatever that factor is , but what drives the acceleration in Q2 ?

Speaker #2: We sat on the prepared comments that our pipelines for government are very robust, up 2X over where they were a year ago. So we feel good about the pipelines, but government can be bumpy both on when deals not only close and sign, but also when they activate.

Speaker #4: Because it sounded like there was also a little bit of softening X mortgage related to rates and macro volatility later in the quarter .

Speaker #1: Yeah , I'll jump in and John can also chime in also , you know , first on the you know , what happened in the first quarter is we had some you know , larger batch volumes , which can be choppy on when they land during the year .

Speaker #2: And then there's always budget pressures at the government level. And as you point out, we had a big win with SSA a year ago in April, so that's a comp that's challenging in the second quarter, and we just wanted to highlight that.

Speaker #1: And , you know , one quarter to another quarter last year versus this year , you know , so I think that's the principal impact on the on the second on the first quarter .

Mark Begor: That's a comp that's challenging in Q2, and we just wanted to highlight that.

Speaker #3: Okay. And then for UCIS diversified markets, what dragged it down in Q1? Because I think the online growth was slower overall than card and auto was.

Jeffrey Meuler: Okay. For USIS Diversified Markets, what dragged it down in Q1? Because I think the online growth was slower overall than card and auto was. What dragged it down in Q1? Maybe it's because of whatever that factor is, but what drives the acceleration in Q2? Because it sounded like there was also a little bit of softening ex mortgage related to rates and macro volatility later in the quarter.

Speaker #1: You know , as we look forward , we've got a lot of new products that we're rolling out . I think we talked a bunch , you know , in our prepared comments around the twin indicator that we have in market .

Speaker #1: We just launched it , you know , for auto , auto lenders and also for card . And we've seen good progress there .

Speaker #3: So what dragged it down in Q1? And then, maybe it's because of whatever that factor is, but what drives the acceleration in Q2? Because it sounded like there was also a little bit of softening ex-mortgage, related to rates and macro volatility later in the quarter.

Speaker #1: We expect that to help , you know , as we go through , go through the year , anything else you'd add , John ?

Speaker #2: Not just what we have in our comments , right . We saw weakening as we went into the into the March period . And that affected not only online but to a degree , as indicated .

Speaker #2: Mark batch . Right . And and it was in auto it was to a degree in Fi and it crossed some other verticals as well .

Speaker #2: Yeah, I'll jump in and John can also chime in also. First on the what happened in the first quarter is we had some larger batch volumes which can be choppy on when they land during the year and one quarter to another quarter last year versus this year.

Mark Begor: Yeah. I'll jump in, and John can also chime in also. First on what happened in the Q1 is we had some larger batch volumes, which can be choppy on when they land during the year and one quarter to another quarter last year versus this year. I think that's the principal impact on the Q1. As we look forward, we've got a lot of new products that we're rolling out. I think we talked a bunch in our prepared comments around the I-9 Indicator that we have in market. We just launched it for auto lenders and also for card, and we've seen good progress there. We expect that to help as we go through the year. Anything else you'd add, John?

Speaker #2: So I think the , the general economic situation that we ran into in March just resulted in a little slower volumes , not just in online , but as we all know , that oftentimes batch is repetitive , right ?

Speaker #2: So, I think that's the principal impact on the first quarter. As we look forward, we've got a lot of new products that we're rolling out.

Speaker #2: So , so some of the batch jobs that occur very frequently , just slowed .

Speaker #3: Thank you . Our next question today is coming from Andrew Steinerman from JP Morgan . Your line is now live .

Speaker #2: I think we talked a bunch on our prepared comments around the twin indicator that we have in market. We just launched it for auto lenders.

Speaker #5: Yeah , I wanted to ask about AWS mortgage revenue outperformance . What did you see in the first quarter and what are you assuming in the guide in terms of U.S.

Speaker #2: And also for card, and we've seen good progress there. We expect that to help as we go through the year. Anything else you'd add, John?

Speaker #5: mortgage revenue outperformance ?

Speaker #1: Well , mortgage had a strong first quarter at AWS . I think we talked about some new products that we've rolled out that we're getting some traction on .

Speaker #3: Not just what we had in our comments, right? We saw weakening as we went into the March period, and that affected not only online, but to a degree, as you indicated, Mark Begor, right?

John Gamble: No, it's just what we had in our comments, right? We saw weakening as we went into the March period, and that affected not only online, but to a degree, as you indicated, Mark, batch, right? It was in auto, it was to a degree in FI, and across some other verticals as well. I think the general economic situation that we ran into in March just resulted in a little slower volumes, not just in online, but as we all know, oftentimes batch is repetitive, right? Some of the batch jobs that occur very frequently just slowed.

Speaker #1: Anything else you'd add on that , John , for the I think

Speaker #3: And it was in auto, it was to a degree in FI, and it crossed some other verticals as well. So I think the general economic situation that we ran into in March just resulted in a little slower volumes, not just in online, but as we all know, oftentimes batch is repetitive, right?

Speaker #2: Consistently said , we expect to see high single digit , you know , type of outperformance relative to transaction volumes . And we saw very good performance in the first quarter .

Speaker #2: And that continues to be our expectation going forward .

Speaker #5: Thank you

Speaker #3: So some of the batch jobs that occur very frequently just slowed.

Speaker #3: Thank you . Next question . Today is coming from Toni Kaplan from Morgan Stanley . Your line is now live .

Speaker #6: Thanks so much . I wanted to go back to CMS and , you know , basically when you think about competition , we saw an article a couple of months ago about one of your private company competitors who uses connectivity for verification and winning a contract on the Medicaid and Snap eligibility side .

Speaker #2: Thank you. Our next question today is coming from Andrew Steinerman from JPMorgan. Your line is now live.

Operator: Thank you. Our next question today is coming from Andrew Steinerman from J.P. Morgan. Your line is now live.

Speaker #4: Yeah, I wanted to ask about EWS mortgage revenue outperformance. What did you see in the first quarter, and what are you assuming in the guide in terms of EWS mortgage revenue outperformance?

Andrew Steinerman: Yeah. I wanted to ask about EWS mortgage revenue outperformance. What did you see in Q1, and what are you assuming in the guide in terms of EWS mortgage revenue outperformance?

Speaker #2: Well, mortgage had a strong first quarter at EWS. I think we talked about some new products that we've rolled out that we're getting some traction on.

Mark Begor: Mortgage had a strong Q1 at EWS. I think we talked about some new products that we've rolled out that we're getting some traction on. Anything else you'd add on that, John, for Q1?

Speaker #6: So I was just hoping you could frame for us how you see your product versus maybe a cheaper product , like because of the state budgets always seeming to be challenged .

Speaker #2: Anything else you'd add on that, John, for the first quarter?

John Gamble: No, I think we've consistently said we expect to see high single digit type of outperformance relative to transaction volumes. We saw very good performance in Q1, and that continues to be our expectation going forward.

Speaker #3: No, I think we consistently said we expect to see high single-digit type of outperformance relative to transaction volumes. And we saw very good performance in the first quarter, and that continues to be our expectation going forward.

Speaker #6: Like , does that lead to a cheaper solution gaining traction or , and then also the friction point , you always mention , you know , does that resonate as much in this market as in the lending market ?

Speaker #4: Thank you.

Andrew Steinerman: Thank you.

Speaker #2: Thank you. Next question today is coming from Tony Kaplan from Morgan Stanley. Your line is now live.

Operator 2: Thank you. Next question today is coming from Toni Kaplan from Morgan Stanley. Your line is now live.

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

Speaker #6: I just wanted to understand the sort of go to market strategy and positioning between your product , which is maybe more premium and , and very good accuracy versus maybe a cheaper connectivity product .

Speaker #5: Thanks so much. I wanted to go back to CMS and, basically, when you think about competition, we saw an article a couple of months ago about one of your private company competitors who uses connectivity for verification and winning a contract on the Medicaid and SNAP eligibility side.

Toni Kaplan: Thanks so much. Wanted to go back to CMS. Basically when you think about competition, we saw an article a couple of months ago about one of your private company competitors who uses connectivity for verification and winning a contract on the Medicaid and SNAP eligibility side. I was just hoping you could frame for us how you see your product versus maybe a cheaper product, because of the state budgets always seeming to be challenged. Does that lead to a cheaper solution gaining traction? Then also the friction point you always mention, does that resonate as much in this market as in the lending market? Just wanted to understand the go-to-market strategy and positioning between your product, which is maybe more premium and very good accuracy versus maybe a cheaper connectivity product. Thanks.

Speaker #6: Thanks .

Speaker #1: Yeah . When you say cheaper connectivity , I think you're referring to consumer consented data . And you know , there's clearly a place for that .

Speaker #1: As you know , we rolled out last summer our own solution called complete income that we've seen traction on . And , you know what this demographic , there's a lot of W2 income in here , but there's also a lot of gig income , which we have less of in our database .

Speaker #5: So I was just hoping you could frame for us how you see your product versus maybe a cheaper product because of the state budgets always seeming to be challenged.

Speaker #5: Does that lead to a cheaper solution gaining traction, or—and then also the friction point you always mention? Does that resonate as much in this market as in the lending market?

Speaker #1: So , you know , our large coverage is still a big asset for us . You know , having , you know , over 150 million current records is a big asset in our data set that we can deliver instantly .

Speaker #1: When you go down to consumer consented path , it adds friction to the process , both for the caseworker , you know , and for the recipient .

Speaker #5: Just wanted to understand the sort of go-to-market strategy and positioning between your product, which is maybe more premium, and very good accuracy versus maybe a cheaper connectivity product?

Speaker #1: They have to , you know , do things to participate in it . Where we've seen , you know , why we invested in it and we launched our solution .

Speaker #1: That's integrated between , you know , hitting our twin database first and then waterfalling to our own consumer consented solution . You know , that integrated solution .

Speaker #5: Thanks.

Speaker #2: Yeah, when you say cheaper connectivity, I think you're referring to consumer-consented data, and there's clearly a place for that. As you know, we rolled out last summer our own solution called Complete Income that we've seen traction on.

Mark Begor: Yeah. When you say cheaper connectivity, I think you're referring to consumer-consented data.

Toni Kaplan: Yes.

Mark Begor: There's clearly a place for that. As you know, we rolled out last summer our own solution called Complete Income that we've seen traction on. With this demographic, there's a lot of W2 income in here, but there's also a lot of gig income, which we have less of in our database. Our large coverage is still a big asset for us. Having over 150 million current records is a big asset in our data set that we can deliver instantly. When you go down the consumer consented path, it adds friction to the process, both for the caseworker and for the recipient. They have to do things to participate in it.

Speaker #1: You know , we think is a superior one delivers that same benefit . And what the , what the states were after is more coverage .

Speaker #2: And what this demographic, there's a lot of W-2 income in here, but there's also a lot of gig income, which we have less of in our database.

Speaker #1: You know , it's really hard to get that income verification and that consumer consented really covers a lot of the records that we don't have .

Speaker #2: So our large coverage is still a big asset for us. Having over 150 million current records is a big asset in our dataset that we can deliver instantly.

Speaker #1: And that's why we've invested in the solution . And we've already landed a handful of states that are now using that solution in the in the marketplace .

Speaker #6: Yep . Great . And I wanted to ask just on Vantagescore , I guess , what's taking so long with the grid ? And I guess when how is the reception to your lowering the price of the score and does that sort of lead the Fhfa maybe to , you know , sort of be less concerned about pricing in the industry ?

Speaker #2: When you go down the consumer-consented path, it adds friction to the process, both for the caseworker and for the recipient. They have to do things to participate in it.

Speaker #2: Where we've seen why we invested in it, and we launched our solution that's integrated—between hitting our Twin database first and then waterfalling to our own consumer-consented solution.

Mark Begor: Where we've seen why we invested in it and we launched our solution that's integrated between hitting our TWN database first and then waterfalling to our own consumer consented solution, that integrated solution we think is a superior one, delivers that same benefit. What the states were after is more coverage. It's really hard to get that income verification, and that consumer consented really covers a lot of the records that we don't have, and that's why we've invested in the solution, and we've already landed a handful of states that are now using that solution in the marketplace.

Speaker #2: That integrated solution, we think, is a superior one, and delivers that same benefit. And what the states were after is more coverage. It's really hard to get that income verification.

Speaker #1: Yeah , that's a hard question . You know , these kind of changes take time , as you know , Fico was used for 30 years is the only score in mortgage .

Speaker #2: And that consumer consented really covers a lot of the records that we don't have. And that's why we've invested in the solution, and we've already landed a handful of states that are now using that solution in the marketplace.

Speaker #1: And last July , director Pulte , you know , introduced score competition . It takes a lot of technical time . Our view is that , you know , the the integrators meaning the software systems are ready for vantage .

Speaker #5: Yep, great. And wanted to ask just on VantageScore, I guess, what's taking so long with the grid? And I guess, how is the reception to your lowering the price of the score, and does that sort of lead the FHFA maybe to be less concerned about pricing in the industry?

Toni Kaplan: Yep. Great. Wanted to ask just on VantageScore, I guess, what's taking so long with the grid, and I guess, how is the reception to your lowering the price of the score, and does that sort of lead the FHFA maybe to sort of be less concerned about pricing in the industry?

Speaker #1: They've built that out over the last number of months . You know , our customers are ready . We talked about 250 customers ingesting the free vantage score .

Speaker #1: You know , we felt that they're , you know , would be an advantage for Equifax and our competitors . You know , did the same thing by lowering the price to a dollar versus 450 to create , you know , a real price advantage , you know , for customers to really incent them in the industry to really move forward with vantage .

Speaker #2: Yeah, that's a hard question. These kinds of changes take time. As you know, FICO was used for 30 years as the only score in mortgage.

Mark Begor: Yeah. That's a hard question. These kind of changes take time. As you know, FICO was used for 30 years as the only score in mortgage, and last July, Rohit Chopra introduced score competition. It takes a lot of technical time. Our view is that the integrators, meaning the software systems, are ready for VantageScore. They've built that out over the last number of months. Our customers are ready. We talked about 250 customers ingesting the free VantageScore. We felt that there would be an advantage for Equifax, and our competitors did the same thing, by lowering the price to $1 versus $4.50 to create a real price advantage for customers to really incent them and the industry to really move forward with VantageScore.

Speaker #1: And the feedback has been very positive . And , you know , I think as you've seen in various publications , if you use that dollar versus the $10 Fico score , you know , that's $1 billion worth of run rate , annual cost savings for the industry .

Speaker #2: And last July, Director Polti introduced score competition. It takes a lot of technical time. Our view is that the integrators, meaning the software systems, are ready for Vantage.

Speaker #1: That's a big incentive to change . So , you know , all indications are we're getting closer . You know , we had the same indications last time we talked in in February .

Speaker #2: They've built that out over the last number of months. Our customers are ready. We talked about 250 customers ingesting the free VantageScore. We felt that there would be an advantage for Equifax and our competitors did the same thing.

Speaker #1: But you know we're certainly closer now that we're in April . And the industry is clearly ready for it . They they want to take advantage of it .

Speaker #1: So we expect it to move forward . But as you know , in our guidance , you know , we laid out that , you know , we don't know when that timing is .

Speaker #2: By lowering the price to a dollar versus $4.50, to create a real price advantage for customers— to really incent them, in the industry, to really move forward with Vantage.

Speaker #1: So we really can't forecast vantage conversions . So we assume that Fico stays there through the year . But just to be clear , and I know you know , this , Tony , that , you know , we're it doesn't impact our PNL if Fico stays there long term , there's an advantage to our PNL with the margin we make on the vantage score .

Speaker #2: And the feedback has been very positive. And I think, as you've seen in various publications, if you use that $1 versus the $10 FICO score, that's a billion dollars' worth of run-rate annual cost savings for the industry.

Mark Begor: The feedback has been very positive, and I think as you've seen in various publications, if you use that $1 versus the $10 FICO score, that's $1 billion worth of run rate annual cost savings for the industry. That's a big incentive to change. All indications are we're getting closer. We had the same indications last time we talked in February, but we're certainly closer now that we're in April, and the industry is clearly ready for it. They want to take advantage of it. We expect it to move forward. As you know, in our guidance, we laid out that we don't know when that timing is, so we really can't forecast a VantageScore conversion. We assume that FICO stays there through the year.

Speaker #1: If there is vantage conversion . So we think Equifax is well positioned because as you know , you can't calculate a credit score without our credit file .

Speaker #2: That's a big incentive to change. So, all indications are we're getting closer. We had the same indications last time we talked in February, but we're certainly closer now that we're in April.

Speaker #1: And that's the data that's used there . So we think we're well positioned whether it is Fico or vantage . But there's definitely a lot of energy and enthusiasm about moving to vantage .

Speaker #2: And the industry is clearly ready for it. They want to take advantage of it. So we expect it to move forward. But as you know, in our guidance, we laid out that we don't know when that timing is, so we really can't forecast Vantage conversion.

Speaker #1: Once it gets activated by the agencies .

Speaker #6: Thank you

Speaker #3: Thank you . Next question . Today is coming from from Barclays . Your line is now live .

Speaker #7: Thank you . Good morning . You know , I think we all saw the mortgage data kind of taper off in March . But Mark I think you mentioned there was some impact to a lesser degree in auto and banking .

Speaker #2: So we assume that FICO stays there through the year. But just to be clear, and I know you know this, Tony, that we're it doesn't impact our P&L if FICO stays there long-term.

Mark Begor: Just to be clear, and I know you know this, Toni, that it doesn't impact our P&L if FICO stays there long term. There's an advantage to our P&L with the margin we make on the VantageScore if there is VantageScore conversion. We think Equifax is well-positioned because as you know, you can't calculate a credit score without our credit file, and that's the data that's used there. We think we're well positioned, whether it is FICO or VantageScore, but there's definitely a lot of energy and enthusiasm about moving to VantageScore once it gets activated by the agencies.

Speaker #7: I was hoping you could just elaborate on that just to appreciate the how you think that could be impacted .

Speaker #2: There's an advantage to our P&L with the margin we make on the VantageScore. If there is Vantage conversion. So we think Equifax is well positioned because, as you know, you can't calculate a credit score without our credit file.

Speaker #1: Yeah , it was really I mean , I'm more in auto . We saw a little bit in banking , but it's probably harder to find in the rounds .

Speaker #1: You know , auto is a big ticket transaction . When rates went up a little bit , we saw some tail off . It's typically a very , you know , a larger auto financing market around tax season .

Speaker #2: And that's the data that's used there. So we think we're well positioned, whether it is FICO or Vantage, but there's definitely a lot of energy and enthusiasm about moving to Vantage once it gets activated by the agencies.

Speaker #1: And there was some dampening of that part of it's auto prices for sure . You know , have increased . And then you add to it , auto rates of increased you know , but it was still a positive market for us .

Speaker #5: Thank you.

Toni Kaplan: Thank you.

Speaker #2: Thank you. Next question today is coming from another partner from Barclays. Your line is now live.

Operator 2: Thank you. Next question today is coming from Manav Patnaik from Barclays. Your line is now live.

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

Speaker #1: But we just thought we'd highlight that . Anything you'd add John ?

Speaker #4: Thank you. Good morning. I think we all saw the mortgage data kind of taper off in March, but Mark, I think you mentioned there was some impact to a lesser degree in auto and banking.

Manav Patnaik: Thank you. Good morning. I think we all saw the mortgage data kind of taper off in March, Mark. I think you mentioned there was some impact to a lesser degree in auto and banking. I was hoping you could just elaborate on that just to appreciate the sensitivities and how you think that could be impacted.

Speaker #2: No , I think you covered it . And we saw it . We saw it run through March . And I think it's kind of continued into April .

Speaker #7: Okay . Got it . And you know , I think , you know , your point in emphasizing the proprietary data that's that's well understood .

Speaker #4: I was hoping you could just elaborate on that just to appreciate the sensitivities and how you think that could be impacted.

Speaker #7: You also mentioned , you know , using ignite and some of your other analytical tools . I was just wondering how connected or packaged is those ignite and analytic tools to the data .

Speaker #2: Yeah, it was really I mean, I'm more in auto. We saw a little bit in banking, but it's probably harder to find in the rounds.

Mark Begor: Yeah, it was really, Manav, more in auto. We saw a little bit in banking, but it's probably harder to find in the rounds. Auto is a big-ticket transaction. When rates went up a little bit, we saw some tail off. It's typically a larger auto financing market around tax season, and there was some dampening of that. Part of it's auto prices for sure have increased, and then you add to it auto rates have increased. But it was still a positive market for us, but we just thought we'd highlight that. Anything you'd add, John?

Speaker #2: Auto is a big ticket transaction when rates went up a little bit. We saw some tail off. It's typically a very larger auto financing market around tax season.

Speaker #7: Just trying to appreciate , you know , if you , you know , how you think of the potential disruption risk to the software side of things , which is the big market talk right now ?

Speaker #2: And there was some dampening of that. Part of it's auto prices for sure. Have increased, and then you add to it auto rates have increased.

Speaker #1: Yeah . As you know , you know , the so-called software is a small part of our business . It's one we certainly invest in , particularly for our , you know , broadly , our mid-market customers that don't have , you know , larger tech platforms that they can , they can use to ingest our data .

Speaker #2: But it was still a positive market for us, but we just thought we'd highlight that. Anything you'd add, John?

Speaker #3: No, I think you covered it. And we saw it run through March, and I think it's kind of continued in April.

John Gamble: No, I think you covered it.

Mark Begor: Yeah.

John Gamble: We saw it run through March, and I think it's kind of continued into April.

Speaker #1: But , you know , we sell data , we sell scores , we sell models , we sell products . You know , that's the , the vast , vast majority of our revenue .

Speaker #4: Okay, got it. And I think your point, and reemphasizing the proprietary data—that's well understood. You also mentioned using Ignite and some of your other analytical tools.

Manav Patnaik: Okay, got it. I think your point on re-emphasizing the proprietary data, that's well understood. You also mentioned using Ignite and some of your other analytical tools. I was just wondering how connected or packaged is those Ignite and analytic tools to the data? Just trying to appreciate how you think of the potential disruption risk to the software side of things, which is the big market talk right now.

Speaker #1: We're , we're very , very small in the revenue , you know , from software sales . And we really , you know , have our investments in ignite and interconnect really to facilitate the sales of our data .

Speaker #4: I was just wondering, how connected or packaged are those Ignite and analytic tools to the data? I'm just trying to appreciate how you think about the potential disruption risk to the software side of things, which is the big market talk right now.

Speaker #1: You know , we don't really view it as a , as a way that we deliver our data to market .

Speaker #2: Yeah . Ignite AI advisor is to allow smaller customers to ingest more of our data by seeing the value in the scores and the lift , they get by using not just credit data , but also alternative data and other data sources .

Speaker #2: Yeah, as you know, the so-called software is a small part of our business. It's one we certainly invest in, particularly for our broadly our mid-market customers that don't have larger tech platforms that they can use to ingest our data.

Mark Begor: Yeah. As you know, the so-called software is a small part of our business. It's one we certainly invest in, particularly for broadly our mid-market customers that don't have larger tech platforms that they can use to ingest our data. We sell data, we sell scores, we sell models, we sell products. That's the vast majority of our revenue. We're very small in the revenue from software sales. We really have our investments in Ignite and InterConnect really to facilitate the sales of our data. We don't really view it as a way that we deliver our data to market.

Speaker #2: So that's what it's intended to do . We're very excited about the fact it's going to drive more data sales , but it isn't a licensing play that isn't that isn't what we do .

Speaker #2: Yeah .

Speaker #7: Got it . Thank you .

Speaker #2: But we sell data. We sell scores. We sell models. We sell products. That's the vast, vast majority of our revenue. We're very, very small in the revenue from software sales.

Speaker #1: Thanks , Vanessa .

Speaker #3: Thank you . Next question . Today is coming from Shlomo Rosenbaum from Stiefel . Your line is now live .

Speaker #8: Hi . Good morning . Thank you for taking my questions . Mark , can you talk a little bit more about the work number indicator ?

Speaker #2: And we really have our investments in Ignite and Interconnect really to facilitate the sales of our data. We don't really view it as a way that we deliver our data to market.

Speaker #8: And is there some way to quantify some of the market share gains ? It looks like a unique position that you guys can kind of wedge in there and gain some more share .

Speaker #3: Yeah, Ignite AI Advisor is to allow smaller customers to ingest more of our data by seeing the value in the scores and the lift they get, by using not just credit data, but also alternative data and other data sources.

John Gamble: Yeah. Ignite AI Advisor is to allow smaller customers to ingest more of our data by seeing the value in the scores and the lift they get by using not just credit data, but also alternative data, and other data sources. That's what it's intended to do. We are very excited about the fact that it's going to drive more data sales, but it isn't a licensing play. That isn't what we do. Yeah.

Speaker #8: So I'm wondering if there's some way to quantify , since you've rolled it out , where , where have you seen the share shift ?

Speaker #8: You noted one large client last call , I think in the mortgage space , but if you can talk about what's happened since then , and then , has there been any reaction with any of unique data from the other bureaus that they've been putting in for free aside their own credit reports ?

Speaker #3: So, that's what it's intended to do. We are very excited about the fact that it's going to drive more data sales. But it isn't a licensing play.

Speaker #3: That isn’t what we do. Yeah.

Speaker #4: Got it. Thank you.

Manav Patnaik: Got it. Thank you.

Speaker #2: Thanks for now. Thank you. Next question today is coming from Shlomo Rosenbaum from Steeple. Your line is now live.

Mark Begor: Thanks, Patnaik.

Operator 2: Thank you. Next question today is coming from Shlomo Rosenbaum from Stifel. Your line is now live.

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

Speaker #8: And then I have a follow up .

Speaker #1: Yeah , sure . You know , we think obviously we have a unique asset in the twin data set by adding the twin indicator .

Speaker #5: Hi, good morning. Thank you for taking my questions. Mark, can you talk a little bit more about the Work Number indicator? And is there some way to quantify some of the market share gains?

Shlomo Rosenbaum: Hi. Good morning. Thank you for taking my questions. Mark, can you talk a little bit more about the Work Number Record Indicator, and is there some way to quantify some of the market share gains? It really looks like a unique position that you guys can kind of wedge in there and gain some more share. I wonder if there's some way to quantify, since you've rolled it out, where have you seen the share shift? You noted one large client last call, I think, in the mortgage space. If you can talk about what's happened since then, and then if there've been any reaction with any of the unique data from the other bureaus that they've been putting in for free aside their own credit reports. I have a follow-up.

Speaker #1: We think it benefits both our credit file but also benefits pull through of our twin data . You know , in the underwriting process because the originator now knows that we have a record .

Speaker #5: It really looks like a unique position that you guys can kind of wedge in there and gain some more share. So I'm wondering if there's some way to quantify, since you've rolled it out, where have you seen the share shift?

Speaker #1: So it's a benefit really on both sides . And we've seen really positive response . As you know , it's still early days .

Speaker #1: We really only only launched this in the second half of last year . And initially in mortgage . And as we talked in February and again today .

Speaker #5: You noted one large client last call, I think, in the mortgage space. But if you can talk about what's happened since then and then if there have been any reaction with any of the unique data from the other bureaus that they've been putting in for free aside.

Speaker #1: That's where we're seeing the most interest , you know , and when you think about it , if you're a mortgage lender and then as you know , we're rolling it out in auto cards and loans , if you're underwriting a consumer , you 30 years have done that off the credit file .

Speaker #5: Their own credit reports. And then I have a follow-up.

Mark Begor: Yeah, sure. We think, obviously, we have a unique asset in the TWN data set. By adding the TWN indicator, we think it benefits both our credit file, but also benefits pull-through of our TWN data in the underwriting process because the originator now knows that we have a record. It's a benefit really on both sides. We've seen really positive responses. As you know, it's still early days. We really only launched this in H2 of last year and initially in mortgage. As we talked in February and again today, that's where we're seeing the most interest. When you think about it, if you're a mortgage lender, and then, as you know, we're rolling it out in auto, cards, and P loans.

Speaker #1: The credit score and credit data , but you really invisible in that marketing process . The early stage in your funnel , when you bring a consumer into your application process or pre-application process about whether they're working or not , or what their income is .

Speaker #2: Yeah, sure. We think, obviously, we have a unique asset in the twin data set by adding the twin indicator. We think it benefits both our credit file, but it also benefits pull-through of our twin data.

Speaker #2: In the underwriting process, because the originator now knows that we have a record, it's really a benefit on both sides. And we've seen really positive response.

Speaker #1: And , you know , number one , it's kind of binary . If employed , but you're that generally is challenging with credit .

Speaker #1: But if you're working and then dependent upon your income levels and your ability to pay , it allows the lender to give that consumer a larger loan at a lower interest rate .

Speaker #2: As you know, it's still early days. We really only launched this in the second half of last year, and initially in mortgage. And as we talked in February and again today, that's where we're seeing the most interest.

Speaker #1: And really drive approval rates , you know , and it really is getting the consumer into the right product . So it's a very unique solution that we have and one that we're super energized about .

Speaker #2: And when you think about it, if you're a mortgage lender—and then, as you know, we're rolling it out in auto, cars, and P loans—if you're underwriting a consumer, you typically, for 20 or 30 years, have done that off the credit file.

Speaker #1: I think you can see in our mortgage results for the first quarter , you know , versus the underlying market , you know , you can do the math .

Mark Begor: If you're underwriting a consumer, you typically, for 20, 30 years, have done that off the credit file, the credit score, and credit data. You are really invisible in that marketing process, the early stage in your funnel when you bring a consumer into your application process or pre-application process about whether they're working or not or what their income is. Number one, it's kind of binary if you're not employed, but you're applying, that generally is going to be more challenging with credit. If you're working and then dependent upon your income levels and your ability to pay, it allows the lender to give that consumer a larger loan at a lower interest rate and really drive approval rates. It really is getting the consumer into the right product. It's a very unique solution that we have and one that we're super energized about.

Speaker #2: The credit score and credit data. But you're really invisible in that marketing process, the early stage in your funnel when you bring a consumer into your application process or pre-application process, about whether they're working or not, or what their income is.

Speaker #1: You know , there's clearly some lift in there that we're seeing , you know , with , you know , share benefits and the pre-qual , you know , and we attribute that to , you know , one of the factors for sure is the fact that we're offering the twin indicator there at no charge .

Speaker #2: And number one, it's kind of binary if you're not employed, but you're applying. That generally is going to be more challenging with credit. But if you're working, and then depending upon your income levels and your ability to pay, it allows the lender to give that consumer a larger loan at a lower interest rate and really drive approval rates.

Speaker #1: I think I talked about on the February call that , you know , some of the early customers that are using that were seeing not only that , they're using more of our credit file because it has that attribute with it .

Speaker #1: That's very valuable in that mortgage funnel . But we're also seeing a lift in some of the twin poles because they know we have a record and they're able to , you know , access that record later in the process when they're doing the VOC and Voi full verification versus the thinner , you know , set that we have in the twin indicators .

Speaker #2: And it really is getting the consumer into the right product. So it's a very unique solution that we have, and one that we're super energized about.

Mark Begor: I think you can see in our mortgage results for Q1 versus the underlying market, you can do the math. There's clearly some lift in there that we're seeing with share benefits in the pre-qual, and we attribute that to one of the factors, for sure, is the fact that we're offering the TWN indicator there at no charge.

Speaker #2: I think you can see in our mortgage results for the first quarter, versus the underlying market—you can do the math. There’s clearly some lift in there that we’re seeing.

Speaker #1: So we're very energized about it . And then the feedback we're getting from the other financial services verticals is very positive . You know , obviously getting that kind of rich data , you know , for free .

Speaker #2: With share benefits in the pre-qual, and we attribute that to one of the factors for sure is the fact that we're offering the twin indicator there.

Speaker #1: You know , is very valuable and a differentiator for us . And then beyond just the twin indicator , I think , you know , that we're also working to offer in the mortgage space , our cell phone utility attributes in the mortgage file .

Speaker #2: At no charge. I think I talked about on the February call that some of the early customers that are using that were seeing not only that they're using more of our credit file because it has that attribute with it that's very valuable in that mortgage funnel, but we're also seeing a lift in some of the twin pulls because they know we have a record.

Mark Begor: I think I talked about on the February call that some of the early customers that are using that, we're seeing not only that they're using more of our credit file because it has that attribute with it that's very valuable in that mortgage funnel, but we're also seeing a lift in some of the Work Number pulls because they know we have a record and they're able to access that record later in the process when they're doing the VOE and VOI full verification versus the thinner set that we have in the Work Number indicator. We're very energized about it. The feedback we're getting from the other financial services verticals is very positive. Obviously, getting that kind of rich data for free is very valuable and a differentiator for us.

Speaker #1: You know , that's another very unique Equifax data set , one that only we have . It's got real scale . It covers most Americans .

Speaker #1: So it's got a lot of data in there . And we're adding those attributes to the mortgage file . Really same basis at no charge .

Speaker #2: And they're able to access that record later in the process when they're doing the VOE and VOI full verification, versus the thinner set that we have in the Twin Indicator.

Speaker #1: But to differentiate our mortgage credit file for share gains . So we're we're energized , but kind of , you know , I think to encapsulate it , it's early days , you know , meaning we're still in the , we just launched literally this week , you know , some of the solutions in card and auto lenders , you know , so we're getting in that marketplace .

Speaker #2: So we're very energized about it. And then the feedback we're getting from the other financial services verticals is very positive. Obviously, getting that kind of rich data for free is very valuable.

Speaker #1: But the response is very positive

Speaker #2: And a differentiator for us. And then beyond just the twin indicator, I think you know that we're also working to offer in the mortgage space our cell phone utility attributes in the mortgage file.

Speaker #2: In the first quarter , a very meaningful part of that 24 points excluding Fico was share gain , right ? So it was it was a significant contributor .

Mark Begor: Then beyond just the Twin indicator, I think you know that we're also working to offer in the mortgage space our cell phone utility attributes in the mortgage file. That's another very unique Equifax data set, one that only we have. It's got real scale. It covers most Americans. It's got a lot of data in there, and we're adding those attributes to the mortgage file, really same basis at no charge, but to differentiate our mortgage credit file for share gains. We're energized, but I think to encapsulate it's early days, meaning we just launched literally this week some of the solutions in card and for auto lenders. We're getting in that marketplace, but the response is very positive.

Speaker #8: Thank you . And then just as a follow up , can you talk about where you are in terms of completing the cloud platform in the international markets ?

Speaker #2: That's another very unique Equifax data set, one that only we have. It's got real scale. It covers most Americans, so it's got a lot of data in there.

Speaker #8: Yep .

Speaker #1: Yeah . We finished the year , finished the year a few months ago , 2025 at about 90% of our revenue in the new cloud .

Speaker #2: And we're adding those attributes to the mortgage file, really on the same basis at no charge. But to differentiate our mortgage credit file for share gains.

Speaker #1: That's substantially all of the United States , as you know , that was our strategy and what we have left to finish is Australia .

Speaker #2: So we're energized but kind of I think to encapsulate it is early days. Meaning we're still in the we just launched literally this week some of the solutions in card and for auto lenders.

Speaker #1: A couple of Latin American countries and a few other in India , you know , so a few other pieces . And most of that will be complete this year .

Speaker #1: It's really a game changer for us to have the cloud behind us . You know , as I talked in my prepared comments , you know , having that cloud capabilities , our scale differentiated data , we're really purpose built now .

Speaker #2: So we're getting in that marketplace. But the response is very positive.

John Gamble: In Q1, a very meaningful part of that 24 points excluding FICO was share gains, right?

Speaker #3: And the first quarter, a very meaningful part of that 24 points, excluding FICO, was share gain, right? So it was a significant contributor.

Mark Begor: Yeah.

John Gamble: It was a significant contributor.

Speaker #1: You know , with the investments we've made to really activate our AI initiatives and our Multi-data solution initiatives to really differentiate Equifax in the marketplace .

Shlomo Rosenbaum: Thank you. Just as a follow-up, can you talk about where you are in terms of completing the cloud platform in the international markets?

Speaker #5: Thank you. And then, just as a follow-up, can you talk about where you are in terms of completing the cloud platform in the international markets?

Speaker #1: And you're seeing that in our Vitality Index , you know , the 17% vitality in the quarter , you know , and the large pipeline we have of new products that we're planning to roll out , you know , like we just talked about twin indicator and really every financial services vertical , you know , that's really exciting and stuff .

Mark Begor: Yep. Yeah. We finished the year a few months ago, 2025, at about 90% of our revenue in the new cloud. That's substantially all of the United States. As you know, that was our strategy. What we have left to finish is Australia, a couple Latin American countries, and a few others in India, so a few other pieces, and most of that will be complete this year. It's really a game changer for us to have the cloud behind us. As I talked on my prepared comments, having that cloud capabilities, our scale differentiated data, we're really purpose-built now, with the investments we've made to really activate our AI initiatives and our multi-data solution initiatives to really differentiate Equifax in the marketplace.

Speaker #2: Yep. Yeah. We finished the year—finished the year a few months ago, 2025, at about 90% of our revenue in the new cloud. That’s substantially all of the United States.

Speaker #2: As you know, that was our strategy and what we have left to finish is Australia, a couple of Latin American countries, and a few other in India.

Speaker #1: We couldn't do before the cloud . So it's really energizing time for us , you know , having the cloud at this stage and substantially behind us , particularly in our large , you know , and most profitable and EBITDA generating market in the United States .

Speaker #2: So a few other pieces. And most of that will be complete this year. It's really a game changer for us to have the cloud behind us.

Speaker #2: As I talked on my prepared comments, having that cloud capabilities, our scale-differentiated data, we're really purpose-built now with the investments we've made to really activate our AI initiatives and our multi-data solution initiatives to really differentiate Equifax in the marketplace.

Speaker #1: It's an exciting time

Speaker #3: Thank you . Our next question today is coming from Kyle Peterson from Needham Company . Your line is now live .

Speaker #9: Great . Thanks , guys . Good morning . I appreciate you taking the question . Just one for me . I wanted to touch on talent .

Mark Begor: You're seeing that in our Vitality Index, the 17% vitality in the quarter, and the large pipeline we have of new products that we're planning to roll out. Like we just talked about I-9 Indicator in really every financial services vertical. That's really exciting, and it's stuff we couldn't do before the cloud. It's a really energizing time for us, having the cloud at this stage and substantially behind us, particularly in our large, and most profitable, and EBITDA-generating market in the United States. It's an exciting time.

Speaker #2: And you're seeing that in our vitality index. The 17% vitality in the quarter and the large pipeline we have of new products that we're planning to roll out.

Speaker #9: You know , great to see you guys outperforming . You know it's been a pretty tough hiring market . But still is . Want to see .

Speaker #9: Yeah . Want to see if you guys could unpack a little bit . What kind of the bigger drivers are . Obviously it seems like records is is helping a lot with hit rates and stuff , but maybe between like whether it's records price , you know , bigger package density , like longer background screens , just any more , any more detail or color there would be really helpful for us .

Speaker #2: Like we just talked about, twin indicator and really every financial services vertical—that's really exciting. And it's stuff we couldn't do before the cloud.

Speaker #2: So it's really energizing time for us having the cloud at this stage and substantially behind us, particularly in our large and most profitable and even generating market in the United States.

Speaker #1: Yeah , I think you've hit on it clearly records are a real positive . And as you know , we had strong record growth again in the quarter .

Speaker #2: It's an exciting time.

Operator 2: Thank you. Our next question today is coming from Kyle Peterson from Needham & Company. Your line is now live.

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

Speaker #3: Thank you. And this question today is coming from Kyle Peterson from Needham and Company. Your line is now live.

Speaker #1: You know , which is super attractive for all of our workforce solutions verticals . Chad and the team are doing a great job .

Kyle Peterson: Great. Thanks, guys. Good morning. Appreciate you taking the question. Just one for me. Wanted to touch on talent. Great to see you guys outperforming. It's been a pretty tough hiring market, but.

Speaker #1: Great. Thanks, guys. Good morning. Appreciate you taking the question. Just one for me. I wanted to touch on talent. Great to see you guys outperforming it's been a pretty tough hiring market.

Speaker #1: You know , on continuing to expand our data set . We have price and their price is one of the elements . We took price up one one .

Speaker #1: So that's definitely benefiting all of our verticals in Equifax . And AWS , including talent . We've got a bunch of new products that the team's rolling out .

Mark Begor: Still is.

Kyle Peterson: ... wanted to see if you guys could unpack a little bit what the bigger drivers are. Obviously, it seems like records is helping a lot.

Speaker #1: But I wanted to see—I wanted to see if you guys could unpack a little bit what kind of the bigger drivers are. Obviously, it seems like records is helping a lot with hit rates and stuff.

Speaker #1: So really a lot of innovation coming there and remember , you know , not only are we selling , you know , helping the background screeners by delivering that work history from our data set , you know , because we get the job title with every payroll record and we have that digital resume .

Mark Begor: Yep

Kyle Peterson: ... with hit rates and stuff, but maybe between whether it's records, price, bigger package density, longer background screens, just any more detail or color there would be really helpful for us.

Speaker #1: But maybe between whether it's records, price, bigger package density, longer background screens—just any more detail or color there would be really helpful for us.

Speaker #1: But increasingly we're delivering education data , incarceration data , you know , and other data elements to the background screeners . And then in different formats , you know , we're getting more sophisticated in delivering on our customers , you know , really requirements around different job categories and what data is required , you know , and a white collar in your world financial services job , there's a lot more history on job history and education history than there is in a blue collar job .

Mark Begor: Yeah. I think you've hit on it. Clearly, records are a real positive. As you know, we had strong record growth again in the quarter, which is super attractive for all of our Workforce Solutions verticals. Chad and the team are doing a great job on continuing to expand our data set. We have price, and their price is one of the elements. We took price up one-one, so that's definitely benefiting all of our verticals in Equifax and USIS, including talent. We've got a bunch of new products that the team's rolling out. Really a lot of innovation coming there. Remember, not only are we selling, helping the background screeners by delivering that work history from our data set, because we get the job title with every payroll record, and we have that digital resume.

Speaker #2: Yeah, I think you’ve hit on it clearly. Records are a real positive. And as you know, we had strong record growth again in the quarter.

Speaker #2: Which is super attractive for all of our workforce solutions verticals. Chad and the team are doing a great job on continuing to expand our data set.

Speaker #2: We have price, and their price is one of the elements. We took price up one-on-one, so that's definitely benefiting all of our verticals in Equifax and AWS, including talent.

Speaker #2: We've got a bunch of new products that the team's rolling out, so really a lot of innovation coming there. And remember, not only are we selling—helping the background screeners by delivering that work history from our data set.

Speaker #1: So we're , we've rolled out , you know , some , you know , more blue collar , which think about it as a last job worked , you know , kind of solution versus the last five years of employment .

Speaker #1: So just being more deliberate around having a suite of products to help our background screening customers

Speaker #2: Because we get the job title with every payroll record. And we have that digital resume. But increasingly, we're delivering education data incarceration data. And other data elements to the background screeners.

Mark Begor: Increasingly, we're delivering education data, incarceration data, and other data elements to the background screeners in different formats. We're getting more sophisticated in delivering on our customers' requirements around the different job categories and what data is required. In a white collar, in your world, financial services job, there's a lot more history on job history and education history than there is in a blue collar job. We've rolled out some more blue collar, which think about it as a last job worked kind of solution versus the last five years of employment. Just being more deliberate around having a suite of products to help our background screening customers.

Speaker #9: Great . Appreciate the color . Nice results .

Speaker #1: Thanks .

Speaker #3: Thanks . Thank you . Our next question today is coming from Jason Haas from Wells Fargo . Your line is now live .

Speaker #2: And then in different formats. We're getting more sophisticated in delivering on our customers' real requirements around different job categories and what data is required.

Speaker #10: Hey , good morning and thanks for taking my questions . I'm curious , why did the government verification business decline quarter over quarter ?

Speaker #2: And a white collar in your world, financial services job, there's a lot more history on job history and education history than there is in a blue collar job.

Speaker #10: I think historically you typically see like that revenue go up from 40 to 1 . Q and then also have a question just on two .

Speaker #10: Q why is that flat year over year ? Just because historically that's typically increases also from 1 to 2 .

Speaker #2: So we've rolled out some more blue collar, which think about it as a last job worked, kind of solution versus the last five years of employment.

Speaker #1: Q yeah , so it went up in one . Q we shared that earlier . So we had a very strong quarter . And we're very pleased with the momentum , not only in the quarter , but in particular for the long term pipeline , which we shared was up kind of two X year over year , second quarter , as we talked about in our prepared comments .

Speaker #2: So just being more deliberate around having a suite of products to help our background screening customers.

Kyle Peterson: Great. Appreciate the color. Nice results.

Speaker #1: Great, appreciate the color. Nice results.

Mark Begor: Thanks.

Operator 2: Thank you. Our next question today is coming from Jason Haas from Wells Fargo. Your line is now live.

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

Speaker #2: Thanks.

Speaker #3: Thanks. Thank you. Next question today is coming from Jason Haas from Wells Fargo. Your line is now live.

Speaker #1: And one of the earlier questions is we got a tough comp because we had a large win last year with SSA that were comping that activated in April of last year .

Jason Haas: Hey, good morning, and thank you for taking my question. I'm curious, why did the government verification business decline quarter-over-quarter? I think historically, you typically see that revenue go up from Q4 to Q1. Also, the question just on Q2, why is that flat year-over-year? Just because historically, that typically increases also from Q1 to Q2.

Speaker #5: Hey, good morning, and thank you for taking my questions. I'm curious, why did the government verification business decline quarter over quarter? I think historically, you typically see that revenue go up from Q4 to Q1.

Speaker #1: So that's a tougher comp , which is really driving , you know , the the the performance in the second quarter .

Speaker #5: And then I also have a question just on Q2. Why is that flat year over year? Just because historically, that typically increases also from Q1 to Q2?

Speaker #2: Yeah . And seasonally we're expecting to see revenue up in the second quarter versus the first , which is not unusual . Right ?

Speaker #2: Fourth versus first . I don't think there's really anything unusual in the trends that we saw this year .

Mark Begor: Yeah. It went up in Q1. We shared that earlier. We had a very strong quarter, and we're very pleased with the momentum, not only in the quarter, but in particular, more the long-term pipeline, which we shared was up kind of 2x year over year. Q2, as we talked about in our prepared comments in one of the earlier questions, is we got a tough comp because we had a large win last year with SSA that we're comping that activated in April of last year. That's a tougher comp, which is really driving the performance in Q2.

Speaker #2: Yeah, so it went up in Q1. We shared that earlier. So we had a very strong quarter, and we're very pleased with the momentum—not only in the quarter, but in particular, more the long-term pipeline, which we shared was up kind of 2x year over year.

Speaker #10: Okay . I thought that SSA contract is that was that like a one time benefit ? I thought that that launched into . Q but then that becomes an ongoing benefit .

Speaker #10: But it does .

Speaker #1: It does . But but you know , it's we're comping against it because it was a new contract in two . Q and as you point out , it does go on .

Speaker #2: Second quarter, as we talked about in our prepared comments and one of the earlier questions, is we got a tough comp because we had a large win last year with SSA that we're comping that

Speaker #1: You know , in the future , you know , beyond , you know , 2026 . But the comp is one that , you know , is one we have to overcome .

Speaker #1: The . Activated in April of last year . So that's a tougher comp , which is really driving , you know , the , the , the performance in the second quarter .

Speaker #1: And it was a big contract .

Speaker #10: Okay , okay . That's fair . And then just on the margins , we're really strong for AWS . The guidance now implies it looks like they're going to be down in the rest of the year .

John Gamble: Yep. Seasonally, we're expecting to see revenue up in Q2 versus Q1, which is not unusual, right? Q4 versus Q1, I don't think there's really anything unusual in the trends that we saw this year.

Speaker #1: Yeah . And seasonally .

Speaker #2: We're expecting to see revenue up in the second quarter versus the first, which is not unusual. Right? Fourth versus first.

Speaker #10: So yeah , what drove the beat and why does it why is that not continue going forward ?

Jason Haas: Okay. That SSA contract, was that like a one-time benefit? I thought that launched in Q2, but then that becomes an ongoing benefit.

Speaker #1: Yeah . And I hope you saw that Equifax margins were also quite strong in the quarter . And as you know we've got a guide for 75 basis points of margin expansion for the year which is you know , well above our 50 basis point long term framework .

Mark Begor: It does, but we're comping against it because it was a new contract in Q2. As you point out, it does go on in the future beyond 2026. The comp is one we have to overcome, and it was a big contract.

Speaker #1: So , you know , we feel really good , you know , about the operating leverage for AWS in particular . You know , they had a very strong first quarter .

Speaker #1: And then that operating leverage , you know , flowed through . And that's why we're still investing heavily in AWS . You know , we're , it's our , you fastest growing business over the long term .

Jason Haas: Okay. That's fair. Just on the margins were really strong for EWS. The guidance now implies it looks like they're gonna be down in the rest of the year. Yeah. What drove the beat, and why does that not continue going forward?

Speaker #1: And , you know , we're continuing to invest and the government vertical , we're investing Chad's investing in a bunch of new products .

Speaker #1: And we're also investing in , you know , capabilities and record additions . So it's one that we're continuing to invest in the business .

Mark Begor: Yeah. I hope you saw that Equifax margins were also quite strong in the quarter, and as you know, we've got a guide for 75 basis points of margin expansion for the year, which is well above our 50 basis points long-term framework. We feel really good about the operating leverage. For EWS in particular, they had a very strong Q1, and then that operating leverage flowed through. That's while we're still investing heavily in EWS. It's our fastest-growing business over the long term, and we're continuing to invest in the government vertical. Chad's investing in a bunch of new products, and we're also investing in capabilities in the record edition. It's one that we're continuing to invest in the business, and you just had the strong operating leverage flow through.

Speaker #1: And , you know , you just had the strong operating leverage flow through .

Speaker #10: Okay . All right . Great . Thank you

Speaker #3: Thank you . Next question is coming from Ashish Sabadra from RBC Capital Markets . Your line is now live .

Speaker #11: Hi . Thanks for taking my question . So CMS recently launched MI and income verification tool . How it is expected to change any competitive landscape for the government verification services .

Speaker #11: Thanks .

Speaker #1: Yeah , I think it's still early days on that solution . It's one that , you know , we think we can be complementary with , as you know , our scale data set provides an instant verification .

Speaker #1: It has large coverage . It provides a lot of productivity for the caseworkers at the state level . You know , we think that's they're , they're , their solution .

John Gamble: Okay. All right. Great to see you. Thank you.

Speaker #1: Looks a lot like our complete income . Obviously it's not integrated in there to go after either . Records . We don't have or to go after some of the gig income that we may not have in our data set , but we think it's a , our data set is just so much more comprehensive and instantly available .

Operator 2: Thank you. Next question is coming from Ashish Sabadra from RBC Capital Markets. Your line is now live.

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

Thank you. Next question is coming from Aisha Bajra from RBC Capital Markets. Your line is now live.

Ashish Sabadra: Thanks for taking my question. CMS recently launched Emmy, an income verification tool. How is this expected to change any competitive landscape for the government verification services? Thanks.

Speaker #1: We think there's a , you know , still a large position for us to continue to grow with CMS . And then you add to it some of the new requirements with OB three on work requirements , education requirements , or volunteering requirements .

Uh, thanks for taking my question. So CMS recently launched Emmy and income verification tool. How is this expected to change any competitive landscape for the government verification Services? Thanks,

Mark Begor: Yeah, I think it's still early days on that solution. It's one that we think we can be complementary with. As you know, our scale data set provides an instant verification. It has large coverage. It provides a lot of productivity for the caseworkers at the state level. We think their solution looks a lot like our Complete Income. Obviously, it's not integrated in there to go after either records we don't have or to go after some of the gig income that we may not have in our data set. But we think our data set is just so much more comprehensive and instantly available. We think there's still a large position for us to continue to grow with CMS. You add to it some of the new requirements with OB3 on work requirements, education requirements, or volunteering requirements.

Speaker #1: You know , we're rolling out a solution that will really deliver those capabilities , but it's going to be integrated . You know , with our core twin data set income offering that , you know , we think will be quite , quite beneficial , you know , for the Medicaid , Medicare verification applications .

Speaker #2: And it would just be another distribution channel for us . Obviously , we'll make sure our customers can get to our data and the way they want to .

Speaker #2: Yep .

Speaker #11: That's very helpful . Color . And if I can ask a question around agent K , one of the concerns that we've heard is agent K , I could potentially displace manual verification .

Speaker #11: And just given that manual verification is one of the key competition in your verification business , how does one of the questions that you get is how does the technology shift , if any ?

Mark Begor: We're rolling out a solution that will really deliver those capabilities, but it's going to be integrated with our core twin data set income offering that we think will be quite beneficial for the Medicaid, Medicare verifications.

Speaker #11: Equifax again , positioning in the verification business . Thanks .

Speaker #1: Yeah , we think it's pretty hard because as you know , that's all proprietary data you're talking about income and employment data is proprietary in our data set .

Um, it's 1 that, uh, you know, we think we can be complimentary with, as, you know, our scale data set provides an instant. Um, verification. It has large coverage. It provides a lot of productivity for the case, workers at the state level. Um, you know, we think that's that their, their, their solution looks a lot, like, our complete income. Obviously, it's not integrated in there to go after either records. We don't have or, um, to go after some of the gig income that, uh, we may not have in our data set, um, but uh, we think it's, uh, it our, our data set is just so much more comprehensive and instantly available. We think there's a, you know, still a large position for us to continue to grow with CMS and then you add to it. Um, some of the new requirements with ob3 on work requirements, uh, education, requirements or volunteering requirements. You know, we're rolling out a solution that will really deliver those capabilities, but it's going to be integrated, you know, with our core, um, twin data set income offering that, uh, you know, we think will be, uh, quite

John Gamble: It would just be another distribution channel for us. Obviously, we'll make sure our customers can get to our data in the way they want to.

Quite, uh, quite beneficial, you know, for, uh, the Medicaid-Medicare verification.

Speaker #1: And it's all , you know , permissioned by permissible purpose because the fair credit Reporting Act solution , and then , you know , the contributors , we have almost 5 million companies now contributing data to us every pay period .

Mark Begor: Yep.

And it would just be another distribution channel for us. Obviously, we'll make sure our customers can get to our data in the way they want to. Yep.

Ashish Sabadra: That's very helpful, Taylor. If I can ask a question around Agentic AI. One of the concerns that we've heard is Agentic AI could potentially displace manual verification. Just given that manual verification is one of the key competition in your verification business, one of the questions that we get is how does the technology shift, if any, Equifax, again, positioning in the verification business. Thanks.

Speaker #1: It's proprietary in their data set or with their payroll processor , HR software company . So it has to be consumer permission . There's a lot of friction with that .

Speaker #1: I don't we don't see how AI can can really facilitate , you know , that consumer permissioning to access that data because the data is not available anywhere in the World Wide Web .

Mark Begor: Yeah, we think it's pretty hard because as you know, that's all proprietary data. You're talking about income and employment data is proprietary in our data set, and it's all permissioned by permissible purpose because the Fair Credit Reporting Act solution. The contributors, we have almost 5 million companies now contributing data to us every pay period. It's proprietary in their data set or with their payroll processor HR software company. It has to be consumer permission. There's a lot of friction with that. We don't see how AI can really facilitate that consumer permissioning to access that data because the data is not available anywhere in the World Wide Web. It's all in proprietary housed environments, including Workforce Solutions at Equifax.

Speaker #1: It's all in proprietary housed environments , including workforce solutions at Equifax . So , you know , we just don't see that as a threat , which is really part of that AI data we highlighted in the in one of the charts in our deck this morning .

Speaker #1: And we did it again in February , that , you know , the work number as well as our credit data and our other data sets , you know , really are quite unique because AI can't access them .

Speaker #1: Only Equifax AI can access them or , you know , when we deliver it to our customers in a permissioned basis , they can access it , but it's just not available in the World Wide Web

That's very helpful color. And if I can ask a question around, um, agentic AI 1 of the concerns that we've heard is Agent AI could potentially displays manual verification, and just given that manual verification is 1 of the key competition in your verification business. How does 1 of the questions that we get is? How does the technology shift if any, uh, Equifax again positioning in the verification business? Thanks. Yeah. We we think it's pretty hard because as, you know, that's all proprietary data, you're talking about income and employment data is, you know, proprietary in our data set and it's all, you know, permissioned by permissible purpose because the Fair Credit Reporting Act solution and then, you know, the contributors we have almost 5 million companies. Now contributing data to us, every pay period is proprietary in their data set or with their payroll processor HR software company. So it has to be consumer permission. There's a lot of friction with that. I don't we don't see how AI can can really uh facilitate.

Speaker #3: Thank you . Next question today is coming from Faiza Alwy from Deutsche Bank . Your line is now live .

Speaker #12: Yes . Hi . Thank you . First , I just wanted to clarify on the government business , I think you said earlier in the call that you expect sort of second quarter revenue to be flat versus first quarter , and then I think you just said in response to , to , to a question that you expect it to be up .

Mark Begor: We just don't see that as a threat, which is really part of that AI data moat that we highlighted in one of the charts in our deck this morning, and we did it again in February, that The Work Number as well as our credit data and our other data sets really are quite unique because AI can't access them. Only Equifax AI can access them. When we deliver it to our customers on a permission basis, they can access it, but it's just not available on the World Wide Web.

You know, that consumer permissioning to access that data because the data is not available anywhere in the world wide web, it's all in uh proprietary housed environments including uh Workforce Solutions at Equifax. So you know, we just don't see that as a threat which is really part of that, AI data mode that we uh, highlighted in the in 1 of the charts in Our Deck, this morning. And we did it again in February that, you know, the work number as well as our, uh, Credit Data and our other data sets,

Speaker #12: So maybe if you could just put a minor .

Speaker #1: I did not say that . Oh , my intention was it to say it was , you know , we had had a strong first quarter , which we were pleased with .

Speaker #1: We also talked about our pipelines , which when we think about pipelines , you think about , you know , later in the year , in 2027 , that's generally how the kind of deal cycle is in government .

You know, they really are quite unique because AI can't access them—only Equifax. AI can access them or, uh, you know, when we deliver it to our customers on a permissioned basis, they can access it, but it's just not available on the worldwide web.

Operator 2: Thank you. Next question today is coming from Faiza Alwy from Deutsche Bank. Your line is now live.

Operator: Thank you. Next question today is coming from Faiza Alwy from Deutsche Bank. Your line is now live.

Faiza Alwy: Yes. Hi, thank you. First, I just wanted to clarify on the government business. I think you said earlier in the call that you expect sort of Q2 revenue to be flat versus Q1. Then I think you just said in response to a question that you expect it to be up. Maybe if you could just put a finer point on?

Thank you. Next question. Today is coming from FISA. How are you from Doja? Banker Line is now live.

Speaker #1: It's longer term . But we did say that we expect the second quarter to be flattish because of the tough comp versus last year .

Speaker #12: Got it . And then just to put a finer point on the year , I think . Previously , you know , we were expecting that you can grow sort of in line with your long term growth rate for AWS this year , which is up 13 to 15% .

Mark Begor: No, I did not say that.

Faiza Alwy: Okay. Sorry.

Mark Begor: No, my intention was to say we had a strong Q1, which we were pleased with. We also talked about our pipelines, which when we think about pipelines, you think about later in the year in 2027, that's generally how the kind of deal cycle is in government. It's longer term. We did say that we expect the Q2 to be flattish because of the tough comp versus last year.

Yes. Hi, thank you. Um, first I just wanted to clarify on the government business. I think you said earlier in the call that you expect sort of second quarter Revenue to be flat versus first quarter. And then I think you just said in response to, um, to to a question that you expected to be up. So maybe if you could just put a, no, I did not say that.

Speaker #12: Do you think that , you know , we sort of do that this year , or is that more are you expecting more of that benefit in 2027 ?

Speaker #2: Well , to be clear , we had only provided guidance for U.S. and verification services in total , right . And AWS and the Verification services guidance were not they were below the long term framework .

Speaker #2: We think they were very good and nice growth from 2025 , right . But but no , they weren't at the long term framework yet .

Faiza Alwy: Got it. Just to put a finer point on the year, I think previously we were expecting that you can grow sort of in line with your long-term growth rate for EWS this year, which is up 13% to 15%. Do you think that we sort of do that this year? Are you expecting more of that benefit in 2027?

No, my intention was, it was just was to say it was a, you know, we had a had a strong first quarter which we were pleased with. Um, we also talked about our pipelines which when we think about pipelines, you think about, you know, later in the year in 2027. That's generally how the the, the kind of deal cycle is in government. It's longer term, but we did say that we expect the uh second quarter to be flattish um because of the tough comp versus last year.

Speaker #2: Right . Part of it due to mortgage , part of it due to other factors like like weaker hiring market . So I think what Mark covered in his remarks and already is that our expectation is we're going to continue to see improved performance in government as we move through this year , but that the major opportunities that we have regarding the new that were passed by the government , etc.

Speaker #2: , that Mark covered in detail , we expect that really to start benefiting us in 2027 .

Got it, and then just to put a finer point on the year, I think previously, uh, we were expecting that you could grow sort of in line with your long-term growth rate for EWS this year, which is up 13% to 15%. Do you think that, you know, we sort of do that this year, or is that more—are you expecting more of that?

Benefit in 2027.

Mark Begor: Go ahead, John.

John Gamble: Well, to be clear, we had only provided guidance for EWS and Verification Services in total, right? EWS and the Verification Services guidance, they were below the long-term framework. We think they were very good and nice growth from 2025, right? No, they weren't at the long-term framework yet, right? Part of it due to mortgage, part of it due to other factors like weaker hiring market. I think what Mark covered in his remarks and already is that our expectation is we're going to continue to see improved performance in government as we move through this year, but that the major opportunities that we have regarding the new programs that were passed by the government, et cetera, that Mark covered in detail, we expect that really to start benefiting us in 2027.

Speaker #12: Understood , understood . Makes sense . And then I just wanted to ask , have you seen any impact on mortgage volumes from the trigger lead legislation ?

Speaker #12: I think , John , you previously said that , you know , it might you might shift more towards hard inquiry . So just curious if there's been any impact on overall volumes or any kind of shifts that we should .

Speaker #2: Not yet , not yet . Now , admittedly , it's very new in the quarter , right ? So not yet . And I think our guidance doesn't assume much in the second quarter will occur either

Speaker #3: Thank you . Our next question today is coming from Kevin McVeigh from UBS . Your line is now live .

Speaker #13: Great . Thanks so much . Hey , I guess Obviously the big focus on mortgage , but I wonder if you had any thoughts as to how the Vantagescore could impact auto consumer and some of the other areas from a kind share perspective .

Faiza Alwy: Understood. Makes sense. I just wanted to ask, have you seen any impact on mortgage volumes from the trigger lead legislation? I think, John, you previously said that you might shift more towards hard inquiries. Just curious if there's been any impact on overall volumes or any kind of shifts that we should know about.

Speaker #13: And then just from a regulatory perspective as well ?

Speaker #1: Yeah , I think it's a great question . As you know , there's already large penetration in , in non-mortgage or diversified markets .

John Gamble: Not yet. Now, admittedly, it's very new in the quarter, right? Not yet. I think our guidance doesn't assume much in Q2 will occur either.

Speaker #1: You've got large lenders that have been using vantage for many years . Number one , because of the performance of the score , you know , is more predictive because it includes more data , you know , current vantage Classic score , vantage 10.20 will close some of that gap , but you know , it has a performance element .

Understood understood makes sense. And, and then I just wanted to ask, have you seen any impact on mortgage volumes from the trigger lead legislation? I think John, you previously said that, um, you know, it might, you might shift more towards hard inquiry. So, just curious if there's been any impact on overall volumes or any kind of shifts that that we should not yet not yet. Now. Admittedly, it's very new in the quarter, right? So I'm not yet and I I think our guidance doesn't assume much in the second quarter will occur either.

Operator 2: Thank you. Our next question today is coming from Kevin McVeigh from UBS. Your line is now live.

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

Thank you. Our next question today is coming from Kevin McVay from UBS. Reminders, now, lives.

Kevin McVeigh: Great. Thanks so much. I guess. Obviously, the big focus is on mortgage, but I wonder if you had any thoughts as to how the VantageScore score could impact auto, consumer and some of the other areas from a share perspective, and then just from a regulatory perspective as well.

Great, thanks so much. Hey, I guess

Speaker #1: And then there's just a cost element . You know , it's a it's a less expensive score . You know , we charge , you know , much less than Fico does over there .

Obviously, the big focus is on mortgage, but I wonder if you had any thoughts as to how the VantageScore could impact auto, consumer, and some of the other areas?

Speaker #1: I think the other element that we think about is that if you're a multi , if you're not a monoline and your financial institution that's doing mortgage , auto loan or you're doing multiple products , you know , you're likely going to be incented to move your mortgage volume over because of that , you know , significant cost savings and the fact that an agency mortgage , if it's approved , they're going to , you know , take that loan and take it into the , you know , the pools that they purchased from the mortgage originators .

From a kind of share perspective, and then just from a regulatory perspective as well.

Mark Begor: Yeah, I think it's a great question. As you know, there's already large penetration in non-mortgage or diversified markets. You've got large lenders that have been using Vantage for many years. Number one, because of the performance of the score, is more predictive because it includes more data than the current FICO Classic score. FICO 10T will close some of that gap, but it has a performance element. There's just a cost element. It's a less expensive score. We charge much less than FICO does over there.

Speaker #1: But if you're using vantage and mortgage , you're likely going to use vantage with the rest of your portfolio . And , you know , we see the same opportunities , you know , over the medium and long term , you know , to drive more vantage adoption , you know , in the diversified markets or non mortgage spaces .

Mark Begor: I think the other element that we think about is that if you're not a monoline and you're a financial institution that's doing mortgage, auto, card, P-loan, or doing multiple products, you're likely going to be incented to move your mortgage volume over because of that significant cost savings and the fact that with an agency mortgage, if it's approved, they're going to take that loan and take it into the pools that they purchase from the mortgage originators. If you're using Vantage in mortgage, you're likely going to use Vantage with the rest of your portfolio. We see the same opportunities over the medium and long term to drive more Vantage adoption in the diversified markets or non-mortgage spaces. There already is a lot of adoption there.

Yeah, I think it's a great question is, you know, there's already um large penetration in uh in uh, non- mortgage or Diversified markets. Uh, you've got large lenders that have been using Vantage for many years number 1, because of the performance of the score, you know, is more predictive because it includes more data, you know, than the the current Vantage classic score, um, Vantage 10, 1, 0, t,

Speaker #1: And there already is a lot of adoption there . There's , you know , as I said , large lenders that are entirely vantage , you know , outside of mortgage because as you know , there's never , there's no regulatory requirement in Non-mortgage .

Speaker #1: There only wasn't , there only was in the mortgage space by the agencies that required the Fico score up until last July for 25 plus years .

Speaker #1: So we see it as an opportunity for sure .

Speaker #13: That's helpful . And then just from a pricing perspective , I know we adjusted the vantage pricing for mortgage . Any thoughts around auto ?

Speaker #1: Yeah , we're going to offer the vantage score . We're already in the market doing that at a discount . You know , to Fico .

Mark Begor: There's, as I said, large lenders that are entirely Vantage outside of mortgage, because as you know, there's no regulatory requirement in non-mortgage. There only was in the mortgage space by the agencies that required the FICO score up until last July for 25+ years. We see it as an opportunity for sure.

Speaker #1: Again , we sell the credit file plus the score when we sell the Fico score and mortgage or auto or any other market , we don't make any margin on that score .

Elements that we think about is that if you're a multi-, um, if you're not a mono line and you're a financial institution, that's doing mortgage autocord card P loan or, you know, doing multiple products. You know, you're, you're likely going to be incented to move your mortgage volume over because of that, you know, significant cost Savings in the fact that with an agency mortgage. If it's approved, they're going to, you know, take that loan and and and take it into the, um, you know, the pools that they purchase from the mortgage Originators. Um, but if you're using, um, Vantage and mortgage, you're likely going to use vantage with the rest of your portfolio. And, you know, we see the same opportunities, you know, over the medium and long term, you know, to drive more Vantage adoption, you know, in the Diversified markets or non-mortgage um, spaces and there already is a lot of adoption there. There's, you know, as I said large lenders that are entirely Vantage, you know, outside of mortgage because as you know, there's never there's no regulatory requirement in um non-mortgage.

Speaker #1: Sale . When we sell vantage , we make some margin on it . So , you know , we're obviously incented to deliver that to our customers .

There only wasn't—there only was—in the mortgage space by the agencies that, uh, required the FICO score up until last July for 25-plus years.

Speaker #1: And we see that as an opportunity going forward . Obviously , you know , much smaller given the , you know , significant $10 price , you know , in mortgage versus it's , you know , much less the Fico score in auto cards and loans .

So we see it as an opportunity, for sure,

Kevin McVeigh: That's helpful. Just from a pricing perspective, I know you adjusted the VantageScore pricing for mortgage. Any thoughts around auto?

The telephone and then just from a pricing perspective on, I know we adjusted the the Vantage score pricing um for mortgage, any thoughts around Auto?

Mark Begor: Same. We're going to offer the VantageScore, and we're already in the market doing that at a discount to FICO. Again, we sell the credit file plus the score. When we sell the FICO score in mortgage or auto or any other market, we don't make any margin on that score sale. When we sell VantageScore, we make some margin on it. We're obviously incented to deliver that to our customers, and we see that as an opportunity going forward. Obviously, much smaller given the significant $10 price in mortgage versus its much less, the FICO score in auto cards and P-loans. There's still a performance and a margin opportunity for our customers. We're certainly going to take advantage of that.

Speaker #1: But there's , still a performance and a , you know , margin opportunity for our customers . So , you know , we're certainly going to take advantage of that .

Speaker #1: And I think as you know , you know , last summer we rolled out the free vantage score with every paid Fico score , not only in mortgage but also in diversified markets or non-mortgage , you know , so we've got lenders that are taking that are using Fico that are taking vantage , you know , to make sure they understand it and understand the performance and evaluate it .

Speaker #1: So , as I said , a couple of times , we see that as an opportunity going forward

Speaker #3: Thank you . Next question is coming from Curtis Nagle from Bank of America . Your line is now live .

Speaker #14: Oh , terrific . Thanks very much . So maybe just sticking on the subject of vantage possible if you could provide a little more detail on I think you said 50 mortgage lenders are currently in production with vantage , I guess , just to confirm .

Mark Begor: I think as you know, last summer, we rolled out the free VantageScore with every paid FICO score, not only in mortgage but also in diversified markets or non-mortgage. We've got lenders that are using FICO that are taking VantageScore to make sure they understand it and understand the performance and evaluate it. As I said a couple times, we see that as an opportunity going forward.

Speaker #14: So I think these are non GSE mortgages . Correct . Are they being underwritten ? Are they being held on the books ? Securitized any sense of kind of the notional .

Same. Yeah, we're going to offer the Vantage, uh, score. We're already in the market doing that at a discount, you know, to, uh, FICO. Um, again, we sell the credit file plus the score. When we sell the FICO score in mortgage or auto or any other market, we don't make any margin on that score sale. When we sell Vantage, we make some margin on it. So, uh, you know, we're obviously incented, um, to, uh, deliver that, you know, to our customers. And we see that as an opportunity going forward. Obviously, you know, much smaller given the, you know, significant $10 price, you know, in mortgage versus it's, uh, you know, much less—the FICO score in auto, cards, and P loans. But there's, you know, still a performance and a, uh, you know, margin opportunity for our customers. So, you know, we're certainly going to take advantage of that, and I think as, you know, you know, last summer, we rolled out the free Vantage score with every paid FICO score, not only in mortgage, but also in diversified markets or non-mortgage, you know. So, we've got lenders that are taking that, are using FICO.

Speaker #14: Just trying to get a size of sort of where things sit before We get kind of full acceptance with the GSEs .

That are taking advantage, you know, to make sure they understand it and understand the performance, and, you know, evaluate it. So as I said a couple times, we see that as opportunity going forward.

Speaker #1: Yeah . These are admittedly smaller lenders , but they're lenders that , you know , a year ago were not using vantage and the mortgage space .

Operator 2: Thank you. Our next question today is coming from Curtis Nagle from Bank of America. Your line is now live.

Operator: Thank you. Our next question today is coming from Curtis Nagle from Bank of America. Your line is now live.

Thank you. Our next question is coming from Curtis Nagel from Bank of America. Your line is now live.

Curtis Nagle: Terrific. Thanks very much. Maybe just sticking on the subject of VantageScore, possibly if you could provide a little more detail on, I think you said 50 mortgage lenders are currently in production with VantageScore. I guess just to confirm, so I think these are non-GSE mortgages.

Speaker #1: They're not GSE , as you point out , they're , you know , some of the other federal agencies that , you know , don't fall under Fhfa as as well as other lenders .

Uh, terrific. Thanks very much. Um, so maybe just sticking on the subject of, uh, Vantage, um,

Speaker #1: And , you know , it's just reassuring to us to see that , you know , they're taking these loans in many cases , balance sheets , them .

Mark Begor: Correct.

Curtis Nagle: Are they being underwritten? Are they being held on the books, securitized? Any sense of the notionals? Just trying to get a size of sort of where things sit before we get full acceptance with the GSEs.

Speaker #1: But , you know , see the power and the performance of the vantage score . And obviously the , the cost opportunity of , you know , buying it at a lower price than , than , you know , what Fico , you know , currently charging .

Possible. If you could provide a little more detail on, I think you said 50 words lenders are are currently in production with Vantage. Um, I guess just to confirm, you know. So I think these are not non GSC mortgages. Correct? Are they being underwritten? Are they being held in the books?

Security ties any sense of kind of the notional—just trying to get a sense of where things sit, you know, before. Um,

Mark Begor: Yeah. These are admittedly smaller lenders, but they're lenders that a year ago were not using VantageScore in the mortgage space. They're non-GSE, as you point out. They're some of the other federal agencies that don't fall under FHFA as well as other lenders. It's just reassuring to us to see that they're taking these loans, in many cases, balance sheeting them, but see the power and the performance of the VantageScore and obviously the cost opportunity of buying it at a lower price than what FICO's currently charging. We see that as another indicator that the industry's going to be ready. I think a more powerful one is the 240 GSE lenders. Many of them also have some element of balance sheet for the non-agency loans or securitizations on their own.

Speaker #1: And , you know , we see that as another indicator that the industry is going to be ready . I think a more powerful one is the 240 .

Speaker #1: You know , GSE lenders , you know , many of them also have some element of balance sheet for the Non-agency loans or securitizations on their own .

Speaker #1: But the fact that they're taking the vantage score , ingesting it in their system . And , you know , obviously we talk to them all the time .

Speaker #1: There's a lot of interest , you know , around , you know , using vantage , you know , once it gets activated , you know , by the agencies

Speaker #2: And for , for lenders that are , that are non-GMO and are exclusively non GSE , we think the share of vantage is very high , right ?

Speaker #2: So we're the opportunity exists . The movement has occurred . The volumes are very low , but the share is very high

Speaker #14: Okay . Understood . And then maybe just a quick one just on , I think at least at a high level , pointed out some cost productivity from A.I.

Mark Begor: The fact that they're taking the VantageScore, ingesting it in their system, and obviously we talk to them all the time. There's a lot of interest around using Vantage once it gets activated by the agencies. For lenders that are non-GSE and are exclusively non-GSE, we think the share of Vantage is very high, right? Where the opportunity exists, the movement has occurred. The volumes are very low, but the share is very high.

Speaker #14: , maybe just a little more detail . Is that , you know , some , I guess , output of higher throughput . Is it , you know , raw expense takeout , some combination of the two , something else just , you know , any more detail , there would be helpful .

Reassuring to us to see that, uh, you know, they're taking these loans in many cases, balance sheeting them. But, uh, you know, see the power and the performance of the Vantage score and obviously, the, the, the the cost opportunity of uh, you know, buying it at a lower price than, uh, than you know what FICO, you know, currently charging. And uh, you know, we see that as another indicator that the industry is going to be ready. I think a more powerful 1 is the 240, you know, gsse, um, lenders, you know, many of them also have some element of balance sheet for the non- agency loans, um, or securitizations on their own. Um, but the fact that they're taking the Vantage score ingesting it in their system and, you know, obviously, we talked to them all the time. Um, there's a lot of interest, you know, around, uh, you know, using Vantage, you know, once it gets activated, uh, you know, by the agencies,

Speaker #1: Yeah . So maybe I'll be a little broader on it . You know , obviously we were pleased with our margin expansion ex Fico in the quarter .

Speaker #1: And we're also pleased . And I hope you are too with our guide for the year to be up 75 basis points . You know you think about that as being , you know , the first big piece there is operating leverage .

And for, for lenders, that are that are non GSC and are exclusively non GSC, we think to share a vantage is very high. Right? So, where are the opportunity exists? The, the the movement has occurred. The volumes are very low, but the share is very high.

Curtis Nagle: Okay. Understood. Maybe just a quick one just on, I think, Lisa, high level, pointed out some cost productivity from AI. Maybe just a little more detail, is that some, I guess, output of higher throughput? Is it raw expense takeouts, some combination of the two, something else? Just any more detail there would be helpful.

Speaker #1: You know , having our strong revenue growth , you know that , you know , is it the kind of higher end of our long term framework ?

Speaker #1: You know , delivers that incremental margin ? So that's a positive . You know , we also have in the quarter , you know , which was substantially higher than our guide in the first quarter , you had that mortgage .

Mark Begor: Yeah. Maybe I'll be a little broader on it. Obviously, we were pleased with our margin expansion ex FICO in the quarter, and we're also pleased, and I hope you are too, with our guide for the year to be up 75 basis points. You think about that as being the first big piece. There is operating leverage, having our strong revenue growth that is at the kind of higher end of our long-term framework delivers that incremental margin. That's a positive. We also have in the quarter, which was substantially higher than our guide in Q1, you had that mortgage lift that we had kind of in the middle of the month before rates went up, that kind of passed through and went through to the bottom line. I think that is indicative of when mortgage markets recover.

Okay, and understood. Um, and then maybe just a quick one, just on, you know, I think you, at least at a high level, pointed out some cost productivity from AI. Um, and maybe just a little more detail—you know, is that, you know, some, I guess, output of higher throughput? Is it, you know, roll expense takeout, some combination of the two, something else? Just, you know, any more detail there would be helpful. Yeah, so maybe I'll be a little broader on it, that, you know, obviously we were pleased with our—

Speaker #1: You know , lift that we had kind of in the middle of the month before rates went up . You know , that kind of pass through and went through to the bottom line .

Speaker #1: I think that , you know , is indicative of , you know , when , you know , mortgage markets recover , you know , we've been very clear with you that margins going to drop through .

Speaker #1: And you certainly saw it drop through in the first quarter . And then last , as you point out , you know , we're really getting some traction .

Speaker #1: And I would characterize it as still early days , meaning the runway . We have around deploying AI across our operations inside of Equifax .

Speaker #1: We call it AI for FX operations . You know , think about call centers and our paper processing centers is kind of the first frontier there .

Speaker #1: We're making a bunch of progress of using agents to start taking calls from consumers , using agents in AI to process the , you know , hundreds of thousands of paper documents .

Mark Begor: We've been very clear with you that margin's going to drop through, and you certainly saw it drop through in Q1. Then lastly, as you point out, we're really getting some traction, and I would characterize it as still early days, meaning the runway we have around deploying AI across our operations inside of Equifax. We call it AI for EFX. Operations, think about call centers and our paper processing centers, is kind of the first frontier there. We're making a bunch of progress in using agents to start taking calls from consumers, using agents and AI to process the hundreds of thousands of paper documents we get every month from consumers here in the United States and around the world. There's a lot of productivity there. Then we see productivity opportunities going forward in technology, where we have a large workforce.

Speaker #1: We get every month , you know , from consumers here in the United States and around the world . You know , there's a lot of productivity there .

Speaker #1: And then , you know , we see productivity opportunities going forward in technology where we have a large , you know , workforce .

Um, margin expansion X FICO in the quarter and we're also pleased. And I hope you are too with our guide for the year to be up 75 basis points. You know? You think about that as being, uh, you know, the first big piece there is operating, leverage, you know, having our strong Revenue growth, you know, that, uh, you know, is it the kind of higher end of our uh, long-term framework, you know, delivers that incremental margin. So that's a positive. Um, you know, we also have in the quarter, you know, which was substantially higher than our guide in the first quarter. You had that mortgage um, you know, list that we had kind of in the middle of the month before rates went up. You know that kind of passed through and and went through to the bottom line. I think that, you know, is indicative of, you know, when you know, mortgage markets recover, you know we've been very clear with you. That margin is going to drop through and you certainly saw it drop through in the first quarter and then last as you point out, you know, we're really getting some traction and I would, I would characterize it as still early days. Meaning the runway, we have the around deploying.

Speaker #1: We're seeing , you know , real momentum around using some of the AI tools to do coding , which we're very energized about .

Speaker #1: You know , as the opportunity of that going forward . And then broadly in our , you know , kind of support teams , whether it's a finance , HR , legal , you know , all of the support teams are deploying AI to increase their efficiency .

Speaker #1: So , you know , I would expect , you know , kind of AI driven productivity to be , you know , a multiyear lever for Equifax , you know , going forward .

AI across our operations inside of Equifax. We call it AI for EFX um, operations. You know, think about call centers and our paper processing centers is kind of the first Frontier there. We're making a bunch of progress of using agents to start taking, uh, you know, calls from consumers, um, using agents and AI to process. The, you know, uh, hundreds of thousands of paper documents. We get every month, you know, from consumers here in the United States and around the world. You know, there's a lot of product.

Speaker #1: And I think it is going to be for all companies . You know , we all read about it , but , you know , it's really real .

Mark Begor: We're seeing real momentum around using some of the AI tools to do coding, which we're very energized about as the opportunity of that going forward. Broadly in our kind of support teams, whether it's finance, HR, legal, all of the support teams are deploying AI to increase their efficiency. I would expect kind of AI-driven productivity to be a multi-year lever for Equifax going forward. I think it is going to be for all companies. We all read about it, but it's really real. The acceleration of tools, we're using things today that we weren't using six, nine, 12 months ago inside of Equifax to drive our speed, efficiencies, and accuracy. It's really exciting. I think those three together are really what's driving our above long-term framework margin expansion for the year. We're very pleased with that kind of operating leverage.

Speaker #1: And the acceleration of tools , you know , we're using things today that we weren't using six , nine , 12 months ago .

Speaker #1: You know , inside of Equifax , you know , to drive our speed efficiencies and accuracy . So it's , it's really exciting .

Speaker #1: So I think those three together , you know , are really what's driving , you know , our above long term framework margin expansion for the year .

Activity there. Um, and then uh you know, we see productivity opportunities going forward in technology where we have a large, you know, Workforce we're seeing, you know, real momentum around using some of the AI tools to do coding, um, which we're very energized about, uh, you know, is the opportunity of that going forward. And then broadly in our, you know, kind of support teams whether it's a finance, HR legal, uh, you know, all of the support teams are deploying AI to increase their efficiency. So, you know, I I would expect

Speaker #1: And , you know , we're , we're very pleased with that . You know , kind of operating leverage . And then obviously it generates , you know , incremental free cash flow that we can return to shareholders or use for bolt on M&A

Speaker #3: Thank you . Next question . Today is coming from from Surinder Thind from Jefferies . Your line is now live

Speaker #15: Thank you . John , can you maybe talk about just the hard inquiries versus the overall mortgage originations ? I'm thinking about it from a lender behavior perspective .

Speaker #15: Just any changes that you're seeing in hard versus soft and what the implications this is from a revenue perspective here , is just more usage of soft equals , less revenue .

Mark Begor: Obviously it generates incremental free cash flow that we can return to shareholders or use for bolt-on M&A.

Speaker #15: Or how should we think about the pending changes here or reporting ?

Um, you know, kind of AI-driven productivity to be, uh, you know, a multi-year lever for Equifax, you know, going forward, and I think it is going to be for all companies. You know, we all read about it, but, you know, it's really real, and the acceleration of, uh, tools—you know, we're using things today that we weren't using 6, 9, 12 months ago, you know, inside of Equifax, you know, to drive, uh, our speed, efficiencies, and accuracy. So it's, it's really exciting. So I think those three together, you know, are really what's driving, uh, you know, our above long-term framework margin expansion, uh, for the year, and, uh, you know, we're, uh, we're very pleased with that, you know, kind of operating leverage, and then obviously it generates, you know, uh, incremental free cash flow, um, that we can return to shareholders or use for both on M&A.

Operator 2: Thank you. Next question today is coming from Surinder Thind from Jefferies. Your line is now live.

Operator: Thank you. Next question today is coming from Surinder Thind from Jefferies. Your line is now live.

Speaker #2: I think what we've seen over the past several years , right , is a significant acceleration in the use of soft early in the mortgage process to give lenders a better view in terms of who their , who they're working with , who , who are submitting the applications , or who are they marketing to ?

Thank you. Next question today is coming from a Surrender Thin, from Jeffrey. Your line is now live.

Surinder Thind: Thank you. John, can you maybe talk about just the hard inquiries versus the overall mortgage originations? Thinking about it from a lender behavior perspective, just any changes that you're seeing in hard versus soft and what the implications this is from a revenue perspective here. Is just more usage of soft equals less revenue, or how should we think about the pending changes here around reporting?

Speaker #2: Right ? So I think it's both . There has been some shift of activity from hard to soft . That's certainly true . But there's also been an expansion of opportunity as lenders utilize these lower cost soft poles in order to get a better view of how they want to sell and market in the business .

Um, thank you, John. Can you maybe talk about just the hard inquiries versus the overall mortgage originations, thinking about it from a lender behavior perspective? Um, are there any changes that you're seeing in hard versus soft? And what are the implications of this from a revenue perspective? Here, is it just more usage of soft equals less revenue, or how should we think about the pending changes here, or on reporting?

Mark Begor: I think what we've seen over the past several years is a significant acceleration in the use of soft early in the mortgage process to give lenders a better view in terms of who they're working with, who are submitting the applications, or who are they marketing to, right? I think it's both. There has been some shift of activity from hard to soft. That's certainly true. There's also been an expansion of opportunity as lenders utilize these lower cost soft pulls in order to get a better view of how they want to sell and market in the business. Overall, what we think has happened is you have seen more activity over the time period if you combine hard and soft together, right?

John Gamble: I think what we've seen over the past several years is a significant acceleration in the use of soft early in the mortgage process to give lenders a better view in terms of who they're working with, who are submitting the applications, or who are they marketing to, right? I think it's both. There has been some shift of activity from hard to soft. That's certainly true. There's also been an expansion of opportunity as lenders utilize these lower cost soft pulls in order to get a better view of how they want to sell and market in the business. Overall, what we think has happened is you have seen more activity over the time period if you combine hard and soft together, right?

Speaker #2: So overall , what we think has happened is you're just you have seen more activity over the time period . If you combine hard and soft together , right ?

Speaker #2: Also , we think what has happened is , is that hard inquiries therefore have become less indicative of just the trend that's occurring in originations .

Speaker #2: As we mentioned in the . In the prepared remarks . Right ? So that's why we're going to start sharing with you the origination data that we have from the credit file .

Speaker #2: Yes , it's a little bit in arrears , but we think it's very it's very valuable information that we can share . And we'll continue to guide as we go forward based on annual our expectation on annual origination volume for the industry .

Speaker #2: So you can get a perspective on what our expectation is for the year .

Mark Begor: We think what has happened is that hard inquiries therefore have become less indicative of just the trend that's occurring in originations as we mentioned in the prepared remarks, right? That's why we're going to start sharing with you the origination data that we have from the credit file. Yes, it's a little bit in arrears, but we think it's very valuable information that we can share, and we'll continue to guide as we go forward based on our expectation on annual origination volume for the industry, so we can get a perspective on what our expectation is for the year.

John Gamble: We think what has happened is that hard inquiries therefore have become less indicative of just the trend that's occurring in originations as we mentioned in the prepared remarks, right? That's why we're going to start sharing with you the origination data that we have from the credit file. Yes, it's a little bit in arrears, but we think it's very valuable information that we can share, and we'll continue to guide as we go forward based on our expectation on annual origination volume for the industry, so we can get a perspective on what our expectation is for the year.

Speaker #15: Got it . And just to clarify , is the idea here that we're going to continue to see the mix shift changes , or are we kind of approaching some point of stabilization

An acceleration in the use of soft early in the mortgage process to give lenders a better view in terms of who their who they're working with, who, who are, who are submitting the applications, or who are they marketing to, right? So I think it's both. There has been some shift of activity from hard to soft. That's certain. But there's also been an expansion of opportunity as lenders. Utilize, these lower cost soft polls in order to get a better view of how they want to sell and Market in the business. So, overall, what we think is happening is you're just you you have seen more activity over the time period. Um, if you combine hard and soft together, right? Also, we think what has happened is is that hard, inquiries, therefore, have become less indicative of just the trend that's occurring in originations.

Speaker #2: I think we're going to continue to see some . We're going to continue to see changes in the mortgage industry based on the new products we launch .

Speaker #2: Right ? So and we're continuing to see that occur . So for example , we're very excited about the growth that we're seeing in our soft poles based on twin indicator and the other data we're providing , right ?

Speaker #2: So we're continuing to offer richer products on the front end , which drive more volume , exactly how the market shifts as we go forward .

Um as we mentioned in the in the prepared remarks, right? So that's why we're going to start sharing with you the origination data that we have from the credit file. Yes, it's a little bit in a rears but we think it's very uh it's very valuable information that we can share and we'll continue to guide as we go. Forward based on annual our expectation, on annual origination volume for the industry. So we can get a prospective on what our expectation is for the year.

Surinder Thind: Got it. Just to clarify, is the idea here that we're going to continue to see the mix shift changes, or are we kind of approaching some point of stabilization?

Speaker #2: I think we're going to see together . But at this point in time , what we're seeing is we're seeing ourselves drive more growth in soft as we believe we're taking share by offering more value on the front end .

Got it, and just to clarify, is the idea here that we're going to continue to see the mix shift changes, or are we kind of approaching some point of stabilization?

Mark Begor: I think we're going to continue to see changes in the mortgage industry based on the new products we launch, right? We're continuing to see that occur. For example, we're very excited about the growth that we're seeing in our soft pulls based on Twin Indicator and the other data we're providing, right? We're continuing to offer richer products on the front end, which drive more volume. Exactly how the market shifts as we go forward, I think we're going to see together. At this point in time, what we're seeing is we're seeing ourselves drive more growth in soft as we believe we're taking share by offering more value on the front end.

John Gamble: I think we're going to continue to see changes in the mortgage industry based on the new products we launch, right? We're continuing to see that occur. For example, we're very excited about the growth that we're seeing in our soft pulls based on Twin Indicator and the other data we're providing, right? We're continuing to offer richer products on the front end, which drive more volume. Exactly how the market shifts as we go forward, I think we're going to see together. At this point in time, what we're seeing is we're seeing ourselves drive more growth in soft as we believe we're taking share by offering more value on the front end.

Speaker #15: Got it . And then as a follow up on the whole Vantagescore for for debate , I mean , when we think about like , do lenders actually care about the performance of the credit scoring model as the current , you know , the market system works , meaning that I feel like the debate has been vs4 versus classic Fico .

Speaker #15: But I also think there's 20 in the mix . And , you know , the preliminary data suggests that there may be differences in performance model and which would , you know , be perhaps another consideration .

I think we're going to continue to see some—we're going to continue to see changes in the mortgage industry based on the new products we launch, right? So, and we're continuing to see that our—so, for example, we're very excited about the growth that we're seeing in our soft pulls based on Twin indicator and the other data we're providing, right? So we're continuing to offer richer products on the front end, which drive more volume. Um, exactly how the market shifts as we go forward, I think we're going to see together. But at this point in time, what we're seeing is we're seeing ourselves drive more growth in soft. As we believe, we're taking share by offering more value on the front end.

Surinder Thind: Got it. As a follow-up on the whole VantageScore FHFA debate, when we think about like, do lenders actually care about the performance of the credit scoring model as the current market system works? Meaning that I feel like the debate has been VS4 versus Classic FICO, but I also think there's 10T in the mix. The preliminary data suggests that there may be differences in performance model which would be perhaps another consideration in addition to price. How do we think about that?

Speaker #15: In addition to pricing . How do we think about that ?

Speaker #1: Yeah , I think that's a great question . I think broadly , lenders will use scores that are approved by the agencies . You know , you have to .

Speaker #1: So I think you got to start with that . And remember that the lenders are , you know , broadly originator originating the loan .

Got it. And then as a follow-up, um, on the whole VantageScore, FHFA debate—I mean, when we think about, like, do lenders actually care about the performance of the credit scoring model as the current, you know, the market system works? Meaning that I feel like the debate has been VS4 versus classic FICO, but I also think there's 10T in the mix.

Speaker #1: And then selling it to the to the government , you know , so they want to follow the specifications that they have . But I would make sure that we both think about and we do too , is that in that mortgage pre-qual and application process , you know , if you've got a mortgage score or data that's going to allow you to either approve more customers or put the customers , the consumer , the homeowner , the future homeowner , you know , in the right loan because there's more data and in the case of , you know , vantage 4.0 , there's just more data used in that score .

And you know, the preliminary data suggests that there may be differences in performance model, and which would, you know, be perhaps, um,

Another consideration, in addition to price, like how do we think about that?

Mark Begor: Yeah, I think it's a great question. I think broadly, lenders will use scores that are approved by the agencies. You have to. I think you got to start with that. Remember that the lenders are, you know, broadly originator, originating the loan and then selling it to the government. They want to follow the specifications that they have. I would make sure that we both think about, and we do too, is that in that mortgage pre-qual and application process, if you've got a mortgage score, or data that's going to allow you to either approve more customers, or put the customers, the consumer, the future homeowner, in the right loan because there's more data. In the case of VantageScore 4.0, there's just more data used in that score, so it should allow for a more accurate picture on that consumer.

Speaker #1: So it should allow for a more accurate picture on that consumer . And then , you know , we believe allow them to to originate more , which is a good thing and put them in the right loans because , you know what ?

Speaker #1: You don't want to do is have someone going through the application process and then they get disappointed because either they have to have a higher down payment or the interest rate is higher than they think , you know , because of , you know , not having as much data information , but , so I think both are true .

Speaker #1: And , you know , from our perspective , you know , I think it's broadly recognized , although some may be would disagree with this , but , you know , vantage 4.0 , you know , is a score that , you know , has more data in it than Fico classic .

Mark Begor: We believe it will allow them to originate more, which is a good thing, and put them in the right loans. Because what you don't want to do is have someone going through the application process, and then they get disappointed because either they have to have a higher down payment or the interest rate's higher than they think, because of not having as much data information. I think both are true. From our perspective, I think it's broadly recognized, although some maybe would disagree with this, but VantageScore 4.0 is a score that has more data in it than FICO Classic. I think 10T closes that gap once it's rolled out to VantageScore 4.0. What's approved by the agencies is what the originators are going to use, and that's what's important. I don't think there's a debate.

Yeah, I think that's a it's a great question. Um I think broadly um lenders you know will use scores that are approved by the agencies, you know, you have to so I think you got to start with that and remember that the lenders are, you know, broadly originator originating the loan and then selling it to the uh to the uh um government. You know. So they want to follow the specifications that they have. But I would make sure that we both think about and we do too is that in that mortgage prequel and application process. You know if you've got a mortgage score um or data that's going to allow you to um either approve, more customers um or um put the customers, the consumer, the homeowner the future homeowner, you know, in the right loan because there's more data and in the case of, you know, Vantage 4.0, there's just more data used in that score. So it should allow for a more accurate picture on that consumer and then,

Speaker #1: I think 20 closes that gap once it's rolled out , you know , to vantage 4.0 . But you know , what's approved by the agencies is what the originators are going to use .

Speaker #1: And that's what's important . And I think we're all I don't think there's a debate . I think we're all just waiting for , you know , when will the agencies be ready to accept the vantage score ?

Speaker #1: And we just think we're getting closer to that stage . And and again , from an Equifax perspective , you know , we're advantaged either way .

Speaker #1: You know , our guide for 2026 , you assumes no vantage conversion . We've laid out for you what the upside is . If there is vantage conversion , you know , it's only upside .

Speaker #1: And you know , there's really not a downside to Equifax because , you know , both of these scores are calculated using our credit data .

Mark Begor: I think we're all just waiting for when will the agencies be ready to accept the VantageScore score, and we just think we're getting closer to that stage. Again, from an Equifax perspective, we're advantaged either way. Our guide for 2026 assumes no VantageScore conversion. We've laid out for you what the upside is, if there is VantageScore conversion, it's only upside. There's really not a downside to Equifax because both of these scores are calculated using our credit data. You can't calculate the score without the credit data. We think we're well positioned going forward and we're trying to be responsive to our customers by offering the VantageScore score that delivers performance and certainly significant economic value with a $1 versus a 10.

Speaker #1: And you can't calculate the score without the credit data . So it's a you know , we think we're well positioned going forward .

Speaker #1: And we're trying to be responsive to our customers , you know , by offering the vantage score that delivers . And certainly significant significant economic value at , you know , a dollar versus ten .

You know, we believe allow them to to originate more, which is a good thing and put them in the right loans because, you know what, you don't want to do is have someone going through the application process, and then they get disappointed because either, they have to have a higher down payment, or the interest rates higher than they think, you know, because of, you know, not having as much data information. But, uh, so I think it's both are true. Um, and, you know, from our perspective, um, you know, I think it's broadly recognized, um, although some maybe would disagree with this, but, uh, you know, Vantage 4.0, you know, is a score that, you know, has more data in it than FICO classic, I think, 10t closes that Gap. Once it's rolled out, you know, at a vantage point 4.0, but you know, what's approved by the agencies, is what The Originators are going to use and that's what's important. And uh, I think we're all, I don't think there's a debate. I think we're all just waiting for, you know, when will the agencies be ready to accept the Vantage score? And we just think we're getting closer to that stage and and again

From an Equifax perspective, um, you know, we're

Speaker #3: Thank you . Next question is coming from Andrew Nicholas from William Blair . Your line is now live .

Speaker #16: Hi . Good morning . Just one question for me on the AI front , you talked about operating efficiency from AI product development , life cycles , patent generation , all the benefits you're seeing in the way that you use the technology .

Speaker #16: Could you speak more to how clients are interacting with you in the data differently , if at all ? Are you seeing any changes in usage patterns or evolution in how how often clients are interacting or won't interact with your data ?

Side to Equifax because, you know, both of these scores are calculated using our credit data and you can't calculate the score without the credit data. So, it's a, you know, we think we're well positioned going forward and, uh, we're trying to be responsive to our customers, you know, by offering the Vantage score, that delivers performance and certainly significant, significant economic value. It, uh, you know, a dollar versus 10,

Operator 2: Thank you. Next question is coming from Andrew Nicholas from William Blair. Your line is now live.

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

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

Andrew Nicholas: Hi, good morning. Just one question from me on maybe the AI front. You talked about operating efficiency from AI, product funnels, development life cycles, patent generation, all the benefits you're seeing in the way that you use the technology. Could you speak more to how clients are interacting with you and the data differently, if at all? Are you seeing any changes in usage patterns or evolution in how often clients are interacting or wanting to interact with your data? Any insights there would be great. Thank you.

Speaker #16: Any , any insights ? There would be great . Thank you .

Speaker #1: Yeah . So I think there's , there's long been a macro and it's still we're still in that macro about our customers want more data .

Hi, good morning. Um, just one question for me on, maybe, the AI front. You talked about operating efficiency from AI product funnel development, life cycles.

Speaker #1: They want more alternative data . They want more differentiated data . And you know , that's one that's , you know , a macro that's still , in my opinion , in early innings , meaning , you know , there are large lenders that only use the credit file today and aren't using alternative data , you know , and they know that they're going to get a lift with alternative data .

Speaker #1: What AI is allowing us to do . And again , Equifax has more alternative data than our competitors , which we think is an advantage for Equifax in an AI world because it allows you to really ingest that differentiated and additional data that's going to drive a more predictive or higher performing , you solution for either underwriting or identity or whatever the process is .

Mark Begor: Yeah. I think there's long been a macro, and we're still in that macro about our customers want more data. They want more alternative data. They want more differentiated data. That's one that's a macro that's still, in my opinion, in early innings. Meaning, there are large lenders that only use the credit file today, and aren't using alternative data. They know that they're going to get a lift with alternative data. What AI is allowing us to do, and again, Equifax has more alternative data than our competitors, which we think is an advantage for Equifax in an AI world because it allows you to really ingest that differentiated and additional data that's going to drive a more predictive or higher performing solution for either underwriting or identity or whatever the process is. We're super energized around number one, having the cloud substantially complete.

Speaker #1: So , you know , we're super energized around , you know , number one , having the cloud substantially complete . You know , we put all our data in a single data fabric .

Patent Generation, all all the the benefits you're seeing, in the way that you use the technology, could you speak more to how clients are interacting with you in the data differently? If at all, are you seeing any changes in usage, patterns or Evolution? And and how, uh, how often clients are are interacting or wanting to interact with your data, any any insights there? Would be great. Thank you. Yeah, so I think there's there's long been a macro and it's still, we're still in that macro about our customers want more data, they want more alternative data, they want more differentiated data. And, you know, that's 1, that's, uh, you know, a macro that's still in my opinion, an early Innings. Meaning, you know, there are large lenders that only use the credit file today.

Speaker #1: We've got large scale , differentiated data that's proprietary . You know , we have an AI mode around it . And now we're really investing in delivering that data to our customers .

Speaker #1: Either the individual data sets or for lots of customers scores and models that incorporate more data in it . I mean , you can't do that without the explainable AI that , as you point out , we've been investing in , you know , from a technology standpoint and , you with our patents , you know , around the ability to deliver that , you know , explainable AI that , you know , our customers require for their regulators and for their own internal processes and the fair Credit Reporting Act requires .

Mark Begor: We put all our data in a single data fabric. We've got large-scale differentiated data that's proprietary. We have an AI moat around it. Now we're really investing in delivering that data to our customers, either the individual datasets or, for lots of customers, scores and models that incorporate more data in it. You can't do that without the explainable AI that, as you point out, we've been investing in from a technology standpoint and with our patents around the ability to deliver that explainable AI that our customers require for their regulators, for their own internal processes, and the Fair Credit Reporting Act requires. Really both of those become another area that is an important differentiator in our space and for Equifax to make sure we're delivering solutions that have that higher performance. AI, we're really seeing a lot of momentum there.

Speaker #1: So , you know , really both of those become another , you know , area that is an important differentiator . You know , in our space .

Speaker #1: And for Equifax to make sure we're delivering solutions that , you know , have that higher performance and AI is we're really seeing a lot of momentum there .

Um, and aren't using alternative data, you know, and, and they know that they're going to get a lift with alternative data, what AI is allowing us to do. And again, Equifax has more alternative data than our competitors, which we think is an advantage for Equifax in an AI world because it allows you to really ingest, that differentiated and additional data. That's going to drive a more predictive or higher performing, you know, solution for either underwriting or Identity or whatever the process is. So you know we're super energized around, you know number 1 having the cloud substantially complete. You know we put all our data in a single data fabric, we've got large scale differentiated data. That's proprietary, you know we have an AI mode around it and now we're really investing in delivering that data to our customers, either the individual data sets uh, or for lots of customers, um, scores and models that incorporate more data in it. I mean, you can't do that without the explainable AI. That, as you point out, we've been investing in

Speaker #1: I think we pointed out that 100% of our scores last year were using our AI capabilities , and that means higher performance . Our products now are increasingly using AI .

Speaker #1: And , you know , we talked about some of our , you know , platforms that are having , you know , conversational AI .

Speaker #1: So our customers can use them more readily inside of their operations . So , you know , it's still very much early innings between the , the ability to deliver more differentiated data to our customers .

You know, from a technology standpoint and, you know, with our patents, you know, around the ability to deliver that, uh, you know, explainable AI that, you know, our customers require for their regulators and for their own internal processes and um, The Fair Credit Reporting Act requires so, you know, really both of those become another, you know, uh, area that is an important differentiator, you know, in our space. And for Equifax to make sure we're delivering solutions that, uh, you know, have that higher performance and AI is, we're really seeing a lot of

Mark Begor: I think we pointed out that 100% of our scores last year were using our AI capabilities, and that means higher performance. Our products now are increasingly using AI, and we talked about some of our platforms that are having conversational AI so our customers can use them more readily inside of their operations. It's still very much early innings between the ability to deliver more differentiated data to our customers and then the ability to do that with AI.

Speaker #1: And then the ability to do that with AI

Of momentum there. You know, I think we pointed out that 100% of our scores.

Speaker #16: Understood . Thank you .

Speaker #3: Thank you . Next question today is coming from Scott Wurtzel from Wolfe Research . Your line is now live

Speaker #17: Hey . Thanks , guys . I'm just one from me . You know , we've been getting a lot more questions around just the whole kind of try merge to merge dynamic in the potential of that move taking place .

Speaker #17: I guess given some of the rhetoric we've heard from industry participants . So I'm just kind of wondering what , you know , if there's anything you guys have heard from , whether it's your conversations with regulators or other industry participants , just around that whole dynamic of the potential for that .

Um, last year we were using our AI capabilities, and that means higher performance. Um, our products now are increasingly using AI and, uh, you know, we talked about some of our, uh, you know, platforms that are having, you know, conversational AI so our customers can use them more readily, um, inside of their operations. So, you know, it's—it's still very much early innings between the ability to deliver more differentiated data to our customers and then, uh, the ability to do that with AI.

Andrew Nicholas: Understood. Thank you.

Understood, thank you.

Operator 2: Thank you. Next question today is coming from Scott Wurtzel from Wolfe Research. Your line is now live.

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

Speaker #1: So yeah , our conversations are quite broad that it's well understood that there's large enough differences , differences between the three credit files that a merge provides performance , you know , meaning it includes more people , provides a more complete picture .

Thank you. Next question comes from Scott Wolo, from Wolfe Research. Line is now live.

Scott Wurtzel: Hey, thanks, guys. Just one from me. We've been getting a lot more questions around just the whole kind of tri-merge to bi-merge dynamic and the potential of that move taking place, I guess, given some of the rhetoric we've heard from industry participants. Just kind of wondering if there's anything you guys have heard from whether it's your conversations with regulators or other industry participants just around that whole dynamic and the potential for that to-

Speaker #1: If you think about it , you know , most consumers have , you know , multiple bank accounts . Not every bank will contribute to all three credit bureaus .

Speaker #1: And we've shared stats before . There's 10 million roughly , consumers that are only on one credit bureau . So if you're pulling 1 or 2 , you're never going to approve or even see that .

Mark Begor: Yeah. Our conversations are quite broad that it's well understood that there's large enough differences between the three credit files, that a tri-merge provides performance. Meaning it includes more people, provides a more complete picture. If you think about it, most consumers have multiple bank accounts. Not every bank will contribute to all three credit bureaus. We've shared stats before, there's 10 million, roughly, consumers that are only on one credit bureau. If you're pulling one or two, you're never going to approve or even see that. Then if you ever look at your credit score between the three credit bureaus, it's going to be different by 30, 40, and 50 points, and that's because not every bank contributes to all.

Speaker #1: And then if you ever look at your credit score between the three credit bureaus , it's going to be different by 30 , 40 , 50 points .

Speaker #1: And that's because , you know , not every bank contributes to all . So our view is that there's broad understanding that , you know , the tri merge delivers both access to credit , meaning having a more complete picture on the consumers .

Hey thanks guys, I'm just 1 from me, you know, we've been getting um, a lot more questions. Um, around. Just the whole kind of try merge to buy merge dynamic in the potential of that move taking place. I guess. Given some of the you know, rhetoric we've heard from industry participants. So um just kind of wondering what you know, if there's anything you guys have heard from, whether it's your conversations with Regulators or other industry, participants just around um that whole, you know, dynamic at the potential for that. So yeah, our our conversations are quite broad that. It's well, understood that there's large enough differences between the 3. Credit files that a timer merge provides performance you know and meaning it includes more people provides a more complete picture. If you think about it, you know most consumers have you know, multiple bank accounts, not every Bank.

Speaker #1: And it also delivers the same and safety and soundness , meaning you're seeing every trade line that a consumer has , both the good and the bad trade lines .

Speaker #1: So you've got a complete picture . So , you know , we think that there's , you know , broad support on the Hill with the regulators and with our customers about the the power of try merge .

Mark Begor: Our view is that there's broad understanding that the tri-merge delivers both access to credit, meaning having a more complete picture on the consumers, and it also delivers the same in safety and soundness, meaning you're seeing every trade line that a consumer has, both the good and the bad trade lines, so you've got a complete picture. We think that there's broad support on the Hill, with the regulators, and with our customers about the power of tri-merge.

Speaker #1: And I think I've shared before on other calls , you know , if you look at the more sophisticated in my opinion , lenders outside of mortgage , think about cards or others , you know , there's many that pull a try , merge because they get a more complete picture about the consumer for approvals , meaning they can approve more and they see all the trade lines .

Speaker #1: So they make sure that they're managing their losses and they're not missing a a trade line . That might be a negative trade line .

Mark Begor: I think I've shared before on other calls, if you look at the more sophisticated, in my opinion, lenders outside of mortgage, think about cards or others, there's many that pull a tri-merge because they get a more complete picture about the consumer for approvals, meaning they can approve more, and they see all the trade lines, so they make sure that they're managing their losses, and they're not missing a trade line that might be a negative trade line, in one of the bureaus if they're only pulling a one or 2B. We think there's a lot of support for it. Got it. Thanks, guys.

Speaker #1: You know , in one of the bureaus , if they're only pulling a 1 or 2 B , so we think there's a lot of support for it

Speaker #17: Thanks .

Speaker #18: Guys .

Speaker #3: Thank you . Next question is coming from Ryan Griffin from BMO capital Markets . Your line is now live .

Speaker #19: Thank you so much . I was just wondering what percentage of your volumes are soft versus hard pull and was wondering where you see that mix evolving over time with some of the new products benefiting in prequel ?

Try merge delivers, um, both um, access to credit, meaning having a more complete picture on the consumers and it also delivers the same and safety and soundness. Meaning you're seeing every trade line, um, that a consumer has both the good and the bad trade lines. So you've got a complete picture. So, you know, we think that there's, uh, you know, broad support, um, on the hill with the regulators. And with our customers about the, the power of Tri merge. And I think I've shared before on other calls, you know, if you look at the more sophisticated, in my opinion, um, lenders outside of mortgage, think about cards or others, you know, there's many, um, that pull a tri merge because they get a more complete picture about. The consumer for approvals meaning, they can approve more and they see all the trade lines. So they make sure that they're managing their losses and they're not missing a, uh, a trade line, that might be a negative trade line.

You know, in, uh, one of the bureaus. If they're only pulling a $1 or $2 billion. So, uh, we think there's a lot of support for it.

Speaker #19: Thank you .

Thanks guys.

Speaker #2: Yeah . So we don't we don't specifically disclose soft versus hard . And I think what we've indicated is over the last several years , what we've seen is soft pulls obviously grown meaningfully as a percentage of total pulls .

Operator 2: Thank you. Next question is coming from Ryan Grimmer from BMO Capital Markets. Your line is now live.

Operator: Thank you. Next question is coming from Ryan Grimmer from BMO Capital Markets. Your line is now live.

Thank you. Next question is coming from Ryan Griffin from BMO Capital Markets. Your line is now live.

Ryan Grimmer: Thank you so much. I was just wondering what percentage of your volumes are soft versus hard pull, and I was wondering where you see that mix evolving over time with some of the new products benefiting in pre-qual. Thank you.

[Analyst] (BMO Capital Markets): Thank you so much. I was just wondering what percentage of your volumes are soft versus hard pull, and I was wondering where you see that mix evolving over time with some of the new products benefiting in pre-qual. Thank you.

Speaker #1: And I would point you to our , our revenue is quite strong , you know , in hard and soft pulls , which we were very pleased with

Thank you so much. I was just wondering what percentage of your volumes are soft or hard to pull. And I was wondering where you see that mix evolving over time with some of the new products benefiting in prequel. Thank you.

Mark Begor: Yeah. We don't specifically disclose soft versus hard. I think what we've indicated is over the last several years, what we've seen is soft pulls obviously grown meaningfully as a percentage of total pulls. I would point you to our revenue is quite strong in hard and soft pulls, which we are very pleased with.

Speaker #19: Appreciate it . And then just on the lenders onboarded thus far , testing the Vantagescore was wondering if you could give any information on that group in terms of the customer size or type of lending institution , whether it's banks or independent mortgage brokers ?

Yeah, so we don't specifically disclose soft versus hard. Um, and I think what we've indicated is over the last several years, what we've seen is soft pulls, obviously, grow meaningfully as a percentage of total pulls.

Speaker #19: Thank you .

And I would point you to our revenue is quite strong.

Speaker #1: All of the above 240 is a lot and includes , you know , smaller ones , but a lot of the big ones .

You know, in hard and soft polls, which we were very pleased with.

Ryan Grimmer: Appreciate it. Just on the lenders onboarded thus far, testing the VantageScore score. I was wondering if you could give any information on that group in terms of the customer size or type of lending institution, whether it's banks or independent mortgage brokers. Thank you.

[Analyst] (BMO Capital Markets): Appreciate it. Just on the lenders onboarded thus far, testing the VantageScore score. I was wondering if you could give any information on that group in terms of the customer size or type of lending institution, whether it's banks or independent mortgage brokers. Thank you.

Speaker #1: So it's a , you know , broadly , you know , our customers understand , you know , how vantage operates . They understand that it's a performing score .

Speaker #1: They understand that , you know , Fannie and Freddie are going to activate it . You know , it's just a matter of time .

Mark Begor: All of the above. 240 is a lot, and it includes smaller ones, but a lot of the big ones. It's broadly, our customers understand how Vantage operates. They understand that it's a performing score. They understand that Fannie and Freddie are going to activate it. It's just a matter of time. It feels like we're getting closer. Then they also understand the cost advantage, which is significant to them. Remember, 1 in 8, 1 in 9, and 1 in 7 loans close, the others don't, and that's breakage for the mortgage lenders. At $1 of breakage versus $10 times 3, it's a significant cost savings. As you know, it's been quantified for the industry. It's over $1 billion of cost savings by moving to Vantage. That gets the attention of the lenders.

Appreciate it. And then, just on the lenders onboarded thus far, testing the Vantage score, was wondering if you could give any information on that group in terms of the customer size or type of lending institution, whether it's banks or independent mortgage brokers. Thank you.

Speaker #1: It feels like we're getting closer . And then they also understand the cost advantage , you know , which is significant to them .

Speaker #1: And remember , you know , 1 in 8 , 1 in 9 , 1 in 7 loans close . The others don't you know .

Speaker #1: And that's breakage for the mortgage lenders , you know , and at a dollar of breakage versus $10 times three , you know , it's a significant cost savings .

Speaker #1: As you know , it's been quantified . You know , for the industry , it's over $1 billion of cost savings , you know , by moving to vantage .

Speaker #1: So that gets the attention of the lenders

Speaker #3: Thank you . The next question is coming from Kelsey Zhu from Autonomous Research . Your line is now live

Speaker #20: Hi . Good morning . Thanks for taking my question . Could you maybe talk a little bit more about your expectation around Vantagescore market share gains and future pricing policy in the mortgage vertical over the medium term ?

All of the above, you know, 240 is a lot and includes, you know, smaller ones, but a lot of the big ones. So it's, uh, you know, broadly, uh, you know, our customers understand. Uh, you know, how Vantage operates, they understand that it's a performing score, they understand that, you know, uh, uh, Fannie and Freddie are going to activate it, you know, it's just a matter of time. It feels like we're getting closer, and then they also understand the cost advantage, you know, which is significant to them. And remember, you know, one in eight, one in nine, one in seven loans, um, close—the others don't, you know, and that's breakage for the mortgage lenders, you know? And at a dollar of breakage versus ten dollars times three, uh, you know, it's a significant cost savings. As you know, it's been quantified, uh, you know, uh, for the industry—it's over a billion dollars of cost savings, uh, you know, by moving to Vantage. So that gets the attention of the lenders.

Speaker #20: Thanks a lot

Operator 2: Thank you. Our next question is coming from Kelsey Zhu from Autonomous Research. Your line is now live.

Operator: Thank you. Our next question is coming from Kelsey Zhu from Autonomous Research. Your line is now live.

Speaker #1: Yeah , it's hard to put numbers . I don't know how far medium term is , but let's say over the next couple of years , you know , in my opinion , I think in our opinion , you know , once vantage is activated by the agencies , they'll be adoption and that'll be positive for Equifax .

Thank you. Our next question is coming from Kelsey Zu from Autonomous Research. Your line is now live.

Kelsey Zhu: Hi, good morning. Thanks for taking my question. Could you maybe talk a little bit more about your expectation around VantageScore score, market share gains, and future pricing policy in the mortgage vertical over the medium term? Thanks a lot.

Speaker #1: You know , it's not in our guide . So that'll be incremental margin . Our revenue will go down because we're selling a $1 score versus a $10 score .

Hi, good morning. Thanks for taking my question. Could you maybe talk a little bit more about your expectation around the VantageScore market, share gains, and future pricing policy in the mortgage vertical over the medium term? Thanks a lot.

Mark Begor: Yeah. It's hard to put numbers, and I don't know how far medium term is, but let's say over the next couple of years. In my opinion, I think in our opinion, once VantageScore is activated by the agencies, there'll be adoption, and that'll be positive for Equifax. It's not in our guide, so that'll be incremental margin. Our revenue will go down because we're selling a $1 score versus a $10 score. Our margins will go up because we're going to make a buck instead of making zero. Over the medium term, I think there's going to be substantial conversion. If the agencies are approving VantageScore, why would they pay $10 versus a dollar? It's one that's kind of common sense. As far as pricing, we're going to be certainly intended to be very competitive. I think the dollar reflects that versus the current FICO pricing.

Speaker #1: But our margins will go up because we're going to make a buck instead of making zero . You know , and over the medium term , you know , I think there's going to be substantial conversion .

Speaker #1: You know , why would a lender , you know , if if the agencies are approving vantage , why would they pay $10 versus a dollar ?

Speaker #1: You know , it's it's one that's , you know , kind of common sense , you know , as far as far as pricing , you know , we're going to be , you know , certainly intended to be very competitive .

Speaker #1: I think the dollar reflects that . You know , versus the current Fico pricing . I don't think any of us know what Fico is intending to do .

Speaker #1: You know , in January of 2027 , which is not that far away , you know , whether their price is going to go up or down or sideways , but , you know , we're going to be , you know , very competitive going forward .

Speaker #1: And , you know , we don't need a lot of price to deliver our long term framework . That's not how we operate .

Mark Begor: I don't think any of us know what FICO is intending to do in January 2027, which is not that far away, whether their price is going to go up, down, or sideways. We're going to be very competitive going forward. We don't need a lot of price to deliver our long-term framework. That's not how we operate. We're multifaceted in our ability to grow our business. Price is one element, but more important for us is share gains, new product rollouts. In the case of Workforce Solutions, record additions, new verticals that we're penetrating. We've got multiple levers for growth. In the case of VantageScore, it's really going to be a margin opportunity for us to grow our margins going forward.

Yeah. Um, it's hard to put um, numbers and I don't know how far medium term is but let's say over the next couple of years, you know, in my opinion, I think in our opinion, you know, once Vantage is activated by the agencies, uh, they'll be adoption and that'll be positive for Equifax, you know, it's not in our guide. Um, so that'll be incremental margin. Our Revenue will go down because we're selling a $1 score versus a ten dollar score, um, but our margins will go up because we're going to make a buck instead of making zero. Um, you know, and over the medium term, you know, I think there's going to be substantial conversion. Uh, you know, why would a lender, you know if uh, if the agencies are approving Vantage, why would they pay ten dollars versus a dollar? You know, it's uh, it's 1 that's uh, you know, kind of common sense, you know, as far as far as pricing, you know, we we're going to be, uh, you know, certainly intended to be very competitive. I think the dollar reflects that, you know, versus the the current FICO pricing. I don't think any of us know what bike

Speaker #1: You know , we're multifaceted in our ability to , grow our business prices . One element , but more important for us is , you know , share gains , you know , new product rollouts in the case of workforce solutions , record additions , you know , new verticals that were penetrating , you know , we've got multiple levers , you know , for growth .

Speaker #1: And , you know , in the case of vantage , it's really going to be a margin opportunity for us , you know , to grow our grow our margins going forward

Speaker #20: Got it . Thanks a lot . Second question was wondering if you can talk a little bit more about your outlook for volume growth across card auto , personal loans for the rest of the year ?

Speaker #20: Thanks a lot

Speaker #2: So I think we gave guide for our diversified markets for the second quarter . We gave some perspective on the full year . And and I think that's kind of consistent .

Kelsey Zhu: Got it. Thanks a lot. Second question. I was wondering if you can talk a little bit more about your outlook for volume growth across card, auto, personal loans for the rest of the year. Thanks a lot.

Speaker #1: But really not a lot of .

Speaker #2: Change , but not a lot of change , right ? It's pretty consistent across the rest of the year .

Speaker #1: The consumer is still , you know , broadly resilient , you know , delinquencies are still managed well . Our customers are strong , meaning the financial institutions .

Got it, thanks a lot. Um, second question—I was wondering if you can talk a little bit more about your outlook for volume growth across card, auto, and personal loans for the rest of the year. Thanks a lot.

Mark Begor: I think we gave guidance for our diversified markets for Q2. We gave some perspective on the full year, and I think that's kind of consistent. Really not a lot of change, right? Yeah. It's pretty consistent across the rest of the year. Yeah. The consumer is still broadly resilient. Delinquencies are still managed well. Our customers are strong, meaning the financial institutions. I think one variable is how long does this conflict go on in the Middle East and what is the impact on oil prices? What's the impact on inflation? What's the impact on consumer spending? Does that impact financial services? That's hard to handicap how long this is going to go. I think we all hope it gets resolved fairly quickly, and the markets seem to reflect that kind of bias.

John Gamble: I think we gave guidance for our diversified markets for Q2. We gave some perspective on the full year, and I think that's kind of consistent.

Mark Begor: Really not a lot of change

Speaker #1: You know , I think one variable is how long does this , you know , conflict , you know , go on in the Middle East and what is the impact on oil prices ?

John Gamble: not a lot of change, right? Yeah. It's pretty consistent across the rest of the year. Yeah.

Mark Begor: The consumer is still broadly resilient. Delinquencies are still managed well. Our customers are strong, meaning the financial institutions. I think one variable is how long does this conflict go on in the Middle East and what is the impact on oil prices? What's the impact on inflation? What's the impact on consumer spending? Does that impact financial services? That's hard to handicap how long this is going to go. I think we all hope it gets resolved fairly quickly, and the markets seem to reflect that kind of bias.

So, I think we gave guidance for our Diversified Markets for the second quarter. We gave some perspective on the full year and I think that's kind of consistent, right? Not a lot of change, but not a lot of change, right? It's pretty consistent across the rest of the year. Yeah. The consumer is still

Speaker #1: What's the impact on inflation ? What's the impact on consumer spending ? Does that impact , you know , financial services ? You know , that's hard to handicap .

Speaker #1: How long this is going to go . I think we all hope it gets resolved fairly quickly . And the markets seem to reflect that .

Speaker #1: You know , kind of bias . And I think you heard , you know , last week in to lesser degree this week from the large banks reporting , you know , that they're , you know , having good originations and managing their delinquencies broadly , you know , quite well .

Speaker #1: So I think that's a good outlook for us . You know , in , in FII when you look through the rest of the year

Mark Begor: I think you heard last week, and to a lesser degree this week, from the large banks reporting, that they're having good originations and managing their delinquencies broadly quite well. I think that's a good outlook for us in FI when you look through the rest of the year.

Speaker #3: Thank you . Our next question is coming from Craig Huber from Huber Research Partners . Your line is now live .

Speaker #21: Good morning . Thank you for taking the question . I think few people could probably blame you guys for not raising your guidance after the very strong first quarter .

You know, broadly, resilient—um, you know, delinquencies are still managed well. Our customers are strong, you know, meaning the financial institutions. Um, you know, I think one variable is how long does this, uh, you know, conflict, you know, go on in the Middle East, and what is the impact on oil prices? What's the impact on inflation? What's the impact on consumer spending? Does that impact, you know, Financial Services? You know, that's hard to handicap, how long this is going to go. I think we all hope it gets resolved, you know, fairly quickly, and the markets seem to reflect that, you know, kind of bias. And I think you heard, you know, last week and to a lesser degree this week, from the large banks reporting, you know, that they're, uh, you know, having good originations and, uh, managing their delinquencies broadly, uh, you know, quite well. So I think that's a good outlook for us, you know, in fee, when you look through the rest of the year.

Speaker #21: You know , just given the macro issues out there . But my very specific question is , in the month of March , with this war starting , this Iraq war , starting at the end of February , is there any areas in your business that you saw material movement down in the revenue growth rates , given this Iraq war , that you can attribute it to anywhere else , though ?

Operator 2: Thank you. Our next question is coming from Craig Huber from Huber Research Partners. Your line is now live.

Operator: Thank you. Our next question is coming from Craig Huber from Huber Research Partners. Your line is now live.

Our next question is coming from Craig Cuba, from Cuba Research Partners. Your line is now live.

Craig Huber: Good morning. Thank you for taking the question. I think few people could probably blame you guys for not raising your guidance after the very strong Q1, just given the macro issues out there. My very specific question is, in the month of March, with this Iran conflict starting at the end of February, is there any areas in your business that you saw material movement down in the revenue growth rates given this Iran conflict that you can-

Speaker #21: Can you talk about it ?

Speaker #1: Was it was meaningfully mortgage for sure . You know , meaning mortgage . We saw an uptick kind of in the middle of the quarter as rates came down .

Uh, good morning, thank you for taking the question. Um, I think few people could probably blame you guys for not raising your guidance after the very strong first quarter, you know, just given the, the macro issues out there. But my very specific question is, in the month of March with this war—starting, this Iran war starting at the end of February—is there any areas in your business that you saw material?

Speaker #1: You know , before the East conflict started . And then we saw , you know , I think a combination of rate increases and probably consumer psyche , you know , about something like that happening in the Middle East , you know , things mortgage slowed And then we talked about we saw , you know , a little bit , you know , in auto slowdown , you know , from probably higher rates .

Mark Begor: Mortgage

Craig Huber: attribute it to? Anywhere else, though, can you talk about?

Mark Begor: It was meaningfully in mortgage for sure. Meaning, in mortgage, we saw an uptick kind of in the middle of the quarter as rates came down before the Middle East conflict started. We saw, I think, a combination of rate increases and probably consumer psyche about something like that happening in the Middle East. Mortgage slowed. We talked about, we saw a little bit in auto slowdown from probably higher rates. There's also the higher prices of cars from the flow-through of tariffs and other impacts. We shared earlier that where mortgage is kind of running over the last four, five, six weeks is kind of back down in line with our February guidance for the year. Slightly below that, actually. That's why we held the year.

Uh, movement down in the revenue growth rates, um, given this Iran war that you can, mortgage attribute to anywhere else, though. Can you talk about it? It was print. It was—it was meaningfully mortgage, for sure. You know, meaning mortgage, we saw an uptick kind of in the middle of the quarter, uh, as rates came down, you know, before the Middle East conflict started. Um, and then we saw, you know, I think a combination of rate increases and probably consumer psyche, you know, about something like that happening in the Middle East—you know, things, uh, mortgage, slow.

Speaker #1: There's also the higher prices of cars , you know , from , you know , the flow through of tariffs and other impacts .

Speaker #1: But , you know , we , we shared earlier that , you know , we're mortgage is kind of running over the last 4 or 5 , six weeks is kind of back down in line with our February guidance for the year , you know , so that's why we , you know , slightly below that actually , but that's why we held the year .

Speaker #1: And , you know , you know , we're hopeful that if the conflict gets resolved and , you know , inflation comes down from the oil impact that , you know , there'll be some , you know , rate reduction .

And then we talked about, we saw, you know, a little bit, you know, in auto slowdown, uh, you know, from probably higher rates. There's also the higher prices of cars, you know, from, you know, the flow-through of tariffs and, and, and other impacts. Um, but, uh, you know, we, we...

Speaker #1: And John pointed out and , you know , I hope you saw that , you know , the significant , you know , I would call it pipeline , you know , of mortgages at these higher rates that continues to build , you know , because mortgage hasn't stopped .

Mark Begor: We're hopeful that if the conflict gets resolved and inflation comes down from the oil impact, that there'll be some rate reduction. John pointed out, and I hope you saw that the significant, I would call it pipeline of mortgages at these higher rates that continues to build. Because mortgage hasn't stopped, but you've got a large pipeline or portfolio of consumers that have mortgages at these higher rates of 5.5, and over 6, that will be ready for a refi as soon as rates tick down 25 basis points, 30 basis points, 50 basis points. That creates an opportunity for a refi that's going to be good news for us when that happens. Again, we saw a small piece of that in the middle of the quarter.

Speaker #1: But you've got , you know , a large pipeline or portfolio of , you know , consumers that have mortgages at these higher rates of five , five and a half and over six .

Speaker #1: You know , that will be ready for a refi . You know , as soon as rates tick down , you know , 25 basis points , 30 basis points , 50 basis points .

We shared earlier that you know where mortgage is kind of running over the last, you know, 4 5, 6 weeks is, you know, kind of back down in line with our February guidance, for the year. Um, you know, so that's why we, you know, slightly below that actually. But that's why we held the year and, uh, you know, you know, we're hopeful that if the conflict gets resolved and, you know, inflation comes down from the oil impact, uh, that, uh, you know, they'll be some, you know, rate reduction and John pointed out and uh, you know, I hope you you saw that uh, you know, the significant, you know, I would call it pipeline. You know, a mortgage is at these higher rates that continues to build, you know, because mortgage hasn't stopped. Um but you've got, you know, a large um pipeline or portfolio.

Speaker #1: That creates a , you know , an opportunity for a refi . That's going to be good news for us when that happens .

Speaker #1: And again , we saw , you know , a small piece of that in the middle of the quarter .

Speaker #21: My follow up question , if I could , on the securitization market for mortgages , how important is that market there ? Any feedback there , etc.

Speaker #21: , for getting vantagescore up and rolling and moving along here in the market ? Share gains on mortgages .

Of, uh, you know, consumers that have mortgages at these higher rates of 5.5 and a half and over 6, you know, that, uh, will be ready for a refi, um, you know, as soon as rates tick down, you know, 25 basis points, 30 basis points, 50 basis points. That creates, uh, you know, an opportunity for a refi that's going to be good news for us when that happens. And again, we saw, you know, a small piece of that in the middle of the quarter.

Craig Huber: My follow-up question, if I could. On the securitization market for mortgages, how important is that market there? Any feedback there, et cetera, for getting VantageScore score up and rolling and moving along here with market share gains on mortgages?

Speaker #1: We don't see it as a real event because , you know , there's a lot of securitization that's done in the non-mortgage space , you know , and auto and cards .

Speaker #1: There's large lenders that are , you know , exclusively vantage that have been securitizing , you know , auto portfolios and card portfolios for years , you know , five years , six years , seven years .

My follow-up question, if I could—on the securitization market for mortgages, how important is that market? Is there any feedback there, etc., for getting VantageScore up and rolling and moving along here, the market share gains on mortgages?

Mark Begor: We don't see it as a real event because there's a lot of securitization that's done in the non-mortgage space. In auto and cards, there's large lenders that are exclusively VantageScore that have been securitizing auto portfolios and card portfolios for years. 5 years, 6 years, 7 years. So it's well understood. We don't think it has an impact. It's really more getting the agencies to get their technology and their pricing tables set up to take in that VantageScore score. The indications we're getting is that they're getting close to being ready for that.

Speaker #1: So it's , it's well understood . We don't think it it has an impact . You know , it's really more getting the agency to get their technology and their pricing tables set up to take in that vantage score .

Speaker #1: And , you know , the indications we're getting is that they're getting close to being ready for that .

Speaker #21: Great . Thank you

Speaker #3: Thank you . Next question is coming from Zachary Gunn from f t partners . Your line is now live

Speaker #22: Hey , this is Zack Lasich on for Zachary Gunn . Just a couple questions on employer . It seems the macro is causing some deceleration there .

Tables, um, set up to, uh, take in that Vantage score and, you know, the indications we're getting is that they're getting, uh, you know, close to being ready for that.

Craig Huber: Great. Thank you.

Great. Thank you.

Operator 2: Thank you. Next question is coming from Zachary Gunn from FT Partners. Your line is now live.

Operator: Thank you. Next question is coming from Zachary Gunn from FT Partners. Your line is now live.

Speaker #22: Can you just talk about the underlying trends we're seeing ? You know , is it just the tax credit legislation ? Are there other factors .

Thank you. Next question is coming from Zachary Gun from FT Partners. Your line is now live.

Zach Blachic: This is Zach Blachic on for Zachary Gunn. Just a couple questions on employer. Since the macro is causing some deceleration there, can you just talk about the underlying trends you're seeing? Is it just the tax credit legislation? Are there other factors maybe between blue collar versus white collar, maybe geographically? Thanks.

[Analyst] (FT Partners): This is Zach Blachic on for Zachary Gunn. Just a couple questions on employer. Since the macro is causing some deceleration there, can you just talk about the underlying trends you're seeing? Is it just the tax credit legislation? Are there other factors maybe between blue collar versus white collar, maybe geographically? Thanks.

Speaker #22: You know , maybe between blue collar versus white collar , maybe geographically ? Thanks .

Speaker #1: No , the employer , the big impact is the work opportunity tax credit or what's , you know , not being expiring and not being approved .

Speaker #1: I think , you know , we're we and lots of others are lobbying to get that , you know , through Congress . You know , there's , I think , broad support to do it because it promotes , you know , the employment of , you know , certain individuals that , you know , really benefit from that .

Mark Begor: Yeah. The employer, the big impact is the Work Opportunity Tax Credit, or WOTC, expiring and not being approved. I think we and lots of others are lobbying to get that through Congress. There's, I think, broad support to do it because it promotes the employment of certain individuals that really benefit from that. Just as a reminder, we're continuing to process the WOTC applications, even though they're not being accepted for the tax credit, meaning that we're building a pipeline when it does get activated. It's hard to handicap when that's going to happen. That's a meaningful impact in that vertical and employer because it's a larger business for them, that we're not able to generate any revenue today. We're building a pipeline, once it does get activated, to submit those WOTC applications for approval.

This is Zach Latic on for Zachary Gone. Just a couple questions on Employer—uh, since the macro is causing some deceleration there. Can you just talk about the other trends we're seeing? You know, is it just the tax credit legislation, or are there other factors—maybe between blue collar versus white collar? Maybe geographically? Thanks.

Speaker #1: Just as a reminder , you know , we're continuing to process the what's the applications , even though they're not being accepted for the tax credit saint , meaning that we're building a pipeline when it does get activated and it's hard to handicap when that's going to happen .

Speaker #1: But that's a , you know , a meaningful impact in that vertical and employer because it's a large , larger business for them , you know , that we're not able to generate any revenue today , but we're building a pipeline .

Speaker #1: You know , once it does get activated to submit those , what's applications for approval

Yeah, the employer uh the the big impact is the work opportunity tax credit or watsi um you know, not being expiring and not being approved. I think uh, you know, we're we and lots of others are lobbying to get that, you know, through Congress. Um, you know, there's I think broad support to do it because it promotes, you know, the employment of uh, you know, certain individuals that uh, you know, really benefit from that. Um, just as a reminder, you know, we're continuing to process the watsi applications even though um they're not being accepted for the tax credit. Um same meaning that we're building a pipeline when it does get activated and it's hard to handicap when that's going to happen. Um, but that's a you know, a meaningful impact in that vertical and employer. Because it's a large larger business for them, you know, that uh we're not able to generate any Revenue.

Speaker #3: Thank you . Our next question today is coming from Owen Lau from Clear Street . Your line is now live .

Speaker #23: Hey , good morning . Thank you for squeezing me in . I just have a quick clarification on that . $35 million margin upside from vantage score conversion .

Today, but we're building a pipeline, you know, once it does get activated to, uh, you know, submit those Watsi applications, you know, for approval.

Operator 2: Thank you. Our next question today is coming from Owen Lau from Clear Street. Your line is now live.

Operator: Thank you. Our next question today is coming from Owen Lau from Clear Street. Your line is now live.

Speaker #23: Could you please talk about the assumption behind how how can we get to this math by $35 million ? And the margin profile of any score at $1 per score ?

Thank you. Our next question today is coming from Owen Lao from Clear Street. Your line is now live.

Owen Lau: Hey, good morning. Thank you for squeezing me in. I just have a quick clarification on that $35 million margin upside from VantageScore conversion. Could you please talk about the assumption behind how can we get to this math, like $35 million and the margin profile of VantageScore at $1 per score? Thanks.

Speaker #23: Thanks .

Speaker #1: Yeah . The margin profile on a dollar is 100% . Is that margin ? You know , think about it that way . And zero with our Fico score .

Speaker #1: And it's really just taking that dollar times current mortgage activity . And the 35 million assumes full adoption at today's run rate of of mortgage transactions .

Mark Begor: Yeah. The margin profile on a dollar is 100% margin. Think about it that way. It's zero with our FICO score, and it's really just taking that dollar times current mortgage activity, and the $35 million assumes full adoption at today's run rate of mortgage transactions. Obviously, if the mortgage market improves, that becomes a bigger number. Would you add anything, John?

Speaker #1: Obviously , if the mortgage market improves , that becomes a bigger number . Would anything . John .

Speaker #2: It's just based on our it's adoption at our 2026 guidance for the mortgage market , right ? It's just consistent with our guidance .

Speaker #2: If there was no Fico and 100% vantage , that's how you get to the 35 million .

John Gamble: No, it's just based on its adoption at our 2026 guidance for the mortgage market.

Hey, good morning, thank you for squeezing me in. I just have a quick clarification on that. 35 million dollars margin upside from uh vende score conversion. Could you please talk about the Assumption behind? How how can we get to this map by 35 million and the margin profile of venue score at 1 dollar per score. Thanks. Yeah, the margin profile on a dollar is 100% margin. Um, you know, think about it that way, and it's zero with our FICO score, and it's really just taking that dollar times current mortgage activity and the 35 million assumes full adoption it. Today's run rate of uh, of uh, mortgage transactions. Um, obviously if the mortgage Market improves that becomes a bigger number um would there anything? John know it's just based on our it's, it's

Speaker #1: And again , just to reclarify our guide for the year assumes 100 Fico delivery and no vantage conversion . So this is an upside for us .

Mark Begor: Yeah.

John Gamble: Right. It's just consistent with our guidance. If there was no FICO on 100% VantageScore, that's how you get to the 35 million.

Mark Begor: Again, just to re-clarify, our guide for the year assumes 100% FICO delivery and no VantageScore conversion. This is an upside for us. Again, if there is FICO to VantageScore conversion, our revenue would come down, but our margins would go up by that run rate of $35 million.

Speaker #1: And again , if there is Fico to vantage conversion , our revenue would come down . But our margins would go up by that run rate of 35 million .

Adoption at our 2026 guidance for the mortgage market, right? It's just consistent with our guidance. If there was no FICO, and 100% Vantage, that's how you get to the 35 million. And again, just to reclaim, our guide for the year assumes.

Speaker #23: Got it . So that conversion is 100% conversion from 0 to 100% vantage . Correct . Thanks . Thanks a lot

100% FICO delivery and no Vantage conversion. So this is an upside for us. And again, if there is FICO to Vantage conversion, our revenue would come down, but our margins would go up by that run rate of $35 million.

Owen Lau: Got it. That conversion is 100% conversion from 0 to 100% VantageScore.

Speaker #3: Thank you . Next question is coming from Simon Clinch from both trials and company Redburn . Your line is now live .

Mark Begor: Correct.

Owen Lau: Okay. Thanks.

Got it. So that conversion is 100% conversion from zero to 100, correct.

Mark Begor: Yeah.

Owen Lau: Thanks a lot.

Mark Begor: Yeah.

Owen Lau: Thanks a lot.

Speaker #24: Hi . Thanks for taking my question . Just wanted to change subject a little bit and just going back to the discussion , you had on consumer Permissioning within the verification business , I note that the current friction we have with consumer permission is , I think that the consumer just has to put in their own offer , their login details and passwords .

Correct. Thanks a lot.

Operator 2: Thank you. Next question is coming from Simon Chinnick from Rothschild & Co Redburn. Your line is now live.

Operator: Thank you. Next question is coming from Simon Chinnick from Rothschild & Co Redburn. Your line is now live.

Thank you. Next question is coming from Simon clinch from both trials and Company. Redbarn your line is now live

Simon Chinnick: Hi. Thanks for taking my question. Just wanted to change subject a little bit and just going back to the discussion you had on consumer permissioning within the verification business. I know the current friction we have with consumer permission is, I think, that the consumer just has to offer their login details and passwords, and obviously that creates a huge amount of friction in the whole process. Is there a world in which the requirement to actually input passwords and login details goes away, where just actually giving permission allows access to that data via those providers? Just curious about your thoughts around that kind of the legal pathway to that kind of environment. Thanks.

Hi. Uh thanks for taking my question. Um just wanted to change uh subject a little bit and

Speaker #24: And obviously that creates a huge amount of friction in the whole process . Is there a world in which the requirement actually input passwords and login details goes away ?

Just going back to uh the discussion you had on uh consumer permissioning uh within the uh, verification business. Um, I know the the current friction we have with consumer permissions, I I think that the consumers just have to put in their own

Speaker #24: Where just actually giving permission allows access to that data via those via those providers ? Just curious about your thoughts around that kind of the , the legal pathway to , to that kind of environment .

Uh, offer their login details and passwords, and obviously that creates a huge amount of friction in the whole process. Is there a world in which

Speaker #24: Thanks .

Speaker #1: Yeah . It's hard to see that happening . I don't know where they would . I think you're assuming you're going down the path of like an AI agent somehow would have to get access to that user ID and password , you know , from that individual consumer , because they're all individualized , you know , by every individual for every account .

Mark Begor: Yeah. It's hard to see that happening. I don't know where they would. I think you're going down the path of an AI agent somehow would have to get access to that user ID and password from that individual consumer, because they're all individualized by every individual for every account they have. Everyone's got lots of accounts, so it's hard to see that happening. What we see in consumer permissioning, and we participate in it, is that there's a lot of friction with it, and our customers typically don't want to use it because in an application process, too many consumers drop out when they're asked to do more. Meaning they want a friction-free, very smooth process, which means instant decisioning, and you can't do instant decisioning with consumer permission.

The, the requirement actually input passwords and login details. Um, goes away, where just actually giving permission allows, um, access to that data, uh, via those, um, uh, via those providers. Um, just curious about your thoughts around that kind of the, the legal Pathway to, to that kind of, um, thanks.

Speaker #1: They have , you know , and everyone's got , you know , lots of accounts . So it's hard to see that happening .

Speaker #1: What we see in consumer permissioning and we participate in it is that there's a lot of friction with it . And our customers typically don't want to use it because in a application process , too many consumers drop out when they're asked to do more , you know , meaning they want a friction free very , you know , smooth process , which means instant decisioning .

Yeah, it's hard to see that happening. I don't know where they would. I think you're you're going down the path of like an AI agent. Somehow would have to get access to that user ID and password. You know, from that individual consumer because they're all individualized, you know, by every individual for every account, they have, you know, and everyone's got, you know, lots of accounts. So it's hard to see that happening. What we see in consumer fishing and we participate in it. Um, is that there's a lot of friction with it and our customers

typically don't want to use it because in a application process,

Speaker #1: And you can't do instant decisioning with consumer permission . So there's a place for it . And that's why we've rolled out our complete income solution for government .

Speaker #1: And we've had some , you know , wins in the government space . You know , that , you know where that consumer is willing to invest the time .

Mark Begor: There's a place for it, and that's why we've rolled out our Complete Income solution for government, and we've had some wins in the government space where that consumer's willing to invest the time. I think that's where you really get to. As far as the AI element, it's hard to see.

Speaker #1: I think that's where you really get to . And as far as the AI element , it's hard to see

Speaker #24: Okay . That's that's helpful . Thanks . And just one quick follow up really from a technical perspective here , when you talk about your X Fico revenues , revenue growth .

And uh that's why we've rolled out our complete income solution for government. And we've had some, uh, you know, wins in the government space. You know, that, you know, where that consumer is willing to invest the time. I think that's where you really get to. And and as far as the AI element, it's hard to see.

Simon Chinnick: Okay. That's helpful. Thanks. Just one quick follow-up. Really from a sort of technical perspective here. When you talk about your ex-FICO revenues, revenue growth, how are your reseller revenues treated in that? Are you stripping the FICO revenues out-

Okay, that's helpful. Thanks, and just one quick follow-up. Um,

Speaker #24: How are the , how are your reseller revenues treated now ? Are you stripping the Fico revenues out all the way through seller Group as well ?

Speaker #24: All the way , all the way , all the way through , through . That includes the Fico revenues from the , the resold Fico's from the other bureaus within that

Mark Begor: All the way through.

Simon Chinnick: from that reseller group as well? All the way through.

Mark Begor: All the way through.

Speaker #1: We have a try merge business . This , this , this really assumes the Equifax piece .

John Gamble: All the way through.

Simon Chinnick: That includes.

Mark Begor: All the way through.

Simon Chinnick: ... that includes the FICO revenues from the resold FICOs from the other bureaus within that?

Mark Begor: All the way through.

Simon Chinnick: ... that includes the FICO revenues from the resold FICOs from the other bureaus within that?

Really from a, a sort of technical perspective here where, when you talk about your ex-FICO revenues, uh, revenue growth, um, how are the, uh, how are your reseller revenues treated or not? Are you stripping the FICO revenues out, uh, all the way we sell a group as well? All the way, all the way, all the way. So that way, all the way through, that includes the FICO revenues from the, the resolved FICO from the other bureaus.

Speaker #2: So , so what we assume is , is just any revenue that we pay to Fico or any revenue that would be paid to Fico by Experian and TransUnion as effectively passed through to us by the by , by the price that they charge us .

Mark Begor: We have a tri-merge business.

Simon Chinnick: Yeah.

Mark Begor: This really assumes the Equifax piece.

John Gamble: What we assume is.

Simon Chinnick: Just that.

John Gamble: ... any revenue that we pay to FICO or any revenue that would be paid to FICO by Experian and TransUnion is effectively passed through to us by the price that they charge us, right? This is to try to cover-

Speaker #2: Right . So this is this is to try to cover as best we can all of the all of the Fico score revenue that we're paying .

Speaker #2: Yeah , either directly or indirectly .

Simon Chinnick: Yeah

John Gamble: as best we can, all of the FICO score revenue that we're paying.

Speaker #24: Okay . That's , that's great . That really clears it up . Thank you very much .

Speaker #1: Thank you .

Simon Chinnick: Yeah.

John Gamble: Either directly or indirectly.

Speaker #3: Thank you . Our final question today is coming from Arthur Truslove from Siti . Your line is now live

John Gamble: Either directly or indirectly.

Simon Chinnick: Okay. All right. Okay. That's great. That really clears it up. Thank you very much.

Within that we we have a tri merge business. Um this is this this really assumes the Equifax piece. Yeah. So so what we do is is any Revenue that we pay to FICO or any Revenue, that would be paid to FICO by Experian and Transunion as effectively passed through To Us by the, by by the price that they charge us, right? So this is this is to try to cover as best we can. All of the all of the FICO score Revenue that we're paying. Yep. So either directly or indirectly. All right.

Okay, that's that's great. That really clears it up. Thank you very much.

Mark Begor: Thank you.

Speaker #25: Good morning . Thank you very much .

Operator 2: Thank you. Our final question today is coming from Arthur Truslove from Citi. Your line is now live.

Operator: Thank you. Our final question today is coming from Arthur Truslove from Citi. Your line is now live.

Thank you.

Speaker #1: I'm sorry . Arthur , can you get closer to the phone ? We can't hear you .

Thank you. Our final question today is coming from Arthur Kruse from City. Your line is now live,

Speaker #25: Okay . Is that better ? Can you hear me now ?

Arthur Truslove: Good morning. Thank you very much. Sorry for my question.

Speaker #1: No , it's tricky . It's a little better . There you go . Try that .

Mark Begor: Sorry, Arthur, can you get closer to the phone? We can't hear you.

Um, good morning. Thank you very much the second. My question. Sorry, Arthur, can you get closer to the phone? We can't hear you.

Arthur Truslove: Is that better? Can you hear me now?

Speaker #25: Yeah . Sorry about that . So for me , you obviously mentioned earlier that AI is contributing to your margin development . And that's very positive .

Mark Begor: No. It's tricky.

No.

Arthur Truslove: Still bad?

Mark Begor: It's a little better.

Tricky.

Arthur Truslove: Hang on a second.

Mark Begor: There you go. Try that.

It's a little better. Hang on a second.

Arthur Truslove: Yeah. Sorry about that. For me, you obviously mentioned earlier that AI is contributing to your margin development, and that's very positive. Obviously, your sort of midterm margin guide's always been 50 basis points, since I've been involved covering the stock. I guess my question would be, in what sort of set of circumstances could you see that midterm margin guide being bumped up to 75 or 100 basis points? I just wondered what might bring that about. Thank you.

There you go. Try that.

Speaker #25: Obviously , your of midterm margin guide has always been 50 Bips since I've been involved covering the stock , I guess my question would be like , in what sort of set of circumstances could you see that midterm margin guide being bumped up to ?

You mentioned earlier that.

Speaker #25: You know , 75 or 100 basis points ? So I just wondered what what might bring that about ? Thank you .

Contributing to your margin development, and that's right. Positive, obviously, your sort of midterm margin guides have always been 50 bps since I've been involved covering the stock. I guess...

Speaker #1: Yeah , it's a fair question . We're obviously pleased with our guide for the year and super pleased with our performance in the quarter .

Speaker #1: And as you know , you know , the margin expansion , you know , really has two big levers . You know , one is the core operating leverage from the business .

Mark Begor: Yeah. It's a fair question. We're obviously pleased with our guide for the year and super pleased with our performance in the quarter. As you know, the margin expansion really has two big levers. One is the core operating leverage from the business and the strong top-line growth with the operating leverage you get from that generates some of that margin lift, which is directionally 50 basis points with our long-term framework for revenue growth. If we're able to grow revenue faster, that's going to be attractive for us as far as operating leverage. On the AI side, it's kind of early days. We're only months into this as far as deploying it. I think as we get further into it, we see some of the further benefits in operations, which, think about that as our call centers and operations centers, which are quite substantial.

In what sort of set of circumstances, could you see that midterm margin guide being bumped up to, you know, 75 or 100 basis points? Um so I just wondered what what what what what what might bring that about? Thank you.

Speaker #1: And , you know , the strong top line growth , you know , with with the operating leverage you get from that , you know , generates , you know , some of that margin lift , which is , you know , in directionally that 50 basis points , you know , with our long term framework for revenue growth .

Speaker #1: And if we're able to grow revenue faster , that's going to be attractive for us as far as operating leverage on the AI side , it's kind of early days .

Yeah, it's it's a it's a fair question. Um we're obviously pleased with our guide for the year and super pleased with our performance in the quarter. And as you know, you know the margin expansion, you know, really has 2 big levers. You know, 1 is the core operating leverage from the business and, you know, uh, the strong Topline growth, uh, you know, with with uh, the operating leverage, you get from that, you know, generates, uh, you know, some of that margin lift, which is the, you know, in in

Speaker #1: You know , we're only months into this , you know , as far as deploying it . And , and I think as we get further into it , we see some of the , you know , further benefits , you know , in operations , which , you know , think about that as our call centers and operations centers , which are quite substantial .

Speaker #1: As I mentioned earlier , as we start getting into the technology side and our ability to use AI to really accelerate our coding , you know , capabilities , which we're seeing some early progress there .

Mark Begor: As I mentioned earlier, as we start getting into the technology side and our ability to use AI to really accelerate our coding capabilities, which we're seeing some early progress there. I think as that unfolds and then across the rest of the organization, we see some of the benefits. We'll certainly, at the right time, take a look at our long-term margin goal. Today, we feel very comfortable with the 50 bps. We're very pleased with our outperformance guide for 2026 and at 75 bps. We'll certainly look at it in the future as we get further into the AI journey.

Speaker #1: I think , you know , is that unfolds and then across the rest of the organization , we see some of the benefits .

Speaker #1: You know , we'll certainly at the right time , you know , take a look at our long term margin goal today . We feel very comfortable with the 50 Bips .

Speaker #1: We're very pleased with our outperformance guide for 2026 . And , you know , at 75 Bips and then , you know , will certainly look at it in the future as we get further into the AI journey .

Speaker #3: Thank you . We reached into our question and answer session . I'd like to turn the floor back over to Trevor for any further closing comments

Directionally that 50 basis points, you know, with our long-term framework for Revenue growth. And if we're able to grow Revenue faster that's going to be attractive for us as far as operating leverage on the AI side. It's kind of early days, you know, we're only months into this, you know, as far as deploying it and and I think, as we get further into it, we see some of the, you know, further benefits uh, you know in operations which you know, think about that as our call centers and operations centers which are quite substantial. Um, is I mentioned earlier as we start getting into the technology side and our ability to use AI uh to really accelerate our coding, um you know, capabilities which we're seeing some early progress there. I think, you know, is that unfolds and then at the rest of the organization, we see some of the benefits. You know, we'll certainly at the right time, you know, take a look at our long-term margin goal today. We feel, you know, very comfortable with the 50 bips. We're very pleased with our outperformance guide for 2026 and and you know, it's 75 bips and then uh, you know, we'll certainly look at

It in the future as we get further into the AI journey.

Speaker #26: Yeah , thanks for everybody's time today . If you have any follow up questions , please reach out to Molly and I thank you and have a good day .

Operator: Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to Trevor for any further closing comments.

Thank you. We reached end of our question and answer session. I'd like to turn the floor back over to Trevor for any further. Closing comments.

Trevor Burns: Yep. Thanks for everybody's time today. If you have any follow-up questions, please reach out to Molly and I. Thank you, and have a good day.

I am—uh, thanks for everybody's time today. If you have any follow-up questions, uh, please reach out to Molly and me. Thank you, and have a good day.

Operator: Thank you. That does conclude today's teleconference webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

Thank you bye. Just conclude today's teleconference webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

Q1 2026 Equifax Inc Earnings Call

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