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Trevor Burns Kate Walker Investor Relations Media Relations trevor.burns@equifax.com mediainquiries@equifax.com
Equifax Delivers Strong 10% Revenue Growth in Third Quarter 2026 Driven by 8% Diversified Markets Revenue Growth Despite Challenging U.S. Mortgage Market; Returns $158 Million Cash to Shareholders
-- Equifax ® (NYSE: EFX) today announced financial results for the quarter ended September 30, 2026.
• Third quarter reported revenue of $1.693 billion, up a strong 10% with 9% local currency revenue growth.
• Diversified Markets revenue up 8% on a reported and 7.5% on a local currency basis, with strong, broad-based performances across all business units.
• Workforce Solutions third quarter revenue up 7%. Diversified Markets revenue up 9% led by Verification Services Diversified Markets revenue up 13% with Talent Solutions revenue growth over 20%, Consumer Lending up high double digits, and Government up mid-single digits. Workforce Solutions Mortgage revenue flat in the third quarter from the weaker mortgage market.
• USIS third quarter revenue up strong 13% with Diversified Markets revenue growth up 6% led by Financial Institutions and Auto. USIS Mortgage revenue up a strong 28% despite the weaker mortgage market.
• International third quarter revenue up 9% on a reported basis. Local currency revenue growth up 7% with low double-digit revenue growth in Australia and high single-digit growth in Latin America. Expect Círculo de Crédito acquisition to close in the fourth quarter.
• New Product Innovation leveraging the EFX Cloud, EFX.AI, and proprietary data delivered record over 17% new product Vitality Index.
• Returned $158 million in cash to shareholders through share repurchases and quarterly dividend.
“Equifax delivered a strong third quarter performance executing on our EFX2028 Strategic Priorities with reported revenue of $1.693 billion, up 10% on a reported basis, with 9% local currency revenue growth. Diversified Markets revenue growth of 8% was broad based across all business units driven by a record over 17% new product Vitality Index, above our 10% long-term goal. U.S. Mortgage revenue grew 15%, despite the much weaker mortgage market we saw in the latter half of the third quarter as mortgage interest rates increased substantially.
Workforce Solutions delivered 7% revenue growth, with Diversified Markets growth of 9% led by strong over 20% growth in Talent Solutions, strong high double- digit growth in Consumer Lending and accelerating sequential mid single-digit growth in Government. Workforce Solutions Mortgage revenue was about flat from the weak mortgage market. USIS delivered strong revenue growth of 13%, with Diversified Markets revenue growth of 6%, led by Financial Institutions and Auto. USIS Mortgage revenue was up 28% despite the weaker mortgage market. International delivered 7% local currency revenue growth with low double-digit revenue growth in Australia and high single-digit growth in Latin America.
We continue to deploy EFX.AI to deliver new, higher-performing products and solutions to our customers and expand AI deployment inside EFX to deliver against our $150 million AI productivity goal. With our strong free cash flow, Equifax returned $158 million of cash to shareholders in the quarter, including repurchasing 0.5 million shares for $92 million and paying $66 million 1 in quarterly dividends. We continue to use our free cash flow to return cash to shareholders and for bolt-on M&A like our Círculo de Crédito acquisition that we expect to close in the fourth quarter,” said Mark W. Begor, Equifax Chief Executive Officer.
“As we look to the remainder of 2026, we are maintaining our Diversified Markets revenue guidance for revenue growth of high single-digit percent. However, we expect the much weaker U.S. mortgage market that we saw in the latter half of the third quarter to continue through the remainder of 2026. As a result, we are reducing our full year 2026 revenue guidance at the midpoint to $6.661 billion, reflecting this reduction in our U.S. Mortgage related revenue.
Despite the impact of the significantly weakened U.S. mortgage market on the second half of 2026 revenue, we expect to deliver 2026 Adjusted EPS Guidance of $8.50 per share, a reduction of only $0.04 per share at the midpoint and well within our previous Guidance range. As we did in the second quarter, the Equifax team is doing an outstanding job of managing cost and expenses including continuing to drive strong AI-driven operating cost efficiencies and optimizations, which should allow us to principally recover the gross margin impact from lower Mortgage revenue and deliver very strong operating margin performance.
We are confident in the future of the New Equifax. Equifax is fundamentally a different company on how we go to market from Technology to Data & Analytics, EFX.AI capabilities, product focus, and AI-driven Operations all leveraging our differentiated data assets, industry-leading Cloud technology, patented EFX.AI products, D&A capabilities, and market-leading innovation. Our scale proprietary data is the foundation of our AI data moat and a big competitive advantage, and we are expanding our capabilities to leverage our unique, non-public data assets with EFX.AI and agentic AI to rapidly deliver higher-performing scores, models, and multi-market products to help our customers grow.
Our strong third quarter results reflect the resiliency of the broad-based Equifax business model in a challenging mortgage market. We are energized about the New Equifax and we expect to deliver higher growth, margins, and accelerating free cash flow, and returning cash to shareholders in the future."
The Company reported revenue of $1,692.5 million in the third quarter of 2026, up 10 percent and 9 percent on a reported and local currency basis, respectively, compared to the third quarter of 2025.
Net income attributable to Equifax of $211.7 million was up 32 percent in the third quarter of 2026 compared to $160.2 million in the third quarter of 2025.
Diluted EPS attributable to Equifax was $1.79 per share in the third quarter of 2026, up 39 percent compared to $1.29 per share in the third quarter of 2025.
• Total revenue was $693.9 million in the third quarter of 2026, up 7 percent compared to the third quarter of 2025. Operating margin for Workforce Solutions was 44.1 percent in the third quarter of 2026 compared to 43.8 percent in the third quarter of 2025. Adjusted EBITDA margin for Workforce Solutions was 51.4 percent in the third quarter of 2026 compared to 51.2 percent in the third quarter of 2025.
• Verification Services revenue was $603.2 million, up 9 percent compared to the third quarter of 2025.
• Employer Services revenue was $90.7 million, down 5 percent compared to the third quarter of 2025.
• Total revenue was $599.1 million in the third quarter of 2026, up 13 percent compared to the third quarter of 2025. Operating margin for USIS was 24.3 percent in the third quarter of 2026 compared to 23.2 percent in the third quarter of 2025. Adjusted EBITDA margin for USIS was 35.4 percent in the third quarter of 2026 compared to 35.2 percent in the third quarter of 2025.
• Online Information Solutions revenue was $529.7 million, up 13 percent compared to the third quarter of 2025.
• Financial Marketing Services revenue was $69.4 million, up 11 percent compared to the third quarter of 2025.
• Total revenue was $399.5 million in the third quarter of 2026, up 9 percent and up 7 percent compared to the third quarter of 2025 on a reported and local currency basis, respectively. Operating margin for International was 15.8 2 percent in the third quarter of 2026, flat compared to the third quarter of 2025. Adjusted EBITDA margin for International was 30.9 percent in the third quarter of 2026 compared to 31.3 percent in the third quarter of 2025.
• Latin America revenue was $114.1 million, up 12 percent compared to the third quarter of 2025 on a reported basis and up 8 percent on a local currency basis.
• Europe revenue was $105.5 million, up 3 percent compared to the third quarter of 2025 on a reported basis and up 4 percent on a local currency basis.
• Asia Pacific revenue was $107.7 million, up 20 percent compared to the third quarter of 2025 on a reported basis and up 12 percent on a local currency basis.
• Canada revenue was $72.2 million, up 2 percent compared to the third quarter of 2025 on a reported basis and up 4 percent on a local currency basis.
• Adjusted EPS attributable to Equifax was $2.26 in the third quarter of 2026, up 11 percent compared to the third quarter of 2025.
• Adjusted EBITDA margin was 33.1 percent in the third quarter of 2026, up compared to 32.7 percent in the third quarter of 2025.
• These financial measures exclude certain items as described further in the Non-GAAP Financial Measures section below.
2026 Fourth Quarter and Full Year Guidance Q4 2026 FY 2026 Low-End High-End Low-End High-End Reported $1.605 $1.635 $6.646 $6.676 Revenue billion billion billion billion Reported Revenue 3.5% 5.4% 9.4% 9.9% Growth Local Currency 3.1% 5.0% 8.5% 9.0% Growth(1) Organic Local 3.0% 4.9% 8.4% 8.9% Currency Growth(1) Adjusted $2.07 per $2.17 per $8.45 per $8.55 per Earnings share share share share Per Share
(1) Refer to page 9 for definitions. Additionally, the definitions can be found in the Non-GAAP Financial Measures below.
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by over 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.com .
In conjunction with this release, Equifax will host a conference call on October 20, 2026 at 8:30 a.m. (ET) via a live audio webcast. To access the webcast and related presentation materials, go to the Investor Relations section of our website at www.equifax.com . The discussion will be available via replay at the same site shortly after the conclusion of the webcast. This press release is also available at that website.
This earnings release presents adjusted EPS attributable to Equifax which is diluted EPS attributable to Equifax adjusted (to the extent noted above for different periods) for acquisition-related amortization expense of certain acquired intangibles, accrual for legal and regulatory matters related to the 2017 cybersecurity incident, foreign currency impact of certain intercompany loans, 3 acquisition-related costs other than acquisition amortization, income tax effect of stock awards recognized upon vesting or settlement, Argentina highly inflationary foreign currency adjustment, realignment of resources and other costs and antitrust litigation costs. All adjustments are net of tax, with a reconciling item with the aggregated tax impact of the adjustments. This earnings release also presents (i) adjusted EBITDA and adjusted EBITDA margin, which is defined as consolidated net income attributable to Equifax plus net interest expense, income taxes, depreciation and amortization, and also excludes certain one-time items, (ii) local currency revenue change, which is calculated by conforming 2026 results using 2025 exchange rates, (iii) organic local currency revenue growth, which is defined as local currency revenue growth, adjusted to reflect an increase in prior year Equifax revenue from the revenue of acquired companies in the prior year period, (iv) free cash flow, which is defined as cash provided by operating activities less capital expenditures, and (v) cash conversion, which is defined as the ratio of free cash flow to adjusted net income. These are important financial measures for Equifax but are not financial measures as defined by GAAP.
These non-GAAP financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of net income or EPS as determined in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures and related notes are presented in the Q&A. This information can also be found under “Investor Relations/Financial Information/Non-GAAP Financial Measures” on our website at www.equifax.com .
This release contains forward-looking statements and forward-looking information. These statements can be identified by expressions of belief, expectation or intention, as well as statements that are not historical fact. These statements are based on certain factors and assumptions including with respect to foreign exchange rates, revenue growth, results of operations and financial performance, strategic initiatives, business plans, prospects and opportunities, the U.S. mortgage market, economic conditions and effective tax rates.
While Equifax believes these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Several factors could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors relate to (i) actions taken by us, including, but not limited to, restructuring actions, strategic initiatives (such as our cloud technology transformation), capital investments and asset acquisitions or dispositions, as well as (ii) developments beyond our control, including, but not limited to, changes in the U.S. mortgage market environment and changes more generally in U.S. and worldwide economic conditions (including resulting from changes in interest rates and inflation levels, the evolving impact of tariffs and geopolitical conflicts) that materially impact consumer spending, home prices, investment values, consumer debt, unemployment rates and the demand for Equifax’s products and services. Deteriorations in economic conditions or increases in interest rates could lead to a decline in demand for our products and services and negatively impact our business. It may also impact financial markets and corporate credit markets, which could adversely impact our access to financing or the terms of any financing.
Other risk factors relevant to our business include: (i) any compromise of Equifax, customer or consumer information due to security breaches and other disruptions to our information technology infrastructure; (ii) the failure to achieve and maintain key industry or technical certifications; (iii) the failure to realize the anticipated benefits of our cloud technology transformation strategy; (iv) operational disruptions and strain on our resources caused by our transition to cloud-based technologies; (v) our ability to meet customer requirements for high system availability and response time performance; (vi) effects on our business if we provide inaccurate or unreliable data to customers; (vii) our ability to maintain access to credit, employment, financial and other data from external sources; (viii) the impact of competition; (ix) our ability to maintain relationships with key customers and business partners; (x) our ability to successfully introduce new products, services and analytical capabilities; (xi) the impact on the demand for some of our products and services due to the availability of free or less expensive consumer information; (xii) our ability to comply with our obligations under settlement agreements arising out of a material cybersecurity incident in 2017; (xiii) potential adverse developments in new and pending legal proceedings, government investigations and regulatory enforcement actions; (xiv) changes in, and the effects of, laws, regulations and government policies governing our business, including oversight by the Consumer Financial Protection Bureau in the U.S., the U.K. Financial Conduct Authority and Information Commissioner’s Office in the U.K., and the Office of Australian Information Commission and the Australian Competition and Consumer Commission in Australia; (xv) the impact of privacy, cybersecurity, artificial intelligence or other data-related laws and regulations; (xvi) the economic, political and other risks associated with international sales and operations; (xvii) the impact on our reputation and business from our responsible business commitments and disclosures; (xviii) our ability to realize the anticipated strategic and financial benefits from our acquisitions, joint ventures and other alliances; (xix) any damage to our reputation due to our dependence on outsourcing certain portions of our operations; (xx) the termination or suspension of our government contracts; (xxi) the impact of infringement or misappropriation of intellectual property by us against third parties or by third parties against us; (xxii) an increase in our cost of borrowing and our ability to access the capital markets due to a credit rating downgrade; (xxiii) our ability to hire and retain key personnel; (xxiv) the impact of adverse changes in the financial markets and corresponding effects on 4 our retirement and post-retirement pension plans; (xxv) the impact of health epidemics, pandemics and similar outbreaks on our business; and (xxvi) risks associated with our use of certain artificial intelligence and machine learning models and systems.
A summary of additional risks and uncertainties can be found in our Annual Report on Form 10-K for the year ended December 31, 2025 including without limitation under the captions “Item 1. Business -- Governmental Regulation,” “-- Forward-Looking Statements” and “Item 1A. Risk Factors” and in our other filings with the U.S. Securities and Exchange Commission. Forward-looking statements are given only as at the date of this release and Equifax disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 5 EQUIFAX INC.
Three Months Ended (In millions, except September 30, per share amounts) 2026 2025 ────────────────────────────────────────────────────────────────────────────── Operating revenue $ 1,692.5 $ 1,544.9 Operating expenses: Cost of services (exclusive of 752.4 663.2 depreciation and amortization below) Selling, general and administrative 390.4 434.1 expenses Depreciation and 194.4 183.3 amortization Total operating 1,337.2 1,280.6 expenses Operating income 355.3 264.3 Interest expense -62.3 -52.2 Other income, net 3.8 3.2 Consolidated income 296.8 215.3 before income taxes Provision for income -83.4 -53.8 taxes Consolidated net income 213.4 161.5 Less: Net income attributable to noncontrolling interests including -1.7 -1.3 redeemable noncontrolling interests Net income attributable $ 211.7 $ 160.2 to Equifax Basic earnings per common share: Net income attributable $ 1.80 $ 1.30 to Equifax Weighted-average shares used in 117.3 123.1 computing basic earnings per share Diluted earnings per common share: Net income attributable $ 1.79 $ 1.29 to Equifax Weighted-average shares used in 118.1 124.1 computing diluted earnings per share Dividends per common $ 0.56 $ 0.50 share
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── (In millions, except par -Unaudited values) ASSETS Current assets: Cash and cash $ 192.9 $ 180.8 equivalents Trade accounts receivable, net of allowance for doubtful accounts of $17.9 1,104.2 1,012.7 and $20.2 at September 30, 2026 and December 31, 2025, respectively Prepaid 147.5 144.2 expenses Other current 142.0 74.5 assets Total current 1,586.6 1,412.2 assets Property and equipment: Capitalized internal-use 3,002.3 3,098.2 software and system costs Data processing equipment and 230.9 239.3 furniture Land, buildings and 297.8 299.6 improvements Total property 3,531.0 3,637.1 and equipment Less accumulated depreciation -1,607.9 -1,704.7 and amortization Total property and equipment, 1,923.1 1,932.4 net Goodwill 6,809.4 6,745.7 Indefinite-liv… intangible 94.7 94.8 assets Purchased intangible 1,165.8 1,331.3 assets, net Other assets, 357.5 347.8 net Total assets $ 11,937.1 $ 11,864.2 LIABILITIES AND EQUITY Current liabilities: Short-term debt and current maturities $ 157.7 $ 1,038.0 of long-term debt Accounts 115.3 206.4 payable Accrued 300.7 276.3 expenses Accrued salaries and 228.6 286.1 bonuses Deferred 112.8 101.2 revenue Other current 544.7 427.4 liabilities Total current 1,459.8 2,335.4 liabilities Long-term debt 5,049.0 4,055.3 Deferred income tax 459.9 390.8 liabilities, net Long-term pension and other 100.9 103.4 postretirement benefit liabilities Other long-term 253.4 241.1 liabilities Total 7,323.0 7,126.0 liabilities Redeemable noncontrolling 120.8 114.4 interests Equifax shareholders' equity: Preferred stock, $0.01 par value: Authorized — — shares - 10.0; Issued shares - none Common stock, $1.25 par value: Authorized shares - 300.0; Issued shares - 189.3 at September 30, 2026 and December 31, 236.6 236.6 2025; Outstanding shares - 117.1 and 120.4 at September 30, 2026 and December 31, 2025, respectively Paid-in capital 2,100.5 2,023.4 Retained 6,811.9 6,445.1 earnings Accumulated other -441.2 -517.1 comprehensive loss Treasury stock, at cost, 71.6 and 68.3 shares at September 30, -4,229.1 -3,577.8 2026 and December 31, 2025, respectively Stock held by employee benefits trusts, at cost, 0.6 -5.9 -5.9 shares at September 30, 2026 and December 31, 2025 Total Equifax 4,472.8 4,604.3 shareholders’e… Noncontrolling 20.5 19.5 interests Total shareholders' 4,493.3 4,623.8 equity Total liabilities, redeemable noncontrolling $ 11,937.1 $ 11,864.2 interests, and shareholders' equity
Nine Months Ended September 30, (In millions) 2026 Operating activities: (Unaudited) 2025 ────────────────────────────────────────────────────────────────────────────── Consolidated net $ 571.8 $ 487.9 income Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation and 572.6 540.8 amortization Stock-based 74.5 63.9 compensation expense Deferred income taxes 73.5 29.6 Gain on sale of equity — -0.8 investment Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, -91.7 -45.6 net Other assets, current -95.7 -10.3 and long-term Current and long term liabilities, 37.1 79.4 excluding debt Cash provided by 1,142.1 1,144.9 operating activities Investing activities: Capital expenditures -378.9 -351.4 Cash received from — 0.8 divestitures Cash used in investing -378.9 -350.6 activities Financing activities: Net short-term -604.8 -204.1 payments Payments on long-term -276.4 — debt Proceeds from issuance 998.1 1.7 of long-term debt Treasury stock -652.0 -427.4 purchases Payment of share -8.3 — repurchase excise tax Dividends paid to -199.4 -172.0 Equifax shareholders Distributions paid to noncontrolling -5.6 -6.2 interests Proceeds from exercise of stock options 23.8 38.1 and employee stock purchase plan Payment of taxes related to settlement -15.7 -13.6 of equity awards Debt issuance costs -7.9 — Cash used in financing -748.2 -783.5 activities Effect of foreign currency exchange -2.9 8.3 rates on cash and cash equivalents Increase in cash and 12.1 19.1 cash equivalents Cash and cash equivalents, beginning 180.8 169.9 of period Cash and cash equivalents, end of $ 192.9 $ 189.0 period
(1) Local currency revenue change is calculated by conforming 2026 results using 2025 exchange rates.
(2) Organic local currency revenue growth is defined as local currency revenue growth, adjusted to reflect an increase in prior year Equifax revenue from the revenue of acquired companies in the prior year period. This adjustment is made for 12 months following the acquisition. 9 Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures (Unaudited)
A. Reconciliation of net income attributable to Equifax to adjusted net income attributable to Equifax and adjusted diluted EPS attributable to Equifax, defined as net income and EPS, respectively, each adjusted for acquisition- related amortization expense of certain acquired intangibles, accrual for legal and regulatory matters related to the 2017 cybersecurity incident, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, income tax effect of stock awards recognized upon vesting or settlement, Argentina highly inflationary foreign currency adjustment, realignment of resources and other costs, antitrust litigation costs and aggregated tax impact of these adjustments:
(1) During the third quarter of 2026, we recorded acquisition-related amortization expense of certain acquired intangibles of $59.9 million ($48.0 million, net of tax). We calculate this financial measure by excluding the impact of acquisition-related amortization expense and including a benefit to reflect the significant cash income tax savings resulting from the income tax deductibility of amortization for certain acquired intangibles. The $11.9 million of tax is comprised of $15.9 million of tax expense, net of $4.0 million of a cash income tax benefit. During the third quarter of 2025, we recorded acquisition-related amortization expense of certain acquired intangibles of $62.7 million ($50.2 million, net of tax). The $12.5 million of tax is comprised of $16.7 million of tax expense, net of $4.2 million of a cash income tax benefit. See the Notes to this reconciliation for additional detail.
(2) During the third quarter of 2026 and 2025, we recorded an accrual for legal and regulatory matters related to the 2017 cybersecurity incident of $0.2 million ($0.2 million, net of tax) and $0.3 million ($0.2 million, net of tax), respectively. See the Notes to this reconciliation for additional detail.
(3) During the third quarter of 2025, we recorded a foreign currency gain of $0.1 million on certain intercompany loans. The impact was recorded to the Other income, net line item within the Consolidated Statements of Income. See the Notes to this reconciliation for additional detail.
(4) During the third quarter of 2026 and 2025, we recorded $8.9 million ($6.4 million, net of tax) and $8.9 million ($6.2 million, net of tax), respectively, for acquisition-related costs other than acquisition amortization. These costs primarily related to integration costs resulting from recent acquisition activity and were recorded in operating income. See the Notes to this reconciliation for additional detail.
(5) During the third quarter of 2025, we recorded a tax benefit of $0.5 million related to the tax effects of deductions for stock compensation in excess of amounts recorded for compensation costs. See the Notes to this reconciliation for additional detail.
(6) Argentina experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates. As such, Argentina was deemed a highly inflationary economy by accounting policymakers. During the third quarter of 2026 and 2025, we recorded a foreign currency loss of $0.4 million and $0.7 million, respectively, related to the 10 impact of remeasuring the peso denominated monetary assets and liabilities as a result of Argentina being a highly inflationary economy. See the Notes to this reconciliation for additional detail.
(7) During the third quarter of 2025, we recorded $43.9 million ($32.8 million, net of tax) of restructuring charges for the realignment of resources and other costs, which predominantly related to the reduction of headcount to support the Company's global strategic objectives. See the Notes to this reconciliation for additional detail.
(8) During the third quarter of 2026 and 2025, we recorded costs related to antitrust litigation pertaining to our Workforce Solutions business unit in the amount of $0.8 million ($0.7 million, net of tax) and $4.3 million ($3.2 million, net of tax), respectively. See the Notes to this reconciliation for additional detail.
(9) During the third quarter of 2026, we recorded the tax impact of adjustments of $14.5 million comprised of (i) acquisition-related amortization expense of certain acquired intangibles of $11.9 million ($15.9 million of tax expense, net of $4.0 million of cash income tax benefit), (ii) a tax adjustment of $2.5 million related to acquisition-related costs other than acquisition amortization and (iii) a tax adjustment of $0.1 million related to antitrust litigation costs.
During the third quarter of 2025, we recorded the tax impact of adjustments of $27.5 million comprised of (i) acquisition-related amortization expense of certain acquired intangibles of $12.5 million ($16.7 million of tax expense, net of $4.2 million of cash income tax benefit), (ii) a tax adjustment of $0.1 million related to an accrual for legal and regulatory matters related to the 2017 cybersecurity incident, (iii) a tax adjustment of $2.7 million related to acquisition-related costs other than acquisition amortization, (iv) a tax adjustment of $11.1 million related to restructuring charges, and (v) a tax adjustment of $1.1 million related to antitrust litigation costs. 11 B. Reconciliation of net income attributable to Equifax to adjusted EBITDA, defined as net income excluding income taxes, interest expense, net, depreciation and amortization expense, accrual for legal and regulatory matters related to the 2017 cybersecurity incident, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, Argentina highly inflationary foreign currency adjustment, realignment of resources and other costs, antitrust litigation costs and presentation of adjusted EBITDA margin:
*Excludes interest income of $1.9 million in the third quarter of 2026 and $2.7 million in the third quarter of 2025.
(1) During the third quarter of 2026 and 2025, we recorded an accrual for legal and regulatory matters related to the 2017 cybersecurity incident of $0.2 million ($0.2 million, net of tax) and $0.3 million ($0.2 million, net of tax), respectively. See the Notes to this reconciliation for additional detail.
(2) During the third quarter of 2025, we recorded a foreign currency gain of $0.1 million on certain intercompany loans. The impact was recorded to the Other income, net line item within the Consolidated Statements of Income. See the Notes to this reconciliation for additional detail.
(3) During the third quarter of 2026 and 2025, we recorded $8.9 million ($6.4 million, net of tax) and $8.9 million ($6.2 million, net of tax), respectively, for acquisition-related costs other than acquisition amortization. These costs primarily related to integration costs resulting from recent acquisition activity and were recorded in operating income. See the Notes to this reconciliation for additional detail.
(4) Argentina experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates. As such, Argentina was deemed a highly inflationary economy by accounting policymakers. During the third quarter of 2026 and 2025, we recorded a foreign currency loss of $0.4 million and $0.7 million, respectively, related to the impact of remeasuring the peso denominated monetary assets and liabilities as a result of Argentina being a highly inflationary economy. See the Notes to this reconciliation for additional detail.
(5) During the third quarter of 2025, we recorded $43.9 million ($32.8 million, net of tax) of restructuring charges for the realignment of resources and other costs, which predominantly related to the reduction of headcount to support the Company's global strategic objectives. See the Notes to this reconciliation for additional detail.
(6) During the third quarter of 2026 and 2025, we recorded costs related to antitrust litigation pertaining to our Workforce Solutions business unit in the amount of $0.8 million ($0.7 million, net of tax) and $4.3 million ($3.2 million, net of tax), respectively. See the Notes to this reconciliation for additional detail. 12 C. Reconciliation of operating income by segment to Adjusted EBITDA, excluding depreciation and amortization expense, other income, net, noncontrolling interest, accrual for legal and regulatory matters related to the 2017 cybersecurity incident, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, Argentina highly inflationary foreign currency adjustment, realignment of resources and other costs, antitrust litigation costs and presentation of adjusted EBITDA margin for each of the segments:
*Excludes interest income of $1.3 million in International and $0.6 million in General Corporate Expense.
*Excludes interest income of $2.4 million in International and $0.3 million in General Corporate Expense. (1) During the third quarter of 2026, we recorded pre-tax expenses of $0.2 million for an accrual for legal and regulatory matters related to the 2017 cybersecurity incident, $8.9 million for acquisition-related costs other than acquisition amortization, $0.4 million for a foreign currency loss related to the impact of remeasuring the peso denominated monetary assets and liabilities as a result of Argentina being a highly inflationary economy and $0.8 million of antitrust litigation costs.
During the third quarter of 2025, we recorded pre-tax expenses of $0.3 million for an accrual for legal and regulatory matters related to the 2017 cybersecurity incident, a $0.1 million foreign currency gain on certain intercompany loans, $8.9 million for acquisition-related costs other than acquisition amortization, a foreign currency loss of $0.7 million related to the impact of remeasuring the peso denominated monetary assets and liabilities as a result of Argentina being a highly inflationary economy, $43.9 million of restructuring charges for the realignment of resources and other costs and $4.3 million of antitrust litigation costs. 13 Notes to Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial Measures
- During the third quarter of 2026 and 2025, we recorded acquisition-related amortization expense of certain acquired intangibles of $59.9 million ($48.0 million, net of tax) and $62.7 million ($50.2 million, net of tax), respectively. We calculate this financial measure by excluding the impact of acquisition-related amortization expense and including a benefit to reflect the material cash income tax savings resulting from the income tax deductibility of amortization for certain acquired intangibles. These financial measures are not prepared in conformity with GAAP. Management believes excluding the impact of amortization expense is useful because excluding acquisition-related amortization, and other items that are not comparable, allows investors to evaluate our performance for different periods on a more comparable basis. Certain acquired intangibles result in material cash income tax savings which are not reflected in earnings. Management believes that including a benefit to reflect the cash income tax savings is useful as it allows investors to better value Equifax. Management makes these adjustments to earnings when measuring profitability, evaluating performance trends, setting performance objectives and calculating our return on invested capital.
Accrual for legal and regulatory matters related to the 2017 cybersecurity incident - Accrual for legal and regulatory matters related to the 2017 cybersecurity incident includes legal fees to respond to subsequent litigation and government investigations for both periods presented. During the third quarter of 2026 and 2025, we recorded an accrual for legal and regulatory matters related to the 2017 cybersecurity incident of $0.2 million ($0.2 million, net of tax) and $0.3 million ($0.2 million, net of tax), respectively. Management believes excluding these charges is useful as it allows investors to evaluate our performance for different periods on a more comparable basis. Management makes these adjustments to net income when measuring profitability, evaluating performance trends, setting performance objectives and calculating our return on invested capital. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.
Foreign currency impact of certain intercompany loans - During the third quarter of 2025, we recorded a foreign currency gain of $0.1 million on certain intercompany loans. Management believes excluding this charge is useful as it allows investors to evaluate our performance for different periods on a more comparable basis. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.
Acquisition-related costs other than acquisition amortization - During the third quarter of 2026 and 2025, we recorded $8.9 million ($6.4 million, net of tax) and $8.9 million ($6.2 million, net of tax), respectively, for acquisition- related costs other than acquisition amortization. These costs primarily related to transaction and integration costs resulting from recent acquisitions and were recorded in operating income. Management believes excluding this charge from certain financial results provides meaningful supplemental information regarding our financial results, since a charge of such an amount is not comparable among the periods. This is consistent with how our management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting, and analyzing future periods.
Income tax effects of stock awards that are recognized upon vesting or settlement - During the third quarter of 2025, we recorded a tax benefit of $0.5 million related to the tax effects of deductions for stock compensation in excess of amounts recorded for compensation costs. Management believes excluding this tax effect from financial results provides meaningful supplemental information regarding our financial results for the three months ended September 30, 2025 because these amounts are non-operating and relate to income tax benefits or deficiencies for stock awards recognized when tax amounts differ from recognized stock compensation cost. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.
Argentina highly inflationary foreign currency adjustment - Argentina experienced multiple periods of increasing inflation rates, devaluation of the peso, and increasing borrowing rates. As such, Argentina was deemed a highly inflationary economy by accounting policymakers. We recorded a foreign currency loss of $0.4 million and $0.7 million during the third quarter of 2026 and 2025, respectively, as a result of remeasuring the peso denominated monetary assets and liabilities due to Argentina being highly inflationary. Management believes excluding this charge is useful as it allows investors to evaluate our performance for different periods on a more comparable basis. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.
Charge related to the realignment of resources and other costs - During the third quarter of 2025, we recorded $43.9 million ($32.8 million, net of tax) of restructuring charges for the realignment of resources and other costs, which predominantly related to the reduction of headcount to support the Company's global strategic objectives. Management believes excluding these charges from certain financial results provides meaningful supplemental information regarding our financial results since 14 a charge of such an amount is not comparable among the periods. This is consistent with how our management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.
- Antitrust litigation costs include legal fees to respond to antitrust litigation pertaining to our Workforce Solutions business unit. During the third quarter of 2026 and 2025, we recorded costs related to antitrust litigation pertaining to our Workforce Solutions business unit in the amount of $0.8 million ($0.7 million, net of tax) and $4.3 million ($3.2 million, net of tax), respectively. Management believes excluding these charges is useful as it allows investors to evaluate our performance for different periods on a more comparable basis, as these legal matters are outside of the normal course of Equifax’s continuing business operations. Management makes these adjustments to net income when measuring profitability, evaluating performance trends, setting performance objectives and calculating our return on invested capital. This is consistent with how management reviews and assesses Equifax’s historical performance and is useful when planning, forecasting and analyzing future periods.
- Management defines adjusted EBITDA as consolidated net income attributable to Equifax plus net interest expense, income taxes, depreciation and amortization, and also excludes certain one-time items. Management believes the use of adjusted EBITDA and adjusted EBITDA margin allows investors to evaluate our performance for different periods on a more comparable basis. 15
Full text with the tables
Exhibit 99.1
1550 Peachtree Street, N.W. Atlanta, Georgia 30309
NEWS RELEASE
Contact:
Trevor Burns Kate Walker
Investor Relations Media Relations
trevor.burns@equifax.com mediainquiries@equifax.com
Equifax Delivers Strong 10% Revenue Growth in Third Quarter 2026 Driven by 8%
Diversified Markets Revenue Growth Despite Challenging U.S. Mortgage Market;
Returns $158 Million Cash to Shareholders
ATLANTA, OCTOBER 20, 2026
-- Equifax ® (NYSE: EFX) today announced financial results for the quarter ended
September 30, 2026.
• Third quarter reported revenue of $1.693 billion, up a strong 10% with 9%
local currency revenue growth.
• Diversified Markets revenue up 8% on a reported and 7.5% on a local currency
basis, with strong, broad-based performances across all business units.
• Third quarter U.S. Mortgage revenue up 15% despite weaker market.
• Workforce Solutions third quarter revenue up 7%. Diversified Markets revenue
up 9% led by Verification Services Diversified Markets revenue up 13% with
Talent Solutions revenue growth over 20%, Consumer Lending up high double
digits, and Government up mid-single digits. Workforce Solutions Mortgage
revenue flat in the third quarter from the weaker mortgage market.
• USIS third quarter revenue up strong 13% with Diversified Markets revenue
growth up 6% led by Financial Institutions and Auto. USIS Mortgage revenue up a
strong 28% despite the weaker mortgage market.
• International third quarter revenue up 9% on a reported basis. Local currency
revenue growth up 7% with low double-digit revenue growth in Australia and high
single-digit growth in Latin America. Expect Círculo de Crédito acquisition to
close in the fourth quarter.
• New Product Innovation leveraging the EFX Cloud, EFX.AI, and proprietary data
delivered record over 17% new product Vitality Index.
• Returned $158 million in cash to shareholders through share repurchases and
quarterly dividend.
“Equifax delivered a strong third quarter performance executing on our EFX2028
Strategic Priorities with reported revenue of $1.693 billion, up 10% on a
reported basis, with 9% local currency revenue growth. Diversified Markets
revenue growth of 8% was broad based across all business units driven by a
record over 17% new product Vitality Index, above our 10% long-term goal. U.S.
Mortgage revenue grew 15%, despite the much weaker mortgage market we saw in the
latter half of the third quarter as mortgage interest rates increased
substantially.
Workforce Solutions delivered 7% revenue growth, with Diversified Markets growth
of 9% led by strong over 20% growth in Talent Solutions, strong high double-
digit growth in Consumer Lending and accelerating sequential mid single-digit
growth in Government. Workforce Solutions Mortgage revenue was about flat from
the weak mortgage market. USIS delivered strong revenue growth of 13%, with
Diversified Markets revenue growth of 6%, led by Financial Institutions and
Auto. USIS Mortgage revenue was up 28% despite the weaker mortgage market.
International delivered 7% local currency revenue growth with low double-digit
revenue growth in Australia and high single-digit growth in Latin America.
We continue to deploy EFX.AI to deliver new, higher-performing products and
solutions to our customers and expand AI deployment inside EFX to deliver
against our $150 million AI productivity goal. With our strong free cash flow,
Equifax returned $158 million of cash to shareholders in the quarter, including
repurchasing 0.5 million shares for $92 million and paying $66 million
1
in quarterly dividends. We continue to use our free cash flow to return cash to
shareholders and for bolt-on M&A like our Círculo de Crédito acquisition that we
expect to close in the fourth quarter,” said Mark W. Begor, Equifax Chief
Executive Officer.
“As we look to the remainder of 2026, we are maintaining our Diversified Markets
revenue guidance for revenue growth of high single-digit percent. However, we
expect the much weaker U.S. mortgage market that we saw in the latter half of
the third quarter to continue through the remainder of 2026. As a result, we are
reducing our full year 2026 revenue guidance at the midpoint to $6.661 billion,
reflecting this reduction in our U.S. Mortgage related revenue.
Despite the impact of the significantly weakened U.S. mortgage market on the
second half of 2026 revenue, we expect to deliver 2026 Adjusted EPS Guidance of
$8.50 per share, a reduction of only $0.04 per share at the midpoint and well
within our previous Guidance range. As we did in the second quarter, the Equifax
team is doing an outstanding job of managing cost and expenses including
continuing to drive strong AI-driven operating cost efficiencies and
optimizations, which should allow us to principally recover the gross margin
impact from lower Mortgage revenue and deliver very strong operating margin
performance.
We are confident in the future of the New Equifax. Equifax is fundamentally a
different company on how we go to market from Technology to Data & Analytics,
EFX.AI capabilities, product focus, and AI-driven Operations all leveraging our
differentiated data assets, industry-leading Cloud technology, patented EFX.AI
products, D&A capabilities, and market-leading innovation. Our scale proprietary
data is the foundation of our AI data moat and a big competitive advantage, and
we are expanding our capabilities to leverage our unique, non-public data assets
with EFX.AI and agentic AI to rapidly deliver higher-performing scores, models,
and multi-market products to help our customers grow.
Our strong third quarter results reflect the resiliency of the broad-based
Equifax business model in a challenging mortgage market. We are energized about
the New Equifax and we expect to deliver higher growth, margins, and
accelerating free cash flow, and returning cash to shareholders in the future."
Financial Results Summary
The Company reported revenue of $1,692.5 million in the third quarter of 2026,
up 10 percent and 9 percent on a reported and local currency basis,
respectively, compared to the third quarter of 2025.
Net income attributable to Equifax of $211.7 million was up 32 percent in the
third quarter of 2026 compared to $160.2 million in the third quarter of 2025.
Diluted EPS attributable to Equifax was $1.79 per share in the third quarter of
2026, up 39 percent compared to $1.29 per share in the third quarter of 2025.
Workforce Solutions Third Quarter Results
• Total revenue was $693.9 million in the third quarter of 2026, up 7 percent
compared to the third quarter of 2025. Operating margin for Workforce Solutions
was 44.1 percent in the third quarter of 2026 compared to 43.8 percent in the
third quarter of 2025. Adjusted EBITDA margin for Workforce Solutions was 51.4
percent in the third quarter of 2026 compared to 51.2 percent in the third
quarter of 2025.
• Verification Services revenue was $603.2 million, up 9 percent compared to the
third quarter of 2025.
• Employer Services revenue was $90.7 million, down 5 percent compared to the
third quarter of 2025.
USIS Third Quarter Results
• Total revenue was $599.1 million in the third quarter of 2026, up 13 percent
compared to the third quarter of 2025. Operating margin for USIS was 24.3
percent in the third quarter of 2026 compared to 23.2 percent in the third
quarter of 2025. Adjusted EBITDA margin for USIS was 35.4 percent in the third
quarter of 2026 compared to 35.2 percent in the third quarter of 2025.
• Online Information Solutions revenue was $529.7 million, up 13 percent
compared to the third quarter of 2025.
• Financial Marketing Services revenue was $69.4 million, up 11 percent compared
to the third quarter of 2025.
International Third Quarter Results
• Total revenue was $399.5 million in the third quarter of 2026, up 9 percent
and up 7 percent compared to the third quarter of 2025 on a reported and local
currency basis, respectively. Operating margin for International was 15.8
2
percent in the third quarter of 2026, flat compared to the third quarter of
2025. Adjusted EBITDA margin for International was 30.9 percent in the third
quarter of 2026 compared to 31.3 percent in the third quarter of 2025.
• Latin America revenue was $114.1 million, up 12 percent compared to the third
quarter of 2025 on a reported basis and up 8 percent on a local currency basis.
• Europe revenue was $105.5 million, up 3 percent compared to the third quarter
of 2025 on a reported basis and up 4 percent on a local currency basis.
• Asia Pacific revenue was $107.7 million, up 20 percent compared to the third
quarter of 2025 on a reported basis and up 12 percent on a local currency basis.
• Canada revenue was $72.2 million, up 2 percent compared to the third quarter
of 2025 on a reported basis and up 4 percent on a local currency basis.
Adjusted EPS and Adjusted EBITDA Margin
• Adjusted EPS attributable to Equifax was $2.26 in the third quarter of 2026,
up 11 percent compared to the third quarter of 2025.
• Adjusted EBITDA margin was 33.1 percent in the third quarter of 2026, up
compared to 32.7 percent in the third quarter of 2025.
• These financial measures exclude certain items as described further in the
Non-GAAP Financial Measures section below.
2026 Fourth
Quarter and
Full Year
Guidance
Q4 2026 FY 2026
Low-End High-End Low-End High-End
Reported $1.605 $1.635 $6.646 $6.676
Revenue billion billion billion billion
Reported
Revenue 3.5% 5.4% 9.4% 9.9%
Growth
Local
Currency 3.1% 5.0% 8.5% 9.0%
Growth(1)
Organic
Local 3.0% 4.9% 8.4% 8.9%
Currency
Growth(1)
Adjusted $2.07 per $2.17 per $8.45 per $8.55 per
Earnings share share share share
Per Share
(1) Refer to page 9 for definitions. Additionally, the definitions can be found
in the Non-GAAP Financial Measures below.
About Equifax
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data,
analytics, and technology company, we play an essential role in the global
economy by helping financial institutions, companies, employers, and government
agencies make critical decisions with greater confidence. Our unique blend of
differentiated data, analytics, and cloud technology drives insights to power
decisions to move people forward. Headquartered in Atlanta and supported by over
15,000 employees worldwide, Equifax operates or has investments in 24 countries
in North America, Central and South America, Europe, and the Asia Pacific
region. For more information, visit Equifax.com .
Earnings Conference Call and Audio Webcast
In conjunction with this release, Equifax will host a conference call on October
20, 2026 at 8:30 a.m. (ET) via a live audio webcast. To access the webcast and
related presentation materials, go to the Investor Relations section of our
website at www.equifax.com . The discussion will be available via replay at the
same site shortly after the conclusion of the webcast. This press release is
also available at that website.
Non-GAAP Financial Measures
This earnings release presents adjusted EPS attributable to Equifax which is
diluted EPS attributable to Equifax adjusted (to the extent noted above for
different periods) for acquisition-related amortization expense of certain
acquired intangibles, accrual for legal and regulatory matters related to the
2017 cybersecurity incident, foreign currency impact of certain intercompany
loans,
3
acquisition-related costs other than acquisition amortization, income tax effect
of stock awards recognized upon vesting or settlement, Argentina highly
inflationary foreign currency adjustment, realignment of resources and other
costs and antitrust litigation costs. All adjustments are net of tax, with a
reconciling item with the aggregated tax impact of the adjustments. This
earnings release also presents (i) adjusted EBITDA and adjusted EBITDA margin,
which is defined as consolidated net income attributable to Equifax plus net
interest expense, income taxes, depreciation and amortization, and also excludes
certain one-time items, (ii) local currency revenue change, which is calculated
by conforming 2026 results using 2025 exchange rates, (iii) organic local
currency revenue growth, which is defined as local currency revenue growth,
adjusted to reflect an increase in prior year Equifax revenue from the revenue
of acquired companies in the prior year period, (iv) free cash flow, which is
defined as cash provided by operating activities less capital expenditures, and
(v) cash conversion, which is defined as the ratio of free cash flow to adjusted
net income. These are important financial measures for Equifax but are not
financial measures as defined by GAAP.
These non-GAAP financial measures should be reviewed in conjunction with the
relevant GAAP financial measures and are not presented as an alternative measure
of net income or EPS as determined in accordance with GAAP.
Reconciliations of these non-GAAP financial measures to the most directly
comparable GAAP financial measures and related notes are presented in the Q&A.
This information can also be found under “Investor Relations/Financial
Information/Non-GAAP Financial Measures” on our website at www.equifax.com .
Forward-Looking Statements
This release contains forward-looking statements and forward-looking
information. These statements can be identified by expressions of belief,
expectation or intention, as well as statements that are not historical fact.
These statements are based on certain factors and assumptions including with
respect to foreign exchange rates, revenue growth, results of operations and
financial performance, strategic initiatives, business plans, prospects and
opportunities, the U.S. mortgage market, economic conditions and effective tax
rates.
While Equifax believes these factors and assumptions to be reasonable based on
information currently available, they may prove to be incorrect. Several factors
could cause actual results to differ materially from those expressed or implied
in the forward-looking statements. These factors relate to (i) actions taken by
us, including, but not limited to, restructuring actions, strategic initiatives
(such as our cloud technology transformation), capital investments and asset
acquisitions or dispositions, as well as (ii) developments beyond our control,
including, but not limited to, changes in the U.S. mortgage market environment
and changes more generally in U.S. and worldwide economic conditions (including
resulting from changes in interest rates and inflation levels, the evolving
impact of tariffs and geopolitical conflicts) that materially impact consumer
spending, home prices, investment values, consumer debt, unemployment rates and
the demand for Equifax’s products and services. Deteriorations in economic
conditions or increases in interest rates could lead to a decline in demand for
our products and services and negatively impact our business. It may also impact
financial markets and corporate credit markets, which could adversely impact our
access to financing or the terms of any financing.
Other risk factors relevant to our business include: (i) any compromise of
Equifax, customer or consumer information due to security breaches and other
disruptions to our information technology infrastructure; (ii) the failure to
achieve and maintain key industry or technical certifications; (iii) the failure
to realize the anticipated benefits of our cloud technology transformation
strategy; (iv) operational disruptions and strain on our resources caused by our
transition to cloud-based technologies; (v) our ability to meet customer
requirements for high system availability and response time performance; (vi)
effects on our business if we provide inaccurate or unreliable data to
customers; (vii) our ability to maintain access to credit, employment, financial
and other data from external sources; (viii) the impact of competition; (ix) our
ability to maintain relationships with key customers and business partners; (x)
our ability to successfully introduce new products, services and analytical
capabilities; (xi) the impact on the demand for some of our products and
services due to the availability of free or less expensive consumer information;
(xii) our ability to comply with our obligations under settlement agreements
arising out of a material cybersecurity incident in 2017; (xiii) potential
adverse developments in new and pending legal proceedings, government
investigations and regulatory enforcement actions; (xiv) changes in, and the
effects of, laws, regulations and government policies governing our business,
including oversight by the Consumer Financial Protection Bureau in the U.S., the
U.K. Financial Conduct Authority and Information Commissioner’s Office in the
U.K., and the Office of Australian Information Commission and the Australian
Competition and Consumer Commission in Australia; (xv) the impact of privacy,
cybersecurity, artificial intelligence or other data-related laws and
regulations; (xvi) the economic, political and other risks associated with
international sales and operations; (xvii) the impact on our reputation and
business from our responsible business commitments and disclosures; (xviii) our
ability to realize the anticipated strategic and financial benefits from our
acquisitions, joint ventures and other alliances; (xix) any damage to our
reputation due to our dependence on outsourcing certain portions of our
operations; (xx) the termination or suspension of our government contracts;
(xxi) the impact of infringement or misappropriation of intellectual property by
us against third parties or by third parties against us; (xxii) an increase in
our cost of borrowing and our ability to access the capital markets due to a
credit rating downgrade; (xxiii) our ability to hire and retain key personnel;
(xxiv) the impact of adverse changes in the financial markets and corresponding
effects on
4
our retirement and post-retirement pension plans; (xxv) the impact of health
epidemics, pandemics and similar outbreaks on our business; and (xxvi) risks
associated with our use of certain artificial intelligence and machine learning
models and systems.
A summary of additional risks and uncertainties can be found in our Annual
Report on Form 10-K for the year ended December 31, 2025 including without
limitation under the captions “Item 1. Business -- Governmental Regulation,” “--
Forward-Looking Statements” and “Item 1A. Risk Factors” and in our other filings
with the U.S. Securities and Exchange Commission. Forward-looking statements are
given only as at the date of this release and Equifax disclaims any obligation
to update or revise the forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
5
EQUIFAX INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
(In millions, except September 30,
per share amounts) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Operating revenue $ 1,692.5 $ 1,544.9
Operating expenses:
Cost of services
(exclusive of 752.4 663.2
depreciation and
amortization below)
Selling, general and
administrative 390.4 434.1
expenses
Depreciation and 194.4 183.3
amortization
Total operating 1,337.2 1,280.6
expenses
Operating income 355.3 264.3
Interest expense -62.3 -52.2
Other income, net 3.8 3.2
Consolidated income 296.8 215.3
before income taxes
Provision for income -83.4 -53.8
taxes
Consolidated net income 213.4 161.5
Less: Net income
attributable to
noncontrolling
interests including -1.7 -1.3
redeemable
noncontrolling
interests
Net income attributable $ 211.7 $ 160.2
to Equifax
Basic earnings per
common share:
Net income attributable $ 1.80 $ 1.30
to Equifax
Weighted-average shares
used in 117.3 123.1
computing basic
earnings per share
Diluted earnings per
common share:
Net income attributable $ 1.79 $ 1.29
to Equifax
Weighted-average shares
used in 118.1 124.1
computing diluted
earnings per share
Dividends per common $ 0.56 $ 0.50
share
6
EQUIFAX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
(In millions,
except par -Unaudited
values)
ASSETS
Current assets:
Cash and cash $ 192.9 $ 180.8
equivalents
Trade accounts
receivable, net
of
allowance for
doubtful
accounts of
$17.9 1,104.2 1,012.7
and $20.2 at
September 30,
2026 and
December 31,
2025,
respectively
Prepaid 147.5 144.2
expenses
Other current 142.0 74.5
assets
Total current 1,586.6 1,412.2
assets
Property and
equipment:
Capitalized
internal-use 3,002.3 3,098.2
software and
system costs
Data processing
equipment and 230.9 239.3
furniture
Land, buildings
and 297.8 299.6
improvements
Total property 3,531.0 3,637.1
and equipment
Less
accumulated
depreciation -1,607.9 -1,704.7
and
amortization
Total property
and equipment, 1,923.1 1,932.4
net
Goodwill 6,809.4 6,745.7
Indefinite-liv…
intangible 94.7 94.8
assets
Purchased
intangible 1,165.8 1,331.3
assets, net
Other assets, 357.5 347.8
net
Total assets $ 11,937.1 $ 11,864.2
LIABILITIES AND
EQUITY
Current
liabilities:
Short-term debt
and current
maturities $ 157.7 $ 1,038.0
of long-term
debt
Accounts 115.3 206.4
payable
Accrued 300.7 276.3
expenses
Accrued
salaries and 228.6 286.1
bonuses
Deferred 112.8 101.2
revenue
Other current 544.7 427.4
liabilities
Total current 1,459.8 2,335.4
liabilities
Long-term debt 5,049.0 4,055.3
Deferred income
tax 459.9 390.8
liabilities,
net
Long-term
pension and
other 100.9 103.4
postretirement
benefit
liabilities
Other long-term 253.4 241.1
liabilities
Total 7,323.0 7,126.0
liabilities
Redeemable
noncontrolling 120.8 114.4
interests
Equifax
shareholders'
equity:
Preferred
stock, $0.01
par value:
Authorized — —
shares - 10.0;
Issued shares
- none
Common stock,
$1.25 par
value:
Authorized
shares - 300.0;
Issued shares -
189.3 at
September 30,
2026 and
December 31, 236.6 236.6
2025;
Outstanding
shares - 117.1
and 120.4 at
September 30,
2026 and
December 31,
2025,
respectively
Paid-in capital 2,100.5 2,023.4
Retained 6,811.9 6,445.1
earnings
Accumulated
other -441.2 -517.1
comprehensive
loss
Treasury stock,
at cost, 71.6
and 68.3
shares at
September 30, -4,229.1 -3,577.8
2026 and
December 31,
2025,
respectively
Stock held by
employee
benefits
trusts,
at cost, 0.6 -5.9 -5.9
shares at
September 30,
2026 and
December 31,
2025
Total Equifax 4,472.8 4,604.3
shareholders’e…
Noncontrolling 20.5 19.5
interests
Total
shareholders' 4,493.3 4,623.8
equity
Total
liabilities,
redeemable
noncontrolling $ 11,937.1 $ 11,864.2
interests, and
shareholders'
equity
7
EQUIFAX INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
(In millions) 2026
Operating activities: (Unaudited) 2025
──────────────────────────────────────────────────────────────────────────────
Consolidated net $ 571.8 $ 487.9
income
Adjustments to
reconcile consolidated
net income to net cash
provided by
operating activities:
Depreciation and 572.6 540.8
amortization
Stock-based 74.5 63.9
compensation expense
Deferred income taxes 73.5 29.6
Gain on sale of equity — -0.8
investment
Changes in assets and
liabilities,
excluding effects of
acquisitions:
Accounts receivable, -91.7 -45.6
net
Other assets, current -95.7 -10.3
and long-term
Current and long term
liabilities, 37.1 79.4
excluding debt
Cash provided by 1,142.1 1,144.9
operating activities
Investing activities:
Capital expenditures -378.9 -351.4
Cash received from — 0.8
divestitures
Cash used in investing -378.9 -350.6
activities
Financing activities:
Net short-term -604.8 -204.1
payments
Payments on long-term -276.4 —
debt
Proceeds from issuance 998.1 1.7
of long-term debt
Treasury stock -652.0 -427.4
purchases
Payment of share -8.3 —
repurchase excise tax
Dividends paid to -199.4 -172.0
Equifax shareholders
Distributions paid to
noncontrolling -5.6 -6.2
interests
Proceeds from exercise
of stock options 23.8 38.1
and employee stock
purchase plan
Payment of taxes
related to settlement -15.7 -13.6
of equity awards
Debt issuance costs -7.9 —
Cash used in financing -748.2 -783.5
activities
Effect of foreign
currency exchange -2.9 8.3
rates on cash and cash
equivalents
Increase in cash and 12.1 19.1
cash equivalents
Cash and cash
equivalents, beginning 180.8 169.9
of
period
Cash and cash
equivalents, end of $ 192.9 $ 189.0
period
8
Common Questions & Answers (Unaudited)
(Dollars in millions)
1.
Can you provide a further analysis of operating revenue by operating segment?
Operating revenue consists of the following components:
Th…
Mo…
En… Or…
(… Op… Se… $ % Lo… % Lo… %
m… re… 30, 20… 20… Ch… C… Cu… C… Cu… C…
──────────────────────────────────────────────────────────────────────────────
V… $ 60… $ 55… $ 49… 9 % 9 %
S…
E… 90… 95… -5… -5 % -5 %
S…
T…
W… 69… 64… 44… 7 % 7 %
S…
O…
I… 52… 46… 62… 13 % 13 %
S…
F…
M… 69… 62… 6.7 11 % 11 %
S…
T…
U… 59… 53… 68… 13 % 13 %
I…
S…
L… 11… 10… 12… 12 % 8 % 8 %
A…
E… 10… 10… 3.2 3 % 4 % 4 %
A… 10… 90… 17… 20 % 12 % 12 %
P…
C… 72… 70… 1.4 2 % 4 % 4 %
T… 39… 36… 34… 9 % 7 % 7 %
I…
T…
o… $ 1,… $ 1,… $ 14… 10 % 9 % 9 %
r…
(1) Local currency revenue change is calculated by conforming 2026 results using
2025 exchange rates.
(2) Organic local currency revenue growth is defined as local currency revenue
growth, adjusted to reflect an increase in prior year Equifax revenue from the
revenue of acquired companies in the prior year period. This adjustment is made
for 12 months following the acquisition.
9
Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP Financial
Measures (Unaudited)
(Dollars in millions, except per share amounts)
A. Reconciliation of net income attributable to Equifax to adjusted net income
attributable to Equifax and adjusted diluted EPS attributable to Equifax,
defined as net income and EPS, respectively, each adjusted for acquisition-
related amortization expense of certain acquired intangibles, accrual for legal
and regulatory matters related to the 2017 cybersecurity incident, foreign
currency impact of certain intercompany loans, acquisition-related costs other
than acquisition amortization, income tax effect of stock awards recognized upon
vesting or settlement, Argentina highly inflationary foreign currency
adjustment, realignment of resources and other costs, antitrust litigation costs
and aggregated tax impact of these adjustments:
(In
million… Three
except Months
per Ended
share Septem… %
amounts) 30, 2026 2025 $ Change Change
──────────────────────────────────────────────────────────────────────────────
Net
income
attri… $ 211.7 $ 160.2 $ 51.5 32 %
to
Equif…
Acqui…
amort…
expen…
of 59.9 62.7 -2.8 -4 %
certa…
acqui…
intan…
Accru…
for
legal
and
regul…
matte… 0.2 0.3 -0.1 -33 %
relat…
to the
2017
cyber…
incid…
Forei…
curre…
impact
of — -0.1 0.1 nm
certa…
inter…
loans…
Acqui…
costs
other 8.9 8.9 — — %
than
acqui…
amort…
Income
tax
effec…
of
stock
awards
that — -0.5 0.5 nm
are
recog…
upon
vesti…
or
settl…
Argen…
highly
infla… 0.4 0.7 -0.3 -43 %
forei…
curre…
adjus…
Reali…
of
resou… — 43.9 -43.9 nm
and
other
costs…
Antit…
litig… 0.8 4.3 -3.5 -81 %
costs…
Tax
impact -14.5 -27.5 13.0 -47 %
of
adjus…
Adjus…
net
income $ 267.4 $ 252.9 $ 14.5 6 %
attri…
to
Equif…
Adjus…
dilut…
EPS $ 2.26 $ 2.04 $ 0.22 11 %
attri…
to
Equif…
Weigh…
shares
used
in 118.1 124.1
compu…
dilut…
EPS
nm - not meaningful
(1) During the third quarter of 2026, we recorded acquisition-related
amortization expense of certain acquired intangibles of $59.9 million ($48.0
million, net of tax). We calculate this financial measure by excluding the
impact of acquisition-related amortization expense and including a benefit to
reflect the significant cash income tax savings resulting from the income tax
deductibility of amortization for certain acquired intangibles. The $11.9
million of tax is comprised of $15.9 million of tax expense, net of $4.0 million
of a cash income tax benefit. During the third quarter of 2025, we recorded
acquisition-related amortization expense of certain acquired intangibles of
$62.7 million ($50.2 million, net of tax). The $12.5 million of tax is comprised
of $16.7 million of tax expense, net of $4.2 million of a cash income tax
benefit. See the Notes to this reconciliation for additional detail.
(2) During the third quarter of 2026 and 2025, we recorded an accrual for legal
and regulatory matters related to the 2017 cybersecurity incident of $0.2
million ($0.2 million, net of tax) and $0.3 million ($0.2 million, net of tax),
respectively. See the Notes to this reconciliation for additional detail.
(3) During the third quarter of 2025, we recorded a foreign currency gain of
$0.1 million on certain intercompany loans. The impact was recorded to the Other
income, net line item within the Consolidated Statements of Income. See the
Notes to this reconciliation for additional detail.
(4) During the third quarter of 2026 and 2025, we recorded $8.9 million ($6.4
million, net of tax) and $8.9 million ($6.2 million, net of tax), respectively,
for acquisition-related costs other than acquisition amortization. These costs
primarily related to integration costs resulting from recent acquisition
activity and were recorded in operating income. See the Notes to this
reconciliation for additional detail.
(5) During the third quarter of 2025, we recorded a tax benefit of $0.5 million
related to the tax effects of deductions for stock compensation in excess of
amounts recorded for compensation costs. See the Notes to this reconciliation
for additional detail.
(6) Argentina experienced multiple periods of increasing inflation rates,
devaluation of the peso, and increasing borrowing rates. As such, Argentina was
deemed a highly inflationary economy by accounting policymakers. During the
third quarter of 2026 and 2025, we recorded a foreign currency loss of $0.4
million and $0.7 million, respectively, related to the
10
impact of remeasuring the peso denominated monetary assets and liabilities as a
result of Argentina being a highly inflationary economy. See the Notes to this
reconciliation for additional detail.
(7) During the third quarter of 2025, we recorded $43.9 million ($32.8 million,
net of tax) of restructuring charges for the realignment of resources and other
costs, which predominantly related to the reduction of headcount to support the
Company's global strategic objectives. See the Notes to this reconciliation for
additional detail.
(8) During the third quarter of 2026 and 2025, we recorded costs related to
antitrust litigation pertaining to our Workforce Solutions business unit in the
amount of $0.8 million ($0.7 million, net of tax) and $4.3 million ($3.2
million, net of tax), respectively. See the Notes to this reconciliation for
additional detail.
(9) During the third quarter of 2026, we recorded the tax impact of adjustments
of $14.5 million comprised of (i) acquisition-related amortization expense of
certain acquired intangibles of $11.9 million ($15.9 million of tax expense, net
of $4.0 million of cash income tax benefit), (ii) a tax adjustment of $2.5
million related to acquisition-related costs other than acquisition amortization
and (iii) a tax adjustment of $0.1 million related to antitrust litigation
costs.
During the third quarter of 2025, we recorded the tax impact of adjustments of
$27.5 million comprised of (i) acquisition-related amortization expense of
certain acquired intangibles of $12.5 million ($16.7 million of tax expense, net
of $4.2 million of cash income tax benefit), (ii) a tax adjustment of $0.1
million related to an accrual for legal and regulatory matters related to the
2017 cybersecurity incident, (iii) a tax adjustment of $2.7 million related to
acquisition-related costs other than acquisition amortization, (iv) a tax
adjustment of $11.1 million related to restructuring charges, and (v) a tax
adjustment of $1.1 million related to antitrust litigation costs.
11
B. Reconciliation of net income attributable to Equifax to adjusted EBITDA,
defined as net income excluding income taxes, interest expense, net,
depreciation and amortization expense, accrual for legal and regulatory matters
related to the 2017 cybersecurity incident, foreign currency impact of certain
intercompany loans, acquisition-related costs other than acquisition
amortization, Argentina highly inflationary foreign currency adjustment,
realignment of resources and other costs, antitrust litigation costs and
presentation of adjusted EBITDA margin:
Three
Months
Ended
(In Septe… $ %
milli… 30, 2026 2025 Chan… Change
──────────────────────────────────────────────────────────────────────────────
Reve… $ 1,692… $ 1,544… $ 147.6 10 %
Net
inco…
attr… $ 211.7 $ 160.2 $ 51.5 32 %
to
Equi…
Inco… 83.4 53.8 29.6 55 %
taxes
Inte…
expe… 60.4 49.5 10.9 22 %
net*
Depr…
and 194.4 183.3 11.1 6 %
amor…
Accr…
for
legal
and
regu…
matt… 0.2 0.3 -0.1 -33 %
rela…
to
2017
cybe…
inci…
Fore…
curr…
impa…
of — -0.1 0.1 nm
cert…
inte…
loan…
Acqu…
costs
other 8.9 8.9 — — %
than
acqu…
amor…
Arge…
high…
infl… 0.4 0.7 -0.3 -43 %
fore…
curr…
adju…
Real…
of
reso… — 43.9 -43.9 nm
and
other
cost…
Anti…
liti… 0.8 4.3 -3.5 -81 %
cost…
Adju…
EBIT…
excl…
the $ 560.2 $ 504.8 $ 55.4 11 %
items
list…
above
Adju…
EBIT… 33.1 % 32.7 %
marg…
nm - not meaningful
*Excludes interest income of $1.9 million in the third quarter of 2026 and $2.7
million in the third quarter of 2025.
(1) During the third quarter of 2026 and 2025, we recorded an accrual for legal
and regulatory matters related to the 2017 cybersecurity incident of $0.2
million ($0.2 million, net of tax) and $0.3 million ($0.2 million, net of tax),
respectively. See the Notes to this reconciliation for additional detail.
(2) During the third quarter of 2025, we recorded a foreign currency gain of
$0.1 million on certain intercompany loans. The impact was recorded to the Other
income, net line item within the Consolidated Statements of Income. See the
Notes to this reconciliation for additional detail.
(3) During the third quarter of 2026 and 2025, we recorded $8.9 million ($6.4
million, net of tax) and $8.9 million ($6.2 million, net of tax), respectively,
for acquisition-related costs other than acquisition amortization. These costs
primarily related to integration costs resulting from recent acquisition
activity and were recorded in operating income. See the Notes to this
reconciliation for additional detail.
(4) Argentina experienced multiple periods of increasing inflation rates,
devaluation of the peso, and increasing borrowing rates. As such, Argentina was
deemed a highly inflationary economy by accounting policymakers. During the
third quarter of 2026 and 2025, we recorded a foreign currency loss of $0.4
million and $0.7 million, respectively, related to the impact of remeasuring the
peso denominated monetary assets and liabilities as a result of Argentina being
a highly inflationary economy. See the Notes to this reconciliation for
additional detail.
(5) During the third quarter of 2025, we recorded $43.9 million ($32.8 million,
net of tax) of restructuring charges for the realignment of resources and other
costs, which predominantly related to the reduction of headcount to support the
Company's global strategic objectives. See the Notes to this reconciliation for
additional detail.
(6) During the third quarter of 2026 and 2025, we recorded costs related to
antitrust litigation pertaining to our Workforce Solutions business unit in the
amount of $0.8 million ($0.7 million, net of tax) and $4.3 million ($3.2
million, net of tax), respectively. See the Notes to this reconciliation for
additional detail.
12
C. Reconciliation of operating income by segment to Adjusted EBITDA, excluding
depreciation and amortization expense, other income, net, noncontrolling
interest, accrual for legal and regulatory matters related to the 2017
cybersecurity incident, foreign currency impact of certain intercompany loans,
acquisition-related costs other than acquisition amortization, Argentina highly
inflationary foreign currency adjustment, realignment of resources and other
costs, antitrust litigation costs and presentation of adjusted EBITDA margin for
each of the segments:
T…
M…
E…
S…
… 3…
… 2…
──────────────────────────────────────────────────────────────────────────────
W… U… Ge…
S… I… In… Co… To…
S… Ex…
… $ 6… $ 5… $ 3… — $ 1…
… 3… 1… 6… -… 3…
…
…
… 5… 6… 5… 2… 1…
…
…
… -… 0… 2… -… 1…
…
…
… — — -… — -…
…
… 0… — 7… 2… 1…
… $ 3… $ 2… $ 1… $ -… $ 5…
…
… 4… % 2… % 1… % nm 2… %
…
…
… 5… % 3… % 3… % nm 3… %
…
nm - not meaningful
*Excludes interest income of $1.3 million in International and $0.6 million in
General Corporate Expense.
Th…
Mo…
En…
Se…
(… 30,
m… 20…
──────────────────────────────────────────────────────────────────────────────
Wo… U.… Ge…
So… In… In… Co… To…
So… Ex…
R… $ 64… $ 53… $ 36… — $ 1…
O… 28… 12… 57… -… 2…
i…
D…
a… 47… 62… 48… 2… 1…
a…
O…
i… — 0.6 0.8 -… 0…
(…
n…
N… — — -1… — -…
i…
A… 1.0 -0… 9.1 4… 5…
A… $ 33… $ 18… $ 11… $ -… $ 5…
E…
O… 43… % 23… % 15… % nm 1… %
m…
A…
E… 51… % 35… % 31… % nm 3… %
m…
nm - not meaningful
*Excludes interest income of $2.4 million in International and $0.3 million in
General Corporate Expense.
(1) During the third quarter of 2026, we recorded pre-tax expenses of $0.2
million for an accrual for legal and regulatory matters related to the 2017
cybersecurity incident, $8.9 million for acquisition-related costs other than
acquisition amortization, $0.4 million for a foreign currency loss related to
the impact of remeasuring the peso denominated monetary assets and liabilities
as a result of Argentina being a highly inflationary economy and $0.8 million of
antitrust litigation costs.
During the third quarter of 2025, we recorded pre-tax expenses of $0.3 million
for an accrual for legal and regulatory matters related to the 2017
cybersecurity incident, a $0.1 million foreign currency gain on certain
intercompany loans, $8.9 million for acquisition-related costs other than
acquisition amortization, a foreign currency loss of $0.7 million related to the
impact of remeasuring the peso denominated monetary assets and liabilities as a
result of Argentina being a highly inflationary economy, $43.9 million of
restructuring charges for the realignment of resources and other costs and $4.3
million of antitrust litigation costs.
13
Notes to Reconciliations of Non-GAAP Financial Measures to the Comparable GAAP
Financial Measures
Diluted EPS attributable to Equifax is adjusted for the following items:
Acquisition-related amortization expense
- During the third quarter of 2026 and 2025, we recorded acquisition-related
amortization expense of certain acquired intangibles of $59.9 million ($48.0
million, net of tax) and $62.7 million ($50.2 million, net of tax),
respectively. We calculate this financial measure by excluding the impact of
acquisition-related amortization expense and including a benefit to reflect the
material cash income tax savings resulting from the income tax deductibility of
amortization for certain acquired intangibles. These financial measures are not
prepared in conformity with GAAP. Management believes excluding the impact of
amortization expense is useful because excluding acquisition-related
amortization, and other items that are not comparable, allows investors to
evaluate our performance for different periods on a more comparable basis.
Certain acquired intangibles result in material cash income tax savings which
are not reflected in earnings. Management believes that including a benefit to
reflect the cash income tax savings is useful as it allows investors to better
value Equifax. Management makes these adjustments to earnings when measuring
profitability, evaluating performance trends, setting performance objectives and
calculating our return on invested capital.
Accrual for legal and regulatory matters related to the 2017 cybersecurity
incident - Accrual for legal and regulatory matters related to the 2017
cybersecurity incident includes legal fees to respond to subsequent litigation
and government investigations for both periods presented. During the third
quarter of 2026 and 2025, we recorded an accrual for legal and regulatory
matters related to the 2017 cybersecurity incident of $0.2 million ($0.2
million, net of tax) and $0.3 million ($0.2 million, net of tax), respectively.
Management believes excluding these charges is useful as it allows investors to
evaluate our performance for different periods on a more comparable basis.
Management makes these adjustments to net income when measuring profitability,
evaluating performance trends, setting performance objectives and calculating
our return on invested capital. This is consistent with how management reviews
and assesses Equifax’s historical performance and is useful when planning,
forecasting and analyzing future periods.
Foreign currency impact of certain intercompany loans - During the third quarter
of 2025, we recorded a foreign currency gain of $0.1 million on certain
intercompany loans. Management believes excluding this charge is useful as it
allows investors to evaluate our performance for different periods on a more
comparable basis. This is consistent with how management reviews and assesses
Equifax’s historical performance and is useful when planning, forecasting and
analyzing future periods.
Acquisition-related costs other than acquisition amortization - During the third
quarter of 2026 and 2025, we recorded $8.9 million ($6.4 million, net of tax)
and $8.9 million ($6.2 million, net of tax), respectively, for acquisition-
related costs other than acquisition amortization. These costs primarily related
to transaction and integration costs resulting from recent acquisitions and were
recorded in operating income. Management believes excluding this charge from
certain financial results provides meaningful supplemental information regarding
our financial results, since a charge of such an amount is not comparable among
the periods. This is consistent with how our management reviews and assesses
Equifax’s historical performance and is useful when planning, forecasting, and
analyzing future periods.
Income tax effects of stock awards that are recognized upon vesting or
settlement - During the third quarter of 2025, we recorded a tax benefit of $0.5
million related to the tax effects of deductions for stock compensation in
excess of amounts recorded for compensation costs. Management believes excluding
this tax effect from financial results provides meaningful supplemental
information regarding our financial results for the three months ended September
30, 2025 because these amounts are non-operating and relate to income tax
benefits or deficiencies for stock awards recognized when tax amounts differ
from recognized stock compensation cost. This is consistent with how management
reviews and assesses Equifax’s historical performance and is useful when
planning, forecasting and analyzing future periods.
Argentina highly inflationary foreign currency adjustment - Argentina
experienced multiple periods of increasing inflation rates, devaluation of the
peso, and increasing borrowing rates. As such, Argentina was deemed a highly
inflationary economy by accounting policymakers. We recorded a foreign currency
loss of $0.4 million and $0.7 million during the third quarter of 2026 and 2025,
respectively, as a result of remeasuring the peso denominated monetary assets
and liabilities due to Argentina being highly inflationary. Management believes
excluding this charge is useful as it allows investors to evaluate our
performance for different periods on a more comparable basis. This is consistent
with how management reviews and assesses Equifax’s historical performance and is
useful when planning, forecasting and analyzing future periods.
Charge related to the realignment of resources and other costs - During the
third quarter of 2025, we recorded $43.9 million ($32.8 million, net of tax) of
restructuring charges for the realignment of resources and other costs, which
predominantly related to the reduction of headcount to support the Company's
global strategic objectives. Management believes excluding these charges from
certain financial results provides meaningful supplemental information regarding
our financial results since
14
a charge of such an amount is not comparable among the periods. This is
consistent with how our management reviews and assesses Equifax’s historical
performance and is useful when planning, forecasting and analyzing future
periods.
Antitrust litigation costs
- Antitrust litigation costs include legal fees to respond to antitrust
litigation pertaining to our Workforce Solutions business unit. During the third
quarter of 2026 and 2025, we recorded costs related to antitrust litigation
pertaining to our Workforce Solutions business unit in the amount of $0.8
million ($0.7 million, net of tax) and $4.3 million ($3.2 million, net of tax),
respectively. Management believes excluding these charges is useful as it allows
investors to evaluate our performance for different periods on a more comparable
basis, as these legal matters are outside of the normal course of Equifax’s
continuing business operations. Management makes these adjustments to net income
when measuring profitability, evaluating performance trends, setting performance
objectives and calculating our return on invested capital. This is consistent
with how management reviews and assesses Equifax’s historical performance and is
useful when planning, forecasting and analyzing future periods.
Adjusted EBITDA and EBITDA margin
- Management defines adjusted EBITDA as consolidated net income attributable to
Equifax plus net interest expense, income taxes, depreciation and amortization,
and also excludes certain one-time items. Management believes the use of
adjusted EBITDA and adjusted EBITDA margin allows investors to evaluate our
performance for different periods on a more comparable basis.
15