Transunion Stock Earnings Reports

TransUnion reported strong Q3 2025 results, beating guidance and delivering its seventh consecutive quarter of high single-digit organic revenue growth (11% organic constant currency excluding last year’s breach remediation). Management raised full-year 2025 guidance across revenue, adjusted EBITDA, and adjusted EPS, citing stable U.S. lending trends, new business wins, and continued commercial momentum. Key operational priorities and investor highlights: (1) Technology modernization — completed migration of first U.S. credit customers to the One True platform, expect all U.S. migrations by mid-2026, and plan to shift modernization to international markets in 2026; (2) AI and product innovation — One True, TrueIQ, Factor Trust, fraud models, data enrichment on Snowflake, and other AI-enabled products are positioned to drive new revenue and efficiency; (3) Margin & cost savings — on track to deliver remaining structural savings in 2026 ($35M operating expense savings expected) and reduce capex to ~6% of revenue in 2026, with no technology-related one-time add-back in 2026; (4) Capital returns & balance sheet — accelerated buybacks ($160M repurchased in Q3 and October; YTD $200M) and increased repurchase authorization to $1B, debt at $5.1B, leverage down to 2.7x and targeting <2.5x; (5) Mortgage opportunity — management expects VantageScore 4.0 adoption to be a profit upside over time, announcing $4 pricing for VantageScore 4.0 and pacing offers to encourage adoption vs. recent FICO price increases; (6) Geographic / vertical performance — U.S. Markets and Financial Services outperformed (U.S. Markets +13% ex-breach), Emerging Verticals accelerated to 7.5% (insurance, Trusted Call Solutions, marketing strong), International grew 6% (Canada, UK, Africa strong; India softer at 5% in Q3 due to tariffs but expected to recover); (7) Transformation charges — cumulative one-time transformation spend is $349M, on track for $355–$375M by year-end; (8) Guidance & cash flow — FY revenue guide $4.524–4.544B (8% organic constant currency growth), adjusted EBITDA $1.622–1.637B (up 8–9%), adjusted diluted EPS $4.19–4.25 (up 7–9%); free cash flow conversion expected ~70% of adjusted net income in 2025, improving to 90%+ in 2026. Overall, TransUnion positions itself as growing, innovation-led, and shareholder-friendly with multiple levers for margin expansion and upside from AI, mortgage normalization, and international recoveries.