Equifax Reports $1.442 Billion Revenue and $133.1 Million Net Income in Q1 2025

Equifax Inc. reported a consolidated operating revenue of $1.442 billion for the first quarter of 2025, marking an increase of $52.6 million, or 4%, compared to $1.389 billion in the same period of 2024. The company's net income attributable to Equifax rose to $133.1 million, up from $124.9 million year-over-year, resulting in diluted earnings per share of $1.06, compared to $1.00 in the prior year. The increase in revenue was primarily driven by growth in the U.S. Information Solutions and Workforce Solutions segments, despite a negative impact of $20 million from foreign exchange rates.

Operating expenses for the first quarter of 2025 totaled $1.206 billion, an increase of $41.5 million, or 3.6%, from $1.165 billion in the previous year. The rise in expenses was attributed to higher costs of services, which increased by $29 million, primarily due to increased revenue share and royalty costs. Selling, general, and administrative expenses also saw a slight increase, reflecting higher personnel costs. The operating income for the quarter was $235.8 million, up from $224.7 million, resulting in an operating margin of 16.4%, a slight improvement from 16.2% in the prior year.

In terms of strategic developments, Equifax did not complete any acquisitions during the first quarter of 2025. However, the company continues to focus on enhancing its technology infrastructure, particularly through its cloud technology transformation. The company reported a restructuring charge of $1.4 million related to contract terminations as part of this ongoing transformation. Equifax's employee headcount remained stable, with no significant changes reported.

Geographically, Equifax operates in 20 countries, with the U.S. accounting for approximately 78% of its revenue in the first quarter of 2025. The company reported revenue growth in its international segments, particularly in Latin America, where local currency growth was driven by strong performance in Argentina and Brazil. However, revenue from Canada decreased by 4% due to unfavorable currency fluctuations. The company continues to monitor economic conditions, including inflation and interest rates, which are expected to impact demand for its services in the coming quarters.

Looking ahead, Equifax anticipates that U.S. economic activity will grow at a slower rate in 2025 compared to 2024, with expectations for reduced mortgage credit activity. The company remains cautious about the potential impacts of economic volatility on its operations and is committed to adapting its strategies to navigate these challenges effectively.