Equifax Inc.
10/20/2026 | Press release | Distributed by Public on 10/20/2026 14:17
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management's Discussion and Analysis ("MD&A") is intended to help the reader understand the results of operations and financial condition of Equifax Inc. MD&A is provided as a supplement to and should be read in conjunction with our consolidated financial statements and the accompanying Notes to Financial Statements in Item 1 of this Form 10-Q. This section discusses the results of our operations for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025. All percentages have been calculated using unrounded amounts for each of the periods presented.
As used herein, the terms Equifax, the Company, we, our and us refer to Equifax Inc., a Georgia corporation, and its consolidated subsidiaries as a combined entity, except where it is clear that the terms mean only Equifax Inc.
All references to earnings per share data in MD&A are to diluted earnings per share, or EPS, unless otherwise noted. Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised and resulted in additional common shares outstanding.
BUSINESS OVERVIEW
Equifax Inc. is a global data, analytics and technology company. We provide information solutions for businesses, governments and consumers, and we provide human resources business process automation and outsourcing services for employers. We have a large and diversified group of clients, including financial institutions, corporations, government agencies and individuals. Our services are based on comprehensive databases of consumer and business information derived from numerous sources including credit, financial assets, telecommunications and utility payments, employment, income, educational history, criminal justice, healthcare professional licensure and sanctions, demographic and marketing data. We use advanced statistical techniques, artificial intelligence and machine learning, as well as proprietary software tools to analyze available data to create customized insights, decision-making and process automation solutions and processing services for our clients. We are a leading provider of information and solutions used in payroll-related and human resource management business process services in the U.S., as well as e-commerce fraud and charge back protection services in North America. For consumers, we provide products and services to help people understand, manage and protect their personal information and make more informed financial decisions. Additionally, we provide information, technology and services to support debt collections and recovery management. We report our revenue derived from sales to clients in the mortgage market as well as those in non-mortgage market verticals (including, but not limited to, government, talent, employment, fraud and other non-mortgage related services). We refer to these non-mortgage market verticals collectively as "diversified markets."
We currently operate in four global regions: North America (U.S. and Canada), Latin America (Argentina, Brazil, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru and Uruguay), Europe (the U.K., Spain and Portugal) and Asia Pacific (Australia, New Zealand and India). We maintain support operations in Chile, Costa Rica, India and Ireland. We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore.
Recent Events and Company Outlook
As further described in our 2025 Form 10-K, we operate in the U.S., which represented 77% of our revenue in 2025. Additionally, we operate internationally in 20 countries. Our products and services span a wide variety of vertical markets including financial services, mortgage, talent solutions, federal, state and local governments, automotive, telecommunications, e-commerce and many others.
Demand for our services tends to be correlated to general levels of economic activity and to consumer credit and small business commercial credit decisioning and portfolio review, marketing, identity validation and fraud protection activity, employee hiring and onboarding activity, and activity in provisioning support services in the U.S. by government agencies. Demand is also enhanced by our initiatives to expand our products, capabilities and markets served.
We remain in a period of economic uncertainty in the U.S. and our global markets, including uncertainty regarding expectations for inflation and interest rates. The direction of global economies, inflation and interest rates will have an impact on demand for our services.
Our current planning for 2026 assumes that U.S. economic activity, as measured by GDP, will grow at a rate consistent with 2025. We expect U.S. mortgage originations activity in 2026 to be below the levels of activity seen in 2025. The
U.S. mortgage market, particularly the mortgage refinance portion of the U.S. mortgage market, can be significantly impacted by U.S. interest rates which impact mortgage rates available to consumers. In the international markets in which we operate, our planning assumes that economic activity, as measured by GDP, will generally grow in 2026 at rates below those experienced in 2025. As noted above, due to the current significant economic and market volatility and uncertainty, these assumptions may change.
For more information, see "Item 1A. Risk FactorsーNegative changes in general economic conditions, including interest rates, the level of inflation, unemployment rates, income, home prices, investment values and consumer confidence, could adversely affect us," in our 2025 Form 10-K.
Segment and Geographic Information
Segments. The Workforce Solutions segment consists of the Verification Services and Employer Services business lines. Verification Services revenue is transaction and subscription based and is derived primarily from verifications of employment and income data, as well as criminal justice data and educational background data. Employer Services revenue is derived from our provision of certain human resources business process outsourcing services that include both transaction and subscription based product offerings. These services include unemployment claims management, I-9 and onboarding services, Affordable Care Act ("ACA") compliance management, tax credits and incentives and other complementary employment-based transaction services.
The USIS segment consists of two service lines: Online Information Solutions and Financial Marketing Services. Online Information Solutions revenue is principally transaction-based and is derived from our sales of products such as consumer and commercial credit reporting and scoring, identity management, fraud detection, modeling services and consumer credit monitoring services. USIS also markets certain analytical and decisioning software and services which facilitate and automate a variety of consumer and commercial credit-oriented decisions. Online Information Solutions also includes our U.S. consumer credit monitoring solutions business. Financial Marketing Services revenue is principally project and subscription based and is derived from our sales of batch credit and consumer wealth information such as those that assist clients in acquiring new customers, cross-selling to existing customers and managing portfolio risk.
The International segment consists of Latin America, Europe, Asia Pacific and Canada. Canada's services are similar to our USIS offerings. Asia Pacific, Europe and Latin America are made up of varying mixes of service lines that are generally consistent with those in our USIS reportable segment. We also provide information and technology services to support lenders and other creditors in the collections and recovery management process.
Geographic Information. We currently have operations in the following countries: Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the U.K., Uruguay and the U.S. We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore. Approximately 76% of our revenue was generated in the U.S. during the three months ended September 30, 2026 and 2025. Approximately 77% of our revenue was generated in the U.S. during the nine months ended September 30, 2026 and 2025.
Seasonality. We experience seasonality in certain of our revenue streams. Revenue generated by the online consumer information services component of our USIS operating segment is typically the lowest during the first quarter, when consumer lending activity is at a seasonal low. Revenue generated from the Employer Services business unit within the Workforce Solutions operating segment is generally higher in the first quarter due primarily to the provision of 1095-C services that occur in the first quarter each year. Revenue generated from our financial wealth asset products and data management services in our Financial Marketing Services business is generally higher in the fourth quarter each year due to the significant portion of our annual renewals and deliveries which occur then. Mortgage related revenue is generally higher in the second and third quarters of the year due to the increase in consumer home purchasing during the summer in the U.S. Any change in the U.S. mortgage market has a corresponding impact on revenue and operating profit for our business within the Workforce Solutions and USIS operating segments.
Key Performance Indicators. Management focuses on a variety of key indicators to monitor operating and financial performance. These performance indicators include measurements of operating revenue, change in operating revenue, operating income, operating margin, net income, diluted earnings per share, cash provided by operating activities and capital expenditures. The key performance indicators for the three and nine months ended September 30, 2026 and 2025 were as follows:
| Key Performance Indicators | ||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||||||||||||
| Operating revenue | $ | 1,692.5 | $ | 1,544.9 | $ | 5,041.5 | $ | 4,523.9 | ||||||||||||||||||
| Operating revenue change | 10 | % | 7 | % | 11 | % | 6 | % | ||||||||||||||||||
| Operating income | $ | 355.3 | $ | 264.3 | $ | 957.2 | $ | 811.0 | ||||||||||||||||||
| Operating margin | 21.0 | % | 17.1 | % | 19.0 | % | 17.9 | % | ||||||||||||||||||
| Net income attributable to Equifax | $ | 211.7 | $ | 160.2 | $ | 567.1 | $ | 484.5 | ||||||||||||||||||
| Diluted earnings per share | $ | 1.79 | $ | 1.29 | $ | 4.75 | $ | 3.89 | ||||||||||||||||||
| Cash provided by operating activities | $ | 560.4 | $ | 559.9 | $ | 1,142.1 | $ | 1,144.9 | ||||||||||||||||||
| Capital expenditures* | $ | (127.2) | $ | (125.8) | $ | (373.7) | $ | (349.1) | ||||||||||||||||||
*Amounts include accruals for capital expenditures.
Operational and Financial Highlights
•On April 21, 2025, our Board of Directors approved an authorization to repurchase up to $3 billion of shares of common stock. During the third quarter of 2026, we repurchased 532,391 shares of our common stock on the open market for $92.0 million, excluding brokerage commissions and excise taxes of $0.8 million. During the third quarter of 2025, we repurchased 1,237,362 shares of our common stock on the open market for $300.0 million, excluding brokerage commissions and excise taxes of $2.8 million.
During the first nine months of 2026, we repurchased 3,640,019 shares of our common stock on the open market for $652.0 million, excluding brokerage commissions and excise taxes of $5.8 million. During the first nine months of 2025, we repurchased 1,716,868 shares of our common stock on the open market for $427.4 million, excluding brokerage commissions and excise taxes of $3.5 million. At September 30, 2026, approximately $1.4 billion was available for future purchases of common stock under our share repurchase authorization.
•On February 25, 2026, our Board of Directors approved an increase in our quarterly cash dividend to $0.56 per share beginning in the first quarter of 2026. We paid out $199.4 million, or $1.68 per share, in dividends to our shareholders during the first nine months of 2026.
RESULTS OF OPERATIONS-THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025
Consolidated Financial Results
Operating Revenue
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Operating Revenue | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Workforce Solutions | $ | 693.9 | $ | 649.4 | $ | 44.5 | 7 | % | $ | 2,082.4 | $ | 1,930.1 | $ | 152.3 | 8 | % | ||||||||||||||||||||||||||||||||||
| U.S. Information Solutions | 599.1 | 530.2 | 68.9 | 13 | % | 1,816.3 | 1,551.6 | 264.7 | 17 | % | ||||||||||||||||||||||||||||||||||||||||
| International | 399.5 | 365.3 | 34.2 | 9 | % | 1,142.8 | 1,042.2 | 100.6 | 10 | % | ||||||||||||||||||||||||||||||||||||||||
| Consolidated operating revenue | $ | 1,692.5 | $ | 1,544.9 | $ | 147.6 | 10 | % | $ | 5,041.5 | $ | 4,523.9 | $ | 517.6 | 11 | % | ||||||||||||||||||||||||||||||||||
Revenue increased by $147.6 million, or 10%, and increased by $517.6 million, or 11%, for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. Total revenue was positively impacted by foreign exchange rates, which increased revenue by $9.1 million, or 1%, and $46.3 million, or 1%, for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025.
Revenue increased for both periods due to revenue growth in USIS, Workforce Solutions and International. USIS revenue growth is primarily due to growth in mortgage and diversified markets revenue in Online Information Solutions. Workforce Solutions revenue growth is primarily due to growth in Verification Services. International revenue growth is primarily driven by growth in Asia Pacific and Latin America, as well as growth in Europe and Canada.
Operating Expenses
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Operating Expenses | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated cost of services | $ | 752.4 | $ | 663.2 | $ | 89.2 | 13 | % | $ | 2,293.1 | $ | 1,984.4 | $ | 308.7 | 16 | % | ||||||||||||||||||||||||||||||||||
| Consolidated selling, general and administrative expenses | 390.4 | 434.1 | (43.7) | (10) | % | 1,224.0 | 1,193.2 | 30.8 | 3 | % | ||||||||||||||||||||||||||||||||||||||||
| Consolidated depreciation and amortization expense | 194.4 | 183.3 | 11.1 | 6 | % | 567.2 | 535.3 | 31.9 | 6 | % | ||||||||||||||||||||||||||||||||||||||||
| Consolidated operating expenses | $ | 1,337.2 | $ | 1,280.6 | $ | 56.6 | 4 | % | $ | 4,084.3 | $ | 3,712.9 | $ | 371.4 | 10 | % | ||||||||||||||||||||||||||||||||||
Cost of services increased $89.2 million and $308.7 million in the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily due to higher royalty and revenue share costs. The increase in the first nine months is also due to higher people costs. The impact of changes in foreign exchange rates on costs of services led to an increase of $4.2 million and $23.1 million in the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025.
Selling, general and administrative expenses decreased $43.7 million and increased $30.8 million for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The decrease for the third quarter is primarily due to a decrease in people costs, principally driven by a severance charge in the third quarter of 2025 that did not occur in the current year period, partially offset by an increase in litigation expense. The increase for the first nine months is primarily due to an increase in litigation expense, principally due to a charge for a legal settlement from the second quarter of 2026 associated with the resolution of claims related to a previously-disclosed coding issue, net of expected insurance proceeds. The increase for the first nine months is partially offset by a decrease in people costs. The impact of changes in foreign currency exchange rates led to an increase in selling, general and administrative expenses of $2.0 million and $11.7 million for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025.
Depreciation and amortization expense increased $11.1 million and $31.9 million for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily due to increased amortization of capitalized internal-use software costs. The impact of changes in foreign currency exchange rates led to an increase in depreciation and amortization expense of $2.0 million and $9.4 million for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025.
Operating Income and Operating Margin
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Operating Income | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated operating revenue | $ | 1,692.5 | $ | 1,544.9 | $ | 147.6 | 10 | % | $ | 5,041.5 | $ | 4,523.9 | $ | 517.6 | 11 | % | ||||||||||||||||||||||||||||||||||
| Consolidated operating expenses | 1,337.2 | 1,280.6 | 56.6 | 4 | % | 4,084.3 | 3,712.9 | 371.4 | 10 | % | ||||||||||||||||||||||||||||||||||||||||
| Consolidated operating income | $ | 355.3 | $ | 264.3 | $ | 91.0 | 34 | % | $ | 957.2 | $ | 811.0 | $ | 146.2 | 18 | % | ||||||||||||||||||||||||||||||||||
| Consolidated operating margin | 21.0 | % | 17.1 | % | 3.9 | pts | 19.0 | % | 17.9 | % | 1.1 | pts | ||||||||||||||||||||||||||||||||||||||
Total company operating margin increased by 3.9 percentage points and 1.1 percentage points in the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily due to the aforementioned increases in revenue, partially offset by the aforementioned increases in operating expenses. The increase in operating expenses for the third quarter is primarily due to higher royalty and revenue share costs, partially offset by a decrease in people costs. The increase in operating expenses for the first nine months is primarily due to higher royalty and revenue share costs, higher litigation expense, and higher amortization of capitalized internal-use software costs, partially offset by a decrease in people costs.
Interest Expense and Other Income, Net
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
|
Consolidated Interest Expense and Other Income, net
|
2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated interest expense | $ | (62.3) | $ | (52.2) | $ | (10.1) | 19 | % | $ | (177.8) | $ | (158.2) | $ | (19.6) | 12 | % | ||||||||||||||||||||||||||||||||||
|
Consolidated other income, net
|
3.8 | 3.2 | 0.6 | 19 | % | 10.1 | 9.2 | 0.9 | 10 | % | ||||||||||||||||||||||||||||||||||||||||
| Average cost of debt | 4.6 | % | 4.3 | % | 4.5 | % | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total consolidated debt, net, at quarter end | $ | 5,206.7 | $ | 4,813.1 | $ | 393.6 | 8 | % | $ | 5,206.7 | $ | 4,813.1 | $ | 393.6 | 8 | % | ||||||||||||||||||||||||||||||||||
Interest expense increased by $10.1 million and $19.6 million in the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily due to higher weighted average debt balances, as well as higher weighted average cost of debt when compared to the same periods in 2025.
Other income, net, increased by $0.6 million and $0.9 million in the third quarter and first nine months of 2026, respectively, as compared to the same periods in 2025. The increase for both periods is primarily due to higher equity investment income, partially offset by lower interest income as compared to the same periods in 2025. The increase for the first nine months is also due to higher gains on foreign currency transactions.
Income Taxes
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Provision for Income Taxes | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated provision for income taxes | $ | (83.4) | $ | (53.8) | $ | (29.6) | 55 | % | $ | (217.7) | $ | (174.1) | $ | (43.6) | 25 | % | ||||||||||||||||||||||||||||||||||
| Effective income tax rate | 28.1 | % | 25.0 | % | 27.6 | % | 26.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Our effective income tax rate was 28.1% for the three months ended September 30, 2026 compared to 25.0% for the three months ended September 30, 2025. Our effective income tax rate was 27.6% for the nine months ended September 30, 2026 compared to 26.3% for the nine months ended September 30, 2025. Our effective income tax rate was higher for each comparative period in 2026 due to more favorable discrete benefits recorded in 2025, none of which were individually material.
Net Income
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Net Income | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated operating income | $ | 355.3 | $ | 264.3 | $ | 91.0 | 34 | % | $ | 957.2 | $ | 811.0 | $ | 146.2 | 18 | % | ||||||||||||||||||||||||||||||||||
| Consolidated interest expense and other income, net | (58.5) | (49.0) | (9.5) | 19 | % | (167.7) | (149.0) | (18.7) | 13 | % | ||||||||||||||||||||||||||||||||||||||||
| Consolidated provision for income taxes | (83.4) | (53.8) | (29.6) | 55 | % | (217.7) | (174.1) | (43.6) | 25 | % | ||||||||||||||||||||||||||||||||||||||||
| Consolidated net income | 213.4 | 161.5 | 51.9 | 32 | % | 571.8 | 487.9 | 83.9 | 17 | % | ||||||||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests including redeemable noncontrolling interests | (1.7) | (1.3) | (0.4) | 31 | % | (4.7) | (3.4) | (1.3) | 38 | % | ||||||||||||||||||||||||||||||||||||||||
| Net income attributable to Equifax | $ | 211.7 | $ | 160.2 | $ | 51.5 | 32 | % | $ | 567.1 | $ | 484.5 | $ | 82.6 | 17 | % | ||||||||||||||||||||||||||||||||||
| Diluted earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to Equifax | $ | 1.79 | $ | 1.29 | $ | 0.50 | 39 | % | $ | 4.75 | $ | 3.89 | $ | 0.86 | 22 | % | ||||||||||||||||||||||||||||||||||
| Weighted-average shares used in computing diluted earnings per share | 118.1 | 124.1 | 119.3 | 124.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Consolidated net income increased by $51.9 million and $83.9 million for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily due to higher operating income, partially offset by higher income tax expense and interest expense.
Segment Financial Results
Workforce Solutions
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| Workforce Solutions | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Verification Services | $ | 603.2 | $ | 553.6 | $ | 49.6 | 9 | % | $ | 1,782.2 | $ | 1,622.9 | $ | 159.3 | 10 | % | ||||||||||||||||||||||||||||||||||
| Employer Services | 90.7 | 95.8 | (5.1) | (5) | % | 300.2 | 307.2 | (7.0) | (2) | % | ||||||||||||||||||||||||||||||||||||||||
| Total operating revenue | $ | 693.9 | $ | 649.4 | $ | 44.5 | 7 | % | $ | 2,082.4 | $ | 1,930.1 | $ | 152.3 | 8 | % | ||||||||||||||||||||||||||||||||||
| % of consolidated revenue | 41 | % | 42 | % | 41 | % | 43 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total operating income | $ | 306.3 | $ | 284.5 | $ | 21.8 | 8 | % | $ | 932.4 | $ | 856.0 | $ | 76.4 | 9 | % | ||||||||||||||||||||||||||||||||||
| Operating margin | 44.1 | % | 43.8 | % | 0.3 | pts | 44.8 | % | 44.3 | % | 0.5 | pts | ||||||||||||||||||||||||||||||||||||||
Workforce Solutions revenue increased by 7% and 8% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily due to an increase in diversified markets
verticals within Verification Services, partially offset by a decrease in Employer Services. The increase in the first nine months is also due to growth in the mortgage vertical within Verification Services.
Verification Services
Revenue increased by 9% and 10% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase in revenue for both periods is primarily due to growth in diversified markets, primarily in the talent solutions, consumer lending and government verticals. The increase in revenue for the first nine months is also due to growth in the mortgage vertical, while for the third quarter, growth in the mortgage vertical was flat.
Employer Services
Revenue decreased by 5% and 2% in the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The decrease for the third quarter is primarily due to lower revenue from Work Opportunity Tax Credit ("WOTC") services, partially offset by an increase in I-9 and onboarding services. The decrease for the first nine months is primarily due to lower revenue from our ACA related services and WOTC services, partially offset by an increase in I-9 and onboarding services.
Workforce Solutions Operating Margin
Operating margin increased to 44.1% for the third quarter of 2026 from 43.8% for the third quarter of 2025 and increased to 44.8% for the first nine months of 2026 from 44.3% for the first nine months of 2025. The increased margin for both periods is primarily due to the aforementioned increase in revenue, partially offset by higher revenue share costs and higher amortization of capitalized internal-use software costs.
USIS
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Information Solutions | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Online Information Solutions | $ | 529.7 | $ | 467.5 | $ | 62.2 | 13 | % | $ | 1,628.8 | $ | 1,373.5 | $ | 255.3 | 19 | % | ||||||||||||||||||||||||||||||||||
| Financial Marketing Services | 69.4 | 62.7 | 6.7 | 11 | % | 187.5 | 178.1 | 9.4 | 5 | % | ||||||||||||||||||||||||||||||||||||||||
| Total operating revenue | $ | 599.1 | $ | 530.2 | $ | 68.9 | 13 | % | $ | 1,816.3 | $ | 1,551.6 | $ | 264.7 | 17 | % | ||||||||||||||||||||||||||||||||||
| % of consolidated revenue | 35 | % | 34 | % | 36 | % | 34 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total operating income | $ | 145.4 | $ | 123.3 | $ | 22.1 | 18 | % | $ | 405.6 | $ | 346.9 | $ | 58.7 | 17 | % | ||||||||||||||||||||||||||||||||||
| Operating margin | 24.3 | % | 23.2 | % | 1.1 | pts | 22.3 | % | 22.4 | % | (0.1) | pts | ||||||||||||||||||||||||||||||||||||||
USIS revenue increased by 13% and 17% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily due to growth in Online Information Solutions, which is due to higher mortgage revenue, primarily due to product pricing, as well as growth in diversified markets revenue.
Online Information Solutions
Revenue increased by 13% and 19% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is driven by growth in mortgage related services, primarily due to product pricing, as well as growth in diversified markets revenue.
Financial Marketing Services
Revenue increased by 11% and 5% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily due to growth in credit marketing services.
USIS Operating Margin
USIS operating margin increased to 24.3% for the third quarter of 2026 from 23.2% for the third quarter of 2025 and decreased to 22.3% for the first nine months of 2026 from 22.4% for the first nine months of 2025. The margin increase for the third quarter is primarily due to the aforementioned increase in revenue, partially offset by an increase in mortgage-related royalty costs. The margin decrease for the first nine months is primarily due to higher mortgage-related royalty costs, partially offset by the aforementioned increase in revenue.
International
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| International | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Operating revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Latin America | $ | 114.1 | $ | 102.1 | $ | 12.0 | 12 | % | $ | 325.7 | $ | 295.8 | $ | 29.9 | 10 | % | ||||||||||||||||||||||||||||||||||
| Europe | 105.5 | 102.3 | 3.2 | 3 | % | 300.6 | 288.0 | 12.6 | 4 | % | ||||||||||||||||||||||||||||||||||||||||
| Asia Pacific | 107.7 | 90.1 | 17.6 | 20 | % | 299.9 | 255.1 | 44.8 | 18 | % | ||||||||||||||||||||||||||||||||||||||||
| Canada | 72.2 | 70.8 | 1.4 | 2 | % | 216.6 | 203.3 | 13.3 | 7 | % | ||||||||||||||||||||||||||||||||||||||||
| Total operating revenue | $ | 399.5 | $ | 365.3 | $ | 34.2 | 9 | % | $ | 1,142.8 | $ | 1,042.2 | $ | 100.6 | 10 | % | ||||||||||||||||||||||||||||||||||
| % of consolidated revenue | 24 | % | 24 | % | 23 | % | 23 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total operating income | $ | 63.1 | $ | 57.7 | $ | 5.4 | 9 | % | $ | 143.5 | $ | 121.7 | $ | 21.8 | 18 | % | ||||||||||||||||||||||||||||||||||
| Operating margin | 15.8 | % | 15.8 | % | - | pts | 12.6 | % | 11.7 | % | 0.9 | pts | ||||||||||||||||||||||||||||||||||||||
International revenue increased by 9% and 10% in the third quarter and the first nine months of 2026, respectively, compared to the same periods in 2025. On a local currency basis, revenue increased by 7% and 5% in the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025, driven by local currency growth in Asia Pacific, Latin America, Canada and Europe. Local currency fluctuations against the U.S. dollar positively impacted revenue by $9.1 million, or 2%, for the third quarter of 2026, and by $46.3 million, or 5%, for the first nine months of 2026.
Latin America
On a local currency basis, revenue increased by 8% and 5% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for the third quarter is primarily due to local currency growth in Brazil, Chile and Paraguay. The increase for the first nine months is primarily due to local currency growth in Brazil, Chile and Argentina. Local currency fluctuations against the U.S. dollar positively impacted revenue by $4.3 million, or 4%, and $15.0 million, or 5%, for the third quarter and first nine months of 2026, respectively. Reported revenue increased by 12% and 10% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025.
Europe
On a local currency basis, revenue increased by 4% and 2% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for the third quarter is primarily due to growth in the debt services business in the U.K. and the consumer credit reporting business in Spain. The increase for the first nine months is primarily due to growth in the consumer credit reporting businesses in the U.K. and Spain. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $0.6 million, or 1%, for the third quarter of 2026 and positively impacted revenue by $6.8 million, or 2%, for the first nine months of 2026. Reported revenue increased by 3% and 4% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025.
Asia Pacific
On a local currency basis, revenue increased by 12% and 9% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily driven by growth in the commercial and identity and fraud businesses in Australia, as well as growth in India. Local currency fluctuations against the U.S. dollar positively impacted revenue by $6.6 million, or 8%, and $22.6 million, or 9%, for the third quarter and first nine
months of 2026, respectively. Reported revenue increased by 20% and 18% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025.
Canada
On a local currency basis, revenue increased by 4% and 6% in the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The increase for both periods is primarily driven by growth in the direct to consumer, consumer credit reporting and commercial businesses. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $1.2 million, or 2%, for the third quarter of 2026 and positively impacted revenue by $1.9 million, or 1%, for the first nine months of 2026. Reported revenue increased by 2% and 7% for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025.
International Operating Margin
Operating margin was 15.8% for the third quarter of 2026, flat compared to the third quarter of 2025, and increased to 12.6% for the first nine months of 2026 from 11.7% for the first nine months of 2025. The increase in revenue for the third quarter was offset by an increase in people costs and purchased data costs. The increase in margin for the first nine months is primarily due to the aforementioned increase in revenue, partially offset by an increase in operating expenses, principally due to an increase in people costs, purchased data costs and amortization of capitalized internal-use software costs.
General Corporate Expense
| Three Months Ended September 30, | Change | Nine Months Ended September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||
| General Corporate Expense | 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| (In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||
| General corporate expense | $ | 159.5 | $ | 201.2 | $ | (41.7) | (21) | % | $ | 524.3 | $ | 513.6 | $ | 10.7 | 2 | % | ||||||||||||||||||||||||||||||||||
Our general corporate expenses are unallocated costs that are incurred at the corporate level and include those expenses impacted by the overall management and strategic choices of the company, including shared services overhead, technology, security, data and analytics, administrative, legal, restructuring, and the portion of management incentive compensation determined by total company-wide performance.
General corporate expense decreased by $41.7 million and increased by $10.7 million for the third quarter and first nine months of 2026, respectively, compared to the same periods in 2025. The decrease for the third quarter is primarily due to a decrease in people costs, principally driven by a severance charge in the third quarter of 2025 that did not occur in the current year period, partially offset by higher litigation expense. The increase in the first nine months is primarily due to higher litigation expense, principally due to a charge for a legal settlement from the second quarter of 2026 associated with the resolution of claims related to a previously-disclosed coding issue, net of expected insurance proceeds. The increase in the first nine months is partially offset by a decrease in people costs.
LIQUIDITY AND FINANCIAL CONDITION
Management assesses liquidity in terms of our ability to generate cash to fund operating, investing and financing activities. We continue to generate substantial cash from operating activities, remain in a strong financial position and manage our capital structure to meet short- and long-term objectives including reinvestment in existing businesses and completing strategic acquisitions.
Funds generated by operating activities, our $2.0 billion five-year unsecured revolving credit facility ("Revolver") and related commercial paper ("CP") program, more fully described below, are our most significant sources of liquidity. At September 30, 2026, we had $192.9 million in cash and cash equivalents, as well as $1.8 billion available to borrow under our Revolver.
Sources and Uses of Cash
We believe that our existing cash balance, liquidity available from our CP and Revolver, cash generated from ongoing operations and continued access to public or private debt markets will be sufficient to satisfy cash requirements over the next 12 months and beyond. While there was no significant change in our cash requirements as of September 30, 2026 compared to
December 31, 2025, we have utilized existing CP capacity, together with cash from operating activities, to meet our current obligations.
Fund Transfer Limitations. The ability of certain of our subsidiaries and associated companies to transfer funds to the U.S. may be limited, in some cases, by certain restrictions imposed by foreign governments. These restrictions do not, individually or in the aggregate, materially limit our ability to service our indebtedness, meet our current obligations or pay dividends. As of September 30, 2026, we held $179.4 million of cash in our foreign subsidiaries.
Information about our cash flows, by category, is presented in the Consolidated Statements of Cash Flows. The following table summarizes our cash flows for the nine months ended September 30, 2026 and 2025:
| Nine Months Ended September 30, | Change | |||||||||||||||||||
| Net cash provided by (used in): | 2026 | 2025 |
2026 vs. 2025
|
|||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Operating activities | $ | 1,142.1 | $ | 1,144.9 | $ | (2.8) | ||||||||||||||
| Investing activities | $ | (378.9) | $ | (350.6) | $ | (28.3) | ||||||||||||||
| Financing activities | $ | (748.2) | $ | (783.5) | $ | 35.3 | ||||||||||||||
Operating Activities
Cash provided by operating activities in the nine months ended September 30, 2026 decreased by $2.8 million compared to the prior year period primarily due to changes in our working capital position, partially offset by increased net income.
Investing Activities
Capital Expenditures
| Nine Months Ended September 30, | Change | |||||||||||||||||||
| Net cash used in: | 2026 | 2025 | 2026 vs. 2025 | |||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Capital expenditures* | $ | (378.9) | $ | (351.4) | $ | (27.5) | ||||||||||||||
*Amounts above are total cash outflows for capital expenditures.
Our capital expenditures are used for developing, enhancing and deploying new and existing software in support of our expanding product set, replacing or adding equipment, updating systems for regulatory compliance, the licensing of certain software applications, investing in system reliability, security and disaster recovery enhancements, and updating or expanding our office facilities.
Capital expenditures in the first nine months of 2026 increased by $27.5 million from the same period in 2025 primarily due to higher capitalized software costs as compared to the first nine months of 2025.
Financing Activities
Borrowings and Credit Facility Availability
| Nine Months Ended September 30, | Change | |||||||||||||||||||
| Net cash (used in) provided by: | 2026 | 2025 | 2026 vs. 2025 | |||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Net short-term payments | $ | (604.8) | $ | (204.1) | $ | (400.7) | ||||||||||||||
| Payments on long-term debt | $ | (276.4) | $ | - | $ | (276.4) | ||||||||||||||
| Proceeds from issuance of long-term debt | $ | 998.1 | $ | 1.7 | $ | 996.4 | ||||||||||||||
Credit Facility Availability
We have access to a $2.0 billion five-year unsecured revolving credit facility (the "Revolver"). Borrowings under the Revolver may be used for working capital, for capital expenditures, to refinance existing debt, to finance acquisitions and for other general corporate purposes. The maturity date with respect to $1.9 billion of the aggregate Revolver commitments is August 25, 2029; the termination date with respect to the remaining $100 million of the Revolver commitments is August 25, 2028. Availability of the Revolver is reduced by the outstanding principal balance of our CP notes and by any letters of credit issued under the Revolver.
We have a $2.0 billion CP program that has been established to allow for borrowing through the private placement of CP notes with maturities ranging from overnight to 397 days. We may use the proceeds of CP notes for general corporate purposes. The CP program is supported by our Revolver and the total amount of CP notes that may be issued is reduced by the amount of any outstanding borrowings under our Revolver and by any letters of credit issued under the facility.
As of September 30, 2026, there were $1.3 million of letters of credit outstanding, no outstanding borrowings under the Revolver and $149.0 million of outstanding CP notes. Availability under the Revolver was $1.8 billion at September 30, 2026.
At September 30, 2026, approximately 97% of our debt was fixed-rate debt and 3% was variable-rate debt. Our variable-rate debt consists of outstanding amounts under our CP program. The interest rates reset periodically, depending on the terms of the respective financing agreements. At September 30, 2026, the interest rate on our variable-rate debt ranged from 4.08% to 4.18%.
Borrowing and Repayment Activity
We primarily borrow under our CP program and Revolver as needed and as availability allows.
Net short-term payments primarily represent net borrowings or repayments of outstanding amounts under our CP program.
Borrowings on long-term debt in the first nine months of 2026 represent the issuance of $500.0 million of 5.00% senior notes and $500.0 million of 5.65% senior notes in the third quarter of 2026. Borrowings on long-term debt represented $1.7 million in borrowings for the first nine months of 2025. Payments on long-term debt for the first nine months of 2026 primarily represent repayment of our $275.0 million 3.25% senior notes during the second quarter of 2026 with CP borrowings. There were no payments on long-term debt for the first nine months of 2025.
Debt Covenants. A downgrade in our credit ratings would increase the cost of borrowings under our CP program and our Revolver, and could limit or, in the case of a significant downgrade, preclude our ability to issue CP. Our outstanding indentures and comparable instruments also contain customary covenants including, for example, limits on mortgages, liens, sale/leaseback transactions, mergers and sales of assets.
The Revolver requires a maximum leverage ratio, defined as consolidated funded debt divided by consolidated EBITDA, of 3.75 to 1.0. We may also elect to increase the maximum leverage ratio by 0.5 to 1.0 (subject to a maximum leverage ratio of 4.25 to 1.0) in connection with certain material acquisitions if we satisfy certain requirements. The Revolver also permits cash in excess of $175 million to be netted against debt in the calculation of the leverage ratio, subject to certain restrictions.
As of September 30, 2026, we were in compliance with all of our debt covenants.
We do not have any credit rating triggers that would accelerate the maturity of a material amount of the outstanding debt; however, our 5.10% senior notes due 2027, 5.10% senior notes due 2028, 4.80% senior notes due 2029, 5.00% senior notes due 2029, 3.10% senior notes due 2030, 2.35% senior notes due 2031, 5.65% senior notes due 2033, and 7.00% senior notes due 2037 (collectively, the "Senior Notes") contain change in control provisions. If the Company experiences a change of control or publicly announces an intention to effect a change of control and the rating on the Senior Notes is lowered by Standard & Poor's ("S&P") and Moody's Investors Service ("Moody's") below an investment grade rating within 60 days of such change of control or notice thereof, then the Company will be required to offer to repurchase the Senior Notes at a price equal to 101% of the aggregate principal amount of the Senior Notes plus accrued and unpaid interest.
For additional information about our debt, including the terms of our financing arrangements, basis for variable interest rates and debt covenants, see Note 5 of the Notes to Consolidated Financial Statements in our 2025 Form 10-K.
Equity Transactions
| Nine Months Ended September 30, | Change | |||||||||||||||||||
| Net cash (used in) provided by: | 2026 | 2025 | 2026 vs. 2025 | |||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Treasury stock repurchases | $ | (652.0) | $ | (427.4) | $ | (224.6) | ||||||||||||||
| Dividends paid to Equifax shareholders | $ | (199.4) | $ | (172.0) | $ | (27.4) | ||||||||||||||
| Proceeds from exercise of stock options and employee stock purchase plan | $ | 23.8 | $ | 38.1 | $ | (14.3) | ||||||||||||||
| Payment of taxes related to settlement of equity awards | $ | (15.7) | $ | (13.6) | $ | (2.1) | ||||||||||||||
Sources and uses of cash related to equity during the nine months ended September 30, 2026 and 2025 were as follows:
- On April 21, 2025, our Board of Directors approved an authorization to repurchase up to $3 billion of shares of common stock. During the first nine months of 2026, we repurchased 3,640,019 shares of our common stock on the open market. At September 30, 2026, approximately $1.4 billion was available for future purchases of common stock under our share repurchase authorization. During the first nine months of 2025, we repurchased 1,716,868 shares of our common stock on the open market.
- On February 25, 2026, our Board of Directors approved an increase in our quarterly cash dividend to $0.56 per share beginning in the first quarter of 2026. We paid cash dividends to Equifax shareholders of $199.4 million, or $1.68 per share, and $172.0 million, or $1.39 per share, during the nine months ended September 30, 2026 and 2025, respectively.
- We received cash of $23.8 million and $38.1 million during the first nine months of 2026 and 2025, respectively, from the exercise of stock options and the employee stock purchase plan.
- We paid taxes of $15.7 million and $13.6 million related to the settlement of equity awards during the first nine months of 2026 and 2025, respectively.
Contractual Obligations, Commercial Commitments and Other Contingencies
In July 2026, the Company signed a definitive agreement to acquire Círculo de Crédito for an enterprise value of $750 million consisting of a purchase price of $825 million, net of estimated $75 million cash to be acquired at closing. The transaction is subject to customary closing conditions and regulatory review and approval and is expected to close in the fourth quarter of 2026.
Other than the definitive agreement to acquire Círculo de Crédito for an enterprise value of $750 million, our contractual obligations and commercial commitments have not changed materially from those reported in our 2025 Form 10-K. For additional information about certain obligations and contingencies, see Note 6 of the Notes to Consolidated Financial Statements in this Form 10-Q.
Off-Balance Sheet Arrangements
There have been no material changes with respect to our off-balance sheet arrangements from those presented in our 2025 Form 10-K.
Benefit Plans
At December 31, 2025, our U.S. Retirement Income Plan met or exceeded ERISA's minimum funding requirements. In the future, we expect to make minimum funding contributions as required and may make discretionary contributions, depending on certain circumstances, including market conditions and our liquidity needs. We believe additional funding contributions, if any, would not prevent us from continuing to meet our liquidity needs, which are primarily funded from cash flows generated by operating activities, available cash and cash equivalents, our CP program and our Revolver.
For our non-U.S. tax-qualified retirement plans, we fund an amount sufficient to meet minimum funding requirements but no more than allowed as a tax deduction pursuant to applicable tax regulations. For our non-qualified supplementary retirement plans, we fund the benefits as they are paid to retired participants, but accrue the associated expense and liabilities in accordance with U.S. GAAP.
For additional information about our benefit plans, see Note 9 of the Notes to Consolidated Financial Statements in our 2025 Form 10-K.
Foreign Currency
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. Beginning in the third quarter of 2018, we have accounted for Argentina as a highly inflationary economy which resulted in the recognition of a foreign currency loss of $0.4 million and $0.7 million that was recorded in Other income, net in our Consolidated Statements of Income during the three months ended September 30, 2026 and 2025, respectively.
RECENT ACCOUNTING PRONOUNCEMENTS
For information about new accounting pronouncements and the potential impact on our Consolidated Financial Statements, see Note 1 of the Notes to Consolidated Financial Statements in this Form 10-Q and Note 1 of the Notes to Consolidated Financial Statements in our 2025 Form 10-K.
APPLICATION OF CRITICAL ACCOUNTING POLICIES
The Company's Consolidated Financial Statements are prepared in conformity with U.S. GAAP. This requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and liabilities in our Consolidated Financial Statements and the Notes to Consolidated Financial Statements. We believe the most complex and sensitive judgments, because of their significance to the Consolidated Financial Statements, result primarily from the need to make estimates and assumptions about the effects of matters that are inherently uncertain. The "Application of Critical Accounting Policies and Estimates" section in the MD&A, and Note 1 of the Notes to Consolidated Financial Statements, in our 2025 Form 10-K describe the significant accounting estimates and policies used in the preparation of our Consolidated Financial Statements. Although we believe that our estimates, assumptions and judgments are reasonable, they are based upon information available at the time. Actual results may differ significantly from these estimates under different assumptions, judgments or conditions.
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